INDEX

CHAPTER I General provisions.

Article 1. Object.

Article 2. Scope.

Article 3. Definitions.

Article 4. Determining circumstances of the establishment and implementation of obligations, requirements and resolution tools.

Article 5. Obligations, simplified requirements and exemptions in the performance of preparatory measures.

Article 6. Valuation of entities.

Article 7. Content of the entity valuation file.

Article 8. Provisional valuation.

Article 9. Definitive ex-post valuation.

Article 10. Assessment of the difference in treatment.

CHAPTER II. Planning for recovery and early action.

Section 1. Recovery Planning.

Article 11. Recovery plans.

Article 12. Assessment of recovery plans.

Article 13. Evaluation of group recovery plans.

Article 14. Recovery plan indicators.

Section 2. Intragroup Financial Help.

Article 15. Financial aid agreements within a group.

Article 16. Conditions for group financial assistance.

Article 17. Authorisation of the proposal for a financial assistance agreement.

Article 18. Joint decision on the group financial assistance agreement.

Article 19. Right of opposition of supervisors.

Section 3. Early Take Action.

Article 20. Coordination of the early action measures of the competent supervisor on a consolidated basis with other European Union supervisors.

Article 21. Coordination of the early action measures of the competent supervisor on an individual basis with other European Union supervisors.

Article 22. Joint decision on the coordination of early action measures.

Article 23. Appointment and removal of the interim administrator.

Article 24. Powers and duties of the interim administrator.

CHAPTER III. Preventive phase of the resolution.

Section 1. Schedule of the resolution.

Article 25. Resolution plans.

Article 26. Group resolution plans.

Article 27. Transmission of information between resolution authorities and supervisors.

Article 28. Joint decision on the group resolution plan.

Section 2. Evaluation of resolutionability.

Article 29. Assessment of resolvability.

Article 30. Joint decision on removing obstacles to the resolutionability of groups.

CHAPTER IV. Resolution.

Article 31. Notification requirements.

Article 32. Reporting obligations of the FROB.

Article 33. Replacement of the administrative body and directors-general or assimilated as a measure of resolution.

CHAPTER V. Resolution instruments.

Article 34. Requirements for the sale of the entity's business.

Article 35. Operation of the bridge entity.

Article 36. Functioning of the asset management company.

CHAPTER VI. Depreciation and conversion of capital instruments and internal recapitalisation

Article 37. Procedure for the exclusion, in whole or in part, of certain liabilities or categories of eligible liabilities.

Article 38. Determination of the minimum requirement for own funds and eligible liabilities.

Article 39. Exemption from the minimum requirement for own funds and eligible liabilities.

Article 40. Determination of the minimum requirement for own funds and eligible liabilities of the subsidiaries of the group and the parent companies of the European Union.

Article 41. Joint decision on the minimum requirement for own funds and eligible liabilities applicable at the consolidated level.

Article 42. Minimum requirement for own funds and eligible liabilities of subsidiaries at individual level and joint decision on the minimum requirement applied at the individual level to the subsidiaries of the group.

Article 43. Value of liabilities arising from derivatives.

Article 44. Plan for reorganization of activities.

Article 45. Content and execution of the activity reorganization plan.

Article 46. Conversion and amortisation of capital instruments.

Article 47. Notification and query requirements in the consolidated application.

CHAPTER VII. FROB.

Section 1. Section 1 Financing Mechanisms.

Article 48. National Resolution Fund.

Article 49. Determination of annual contributions by the FROB.

Article 50. Extraordinary contributions.

Article 51. Loans between financing mechanisms of Member States of the European Union.

Article 52. Mutualisation of the national funding mechanisms in the case of group resolution.

Article 53. Use of the deposit guarantee system in the context of the resolution.

Section 2. FROB actuations.

Article 54. Effectiveness of resolution actions in third countries.

Article 55. Restrictions on the execution of the guarantees.

CHAPTER VIII. Group resolution.

Section 1. First Principles of Group Resolution.

Article 56. General principles concerning the adoption of decisions involving more than one Member State.

Article 57. Colleges of resolution authorities.

Article 58. Composition of the colleges of resolution authorities.

Article 59. Powers and duties of the resolution authority at the group level.

Article 60. Exemption from the obligation to constitute a college of resolution authorities.

Article 61. Schools of European resolution authorities.

Section 2. Group Resolution and Group Resolution.

Article 62. Resolution of subsidiaries that are part of a group.

Article 63. Group resolution.

CHAPTER IX. Agreements with third countries.

Article 64. Agreements with third countries.

Article 65. Recognition and enforcement of third country resolution procedures.

Article 66. The right to refuse recognition or enforcement of third country resolution procedures.

Article 67. Resolution of branches of third-country entities.

Article 68. Cooperation with the authorities of third countries.

Additional disposition first. Single Resolution Mechanism and Single Resolution Fund.

Additional provision second. Financial institutions and other types of companies.

Additional provision third. Management, settlement and collection of the fee for the activities carried out by the FROB as the resolution authority.

First transient disposition. Transitional arrangements for contributions to the National Resolution Fund and the Deposit Insurance Fund.

Second transient disposition. References to the recast text of the Securities Market Law, approved by the Royal Legislative Decree 4/2015 of 23 October.

Final disposition first. Amendment of Royal Decree 2606/1996 of 20 December 1996 on deposit guarantee funds for credit institutions.

Final disposition second. Competence title.

Final disposition third. Incorporation of European Union law.

Final disposition fourth. Faculty of development.

Final disposition fifth. Entry into force.

Annex I. Information to be included in recovery plans.

Annex II. Information that preventive resolution authorities may require from entities for the elaboration and maintenance of resolution plans.

Annex III. Issues that resolution authorities should consider when assessing the resolution of an entity or group.

The regulation that has been approved in recent years to deal with those situations of potential difficulty in which credit institutions can be found and investment firms rest on a series of principles that, in the light of the characteristics and specialties of the financial system, are inspired by the recent experience generated by the process of resolution of entities.

These principles are concretized in the need to establish a preventive phase to ensure that the conditions are met so that, if an entity has to be liquidated, its resolution will be done in an orderly manner; a special, streamlined and effective procedure allowing the resolution of credit institutions and investment firms to be carried out and applied instead of the insolvency law where public interest and protection of the public interest financial stability so require; in the guarantee of proper separation between the supervisory functions and the resolution, in order to avoid the conflict of interests which the supervisory authority might incur in order to carry out the powers of resolution at the same time; and finally, as a fourth fundamental principle, to ensure that the the losses of the resolution are made by the shareholders and creditors of the entity, and not with public resources.

It is precisely these principles that inform "Directive 2014 /59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the restructuring and resolution of credit institutions". and investment service undertakings, and amending Council Directive 82/891/EEC, and Directives 2001 /24/EC, 2002 /47/EC, 2004 /25/EC, 2005 /56/EC, 2007 /36/EC, 2011 /35/EU, 2012 /30/EU and 2013 /36/EU and Regulations (EU) No 1093/2010 and (EU) number 648/2012 of the European Parliament and of the Council "as well as the" Regulation (EU) Number 806/2014 of the European Parliament and of the Council of 15 July 2014 laying down uniform rules and a uniform procedure for the resolution of credit institutions and certain investment services undertakings in the the framework for a Single Resolution Mechanism and a Single Resolution Fund and amending Regulation (EU) No 1093/2010, which, as is well known, delimits the European regulatory framework on the resolution of these entities and draw up the elements key to the Single Resolution Mechanism, one of the pillars of the Banking Union.

In order to transpose Directive 2014 /59/EU of 15 May 2014 into Spanish law, the Law 11/2015 of 18 June 2015, which is based on the principles of Law 9/2012 of 14 November 2014, was approved in the same year. the restructuring and resolution of credit institutions, and it completes this rule in those areas of European Union law that were not yet incorporated into our legal order. This royal decree concludes, on the one hand, the transposition of the said Directive and, on the other hand, it develops certain aspects of Law 11/2015, of June 18, in particular, those of an organizational nature.

The royal decree has nine chapters, 3 additional provisions, 2 transitional provisions and 5 final provisions. It also has three attachments.

Chapter I contains the general provisions, which include the criteria for modulating the application of the resolution rules and allowing for the establishment of simplified obligations and exemptions for certain entities. It is also regulated in detail in the way in which the valuation of the entities will have to be carried out prior to the adoption of any measure of resolution.

In Chapter II, the content of the recovery plans is given, and the criteria for evaluation by the competent supervisor are specified and the information requirements and duties to which the agreements are submitted are specified. financial assistance to be held by entities within a group. In addition, in respect of the resolution plans, both in this chapter and in the following are established the rules of coordination and decision-making by the supervisory authorities in the event of action at the group level.

In Chapter III, the content of the resolution plans, both individual and group, is given. In addition, the aspects to be taken into account by the preventive resolution authority are determined when assessing obstacles to the resolutionability of an entity.

Chapter IV details the procedural, coordination and information obligations that must be met in the event that an entity is subject to a resolution procedure, in order to ensure its due knowledge of the competent authorities, shareholders and creditors concerned.

Chapter V includes rules on the operation of resolution instruments that, by their level of detail, have not been covered by Law 11/2015 of June 18. In particular, the actions to be carried out by the FROB for the implementation of those instruments are specified.

In Chapter VI, certain aspects relating to the depreciation and conversion of capital instruments and internal recapitalisation, in particular those relating to the determination of the minimum own funds requirement, are regulated in Chapter VI. and eligible liabilities, the valuation of those liabilities arising from financial derivatives and the content of the business reorganisation plan.

In Chapter VII, the rules necessary to determine the conditions for the use of the financing mechanisms provided by the FROB for the financing of the resolution measures and the contribution of the contributions to the National Resolution Fund by entities.

In Chapter VIII, the resolution of a group of entities acting in a cross-border manner and the composition and powers of the colleges of resolution authorities is dealt with in a general manner, in such a way as to promote a coordinated solution of this type of particularly complex situations, given the international character of the entity.

In this chapter, as in the following chapter, the role of the FROB takes on particular relevance, not only because it will be the authority that the college of resolution authorities chair in cases where it is the resolution authority. at the level of the group, and will therefore be in charge of the functions of management and coordination of the school; but because, beyond the function that corresponds to him as president or member of the colleges of resolution authorities, Law 11/2015, of 18 of In June, the Spanish authorities attributed the role of Spanish contact and coordination authority to the the purpose of cooperating with the international authorities and the Member States of the European Union.

In Chapter IX, the relationship with third countries is regulated and the conclusion of agreements for the recognition of resolution actions is promoted, since the global character of many entities also requires a framework of cooperation involving countries that are not part of the European Union.

In the additional provisions the national legislation on resolution to which the Single Resolution Mechanism at European level is regulated; the application of the royal decree, in certain cases, to another type of legal persons who are part of the group of an entity; and the regulation of the management, settlement and collection scheme of the fee to which the entities are subject to support the administrative expenditure of the FROB is developed.

The transitional first provision sets the time limits for institutions to make the ordinary contributions during the financial year 2015 to the National Resolution Fund, and the second transitional provision provides for a scheme transitional for the referrals that are made to the recast text of the Law of the Market of Values, approved by the Royal Legislative Decree 4/2015, of October 23.

With regard to the final provisions, in the final provision, the Royal Decree 2606/1996 of 20 December 1996 on deposit guarantee funds of credit institutions is amended in order to develop the new Articles that Law 11/2015, of June 18, introduced in the Royal Decree-Law 16/2011, of October 14, for which the Deposit Guarantee Fund of Credit Entities is created. This completes the transposition of Directive 2014 /49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes.

The amendments to Royal Decree 2606/1996 of 20 December 1996 represent a change in the basis for the calculation of the contributions to the new deposit guarantee compartment of the Deposit Insurance Fund of Credit Entities. Thus, the basis for the calculation of the contributions, as set out in Directive 2014 /49/EU of 16 April 2014, will not be determined by the total volume of deposits eligible to be covered by the Fund but only by the amount (i) the Commission's Moreover, it is worth noting the reduction of the period within which the Deposit Insurance Fund of Credit Entities will have to reimburse the depositors the amounts due, which will be progressively reduced from the 20 working days Seven working days in 2024. The arrangements for the cooperation of the Deposit Insurance Fund of Credit Entities with the deposit guarantee schemes of other Member States of the European Union, in particular as regards the repayment of deposits, are also regulated. made in branches operating outside their country of origin. Under the terms and circumstances of the Fund, the use of the Fund shall be in accordance with State aid rules.

The remaining final provisions refer to the competition titles that cover the royal decree; the incorporation of the European Union's provision; the regulatory enablement and the entry into force of the rule.

Finally, the royal decree includes three annexes listing the information to be included in recovery and resolution plans; the information that preventive resolution authorities may require from entities to the development and maintenance of the resolution plans; and the issues to be assessed by the resolution authorities when addressing the resolution of an entity.

This royal decree is approved by virtue of the habilitation contained in the 16th final provision of Law 11/2015, of June 18, which enables the Government to dictate the regulatory norms necessary for the development of the provisions of that law.

In its virtue, on the proposal of the Minister of Economy and Competitiveness, with the prior approval of the Minister of Finance and Public Administrations, according to the State Council and after deliberation by the Council of Ministers in their meeting of 6 November 2015,

DISPONGO:

CHAPTER I

General provisions

Article 1. Object.

This royal decree aims to develop the provisions of Law 11/2015, of June 18, of recovery and resolution of credit institutions and investment firms.

Article 2. Scope.

This royal decree applies to the entities provided for in Article 1.2 of Law 11/2015, of June 18, excluding those provided for in Article 1.3 of that Law.

Article 3. Definitions.

The definitions provided for in Article 2 of Law 11/2015, of June 18, will apply to this royal decree.

Article 4. Determining circumstances of the establishment and implementation of obligations, requirements and resolution tools.

When establishing or applying the obligations and requirements referred to in Law 11/2015 of 18 June, or using the different instruments available to them, the competent supervisory authorities and resolution authorities shall take in consideration of the following circumstances that may be present in an entity:

a) The nature of your activities.

b) The structure of your shareholding.

c) The legal form.

d) The risk profile.

e) Size.

f) The legal status.

g) The interconnectedness of the entity with other entities or with the financial system in general.

h) The scope and complexity of your activities.

i) Membership of an institutional protection system that meets the requirements set out in Article 113.7 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on the prudential requirements of credit institutions and investment firms and amending Regulation (EU) No 648/2012 or other systems of mutual solidarity of cooperation referred to in Article 113.6 of that Regulation rules.

(j) The provision of any investment service or activity in the terms defined in point (2) of Article 4 (1) of Directive 2014 /65/EU of the European Parliament and of the Council of 15 May 2014 on the markets for financial instruments and amending Directive 2002/92/EC and Directive 2011 /61/EU.

Article 5. Obligations, simplified requirements and exemptions in the performance of preparatory measures.

1. The competent supervisory authority and supervisory authority shall take into account the following criteria for determining the obligations and simplified requirements for compliance with the preparatory measures provided for in Chapters II and III of this royal decree:

a) The unique circumstances provided for in the previous article.

b) The rules, guidelines or guidelines that are adopted on the subject at international or European level and that are incorporated or adopted in our order.

(c) The effect that the infeasibility of an institution may have on financial markets, on other entities, on financing conditions or on the economy in general, due to the circumstances provided for in the Article previous.

(d) the potential negative effects of the infeasibility of an institution and its subsequent liquidation in accordance with the procedures contained in the financial markets, in other entities, in the financing conditions or in the economy in general.

2. The simplified requirements that the supervisor and the preventive resolution authority can impose will be referred to the following elements:

(a) The content and details of the recovery and resolution plans provided for in Chapters II and III of Law 11/2015 of 18 June.

(b) The extension or reduction of the deadline by which the first recovery and resolution plans must be ready and the frequency of recovery of the plans, which may be lower than the general forecast in Law 11/2015, of 18 June.

(c) The content and details of the information required of the institutions in relation to recovery and resolution plans, pursuant to Chapters II and III of Law 11/2015 of 18 June, and developed by Articles 11 and 25 and Annexes I and II to this royal decree.

(d) The content of the assessment of the resolutionability provided for in Article 15 and 16 of Law 11/2015, of 18 June, and developed in Article 29 and Annex III of this royal decree.

3. The assessment provided for in the preceding paragraph shall be carried out after consultation, where appropriate, of the national macro-prudential authority which, where appropriate, is designated.

4. The supervisor and the competent preventive resolution authority shall regularly review their decisions on the permitted simplified obligations and, in any case, when reviewing recovery plans.

5. In addition, the competent supervisory and supervisory authority may waive the following obligations:

(a) Those relating to recovery and resolution plans to institutions affiliated to a central body that are fully or partially exempt from prudential requirements in accordance with Article 10 of the Regulation (EU) Number 575/2013 of the European Parliament and of the Council of 26 June 2013, and

b) Those relating to recovery plans, to entities belonging to an Institutional Protection System.

6. Where an exemption is granted under paragraph 5, it shall be required to require:

(a) Compliance with obligations relating to recovery and resolution plans on a consolidated basis to the central body and to the entities affiliated to it in the sense given by Article 10 of the Regulation (EU) Number 575/2013 of the European Parliament and of the Council of 26 June 2013;

b) Compliance with the obligations relating to recovery plans to the Institutional Protection System, in collaboration with each of its exempt members.

To this effect, all references to the obligations of a group relating to recovery and resolution plans shall be understood to include both the central body and the entities affiliated to it, in the sense of Article 10 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 and its subsidiaries and all references to institutions or matrices subject to supervision on a consolidated basis under the Article 57 of Law 10/2014 of 26 June, or Article 233 of the recast text of the Securities Market Act, approved by Royal Decree-Law 4/2015 of 23 October, which includes the central body.

7. The competent supervisory authority and the supervisory authority shall inform the European Banking Authority of how the provisions of Article 4.3 of Law 11/2015 of 18 June 2015 have been applied to the entities within its jurisdiction in paragraphs 2, 5 and 5. and 6 of this Article, and in Article 11.2.

Article 6. Valuation of entities.

1. Prior to the adoption of any resolution measure, an assessment of the entity's assets and liabilities shall be made by an independent expert appointed by the FROB, in accordance with Article 5 of Law 11/2015, 18 of June. Where all the requirements laid down in this Article are met, the assessment shall be considered as final.

2. Where it is not possible to make an independent valuation in accordance with the previous paragraph, the FROB may carry out a provisional valuation of the entity's assets and liabilities in accordance with Article 8.1.

3. The valuation will be used for the following purposes:

(a) Pondering the fulfilment of the conditions for the resolution or the conditions for the depreciation or conversion of capital instruments.

b) Adopt the decision on the appropriate resolution measure to be taken with respect to the entity.

(c) Deciding on the extent of the cancellation or the downward adjustment of the value of the shares or other capital instruments, and the extent of the amortisation or conversion of the capital instruments, in the event of a loss to the amortisation or conversion of capital.

d) Establish the extent of the amortisation or conversion of the eligible liabilities, in the event that the internal recapitalisation instrument is used.

e) determine which assets, rights, liabilities or shares or other capital instruments are to be transmitted, as well as the decision on the value to be paid to the institution which is the subject of the resolution or, where appropriate, to the owners of the shares or other capital instruments, where the bridge institution instrument or the asset segregation instrument is applied.

(f) Fundamenting the decision on the assets, rights, liabilities or shares or other capital instruments to be transmitted, when the instrument of sale of the business is applied, and report what is to be considered, in judgment of the FROB, as commercial conditions within the meaning of Article 26 of Law 11/2015, of 18 June.

g) Ensure the detection of any loss affecting the assets of the institution at the time the resolution instruments are applied or the competition is exercised to write down or convert the capital instruments.

4. Without prejudice to the provisions of the regulatory framework for State aid in the European Union, the valuation shall be based on prudent assumptions, including the probability of default and the extent of losses.

5. The valuation shall not cover any future contribution of extraordinary public aid to the institution, aid in the form of an emergency provision of central bank liquidity or liquidity support from the central bank on the basis of non-financial criteria. (a) in respect of guarantees, maturity and interest rates, from the moment a resolution measure is taken or the competence to write down or convert the capital instruments into question is exercised.

6. In addition, the valuation shall take into account that, if any resolution instrument is applied:

(a) The FROB and any financing mechanism used pursuant to Article 53 of Law 11/2015 of 18 June 2015 may recover any reasonable expenditure incurred by the institution under resolution, compliance with Article 25.4 of that law.

(b) The financing mechanism of the resolution may charge interest or fees in respect of any loan or guarantee provided to the institution under resolution, in accordance with Article 53.2 of Law 11/2015, of 18 June.

Article 7. Content of the entity valuation file.

1. The valuation shall be accompanied by the following information as indicated in the accounting and accounting records of the entity:

a) An updated balance sheet and a report of the entity's financial position.

b) An analysis and an estimate of the book value of assets.

(c) The list of outstanding liabilities in the balance sheet and off-balance sheet that is included in the accounting and records of the institution, indicating the corresponding claims and their ranking order in accordance with the insolvency rules.

2. Where appropriate, in order to inform the decisions referred to in Article 6.4.e) and 6.4.f), the information referred to in point (b) of the previous paragraph may be supplemented by an analysis and an estimate of the value of the assets and liabilities. of the entity, according to the market value.

3. The valuation shall include the subdivision of the creditors by categories according to the insolvency law, as well as an estimate of the treatment that would be expected for each category of shareholders and creditors if the institution was subject to a insolvency proceedings.

Such an estimate will not prevent the application of the principle set out in Article 4.1.d) of Law 11/2015 of 18 June, according to which no shareholder or creditor will bear losses exceeding those it would have incurred if the entity would be liquidated in the course of a bankruptcy procedure.

Article 8. Provisional valuation.

1. Where, due to the urgency of the circumstances of the case, it is not possible to comply with the requirements laid down in Article 7 (1) and (3) or Article 6.2 applies, the FROB shall make an interim assessment. For such purposes, the provisional valuation shall be based on the report which, if applicable, is issued by the competent supervisor in accordance with Article 5.3 of Law 11/2015 of 18 June.

2. The provisional assessment shall in any event comply with the objective set out in Article 5.1 of Law 11/2015 of 18 June 2015 and, to the extent permitted by the circumstances, the requirements of Articles 6.1, 7.1 and 7.3.

