# Commission Delegated Regulation (EU) 2017/390 of 11 November 2016 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council with regard to regulatory technical standards on certain prudential requirements for central securities depositories and designated credit institutions offering banking-type ancillary services (Text with EEA relevance), Article 2: Conditions regarding capital instruments

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

1. For the purposes of Article 1, a CSD shall hold capital instruments that meet all of the following conditions:
(a) they are subscribed capital within the meaning of Article 22 of Council Directive 86/635/EEC;
(b) they have been paid up, including the related share premium accounts;
(c) they fully absorb losses in going concern situations;
(d) in the event of bankruptcy or liquidation, they rank after all other claims in insolvency actions or under the applicable insolvency law.
2. In addition to the capital instruments that meet the conditions in paragraph 1, a CSD authorised in accordance with point (a) of Article 54(2) of Regulation (EU) No 909/2014 to provide banking-type ancillary services may, in order to meet the requirements in Article 1, use capital instruments that:
(a) meet the conditions in paragraph 1;
(b) are ‘own funds instruments’ as defined in point 119 of Article 4(1) of Regulation (EU) No 575/2013;
(c) are subject to the provisions of Regulation (EU) No 575/2013.

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Source: https://www.legislation.gov.uk/eur/2017/390/article/2 (the official version)
Page: https://openlegislation.uk/eu-regulation-2017-390/article-2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.