{
  "url": "https://openlegislation.uk/eu-decision-2007-7/annex-I/article-1",
  "json_url": "https://openlegislation.uk/eu-decision-2007-7/annex-I/article-1.json",
  "legislation": "eudn/2007/7",
  "legislation_title": "Decision of the European Central Bank of 24 July 2007 concerning the terms and conditions of TARGET2-ECB (ECB/2007/7) (2007/601/EC)",
  "legislation_url": "https://openlegislation.uk/eu-decision-2007-7",
  "path": "annex/I/article/1",
  "kind": "article",
  "number": "1",
  "heading": "Definitions",
  "text": "For the purposes of these Terms and Conditions (hereinafter the ‘Conditions’), the following definitions apply:\n‘ addressable BIC holder ’ means an entity which: (a) holds a Business Identifier Code (BIC); (b) is not recognised as an indirect participant in the PM; and (c) is a correspondent or customer of a PM account holder or a branch of a direct or indirect participant in the PM, and is able to submit payment orders to and receive payments from a TARGET2 component system via the PM account holder,\n‘ ancillary system ’ means a system managed by an entity that is subject to supervision and/or oversight by a competent authority and complies with the oversight requirements for the location of infrastructures offering services in euro, as amended from time to time and published on the ECB's website , in which payments and/or financial instruments are exchanged and/or cleared or recorded with (a) the monetary obligations settled in TARGET2 and/or (b) funds held in TARGET2, in accordance with Guideline ECB/2012/27 and a bilateral arrangement between the ancillary system and the relevant Eurosystem CB,\n‘ancillary system central bank (ASCB)’ means the Eurosystem CB with which the relevant AS has a bilateral arrangement for the settlement of AS payment instructions in the PM,\n‘Ancillary System Interface (ASI)’ means the technical device allowing an AS to use a range of special, predefined services for the submission and settlement of AS payment instructions,\n‘ available liquidity ’ means a credit balance on a participant's PM account and, if applicable, any intraday credit line granted by the relevant euro area NCB in relation to such account but not yet drawn upon, or, if applicable, decreased by the amount of any processed reservations of liquidity on the PM account,\n. . . . .\n‘ Business Identifier Code (BIC) ’ means a code as defined by ISO Standard No 9362,\n‘branch’ means a branch within the meaning of point (17) of Article 4(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council ,\n‘business day’ or ‘TARGET2 business day’ means any day on which TARGET2 is open for the settlement of payment orders, as set out in Appendix V,\n‘capacity opinion’ means a participant-specific opinion that contains an assessment of a participant's legal capacity to enter into and carry out its obligations under these Conditions,\n‘central banks (CBs)’ means the Eurosystem CBs and the connected CBs,\n‘connected CB’ means a national central bank (NCB), other than a Eurosystem CB, which is connected to TARGET2 pursuant to a specific agreement,\n. . . . .\n‘ Contingency Solution ’ means the SSP functionality that processes very critical and critical payments in contingency,\n‘ credit institution ’ means either: (a) a credit institution within the meaning of point (1) of Article 4(1) of Regulation (EU) No 575/2013 and Section 2(1) no 2 and Section 2(6) no 2 of the (Kreditwesengesetz) KWG, that is subject to supervision by a competent authority; or (b) another credit institution within the meaning of Article 123(2) of the Treaty that is subject to scrutiny of a standard comparable to supervision by a competent authority,\n‘credit instruction’ means a payment instruction submitted by an AS and addressed to the ASCB to debit one of the accounts kept and/or managed by the AS in the PM, and to credit a settlement bank's PM account or sub-account by the amount specified therein,\n‘credit transfer order’ means an instruction by a payer to make funds available to a payee by means of a book entry on a PM account,\n‘debit instruction’ means a payment instruction addressed to the SCB and submitted by an AS to debit a settlement bank's PM account or sub-account by the amount specified therein, on the basis of a debit mandate, and to credit either one of the AS's accounts in the PM or another settlement bank's PM account or sub-account,\n‘ direct debit authorisation ’ means a general instruction by a payer to its CB entitling and obliging that CB to debit the payer's account upon receipt of a valid direct debit instruction from a payee,\n‘direct debit instruction’ means an instruction from a payee submitted to its CB pursuant to which the CB of the payer debits the payer's account by the amount specified in the instruction, on the basis of a direct debit authorization,\n‘debit mandate’ means an authorisation by a settlement bank in the form provided by the Eurosystem CBs in the static data forms addressed to both its AS and its SCB, entitling the AS to submit debit instructions, and instructing the SCB to debit the settlement bank's PM account or sub-account as a result of debit instructions,\n‘ deposit facility ’ means a Eurosystem standing facility which counterparties may use to make overnight deposits with an NCB at a pre-specified deposit rate,\n‘ deposit facility rate ’ means the interest rate applicable to the deposit facility,\n‘ T2S Dedicated Cash Account (T2S DCA) ’ means an account held by a T2S DCA holder, opened in TARGET2-ECB, and used for cash payments