The provisional valuation shall also include the establishment of a buffer for additional losses, with adequate justification.

3. Any valuation that does not meet all the requirements laid down in Articles 6 and 7 shall be considered provisional until a final assessment has been carried out by an independent expert that fully complies with those requirements. This definitive ex-post assessment shall be made as soon as possible. It may be carried out separately from the assessment referred to in Article 10 or jointly and by the same independent person, but shall constitute different assessments.

Article 9. Definitive ex-post valuation.

1. The definitive ex-post valuation referred to in paragraph 3 of the previous Article shall have the following

:

(a) Ensure that any loss affecting the assets of the entity is ascertained in its accounts.

b) Inform the decision to modify the rights of the creditors or to increase the value of the compensation paid, in accordance with the following paragraph.

2. If the estimate of the net value of the assets of the institution carried out in the definitive ex-post valuation is higher than the estimate of the net value of the assets of the institution made in the provisional valuation, the FROB you can:

(a) exercise its competence to increase the value of the rights of creditors or holders of relevant capital instruments that have been amortised under the internal recapitalisation instrument;

(b) to instruct a bridge institution or an asset management entity to carry out a subsequent credit for the difference in value, in respect of assets, rights or liabilities, to the institution under resolution, or, as the case may be, in respect of shares or instruments of capital, to the owners of shares and other capital instruments.

3. By way of derogation from Article 6.1, the provisional valuation carried out in accordance with Article 8.1 and 2 shall allow the FROB to take the necessary measures, including the assumption of control of a the unviable entity or the exercise of the powers of amortisation or conversion of capital instruments.

4. The valuation shall form an integral part of the decision to apply a resolution instrument or to exercise a resolution competence, as well as the decision to exercise the powers of amortisation or conversion of capital instruments.

Article 10. Assessment of the difference in treatment.

1. For the purposes of assessing whether shareholders and creditors would have received better treatment if the institution under resolution had been applied with a bankruptcy settlement procedure, the FROB would take the necessary steps to ensure that a assessment by an independent expert once the resolution actions have been taken. This valuation shall be different from the valuation carried out in accordance with Article 5 of Law 11/2015 of 18 June.

2. The assessment provided for in the preceding paragraph shall determine the following:

(a) The treatment that the shareholders and creditors, or the deposit guarantee schemes in question, would have received if the institution under resolution had been subject to a bankruptcy settlement procedure at the time that the decision referred to in Article 21 of Law 11/2015 of 18 June 2015 was adopted.

b) The treatment that the shareholders and creditors have effectively received in the resolution of the institution under resolution.

(c) The existence, where appropriate, of differences between the treatment referred to in point (a) and the treatment referred to in point (b)

3. The assessment shall be carried out in accordance with the following premises:

(a) From the assumption that the institution to which the resolution actions have been applied would have been settled in the context of the insolvency proceedings at the time the decision referred to in the Article was adopted 21 of Law 11/2015, of June 18.

b) Suppose that the resolution actions were not performed.

c) Discard any grant of extraordinary public financial assistance to the institution under resolution.

4. If the valuation determines that the shareholders and creditors, or the Deposit Insurance Fund, have incurred losses in excess of those they would have suffered if the institution had been liquidated in the course of a bankruptcy procedure, they shall have the right to obtain the payment of the difference from the financing mechanisms provided for in Article 53 of Law 11/2015 of 18 June.

CHAPTER II

Planning for recovery and early action

Section 1. Recovery Planning

Article 11. Recovery plans.

1. The recovery plans provided for in Article 6 of Law 11/2015 of 18 June 2015 shall contain at least the following information:

a) Different scenarios of financial and macroeconomic instability that affect both the financial system as a whole and the entity or group.

Also, group recovery plans will determine, for each scenario, whether there are obstacles to the implementation of recovery measures and whether there are impediments to the rapid transmission of own funds. or repayment of liabilities or assets within the group.

(b) Without prejudice to the simplified obligations established in accordance with Article 5, the information listed in Annex I.

(c) The measures to be taken by the institution when the conditions for early action referred to in Article 8 of Law 11/2015 of 18 June 2015 are met. In addition, group recovery plans should include provisions to ensure the coordination and consistency of the measures to be taken at the level of the parent and the measures to be taken at the level of the subsidiaries and, where the relevant branches.

d) The appropriate conditions and procedures to ensure the correct and timely implementation of recovery measures, as well as a wide range of options for such recovery.

(e) Intragroup Financial Assistance Agreements that have been concluded in accordance with Section 2.

(f) An analysis of the conditions under which the institution could make use of the credit facilities of the central banks. Such analysis shall identify the assets that may qualify as collateral.

Recovery plans will not be able to assume access to public financial support in any case.

2. In accordance with Article 13, the competent supervisor may require the subsidiaries of a group to draw up and submit individual recovery plans.

In any case, the drawing up of individual recovery plans for credit institutions subject to the direct supervision of the European Central Bank under Article 6.4 of Regulation (EU) No 64/2013 shall be mandatory. Council Regulation (EC) No 1024/2013 of 15 October 2013 conferring on the European Central Bank specific tasks in respect of policies relating to the prudential supervision of credit institutions.

3. Subject to compliance with the confidentiality requirements laid down in Article 59 of Law 11/2015 of 18 June, the competent supervisor on a consolidated basis shall forward the group's recovery plans to:

(a) Competent supervisors who are part of the college of supervisors or with whom a coordination and cooperation agreement has been reached.

b) the competent supervisors of the Member States of the European Union in which significant branches are established, in respect of matters affecting those branches.

c) The competent resolution authorities at the group level.

d) The competent resolution authorities of the subsidiaries.

Article 12. Assessment of recovery plans.

1. The competent supervisor shall assess the recovery plans of the institutions and, in particular, the extent to which they satisfy the requirements laid down in Article 6 of Law 11/2015 of 18 June 2015 and Article 11 of this Royal Decree, as well as the following criteria:

(a) The implementation of the plan should provide reasonable possibilities to maintain or restore the viability and financial position of the institution or group, taking into account the preparatory measures that the institution has taken or you plan to adopt.

(b) The plan and the specific options to be adopted should be able to be applied quickly and effectively in the event of financial instability and avoid, as far as possible, any significant adverse effects on the system. financial, even in scenarios that lead other entities to implement recovery plans in the same period.

In carrying out this assessment, the competent supervisor shall consider the adequacy of the institution's capital structure and funding to the level of complexity of the organisational structure and the risk profile of the institution. entity.

2. The assessment referred to in the previous paragraph shall be carried out within a maximum of six months after the institution submits the recovery plan.

To carry out the assessment, the competent supervisor shall forward the recovery plans to the competent resolution authorities and shall consult the supervisors of the Member States of the European Union where they are established significant branches of the entity in respect of issues affecting such branches.

3. If, after the assessment, the competent supervisor concludes that there are significant deficiencies in the recovery plan, or impediments to its implementation, it shall communicate the outcome to the group or the parent of the group and require it to submit a plan. reviewed within two months. That period may be extended by one month if the institution so requests and the competent supervisor considers it necessary.

Before you ask an entity to resubmit a recovery plan, the competent supervisor will give you the opportunity to express your opinion on that request.

If the competent supervisor considers that the deficiencies and impediments have not been adequately remedied in the revised recovery plan, it may instruct the institution to introduce specific amendments to the recovery plan. plan.

4. If the institution does not present a revised recovery plan or if the competent supervisor determines that the revised plan does not adequately address the deficiencies identified in the initial assessment and it is not possible to remedy those deficiencies by specific amendments to the plan, the competent supervisor shall require the institution to identify within a reasonable time the changes it may make to its activity to remedy the deficiencies of the plan or the impediments to its activity. application.

5. If the entity does not identify changes in its activity within the time limit set by the competent supervisor or if the competent supervisor concludes that the identified changes are insufficient to address the deficiencies of the plan or the impediments to its implementation, the competent supervisor shall require the entity of the measures provided for in Article 6.3 of Law 11/2015 of 18 June 2015, without prejudice to Articles 68 and 69 of Law 10/2014 of 26 June and Articles 260 and 261 of the Recast text of the Securities Market Act

Article 13. Evaluation of group recovery plans.

1. For the assessment of the group recovery plans, the competent supervisor on a consolidated basis shall consult the supervisors of the college of supervisors and the supervisors of the significant branches in respect of the issues affecting them. to those branches.

Once this consultation has been carried out, it will assess, together with the subsidiaries ' supervisors, the group recovery plan and, in particular, the extent to which they satisfy the requirements and criteria set out in Article 6 of the Law 11/2015, of June 18, and in this section.

The assessment shall be carried out in accordance with the procedure laid down in Article 12 and taking into account the possible impact of recovery measures in all Member States of the European Union in which the group.

2. The competent supervisor, either on a consolidated basis or on an individual basis, shall endeavour to reach a joint decision with the other supervisors on:

a) The evaluation of the group recovery plan.

b) The need for an individualized recovery plan to be developed for entities that are part of the group.

(c) The application of the measures referred to in Article 12.3 to 5.

The competent supervisor shall endeavour to reach the joint decision within four months of the date on which the consolidating supervisor transmits the group recovery plan.

The competent supervisor, in accordance with Article 31.c) of Regulation (EU) No 1093/2010 of 24 November 2010, may request the mediation of the European Banking Authority to reach the joint decision.

3. If, within the time limit set in the previous paragraph, a joint decision on the examination and assessment of the group recovery plan or on other measures which the parent is required to adopt in accordance with the Article, cannot be reached. 12.3 to 5, the competent supervisor, where on a consolidated basis, shall take its own decision on such matters.

In addition, in the absence of a joint decision on the need for an individual recovery plan to be drawn up for certain entities or on the application to subsidiaries of the measures provided for in Article 12 (3) to (5), the competent supervisor, in the case of a subsidiary, may take its own decision on such matters.

The decisions referred to in this paragraph shall take into account the observations and reservations expressed by the other supervisors.

4. By way of derogation from the previous paragraph, if during the four-month period provided for in paragraph 2, and before the adoption of a joint decision, a case has been referred by one of the supervisors to the assessment of the plans of the recovery or on the application of the measures provided for in Article 6 (3) (a), (b) or (d) of Law 11/2015, of 18 June, to the European Banking Authority, the competent supervisor shall defer its decision pending the decision of the Banking Authority European Commission may adopt in accordance with Article 19 (3) of Regulation (EU) No 1093/2010, of 24 November 2010. In such cases, the four-month period shall be considered as the period of conciliation within the meaning of that Regulation.

The competent supervisor shall also take its decision in accordance with the decision of the European Banking Authority. However, in the absence of a decision of the European Banking Authority within one month, the decision of the competent supervisor shall apply.

5. Without prejudice to paragraph 3, the competent supervisor may adopt with the other supervisors of the group among which there is no disagreement a joint decision on the group recovery plan applicable to the entities that are find under their jurisdiction.

6. The competent supervisor shall recognise and apply the decisions reached by other supervisors in which he has not been involved.

7. The competent supervisor shall communicate the decisions taken pursuant to this Article to the parent or to the affected entities of the group, as appropriate, and to the other supervisors.

Article 14. Recovery plan indicators.

1. In accordance with Article 6.2 of Law 11/2015 of 18 June, institutions shall include in their recovery plans a set of indicators to determine the points on which the actions provided for in the plan may be undertaken. These indicators should be examined by the competent supervisor during the evaluation process of the recovery plans.

2. The indicators may be of a qualitative or quantitative nature and shall relate to the financial situation of the institution. For such purposes, institutions shall at least have capital, liquidity and quality indicators and return on assets as well as macroeconomic, market or other indicators that are relevant to the assessment of the situation. entity's financial.

However, the competent supervisor may waive the obligation to have any of the above indicators to those investment firms for which they are not relevant because of the nature, scale and complexity of their activities.

3. The indicators should also be easy to monitor both for the entity and for the competent supervisor. For such purposes, the competent supervisor shall require entities to establish appropriate mechanisms for regular monitoring of the indicators.

4. By way of derogation from paragraph 1, the institution's administrative body

:

(a) To refrain from taking the actions provided for in the recovery plan if they do not consider them appropriate under the circumstances.

b) Take the actions envisaged in the recovery plan without the need for the value of the relevant indicator to be reached.

Any decision to take an action provided for in the recovery plan or to refrain from taking such action shall be notified without delay to the competent supervisor.

Section 2. Intragroup Financial Help

Article 15. Financial aid agreements within a group.

1. The group financial assistance agreements provided for in Article 7 of Law 11/2015 of 18 June 2015

:

(a) Affect one or more subsidiaries of the group and establish aid agreements between subsidiaries and parent companies as well as between the subsidiaries themselves.

b) Establish financial support mechanisms in the form of loan, guarantee or supply of assets for use as collateral.

(c) Include reciprocal agreements under which a receiving entity may, in turn, provide financial support to the entity that lent it to it.

2. The group financial assistance agreement shall specify the criteria for the calculation of the compensation for any transaction carried out in the framework of the agreement. Such criteria shall include the requirement that the compensation be fixed at the time of the provision of the financial assistance.

3. In any case, the agreement must respect the following principles:

(a) Each party to the agreement must freely subscribe to it.

(b) In entering into the agreement and in determining the compensation for the provision of financial assistance, each party shall defend its own interests. Such interests may include the benefits, direct or indirect, which may be reported by the benefit of the aid.

(c) The receiving party of financial assistance should have provided the aid party with all relevant information before the compensation is determined and the decision is taken to provide the aid effectively.

(d) In determining the compensation for the provision of financial assistance, account may be taken of the information held by the party providing the aid for its membership of the same group as the receiving party of the aid, Although this information is not available on the market.

(e) It shall not be mandatory for the criteria for the calculation of compensation for the provision of financial assistance to take into account any temporary impact on market prices which may arise from circumstances. external to the group.

4. Group financial assistance agreements shall be authorised by the competent supervisor before they are subject to the approval of the shareholders ' meeting of each entity involved. However, they shall be valid only if their shareholders have authorised the management body of that institution to take the decision that the institution provides or receives financial assistance under the terms of the agreement and those established in the this section and if the shareholders ' authorization has not been revoked.

The management body of each entity that forms part of the agreement shall inform the shareholders of the development of the agreement and the implementation of any decision taken in the framework of the agreement.

5. The entities in the group shall make public the financial assistance agreements entered into. Such publication shall include a description of the general characteristics of the agreement and the names of the participating entities.

The information shall be updated at least annually and shall be subject to the general principles of disclosure provided for in Articles 431 to 434 of Regulation (EU) No 575/2013 of the European Parliament and of the European Parliament. Council, of 26 June 2013.

Article 16. Conditions for group financial assistance.

An entity can only provide group financial assistance if the following conditions are met:

(a) That there is a reasonable probability that the aid provided will contribute significantly to resolving the financial difficulties of the receiving entity.

(b) The purpose of the provision of financial assistance is to ensure the financial stability of the group as a whole or of a particular entity and to the interests of the entity providing the aid.

(c) Financial assistance is provided under conditions, including compensation, in accordance with Article 15.3.

(d) That, in the light of the information available to the administrative body of the institution providing the financial assistance, there is a reasonable likelihood that the receiving institution will pay the aid. In particular, if the aid consists of a loan or a form of guarantee or guarantee, the receiving entity must be in a position to repay the loan or debt arising from the execution of the guarantee or guarantee.

e) that the provision of financial assistance does not jeopardise the liquidity or the solvency of the entity that provides it.

(f) The provision of financial assistance does not create a threat to financial stability in the Member State of the European Union of the entity providing the aid.

(g) Unless authorised by the competent supervisor on an individual basis, the entity providing the aid shall not be in breach at the time of the benefit or as a result of the provision of the aid:

1. The requirements of the credit institutions ' solvency rules or of Title VIII of the recast of the Securities Market Act, in matters of capital, liquidity or high risks.

2. º Any additional own resources requirement imposed pursuant to Article 69 of Law 10/2014 of June 26, or of Article 261 of the recast text of the Securities Market Act.

h) That the provision of financial assistance does not jeopardise the resolutionability of the entity that provides it.

Article 17. Authorisation of the proposal for a financial assistance agreement.

1. The parent of the group shall submit to the competent supervisor on a consolidated basis an application for authorisation of any proposal for a group financial assistance agreement. The request shall contain the text of the proposed agreement and the entities of the group that are proposed as parties.

2. The competent supervisor on a consolidated basis shall, without delay, forward the request to the supervisors of each of the subsidiaries seeking to form part of the agreement with the aim of reaching a joint decision.

3. The competent supervisor on a consolidated basis shall only authorise the proposed agreement if it fulfils the conditions for granting the financial assistance provided for in Article 16. The authorisation or the prohibition to carry out the agreement shall be processed in accordance with the procedure laid down in the following

.

4. The competent supervisor shall communicate to the competent resolution authorities the group financial assistance agreements which it has approved and any amendments thereto.

Article 18. Joint decision on the group financial assistance agreement.

1. The competent supervisor, on a consolidated basis or on an individual basis, shall endeavour to reach a joint decision on the consistency of the terms of the proposal in accordance with the conditions for granting financial assistance, established in Article 16. Such a joint decision shall take into account the possible impact of the implementation of the agreement in all the Member States of the European Union in which the group operates.

2. The joint decision shall be taken within four months of the date of receipt of the application for authorisation of the financial assistance agreement by the consolidating supervisor. The joint decision shall be set out in a document containing the fully reasoned decision and shall be notified by the competent supervisor on a consolidated basis to the applicant.

The competent supervisor may ask the European Banking Authority for assistance in reaching an agreement in accordance with Article 31 of Regulation (EU) No 1093/2010 of 24 November 2010.

3. If the supervisors do not reach a joint decision within four months, the competent supervisor on a consolidated basis shall take his own decision on the application.

The decision shall be made in a document containing the detailed statement of reasons for the decision and the views and reservations expressed by the other competent supervisors during the four-month period.

The competent supervisor on a consolidated basis shall notify the applicant and the other competent supervisors of their decision.

4. However, if during the four-month period, and before the adoption of a joint decision, any of the competent supervisors of the subsidiaries involved in the financial assistance agreement referred the matter to the Authority. European Bank in accordance with Article 19 of Regulation (EU) No 1093/2010 of 24 November 2010, the competent supervisor on a consolidated basis shall defer its decision pending the decision which the European Banking Authority may take in accordance with Article 19 (3) of that Regulation. The period of four months shall be considered as the period for conciliation within the meaning of that Regulation.

The competent supervisor on a consolidated basis shall also take its decision in accordance with the decision of the European Banking Authority. However, in the absence of a decision of the European Banking Authority within one month, the consolidating supervisor may take its own decision.

Article 19. Right of opposition of supervisors.

1. Before providing support under a group financial assistance agreement, the management body of the entity that intends to provide the aid shall inform the supervisor on an individual basis, the consolidating supervisor, the supervisor, the supervisory authority and the supervisory authority. of the recipient of the aid and the European Banking Authority.

The communication provided for in the preceding paragraph shall include the reasoned decision of the administrative body in accordance with Article 16 and the details of the proposed financial assistance, as well as a copy of the aid agreement. group financial.

2. Within a period of five working days from the date of receipt of the complete communication in accordance with the provisions of the previous paragraph, the competent supervisor on an individual basis of the institution providing financial assistance may prohibit or restrict the grant of aid if it considers that the conditions of Article 16 are not met. In such cases it shall justify its decision and immediately communicate it to the consolidating supervisor, to the competent supervisor of the entity receiving the aid and to the European Banking Authority.

The competent supervisor on a consolidated basis shall inform the other members of the college of supervisors and the members of the college of resolution authorities as soon as possible.

3. If the competent supervisor, on a consolidated basis or on an individual basis of the entity receiving the aid, has objections to the decision to prohibit or restrict financial assistance, he may refer the matter to the Authority. European Bank and request its assistance in accordance with Article 31 of Regulation (EU) No 1093/2010 of 24 November 2010 within two days of receipt of the communication from the competent supervisor on the basis of the consolidated.

4. Where the competent supervisor does not prohibit or restrict financial assistance within the time limit referred to in paragraph 2, or has agreed to grant the aid before the end of that period, the institution may provide the aid in accordance with the conditions communicated to the competent supervisor.

5. The decision of the institution's administrative body to provide financial assistance after the authorisation has been granted shall be sent to the supervisor on an individual basis, to the consolidating supervisor, to the supervisor of the institution receiving the aid. financial and the European Banking Authority.

The competent supervisor on a consolidated basis shall immediately inform the other members of the college of supervisors and the members of the college of resolution authorities.

6. Where the competent supervisor restricts or prohibits group financial assistance and the group's recovery plan refers to this aid, the competent supervisor on an individual basis of the entity whose aid is restricted or prohibited may ask the competent supervisor on a consolidated basis to undertake a further assessment of the group recovery plan or, if a recovery plan has been drawn up on an individual basis, to request the institution to submit a plan of recovery. revised recovery.

Section 3. Early Take Action

Article 20. Coordination of the early action measures of the competent supervisor on a consolidated basis with other European Union supervisors.

1. The competent supervisor on a consolidated basis shall communicate to the members of the college of supervisors that he has declared the situation of early action of a parent institution initiated and shall consult with the members of the college the opportunity of the implementation of the measures provided for in Article 9 of Law 11/2015, of 18 June.

2. After the communication and consultation provided for in the previous paragraph, the competent supervisor on a consolidated basis shall decide whether to apply an early action measure to the group's parent.

When taking its decision, the competent supervisor on a consolidated basis shall take into account the impact of the measures on the group entities established in other Member States of the European Union.

The decision will be communicated to the other supervisors of the college of supervisors, the European Banking Authority and the group's parent.

3. Where the supervisor of a subsidiary of the group informs the competent supervisor on a consolidated basis that he has initiated the situation of early action of a subsidiary, the competent supervisor on a consolidated basis may, within a maximum period of time, assess three days, the impact that the imposition of early action measures could have on the rest of the group.

Article 21. Coordination of the early action measures of the competent supervisor on an individual basis with other European Union supervisors.

1. The competent supervisor, where the supervisor is on an individual basis of the subsidiary of a group, shall communicate to the European Banking Authority which has declared the situation of early action of the subsidiary initiated. In addition, it will consult with the consolidating supervisor on the opportunity for the implementation of early action measures.

