Common use of Cooperation for Priority Entities Clause in Contracts

Cooperation for Priority Entities. For Priority Entities, cooperation between the Participants includes, but may not be limited to, the following: (a) the ECB closely monitors, in cooperation with the SRB, the conditions of the Priority Entity and its compliance with any measures mentioned in Article 13(1) of the SRM Regulation in early intervention (b) during the SRB's preparatory work for resolution and when the SRB intends to impose requirements upon a Priority Entity in the context of Article 13(2) and (3) of the SRM Regulation, the SRB will have due regard to the ECB’s need to ensure the effectiveness of any early intervention measures taken by the ECB as referred to in Article 13(1) of the SRM Regulation; (c) the Participants ensure that any additional supervisory measure mentioned in Article 13(4) of the SRM Regulation and any action of the SRB aimed at preparing for resolution in accordance with Article 13(2) and Article 13(3) of the SRM Regulation are consistent; (d) the ECB consults the SRB before making a ‘failing or likely to fail’ assessment with regard to a Priority Entity in accordance with Article 18(1) of the SRM Regulation; (e) the ECB communicates a 'failing or likely to fail’ assessment with regard to a Priority Entity to the SRB without delay; (f) the ECB provides the SRB without delay with any relevant information that the SRB requests in order to make a ‘failing or likely to fail’ assessment; (g) the SRB assesses, in close cooperation with the ECB, whether there is no reasonable prospect that any alternative private sector measures or supervisory action taken in respect of a Priority Entity would prevent its failure within a reasonable timeframe; (h) the ECB may inform the SRB that it considers the circumstances mentioned under point (g) are present; (i) the SRB communicates an assessment that the conditions for resolution mentioned in Article 18(1) of the SRM Regulation are met in relation to any Other Institution to the ECB; (j) the ECB consults the SRB before making an assessment of the conditions mentioned in Article 21(1)(a), (c) and (d) of the SRM Regulation concerning the power to write down or convert capital instruments in relation to a Priority Entity. In accordance with Article 21 (2) of the SRM Regulation the SRB only makes a viability assessment, as provided for under Article 21(1)(b) of the SRM Regulation with regard to a Priority Entity if the ECB, within three calendar days of receipt of notification of the SRB’s intention to make a Viability Assessment, does not make its own viability assessment. The ECB provides the SRB – without delay – with any relevant information to be used by the SRB for its viability assessment, when requested; (k) in accordance with Article 27 (16) of the SRM Regulation the SRB, in agreement with the ECB, conducts the Business Reorganisation Plan Assessment of an Entity in resolution, in particular the likelihood that the plan, if implemented, will restore the long term viability of that Entity; (l) the SRB and the ECB should reach an agreement on the assessment of a business reorganisation plan in accordance with Article 27(16) of the SRM Regulation, which the SRB will communicate to the national resolution authority concerned. 9.1 Cooperation in on-site inspections in accordance with Article 36 of the SRM Regulation 9.1.1 The Participants will cooperate with regard to on-site inspections carried out by them to the extent necessary for the performance of their respective tasks under the SSM Regulation and SRM Regulation. 9.1.2 The SRB will inform the ECB of an intended on-site inspection with respect to an Entity at least one week before notifying the Entity subject to the on-site inspection or, if the SRB will carry out the on- site inspection without notifying the Entity concerned, as soon as possible before the start of the inspection. Prior to launching the on-site inspection, the SRB will verify with the ECB whether there is any ongoing supervisory on-site inspection or on-site inspection under launching phase. 9.1.3 The ECB and the SRB may agree to participate in each other’s on-site inspections to the extent necessary for performing their respective tasks. 9.1.4 Where appropriate, the Participants keep each other informed on the results of on-site inspections carried out by them in a timely manner, where the findings are relevant for the performance of their respective tasks, particularly with regard to the fields covered by this MoU and to the extent reasonable and permitted by Union law.