in relation to securities settlement in T2S,\n‘entry disposition’ means a payment processing phase during which TARGET2-ECB attempts to settle a payment order which has been accepted pursuant to Article 12, by means of specific procedures, as described in Article 18,\n‘ euro area NCB ’ means the national central bank (NCB) of a Member State whose currency is the euro,\n‘ Eurosystem CB ’ means the ECB or a euro area NCB,\n‘ event of default ’ means any impending or existing event, the occurrence of which may threaten the performance by a participant of its obligations under these Conditions or any other rules applying to the relationship between that participant and the ECB or any other CB, including:\n(a) where the participant no longer meets the access criteria laid down in Article 4 or the requirements laid down in Article 6(1)(a);\n(b) the opening of insolvency proceedings in relation to the participant;\n(c) the submission of an application relating to the proceedings referred to in point (b);\n(d) the issue by the participant of a written declaration of its inability to pay all or any part of its debts or to meet its obligations arising in relation to intraday credit;\n(e) the entry of the participant into a voluntary general agreement or arrangement with its creditors;\n(f) where the participant is, or is deemed by its CB to be, insolvent or unable to pay its debts;\n(g) where the participant's credit balance on its PM account, T2S DCA or TIPS DCA, or all or a substantial part of the participant's assets are subject to a freezing order, attachment, seizure or any other procedure that is intended to protect the public interest or the rights of the participant's creditors;\n(h) where participation of the participant in another TARGET2 component system and/or in an ancillary system has been suspended or terminated;\n(i) where any material representation or pre-contractual statement made by the participant or which is implied to have been made by the participant under the applicable law is incorrect or untrue;\n(j) the assignment of all or a substantial part of the participant's assets,\n‘ Information and Control Module (ICM) ’ means the SSP module that allows PM account holders to obtain online information and gives them the possibility to submit liquidity transfer orders, manage liquidity and, if applicable, initiate backup payment orders or payment orders to the Contingency Solution in a contingency,\n‘ICM broadcast message’ means information made simultaneously available to all or a selected group of PM account holders via the ICM,\n‘indirect participant’ means a credit institution established in the European Union or the European Economic Area (EEA), which has entered into an agreement with a PM account holder to submit payment orders and receive payments via such PM account holder's PM account, and which has been recognised by a TARGET2 component system as an indirect participant,\n‘insolvency proceedings’ means insolvency proceedings within the meaning of Article 2(j) of the Settlement Finality Directive,\n‘ instant payment order ’ means, in line with the European Payments Council's SEPA Instant Credit Transfer (SCT Inst) scheme, a payment instruction which can be executed 24 hours a day any calendar day of the year, with immediate or close to immediate processing and notification to the payer,\n‘instructing participant’ means a TARGET2 participant that has initiated a payment order,\n‘intraday credit’ means credit extended for a period of less than one business day,\n‘ Linked PM account ’ means the PM account with which a TIPS DCA is associated for the purpose of liquidity management and payment of TIPS fees,\n‘liquidity transfer order’ means a payment order, the main purpose of which is to transfer liquidity between different accounts of the same participant,\n‘marginal lending facility’ means a Eurosystem standing facility which counterparties may use to receive overnight credit from a Eurosystem CB at the pre-specified marginal lending rate,\n‘marginal lending rate’ means the interest rate applicable to the marginal lending facility,\n‘multi-addressee access’ means the facility by which branches or credit institutions established in the Union or the EEA can access the relevant TARGET2 component system by submitting payment orders and/or receiving payments directly to and from the TARGET2 component system; this facility authorises these entities to submit their payment orders through the direct participant's PM account without that participant's involvement,\n‘Main PM account’ means the PM account to which a T2S DCA is linked and on which any remaining balance must be automatically repatriated from the T2S DCA at the end of the day,\n‘TARGET2 network service provider’ means the undertaking appointed by the ECB's Governing Council to provide computerised network connections for the purpose of submitting payment messages in TARGET2,\n‘non-settled payment order’ means a payment order that is not settled on the same-business day as that on which it is accepted,\n‘ participant ’ [or ‘ direct participant ’ ] means an entity that holds at least one PM account (PM account holder) and/or one T2S Dedicated Cash Account (T2S DCA holder) and/or one TIPS Dedicated Cash Account (TIPS DCA holder) with a Eurosystem CB,\n‘Participant Interface (PI)’ means the technical device allowing direct participants to submit and settle payment orders via the services offered in the PM,\n‘ payee ’ , except where used in Article 33, means a TARGET2 participant whose PM