2. After the communication and the consultation, the competent supervisor shall decide whether to apply any early action measures. The decision shall take into account the assessment of the impact of the measures carried out by the competent supervisor on a consolidated basis.

3. The competent supervisor shall communicate the decision to the consolidating supervisor, to the other supervisors of the supervisory college, to the European Banking Authority and to the subsidiary of the group to which the early action measures are to be applied.

Article 22. Joint decision on the coordination of early action measures.

1. Where more than one supervisor proposes to apply early action measures to more than one entity in the group, the competent supervisor shall examine with the other supervisors whether the coordination of early action measures is more appropriate.

2. The outcome of the examination provided for in the previous paragraph shall be translated into a joint decision of the competent supervisor on a consolidated basis with the other supervisors, to be reached within a maximum of five days from the date of communication by the competent supervisor. part of a supervisor of compliance with the conditions for early action.

3. The competent supervisor may ask the European Banking Authority for assistance in reaching an agreement in accordance with Article 31 of Regulation (EU) No 1093/2010 of 24 November 2010.

4. If a joint decision cannot be reached within the five-day period provided for in paragraph 2, the competent supervisor may take his own decision on the early action measures to be applied.

This decision shall take into account the observations and reservations expressed by the other supervisors during the consultation period referred to in Articles 20 and 21 or during the five-day period to reach the decision.

5. By way of derogation from the preceding paragraph, the competent supervisor shall defer his decision when a further supervisor refers an issue to the European Banking Authority in accordance with Article 19 (3) of Regulation (EU) No 1093/2010 of 24 July 2010. November 2010, and the following conditions are met:

(a) The matter referred shall refer to the decision to impose early action measures as referred to in Articles 9.2.a) of Law 11/2015 of 18 June on points, 4, 10, 11 and 19 of Annex I, or on the Article 9 (2) (e) or (g) of that law.

(b) The referral of the matter to the European Banking Authority must be made before the consultation period referred to in Articles 20 and 21 or at the end of the five-day period for a joint decision to be reached. refers to paragraph 2.

(c) The joint decision referred to in paragraph 2 may not have been reached in advance.

In such cases, the competent supervisor shall take its decision in accordance with the decision taken by the European Banking Authority in accordance with Article 19.3 of Regulation (EU) No 1093/2010 of 24 November 2010. However, if the European Banking Authority does not decide within three days of the referral of the matter, the competent supervisor may take its own decision.

6. The competent supervisor may refer a matter to the European Banking Authority and request assistance when:

a) Be in disagreement with the decision communicated by another supervisor on compliance with the conditions to impose early action measures on a group or entity.

(b) It is not possible to reach a joint decision on the imposition of the early action measures referred to in Article 9.2.a) of Law 11/2015 of 18 June on points, 4, 10, 11 and 19 of Annex I, or in Article 9.2.e) or (g) of that law.

7. The competent supervisor shall communicate the decisions taken pursuant to this Article to the parent of the group, where it is the competent supervisor on a consolidated basis, or to the subsidiaries, where the supervisor is on an individual basis.

Article 23. Appointment and removal of the interim administrator.

1. In accordance with Articles 9.2.j) and 10 of Law 11/2015 of 18 June, where the competent supervisor considers the measures for early action referred to in Article 9.2.a (a) to (i) of that law to be insufficient to resolve the situation the institution's difficulty may be agreed by the institution or the temporary replacement of its administrative body or by one or more of its members.

Such an agreement, of an executive nature from the moment it is issued, will be immediately published in the "Official Gazette of the State". The publication in the "Official State Gazette" will determine the effectiveness of the agreement against third parties.

2. All decisions relating to the replacement of the administrative body, directors-general or similar directors, with the determination of their powers and their form of action, and limitations, shall be the subject of registration in the Trade Register.

3. Without prejudice to the provisions of Law 11/2015 of 18 June, and in this royal decree, the appointment of the interim administrator shall not prejudice the rights of the shareholders of the entity.

4. The provisional administrators must comply with the requirements of suitability provided for in Articles 30 to 32 of Royal Decree 84/2015 of 13 February 2015, implementing Law 10/2014 of 26 June, of management, supervision and solvency. of credit institutions, in the case of credit institutions, and in Articles 14a to 14c of Royal Decree 217/2008 of 15 February 2008 on the legal status of investment firms and other entities providing credit institutions investment services and for which the regulation of Law 35/2003, of 4 November, is partially amended, collective investment institutions, approved by Royal Decree 1309/2005 of 4 November 2005, in the case of investment firms.

5. The competent supervisor may remove the provisional administrator at any time and for any reason.

Article 24. Powers and duties of the interim administrator.

1. The competent supervisor shall detail the powers and functions of the provisional administrator at the time of designation or when any change in the conditions of designation occurs. For these purposes, the agreement shall include at least the following content:

(a) The powers of the interim administrator, which shall be proportionate to the circumstances of the institution and may comprise some or all of the powers of the institution's administrative body, including the power of perform administrative functions.

b) The functions of the interim administrator, as well as the possible limits to them. Such functions may include:

1. The determination of the entity's financial situation.

2. The management of the activity or part of the entity's activity with a view to preserving or restoring the financial situation of the entity.

3. The adoption of measures aimed at restoring the sound and prudent management of the entity's activity.

(c) If the interim administrator has been appointed to work temporarily with the administrative body, its duties, duties and powers, as well as the decisions of the administrative body of the entity to be consulted or approved by the interim administrator.

d) The actions of the interim administrator to be submitted for approval by the competent supervisor. Notwithstanding the foregoing, the provisional administrator may not convene the general meeting of shareholders of the institution and set the agenda items without the approval of the competent supervisor.

2. In addition, the competent supervisor may require the interim administrator, at the intervals deemed appropriate and at the end of the term of office, to produce reports on the financial situation of the institution and on its performance during the course of your command.

CHAPTER III

Preventive phase of resolution

Section 1. Planning of the resolution

Article 25. Resolution plans.

1. The resolution plan provided for in Article 13 of Law 11/2015 of 18 June 2015 shall contain the resolution tools and powers applicable to the entity in the light of the different stress scenarios that may trigger the infeasibility.

For such purposes, without prejudice to the simplified obligations that may be established for certain entities pursuant to Article 4 of Law 11/2015, of June 18, and Article 5 of this royal decree, the plan shall include, quantified manner where possible:

a) A summary of the fundamental elements of the plan.

b) A summary of the most important changes that have occurred in the entity since the last update of the entity's resolvability information.

(c) A demonstration of how the essential functions and main branches of other functions could be legally and economically separated, as far as is necessary to ensure their continuity in the event of infeasibility of the entity.

d) An estimate of the execution time for each of the key elements of the plan.

e) A detailed description of the assessment of the resolvability carried out in accordance with Article 15 of Law 11/2015, of 18 June.

(f) A description of the measures necessary to address or remove obstacles to the resolutionability that have been detected in the assessment carried out in accordance with Article 15 of Law 11/2015 of 18 June.

g) A description of the processes to determine the value and the possibility of the sale of the entity's assets, including the essential branches of activity.

h) A detailed description of the mechanisms established to ensure that the information required of the entities is up to date and at the disposal of the competent resolution and supervisory authorities at any time.

i) An analysis of the conditions in which the institution could access the ordinary liquidity operations of central banks and the assets that could be provided as collateral.

j) An explanation of how the resolution options will be funded without the mechanisms referred to in Article 13.2.a) to c) of Law 11/2015, of June 18.

k) A detailed description of the different resolution strategies that can be applied according to the different scenarios available and the time frames available.

l) A description of the essential interdependencies and interdependencies.

m) A description of the options to protect access rights to payment systems, compensation and other infrastructure and, where possible, an indication of the possibility of moving the positions of the clients.

n) An analysis of the impact of the plan on the entity's employees, including an assessment of the associated costs and a description of the measures envisaged to establish consultation procedures with the staff during the resolution process, taking into account, where appropriate, the systems for dialogue with the social partners.

n) A communication plan with the media and with the public.

or) The minimum requirements for own funds and eligible liabilities required in accordance with Article 44 of Law 11/2015 of 18 June, and, if applicable, a timetable for achieving them.

p) The minimum requirements for own funds and contractual internal recapitalisation instruments in accordance with Article 44 of Law 11/2015 of 18 June, and, if applicable, the timetable for achieving them.

q) A description of the essential operations and systems to maintain the continued operation of the entity's operational processes.

r) Where applicable, any opinion expressed by the entity in relation to the resolution plan.

The preventive resolution authority shall communicate to the affected entity the information referred to in point (a)

2. For the purposes of drawing up the resolution plan, the preventive resolution authority may require the institution, inter alia, for the information specified in Annex II. If the competent supervisor has the information required, it may be provided directly to the preventive resolution authority.

3. In accordance with Article 13.2 of Law 11/2015, of June 18, the preventive resolution authority may require the entities to assist you in the drafting and updating of the plan.

4. The preventive resolution authority shall transmit the resolution plans and the changes made to the resolution plans to the competent supervisors and to the FROB.

Article 26. Group resolution plans.

1. The group resolution plan provided for in Article 14.1 of Law 11/2015 of 18 June 2015 shall include the elements referred to in paragraph 1 of the previous Article and shall also:

a) Set the resolution actions that should be applied to the entities in the group.

b) Examine to what extent resolution tools and powers can be applied and exercised in a coordinated manner in group entities located in the European Union as well as potential obstacles to a resolution coordinated. In particular, measures shall be examined to facilitate the purchase of the group, entities of the group or specific branches of activity by a third party.

(c) Where a group includes entities incorporated in non-EU Member States, it shall establish appropriate arrangements for cooperation and coordination with the authorities concerned in the light of the consequences for the resolution within the European Union.

d) Determine the necessary measures to facilitate group resolution when the resolution conditions are met. Such measures may include the legal and economic separation of specific functions or branches of activity.

e) to determine the financing conditions for the group resolution actions, taking into account the equitable and balanced principles of burden sharing between sources of financing located in different Member States; the European Union. In particular, these principles should be based on the criteria set out in Article 52.3, and should consider the impact on the financial stability of all the Member States of the European Union concerned.

f) Establish any additional measure that the FROB, when the resolution authority of the group is, intends to adopt in relation to the resolution of the group.

In any case, the group resolution plans may not have a disproportionate impact on any Member State of the European Union.

2. For the purposes of drawing up the group resolution plan, the parent shall submit to the competent preventive resolution authority the information referred to in Article 25.2 relating to the parent itself and, to the extent required by the competent authority of the preventive resolution, to each of the companies in the group.

The competent preventive resolution authority may also use the information transmitted by the entities or provided by the competent supervisor pursuant to Article 25.2.

3. The preventive resolution authority shall transmit the resolution plans and the changes made to them to the relevant competent supervisors and to the FROB.

Article 27. Transmission of information between resolution authorities and supervisors.

1. The preventive resolution authority at the group level, provided that the confidentiality requirements required by Law 11/2015 of 18 June 2015 are met, shall transmit the information provided by the parent in accordance with Article 26.3 to:

a) To the FROB, as the executive resolution authority.

(b) The European Banking Authority.

c) The resolution authorities of the subsidiaries.

(d) the resolution authorities of jurisdictions in which significant branches are established, in respect of issues affecting such branches.

e) Supervisors with whom coordination and cooperation agreements exist to exercise supervision on a consolidated basis of an entity or are part of a college of supervisors.

(f) The resolution authorities of the Member States of the European Union where the financial holding companies, mixed financial holding companies or mixed group holding companies are established.

2. The information provided by the preventive resolution authority, where the preventive resolution authority at the group level, to the subjects referred to in points (c), (d) and (e) of the preceding paragraph shall include at least all information relevant to the significant subsidiary or branch.

3. The information provided by the preventive resolution authority, where the group-level preventive resolution authority is to the European Banking Authority, shall include all the information it may need to carry out the tasks. which attributes the European legislation to the planning of the group resolution.

4. The preventive resolution authority at the group level, if deemed appropriate, and provided that the confidentiality requirements laid down in Article 58.2 of Law 11/2015 of 18 June 2015 are respected, may involve in the preparation and maintenance of the group resolution plans to the resolution authorities of non-EU Member States where the group has established significant branches, subsidiaries or financial holding companies.

5. By way of derogation from the above paragraphs, the group-level preventive resolution authority shall not be required to transmit the information relating to subsidiaries of non-EU Member States if the competent supervisor or the the resolution authority of these States would not have given their consent.

Article 28. Joint decision on the group resolution plan.

1. In accordance with Article 14 of Law 11/2015 of 18 June 2015, the group resolution plan will be translated into a joint decision of the preventive resolution authority with the resolution authorities of the subsidiaries of the group and, in the event of the preventive resolution authority acts as the preventive resolution authority of a subsidiary, with the group-level resolution authority.

This joint decision shall be taken within four months of the date on which the information provided for in Article 27 by the group-level resolution authority is transmitted.

The preventive resolution authority, in accordance with Article 31.c) of Regulation (EU) No 1093/2010 of 24 November 2010, may request the mediation of the European Banking Authority to reach the decision

2. If the resolution authorities fail to reach the joint decision within the four-month period provided for in the previous paragraph, the preventive resolution authority, where the group-level preventive resolution authority is the authority, shall adopt its own decision. decision on the group resolution plan or, where the resolution authority of a subsidiary is concerned, shall adopt its own decision and draw up and keep up to date a resolution plan for the entities established in Spain.

These decisions shall be fully reasoned and shall take into account the views and reservations expressed by the other resolution authorities and supervisors. In addition, in cases where the preventive resolution authority is the resolution authority of a subsidiary, the decision shall state the reasons for the disagreement with the proposed group resolution plan.

The preventive resolution authority shall communicate its decisions to the entities concerned and to the members of the college of resolution authorities.

3. By way of derogation from the preceding paragraph, if during the four-month period and before the adoption of the joint decision, a resolution authority refers the matter to the European Banking Authority in accordance with Article 19 of the Regulation (EU) No 1093/2010 of 24 November 2010 the preventive resolution authority shall defer its decision pending the decision which the European Banking Authority may take pursuant to Article 19 (3) of that Regulation. In such cases, the four-month period shall be considered as the period of conciliation within the meaning of that Regulation.

The preventive resolution authority shall also take its decision in accordance with the decision of the European Banking Authority. In the absence of a decision of the European Banking Authority within one month, the decision of the competent preventive resolution authority shall apply.

4. Without prejudice to paragraph 2, the preventive resolution authority may adopt with the other resolution authorities among which there is no disagreement a joint decision on the group resolution plan applicable to the entities of the group that are under their jurisdiction.

5. Joint decisions referred to in paragraphs 1 and 4 as well as decisions taken under Articles 3 and 4 shall be recognised as final decisions and shall be implemented by the resolution authorities concerned.

6. In the absence of a joint decision during the four-month period provided for in paragraph 3, the preventive resolution authority may request the European Banking Authority to assist in reaching an agreement in accordance with the Article 19.3 of Regulation (EU) No 1093/2010 of 24 November 2010, unless one of the resolution authorities concerned considers that the issue raised by the dispute may infringe the tax powers of its State.

7. Where joint decisions are taken pursuant to paragraphs 1 and 3 and a resolution authority determines that the issue raised by the disagreement on the group-level resolution plans is in breach of the tax powers. of its State, the preventive resolution authority, where it is the group-level preventive resolution authority, shall carry out a reassessment of the group resolution plan, including the minimum requirements on own funds and liabilities admissible.

Section 2. Resolutionability Evaluation

Article 29. Assessment of resolvability.

1. In order to carry out the assessment of the resolutionability of entities and groups provided for in Articles 15 and 16 of Law 11/2015 of 18 June 2015 respectively, the competent preventive resolution authority shall at least examine the aspects of the specified in Annex III.

2. The procedure for the adoption of the joint decision on the assessment of group resolution shall be that provided for in Article 28. For such purposes, the resolution college authorities shall take into account the assessment of the resolutionability of the group carried out by the preventive resolution authority as a group preventive resolution authority.

Article 30. Joint decision on removing obstacles to the resolutionability of groups.

1. The joint decision on the appropriate measures to remove the obstacles to the resolutionability of a group referred to in Article 18 of Law 11/2015 of 18 June 2015 shall be adopted within the maximum period of four months after the parent of the group send its observations to the measures proposed by the preventive resolution authority to remove the obstacles to resolutionability, in accordance with paragraph 1 of the aforementioned Article.

In the absence of any comments during the four-month period with which the group's parent account under Article 18.2 of Law 11/2015 of 18 June 2015 is concerned, the joint decision shall be taken as soon as possible.

In any event, the joint decision shall be motivated and set out in a document that the group-level preventive resolution authority shall provide to the parent undertaking.

2. The preventive resolution authority, in accordance with Article 31.c) of Regulation (EU) No 1093/2010 of 24 November 2010, may request the mediation of the European Banking Authority to reach the joint decision.

3. If a joint decision cannot be reached within the time limit laid down in paragraph 1, the preventive resolution authority, where the resolution authority at the group level, shall take its own decision on the measures to be applied to group level or, where the resolution authority of a subsidiary is concerned, on the measures to be taken by the group entities established in Spain.

These decisions will be fully motivated and take into account the views and reservations expressed by the other resolution authorities. The group-level preventive resolution authority shall communicate the decision to the parent.

4. By way of derogation from the preceding paragraph, if during the four-month period and before the adoption of the joint decision, a resolution authority has referred a matter referred to in paragraph 6 to the Banking Authority. In accordance with Article 19 of Regulation (EU) No 1093/2010 of 24 November 2010, the preventive resolution authority shall defer its decision pending the decision which the European Banking Authority may adopt in accordance with Article 19 of Regulation (EU) No 1093/2010. with Article 19 (3) of that Regulation. In such cases, the four-month period shall be considered as the period of conciliation within the meaning of that Regulation.

The preventive resolution authority shall also take its decision in accordance with the decision of the European Banking Authority. In the absence of a decision of the European Banking Authority within one month, the decision of the preventive resolution authority shall apply.

5. The preventive resolution authority shall recognise and apply the decisions reached by other resolution authorities in which it has not been involved.

6. In the absence of a joint decision on the adoption of any of the measures provided for in Article 17 (2) (g), (h) or (k) of Law 11/2015 of 18 June 2015, the preventive resolution authority may request the European Banking Authority to assistance for reaching an agreement in accordance with Article 19 (3) of Regulation (EU) No 1093/2010 of 24 November 2010.

CHAPTER IV

Resolution

Article 31. Notification requirements.

1. The competent supervisor shall inform the competent preventive resolution authority and the FROB of any notification it receives in accordance with Article 21.4 of Law 11/2015 of 18 June 2015 and of any crisis prevention or any measure referred to in Articles 68 and 69 of Law 10/2014 of 26 June, or Articles 260 and 261 of the recast text of the Securities Market Act, which they order to adopt in respect of an entity.

2. Where the competent supervisor or the FROB, as appropriate, determines that an institution fulfils the conditions set out in Article 19.1. (a) and (b) of Law 11/2015, of 18 June, shall inform the following authorities without delay of being different:

(a) The competent resolution authorities.

b) The supervisor of the subsidiaries of that entity.

c) The supervisor of the branches of that entity.

(d) The competent resolution authorities of the branches of that entity.

e) The Banco de España.

(f) The deposit guarantee system to which the credit institution is affiliated, where necessary to enable the performance of the functions of such a system.

g) The body or institution entrusted with the financing mechanisms in the resolution procedure where necessary to enable the performance of the functions of such mechanisms.

h) When applicable, the resolution authority at the group level.

i) The Ministry of Economy and Competitiveness.

(j) If the institution is subject to supervision on a consolidated basis in accordance with Chapter II of Title II of Law 10/2014 of 26 June or Chapter I of Title VII of the recast of the Securities Market Act, the institution shall monitor the consolidated basis.

k) To the national macro-prudential authority which, where appropriate, is designated and to the European Systemic Risk Board.

3. Where an appropriate level of confidentiality cannot be ensured in the transmission of the information referred to in paragraph 2.f. and (g) the competent supervisor or the FROB shall establish alternative communication systems to achieve the same. objectives while ensuring this level of confidentiality.

Article 32. Reporting obligations of the FROB.

1. Once the start of the resolution process has been agreed, the FROB shall take the measures provided for in this Article without delay.

2. The FROB shall notify the decision initiating the resolution process to the institution under resolution and, if these are different, to the following authorities:

a) The competent supervisor of the entity object of resolution.

b) The competent supervisor of any subsidiary or branch of the institution under resolution.

c) To the Banco de España.

d) To the deposit guarantee system to which the credit institution object of resolution is affiliated.

e) To the body responsible for financing mechanisms in the resolution procedure.

f) When applicable, to the resolution authority at the group level.

g) To the Ministry of Economy and Competitiveness.

h) If the institution under resolution is subject to supervision on a consolidated basis in accordance with Title II, Chapter II of Law 10/2014 of 26 June, or Title VII, Chapter I of the recast text of the Market Law Values, to the consolidating supervisor.

i) To the national macro-prudential authority which, if appropriate, is designated and to the European Systemic Risk Board.

(j) to the European Commission, the European Central Bank, the European Securities and Markets Authority, the European Insurance and Occupational Pensions Authority and the European Banking Authority.

k) If the institution under resolution is an entity in accordance with Article 2 (b) of Directive 98 /26/EC, the operators of the systems in which it participates.

3. The notification referred to in the preceding paragraph shall include a copy of any decision by which the relevant powers are exercised and shall indicate the date on which the resolution actions shall take effect.

4. The FROB shall publish the decision provided for in this Article or request or order its publication:

a) On your official website.

(b) On the website of the competent supervisor and the website of the European Banking Authority.

c) On the web page of the entity that is the object of the resolution.

(d) Where the shares, other capital instruments or debt instruments of the institution under resolution are admitted to trading on a regulated market, by the same means used for the disclosure of the information regulated by that entity in accordance with Article 21.1 of Directive 2004 /109/EC of the European Parliament and of the Council of 15 December on the harmonisation of transparency requirements relating to information on issuers whose securities are admitted to trading on a regulated market and for which the Directive is amended 2001 /34/EC.

5. If the shares, capital instruments or debt instruments have not been admitted to trading on a regulated market, the FROB shall ensure that the decision referred to in paragraph 2 is notified to the shareholders and creditors of the a resolution entity that has been identified through the records and databases of the entity that are available to the FROB.

