Common use of THE BANK RECAPITALISATION FACILITY Clause in Contracts

THE BANK RECAPITALISATION FACILITY. (a) The purpose of this Bank Recapitalisation Facility is to increase the long term resilience of the Spanish banking sector as a whole, thus restoring its market access. This Facility permits the Beneficiary Member State to finance the recapitalisation of certain financial institutions in Spain in accordance with the MoU, and provides, in particular, that the proceeds of this Bank Recapitalisation Facility shall be used by the Beneficiary Member State solely to provide finance to FROB to permit FROB (i) to subscribe or pre-subscribe for Bank Capital Instruments issued by existing financial institutions in Spain and/or (ii) to subscribe or pre-subscribe for Bank Capital Instruments issued by AMCs which acquire the assets of viable or non-viable institutions under a bank resolution programme (each of these operations being a "recapitalisation" for the purposes of the Master Facility Agreement and in this Schedule 1). The Beneficiary Member State and FROB shall not use such proceeds for any other purpose.