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Directive 2014/59/EU - Bank Recovery and Resolution Directive (BRRD)RecitalsTitle I Scope, definitions and authorities (arts. 1-3)Article 1 Subject matter and scopeArticle 2 DefinitionsArticle 3 Designation of authorities responsible for resolutionTitle II Preparation (arts. 4-26)Chapter I Recovery and resolution planning (arts. 4-14)Section 1 General provisions (art. 4)Article 4 Simplified obligations for certain institutionsSection 2 Recovery planning (arts. 5-9)Article 5 Recovery plansArticle 6 Assessment of recovery plansArticle 7 Group recovery plansArticle 8 Assessment of group recovery plansArticle 9 Recovery Plan IndicatorsSection 3 Resolution planning (arts. 10-14)Article 10 Resolution plansArticle 11 Information for the purpose of resolution plans and cooperation from the institutionArticle 12 Group resolution plansArticle 13 Requirement and procedure for group resolution plansArticle 14 Transmission of resolution plans to the competent authoritiesChapter II Resolvability (arts. 15-18)Article 15 Assessment of resolvability for institutionsArticle 16 Assessment of resolvability for groupsArticle 16a Power to prohibit certain distributionsArticle 17 Powers to address or remove impediments to resolvabilityArticle 18 Powers to address or remove impediments to resolvability: group treatmentChapter III Intra group financial support (arts. 19-26)Article 19 Group financial support agreementArticle 20 Review of proposed agreement by competent authorities and mediationArticle 21 Approval of proposed agreement by shareholdersArticle 22 Transmission of the group financial support agreements to resolution authoritiesArticle 23 Conditions for group financial supportArticle 24 Decision to provide financial supportArticle 25 Right of opposition of competent authoritiesArticle 26 DisclosureTitle III Early intervention (arts. 27-30 and draft art. 30a)Article 27 Early intervention measuresArticle 28 Removal of senior management and management bodyArticle 29 Temporary administratorArticle 30 Coordination of early intervention measures in relation to groupsArticle 30a Preparation for resolutionTitle IV Resolution (arts. 31-86)Chapter I Objectives, conditions and general principles (arts. 31-34)Article 31 Resolution objectivesArticle 32 Conditions for resolutionArticle 32a Conditions for resolution with regard to a central body and credit institutions or financial institutions permanently affiliated to a central bodyArticle 32b Proceedings in respect of institutions and entities that are not subject to resolution actionArticle 32c Extraordinary public financial supportArticle 33 Conditions for resolution with regard to financial institutions and holding companiesArticle 33a Power to suspend certain obligationsArticle 34 General principles governing resolutionChapter II Special management (art. 35)Article 35 Special managementChapter III Valuation (art. 36)Article 36 Valuation for the purposes of resolutionChapter IV Resolution tools (arts. 37-58)Section 1 General principles (art. 37)Article 37 General principles of resolution toolsSection 2 The sale of business tool (art. 38-39)Article 38 The sale of business toolArticle 39 Sale of business tool: procedural requirementsSection 3 The bridge institution tool (arts. 40-41)Article 40 Bridge institution toolArticle 41 Operation of a bridge institutionSection 4 The asset separation tool (art. 42)Article 42 Asset separation toolSection 5 The bail-in tool (arts. 43-58)Subsection 1 Objective and scope of the bail-in tool (arts. 43-44)Article 43 The bail-in toolArticle 44 Scope of bail-in toolArticle 44a Selling of subordinated eligible liabilities to retail clientsSubsection 2 Minimum requirement for own funds and eligible liabilities (arts. 45-45m)Article 45 Application and calculation of the minimum requirement for own funds and eligible liabilitiesArticle 45a Exemption from the minimum requirement for own funds and eligible liabilitiesArticle 45b Eligible liabilities for resolution entitiesArticle 45c Determination of the minimum requirement for own funds and eligible liabilitiesArticle 45d Determination of the minimum requirement for own funds and eligible liabilities for resolution entities of G-SIIs and Union material subsidiaries of non-EU G-SIIsArticle 