Article 33. Replacement of the administrative body and directors-general or assimilated as a measure of resolution.

1. The members of the entity's administrative body and the directors-general or those who are deemed to be appointed pursuant to Article 22 of Law 11/2015 of 18 June 2015 shall have the qualification, capacity and knowledge of necessary to perform their duties.

2. The members of the entity's administrative body and the Directors-General shall have the statutory duty to take all necessary measures to promote the objectives and principles of resolution referred to in Articles 3 and 4 of the Law. 11/2015, of June 18, and execute the resolution actions in accordance with the decision of the competent resolution authority.

Solutions may include an increase in capital, the reorganization of the entity's capital structure, or the taking of participation by healthy entities from a financial and organizational point of view, according to the the instruments of resolution referred to in Chapter V.

3. The FROB may establish limitations on the performance of the members of the entity's management body and the general or assimilated directors or require that some of its shares should be subject to prior consent. The FROB may at any time remove the members of the administrative body and the directors-general.

4. In the terms determined by the FROB, the members of the institution's administrative body and the Directors-General shall draw up reports on the economic and financial situation of the institution and on its performance in the performance of its tasks. These reports shall be produced on a regular basis in the terms available to the FROB, and at the beginning and end of their term of office.

5. Where the FROB and other resolution authorities intend to appoint a special administrator in relation to an entity linked to a group, the FROB, in coordination with the other authorities, shall assess the appropriateness of appointing a single entity. special administrator for all entities involved in order to facilitate the adoption of measures to improve the financial soundness of the entities concerned.

6. All decisions relating to the replacement of the entity's management body, general or similar directors, with the determination of their powers and their form of action, and limitations, shall be the subject of registration in the Register Mercantile.

CHAPTER V

Resolution instruments

Article 34. Requirements for the sale of the entity's business.

The person or entity that becomes the acquirer of the institution under resolution in accordance with the applicable regulations, must have the appropriate authorization to carry out the business of the acquired business to the provisions of Article 26 of Law 11/2015, of 18 June. The competent supervisors shall ensure that the application for authorisation is analysed in due time, in conjunction with the transmission.

Article 35. Operation of the bridge entity.

1. It is for the FROB to constitute the bridge entity referred to in Article 27 of Law 11/2015 of 18 June, and in particular to approve:

a) The founding documents of the bridge entity.

(b) The appointment of the managing body of the bridge entity, which shall be appointed subject to the capital structure of the bridge institution.

(c) The remuneration and responsibilities of the members of the managing body of the bridge institution.

d) The entity's risk profile and strategy.

2. The FROB shall agree to cease the activity of a bridge entity when one of the following circumstances occurs:

(a) To be merged with another entity within the framework of Law 3/2009 of 3 April on structural modifications of commercial companies.

b) For non-compliance with the requirements set to constitute a bridge entity.

c) By selling to a third party of all or most of its assets and liabilities.

d) By settlement of its assets and liabilities.

3. In the event that none of the circumstances provided for in the previous paragraph occur, the FROB shall terminate the operation of the bridging entity as soon as possible and, in any event, within two years of the date on which the the last transmission from an entity under resolution to the instrument of the bridge entity took place.

The FROB may extend the period of two years by one or more additional periods of one year in order to favour the circumstances referred to in the previous paragraph or where necessary in order to ensure the continuity of essential banking or financial services.

The decision of the FROB to extend the two-year period should be motivated and contain a detailed assessment of the situation justifying enlargement, including market conditions and prospects.

Article 36. Functioning of the asset management company.

1. In accordance with Article 28 (3) of Law 11/2015, 18 June, and in the light of the circumstances, the FROB will determine in each case the form of control over the asset management company that it considers appropriate to the the purpose of ensuring that such a company acts in accordance with the objectives of the resolution.

2. The asset management company shall manage the assets and liabilities received from the resolution entity. Asset management will be aimed at maximizing its value through an eventual orderly sale or liquidation.

3. The FROB shall approve the instruments of incorporation of the management company, its management body, the remuneration of the management company, determine its responsibilities as well as the strategy and risk profile of the company.

4. The FROB, in exercising the powers provided for in the preceding paragraph, shall determine the corporate governance obligations to which the asset management company shall be subject in order to ensure the most appropriate organisation and operation for the the fulfilment of the objectives of the resolution and the transparency in its actions, with the application of the provisions of the Royal Decree, 1559/2012 of 15 November, establishing the legal status of the companies of the asset management.

CHAPTER VI

Amortization and conversion of capital instruments and internal recapitalisation

Article 37. Procedure for the exclusion, in whole or in part, of certain liabilities or categories of eligible liabilities.

The FROB, before exercising the discretion to exclude a liability under Article 43.1 of Law 11/2015, of June 18, will notify the European Commission.

When exclusion requires a contribution from the National Resolution Fund or the use by the FROB of an alternative source of funding, in accordance with Article 43.4 and Section 6 of Chapter VI of Law 11/2015, 18 In June, the Commission may, within 24 hours of receipt of such notification, or within a period of 24 hours with the agreement of the FROB, prohibit the proposed exclusion or require it to be amended if the requirements of the This Article and the delegated acts, in order to protect the integrity of the internal market. This is without prejudice to the application of the European State aid rules.

Article 38. Determination of the minimum requirement for own funds and eligible liabilities.

1. Eligible liabilities, including subordinated debt instruments and subordinated loans which cannot be considered as additional Tier 1 or Tier 2 capital, shall be included in the amount of own funds and eligible liabilities referred to in the Article 44 of Law 11/2015, of 18 June, when they meet the following conditions:

a) That the instrument has been issued and is fully disbursed.

b) That the liability is not attached to the entity itself, nor is it supported or guaranteed by it.

(c) The acquisition of the instrument has not been directly or indirectly financed by the institution.

d) That the liability has a maturity period remaining at least one year.

e) That the liability does not come from a derivative instrument.

(f) The liability does not arise from a deposit of those provided for in paragraph 1 of the 14th additional provision of Law 11/2015, of 18 June.

For the purposes of point (d), where a liability confers on its owner an early repayment right, the first date on which it may be exercised shall be considered as the maturity of that liability.

2. Where an entity has to demonstrate in accordance with Article 44.4 of Law 11/2015 of 18 June that any decision by a resolution authority to write down or convert an eligible liability would be effective under the terms of the that third country, shall do so in the light of the terms of the contract governing the liability, of international agreements on the recognition of resolution procedures, as well as of other relevant issues.

3. In order to qualify as a contractual internal recapitalisation instrument for the purposes of Article 44.7 of Law 11/2015 of 18 June 2015, the preventive resolution authority shall ensure that the instrument:

(a) contains a contractual clause stipulating that, where a resolution authority decides to apply the internal recapitalisation instrument to that institution, the instrument shall be amortised or converted to the extent necessary to be amortised or convert other eligible liabilities, and

(b) is subject to a binding agreement, commitment or provision of subordination, under which, if there are any such procedures, the instrument shall be classified in a lower range than other eligible liabilities. in accordance with paragraph 1 and may not be repaid until other eligible liabilities that are outstanding at that time have not been settled.

Article 39. Exemption from the minimum requirement for own funds and eligible liabilities.

1. The group-level preventive resolution authority, after consulting the FROB, may fully exempt a parent institution of the European Union from the application of the individual minimum requirement for own funds and eligible liabilities where:

(a) the parent institution of the European Union complies on a consolidated basis with the minimum requirement set out in Article 44 of Law 11/2015 of 18 June 2015

and

b) the competent authority in respect of the parent institution of the European Union has exempted the institution from the application of the individual capital requirements in accordance with Article 7 (3) of the Regulation (EU) Number 575/2013 of the European Parliament and of the Council of 26 June 2013.

2. The preventive resolution authority of a subsidiary, after consulting the FROB, may fully exempt that subsidiary from the application of Article 44 of Law 11/2015, of 18 June, on an individual basis, where:

(a) both the subsidiary and its parent undertaking are subject to authorisation and supervision by the same Member State,

(b) the subsidiary is included in the supervision on a consolidated basis of the entity that is its parent undertaking,

c) the highest level group entity in the Member State of the subsidiary, if different from the parent institution of the European Union, meets on a sub-consolidated basis the minimum requirement set out in Article 44 of Law 11/2015, June 18,

(d) do not exist, or be expected to exist, any practical or legal impediment relevant to the immediate transfer of own funds or the repayment of liabilities to the subsidiary by its parent company,

(e) the parent undertaking shows, to the satisfaction of the competent authority, that it conducts a prudent management of the subsidiary and has declared, with the consent of the competent authority, the guarantor of the commitments entered into by the subsidiary, or the risks of third parties with the subsidiary are insignificant,

(f) the assessment, measurement and risk control procedures of the parent undertaking include the subsidiary,

g) the parent company holds more than 50 percent of the voting rights in the subsidiary or has the power to appoint or remove the majority of the members of the subsidiary's management body, and

h) the competent authority in respect of the subsidiary has totally exempted the subsidiary from the application of the individual capital requirements in accordance with Article 7.1 of Regulation (EU) No 575/2013 of the European Parliament European Union and the Council of 26 June 2013.

Article 40. Determination of the minimum requirement for own funds and eligible liabilities of the subsidiaries of the group and the parent companies of the European Union.

1. The Spanish preventive resolution authority, after reporting by the FROB and the competent supervisor, shall set the minimum requirement for own funds and eligible liabilities to be applied to the group's Spanish subsidiaries at the individual level.

2. The Spanish preventive resolution authority, where the preventive resolution authority is also a group level, shall determine, after reporting by the FROB and after consulting the supervisor on a consolidated basis, the minimum requirement at the level of the consolidated the parent companies of the European Union, as well as the individual minimum requirement of the parent institution.

Article 41. Joint decision on the minimum requirement for own funds and eligible liabilities applicable at the consolidated level.

1. The Spanish preventive resolution authority, as a preventive resolution authority at the group level or as a preventive resolution authority responsible for the subsidiaries on an individual basis, prior to the report of the FROB, will do everything in its power scope to reach a joint decision on the level of the minimum requirement applied at the consolidated level, in accordance with Article 44 of Law 11/2015, of 18 June.

2. The joint decision shall be taken in a report containing its statement of reasons, and the Spanish preventive resolution authority shall notify the parent undertaking of the Union, where it is the group-level preventive resolution authority.

3. In the absence of such a joint decision within a period of four months, the Spanish preventive decision-making authority, where the group-level preventive resolution authority is a pre-report of the FROB, shall take a decision on the minimum requirement. consolidated after having duly studied the assessment of the subsidiaries carried out by the relevant resolution authorities.

4. If during the said four-month period, one of the resolution authorities concerned has referred the matter to the European Banking Authority in accordance with Article 19 of Regulation (EU) No 1093/2010 of 24 November 2010, the Spanish preventive resolution authority at the group level shall defer its decision pending the decision which the European Banking Authority may take in accordance with Article 19.3 of that Regulation. It shall subsequently resolve in accordance with the decision of the European Banking Authority.

The four-month period shall be considered as the period of conciliation within the meaning of Article 19 of that Regulation.

The case will not be referred to the European Banking Authority after the end of the four-month period or after a joint decision has been taken. In the absence of a decision of the European Banking Authority within one month, the decision of the group-level resolution authority shall apply.

5. The joint decision and the decision taken by the group-level resolution authority in the absence of a joint decision shall be binding on the Spanish preventive resolution authorities.

6. The joint decision and any decision taken in the absence of a joint decision shall be reviewed and, where appropriate, updated regularly.

Article 42. Minimum requirement for own funds and eligible liabilities of subsidiaries at individual level and joint decision on the minimum requirement applied at the individual level to the subsidiaries of the group.

1. The minimum requirement for own funds and eligible liabilities of the subsidiary shall be set at an appropriate level to take into account:

(a) the criteria listed in Article 44.2 of Law 11/2015 of 18 June, in particular the size, type of company and risk profile of the subsidiary, including its own funds, and

(b) the consolidated requirement that has been fixed for the group in accordance with Article 41.

2. The Spanish preventive resolution authority, where it is the preventive resolution authority at the group level or at any of the subsidiaries on an individual basis, prior to the report of the FROB, will do everything in its power to reach a decision. together with the level of the minimum requirement to be applied to each subsidiary on an individual basis.

3. The joint decision shall be taken in a document containing its statement of reasons, and the Spanish preventive decision-making authority shall notify the Spanish subsidiaries and, where appropriate, the parent institution of the European Union, where it is the authority Preventive resolution at the group level.

In the absence of a joint decision between the resolution authorities within a period of four months, the decision will be taken by the Spanish preventive resolution authority in respect of the Spanish subsidiaries, having due regard to the opinions and reservations expressed by the resolution authority at the group level.

4. If during the said four-month period, the group-level resolution authority has referred the matter to the European Banking Authority in accordance with Article 19 of Regulation (EU) No 1093/2010, the preventive resolution authority the individual subsidiary shall defer its decision pending the decision which the European Banking Authority may take in accordance with Article 19 (3) of that Regulation and shall take its decision in accordance with the Decision of the European Banking Authority.

The four-month period shall be considered as the conciliation period within the meaning of that Regulation.

The matter shall not be referred to the European Banking Authority after the end of the four-month period or after a joint decision has been taken.

In the absence of a decision of the European Banking Authority within one month, the decisions of the Spanish preventive resolution authority responsible for the subsidiary shall apply.

5. Joint decisions and all decisions taken by the resolution authorities of the subsidiaries in the absence of a joint decision shall be binding on the Spanish preventive resolution authority.

6. The joint decision and any decision taken in the absence of a joint decision shall be reviewed and, where appropriate, regularly updated.

7. The group-level resolution authority shall not refer the matter to the European Banking Authority for binding mediation purposes where the level set by the resolution authority of the subsidiary does not vary by more than one percentage point of the level established pursuant to Article 41.

Article 43. Value of liabilities arising from derivatives.

The FROB shall determine the value of liabilities arising from derivatives according to:

(a) appropriate methods for determining the value of the different categories of derivatives, including transactions carried out in the framework of clearing arrangements;

b) principles for establishing the exact time when the value of a derivative position should be set, and

(c) appropriate methods for comparing the loss of value that would arise from the settlement of transactions and the internal recapitalisation of derivatives, with the amount of losses incurred by derivatives in a recapitalisation internal.

Article 44. Plan for reorganization of activities.

1. Within one month of the application to an institution of the internal recapitalisation instrument in accordance with Article 40.2 (a) of Law 11/2015 of 18 June 2015, the administrative body of the institution or the natural person or persons A plan for the reorganisation of activities, in accordance with Article 49 of the Law, which meets the requirements of paragraphs 1 and 2, shall be drawn up and submitted to the FROB by a legal entity designated in accordance with Article 22.1 of Law 11/2015 of 18 June 2015. 4 and 5 of this article. Where the framework of the European Union rules on State aid is applicable, the plan shall be compatible with the recovery plan which the institution is required to submit to the European Commission in accordance with that framework.

2. Where the internal recapitalisation instrument referred to in Article 40.2 (a) of Law 11/2015 of 18 June applies to two or more entities in the group, the plan for the reorganisation of activities to be submitted to the FROB shall be drawn up by the undertaking. the Spanish parent company or the parent company not located in Spain where the supervision of the group on a consolidated basis corresponds to the competent Spanish supervisory authorities in accordance with Article 81 of Royal Decree 84/2015 of 13 February 2015; and shall cover all entities in the group in accordance with the procedure specified in the Articles 12 and 13. The FROB shall communicate the plan to other interested resolution authorities and the European Banking Authority.

3. In exceptional circumstances, and if necessary to achieve the resolution objectives, the FROB may extend the period provided for in paragraph 1 to a maximum of two months from the application of the recapitalisation instrument. internal.

When the reorganisation of the activities is also to be notified within the framework of the European Union rules on State aid, the FROB may extend the period provided for in paragraph 1 to a maximum of two months from the application of the internal recapitalisation instrument or until the end of the period laid down in the European Union rules on State aid, if any earlier.

Article 45. Content and execution of the activity reorganization plan.

1. The plan for the reorganisation of activities shall set out measures to restore the long-term viability of the entity or part of its activities within a reasonable time.

These measures will be based on realistic assumptions about the situation of the economy and the financial markets in which the entity will operate.

The plan for the reorganization of activities will take into account, among other issues, the present and future prospects of the financial markets, which will reflect the most pessimistic and optimistic scenarios, as well as a selection of events to identify the most vulnerable points of the entity. Scenarios will be compared with reference data applicable to the entire industry.

2. The following items shall be included in the activity reorganization plan:

a) A detailed diagnosis of the factors and problems that have caused the infeasibility or the future possible infeasibility of the entity, and of the circumstances that have led to this situation.

(b) A description of the measures to be taken to restore the long-term viability of the institution.

c) A timetable for the execution of such measures.

3. Within one month of the submission of the business reorganisation plan, the FROB, in agreement with the competent supervisor and the preventive resolution authority, shall assess the capacity of the plan to restore viability to the long term of the institution. If the FROB, the preventive resolution authority and the competent supervisor consider that the plan is eligible to achieve that objective, the FROB shall approve the plan.

4. If the FROB considers that the plan is not fit to achieve the objective referred to in paragraph 3, it shall communicate it, in agreement with the preventive resolution authority and the competent supervisor, to the institution's management body or to the natural or legal persons or persons designated in accordance with Article 22.1 Act 11/2015 of 18 June 2015 and shall require amendment of the plan.

5. Within 15 calendar days of receipt of the communication referred to in paragraph 4, the administrative body of the entity or the natural or legal person or persons designated in accordance with Article 22.1 of the Act 11/2015, of 18 June, will present to the FROB a modified plan for its approval. The FROB, in agreement with the competent supervisor and the preventive resolution authority, shall evaluate the amended plan and, within seven calendar days, communicate, in agreement with both, the entity's management body or the person or natural or legal persons designated in accordance with Article 22.1 of Law 11/2015 of 18 June, if it considers that the plan is suitable or requires additional modifications.

6. The management body of the entity or the natural or legal person or persons designated in accordance with Article 22.1 of Law 11/2015 of 18 June shall implement the reorganisation plan as agreed by the FROB, and the authority of preventive resolution and the competent supervisor. It shall also send a report to the FROB, at least every six months, on progress in the implementation of the plan. The FROB may require a lower frequency in the light of the circumstances of the entity or group and the measures provided for in that plan.

7. The management body of the entity or the natural or legal person or persons designated in accordance with Article 22.1 of Law 11/2015 of 18 June shall review the plan if, in the opinion of the FROB with the agreement of the competent supervisor, it is necessary to achieve the objective set out in paragraph 1, and shall submit this review to the FROB for approval, after consultation with the preventive resolution authority and the competent supervisor.

Article 46. Conversion and amortisation of capital instruments.

1. In order to carry out the conversion of capital instruments in accordance with Article 39.1 (b) of Law 11/2015 of 18 June 2015, the FROB may require institutions to issue Common Equity Tier 1 instruments for the holders of capital instruments. capital instruments as defined in that Act.

2. The relevant capital instruments may be converted only where the following conditions are met:

(a) That these Common Equity Tier 1 instruments are issued by the institution, or by a parent company of the institution, with the agreement of the FROB, or, where applicable, of the resolution authority of the parent undertaking.

(b) That these Common Equity Tier 1 instruments are issued prior to any issuance of shares or other capital instruments by that institution for the purposes of the contribution of own funds by part of the State or a State entity.

(c) That these Common Equity Tier 1 instruments are allocated and transmitted without delay after the exercise of the conversion competition.

(d) that the conversion rate that determines the number of Common Equity Tier 1 instruments issued in respect of each relevant capital instrument is in accordance with the principles set out in Article 48.5 of the Act 11/2015, June 18.

Article 47. Notification and query requirements in the consolidated application.

1. The FROB, before determining whether any of the circumstances referred to in Article 38 are given. 2. (b), (c), (d) or (e) of Law 11/2015, of 18 June, in relation to a Spanish subsidiary issuing capital instruments for the purposes of the fulfilment of own funds obligations on an individual and consolidated basis, shall:

(a) Notify, without delay, the consolidating supervisor and, if different, the resolution authority of the Member State in which the consolidating supervisor is situated, which is planning to assess whether the circumstances referred to in Article 38.2. (b), (c), (d) or (e) of Law 11/2015, of 18 June.

(b) Notify without delay the competent supervisor responsible for each institution that has issued the capital instruments on which the redemption or conversion competition should be exercised and, if different, to the resolution authorities of the Member States concerned and the supervisor on a consolidated basis.

2. To determine whether the circumstances referred to in Article 38 are present. 2. (c), (d) or (e) of Law 11/2015 of 18 June, in the case of the resolution of an entity or a group with cross-border activity, the FROB shall take into account the possible impact of the resolution in all Member States in which operates that entity or group.

3. The FROB, together with the notification referred to in paragraph 1, shall provide an explanation of the reasons why it considers that the circumstances in question are given.

4. The FROB, after making the notification in accordance with paragraph 1, after consulting the notified authorities, shall assess the following aspects:

(a) If there is an alternative measure to the exercise of the redemption or conversion competition provided for in Article 38.2 of Law 11/2015, of 18 June.

b) If such an alternative measure exists, it can be properly applied.

(c) Where the alternative measure is possible to apply, if there are realistic prospects that, within an appropriate period of time, the circumstances may be resolved which would otherwise require the application of the provisions of Article 38.2. of Law 11/2015, of June 18.

5. For the purposes of paragraph 4 above, alternative measures are defined as the measures for early action referred to in Article 9 of Law 11/2015 of 18 June 2015, the measures referred to in Article 68.2 of Law 10/2014, of 26 June, and 260 of the recast text of the Securities Market Act, as well as the transfer of funds or capital from the parent company.

6. Where, in accordance with paragraph 4, the FROB, after consulting the notified authorities, considers that there are alternative measures which may be applied and which would produce the results referred to in point (c), it shall ensure that they are applied. such measures.

7. Where, in the case referred to in paragraph 1. (a) and in accordance with paragraph 4 of this Article, the FROB, after consulting the notified authorities, assesses that there are no alternative measures which could produce the results referred to in paragraph 4 (c), the FROB shall decide whether it is appropriate to apply the provisions of Article 38.2 of Law 11/2015 of 18 June.

