Power to temporarily suspend termination rights

(1) Where the resolution conditions are satisfied, the resolution authority may suspend the right of a party to terminate a contract with an institution or group entity under resolution, for the period from the public announcement of that suspension under section 137(1) until the close of the business day following that announcement.
(2) The resolution authority may suspend the right of a party to terminate a contract with a group entity belonging to the same group as a group entity under resolution, for the period from the public announcement under section 137(1) until the close of the business day following that announcement in the Member State in which the group entity party to the contract concerned has its seat, where the following conditions are satisfied: 1. performance of the obligations arising from the contract is guaranteed, or otherwise secured, by the group entity under resolution; 2. the termination right is triggered solely by the existence of grounds for insolvency, the resolution conditions, or the direction or implementation of resolution action; and 3. in the event that a transfer has been, or may be, directed in respect of the institution or group entity under resolution, a) all rights and obligations of the institution or group entity under resolution connected with that contract have been, or may be, transferred to and assumed by the recipient legal entity, or b) the resolution authority is able to provide equivalent protection for the claims of the other contracting parties.
(3) In a direction under subsection (1) or (2), the resolution authority has regard to the possible effects on the orderly functioning of the financial markets.
(4) A direction under subsection (1) or (2) is not made in respect of 1. participants in systems within the meaning of section 1(16) of the Banking Act, 2. system operators within the meaning of section 1(16a) of the Banking Act, 3. 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, 4. third-country central counterparties recognised by the European Securities and Markets Authority under Article 25 of Regulation (EU) No 648/2012, and 5. central banks.
(5) A contracting party may exercise a termination right before the expiry of the period referred to in subsection (1) or (2) only where it receives notice from the resolution authority that the rights and obligations connected with the contract will be neither transferred to a recipient legal entity nor made subject to a write-down or conversion in applying the creditor participation instrument.
(6) There is no entitlement to a notice from the resolution authority under subsection (5). Where no notice under subsection (5) has been given, a contracting party may, after the expiry of the period referred to in subsection (1) or (2), and subject to sections 82 and 144, exercise a termination right where 1. in cases where the rights and obligations connected with the contract were transferred to a recipient legal entity, the contractual conditions for terminating the contract continue to be satisfied even after the transfer to the recipient legal entity; 2. in cases where the rights and obligations connected with the contract remain with the institution or group entity under resolution, and the resolution authority has not applied the creditor participation instrument to the institution or group entity under resolution, the contractual conditions for terminating the contract continue to be satisfied on expiry of the period referred to in subsection (1).
(7) Subsections (1) to (6) apply correspondingly to all grounds for termination arising from a contract with an institution or group entity under resolution. The suspension may not be effected where use has already been made of a direction under section 66a in respect of the institution or group entity.