45e Application of the minimum requirement for own funds and eligible liabilities to resolution entitiesArticle 45f Application of the minimum requirement for own funds and eligible liabilities to entities that are not themselves resolution entitiesArticle 45g Waiver for a central body, or for credit institutions or financial institutions permanently affiliated to a central bodyArticle 45h Procedure for determining the minimum requirement for own funds and eligible liabilitiesArticle 45i Supervisory reporting and public disclosure of the requirementArticle 45j Reporting to EBAArticle 45k Breaches of the minimum requirement for own funds and eligible liabilitiesArticle 45l ReportsArticle 45m Transitional and post-resolution arrangementsSubsection 3 Implementation of the bail-in tool (arts. 46-52)Article 46 Assessment of amount of bail-inArticle 47 Treatment of shareholders in bail-in or write down or conversion of capital instrumentsArticle 48 Sequence of write down and conversionArticle 49 DerivativesArticle 50 Rate of conversion of debt to equityArticle 51 Recovery and reorganisation measures to accompany bail-inArticle 52 Business reorganisation planSubsection 4 Bail-in tool: ancillary provisions (arts. 53-58)Article 53 Effect of bail-inArticle 54 Removal of procedural impediments to bail-inArticle 55 Contractual recognition of bail-inArticle 56 Government financial stabilisation toolsArticle 57 Public equity support toolArticle 58 Temporary public ownership toolChapter V Write down or conversion of capital instruments and eligible liabilities (arts. 59-62)Article 59 Requirement to write down or convert relevant capital instruments and eligible liabilitiesArticle 60 Provisions concerning the write down or conversion of relevant capital instruments and eligible liabilitiesArticle 61 Authorities responsible for determinationArticle 62 Consolidated application: procedure for determinationChapter VI Resolution powers (arts. 63-72)Article 63 General powersArticle 64 Ancillary powersArticle 65 Power to require the provision of services and facilitiesArticle 66 Power to enforce crisis management measures or crisis prevention measures by other Member StatesArticle 67 Power in respect of assets, rights, liabilities, shares and other instruments of ownership located in third countriesArticle 68 Exclusion of certain contractual terms in early intervention and resolutionArticle 69 Power to suspend certain obligationsArticle 70 Power to restrict the enforcement of security interestsArticle 71 Power to temporarily suspend termination rightsArticle 71a Contractual recognition of resolution stay powersArticle 72 Exercise of the resolution powersChapter VII Safeguards (arts. 73-80)Article 73 Treatment of shareholders and creditors in the case of partial transfers and application of the bail-in toolArticle 74 Valuation of difference in treatmentArticle 75 Safeguard for shareholders and creditorsArticle 76 Safeguard for counterparties in partial transfersArticle 77 Protection for financial collateral, set off and netting agreementsArticle 78 Protection for security arrangementsArticle 79 Protection for structured finance arrangements and covered bondsArticle 80 Partial transfers: protection of trading, clearing and settlement systemsChapter VIII Procedural obligations (arts. 81-84b)Article 81 Notification requirementsArticle 82 Decision of the resolution authorityArticle 83 Procedural obligations of resolution authoritiesArticle 84 ConfidentialityArticle 84a Information held by centralised automated mechanismsArticle 84b Confidentiality of inside informationChapter IX Right of appeal and exclusion of other actions (arts. 85-86)Article 85 Ex-ante judicial approval and rights to challenge decisionsArticle 86 Restrictions on other proceedingsTitle V Cross-border group resolution (arts. 87-92)Article 87 General principles regarding decision-making involving more than one Member StateArticle 88 Resolution collegesArticle 89 European resolution collegesArticle 90 Information exchangeArticle 91 Group resolution involving a subsidiary of the groupArticle 92 Group resolutionTitle VI Relations with third countries (arts. 93-98)Article 93 Agreements with third countriesArticle 94 Recognition and enforcement of third-country resolution proceedingsArticle 95 Right to refuse