8. Where the FROB determines that the circumstances provided for in Article 38.2 are given. (d) of Law 11/2015, of 18 June, shall immediately notify the competent authorities of the Member States in which the subsidiaries concerned are located. That determination shall take the form of a joint decision in accordance with Article 63.3 and 4. In the absence of a joint decision, no such determination shall be made.

9. The FROB shall apply without delay and taking particular account of the urgency of the circumstances, any decision on the depreciation or conversion of capital instruments adopted in accordance with Article 38.2. (b), (c), (d) or (e) Law 11/2015, of 18 June, and this Article, in relation to subsidiaries of entities located in Spain.

CHAPTER VII

FROB

Section 1. Financing Mechanisms

Article 48. National Resolution Fund.

1. The financial resources of the National Resolution Fund shall be at least 1% of the amount of the guaranteed deposits of all entities before 31 December 2024. When this percentage is reached, the Minister of Economy and Competitiveness, on a proposal from the FROB and after consulting the preventive resolution authorities, may agree to suspend the contributions.

Likewise and when it is indispensable for the achievement of the purposes of the National Resolution Fund, the Minister of Economy and Competitiveness, ex officio or at the initiative of the FROB and after consulting the resolution authorities, may extend the amount fixed in the preceding paragraph.

The FROB may agree to extend the initial period ending on 31 December 2024 for a maximum period of four years if disbursements have been made in succession by the National Resolution Fund. higher than 0.5 percent of the guaranteed deposits of all entities.

2. If the initial period referred to in the previous paragraph has elapsed, the Fund's financial resources shall be reduced below the target level, the ordinary contributions shall be resumed until such level is reached.

3. Once the target level has been reached for the first time, if the available financial resources are reduced to less than two-thirds of that level, the contribution of the institutions will be set at a level that will enable them to the level set as a target within a period not exceeding six years.

4. Subject to the provisions of Articles 25 to 28 of Law 11/2015 of 18 June 2015, the amounts received from the institution in resolution or from the bridging entity, as well as interest and other income from investments and any other benefits, may to go to the National Resolution Fund.

5. In case the use of the financing mechanisms for the purposes of Article 53.1 of Law 11/2015 of 18 June, indirectly implies that part of the losses of an entity is transmitted to the financing mechanism of the resolution, the principles governing the use of the same set forth in Section 4. of Chapter VI of Law 11/2015, of June 18, will apply.

Article 49. Determination of annual contributions by the FROB.

1. The FROB shall determine annually, and in any event before 1 May of each year, the total contribution that the set of obligated entities shall make to the National Resolution Fund and the ordinary contributions to be paid by each of the entities during that year, taking into account the information available to them and which may require the entities to do so.

2. The total amount shall be set in such a way as to meet the objective set out in Article 48.1 taking into account the stages of the economic cycle and the pro-cyclical impact that the contributions may have on the financial situation of the institutions. contributors.

3. In accordance with the provisions of Article 53,1 (a). 2. of Law 11/2015, of June 18, the contributions will be adjusted to the risk profile of each entity, according to the following criteria:

(a) the institution's level of risk, taking into account the importance of its business activities, off-balance sheet risks and its degree of leverage,

(b) the stability and variety of sources of financing and high liquidity-free assets of the company,

c) the financial situation of the entity,

d) the probability of the entity being the object of resolution,

(e) the extent to which the institution has previously benefited from extraordinary public financial support,

f) the complexity of the entity's structure and its resolutionability,

(g) the importance of the institution for the stability of the financial system or the economy of one or more Member States of the European Union or of the European Union as a whole, and

h) the fact that the entity is part of an Institutional Protection System.

4. The FROB shall take such measures as are necessary for the institutions to make the required contributions.

In particular, the FROB may adopt standard forms or models to facilitate the settlement of such contributions. In any case, it may require the entities to provide any additional information necessary to verify the correct implementation of the contributions.

5. Institutions shall be governed by the general accounting rules issued by the competent authority in this field.

The competent accounting authority, after reporting from the other competent authorities, may establish the necessary registration obligations for the proper performance of the duty of contribution of the entities.

Article 50. Extraordinary contributions.

1. The annual amount of the extraordinary contributions may not exceed three times the annual amount of the ordinary contributions.

2. The FROB shall determine the amount that each institution shall assume as an extraordinary contribution in accordance with the rules applicable to the ordinary contributions provided for in Article 53.1.a) of Law 11/2015 of 18 June.

3. The FROB may defer, in whole or in part, the obligation to pay the extraordinary contribution if such an obligation endangers the liquidity or solvency of the institution, or its financial position. This deferral shall be granted for a maximum period of six months, renewable at the request of the institution. The payment shall be made where the institution's liquidity or solvency is not jeopardised.

4. Article 49 (3) and (4) shall apply to contributions collected under this Article.

Article 51. Loans between financing mechanisms of Member States of the European Union.

1. In accordance with Article 53.1.b of Law 11/2015 of 18 June 2015, the National Resolution Fund may receive and grant loans to the financing mechanisms of other Member States at the request of the FROB.

In both cases, before taking a decision, the FROB must request a report from the Ministry of Economy and Competitiveness, who will have a maximum of 5 working days to issue it.

2. The files for which the FROB decides to request or accept the application for a loan shall be processed promptly.

3. In the event that the FROB accepts the loan application jointly with other resolution authorities or financing mechanisms, the interest rate, the amortisation period and the remaining terms of the loan will be those agreed between the participants in the loan.

The amount granted by the National Resolution Fund, at the request of the FROB, shall be that corresponding to the proportion of total guaranteed deposits in Spain on the total of the guaranteed deposits in the Member States. of the participating mechanisms. This amount may vary with the agreement of all the resolution authorities or participating mechanisms.

4. Loans granted pursuant to this Article shall be considered as assets of the National Resolution Fund and shall be taken into account to calculate the level set as an objective in Article 48.1.

Article 52. Mutualisation of the national funding mechanisms in the case of group resolution.

1. For the purposes of Article 53.3 of Law 11/2015 of 18 June 2015, the FROB, after consulting the resolution authorities of the entities that are part of the group, will propose, if necessary, a financing plan as part of the group resolution scheme referred to in Articles 62 and 63.

2. The financing plan shall be approved in accordance with the decision-making procedure of Articles 62 and 63 and shall include:

(a) an assessment of the entities of the group concerned, in accordance with Article 5 of Law 11/2015, of 18 June,

(b) losses corresponding to each entity of the group concerned at the time the resolution instrument is applied,

(c) the losses that each class of shareholders and creditors would suffer in each entity in the group concerned,

(d) the contributions of the deposit guarantee scheme to which each entity of the group concerned is affiliated, in accordance with Article 53.7 of Law 11/2015, of 18 June,

e) the total of the contribution in charge of the corresponding funding mechanism, as well as its purpose and form,

(f) the basis for calculating the amount by which each national financing mechanism of the Member States in which the entities of an affected group are established, to cover the whole of the the contribution referred to in point (e),

g) the contributions that the national financing mechanism of each entity of the affected group should contribute to the financing of the group resolution and the form of such contributions,

(h) the amount of the loans that the resolution authorities or the financing mechanisms of the Member States in which the entities of an affected group are established may contract with other entities, financial institutions, and third parties in general, in accordance with Article 53.5 of Law 11/2015 of 18 June 2015, and

(i) a timetable, which may be extended where necessary, for the use of the financing mechanisms of the Member States in which the entities of the group concerned are established.

3. Unless otherwise agreed in the financing plan, the basis for calculating the contribution of each national funding mechanism referred to in point (e) of the preceding paragraph shall take into account:

(a) the proportion of the risk-weighted assets of the group that belong to the entities.

b) the proportion of the assets in the group that belong to the entities.

(c) the proportion of the losses that have resulted in the need for the group resolution and which have originated in the group entities supervised by the competent authorities of the Member State to which the group belongs. financing mechanism.

(d) the proportion of the resources of the financing mechanisms of the group which, according to the financing plan, are expected to be used to directly benefit the entities of the group established in the State member to which the financing mechanism belongs.

4. Without prejudice to paragraph 1, the FROB may take the necessary actions to ensure the contribution of the National Resolution Fund to the financing of the group resolution in an immediate manner.

5. For the purposes of this article, the FROB shall be enabled, under the conditions set out in Article 53.5 of Law 11/2015, of June 18, to use the National Resolution Fund to contract loans, to request the opening of loans and to carry out any other borrowing operations, as well as to ensure the loans or operations it carries out.

6. Any revenue or profit arising from the use of the group financing mechanisms shall be allocated to the National Resolution Fund on the basis of its contributions to the financing of the resolution procedure as set out in the paragraph 1.

Article 53. Use of the deposit guarantee system in the context of the resolution.

1. The determination of the amount to be held responsible for the Deposit Insurance Fund of Credit Entities in accordance with the provisions of Article 53.7 of Law 11/2015 of 18 June 2015 shall be in accordance with the provisions of Article 5 of that Law. law.

2. The disbursement of the amount referred to in the previous paragraph shall be made in cash.

3. Where the eligible deposits of an institution under resolution are transmitted to another entity through the business instrument or a bridge institution, depositors shall not be able to claim any credit from the Guarantee Fund of the institution. Deposits of Credit Entities, pursuant to Royal Decree-Law 16/2011 of 14 October, for the non-transmitted part of the deposits that it covers in the institution under resolution, provided that the amount of the eligible deposits transmitted is equal to or higher than the level of cumulative coverage provided for in Article 10 of the Royal Decree-Law.

4. Where the internal recapitalisation instrument is applied, the deposit guarantee scheme shall not contribute to the costs of the recapitalisation of the institution under resolution or of the bridge institution referred to in point (b) of Article 36.2 of this Regulation. Law 11/2015, of 18 June.

Section 2. FROB actuations

Article 54. Effectiveness of resolution actions in third countries.

When the FROB considers that, by way of derogation from Article 64.1.o) of Law 11/2015 of 18 June, it is highly unlikely that the measures or instruments of resolution will have an effect on certain assets located in the Union. in a third country or with certain shares, other capital instruments, rights or liabilities regulated by the law of the third country, the FROB shall not order the adoption of such measures.

Article 55. Restrictions on the execution of the guarantees.

In the cases in which the provisions of Article 67.2 of Law 11/2015 of 18 June 2015 apply, the FROB shall ensure that any restrictions imposed in accordance with the competition provided for in Article 70.4 of the Law 11/2015, of 18 June, applies equally to all group entities that are the subject of a particular measure of resolution.

CHAPTER VIII

Group Resolution

Section 1. First Group Resolution Principles

Article 56. General principles concerning the adoption of decisions involving more than one Member State.

By adopting the measures and exercising the powers deriving from Law 11/2015 of 18 June, and of this royal decree, which may have effects on one or more Member States, the supervisory authority and the competent resolution authority take into account the following principles:

a) Efficiency, efficiency and reduction to the maximum possible of the resolution costs.

b) Dip and celerity.

c) Cooperation and coordination in order to ensure the effectiveness of the measures taken and the powers exercised.

d) Respect and clear delimitation of the functions and responsibilities of the authorities of each Member State.

e) Consideration of the interests of the Member States in which the parent undertakings are established, and in particular of the effects of any decision, action or inaction on financial stability, the resources budget, the resolution fund, the deposit guarantee scheme or the investor compensation scheme of those Member States.

(f) Due consideration of the interests of each of the Member States in which a subsidiary is established, and in particular of the effects of any decision, action or inaction on financial stability, on resources budget, in the resolution fund, in the deposit guarantee scheme or in the investor compensation scheme of those Member States.

(g) Consideration of the interests of each of the Member States in which significant branches are located, and in particular of the effects of any decision, action or inaction on the stability of those States members.

h) A proper consideration of the objective of striking a balance between the interests of the various Member States involved and of avoiding unfair prejudice or undue protection of their interests, or an unfair allocation of loads between them.

(i) Any obligation under Law 11/2015 of 18 June, and its implementing rules, to consult an authority before taking measures and to exercise the powers, shall at least involve the obligation to consult such an authority. authority on those elements of the measure or power exercised that they have or may have:

1. effects on the parent entity of the European Union, the subsidiary or the branch; and

2. an impact on the stability of the Member State in which the parent institution of the European Union, a subsidiary or a branch is established or located.

(j) In the event that resolution measures are taken, it takes due consideration and monitoring of the group resolution plans in accordance with the provisions of Articles 13 and 14 of Law 11/2015 of June 18, unless the resolution authorities conclude, in the light of the circumstances of the case, that the resolution objectives will be more effectively achieved by adopting measures that are not foreseen in those plans.

k) Transparency, provided that a decision or faculty may have implications for financial stability, budgetary resources, the resolution fund and the deposit guarantee system or the compensation system investors in any Member State concerned.

l) Recognition that coordination and cooperation will most likely result in a reduction in the overall cost of a resolution.

Article 57. Colleges of resolution authorities.

1. When acting as an executive decision-making authority at the group level, the FROB, in collaboration with the competent preventive resolution authority, shall constitute colleges of resolution authorities carrying out the duties provided for in the Articles 14, 16, 18, 20.3 and 44 of Law 11/2015, of June 18.

In any case, the FROB and the competent preventive resolution authority shall cooperate and coordinate with the resolution authorities of third countries to participate in the colleges of resolution authorities which are constitute.

2. The colleges of resolution authorities shall constitute the framework in which the competent supervisory and supervisory authorities shall perform the following tasks:

a) The exchange of relevant information for the development of the group resolution plans, the application of preparatory or preventive measures and the resolution of groups.

b) Developing group resolution plans.

c) The analysis of the evaluation of group resolutionability.

d) The exercise of competencies to address and remove obstacles to the resolutionability of groups.

e) Decision making on the need to establish a group resolution scheme, in accordance with Articles 62 and 63.

f) Getting an agreement on the proposed group resolution scheme.

g) Coordination of public communication of strategies and group resolution schemes.

h) Coordination of the use of funding mechanisms.

(i) The determination of the minimum requirement for own funds and eligible liabilities for consolidated and subsidiary groups.

3. Schools may be used as forums to discuss any issues related to the resolution of cross-border groups.

Article 58. Composition of the colleges of resolution authorities.

1. In the case of Article 57.1, the following authorities shall be members of the colleges of resolution authorities:

(a) The FROB and the competent preventive resolution authority, as regards resolution authorities at the group level. The FROB shall preside over the college of resolution authorities being the primary contact and coordination authority.

(b) The resolution authorities of each Member State in which a subsidiary covered by consolidated supervision is established.

(c) The resolution authorities of the Member States where the parent of the entities referred to in Article 1.2 is established. d) of Law 11/2015, of June 18.

(d) the resolution authorities of the Member States in which significant branches are located.

e) The supervisors of the Member States concerned. Where the competent supervisor of a Member State is not its central bank, the supervisor may decide to accompany a representative of the central bank.

(f) The Ministry of Economy and Competitiveness, and the competent ministries of the Member States concerned, where the resolution authorities of the resolution college are not the competent ministries.

g) The Deposit Insurance Fund of credit institutions, provided for in Royal Decree-Law 16/2011 of 14 October, and the authorities responsible for the deposit guarantee scheme of the Member States, where the the resolution authority of that Member State is a member of the college of resolution authorities.

(h) The European Banking Authority, in accordance with paragraph 3.

2. Where an institution has in a third country a subsidiary or a branch which would have been considered significant if it had been established in the European Union, the resolution authorities of that third country may, at its own request, be invited to participate in the college of resolution authorities as observers, provided that, in the judgment of the group-level resolution authority, they are subject to confidentiality requirements equivalent to those provided for in Article 58 of the Law 11/2015, of June 18.

3. The European Banking Authority shall be invited to attend meetings of the college of resolution authorities without the right to vote.

4. In addition to cases where the FROB and the competent preventive resolution authority are part of the college of resolution authorities as a group-level resolution authority in accordance with the terms set out in paragraph 1.a), participate in the college of resolution authorities, where they are in any of the cases referred to in paragraphs 1 (b), (c) or (d), as well as in any other case provided for in the resolution.

Article 59. Powers and duties of the resolution authority at the group level.

1. As the president of the college of resolution authorities, the FROB shall have the collaboration of the competent resolution authority and shall have the following powers:

(a) Establish rules and procedures governing the operation of the college of resolution authorities, after consultation with other authorities.

b) Coordinate the activities of the college of resolution authorities and the flow of information between the resolution authorities by transmitting to the other authorities of the Member States the information necessary for the exercise of their functions.

c) Call and chair the meetings of the resolution authority college, and report in advance of the celebration of the meetings of the college and its agenda.

d) Notify the members of the college of resolution authorities of the dates of the meetings planned for the purpose of requesting their participation.

e) Deciding which members and observers will be invited to attend each of the meetings of the college of resolution authorities, taking into account the usefulness of their assistance to the college, the importance for the members and Observers of the issues to be discussed and the possible impact on the financial stability of the Member States concerned.

f) Keep the members of the college promptly informed of the results of the meetings and the decisions taken.

2. Members participating in the college of resolution authorities shall cooperate closely.

3. By way of derogation from paragraph 1 (e), the resolution authorities shall be entitled to participate in the meetings of the college of resolution authorities when the matters to be discussed are subject to joint decision or concern an institution. of the group situated in its Member State.

4. In any event, the provisions of Article 58.2 of Law 11/2015 of 18 June 2015 regarding the obligation of confidentiality shall be taken into account.

Article 60. Exemption from the obligation to constitute a college of resolution authorities.

The FROB, as a group-level executive resolution authority, shall not be required to constitute a college of resolution authorities if there are already other groups or colleges with the same functions and subject to the same arrangements for the organisation and participation of the colleges of resolution authorities. In such cases, any reference to the schools of resolution authorities of Law 11/2015, of 18 June, and of its implementing regulations, shall be considered also made to such groups or schools.

Article 61. Schools of European resolution authorities.

1. Where a third-country entity has subsidiaries established in Spain and in other Member States or branches that are considered significant by Spain and by other Member States or by other Member States, the resolution authorities of the States Members in which they are established shall constitute a college of European resolution authorities.

2. Where the subsidiaries or significant branches belong to a financial holding company established in the European Union in accordance with the fourth paragraph of Article 60.2 of Law 10/2014 of 26 June, the Presidency of the College of the European resolution authorities shall be determined in accordance with the provisions of Article 88.3 of Directive 2014 /59/EU of 15 May 2014.

In the event that the consolidated supervision corresponds to a Spanish supervisory authority, the competent executive resolution authority shall be the FROB. The FROB shall preside over the resolution college as the primary contact and coordination authority.

Where the first subparagraph is not applicable, members of the college of European resolution authorities shall elect and appoint the president.

3. By mutual agreement of all parties, the obligation to constitute a college of European decision-making authorities may be exempted if there are other groups or colleges with the same functions and under the same organisation and participation. In such a case, any reference to the European colleges of resolution authorities of Law 11/2015, of 18 June, and of its implementing legislation, shall be considered to be made to such groups or colleges.

Section 2. Group Resolution of Subsidiaries and Resolution

Article 62. Resolution of subsidiaries that are part of a group.

1. If a subsidiary belonging to a group or a financial conglomerate operating in other Member States of the European Union and whose supervision on a consolidated basis does not correspond to the Spanish authorities is to be settled, (a) to declare the opening of a resolution process, the FROB shall notify the resolution authority at the group level to the European Union authority responsible for the consolidated supervision of the group to which the subsidiary belongs, and to the members of the Group resolution authority college, the following information:

(a) The decision that the entity meets the conditions of resolution of Articles 19, and 20 of Law 11/2015, of 18 June.

b) The resolution actions or insolvency measures that the FROB considers appropriate for the entity.

2. In the event that the FROB is the group-level executive decision-making authority, and receives the notification provided for in the previous paragraph by another resolution authority, it shall assess, after consultation with the other members of the college of resolution authorities, the possible impact of the resolution actions and other notified measures, on the group and on the entities of the group of other Member States. In particular, it shall be analysed whether the application of such actions or measures is likely to cause the conditions of resolution to be given in another entity of the group of another Member State.

3. If, in the course of the consultation provided for in the previous paragraph, the FROB considers that the application on the subsidiary of the resolution actions and other notified measures is unlikely to lead to the conditions of resolution being given in another entity of the group of another Member State, the resolution authority responsible for that entity may undertake the resolution actions or other measures it has notified.

Otherwise, the FROB, after consulting the other members of the college of resolution authorities, shall propose, within a period not exceeding 24 hours from the receipt of the notification referred to in paragraph 1, a scheme of group resolution and submit it to the college of resolution authorities. This 24-hour period may be extended with the consent of the resolution authority which initially made the notification.

4. If, on the expiry of a period of 24 hours after the notification provided for in paragraph 1 is made by the resolution authority of a Member State, or the period of time which has been agreed, the FROB, as the resolution authority (b) Executive Director at the level of the group, has not carried out the assessment provided for in paragraph 2, the resolution authority which made such notification may undertake the resolution actions or take the other measures notified.

5. The group resolution schemes referred to in paragraph 3:

(a) They shall take into account and follow the group resolution plans approved in accordance with Article 14 of Law 11/2015 of 18 June, unless the resolution authorities conclude, in the light of the circumstances of the case, that the resolution objectives will be more effectively achieved by adopting actions that are not foreseen in those plans.

(b) Expose the resolution actions to be undertaken by the resolution authorities in relation to the parent entity or to certain entities in the group in order to meet the resolution objectives and the principles referred to in Articles 3 and 4 of Law 11/2015, of 18 June.

c) Specify how resolution actions will be coordinated.

(d) Establish a financing plan that will take into account the group resolution plan, the principles of shared responsibility in accordance with Article 26, and the general principles of mutualisation to which it refers Article 52.

6. Without prejudice to the following paragraph, the FROB, together with the resolution authorities responsible for the subsidiaries covered by the group resolution scheme, shall adopt a joint decision on which it shall be approved. schema.

The FROB, as well as the other resolution authorities, may request the assistance of the European Banking Authority for the purpose of reaching a joint decision in accordance with Article 31 (c) of the Regulation (EU) Number 1093/2010 of 24 November 2010.

