AI Summary of Article 72b Eligible liabilities instruments
This Article outlines the criteria for liabilities to qualify as eligible liabilities instruments, emphasising the need for full payment and specific ownership requirements. Key provisions include that liabilities must be fully subordinated to excluded liabilities and must not have any enhancement in seniority from guarantees or other arrangements.
Furthermore, the resolution authority retains discretion to permit additional liabilities as eligible, subject to strict conditions to mitigate legal challenges. Institutions must also adhere to specified inclusion limits regarding their liability structures, ensuring compliance with regulatory frameworks.
Article 72b Eligible liabilities instruments
1. Liabilities shall qualify as eligible liabilities instruments, provided that they comply with the conditions set out in this Article and only to the extent specified in this Article.
2. Liabilities shall qualify as eligible liabilities instruments, provided that all the following conditions are met:
(a) the liabilities are directly issued or raised, as applicable, by an institution and are fully paid up;
(b) the liabilities are not owned by any of the following:
(i) the institution or an entity included in the same resolution group;
(ii) an undertaking in which the institution has a direct or indirect participation in the form of ownership, direct or by way of control, of 20 % or more of the voting rights or capital of that undertaking;