Cooperation for Priority Entities. For Priority Entities, cooperation between the Participants includes, but may not be limited to, the following: (a) the ECB closely monitors, in cooperation with the SRB, the conditions of the Priority Entity and its compliance with any measures mentioned in Article 13(1) of the SRM Regulation in early intervention; (b) in parallel with the submission to its Supervisory Board, the ECB provides the SRB with its assessment regarding early intervention conditions and measures, independently of whether an early intervention measure is taken, and, if applicable, the draft decision which would impose measures on the supervised Entity to address a situation in which the conditions for early intervention are fulfilled, as referred to in Article 13(1) of the SRM, also after a hearing of the entity 8 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1) concerned, and the ECB continues to keep the SRB informed thereafter including by sending a notification once the relevant decision has been adopted pursuant to Article 13(1) of the SRM Regulation; (c) during the SRB's preparatory work for resolution and when the SRB intends to impose requirements upon a Priority Entity in the context of Article 13(2) and (3) of the SRM Regulation, the SRB will have due regard to the ECB’s need to ensure the effectiveness of any early intervention measures taken by the ECB as referred to in Article 13(1) of the SRM Regulation; (cd) the Participants ensure that any additional supervisory measure mentioned in Article 13(4) of the SRM Regulation and any action of the SRB aimed at preparing for resolution in accordance with Article 13(2) and Article 13(3) of the SRM Regulation are consistent; (de) the ECB consults the SRB before making a ‘failing or likely to fail’ assessment with regard to a Priority Entity in accordance with Article 18(1) of the SRM Regulation; (ef) the ECB communicates a 'failing or likely to fail’ assessment with regard to a Priority Entity to the SRB without delay; (fg) the ECB provides the SRB without delay with any relevant information that the SRB requests in order to make a ‘failing or likely to fail’ assessment; (gh) the SRB assesses, in close cooperation with the ECB, whether there is no reasonable prospect that any alternative private sector measures (as well as any measures by the IPS) or supervisory action taken in respect of a Priority Entity would prevent its failure within a reasonable timeframe; (hi) the ECB may inform the SRB that it considers the circumstances mentioned under point (gh) are present; (ij) the SRB communicates an assessment that the conditions for resolution mentioned in Article 18(1) of the SRM Regulation are met in relation to any Other Institution to the ECB; (jk) the ECB consults the SRB before making an assessment of the conditions mentioned in Article 21(1)(a), (c) and (d) of the SRM Regulation concerning the power to write write-down or convert capital instruments conversion powers in relation to a Priority Entity. In accordance with Article 21 (2) of the SRM Regulation Regulation, the SRB only makes a viability assessment, as provided for under Article 21(1)(b) of the SRM Regulation assessment with regard to a Priority Entity if the ECB, within three calendar days of receipt of notification of the SRB’s intention to make a Viability Assessment, does not make its own viability assessment. The ECB provides the SRB – without delay – with any relevant information to be used by the SRB for its viability assessment, when requested; (kl) in accordance with Article 27 (1627(16) of the SRM Regulation the SRB, in agreement with the ECB, conducts the Business Reorganisation Plan Assessment of an Entity in resolution, in particular the likelihood that the plan, if implemented, will restore the long term viability of that Entity; (lm) the SRB and the ECB should reach an agreement on the assessment of a business reorganisation plan in accordance with Article 27(16) of the SRM Regulation, which the SRB will communicate to the national resolution authority concerned.; 9.1 Cooperation in on-site inspections in accordance with Article 36 of (n) the SRM Regulation 9.1.1 The Participants will cooperate SRB consults the ECB with regard to on-site inspections carried out by them the power referred to in Article 33a(1) of the extent necessary for the performance of their respective tasks under the SSM Regulation and SRM Regulation. 9.1.2 The SRB will inform the ECB of an intended on-site inspection with respect BRRD in relation to an Entity at least one week before notifying and the Entity subject ECB and SRB agree on an appropriate consultation period on a case-by-case basis prior to the on-site inspection or, if the SRB will carry out the on- site inspection without notifying the Entity concerned, as soon as possible before the start launch of the inspectionconsultation. Prior to launching the on-site inspection, the SRB will verify with the ECB whether there is any ongoing supervisory on-site inspection or on-site inspection under launching phase. 9.1.3 The ECB and the SRB may agree to participate in each other’s on-site inspections to the extent necessary for performing their respective tasks. 9.1.4 Where appropriate, the Participants keep each other informed on the results of on-site inspections carried out by them replies in a timely manner, where the findings are relevant for the performance of their respective tasks, particularly with regard to the fields covered by this MoU and to the extent reasonable and permitted by Union law.