Recognition and enforcement of third-country resolution proceedings

(1) The provisions of this section apply to third-country resolution proceedings, insofar and for as long as no agreement under section 167(4) with the third country concerned has entered into force. They also apply after an agreement under section 167(4) with a third country has entered into force, insofar as that agreement does not govern the recognition and enforcement of third-country resolution proceedings.
(2) Third-country resolution proceedings means a measure provided for under the law of a third country, for dealing with the failure of a third-country institution, that is comparable, in its objectives and expected outcomes, with the resolution actions provided for in this Act.
(3) Where a European resolution college exists under section 159(1), it decides, by way of a joint decision, whether to recognise third-country resolution proceedings in respect of a third-country institution or parent undertaking, provided that a case under section 170 does not apply, and provided that
1. the third-country institution or parent undertaking has domestic subsidiary institutions or one or more domestic Union branches classified as significant, in two or more other Member States, or
2. the third-country institution or parent undertaking has assets, rights, or liabilities located in, or governed by the law of, two or more Member States. Where the European resolution college has agreed, by joint decision, to recognise third-country resolution proceedings, the resolution authority enforces those third-country resolution proceedings by way of administrative assistance, subject to their compatibility with German law and with existing intergovernmental agreements with the third country concerned.
(4) Where no joint decision of the European resolution college on recognising third-country resolution proceedings under subsection (2) exists, the resolution authority decides on the recognition and enforcement of third-country resolution proceedings, having regard to section 170, for subsidiary institutions with their seat in Germany or a domestic Union branch classified as significant, and for assets, rights, or liabilities located in Germany or governed by German law. In doing so, it has regard to the interests of the individual Member States in which a third-country institution or a parent undertaking operates, and in particular to the possible effects of recognising and enforcing third-country resolution proceedings on other parts of the group and on financial stability in the Member States concerned.
(5) Subject to compatibility with German law and with existing intergovernmental agreements with the third country concerned, the resolution authority is, in accordance with subsection (4), entitled in particular
1. to exercise resolution powers under third-country resolution proceedings, by way of administrative assistance, in respect of
a) assets of a third-country institution or a parent undertaking located in Germany or governed by German law;
b) rights or liabilities of a third-country institution that are held by the Union branch in Germany or are governed by German law, or that give rise to claims enforceable in Germany;
2. to carry out, or direct the carrying out of, a transfer of shares or instruments of ownership in a subsidiary institution established in Germany;
3. to exercise the powers under sections 82, 83, or 84 in respect of the rights of the parties to a contract with an undertaking referred to in subsection (3), where such powers are necessary to enforce the third-country resolution proceedings;
4. to restrict the enforceability of contractual rights that, in particular,
a) have as their subject the termination, cancellation, dissolution, or winding-up of contracts, or the discharge or acceleration of claims, or
b) impair the contractual rights of the parties referred to in subsection (3) and of other group entities, where and insofar as the right to be enforced results from a resolution action in respect of those parties, on condition that the essential contractual obligations, including payment and delivery obligations and the obligation to provide collateral, remain unaffected.
(6) Insofar as necessary in the public interest, the resolution authority may take resolution action in respect of a parent undertaking, where the competent third-country resolution authority reaches the assessment that the undertaking satisfies the resolution conditions under the national law of that third country.
(7) The recognition and enforcement of third-country resolution proceedings does not affect insolvency proceedings under German law that may be applicable in accordance with this Act.
(8) Subject to a prior examination of compatibility with German law and with existing intergovernmental agreements with the third country concerned, the resolution authority recognises third-country resolution proceedings, except in the cases under section 170, insofar as they provide for arrangements necessary to achieve one or more resolution objectives. Recognising the third-country resolution proceedings does not, in that case, affect resolution proceedings under German law.