Article 490
Tier 2 items with an incentive to redeem
1. By way of derogation from Articles 62 and 63, during the period from 1 January 2014 to 31 December 2021, items referred to in Article 484(5) that qualified under the national transposition measures for point (f) or (h) of Article 57 of Directive 2006/48/EC and 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 items shall qualify as Tier 2 instruments provided:
|
(a) |
the institution was able to exercise a call with an incentive to redeem only prior to 1 January 2013; |
|
(b) |
the institution did not exercise the call; |
|
(c) |
from 1 January 2013 the conditions laid down in Article 63 are met. |
3. The items shall qualify as Tier 2 items in accordance with Article 484(5) until the date of their effective maturity, and shall qualify thereafter as Tier 2 items without limit, provided the following conditions are met:
|
(a) |
the institution was able to exercise a call with an incentive to redeem only on or after 1 January 2013; |
|
(b) |
the institution did not exercise the call on the date of the effective maturity of the items; |
|
(c) |
the conditions laid down in Article 63 are met from the date of the effective maturity of the items. |
4. The items shall not qualify as Tier 2 items from 1 January 2013 where the following conditions are met:
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(a) |
the institution was able to exercise a call with an incentive to redeem only 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 items; |
|
(c) |
the conditions laid down in Article 63 are not met from the date of the effective maturity of the items. |
5. The items shall qualify as Tier 2 items with their recognition reduced in accordance with Article 484(5) until the date of their effective maturity, and shall not qualify as Tier 2 items thereafter, where:
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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 their effective maturity; |
|
(c) |
the conditions set out in Article 63 are not met from the date of effective maturity of the items. |
6. The items shall qualify as Tier 2 items in accordance with Article 484(5) where:
|
(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 items; |
|
(c) |
the conditions laid down in Article 63 are not met from the date of the effective maturity of the items. |