Insolvency application

(1) Where an institution holding a licence to conduct business domestically, or that, after the expiry of its licence, still conducts business subject to a licensing requirement in the course of winding-up, or a financial holding company or mixed financial holding company deemed a superordinate undertaking under section 10a, becomes unable to pay its debts or becomes over-indebted, the managers, and, in the case of an institution operated in the legal form of a sole trader, the owner, must notify the Federal Institute of this without delay, enclosing meaningful documents. The persons designated in the first sentence must also make such a notification, enclosing corresponding documents, where the institution or the financial holding company or mixed financial holding company deemed a superordinate undertaking under section 10a is likely not to be in a position to meet its existing payment obligations when due (imminent illiquidity). The persons designated in the first sentence must also make such a notification, enclosing corresponding documents, where the institution or the financial holding company or mixed financial holding company deemed a superordinate undertaking under section 10a is likely not to be in a position to meet its existing payment obligations when due (imminent illiquidity). Insofar as these persons are obliged under other legal provisions to apply for the opening of insolvency proceedings in the event of illiquidity or over-indebtedness, the duty to notify under the first sentence takes the place of the duty to apply. Insolvency proceedings over the assets of an institution, or of a financial holding company or mixed financial holding company deemed a superordinate undertaking under section 10a, take place in the case of illiquidity, over-indebtedness, or, under the conditions of the fifth sentence, also in the case of imminent illiquidity. The application for the opening of insolvency proceedings over the assets of the institution, or of the financial holding company or mixed financial holding company deemed a superordinate undertaking under section 10a, may be made only by the Federal Institute. In the case of imminent illiquidity, however, the Federal Institute may make the application only with the institution's consent, and, in the case of a financial holding company or mixed financial holding company deemed a superordinate undertaking under section 10a, with its consent. Before appointing the insolvency administrator, the insolvency court must hear the Federal Institute on the administrator's suitability. The opening order must be served on the Federal Institute separately. The insolvency court sends the Federal Institute all further orders concerning the proceedings, and provides information on request on the status and progress of the proceedings. The Federal Institute may inspect the insolvency files.
(1a) The rights to apply under section 3a(1), section 3d(2), and section 269d(2) of the Insolvency Code lie, for institutions and for financial holding companies designated as superordinate undertakings under section 10a, exclusively with the Federal Institute. The initiation of coordination proceedings (sections 269d to 269i of the Insolvency Code) takes effect for the institutions belonging to the group, and for the financial holding companies designated as superordinate undertakings, only where the Federal Institute has applied for it or has consented to it. Subsection (1), sixth sentence, applies correspondingly to the appointment of the group coordinator.
(2) Where insolvency proceedings are opened over an institution that is a participant in a system within the meaning of section 24b(1), the Federal Institute must, without delay, inform the European Securities and Markets Authority, the European Systemic Risk Board, and the bodies notified to the European Commission by the other states of the European Economic Area. The first sentence applies correspondingly to system operators within the meaning of section 24b(5).
(3) The insolvency administrator continuously informs the Federal Institute of the status and progress of the insolvency proceedings, in particular by providing the reports for the insolvency court, the creditors' meeting, or a creditors' committee. The Federal Institute may also require further information and documents concerning the insolvency proceedings.