Article 22
General principles of resolution tools
1.
Where the Board decides to apply a resolution tool to an entity or group referred to in Article 7(2) or to an entity or group referred to in Article 7(4)(b) and (5) where the conditions for the application of those paragraphs are met, and that resolution action would result in losses being borne by creditors or their claims being converted, the Board shall instruct the national resolution authorities to exercise the power to write down and convert relevant capital instruments in accordance with Article 21 immediately before or together with the application of the resolution tool.
2.
The resolution tools referred to in point (b) of Article 18(6) are the following:
(a)
(b)
(c)
(d)
the bail-in tool.
3.
When adopting the resolution scheme referred to in Article 18(6), the Board shall take into consideration the following factors:
(a)
the assets and liabilities of the institution under resolution on the basis of the valuation pursuant to Article 20;
(b)
the liquidity position of the institution under resolution;
(c)
the marketability of the franchise value of the institution under resolution in the light of the competitive and economic conditions of the market;
(d)
the time available.
4.
The resolution tools shall be applied to meet the resolution objectives specified in Article 14, in accordance with the resolution principles specified in Article 15. They may be applied either individually or in any combination, except for the asset separation tool which may be applied only together with another resolution tool.
5.
Where the resolution tools referred to in point (a) or (b) of paragraph 2 of this Article are used to transfer only part of the assets, rights or liabilities of the institution under resolution, the residual entity referred to in Article 2 from which the assets, rights or liabilities have been transferred, shall be wound up under normal insolvency proceedings.
6.
The Board may recover any reasonable expenses properly incurred in connection with the use of the resolution tools or powers in one or more of the following ways:
(a)
as a deduction from any consideration paid by a recipient to the institution under resolution or, as the case may be, to the owners of instruments of ownership;
(b)
from the institution under resolution, as a preferred creditor; or
(c)
from any proceeds generated as a result of the termination of the operation of the bridge institution or the asset management vehicle, as a preferred creditor.
Any proceeds received by national resolution authorities in connection with the use of the Fund shall be reimbursed to the Board.