recognition or enforcement of third-country resolution proceedingsArticle 96 Resolution of Union branchesArticle 97 Cooperation with third-country authoritiesArticle 98 Exchange of confidential informationTitle VII Financing arrangements (arts. 99-109)Article 99 European system of financing arrangementsArticle 100 Requirement to establish resolution financing arrangementsArticle 101 Use of the resolution financing arrangementsArticle 102 Target levelArticle 103 Ex-ante contributionsArticle 104 Extraordinary ex-post contributionsArticle 105 Alternative funding meansArticle 106 Borrowing between financing arrangementsArticle 107 Mutualisation of national financing arrangements in the case of a group resolutionArticle 108 Ranking in insolvency hierarchyArticle 109 Use of deposit guarantee schemes in the context of resolutionTitle VIII Penalties (arts. 110-114)Article 110 Administrative penalties and other administrative measuresArticle 111 Specific provisionsArticle 112 Publication of administrative penaltiesArticle 113 Maintenance of central database by EBAArticle 114 Effective application of penalties and exercise of powers to impose penalties by competent authorities and resolution authoritiesTitle IX Powers of execution (art. 115)Article 115 Exercise of the delegationTitle X Amendments to Directives 82/891/EEC, 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU AND 2013/36/EU and to Regulations (EU) NO 1093/2010 and (EU) NO 648/2012 (arts. 116-126)Article 116 Amendment to Directive 82/891/EECArticle 117 Amendments to Directive 2001/24/ECArticle 118 Amendment to Directive 2002/47/ECArticle 119 Amendment to Directive 2004/25/ECArticle 120 Amendment to Directive 2005/56/ECArticle 121 Amendments to Directive 2007/36/ECArticle 122 Amendment to Directive 2011/35/EUArticle 123 Amendment to Directive 2012/30/EUArticle 124 Amendment to Directive 2013/36/EUArticle 125 Amendment to Regulation (EU) No 1093/2010Article 126 Amendment to Regulation (EU) No 648/2012Title XI Final provisions (arts. 127-132)Article 127 EBA Resolution committeeArticle 128 Cooperation and information exchange among institutions and authoritiesArticle 128a Accessibility of information on the European single access pointArticle 128b Means of disclosureArticle 128c Crisis management simulationsArticle 128d Transitional provisionsArticle 129 ReviewArticle 130 TranspositionArticle 131 Entry into forceArticle 132 AddresseesAnnexAnnex, Section A Information to be included in recovery plansAnnex, Section B Information that resolution authorities may request institutions to provide for the purposes of drawing up and maintaining resolution plansAnnex, Section C Matters that the resolution authority is to consider when assessing the resolvability of an institution or groupDone at
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AI Summary of Article 38 The sale of business tool

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Version status: Entered into force | Document consolidation status: Updated to reflect all known changes
Version date: 2 July 2014 - onwards
Version 2 of 2

Article 38 The sale of business tool

1. Member States shall ensure that resolution authorities have the power to transfer to a purchaser that is not a bridge institution:

(a) shares or other instruments of ownership issued by an institution under resolution;

(b) all or any assets, rights or liabilities of an institution under resolution;

Subject to paragraphs 8 and 9 of this Article and to Article 85, the transfer referred to in the first subparagraph shall take place without obtaining the consent of the shareholders of the institution under resolution or any third party other than the purchaser, and without complying with any procedural requirements under company or securities law other than those included in Article 39.

2. A transfer made pursuant to paragraph 1 shall be made on commercial terms, having regard to the circumstances, and in accordance with the Union State aid framework.

3. In accordance with paragraph 2 of this Article, resolution authorities shall take all reasonable steps to obtain commercial terms for the transfer that conform with the valuation conducted under Article 36, having regard to the circumstances of the case.

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