Article 78
Protection for security arrangements
1.
Member States shall ensure that there is appropriate protection for liabilities secured under a security arrangement so as to prevent one of the following:
(a)
the transfer of assets against which the liability is secured unless that liability and benefit of the security are also transferred;
(b)
the transfer of a secured liability unless the benefit of the security are also transferred;
(c)
the transfer of the benefit of the security unless the secured liability is also transferred; or
(d)
the modification or termination of a security arrangement through the use of ancillary powers, if the effect of that modification or termination is that the liability ceases to be secured.
2.
Notwithstanding paragraph 1, where necessary in order to ensure availability of the covered deposits the resolution authority may:
(a)
transfer covered deposits which are part of any of the arrangements mentioned in paragraph 1 without transferring other assets, rights or liabilities that are part of the same arrangement; and
(b)
transfer, modify or terminate those assets, rights or liabilities without transferring the covered deposits