1. The Central Bank is the ‘Resolution Authority’ in the State and shall have the following powers in case of restructuring or winding down any Licensed Financial Institution, it places under resolution: a. Remove and appoint the senior management and directors and other Authorized Individuals, and recover monies from responsible persons, including claw-back of incentives and remunerations. b. Appoint one or more individuals to act as resolution administrator to manage or take control the concerned institution, or parts of its business, with the aim of restoring its viability, and granting them the powers referred to in paragraphs (c), (d) and (e) of this item. c. Terminate or close out contracts to which the concerned institution is a party, or fulfilling or assigning obligations arising therefrom, or purchase or sell assets. d. Write down or convert any instrument or liability. e. Ensure the continuity of operational services and functions the Central Bank deems necessary through any of the following: 1. Require other entities in the same group to continue to provide services or facilities to the concerned institution or any successor or acquiring entity; 2. Ensure the residual entity in resolution can temporarily provide such services to a successor or acquiring entity; or 3. Procure the necessary services or facilities from unaffiliated third parties. f. Override rights of shareholders of the concerned institution, including removing the rights to acquire further shares and requirements for approval by shareholders of particular transactions, in order to permit a merger, acquisition, sale of business operations, recapitalization or other measures to restructure and dispose of its business, liabilities or assets. g. Transfer or sell of all or part of the rights and obligations, assets, liabilities and shares of the concerned institution to a solvent third party, notwithstanding any requirements for consent or novation that would otherwise apply. h. Establish a temporary bridge institution to take over and continue operating certain critical functions and viable operations of the concerned institution. i. Establish a separate asset management vehicle and transfer thereto for management and run-down non-performing loans or difficult-to-value assets. j. Carry out a bail-in with the aim of ensuring the continuity of critical functions either by recapitalizing the entity providing these functions or by capitalizing a newly established entity or bridge institution to whom these functions have been transferred. k. Temporarily stay the exercise of early termination rights under any contracts or agreements that may otherwise be triggered upon entry of the concerned institution into resolution or in connection with the exercise of resolution powers. l. Impose a moratorium with a suspension of payments to unsecured creditors and customers – except for payments to central counterparties, payment, clearing and settlements systems and central banks – and a stay on creditor actions to attach assets or otherwise collect money or property from the concerned institution, while protecting the enforcement of eligible netting and collateral arrangements. m. Effect the closure and orderly wind-down of the whole or part of the business of the concerned institution. n. Require the concerned institution to provide prompt access to transaction accounts and return identifiable and segregated assets to customers. o. Restrict secured creditors of the concerned institution from enforcing security interests in relation to its assets; except for assets pledged or provided by way of margin or collateral to central counterparties, payment, clearing and settlements systems and central banks. p. In relation to debt instruments and other liabilities issued by the concerned institution, do any of the following: 1. Amend the maturity date; 2. Amend the amount of interest payable; or 3. Amend the date on which the interest becomes payable, including by suspending payment for a temporary period. q. Require a Person to discontinue or suspend the admission to trading of financial instruments relating to the concerned institution. r. Determine circumstances which must be disregarded to determine whether a default event provision in a contract applies. 2. The Central Bank may exercise its resolution powers: a. Irrespective of any restriction on, or requirement to obtain consent for (other than from a purchaser), the transfer of the financial instruments, rights, assets or liabilities in question that might otherwise apply. b. Without the requirement to obtain approval or consent of any Person either public or private, including the shareholders or creditors of the concerned institution. c. Without the requirement to notify any Person, including any requirement to publish any notice or prospectus or to file or register any document with any other authority. 3. The Central Bank’s exercise of its powers referred to in item (2) of this article shall have precedence over any procedural requirements under the legislation applicable in the State. 4. The Central Bank may exercise its resolution powers in respect of a holding company, subsidiary or branch of the concerned institution. 5. The Central Bank may recover expenses reasonably incurred in connection with the use of its resolution powers: a. As a deduction from any consideration paid by a transferee of the concerned institution or, as the case may be, to the owners of the shares; b. From the concerned institution, considering the Central Bank as a preferred creditor, subject to Article (144) of this decree-law; or c. From any proceeds generated as a result of the termination of the operation of a bridge institution or asset management vehicle, considering the Central Bank as a preferred creditor, subject to Article (144) of this decree-law. 6. Where the Central Bank determines there are impediments to the resolvability of the concerned institution or an entity in its group, it may require the concerned institution to take such measures as the Central Bank considers reasonably necessary to remove or mitigate the effect of those impediments. 7. The concerned institution, an entity in its group or its directors and staff, as well as any Person appointed by the Central Bank, will not be liable to third parties for actions or omissions made in good faith to comply with requirements from the Central Bank in connection with the exercise of its resolution powers. 8. Where any resolution authority outside the State or in a Financial Free Zone notifies the Central Bank that it intends to take or has taken resolution action with respect to an entity in that jurisdiction and requests the Central Bank to recognize that resolution action, the Central Bank shall make a decision to recognize that action in full or in part or refuse to recognize it. 9. The Central Bank may issue regulations with respect to enhancing the resolvability of Licensed Financial Institutions and the exercise of its resolution powers. 10. In respect of a (Re)Insurance Company, the Central Bank shall have the following powers, in addition to the aforementioned powers referred to in this article, to restructure or wind down the concerned company it places under resolution: a. Permit the exercise of options under existing contracts of insurance, including the surrender or withdrawal of contract cash value and the payment of further Premiums provided for under the existing contracts. b. Restructure, limit, write down or convert any instrument or liability, including insurance, reinsurance and other liability, and allocate losses to creditors, Insured and Beneficiaries in a way consistent with the statutory creditor hierarchy, without a requirement of prior individual notification to and consent from creditors, including Insured and Beneficiaries. c. Transfer or sell of all or part of the rights and obligations, assets, liabilities and shares of the concerned company, including undertaking a portfolio transfer of all or part of the insurance business and reinsurance associated with the transferred policies, to a solvent third party, notwithstanding any requirements for consent or novation that would otherwise apply. d. Establish a separate asset management vehicle where non-performing portfolios or assets will be transferred for management, disposal, and liquidation. e. Discontinue the writing of new insurance policies by the company in resolution while continuing to administer existing contractual policy obligations. f. Suspend any payment or delivery obligations pursuant to any contract to which the concerned company under resolution is a party – except in respect of payment and delivery obligations to central counterparties, payment, clearing and settlements systems and central banks – and the suspension applies to both the concerned company and the concerned counterparties.
Interpretation and application must be checked against the official text and current version.