French Monetary and Financial Code
In forceI. - The resolution board shall take the measures referred to in I of Article L. 613-48 when it considers that one or more of the following conditions are met:
1° It has been established, prior to the implementation of a resolution measure, that the conditions for triggering a resolution procedure mentioned in II of Article L. 613-49 or, where applicable, in I, II and V of Article L. 613-49-1 have been met;
2° The viability of the person in question depends on this;
3° In the case of own-fund instruments issued by a subsidiary and where such own-fund instruments are recognised for the purposes of compliance with capital requirements on an individual basis and on a consolidated basis, the viability of the group depends on the reduction in nominal value or the conversion of such instruments;
4° In the case of own-fund instruments issued at the level of the parent undertaking within the meaning of I of Article L. 511-20 and where such own-fund instruments are recognised for the purposes of compliance with capital requirements on an individual basis at the level of the parent undertaking within the meaning of I of Article L. 511-20 or on a consolidated basis, the viability of the group depends on the reduction in the nominal value or the conversion of such instruments;
5° Except in the circumstances referred to in 3° of III of Article L. 613-48, the person concerned or the group requires exceptional financial support from the public authorities.
The entity or group is deemed no longer to be viable when the two conditions mentioned in I of Article L. 613-48 are met.
The members mentioned in 1° and 2° of I of Article L. 612-8-1 of the resolution college, the European Central Bank, another competent authority or another resolution authority may refer the matter to the resolution college of the Autorité de contrôle prudentiel et de résolution in order to establish that a person mentioned in I of Article L. 613-34 or a group is in one or more of the situations mentioned above.
II. - When one or more of the conditions mentioned in I are met, the resolution board shall determine whether the reduction in the nominal value or the conversion of own funds instruments and eligible commitments mentioned in VII of Article L. 613-48 is carried out independently or in combination with the implementation of one or more resolution measures provided for in sub-paragraphs 3, 4, 5 or 6 of paragraph 2 of sub-section 10 of this section.
In all cases, when the resolution board decides to implement one of the resolution measures, it shall first make use of the reduction or conversion power referred to in I of Article L. 613-48.