account will be credited as a result of a payment order being settled,\n‘ payer ’ , except where used in Article 33, means a TARGET2 participant whose PM account will be debited as a result of a payment order being settled,\n‘payment instruction’ or ‘AS payment instruction’ means a credit instruction or a debit instruction,\n‘ payment order ’ means a credit transfer order, a liquidity transfer order, a direct debit instruction, a PM to T2S DCA liquidity transfer order or a PM to TIPS DCA liquidity transfer order,\n‘Payments Module (PM)’ means an SSP module in which payments of TARGET2 participants are settled on PM accounts,\n‘PM account’ means an account held by a TARGET2 participant in the PM with a CB which is necessary for such TARGET2 participant to:\n(a) submit payment orders or receive payments via TARGET2; and\n(b) settle such payments with such CB,\n‘ positive recall answer ’ means, in line with the SCT Inst scheme, a payment order initiated by the receiver of a recall request, in response to a recall request, for the benefit of the sender of that recall request,\n‘public sector body’ means an entity within the ‘public sector’, the latter term as defined in Article 3 of Council Regulation (EC) No 3603/93 of 13 December 1993 specifying definitions for the application of the prohibitions referred to in Articles 104 and 104b(1) of the Treaty ,\n‘ PM to TIPS DCA liquidity transfer order ’ means the instruction to transfer a specified amount of funds from a PM account to a TIPS DCA,\n‘ PM to T2S DCA liquidity transfer order ’ means the instruction to transfer a specified amount of funds from a PM account to a T2S DCA,\n‘ recall request ’ means, in line with the SCT Inst scheme, a message from a TIPS DCA holder requesting reimbursement of a settled instant payment order,\n‘settlement bank’ means a participant whose PM account or sub-account is used to settle AS payment instructions,\n‘settlement central bank (SCB)’ means a Eurosystem CB holding a settlement bank's PM account,\n‘Settlement Finality Directive’ means Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems;\n‘Single Shared Platform (SSP)’ means the single technical platform infrastructure provided by the SSP-providing NCBs,\n‘SSP-providing NCBs’ means the Deutsche Bundesbank, the Banque de France and the Banca d'Italia in their capacity as the CBs building and operating the SSP for the Eurosystem's benefit,\n‘static data collection form’ means a form developed by the ECB for the purpose of registering applicants for TARGET2-ECB services and registering any changes in relation to the provision of such services,\n‘suspension’ means the temporary freezing of the rights and obligations of a participant for a period of time to be determined by the ECB,\n‘ TARGET Instant Payment Settlement (TIPS) service ’ means the settlement in central bank money of instant payment orders on the TIPS Platform,\n‘TARGET2-ECB’ means the TARGET2 component system of the ECB,\n‘TARGET2’ means the entirety resulting from all TARGET2 component systems of the CBs,\n‘TARGET2 component system’ means any of the CBs' real-time gross settlement (RTGS) systems that form part of TARGET2,\n‘TARGET2 CUG’ means a subset of the TARGET2 network service provider's customers grouped for the purpose of their use of the relevant services and products of the TARGET2 network service provider when accessing the PM,\n‘TARGET2 participant’ means any participant in any TARGET2 component system,\n‘ TARGET2-Securities (T2S) ’ or ‘ T2S Platform ’ means the set of hardware, software and other technical infrastructure components through which the Eurosystem provides the services to CSDs and Eurosystem CBs that allow core, neutral and borderless settlement of securities transactions on a delivery-versus-payment basis in central bank money,\n‘technical malfunction of TARGET2’ means any difficulty, defect or failure in the technical infrastructure and/or the computer systems used by TARGET2-ECB, or any other event that makes it impossible to execute and complete the same business-day processing of payments in TARGET2-ECB ,\n‘ TIPS Dedicated Cash Account (TIPS DCA) ’ means an account held by a TIPS DCA holder, opened in TARGET2-ECB, and used for the provision of instant payment services to its customers,\n‘ TIPS DCA to PM liquidity transfer order ’ means the instruction to transfer a specified amount of funds from a TIPS DCA to a PM account,\n‘ TIPS network service provider ’ means an undertaking which has: (a) met all of the necessary conditions to connect to, and established a technical connection to, the TIPS Platform in accordance with the rules and procedures set out in Appendix V to Annex III to Decision ECB/2007/7; and (b) signed the TIPS connectivity hosting terms and conditions which are available on the ECB's website,\n‘ TIPS Platform ’ means the single technical platform infrastructure provided by the TIPS Platform-providing NCBs,\n‘ TIPS Platform-providing NCBs ’ means the Deutsche Bundesbank, the Banco de España, the Banque de France and the Banca d'Italia in their capacity as the CBs building and operating the TIPS Platform for the Eurosystem's benefit,\n‘ User Detailed Functional Specifications (UDFS) ’ means the most up-to-date version of the UDFS, which is the technical documentation that details how a participant interacts with TARGET2.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Substituted by Decision of the European Central Bank of 2 November 2010 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2010/19) (2010/673/EU)."