7. Where the FROB decides or departs from the group resolution scheme proposed by the resolution authority at the group level or considers it necessary, for reasons of financial stability, to take actions or measures other than the proposals in the scheme, set out in detail the reasons for which it disagrees or deviates from the scheme, shall notify the resolution authority at the level of the group and the other resolution authorities, and shall communicate to those authorities the actions or measures to adopt.

By stating the reasons for which you disagree, the FROB or other resolution authority shall take into account the content of the resolution plans and the possible impact on the financial stability of the Member States that it is treat, as well as the potential effects of actions or measures on other parts of the group.

8. In the event that it does not feel, the FROB, together with the other non-dissident resolution authorities, will be able to reach a joint decision on a group resolution scheme that will apply to the entities of the group that are located in Spain and in the Member States of the other non-dissident resolution authorities.

9. The joint decision referred to in paragraphs 6 and 8 and the decisions taken by the resolution authorities in the absence of a joint decision under paragraph 8 shall be binding and shall be applied by the FROB.

10. The FROB shall carry out without delay all the actions set out in this Article, taking due account of the urgency of the situation.

11. In the event that a group resolution scheme is not implemented, but resolution measures are taken in relation to any entity in the group, the FROB shall cooperate closely with the college of resolution authorities at last. to achieve a coordinated resolution strategy for all entities in the group.

12. The FROB, when undertaking any resolution measure in relation to any group entity, shall report on a regular and complete basis to the members of the college of resolution authorities on such actions or measures and on the progress of the same.

13. In the event that the FROB is not the group-level resolution authority, it shall exercise the functions and rights that correspond to it as a member of the college of resolution authorities or equivalent body.

14. For the purposes of this Article and the following is defined by group resolution scheme as defined in Article 2.1. (45) of Directive 2014 /59/EU of 15 May 2014.

Article 63. Group resolution.

1. Where the FROB, as a group-level resolution authority, in collaboration with the competent preventive resolution authority, considers that a parent institution of the European Union of which it is responsible meets the conditions of resolution, notify the competent supervisor on a consolidated basis and the other members of the college of resolution authorities without delay of the information referred to in Article 62.1.a) and b).

The resolution actions or other measures to be taken for the purposes of Article 62.1.b) may include the application of a group resolution scheme drawn up in accordance with Article 62.5 in any case. of the following circumstances:

(a) Where it is likely that resolution actions or other measures at the level of the parent entity notified in accordance with the provisions of Article 62.1.b are adopted, the conditions of resolution may be given in a entity of the group of another Member State.

(b) Where the adoption of resolution actions or other measures only at the level of the parent entity is not sufficient to stabilise the group's situation or is unlikely to lead to an optimal outcome.

(c) Where, according to the resolution authorities responsible for the subsidiaries, one or more subsidiaries comply with the conditions of resolution.

d) In the event that the application of the group resolution scheme is more beneficial for the subsidiaries of the group.

2. Where the action proposed by the FROB, as a group-level executive resolution authority, does not include a group resolution scheme, the FROB shall take its decision after consulting the members of the college of resolution authorities. This decision shall:

(a) To take into account and respect the provisions of the resolution plans unless the FROB, together with the other resolution authorities, considers, having regard to the circumstances of the case, that the objectives of the resolution may be be more effectively achieved through actions not foreseen in those plans.

(b) Take into account the financial stability of the Member States concerned.

3. Where the actions proposed by the FROB, as a group-level executive resolution authority, include a group resolution scheme, it shall take the form of a joint decision of the resolution authorities.

The FROB, as well as the other resolution authorities, may request the assistance of the European Banking Authority for the purpose of reaching a joint decision, in accordance with Article 31.c) of Regulation (EU) No 1093/2010.

4. Where the FROB decides or departs from the group resolution scheme proposed by the resolution authority at the group level or considers it necessary, for reasons of financial stability, to take actions or measures other than the proposals in the plan, set out in detail the reasons for which it disregards or depart from the group resolution scheme, notify the resolution authority at the group level and the other resolution authorities, and communicate to those authorities the actions or measures to be taken.

By stating the reasons for which you disagree, the FROB or other resolution authority shall take into account the content of the resolution plans and the possible impact on the financial stability of the Member States that it is treat, as well as the potential effects of actions or measures on other parts of the group.

5. In the event that it does not feel, the FROB, together with the other non-dissident resolution authorities, will be able to reach a joint decision on a group resolution scheme that will apply to the entities of the group that are located in the Spain.

6. The joint decision referred to in paragraphs 3 and 5 and the decisions taken by the resolution authorities in the absence of a joint decision under paragraph 4 shall be binding and shall be applied by the FROB.

7. The FROB shall carry out without delay all the actions set out in this Article, taking due account of the urgency of the situation.

8. In the event that a group resolution scheme is not implemented, but resolution measures are taken in relation to any entity in the group, the FROB will work closely with the college of resolution authorities at the end of the achieve a coordinated resolution strategy for all entities in the affected group.

9. The FROB and the other resolution authorities undertaking any resolution measures in relation to any group entity shall report on a regular and complete basis to the members of the college of resolution authorities on such a resolution. actions or measures and the progress of actions.

10. In the event that the FROB is not the group-level resolution authority, it shall exercise the functions and rights that correspond to it as a member of the college of resolution authorities or equivalent body.

CHAPTER IX

Agreements with third countries

Article 64. Agreements with third countries.

1. Bilateral agreements may be concluded with third countries which provide for the modalities of cooperation between the respective resolution authorities, for the purposes, inter alia, of sharing information on recovery planning and resolution of entities operating in Spain and in third countries, all in full compliance with the provisions of Article 58.2 of Law 11/2015 of 18 June. These agreements shall be given in particular in the following cases:

(a) where the parent entity of a third country has subsidiaries or branches in Spain that are considered significant, or

(b) where a parent institution established in Spain has subsidiaries or branches in third countries.

2. The agreements referred to in this Article shall aim in particular to ensure the establishment of cooperation mechanisms and systems between the FROB and the competent preventive resolution authority, and the relevant authorities of the third country for the implementation of the tasks and the exercise of the powers referred to in Article 68.

3. The agreements referred to in this Article shall not contain provisions addressed to individual entities.

4. The agreements provided for in this Article may be concluded until an international agreement concluded by the Council of the European Union on cooperation between the resolution authorities and the competent authorities of the Member States has entered into force. third countries, and to the extent that such agreements are not contrary to the provisions of this Chapter and Chapter VII of Law 11/2015 of 18 June.

Article 65. Recognition and enforcement of third country resolution procedures.

1. Where there is a college of European resolution authorities established in accordance with Article 61, the latter shall take a joint decision on the recognition of the procedures for the resolution of a third-country authority. with respect to an entity in that country which:

(a) has significant subsidiaries or branches in Spain and in at least one other Member State

or

(b) holds assets, rights or liabilities located in Spain and in at least one other Member State, or governed by Spanish and other Member States ' legislation.

When a joint decision is reached on the recognition of third country resolution procedures, the FROB shall ensure that the procedures for the resolution of recognised third countries are implemented, in accordance with the to Spanish legislation.

2. In the absence of a joint decision between the resolution authorities participating in the college of European resolution authorities, or in the absence of a college of European resolution authorities, the FROB, taking into account the legislation It shall adopt its own decision on the recognition and enforcement of third country resolution procedures.

This decision shall take due account of the interests of the other Member States concerned and in particular their impact on the other parts of the group and on the financial stability of those Member States.

3. For the purposes of this Article, the FROB may:

(a) Exercise the powers of resolution in relation to:

1. º The assets of the entity of a third country located in Spain, or governed by Spanish law.

2. º The rights or liabilities of an entity of a third country, which are accounted for in a Spanish branch or governed by Spanish law, or which are enforceable under Spanish law.

(b) Run transmissions of shares or other capital instruments in a subsidiary established in Spain, or require another person to do so.

(c) exercising the powers referred to in Article 70 of Law 11/2015 of 18 June, in relation to the rights of any party to a contract with an entity referred to in paragraph 1, where the exercise of those powers is necessary to implement the procedures for the resolution of the third country.

(d) Prevent the termination, settlement, declaration of the anticipated maturity of contracts, or prevent any other exercise of the contractual rights, in relation to the entities referred to in paragraph 1; and other group entities, where such right or exercise concerns the entity of the third country or other group entities, and emanates from a resolution measure undertaken by the resolution authority of the third country or subject to the right of the third country; and provided that the substantive obligations of the contract, in particular the obligations, continue to be fulfilled payment and delivery and the provision of guarantee assets.

4. Where necessary for reasons of public interest, the FROB may undertake a resolution measure in relation to a parent entity when the relevant authority of a third country determines that an entity in the group of that parent entity that is has been established in that third country and meets the conditions for the resolution under its legislation. For such purposes, the FROB shall be entitled to exercise any resolution jurisdiction with respect to that parent entity, and Article 70 of Law 11/2015 of 18 June 2015 and Article 66 of this royal decree shall apply.

5. The recognition and enforcement of the third country's resolution procedures shall not affect the national rules applicable to the procedures in question.

6. This Article shall not apply at the time when the Council of the European Union, in the exercise of its powers, has concluded an international agreement with a third country in accordance with Article 64.4. Once such an agreement has been concluded, this Article shall apply only to the extent that the agreement does not regulate the recognition and enforcement of the third-country resolution procedures.

Article 66. The right to refuse recognition or enforcement of third country resolution procedures.

The FROB, after consulting other resolution authorities when a college of European resolution authorities has been established in accordance with Article 61, may refuse to recognise or execute the resolution procedures third countries, where you consider that:

(a) the third-country resolution procedures shall have a detrimental effect on the financial stability of Spain, or adversely affect the financial stability of another Member State,

b) it is necessary to adopt an independent resolution measure in accordance with Article 67 in relation to a Spanish branch, in order to achieve one or more resolution objectives,

(c) creditors and, in particular, depositors who are located or may receive payments in Spain, will not receive the same treatment as the creditors and depositors of the third country with similar legal rights, if they are subject to procedures for the resolution of that third country,

(d) the recognition or enforcement of the third country's resolution procedures shall have a significant budgetary impact for Spain

or

e) the effects of such recognition or enforcement are contrary to national law.

Article 67. Resolution of branches of third-country entities.

1. The FROB may act in relation to a branch located in Spain where it is not subject to the procedures for the resolution of a third country or when it is subject to the procedures for the resolution of a third country and some of the the circumstances referred to in Article 66.

It will be applicable in the case provided for in the previous paragraph, the provisions of article 70 of Law 11/2015, of June 18, and in article 66 of this royal decree.

2. The FROB may exercise the powers referred to in paragraph 1 where it considers that an action is necessary for reasons of public interest and one or more of the following conditions are met:

(a) that the branch does not already, or is likely to fail, comply with the legally enforceable requirements for obtaining authorisation and functioning in Spain, and there is no prospect of any other private sector measure, monitoring or the third country would restore the compliance of the branch or prevent its infeasibility within a reasonable time.

b) That, according to the criteria of the FROB, the entity of the third country does not have the will of, or is impossible to, or could become impossible, to liquidate its obligations towards the creditors of Spain, or to liquidate the obligations established or registered by the branch at the time of its expiry, and which consists of the FROB which have not been initiated and are not to be opened insolvency or resolution proceedings of the third country in relation to such entity within a period of time reasonable.

(c) The relevant authority of the third country has initiated resolution procedures with the entity, or has notified the Spanish resolution authority of its intention to initiate them.

3. Where the FROB undertakes an independent action in relation to a branch located in Spain, it shall take into account the objectives of the resolution and shall take the action taking into account the following principles and requirements, if they result from:

(a) the principles set out in Article 4 of Law 11/2015, of 18 June, and

(b) the requirements relating to the application of the resolution instruments of Chapter V of Law 11/2015, of 18 June.

Article 68. Cooperation with the authorities of third countries.

1. The supervisors and the competent resolution authorities shall, where appropriate, conclude non-binding cooperation agreements with the relevant authorities of third countries referred to in paragraph 4, in line with the framework agreements of the European Banking Authority.

This Article shall not prevent the conclusion of bilateral or multilateral agreements with third countries in accordance with Article 33 of Regulation (EU) No 1093/2010.

2. Cooperation agreements concluded under this Article between the competent supervisory and resolution authorities and the resolution authorities of third countries may include provisions on the following matters:

a) The exchange of information necessary for the elaboration and management of resolution plans.

(b) The consultation and cooperation necessary for the development of resolution plans, including a reference to the principles for the exercise of the powers referred to in Articles 65 and 67 or equivalent powers provided for in the legislation of the third countries concerned.

c) the exchange of information necessary for the implementation of the resolution instruments and the exercise of the powers of resolution, and equivalent powers provided for in the rules of third countries affected.

d) Early warning and consultation between the parties to the cooperation agreement before taking any significant action under Law 11/2015 of 18 June and this royal decree, as well as the applicable law of the third countries concerned.

e) The coordination of public communication, in the case of joint resolution actions.

(f) The procedures and arrangements for the exchange of information and cooperation as referred to in points (a) to (e), including, where appropriate, the establishment and implementation of crisis management groups.

3. The European Banking Authority shall be notified of any cooperation agreement which the resolution authorities and the competent supervisors have concluded under this Article.

4. Non-binding cooperation agreements concluded by the competent supervisory and resolution authorities shall respect the non-binding framework agreements for cooperation which the European Banking Authority concludes with the following authorities of the European Union. third countries:

(a) Where a subsidiary is established in Spain and in another Member State or other Member State, with the relevant authorities of the third country in which the parent institution is established.

(b) Where a third-country entity operates one or more branches located in Spain and in another Member State or other Member State, with the relevant authority of the third country in which that entity is established.

(c) Where an parent institution established in Spain with a subsidiary or a significant branch in another Member State also has one or more subsidiaries in third countries, with the relevant authorities of third countries in which those subsidiaries are established.

(d) Where a Spanish entity having a subsidiary or a significant branch in another Member State has established one or more branches in one or more third countries, with the relevant authorities of third parties countries in which such branches are located.

5. The participating authorities shall exchange the necessary information and make the necessary efforts to implement the cooperation agreements in good faith and in the intended terms. In particular, they shall cooperate on the following

:

a) Development of resolution plans in accordance with Articles 13 and 14 of Law 11/2015 of June 18, and the equivalent legislation of third countries.

(b) The assessment of the resolutionability of such entities and groups in accordance with Articles 15 and 16 of Law 11/2015 of 18 June 2015 and the equivalent legislation of third countries.

(c) Application of powers to address or remove obstacles to the resolution in accordance with Articles 17 and 18 of Law 11/2015 of 18 June 2015 and the equivalent legislation of third countries.

d) Implementation of early action measures in accordance with Articles 8 to 12 of Law 11/2015 of 18 June, and the equivalent legislation of third countries.

e) Implementation of the resolution and exercise of the resolution powers, in accordance with the Spanish legislation and the equivalent legislation of third countries.

6. This Article shall not apply at the time when the Council of the European Union, in the exercise of its powers, has concluded an international agreement with a third country in accordance with Article 64.4. Once such an agreement has been concluded, this Article shall apply only to the extent that the agreement does not affect the matters referred to in this Article.

Additional disposition first. Single Resolution Mechanism and Single Resolution Fund.

This royal decree shall be applied in a manner compatible with Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014, as the provisions of this Regulation enter into force in accordance with the provisions of this Regulation. provided for in Article 99.

Additional provision second. Financial institutions and other types of companies.

This royal decree will apply to the entities and companies provided for in Article 1.2.b), c) and d) of Law 11/2015, of June 18, to the extent necessary to make fully effective the objectives and principles of the resolution provided for in Articles 3 and 4 of that law, and to give strict compliance with the provisions of Directive 2014 /59/EU of 15 May 2014. In particular, the provisions of Articles 4 to 10, 11, 13, 15, 26, 27, 28, Chapter V, 44, 45, 46, 47, 54, 55, 62, 63, 68 of this royal decree shall apply without prejudice to those other precepts of the royal decree whose literality includes or require their application to these entities and companies.

Additional provision third. Management, settlement and collection of the fee for the activities carried out by the FROB as the resolution authority.

1. In accordance with the provisions of Section 8 of Law 11/2015 of 18 June 2015, the FROB shall adopt the agreements and approve the forms, models and instructions necessary to carry out its tasks. management, settlement and collection of the fee for the activities that you perform as the resolution authority.

2. The FROB shall proceed to the settlement of the fee simultaneously to the settlement of the contributions that the institutions are required to make in accordance with the provisions of the second provision and the fourth additional provision. 2, of Law 11/2015, of June 18.

3. The entities shall make the payment within the time limits provided for in Article 62 of Law 58/2003 of 17 December, General Tax.

4. The provisions of Law 58/2013 of 17 December 2013 and the General Rules of Collection, approved by Royal Decree 939/2005 of 29 July

shall apply, on an additional basis, to the provisions of Law 58/2013.

First transient disposition. Transitional arrangements for contributions to the National Resolution Fund and the Deposit Insurance Fund.

1. In relation to the National Resolution Fund, the FROB shall collect the ordinary contribution corresponding to the institutions for the financial year 2015, with the deadline of 31 December 2015.

2. In accordance with Article 6.3 of Royal Decree-Law 16/2011 of 14 October, the Management Committee of the Deposit Insurance Fund shall determine the annual volume of the contributions to the deposit guarantee compartment which the entities shall provide during the period provided for in the transitional provision fourth of Law 11/2015 of 18 June.

Second transient disposition. References to the recast text of the Securities Market Law, approved by the Royal Legislative Decree 4/2015 of 23 October.

1. Until the entry into force of the recast text of the Law of the Market of Values, approved by the Royal Legislative Decree 4/2015, of October 23, the reference made in this royal decree to that rule should be understood as referring to the Law 24/1988, of July 28, of the Stock Market, as appropriate.

2. Specifically, the mapping of the items is as follows:

(a) In Article 5.6, the reference to Article 233 of the recast text of the Securities Market Act is to be read in accordance with Article 84 of Law 24/1988 of 28 July.

(b) In Article 12 (5), the references made to Articles 260 and 261 of the recast of the Law on the Market in Securities, respectively, are to be construed as references to Articles 87 and 87 of the Law 24/1988, July 28.

(c) In Article 16.g) the references made to Title VIII and to Article 261 of the recast text of the Securities Market Act shall be construed as references to Title VIII and Article 97 nonies of the Act, respectively. 24/1988, July 28.

(d) In Article 31.1, the references made to Articles 260 and 261 of the recast of the Law on the Market in Securities, respectively, are to be construed as references to Articles 87 and 87 of the Law 24/1988, July 28.

(e) In Article 31.2.j), the reference to Title VII, Chapter I, of the recast text of the Securities Market Act, is to be construed as references to Chapter I of Title VII of Law 24/1988 of 28 July.

(f) In Article 32.2.h), the reference made to Title VII, Chapter I, of the recast text of the Securities Market Act, should be construed as references to Chapter I of Title VII of Law 24/1988 of 28 July.

g) In Article 47.5, the reference made to Article 260 of the recast text of the Securities Market Act, should be construed as references to Article 87 octies of Law 24/1988 of 28 July.

h) In the first, first, third, second subparagraph, first paragraph, the reference to the recast text of the Securities Market Act must be understood as a reference to Law 24/1988 of 28 July.

(i) In the first, third subparagraph, first subparagraph, third subparagraph, the reference made to Article 2 of the recast text of the Securities Market Act must be construed as references to Article 2 of Law 24/1988, of 28 July.

Final disposition first. Amendment of Royal Decree 2606/1996 of 20 December 1996 on deposit guarantee funds for credit institutions.

Royal Decree 2606/1996 of 20 December 1996 on deposit guarantee funds for credit institutions is amended as follows:

One. Article 3 is worded as follows:

" Article 3. Assets of the Credit Entities Deposit Insurance Fund.

1. Entities attached to the Deposit Insurance Fund of Credit Entities are required to comply with the economic regime of annual contributions and debranches as provided for in paragraphs 2 and 5, so that the Fund can comply with the obligations vis-à-vis depositors and investors imposed on this rule.

2. The Management Commission shall determine the annual contributions of the entities assigned to the Deposit Insurance Fund of Credit Entities, taking into account the criteria set out in Article 6 of the Royal Decree-Law 16/2011 of 14 October 2001. the Credit Entities Deposit Insurance Fund is created. To this end, the basis for the calculation of the contributions to be made by the entities to each compartment of the Fund shall be:

(a) In the case of contributions to the deposit guarantee compartment, the guaranteed deposits as defined in Article 4.1.

(b) In the case of contributions to the securities guarantee compartment, 5 per 100 of the trading value of the last trading day of the year, on the relevant secondary market, of the guaranteed securities, as defined in Article 4.2, existing at the end of the financial year. Where securities and financial instruments not traded on a secondary, Spanish or foreign market are included among the latter, their calculation basis shall be given either by their nominal value or by the value of the reimbursement, which is more appropriate than the type of value or the financial instrument concerned, unless otherwise more significant value has been declared or is recorded for the purposes of its deposit or registration.

3. The annual contributions of the entities under consideration shall be made to cover the needs arising from the functions assigned to the Fund's compartments and shall be entered in the accounts designated by the Management Committee from the date of the closure of each financial year, in one or more disbursements, in the light of the needs of the Fund and within the time limits set by the Management Committee.

However, and without prejudice to the provisions of the following paragraph, the annual surplus and any other surplus in the equity of the Fund on the amount necessary for the fulfilment of its purposes shall remain in that Fund. assets without their distribution or return to the attached entities.

4. Where the available financial resources of a Fund compartment are sufficient to meet their objectives, the Minister for Economic Affairs and Competitiveness, acting on a proposal from the Bank of Spain, may agree to the reduction of the contributions referred to in paragraph 1 of this Article. In any event, in accordance with Article 6.6 of Royal Decree-Law 16/2011 of 14 October, contributions to a compartment shall be suspended where the available financial resources of the compartment equal or exceed 1% of the amount guaranteed by that compartment. This circumstance shall be communicated by the Management Committee in the manner in which it is established.

By way of derogation from the preceding subparagraph, contributions to the deposit guarantee compartment shall not be suspended when the available financial resources of this compartment are lower than the target level. established in Article 6.4 of Royal Decree-Law 16/2011 of 14 October.

5. Where the available financial resources are insufficient to make payments to depositors or to investors, the Management Committee may agree to the holding of branches between the entities assigned, which shall be distributed on the basis of calculation of the contributions referred to in paragraph 1.

