Supporting measures

(1) The resolution authority may direct measures under subsections (2) to (7) where this is necessary to apply resolution orders effectively or to achieve the resolution objectives.
(2) Subject to subsection (3), the resolution authority may, by direction, amend or remove the rights of third parties in assets forming part of the estate of the institution under resolution. Without prejudice to the resolution authority's powers under sections 82 to 84 and 144, a security interest may not be restructured insofar as the secured liability would thereby become unsecured, unless the liabilities concerned are covered deposits and the restructuring is necessary to ensure the availability of the covered deposits.
(3) Insofar as this is necessary for it to perform its functions, the resolution authority may suspend or discontinue trading in financial instruments traded on a trading venue within the meaning of section 2(22) of the Securities Trading Act or through a systematic internaliser within the meaning of section 2(8), first sentence, point 2, letter b, of the Securities Trading Act, or officially listed under Directive 2001/34/EC of the European Parliament and of the Council of 28 May 2001 on the admission of securities to official stock exchange listing and on information to be published on those securities (OJ L 184, 6.7.2001, p. 1), and issued by the institution affected by resolution action.
(4) The resolution authority may, among other things for the purposes of section 118(3), direct that the recipient legal entity be treated as if it were the institution or group entity under resolution. This equal treatment relates in particular to rights or obligations of the institution or group entity under resolution, including rights or obligations connected with participation in, or use of, a market infrastructure.
(5) In respect of a contract to which the institution or group entity under resolution is a party, the resolution authority may 1. restructure all or individual provisions; 2. decline further performance; 3. substitute a recipient legal entity as the contracting party.
(6) A measure under subsection (5) does not entitle the other parties to the contract to terminate, otherwise end, or amend the contract. Without prejudice to the resolution authority's powers under sections 82 to 84 and 144, the power under subsection (5) does not extend to financial collateral within the meaning of section 1(17) of the Banking Act, set-off agreements, netting agreements, liabilities arising from covered bonds, including derivative transactions forming part of the cover pool within the meaning of section 4(3), second sentence, of the Pfandbrief Act, and liabilities arising from issued securitisation transactions.
(7) In the case of systems within the meaning of section 1(16) of the Banking Act, a measure under subsection (5) may not affect the operation of systems falling within the scope of Directive 98/26/EC, or run counter to the provisions of that Directive. In particular, it may not result in the revocation of transfer orders within the meaning of Article 5 of Directive 98/26/EC, and must leave unaffected the legal enforceability of transfer orders and netting under Articles 3 and 5 of Directive 98/26/EC, the use of funds, securities or credit facilities within the meaning of Article 4 of Directive 98/26/EC, and the protection of collateral security within the meaning of Article 9 of Directive 98/26/EC.
(8) The resolution authority may direct measures necessary to ensure that the resolution action is effective and that, where applicable, the transferred activity can be carried out by the recipient legal entity (continuity measures).
(9) The following rights remain unaffected by measures under subsections (4) and (8): 1. the right of a manager, or of an employee, of the institution or group entity under resolution to terminate their employment or service contract; 2. subject to sections 82 to 84 and 144, the right of a contracting party to exercise its contractual rights, including its right of termination, where a contractual right of termination is agreed for the case of a specific act or omission of the institution or group entity under resolution before the relevant transfer, or of the recipient legal entity after the transfer.