Member States must ensure resolution authorities can suspend payment or delivery obligations under contracts of institutions or entities in scope (Art 1(1)(b)–(d)) after consulting competent authorities where: a determination under Art 32(1)(a) that the institution is failing or likely to fail has been made; no immediately available private-sector measure would prevent failure; suspension is necessary to avoid further deterioration; and it is necessary to reach the Art 32(1)(c) determination or to choose/apply resolution tools. Exclusions apply to systems under Directive 98/26/EC, CCPs authorised or recognised under Regulation (EU) No 648/2012, and central banks. Resolution authorities shall set scope, carefully consider eligible and covered deposits and may provide depositors with access to an appropriate daily amount. Suspension must be as short as possible and in any event not extend beyond the period from publication of the notice to midnight at the end of the next business day; counterparties’ obligations are suspended for the same period and amounts due during suspension become payable immediately on expiry. Authorities must notify the institution, relevant authorities and publish the suspension order and terms.

When exercising the power authorities must consider the orderly functioning of financial markets, national supervisory and judicial safeguards and coordinate with insolvency and administrative authorities. During suspension authorities may restrict secured creditors from enforcing security and suspend termination rights for the same duration (with Articles 70 and 71 applying). Member States may retain broader national suspension powers; where those are used in respect of eligible deposits not treated as unavailable under Directive 2014/49/EU, depositors must have access to an appropriate daily amount. If suspension is exercised and resolution action subsequently follows, the resolution authority shall not then exercise the powers in Articles 69(1), 70(1) or 71(1) with respect to that institution or entity.