Article 2
Economic dependency
1. Two or more natural or legal persons constitute a single risk because they are interconnected in a way that, where one of them were to experience financial problems, in particular funding or repayment difficulties, the other, or the others would also be likely to encounter financial problems, in any of, but not limited to the following circumstances:
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(a) |
where the insolvency or default of a natural or legal person is likely to result in the insolvency or default of another natural or legal person or persons; |
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(b) |
where a natural or legal person has fully or partly guaranteed the exposure of another natural or legal person and the exposure is so significant for the guarantor that the guarantor is likely to experience financial problems if a claim occurs; |
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(c) |
where a significant part of a natural or legal person’s gross receipts or gross expenditures is derived from transactions with another natural or legal person that cannot be replaced in a timely manner without incurring excessive additional costs; |
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(d) |
where a significant part of the goods produced or services offered by a natural or legal person is sold or supplied to another natural or legal person and that relationship cannot be replaced in a timely manner without incurring excessive additional costs; |
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(e) |
where a significant part of the receivables or liabilities of a natural or legal person is to another natural or legal person; |
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(f) |
where the expected source of funds to repay the loans of two or more natural or legal persons is the same and none of these persons has another independent source of income from which the loan may be serviced and fully repaid, and the expected source of funds cannot be replaced in a timely manner without incurring excessive additional costs; |
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(g) |
where it is expected that the financial problems of one natural or legal person would cause difficulties for another natural or legal person to fully and timely repay its liabilities, because the persons are legally or contractually jointly liable to the institution; |
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(h) |
where two or more natural or legal persons rely on the same source for the majority of their funding and, in the event of insolvency or default of that source of funding, that source of funding cannot be replaced in a timely manner without incurring excessive additional costs; |
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(i) |
where two or more legal persons are managed on a unified basis as referred to in Article 22(7), point (a) of Directive 2013/34/EU; |
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(j) |
where the management body of two or more legal persons consists for a major part of the same persons as referred to in Article 22(7), point (b) of Directive 2013/34/EU; |
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(k) |
where the majority of voting rights in two or more legal persons is held by the same natural or legal persons. |
2. By way of derogation from paragraph 1, where, in exceptional cases, an institution is able to demonstrate that no single risk prevails despite one or more of the circumstances referred to in that paragraph being met with regard to two or more natural or legal persons, the institution may not identify those persons as a group of connected clients.