The Authority shall be vested with the power to effect Settlement and Resolution within the scope of its competence, and in the event of the restructuring or liquidation of any Licensed Person designated as systemically important in accordance with the provisions of Article (52) of this Decree by Law, the Authority may exercise the following powers: 1. To remove or appoint the Executive Management, directors, and any employees, and to recover funds from responsible persons, including the recovery of bonuses and incentives. 2. To appoint one or more persons as Settlement and Resolution administrator to assume control over the Licensed Person and manage its affairs, or parts thereof, for the purpose of restoring its viability, and to grant them the powers set forth in clauses (3), (4), and (5) of this Article. 3. To cancel, amend, or rescind contractual conditions, or to terminate contracts, enforce obligations of the Licensed Person, continue or assign contracts to which the Licensed Person is a party, or purchase or sell assets. 4. To write off or transfer any debt instruments or obligations. 5. To ensure the continuity of services and operational functions deemed necessary by the Authority, through any of the following: a. Requiring other entities within the same group to continue providing services or facilities to the Licensed Person, or to any successor or acquiring entity thereof. b. Ensuring the ability of the entity remaining in Settlement and Resolution to provide such services temporarily to a successor or acquiring entity. c. Obtaining necessary services or facilities from unaffiliated third parties. 6. To cancel the rights of partners or shareholders in the Licensed Person, including the cancellation of rights to acquire additional shares or stakes and the requirements or the approval of partners or shareholders in respect of certain transactions, in order to permit a merger, acquisitions, sale of business operations, recapitalization, or other measures for the restructuring and disposition of the business, obligations, or assets of the Licensed Person. 7. To transfer or sell all or part of the rights, obligations, assets, liabilities, stakes, or shares of the Licensed Person to a solvent third party, notwithstanding requirements relating to consent to or novation of obligations that might otherwise apply. 8. To establish a separate entity to manage the assets of the Licensed Person and transfer such assets thereto for the management of non-performing loans or assets that are difficult to value. 9. To implement a rescue operation with the participation of a third party to ensure continuity of critical functions, either through recapitalization of the entity performing such functions or through the capitalization of a newly established entity to manage the Settlement and Resolution process to which such functions are transferred. 10. To temporarily suspend the exercise of early termination rights under any contracts or agreements that would otherwise be triggered upon the entry of the Licensed Person into Settlement and Resolution, or in connection with the exercise of Settlement and Resolution powers. 11. To impose a temporary moratorium, with suspension of payments to unsecured creditors and clients, except for payments to Central Clearings, Payment, Clearing and Settlement Systems, and Central Banks, and to suspend creditor actions to seize assets or collect funds or property from the Licensed Person, whilst preserving the enforceability of netting arrangements and collateral agreements. 12. To execute an orderly wind-down and liquidation of all or part of the business of the Licensed Person. 13. To require the Licensed Person to provide immediate access to transaction accounts, return identifiable assets, and return segregated assets to clients. 14. To restrict secured creditors of the Licensed Person from enforcing security rights over its assets, except for assets pledged, assigned, or provided as margin or collateral to Central Clearings, Payment, Clearing and Settlement Systems, or Central Banks. 15. To undertake any of the following measures with respect to debt instruments or other obligations issued by the Licensed Person: a. Amend the maturity date. b. Amend the amount of interest due. c. Amend the date on which interest becomes payable, including temporary suspension of payment. 16. To compel any person to cease or suspend the acceptance of trading in financial instruments related to the Licensed Person. 17. To determine the circumstances to be disregarded in assessing whether an event of default applies under any contract. 18. The Authority shall exercise its powers of Settlement and Resolution: a. Notwithstanding any restriction or requirement for consent (other than that of the purchaser) for the transfer of relevant financial instruments, rights, assets, or obligations. b. Without requiring consent from any person, whether public or private, including partners, shareholders, or creditors of the Licensed Person. c. Without the necessity of notifying any person, including any condition requiring publication of notices, prospectuses, or registration of documents with any other authority. d. With priority over any procedural requirements under the applicable corporate laws in the State. 19. The Authority shall exercise its Settlement and Resolution powers with respect to any holding company, subsidiary, or branch of the Licensed Person, after coordination with the competent authorities. 20. The Authority shall be entitled to recover reasonably incurred expenses in connection with the exercise of its Settlement and Resolution powers. 21. Should the Authority determine the existence of obstacles impeding the Settlement and Resolution of the Licensed Person or any entity within its group, it may require the Licensed Person to take such measures as the Authority reasonably considers necessary to remove or mitigate the effects of such obstacles. 22. Neither the Licensed Person, nor any entity within its group, nor any of its directors or employees, nor any person appointed by the Authority, shall be liable for acts or omissions made in good faith to comply with the Authority’s requirements in connection with the exercise of Settlement and Resolution powers. 23. If any foreign resolution authority or Financial Free Zone informs the Authority of its intention or action to effect Settlement and Resolution of an entity within the scope of its oversight and requests recognition thereof, the Authority may decide to recognize such action in whole or in part, or to refuse recognition. 24. The Authority may issue regulations regarding enhancing the resolvability of a Licensed Person and the exercise of its Settlement and Resolution powers.
Interpretation and application must be checked against the official text and current version.