Notwithstanding the foregoing paragraph, the total amount of the contributions may not exceed:

(a) In the case of the deposit guarantee compartment, 0,5 per cent of the deposits guaranteed per calendar year, unless authorised by the Bank of Spain. The Bank of Spain may also defer in full or in part the obligation of a credit institution to pay the spill when this contribution endangers the liquidity or solvency of the institution. This extension may not be granted for more than six months but may be renewed at the request of the institution. In any event, the Bank of Spain shall not grant the deferral or the extension where it provides that the institution may not be able to meet its contributions.

b) In the case of the securities warranty compartment, the amount required to eliminate the resource insufficiency.

6. Contributions made to the deposit guarantee compartment under paragraph 2 in the last 12 months by a credit institution transferring its business to another Member State of the European Union and falling under another system the deposit guarantee shall be transferred to that deposit guarantee scheme in proportion to the amount of the secured deposits transferred.

By way of derogation from the preceding subparagraph, in no case shall the contributions made to the deposit guarantee compartment be transferred pursuant to paragraph 5.

7. The non-committed assets of the Fund shall be invested in a diversified and active manner in the first or second categories of Table 1 of Article 336 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013, on the prudential requirements of credit institutions and investment firms, and amending Regulation (EU) No 648/2012 or by assets deemed safe and liquid by the Management Commission.

8. The Credit Entities Deposit Insurance Fund shall inform the European Banking Authority annually, before 31 March, of the amount to which the guaranteed deposits and financial resources amount to 31 December of the previous year. available from the Fund's deposit guarantee compartment. '

Two. A new Article 3a is added with the following wording:

" Article 3a. Allocation to each compartment of costs, expenses and general obligations.

In accordance with Article 6.2 of Royal Decree-Law 16/2011 of 14 October, the costs, expenses and obligations that have not been allocated to any compartment shall be distributed as follows:

(a) Corresponding to the deposit guarantee compartment an amount equal to the total amount of those costs, expenses or obligations multiplied by the basis of calculation of contributions to this compartment and divided by the sum of the basis for the calculation of the contributions to the two compartments.

(b) A value equal to the total amount of those costs, expenses or obligations multiplied by the basis of calculation of contributions to this compartment and divided by the sum of the securities shall be equal to the total amount of such costs. the basis for the calculation of contributions to the two compartments. '

Three. Article 4 (1) and (4) shall be worded as

:

" 1. For the purposes of this royal decree, the consideration of eligible deposits shall be the account balances held, including funds from transitional situations for traffic operations and excluding those deposits. referred to in paragraph 4, that the institution has an obligation to reinstate in the applicable legal and contractual conditions, whatever the currency in which they are nominated and provided that they are constituted in Spain or another Member State of the European Union, including fixed term deposits and savings deposits. The share of such deposits that does not exceed the coverage levels set out in Article 7 shall be considered as guaranteed deposits.

Among the funds coming from transitional situations, as referred to in the preceding paragraph, will be included, in any case, the money resources entrusted to the institution for the performance of a service of investment, in accordance with the recast text of the Securities Market Act, or arising from the provision of such services or activities.

They will not have the consideration of deposits for the purposes of this royal decree the creditor balances in which one of the following circumstances exists:

(a) Its existence can only be tested by means of a financial instrument provided for in Article 2 of the recast text of the Securities Market Law, approved by the Royal Legislative Decree 4/2015, of 23 October. They do not therefore have the consideration of deposits for temporary disposals of assets and certificates of deposit to the bearer.

b) If the principal is non-refundable at face value.

(c) If the principal is only repayable at face value with a guarantee or special arrangement of the credit institution or a third party.

4. No eligible deposits shall be considered for the purposes of this royal decree and shall therefore be excluded from the coverage of the Credit Entities Deposit Insurance Fund:

(a) deposits made by other credit institutions on their own account and on their own behalf, as well as those made by the following subjects and financial institutions:

1. Corporate and securities agencies.

2. º The insurance entities.

3. Corporate investment companies.

4. The management companies of collective investment institutions, as well as pension fund management companies, securitisation and venture capital funds and the deposits of the entities they manage.

5. The portfolio management companies and financial advisory companies.

6. The venture capital companies and their corresponding management companies.

7. No other financial institution as defined in Article 4.1.26 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013.

(b) The institution's own funds as defined in Article 4.1.118 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013, irrespective of the amount by which they are calculated as such.

(c) The representative debt securities issued by the credit institution, including promissory notes and marketable effects.

(d) deposits the holder of which has not been identified, in accordance with the provisions of Law 10/2010 of 28 April, preventing money laundering and terrorist financing, or having their origin in operations which have been the subject of a criminal conviction for the offence of money laundering.

e) deposits made up of the entity by the Public Administrations with the exception of those made up of local entities with an annual budget equal to or less than EUR 500,000.

No guaranteed values for the purposes of this royal decree shall be considered to be those of which the persons referred to in paragraphs (a) and (e) above are entitled. "

Four. Article 5 is worded as follows:

" Article 5. Attachment to the Credit Entities Deposit Guarantee Fund.

1. The Spanish credit institutions, with the exception of the Institute of Official Credit, shall adhere to the compartments of the Credit Entities Deposit Insurance Fund.

2. Branches of foreign credit institutions shall have the following scheme:

(a) Branches of credit institutions authorised in another Member State of the European Union may join the securities guarantee compartment.

b) branches of credit institutions authorised in a non-member country of the European Union shall have the following scheme:

1. ° Your attachment to the deposit or securities guarantee compartment of the Credit Entity Deposit Insurance Fund shall be required when the deposits secured or when the securities are secured entrusted to the branch respectively are not covered by a guarantee scheme in the country of origin.

2. ° To be attached to the corresponding compartment of the Deposit Insurance Fund of Credit Entities to cover the difference in level or scope when the guarantee of the country of origin system is less than the covered by that, whether in respect of the deposits, in respect of the guaranteed securities.

3. ° Your attachment to the corresponding compartment of the Credit Entity Deposit Insurance Fund shall not be required when deposits or guaranteed securities are subject to a level of coverage equal to or higher in the country of origin. The securities guarantee compartment shall also not be required when the institution does not provide investment services in Spain.

For the purposes of determining the case for each branch, they shall, where appropriate, prove the coverage provided by the guarantee scheme of their country of origin.

3. The Deposit Insurance Fund of Credit Entities shall cooperate with the deposit guarantee schemes of other countries in order to organize, where appropriate, the payment of the guaranteed amounts. To this end, it may establish the conventions and collaboration mechanisms it deems appropriate.

The Fund shall notify the European Banking Authority of the agreements reached with deposit guarantee schemes in other Member States of the European Union and the content thereof. The Fund may also request assistance from the European Banking Authority in order to resolve the impediments to reaching agreements or differences in the interpretation of agreements in accordance with Article 19 of Regulation (EU) No 139/2014. Regulation (EC) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716 /2009/EC and repealing Commission Decision 2009 /78/EC.

4. The Management Committee shall insert into the ' Official Journal of the State, annually, the relationship of the entities attached to each compartment of the Fund.

5. With the exception of Article 3.6, institutions which, for any reason, cause a loss as members of the Fund, shall pay the Fund the amounts outstanding for annual contributions and approved branches and shall not be entitled to the Fund. return of the amounts provided to them. "

Five. A new Article 5a is added with the following wording:

" Article 5a. Information to depositors.

1. Credit institutions operating in Spain shall make available to their depositors and potential and potential investors, in all their offices and on their website in an easily understandable and accessible form, the information necessary to identify the deposit guarantee fund to which they belong. Such information shall in any event include the name, venue, telephone number, internet address and e-mail address, as well as the provisions applicable to it, specifying the amount and scope of the cover offered. To report on the deposit guarantee, the information sheet in the Annex shall be used.

Credit institutions operating under different trade names will clearly inform their depositors of this fact and that the level of coverage set out in Article 7.1 applies to aggregate deposits. that the depositor maintains in the credit institution. This information shall be included in the information to the depositor referred to in this Article and in the Annex.

In the case of deposits or securities that are not guaranteed under the provisions of Article 4.4, institutions shall report to their depositors and investors.

If the depositor or investor so requests, you will also be informed of the necessary conditions for the payment of the guaranteed amount and the formalities necessary for your payment.

Also, institutions shall keep publicly available information on the characteristics of the fund to which they are attached and shall indicate, where appropriate, the coverage offered by foreign systems or funds. In particular, they shall specify the coverage regime for the deposit or securities registration assumptions in other financial institutions.

Without prejudice to the foregoing paragraphs of this paragraph, institutions integrated into the Fund may not use their membership in their advertising, but may include a mention to the Fund. add other data or information on the Fund.

2. Prior to the conclusion of a deposit contract, institutions shall provide the depositors with the information referred to in the previous paragraph and shall acknowledge receipt of such information.

3. Confirmation that the deposits are not excluded from the guarantee shall be transmitted to the depositors in their statements of account, which shall include a reference to the information sheet in the Annex. This information sheet shall be transmitted to the depositor at least once a year.

4. The information necessary for depositors shall be collected on the website of the Deposit Insurance Fund of Credit Entities, in particular the information concerning the provisions on the procedure and the conditions of the deposit guarantees.

5. In the event of a merger, division, transformation of subsidiaries into branches or similar transactions, credit institutions shall inform depositors at least one month before the transaction takes effect, unless the Bank of Spain permits a shorter term for reasons of commercial secrecy or financial stability.

depositors shall have three months after the notification of the merger or transformation or similar transaction, to withdraw or transfer to another credit institution, without any cost, their eligible deposits, including all accrued interest and profits made up to the time of the transaction.

6. If a credit institution withdraws or is excluded from a deposit guarantee scheme, that credit institution shall inform its depositors in this respect within one month of its withdrawal or exclusion.

7. If a depositor carries out his banking operations over the Internet, the information to be provided under this Article may be electronically communicated to him, unless the depositor expressly requests that he be notified on paper. printed. "

Six. Article 7 is worded as follows:

" Article 7. Scope of the amount of the secured deposits.

1. The guaranteed amount of deposits shall be limited to the amounts set out in Article 10.1 of the Royal Decree-Law 16/2011 of 14 October. The security shall meet the interest accrued but shall not be paid until the date on which the facts referred to in Article 8.1 are produced without, in any event, exceeding the limits referred to in Article 10.1.

2. The debts of the depositor in respect of the credit institution shall not be taken into account for calculating the repayable amount unless the date of enforceability of such debts is prior to or equal to the reference dates provided for in the preceding paragraph and the legal and contractual provisions governing the contract between the credit institution and the depositor so provide for it.

In any event, credit institutions shall duly inform depositors, prior to the conclusion of the contract, of when their debts to the institution will be taken into account when calculating the guaranteed amount of agreement with the provisions set out in the previous paragraph.

3. In the case of non-euro-denominated deposits, the amount guaranteed shall be its equivalent applying the exchange rates of the day on which one of the facts referred to in Article 8.1 of this royal decree or the preceding business day occurs when it is holiday.

4. The guarantees provided for in this Article shall be applied by depositor, whether natural or legal person and whatever the number and class of cash deposits in which it is listed as the holder in the same entity. This limit shall also apply to depositors holding deposits of higher than the maximum guaranteed amount.

5. Where an account has more than one holder, its amount shall be divided between the holders, in accordance with the provisions of the deposit contract and, failing that, equal parts.

6. Where the holders of a deposit act as representatives or agents of third parties, provided that the legal beneficiary has been identified or is identifiable before the circumstances described in Article 8 occur, the coverage of the Fund shall be applied to the third party beneficiaries of the deposit in the appropriate part.

Notwithstanding the foregoing, where the person acting as a representative or agent is an entity of the Fund's coverage excluded pursuant to Article 4.4.a), the deposit shall be deemed to belong to that entity and shall not be covered. for the Fund.

7. Deposits existing at the time of the revocation of the authorisation to an institution under the Fund shall remain covered until the institution's dissolution or liquidation and the institution shall remain obliged to make the legally enforceable contributions. In the case of current accounts, the balance covered shall be that existing at the date of the revocation minus the debits taking place between the said date and the date of the declaration of the assumption which results in the payment of the compensation. '

Seven. A new paragraph 7a is added with the following wording:

" Article 7a. Scope of the amount of the guaranteed values.

1. The amount guaranteed to investors who have entrusted the credit institution with securities or financial instruments shall be independent of the amount provided for in the previous Article and shall reach the maximum amount of EUR 100,000.

The amount shall be calculated at the market value of those securities and instruments on the day on which one of the facts referred to in Article 8.2 of this Royal Decree or on the preceding business day occurs, applying in your case the exchange rate of the day. The amounts secured shall be paid at the equivalent of the cash equivalent.

2. Where the securities and instruments are not traded on an official, Spanish or foreign secondary market, to determine the amount guaranteed, once any of the facts provided for in Article 8 have occurred and only to this process, its value shall be calculated on the basis of the following criteria:

(a) Variable income securities: a theoretical value calculated on the last audited balance sheet to the issuing institution; in the event that there is no audited balance sheet or the audited balance sheet contains any adjustments that may determine a theoretical value less than the result of the accounts, the market value shall be determined by the price.

(b) Fixed income securities: nominal value plus the cash coupon, where the interest rate is explicit, or a refund value updated at the implied type of issue, in the case of zero coupon or discount rate securities.

(c) Financial instruments: estimated market value calculated in accordance with the generally accepted valuation procedures for the instrument in question.

(d) In the case of securities or instruments issued by companies that are in the tender of creditors, the value to be returned will be determined by the end of the procedure, and their determination may be postponed until the end of the procedure. Corresponding insolvency.

3. The guarantees provided for in this Article shall apply to an investor, whether natural or legal person, and any other than the number and class of the financial securities and instruments in which it is listed as the holder in the same entity.

4. Where the securities or financial instruments are the property of more than one holder, their amount shall be divided between the holders, in accordance with the provisions of the securities custody contract and, failing that, in equal parts.

5. Where the holders of a securities deposit act as representatives or agents of third parties, provided that this condition existed before the circumstances described in Article 8 occur, the Fund's coverage shall apply to the third parties benefiting from the deposit of securities in the relevant party.

Notwithstanding the foregoing, where the person acting as a representative or agent is an entity of the Fund's coverage excluded pursuant to Article 4.4.a), the securities deposit shall be deemed to belong to that entity and not will be covered by the Fund.

6. The securities or financial instruments entrusted to the institution at the time of the withdrawal of the authorisation to provide investment services shall cease to be covered by the Fund after three months from the date of the revocation. During this period, the entity shall remain obliged to make the legally enforceable contributions. '

Eight. Article 8 (1) and (2) are amended as follows:

" Article 8. Causes for the execution of the warranty.

1. The Fund, under the deposit guarantee compartment, shall satisfy its holders the guaranteed amount of deposits when any of the following events occur:

(a) That the entity has been declared or is judicially requested for the declaration in the contest of creditors.

(b) That, in the absence of the entity's contest as referred to in the preceding paragraph, and the default of deposits due and payable, the Banco de España determines that, in its opinion and for reasons This is the case, which is directly linked to the financial situation of the institution concerned, which is unable to restore them and does not seem to have any prospect of being able to do so in the immediate future. The Bank of Spain, or the management committee of the Fund, shall resolve as soon as possible and at the latest within five working days after it has established for the first time that the institution has failed to restore expired deposits and (a) to be enforceable, after having given the interested party a hearing, without interruption of the time limit.

2. The Fund, under the securities guarantee compartment, shall satisfy its holders the guaranteed amount of the securities and financial instruments that are eligible for coverage when any of the following events occur:

(a) That the credit institution's tender has been issued by order and that situation leads to the suspension of the return of the financial securities or instruments; however, the payment of those amounts shall not be made if, within the time limit for initiating the disbursement, the above suspension should be lifted.

b) That the Banco de España declares that the credit institution cannot, in the light of the facts of which the Banco de España itself has become aware and for reasons directly related to its financial situation, comply with the the obligations incurred by investors.

For the Banco de España to be able to make this declaration it will be necessary to produce the following circumstances:

(a) The investor would have asked the credit institution to return the securities and financial instruments it had entrusted to it and would not have obtained satisfaction within a maximum of twenty-one working days of that.

(b) The credit institution is not in the position provided for in paragraph 1 (a) of this Article.

c) That the credit institution be given a hearing. "

Nine. Article 9 is worded as follows:

" Article 9. The payment and its effects.

1. Without prejudice to the provisions of Article 4.4:

(a) The deposit guarantee compartment of the Credit Entity Deposit Insurance Fund shall meet duly substantiated claims within seven working days of the date of the deposit. reference as set out in Article 7 bis.1.

The collection and transmission by credit institutions of the exact information on depositors and guaranteed deposits, which is necessary to verify claims, must be made within the time limits laid down in the the previous paragraph.

Payment of the deposits provided for in the first paragraph of this letter may be deferred in any of the following cases:

1. º When there is no certainty about whether a person has legal rights to receive a payment or when the deposit is the subject of litigation.

2. º When the deposit is subject to sanctions that restrict the powers of disposition by its holders.

3. º When no operation has occurred in relation to the repository in the last 24 months.

4. º When, pursuant to the second paragraph of Article 10.1 of Royal Decree-Law 16/2011 of 14 October, the amount to be reimbursed exceeds EUR 100,000.

5. º When, in accordance with paragraph 6, the amount must be paid by the deposit guarantee scheme of the European Union Member State of origin of the branch of a credit institution operating in Spain.

By way of derogation from this point, the deposits referred to in Article 7.6 shall be subject to a payment period of up to three months from the reference dates provided for in Article 7 bis.1.

The deposit guarantee compartment of the Credit Entities Deposit Guarantee Fund will make the corresponding payments without the depositors requesting it. To this end, credit institutions shall transmit all necessary information on deposits and depositors as soon as the Fund so requires. However, the deposit guarantee compartment shall not make any payment if there has been no deposit-related transaction in the last 24 months and the value of the deposit is less than the administrative costs incurred. would be the payment for the Fund.

(b) In addition, the securities collateral compartment of the Credit Entity Deposit Insurance Fund shall satisfy investors ' claims as soon as possible and, at the latest, three months after the date of the deposit. determined the position of the investor and its amount.

When the Deposit Insurance Fund of Credit Entities provides that it cannot make the payments provided for in point (b) within the prescribed period, it may request the Banco de España to grant an extension not exceeding three months, indicating the reasons for the request. The Bank of Spain may authorise it when it appreciates exceptional reasons justifying the delay, such as the high number of investors, the existence of securities entrusted to the institution in other countries or the establishment of extraordinary, technical or legal difficulties to check the effective balance of the securities secured or whether the guaranteed amount should be satisfied.

2. The payment of the guaranteed amounts of the deposits of money and securities or instruments shall not be extended to those effected after the date on which the facts referred to in the previous article or the deposits, investments have occurred. or amounts which have been withdrawn after that date, without prejudice to the provisions of Article 7.1.

3. The Credit Entities Deposit Insurance Fund shall not be eligible for the time limits referred to in the preceding paragraphs to refuse the benefit of a guarantee to a depositor or investor who has not been able to assert his right in time. The unsatisfied amounts, within the time limits set or their carry-overs, shall be made available to the Deposit Insurance Fund of Credit Entities at the disposal of their holders, without prejudice to their prescription in accordance with the law. However, if the claims to be made by the depositors or investors in execution of the guarantee were made after the satisfaction of the depositors or investors of any amount agreed upon in an eventual insolvency proceedings, the determination of the amount to be satisfied under the guarantee shall take into account the amount already received in the said procedure, in order to ensure that the depositors or investors do not gain an advantage or suffer economic detriment in the relationship to those who executed the warranty at an earlier time.

4. For the sake of the payment of the guaranteed amounts, the Deposit Insurance Fund of Credit Entities shall be subrogated, by the Ministry of the Law, in the rights of the depositors or investors, up to an amount equal to that of the payments The document in which the payment is made is sufficient.

5. In the event that the securities or other financial instruments entrusted to the institution are restored by the entity after payment of a guaranteed amount, the Deposit Insurance Fund of Credit Entities may resarcirse from the amount satisfied, in whole or in part, if the refund, as assessed in accordance with Article 7.1 at the time of the refund, is greater than the difference between the amount of the securities or other instruments that were entrusted to the institution; measured at the time when the facts referred to in Article 8.2 were produced, and the amount paid to the investor. Where the value of the return is greater than that of the securities and instruments, calculated on the date referred to in Article 8.2, the excess shall be distributed between the Fund and the investor on a pro rata basis.

The refund will be made to the Credit Entities Deposit Guarantee Fund, who will give to the investor the amounts corresponding to the provisions of the preceding paragraph, the Fund being authorized, end, in order to dispose of the values in the amount resulting from it.

6. The Deposit Insurance Fund of Credit Entities shall, on behalf of the deposit guarantee scheme of the State of the European Union of origin and in accordance with the instructions of the State, make payments corresponding to the depositors of the branches of credit institutions from other Member States of the European Union established in Spain. The Fund shall also inform the depositors concerned on behalf of the deposit guarantee scheme of the Member State of the European Union of origin, and may receive the correspondence of such depositors on behalf of the guarantee system of deposits from the home Member State.

However, the Credit Entities Deposit Insurance Fund shall not make any payment until it has received the necessary funds from the deposit guarantee scheme of the home Member State.

In addition, the Fund will require the deposit guarantee scheme of the home Member State to compensate for the costs incurred during the payment.

7. The Credit Entities Deposit Insurance Fund shall have no liability for acts carried out in accordance with the instructions of the deposit guarantee scheme of the home Member State.

8. The Deposit Insurance Fund of Credit Entities shall use the deposit guarantee schemes of the Member States of the European Union in which the branches of Spanish credit institutions are established to carry out the payments corresponding to the deposits of those branches.

For the purposes of the preceding paragraph, the Credit Entities Deposit Insurance Fund shall send the funds to the deposit guarantee system of the host Member State together with the appropriate instructions for the purposes of the payments and shall compensate the deposit guarantee scheme of the host Member State for the costs incurred during the payment.

The Credit Entities Deposit Guarantee Fund shall also communicate regularly to the deposit guarantee scheme of the host Member State the information provided for in Article 9a and the results of the stress tests carried out in accordance with Article 12 of Royal Decree-Law 16/2011 of 14 October. '

Ten. A new Article 9a is added with the following wording:

" Article 9a. Information to be provided by credit institutions.

