Further effects of applying the instrument for the participation of holders of relevant capital instruments and the creditor participation instrument

(1) Where the resolution authority writes down to zero the nominal value or the amount owed of a relevant capital instrument, an eligible liability under section 65(4), or a bail-inable liability, in exercise of the powers referred to in section 89(1) or section 90, point 2, the liability concerned, and any obligations or claims arising from it against the institution or group entity and its legal successors, are deemed discharged.
(2) Where the resolution authority writes down only in part the nominal value or the outstanding balance of a relevant capital instrument, an eligible liability under section 65(4), or a bail-inable liability, in exercise of the powers referred to in sections 89 and 90, 1. the liability concerned, and any obligations or claims arising from it against the institution or group entity and its legal successors, are deemed discharged to the extent of the amount written down; 2. the agreement under which the original liability was created continues to apply to the remaining nominal value or the outstanding balance of the liability, subject to a change to the amount of interest payable corresponding to the write-down of the nominal value, and to any further changes to the terms that the resolution authority may make in exercising the power referred to in section 78(1), point 3.
(3) The write-down of the nominal value or the outstanding balance is permanent. This is without prejudice to the resolution authority's power under section 75(4) to write the value of the written-down liabilities back up. Where the conditions of section 75(4) are satisfied, the resolution authority also has the power to reverse, to the necessary extent, the cancellation of shares or the deletion of other Common Equity Tier 1 instruments. The legal position of the shareholders or holders of other Common Equity Tier 1 instruments is likewise restored to the corresponding extent. These powers are implemented by an administrative act, published in the same form as the resolution order.
(4) The resolution order replaces, for the measures it directs, all resolutions and consents required under company law, insofar as these have not already been adopted before the instrument for the participation of holders of relevant capital instruments or the creditor participation instrument is applied. Notices, announcements, and other measures preparatory to company-law resolutions are deemed to have been effected in the prescribed form. The resolution order also replaces all declarations of intent of the parties concerned that are necessary to implement the company-law measures.
(5) The provisions on shareholder loans and economically comparable claims, in particular section 39(1), point 5, of the Insolvency Code, do not apply to holders of relevant capital instruments and eligible liabilities under section 65(4), or to creditors, where they have become a shareholder, or a third party economically comparable to a shareholder, solely because the instrument for the participation of holders of relevant capital instruments or the creditor participation instrument was applied to their claims.
(6) Where eligible liabilities under section 65(4) or bail-inable liabilities are converted into shares or other Common Equity Tier 1 instruments in the institution or group entity, the institution or group entity may not bring claims against the former creditors or holders of relevant capital instruments and eligible liabilities under section 65(4) for an incorrect valuation of the converted liabilities.
(7) (repealed)
(8) The rights of holders of relevant capital instruments and eligible liabilities under section 65(4), or of creditors, against co-debtors, guarantors, and other third parties liable for liabilities of the institution or group entity, remain unaffected by the application of the instrument for the participation of holders of relevant capital instruments or the creditor participation instrument. However, the institution or group entity and its legal successors are, by the application of the instruments referred to in the first sentence, released as against the co-debtor, guarantor, other third party, or other person entitled to recourse, to the same extent as against the holder of relevant capital instruments and eligible liabilities under section 65(4) or the creditor.