Conditions for applying the instrument for the participation of holders of relevant capital instruments and eligible liabilities

(1) Other than in the cases under section 89, the resolution authority may also apply the instrument for the participation of holders of relevant capital instruments under section 89 to relevant capital instruments and to eligible liabilities under subsection (4) that are
1. issued by a subsidiary undertaking and recognised, on an individual or consolidated basis, for the purposes of meeting own funds requirements, where the resolution authority and the authority of the Member State of the subsidiary undertaking responsible for the determination establish, by way of a joint decision under section 166(3) and (4) in accordance with section 66, that the conditions of section 62(1), first sentence, points 1 and 3, are satisfied in respect of the group;
2. issued by a domestic parent undertaking and recognised, on an individual basis at the level of the domestic parent undertaking or on a consolidated basis, for the purposes of meeting own funds requirements, where the resolution authority establishes that the conditions of section 62(1), first sentence, points 1 and 3, are satisfied in respect of the group;
3. issued by an institution to which extraordinary public financial support is granted, other than in the cases under section 63(2), second sentence, point 3 or 4; or issued by an institution or group entity where the resolution authority establishes that the conditions of section 62(1), first sentence, points 1 and 3, are satisfied.
(2) For the purposes of subsection (1), points 1, 2 and 4, a group is failing or likely to fail where the group infringes the supervisory requirements at consolidated level in a manner that would justify action by the supervisory authority under section 45(1) of the Banking Act in respect of an undertaking of the group supervised on a consolidated basis, or where objective elements indicate that an infringement under subsection (1), point 1, is likely to occur, at least in the near future.
(3) In the case of a measure under subsection (1), the valuation under section 146 is carried out, and section 147 applies.
(4) Eligible liabilities may be written down or converted under subsection (1) insofar as they satisfy the conditions referred to in section 49f(2), point 1, other than the condition relating to the residual maturity of the liabilities under Article 72c(1) of Regulation (EU) No 575/2013. Section 68(1), point 1, applies.