Power to suspend contractual obligations

(1) The resolution authority may direct that all or specific payment or delivery obligations of an institution or group entity under resolution, under contracts to which it is a party, be suspended for the period from the public announcement of that suspension under section 137(1) until the close of the business day following that announcement. In directing the suspension, the resolution authority has regard to the possible effects on the orderly functioning of the financial markets. In determining the scope of a suspension, the resolution authority has regard to the circumstances of the individual case. In doing so, the resolution authority assesses in particular whether it is appropriate to extend the suspension to eligible deposits, in particular covered deposits, held by natural persons, micro-enterprises, and small and medium-sized enterprises. Where a suspension is extended to eligible deposits, the resolution authority sets, for each day of the suspension, an appropriate amount that is exempt from the suspension. A direction under the first sentence may not be exercised in respect of an institution or group entity where use has already been made of a direction under section 66a.
(2) Exempt from a suspension under subsection (1), first sentence, are payment and delivery obligations owed to systems within the meaning of section 1(16) of the Banking Act, system operators within the meaning of section 1(16a) of the Banking Act, central counterparties within the meaning of section 1(31) of the Banking Act authorised in the Union under Article 14 of Regulation (EU) No 648/2012, third-country central counterparties recognised by the European Securities and Markets Authority under Article 25 of that Regulation, and central banks.
(3) Where the payment or delivery obligations of an institution or group entity under resolution under a contract are suspended under subsection (1), first sentence, the payment or delivery obligations of the counterparties of the institution or group entity under resolution under that contract are suspended for the same period.
(4) A payment or delivery obligation whose due date falls within the suspension period becomes due immediately upon the expiry of the suspension period.
(5) Where the resolution authority has directed resolution action, sections 46 and 46g of the Banking Act apply to the institution concerned only with the consent of the resolution authority.