# Decision of the European Central Bank of 24 July 2007 concerning the terms and conditions of TARGET2-ECB (ECB/2007/7) (2007/601/EC), Article 26: The ECB's rights of pledge and set-off

Extent: E+W+S+N.I.

1. The ECB shall have a pledge over the T2S DCA holder's existing and future credit balances on its T2S DCAs , thereby collateralising any current and future claims arising out of the legal relationship between the parties.
2. On the occurrence of:
(a) an event of default referred to in Article 24(1); or
(b) any other event of default or event referred to in Article 24(2) that has led to the termination or suspension of the T2S DCA holder's participation, notwithstanding the commencement of any insolvency proceedings in respect of a T2S DCA holder and notwithstanding any assignment, judicial or other attachment or other disposition of or in respect of the T2S DCA holder's rights;
all obligations of the T2S DCA holder shall be automatically and immediately accelerated, without prior notice and without the need for any prior approval of any authority, so as to be immediately due. In addition, the mutual obligations of the T2S DCA holder and the ECB shall automatically be set off against each other, and the party owing the higher amount shall pay to the other the difference.
3 . The ECB shall promptly give the T2S DCA holder notice of any set-off pursuant to paragraph 2 after such set-off has taken place.
4. The ECB may without prior notice debit any T2S DCA holder's T2S DCA by any amount which the T2S DCA holder owes the ECB resulting from the legal relationship between the T2S DCA holder and the ECB.

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Source: https://www.legislation.gov.uk/eudn/2007/7/annex/II/article/26 (the official version)
Page: https://openlegislation.uk/eu-decision-2007-7/annex-II/article-26
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.