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Substituted by Decision (EU) 2018/1625 of the European Central Bank of 8 October 2018 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2018/24)."
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Substituted by Decision of the European Central Bank of 6 October 2009 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2009/22) (2009/768/EC)."
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Substituted by Decision (EU) 2015/929 of the European Central Bank of 26 May 2015 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2015/22)."
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Deleted by Decision of the European Central Bank of 6 October 2009 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2009/22) (2009/768/EC)."
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Deleted by Decision (EU) 2019/1848 of the European Central Bank of 29 October 2019 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2019/32)."
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Inserted by Decision (EU) 2019/1848 of the European Central Bank of 29 October 2019 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2019/32)."
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Substituted by Decision (EU) 2016/821 of the European Central Bank of 26 April 2016 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2016/9)."
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Inserted by Decision of the European Central Bank of 16 June 2014 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2014/27) (2014/418/EU)."
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Inserted by Decision (EU) 2015/929 of the European Central Bank of 26 May 2015 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2015/22)."
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Inserted by Decision of the European Central Bank of 11 December 2012 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2012/31) (2013/31/EU)."
    },
    {
      "type": "F",
      "label": "F12",
      "text": "Substituted by Decision of the European Central Bank of 11 December 2012 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2012/31) (2013/31/EU)."
    },
    {
      "type": "F",
      "label": "F13",
      "text": "Substituted by Decision (EU) 2019/1848 of the European Central Bank of 29 October 2019 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2019/32)."
    },
    {
      "type": "F",
      "label": "F14",
      "text": "Inserted by Decision (EU) 2018/1625 of the European Central Bank of 8 October 2018 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2018/24)."
    },
    {
      "type": "F",
      "label": "F15",
      "text": "Substituted by Decision of the European Central Bank of 15 November 2011 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2011/19) (2011/749/EU)."
    },
    {
      "type": "F",
      "label": "F16",
      "text": "Inserted by Decision of the European Central Bank of 2 November 2010 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2010/19) (2010/673/EU)."
    },
    {
      "type": "footnote",
      "label": "f1",
      "text": "The Eurosystem's current policy for the location of infrastructure is set out in the following statements, which are available on the ECB's website at www.ecb.europa.eu: (a) the policy statement on euro payment and settlement systems located outside the euro area of 3 November 1998 ; (b) the Eurosystem's policy line with regard to consolidation in central counterparty clearing of 27 September 2001 ; (c) the Eurosystem policy principles on the location and operation of infrastructures settling euro-denominated payment transactions of 19 July 2007 ; (d) the Eurosystem policy principles on the location and operation of infrastructures settling euro-denominated payment transactions: specification of ‘ legally and operationally located in the euro area ’ of 20 November 2008 ; (e) the Eurosystem oversight policy framework, revised version of July 2016."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "Guideline ECB/2012/27 of the European Central Bank of 5 December 2012 on a Trans-European Automated Real-time Gross settlement Express Transfer system (TARGET2) ( OJ L 30, 30.1.2013, p. 1 )."
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 ( OJ L 176, 27.6.2013, p. 1 )."
    },
    {
      "type": "footnote",
      "label": "f4",
      "text": "OJ L 332, 31.12.1993, p. 1 ."
    },
    {
      "type": "footnote",
      "label": "f5",
      "text": "OJ L 166, 11.6.1998, p. 45."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eudn/2007/7/annex/I/article/1",
    "retrieved_at": "2026-11-01T15:17:18.350563+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}