Article 489
Hybrid instruments with a call and incentive to redeem
1. By way of derogation from Articles 51 and 52, during the period from 1 January 2014 to 31 December 2021, instruments referred to in Article 484(4) that include in their terms and conditions a call with an incentive for them to be redeemed by the institution shall be subject to the requirements laid down in paragraphs 2 to 7 of this Article.
2. The instruments shall qualify as Additional Tier 1 instruments provided the following conditions are met:
|
(a) |
the institution was able to exercise a call with an incentive to redeem only prior to 1 January 2013; |
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(b) |
the institution did not exercise the call; |
|
(c) |
the conditions laid down in Article 52 are met from 1 January 2013. |
3. The instruments shall qualify as Additional Tier 1 instruments with their recognition reduced in accordance with Article 484(4) until the date of their effective maturity and thereafter shall qualify as Additional Tier 1 items without limit provided:
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(a) |
the institution was able to exercise a call with an incentive to redeem only on or after 1 January 2013; |
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(b) |
the institution did not exercise the call on the date of the effective maturity of the instruments; |
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(c) |
the conditions laid down in Article 52 are met from the date of the effective maturity of the instruments. |
4. The instruments shall not qualify as Additional Tier 1 instruments, and shall not be subject to Article 484(4), from 1 January 2014 where the following conditions are met:
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(a) |
the institution was able to exercise a call with an incentive to redeem between 31 December 2011 and 1 January 2013; |
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(b) |
the institution did not exercise the call on the date of the effective maturity of the instruments; |
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(c) |
the conditions laid down in Article 52 are not met from the date of the effective maturity of the instruments. |
5. The instruments shall qualify as Additional Tier 1 instruments with their recognition reduced in accordance with Article 484(4) until the date of their effective maturity, and shall not qualify as Additional Tier 1 instruments thereafter, where the following conditions are met:
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(a) |
the institution was able to exercise a call with an incentive to redeem on or after 1 January 2013; |
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(b) |
the institution did not exercise the call on the date of the effective maturity of the instruments; |
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(c) |
the conditions laid down in Article 52 are not met from the date of the effective maturity of the instruments. |
6. The instruments shall qualify as Additional Tier 1 instruments in accordance with Article 484(4) where the following conditions are met:
|
(a) |
the institution was able to exercise a call with an incentive to redeem only prior to or on 31 December 2011; |
|
(b) |
the institution did not exercise the call on the date of the effective maturity of the instruments; |
|
(c) |
the conditions laid down in Article 52 were not met from the date of the effective maturity of the instruments. |