1. Credit institutions shall at all times identify the aggregate amount of the eligible and guaranteed deposits of each depositor.

This information may be requested by the Credit Entities Deposit Insurance Fund at any time.

2. The Credit Entities Deposit Guarantee Fund shall ensure the confidentiality and protection of data relating to depositors ' accounts. For such purposes, the processing of such data shall be carried out in accordance with Organic Law 15/1999 of 13 December on the Protection of Personal Data. "

Once. Article 10 is amended as follows:

" Article 10. Other actions of the Credit Entities Deposit Guarantee Fund.

1. In accordance with Article 11 (5) of Royal Decree-Law 16/2011 of 14 October, exceptionally, when the situation of a credit institution, according to the information provided by the Bank of Spain, is such as to make it foreseeable that the Fund will be The Fund, under the deposit guarantee compartment, may adopt preventive and sanitation measures provided for in the following Article in order to prevent the payment of the aid, in accordance with the causes laid down in Article 8.1.b. liquidation of the institution. These measures shall be included in a plan agreed by the institution and approved by the competent supervisor after consultation with the FROB.

However, the Fund shall not adopt these measures if the competent resolution authorities provided for in Law 11/2015 of 18 June 2015 on the recovery and resolution of credit institutions and service undertakings investment, consider that the conditions for the resolution are met.

2. Any plan containing measures requiring the approval of the Board or General Assembly of the entity concerned shall be considered conditional and shall not be executed until the agreements that make it possible are carried out. In the meantime, if the situation of the institution so requires, the Fund may provide provisional aid, provided that it is duly guaranteed, in the opinion of the management committee.

3. The resources used by the Fund under this Article shall be provided immediately by the credit institutions attached to the deposit guarantee compartment in the following cases:

(a) If, in accordance with Article 9 (1) (a), the deposit guarantee compartment must satisfy guaranteed deposits and its available financial resources do not reach two-thirds of the target level established by virtue of Article 9 (1) (a) Article 6.4 of Royal Decree-Law 16/2011 of 14 October.

(b) Where the deposit guarantee compartment is not required to satisfy guaranteed deposits, provided that the available financial resources of this compartment are below 25% of the target level established pursuant to Article 6.4 of Royal Decree-Law 16/2011 of 14 October. '

Twelve. Article 11 is amended as follows:

" Article 11. Preventive and sanitation measures.

1. The Credit Entities Deposit Insurance Fund may adopt, in accordance with the foregoing Article, any of the following preventive and sanitation measures with respect to an entity:

a) Concession of lost fund aids.

b) Grant of guarantees, loans on favourable terms or subordinated financing.

c) Acquisition of damaged or unprofitable assets that appear on the entity's balance sheet.

d) Subscription of capital increases, as provided for in the following paragraphs.

e) Other financial supports.

2. The Fund may subscribe to capital increases approved by institutions to restore their assets in the event that they are not covered by the shareholders of the institution.

It is understood, in any event, that the capital increases referred to in the preceding paragraph are not covered by the shareholders of the entity when the General Board of the entity has agreed to the total or partial exclusion of the right of preferential subscription, as provided for in the applicable legislation.

Within the maximum period of two years, the Fund shall offer for sale the shares subscribed to in the extensions referred to in the previous paragraph. Such an offer of sale shall be made in such a way as to enable at least the credit institutions integrated into the Fund to be able to fulfil their economic, activity and other requirements in relation to the size and size of the Fund. of the entity in sanitation, ensure the definitive restoration of the solvency and normal functioning of the entity.

If, within the two-year period provided for in the previous paragraph, the concurrency cannot be secured to the offer of entities to ensure the restoration of the solvency and the normal functioning of the institution in question. The Fund may extend that period by one or more additional periods of one year. The decision to extend the deadline shall be reasoned and shall contain a detailed assessment of the situation justifying enlargement, including market conditions and prospects.

The offering will specify the minimum commitments to be accepted by the eventual contracting entity.

The award shall be made by the Fund in favour of the entity that presents the most advantageous conditions of acquisition. In addition to the economic conditions, the economic and organisational capacity and means of each offeror entity may be taken into account for this purpose.

The offering for sale of the shares and their conditions, as well as the decision to award them, must be published in the " Official Journal of the State.

3. In order to enable the shares to be awarded, the Fund may assume losses, provide guarantees and acquire assets which appear on the balance sheet of the institutions concerned, as well as be responsible for the economic balance of the files or procedures of different order that are in progress or may be subsequently opened to those.

The Fund may also acquire assets from those entities where, in the view of the management committee, such acquisition will substantially contribute to the avoidance of further measures to restore the assets entity integrated into the Fund.

The actions provided for in the preceding paragraphs will not in any way imply the exclusion of the requirement from the directors of the entity for the adoption of other measures contributing to the strengthening of the assets and the solvency, as well as the necessary balance of the profit and loss account.

4. In no case shall the statutory limitations of the right to vote be applied to the Fund in respect of the shares acquired or subscribed to in accordance with this Article. "

Thirteen. Two new Articles 12 and 13 are added with the following wording:

" Article 12. Stress tests.

In accordance with Article 12 of Royal Decree-Law 16/2011 of 14 October, the Banco de España shall submit to the Fund, at least every 3 years, evidence of resistance to its ability to meet its obligations to pay voltage situations.

These tests should verify both the financial situation of the Fund and the resilience of its operating systems and capabilities.

Article 13. Communication and cooperation.

Without prejudice to Articles 82 and 83 of Law 10/2014 of June 26, the Credit Entities Deposit Insurance Fund may share information and maintain effective communication with other guarantee systems. deposits, with credit institutions attached, with the Banco de España, the FROB and the corresponding authorities of other Member States of the European Union. '

Fourteen. The following fourth transitional provision is added:

" Transitional provision fourth. Consideration as a guaranteed deposit of the registered certificates of deposit.

Until their original maturity date, the registered certificates of deposit issued before 2 July 2014 shall be considered as guaranteed deposits for the purposes of this royal decree. "

Fifteen. The following fifth transitional provision is added:

" Transient Disposition fifth. Obligation to report on deposits that will no longer be guaranteed.

Depositors whose deposits are no longer guaranteed after 3 July 2015 on the basis of the amendments made to this royal decree by Royal Decree 1012/2015 of 6 November 2015, for which the Law 11/2015, of June 18, of recovery and resolution of credit institutions and investment firms, will have to be informed by their credit institution before two months after the entry into force of this real decree. "

Sixteen. The following transitional provision is

:

" Transitional provision sixth. Payment deadlines.

1. The maximum payment period of seven working days provided for in Article 9 (1) (a) shall not enter into force until 1 January 2024. Until then, the maximum payment deadlines will be as follows:

a) Twenty business days, until December 31, 2018.

b) Fifteen working days, between 1 January 2019 and 31 December 2020.

c) Ten working days, between 1 January 2021 and 31 December 2023.

2. Until 31 December 2023, when the Credit Entities Deposit Insurance Fund is unable to repay the repayable amount within seven working days, it shall pay the depositors, within a maximum of five working days after their application, an appropriate amount of your guaranteed deposits in order to cover your livelihood. This amount shall be deducted from the repayable sum referred to in Article 7.1.First paragraph.

The Credit Entities Deposit Insurance Fund shall grant access only to the appropriate amount referred to in the preceding paragraph on the basis of the data of the Fund itself or the data provided by the institution credit.

3.

the payment referred to in the preceding paragraph may be deferred in any of the cases referred to in Article 9 (1) (a).

seventeen. The following Annex is

:

" ANNEX

Reporting to depositors

information about deposit
The deposits held in [insert credit institution name] is guaranteed by	[insert name of the corresponding deposit guarantee system] (1)
coverage	100,000 euros per depositor and entity credit (2) [substitute for the appropriate amount in case the currency is not the euro] [where applicable:] The following trade names are part of your credit institution [insert all trademarks operating under the same license]:
If you have more deposits in the same credit institution:	All its deposits in the same credit institution are added and the total is subject to the limit of 100,000 euros [replace with the appropriate amount in case the currency is not the euro] (2).
If you have a participating account with another person (s):	The limit of 100 000 EUR [replace with the appropriate amount in case the currency is not the EUR] applies to each depositor separately (3)
period in case of a credit institution contest:	7 business days [replace by another date if applicable] (4)
in which reimbursement is made:	Euros [replace with another currency when applicable]
Contact:	[insert the corresponding SGD contact data (address, phone, email, etc.)
For more information:	[insert the corresponding SGD website]
receipt:
information (all or part of the information below)

(1) System responsible for the coverage of your repository.

[Only where applicable]: Your deposit is guaranteed by an officially recognized contractual system as a Deposit Insurance System. In the event of the insolvency of your credit institution, your deposit shall be reimbursed to you up to EUR 100 000 [replace the appropriate amount in case the currency is not the EUR].

[Only where applicable]: Your credit institution is part of an officially recognized Institutional Protection System as a Deposit Insurance System. This means that all entities that are members of this system support each other in order to avoid insolvency. In the event of the insolvency of your credit institution, your deposit shall be reimbursed to you up to EUR 100 000 [replace the appropriate amount in case the currency is not the EUR].

[Only where applicable]: Your deposit is guaranteed by a Deposit Insurance System created by legal provision and by a Contract Deposit Insurance System. In the event of the insolvency of your credit institution, your deposit shall be reimbursed to you in any case up to EUR 100 000 [replace the appropriate amount in case the currency is not the EUR].

[Only where applicable]: Your deposit is guaranteed by a Deposit Insurance System created by legal provision. In addition, its credit institution is part of an Institutional Protection System in which all affiliates support each other in order to avoid insolvency. In the event of insolvency, the Deposit Insurance Scheme shall reimburse its deposit up to EUR 100 000 [to be replaced by the appropriate amount in case the currency is not the EUR].

(2) General protection limit.

If a deposit cannot be made available because a credit institution is not in a position to meet its financial obligations, a Deposit Insurance System will reimburse depositors. The reimbursement amounts to a maximum of EUR 100 000 [to replace the appropriate amount in case the currency is not EUR] per credit institution. This means that all of its deposits made in the same credit institution are added to determine the level of coverage. If, for example, a depositor owns a savings account with EUR 90 000 and a current account with EUR 20 000, only EUR 100 000 shall be reimbursed.

[Only where applicable]: This method will also be used if a credit institution operates with different commercial denominations. [Name of the credit institution where the account is open] operates commercially also with the denominations [other commercial denominations of the credit institution]. This means that all deposits in one or more of these trade names are guaranteed by a total of EUR 100 000.

(3) Protection limit for participating accounts.

In the case of participating accounts, the limit of EUR 100 000 shall apply to each depositor.

[Only where applicable]: However, deposits in an account on which two or more persons have rights as members or members of a company, an association or any grouping of a similar kind, without personality legal, they are aggregated and treated as if they had been made by a single depositor for the purpose of calculating the limit of EUR 100 000 [substitute for the appropriate amount in case the currency is not the EUR].

In some cases [insert the cases identified in the national legislation] deposits are guaranteed above EUR 100 000 [to be replaced by the appropriate amount in case the currency is not the EUR]. more information on [insert the corresponding SGD website].

(4) Refund.

The responsible deposit guarantee system is [insert name, address, telephone, e-mail address and website]. It will refund its deposits (up to a maximum of EUR 100 000) [replace the appropriate amount in case the currency is not the EUR] the [insert the repayment period required by the national rules] at the latest, and from [31 December 2023] within [7 working days].

[Add information on emergency or provisional reimbursements in the event that no amount has been available within 7 business days.] If you have not been reimbursed within this period, you must contact the deposit guarantee scheme, since the time during which the refund can be claimed may be limited. For more information, please consult [insert responsible SGD website].

Other important information.

In general, all retail depositors and companies are covered by deposit guarantee schemes. The exceptions applicable to certain deposits can be found on the website of the responsible deposit guarantee scheme. Your credit institution shall also inform you, if so requested, of whether or not certain products are covered. If the deposits are covered, the credit institution shall also confirm this in the statement of accounts. '

Final disposition second. Competence title.

This royal decree is issued in accordance with the provisions of Article 149.1.6., 11. and 13. of the Spanish Constitution, which attribute to the State the jurisdiction over commercial law, bases of the ordination of credit, banking and insurance, and bases and coordination of general economic activity planning, respectively. From the expressed competence coverage, the final disposition of the royal decree is excepted, which is protected in the competition expressed in the rule that it modifies.

Final disposition third. Incorporation of European Union law.

This royal decree partially incorporates into Spanish law Directive 2014 /49/EU of the European Parliament and of the Council of 16 April 2014 and Directive 2014 /59/EU of the European Parliament and of the Council of 15 May 2014.

Final disposition fourth. Faculty of development.

The Minister of Economy and Competitiveness or, with his express rating, the Banco de España and the National Securities Market Commission, may dictate the necessary provisions for the development and execution of this royal decree. In the event of such a rating, the standard shall be subject to prior reporting by the other competent resolution or supervisory authorities.

Final disposition fifth. Entry into force.

1. This royal decree shall enter into force on the day following that of its publication in the "Official Gazette of the State".

2. However, the rules on internal recapitalisation contained in Chapter VI shall enter into force on 1 January 2016.

Given in Madrid, November 6, 2015.

FELIPE R.

The Minister of Economy and Competitiveness,

LUIS DE GUINDOS JURADO

ANNEX I

Information to be included in recovery plans

The recovery plan will contain the following information:

1. A summary of the fundamental elements of the plan and the total recovery capacity.

2. A summary of the entity's important changes from the most recently approved recovery plan.

3. A communication and disclosure plan describing how it is proposed to manage any potential negative market reaction.

4. A number of capital and liquidity measures necessary to maintain or restore the viability and financial position of the institution.

5. An estimate of the execution time for each important aspect of the plan.

6. A detailed description of any substantial obstacles to effective and timely implementation of the plan, including a consideration of the impact on the rest of the group, clients and counterparties.

7. The determination of the essential functions.

8. A detailed description of the processes for determining the value and the marketing capacity of the operations, the assets of the entity, and the main branches of activity.

9. A detailed description of how the recovery plan is integrated into the entity's governance structure, as well as the policies and procedures governing the approval of the recovery plan and the identification of the persons in the organization responsible for making and implementing the plan.

10. Provisions and measures to preserve or restore the entity's own funds.

11. Provisions and measures to ensure that the institution has adequate access to contingency financing sources, including potential sources of liquidity, an assessment of available guarantees and an assessment of the possibility to transmit liquidity between the branches of activity and the entities of the group, in order to ensure that it can proceed with its activities and fulfil its obligations on the date of its maturity.

12. Provisions and measures to reduce risk and leverage.

13. Provisions and measures for the restructuring of liabilities.

14. Provisions and measures for the restructuring of the branches of activity.

15. Provisions and measures necessary to maintain continuous access to the infrastructure of the financial markets.

16. Provisions and measures necessary to maintain the functioning of the entity's operational processes, including the infrastructure and services of information technologies.

17. Preparatory provisions to facilitate the sale of assets or branches of activity at an appropriate time for the restoration of financial soundness.

18. Other management actions or strategies to restore the financial soundness and expected financial effect of these actions or strategies.

19. Preparatory measures that the institution has already adopted or intends to take to facilitate the implementation of the recovery plan, including those necessary to enable the institution's internal recapitalisation at the appropriate time.

20. A framework of indicators to determine the points at which appropriate actions can be undertaken in the plan.

ANNEX II

Information that preventive resolution authorities can require from entities for the elaboration and maintenance of resolution plans

Preventive resolution authorities may require entities to present at least the following information for the preparation and maintenance of resolution plans:

1. A detailed description of the organizational structure of the entity, including a list of all legal persons in the group.

2. The identification of the direct holder and the percentage of voting rights and no voting rights of each shareholder and legal persons in the group.

3. The location, the jurisdiction of the constitution, the granting of the license, and the principal officers of the legal persons who make up the group.

4. A correlation of the core business and core business of the entity, including the principal assets and liabilities related to these operations and branches of activity, with reference to legal persons integrate the group.

5. A detailed description of the components of the liability of the institution and the legal persons in the group, with a breakdown, at least, of short-term and long-term debt rates and amounts and of guaranteed, unsecured and secured liabilities subordinates.

6. Breakdown of the liabilities of the entity that are eligible.

7. A relationship of the processes necessary to determine for whom the entity has constituted a guarantee, the person who holds the guarantee and the jurisdiction under which the guarantee is located.

8. A description of the off-balance sheet risks of the entity and the legal entities that make up the group, including the allocation to its core operations and core branches of activity.

9. The entity's essential hedges, including a breakdown by each member of the group.

10. The identification of the principal or most critical counterparties of the institution, as well as an analysis of the impact of the infeasibility of the principal counterparties on the financial situation of the institution.

11. Each of the systems in which the institution carries out significant transactions either for its volume or for its value, including the allocation to the group members, the core operations and the main business branches of the entity.

12. Each of the payment, clearing or settlement systems of which the institution is a member, directly or indirectly, and its connection with the legal persons in the group, the essential operations and the main branches of activity the entity.

13. A detailed inventory and description of the main information management systems, including those for risk management, accounting and financial and regulatory reporting of the institution, with an allocation to the group members, essential operations and the main business branches of the entity.

14. The identification of the owners of the systems referred to in the previous paragraph, of the related service level agreements and of any computer system or license, including the assignment to the members of the group, essential operations and the main business branches of the entity.

15. The identification of the members of the group and an outline of their interrelations, specifying the interconnections and interdependencies that unite them, particularly in the matter of:

a) common or shared personnel, facilities, and systems.

(b) provisions on capital, financing or liquidity.

c) credit risks, existing or potential.

(d) cross-guarantee agreements, mutual guarantee agreements, cross-compliance provisions and cross-branch clearing arrangements

e) risk transmission and mutual support agreements; as well as service level agreements.

16. The supervisor and the competent resolution authorities of the legal persons in the group.

17. The member of the body responsible for providing the information necessary to prepare the institution's resolution plan, as well as those responsible, if any, of the legal persons in the group, the essential operations and the main activity branches.

18. A description of the mechanisms with which the institution counts to ensure that, in the event of a resolution, the resolution authority has all the information it deems necessary for the implementation of resolution tools and powers.

19. All agreements entered into by the entities and the members of the group with third parties whose termination may be caused by the decision of the authorities to apply a resolution instrument and if the consequences of such termination could be affect the application of the resolution instrument.

20. A description of the possible sources of liquidity to support the resolution.

21. Information on the liens that weigh on assets, liquid assets, activities not accounted for in the balance sheet, hedging strategies and registration practices.

ANNEX III

Issues that resolution authorities should consider when assessing the resolution of an entity or group

When assessing the opportunity to proceed with the resolution of an entity or group, the competent resolution authorities shall take into consideration the following factors:

1. The extent to which the entity can assign core business branches and essential operations to legal persons.

2. The degree of compatibility between legal and corporate structures with respect to core business branches and core operations

3. The extent to which mechanisms are in place to provide basic personnel, infrastructure, financing, liquidity and capital to assist and maintain core business and core operations.

4. The extent to which the service agreements that the entity maintains are fully enforceable in the event of the institution's resolution.

5. The extent to which the entity's governance structure is appropriate to manage and ensure compliance with the entity's internal policies with respect to its service level agreements.

6. The extent to which the entity has a process to transmit to third parties the services provided under agreements on the level of service, in the event of segregation of the essential functions or the main branches of activity

7. The extent to which contingency plans and measures are in place to ensure continuity of access to payment and settlement systems.

8. The adequacy of information management systems to ensure that resolution authorities can collect accurate and complete information on core business branches and essential operations to allow for rapid decision making.

9. The ability of information management systems to provide essential information for an effective resolution of the entity at any time, even in conditions that change rapidly.

10. The extent to which the entity has tested its management information systems in stress scenarios defined by the resolution authority.

11. The extent to which the institution can ensure the continuity of its management information systems, both for the entity concerned and for the new entity, in the event that the essential operations and the main branches of activity are separate of the rest of the operations and branches of activity

12. The extent to which the institution has created appropriate processes to provide resolution authorities with the information necessary to identify depositors and amounts secured by deposit guarantee schemes.

13. In the event that the group uses guarantees at internal level, the extent to which these guarantees are offered to market conditions and the soundness of the risk management systems relating to these guarantees.

14. When the group carries out related transactions or mirror transactions, the extent to which these transactions are made in market conditions and the soundness of the risk management systems relating to these transactions.

15. The extent to which the use of collateral within the group or linked transactions or mirror increases the contagion within the group.

16. The extent to which the legal structure of the group prevents the application of the resolution instruments as a result of the number of legal persons, the complexity of the group structure or the difficulty in allocating the branches of the activity to the entities in the group.

17. The amount and type of eligible liabilities of the institution.

18. Where the assessment relates to a mixed holding company, the extent to which the resolution of the group entities could affect the non-financial part of the group.

19. The existence of service level agreements and their solidity.

20. If the authorities of countries outside the European Union have the necessary resolution tools to support the resolution actions undertaken by the European Union's resolution authorities, and the possibilities of coordinated action between the authorities of the European Union and those of other countries.

21. The feasibility of using resolution tools in a way that meets the resolution objectives, given the available instruments and the structure of the entity.

22. The extent to which the structure of the group allows the resolution authority to proceed to the resolution of the entire group or of one or more of the entities in the group without any significant, direct or indirect negative impact, on the financial system, the confidence of the markets or the economy, and aiming to maximize the value of the group as a whole

23. Means and provisions that could facilitate resolution in the case of groups having subsidiaries established in different jurisdictions.

24. The credibility of the use of resolution instruments in such a way as to meet the objectives of resolution, taking into account the possible impact on creditors, counterparties, clients and staff, as well as on possible actions which the authorities of countries outside the European Union may be adopted.

25. The extent to which the impact of the institution's resolution on the financial system and on the confidence of financial markets can be properly assessed.

26. The extent to which the institution's resolution could have significant, direct or indirect negative impacts on the financial system, market confidence or the economy.

27. The extent to which the contagion to other entities or financial markets could be contained through the implementation of resolution tools and powers

28. The extent to which the institution's resolution could have a significant effect on the functioning of payment and settlement systems.