Instrument for the participation of holders of relevant capital instruments

(1) Where the resolution conditions under section 62 or section 64 are satisfied in respect of an institution or a group entity, the resolution authority directs, in accordance with the following provisions, that relevant capital instruments of the institution or group entity be converted into shares or other Common Equity Tier 1 instruments in the institution or group entity, or, in the case of section 96(1), point 1, that the nominal value or outstanding balance of relevant capital instruments of the institution or group entity be written down in whole or in part; in the case of section 96(7), a write-down may be carried out without a conversion being effected. A conversion or write-down under the first sentence must, where the conditions of section 65(1) are satisfied, also extend to eligible liabilities within the meaning of section 65(4).
(2) Insofar as, at resolution group level, relevant capital instruments and eligible liabilities within the meaning of section 65(4) were acquired by the resolution entity indirectly through other undertakings in the same resolution group, the write-down or conversion is exercised together with the write-down or conversion at the level of the parent undertaking of the undertaking concerned, or at the level of other parent undertakings that are not resolution entities.
(3) In the case of a measure under subsection (1) in respect of a resolution entity, or, in exceptional cases and by way of derogation from the resolution plan, in respect of an undertaking that is not a resolution entity, the amount by which the amount at the level of such an undertaking is reduced, written down, or converted under section 96 is counted towards the thresholds applicable to the undertaking concerned under section 7a(3) of the Restructuring Fund Act.