Directing resolution actions

(1) Where the resolution conditions are satisfied, the resolution authority may, in accordance with this Act, take all measures necessary to achieve the resolution objectives; in particular, it may 1. direct, in a resolution order under section 136, the application of the following resolution tools: a) the instrument for the participation of holders of relevant capital instruments under section 89; b) the creditor participation instrument under section 90; c) the business sale tool under section 107(1), point 1, letter a; d) the tool of transfer to a bridge institution under section 107(1), point 1, letter b; e) the tool of transfer to an asset management vehicle under section 107(1), point 2; 2. take measures, in or alongside a resolution order under section 136, or, in the cases under sections 78 and 82 to 86, also in preparation for a resolution order under section 136, on the basis of its powers under sections 78 to 87.
(1a) Measures under subsection (1), point 2, taken alongside or in preparation for a resolution order, may be issued as a general administrative order correspondingly to section 137(1) and (2).
(2) Where the conditions under section 65 are satisfied, the resolution authority may, in a resolution order under section 136, direct the application of the instrument for the participation of holders of relevant capital instruments in respect of relevant capital instruments and eligible liabilities under section 65(4), and may, in or alongside that resolution order, exercise all resolution powers necessary to exercise the instrument for the participation of holders of relevant capital instruments.
(3) Where this is necessary for applying resolution actions or the instrument for the participation of holders of relevant capital instruments, the resolution authority may, under section 149, direct in a resolution order that an institution or group entity under resolution change its legal form into a stock corporation. For institutions or group entities governed by Land law, directing a change of legal form is not permitted where the Land law expressly so provides.
(4) In applying resolution actions, the resolution authority has regard to the resolution objectives and selects the resolution tools and resolution powers that best achieve the objectives relevant in the circumstances of the individual case.
(5) The resolution tools may be applied individually or in any combination.
(6) By way of derogation from subsection (5), the resolution authority always applies the instrument for the participation of holders of relevant capital instruments where the resolution conditions are satisfied, in accordance with this Act. Where the participation of holders of relevant capital instruments is sufficient to achieve the resolution objectives, the resolution authority does not direct any further resolution tools.
(7) By way of derogation from subsection (5), the tool of transfer to an asset management vehicle under section 107(1), point 2, may be applied only together with another resolution tool.
(8) Where the conditions of section 63(2), second sentence, point 3, are satisfied, the resolution authority may direct the creditor participation instrument under section 90 and the instrument for the participation of holders of relevant capital instruments under section 89, and exercise the resolution powers under sections 78 to 87, insofar as this serves to meet State aid law requirements. The same applies where, in the case of section 64(1) or (2), the resolution conditions are not satisfied solely by reason of section 63(2), second sentence, point 3.
(9) Where control, within the meaning of section 29(2) of the Securities Acquisition and Takeover Act, over a target company is obtained as a result of the application of resolution action, the Federal Financial Supervisory Authority exempts the legal entity acquiring control, on application by the resolution authority, from the obligation to publish under section 35(1), first sentence, of the Securities Acquisition and Takeover Act, and from the obligation to submit a bid under section 35(2), first sentence, of the Securities Acquisition and Takeover Act. Sections 10 to 12 of the Regulation on the Content of the Offer Document, the Consideration for Takeover Bids and Mandatory Bids, and the Exemption from the Obligation to Publish and Submit a Bid, of 27 December 2001 (Federal Law Gazette I, p. 4263), apply correspondingly to the exemption procedure.