Article 52
- Description
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Additional Tier 1 instruments
- Main content
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(a) the instruments are issued and paid up;
(b) the instruments are not purchased by any of the following:
(i) the institution or its subsidiaries;
(c) the purchase of the instruments is not funded directly or indirectly by the institution;
(d) the instruments rank below Tier 2 instruments in the event of the insolvency of the institution;
(i) the institution or its subsidiaries;
(ii) the parent undertaking of the institution or its subsidiaries;
(iii) the parent financial holding company or its subsidiaries;
(iv) the mixed activity holding company or its subsidiaries;
(v) the mixed financial holding company or its subsidiaries;
(vi) any undertaking that has close links with entities referred to in points (i) to (v);
(i) the liquidation of the institution;
(l) distributions under the instruments meet the following conditions:
(i) they are paid out of distributable items;
(iv) cancellation of distributions does not constitute an event of default of the institution;
2. EBA shall develop draft regulatory technical standards to specify all the following:
(a) the form and nature of incentives to redeem;(c) the procedures and timing for the following:
(i) determining that a trigger event has occurred;
(d) features of instruments that could hinder the recapitalisation of the institution;
(e) the use of special purpose entities for indirect issuance of own funds instruments.
EBA shall submit those draft regulatory technical standards to the Commission by 28 July 2013.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/ 2010.