Article 4 Common provisions

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A decision by the resolution authority to exclude a liability or class of liabilities from the application of the bail-in tool F2under section 48B(10) of the Act shall be based on a case-by-case analysis of the institution under resolution and shall not be automatic.

When considering exclusions pursuant to F3section 48B(10) of the Act and before completely excluding a liability or class of liabilities from bail-in, the resolution authority shall first consider the option to partially exclude that liability by limiting the extent of their write-down wherever possible.

In its determination as to whether a liability should be excluded pursuant to F4section 48B(10) of the Act, the resolution authority shall assess whether the conditions therein are met at the time of the application of the bail-in tool to the institution. F5...

The decision to exclude a liability or class of liabilities from the application of bail-in pursuant to F6section 48B(10) of the Act shall be based on at least one of the resolution objectives F7set out in section 4 of the Act.

The decision to exclude or partially exclude a liability or class of liabilities from the application of the bail-in tool F8under section 48B(10) of the Act which would imply the use of the F9Consolidated Fund or the National Loans Fund, shall be duly justified, taking into account the need for expedience as warranted by the circumstances of the specific case.

Where the resolution authority has assumed that a liability or class of liabilities would credibly and feasibly contribute to loss absorption and recapitalisation, and that those liabilities would not meet the requirements for exclusion under F10section 48B(10) of the Act, that resolution authority shall explain each of the following if it then decides to exclude or partially exclude a liability or class of liabilities pursuant to section 48B(10) of the Act which would involve passing losses onto the F11Consolidated Fund or the National Loans Fund:

When deciding whether to exclude or partially exclude a liability or class of liabilities pursuant to F12section 48B(10) of the Act on the ground set out in section 48B(12)(a) of the Act, if the exclusion would involve passing losses onto the F13Consolidated Fund or the National Loans Fund, the resolution authority shall also explain:

When deciding whether to exclude or partially exclude a liability or class of liabilities in order to preserve the continuity of critical functions and core business lines pursuant to F15section 48B(10) of the Act on the ground set out in section 48B(12)(b) of the Act, if the exclusion would involve passing losses onto the F16Consolidated Fund or the National Loans Fund the resolution authority shall also explain:

Where the resolution authority excludes or partially excludes a liability or class of liabilities in order to avoid widespread contagion pursuant to F17section 48B(10) of the Act on the ground set out in section 48B(12)(c) of the Act, if the exclusion would involve passing losses onto the F18Consolidated Fund or the National Loans Fund the resolution authority shall also explain:

Where the resolution authority excludes or partially excludes a liability or class of liabilities pursuant to F20section 48B(10) of the Act on the ground set out in section 48B(12)(d) of the Act, if the exclusion would involve passing losses onto the F21Consolidated Fund or the National Loans Fund the resolution authority shall also explain how/whether the requirements laid down in Article 9 of this Regulation are satisfied.