We use cookies to give you the best online experience. By using our website you agree to our use of cookies in accordance with our cookie policy. Learn more here.Close Me
On August 14, 2015, the European Banking Authority published
technical advice to the European Commission under the Bank Recovery
and Resolution Directive on the classes of arrangements to be
protected in a partial property transfer. A partial property
transfer occurs when some but not all of the assets, rights and
liabilities of a failing firm are transferred to a new entity.
Under the BRRD, the European Commission must adopt legislation that
specifies which arrangements must be safeguarded to prevent linked
liabilities, rights and contracts of a failing firm from being
split in a partial property transfer. The EBA advises that a list
of arrangements is not feasible because it would need to be
exhaustive to capture the different legal frameworks in Member
States, in particular, insolvency laws as well as any future
developments. Instead, the EBA specifies the arrangements according
to rules and definitions in a more specific way than the provisions
of the BRRD itself. The criteria for whether an arrangement is
within scope of the protection include the type, scope, economic
purpose, the counterparties and the governing law of the
arrangements. The EBA also recommends distinguishing between a core
category of arrangements that should be protected in any event and
others where the protection would depend on additional criteria and
the specific circumstances. The EBA also advises that certain
arrangements that would impair the feasibility of a partial
property transfer resolution strategy should be excluded from
protection. Finally, the EBA considers that where the BRRD text is
unclear, resolution authorities should have the power to interpret
the scope of the safeguards restrictively.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Beginning on October 1, 2017, all investment advisers filing Form ADV must use an amended version of Part 1A of the Form that contains several new and revised items.
In the bygone days of pure non-recourse financing, if a borrower was unable or failed to perform its obligations under the mortgage loan documents, lenders would look solely to the underlying collateral for the recovery...
FinCEN made technical changes to a final rule relating to customer due diligence standards for banks, brokers or dealers in securities, mutual funds, futures commission merchants...
Overseas Shipping Group ("Overseas") recently sued its former attorneys, a prominent New York-based law firm, for legal malpractice in drafting credit agreements that resulted in the company incurring an estimated $463 million in tax liability.
On September 21, the Department of Justice cleared the way for a group of the twenty-four largest U.S. banks to create a real-time payment system that will permit immediate transfer of funds...
Almost all real estate loans that involve periodic draws (like construction loans), or periodic draws and repayments (like revolving credit facilities)...
On September 20, the Consumer Financial Protection Bureau issued proposed policy guidance that would modify a mortgage disclosure law in an effort to protect applicants' and borrowers' privacy.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Mine Financing In 2017 - Video
