Central Bank and Credit Institutions (Resolution) Act 2011

100.

Effect of orders on certain other obligations.

100.— (1) In this section “relevant agreement” means an agreement under which the authorised credit institution in relation to which an order under this Act is made or any of its subsidiaries, its holding company and any subsidiary of its holding company enjoys any right or interest or is subject to any obligation or liability (regardless of whether such an agreement is governed by the law of the State or another place).

(2) If any consequence specified or referred to in subsection (4) in relation to an authorised credit institution or any of its subsidiaries, its holding company and any subsidiary of its holding company would, but for this subsection, arise under a relevant agreement by virtue of—

( a) the enactment of this Act,

( b) the publication of the Bill for this Act, or

( c) any statement made by the Minister, the Bank or the authorised credit institution in relation to the Bill for this Act, the contents of that Bill or this Act, or the use or effect of any powers in this Act,

then, notwithstanding anything in the relevant agreement and subject to section 101

(i) no interest or right of any third party arises or becomes exercisable, and

(ii) no liability or obligation arises or is incurred by any third party,

by virtue of that enactment, publication or statement.

(3) Where an order has been made, or requirement imposed, under this Act in relation to an authorised credit institution, any of its subsidiaries, or its holding company, (whether or not the order or requirement is subsequently set aside, or varied or amended in a relevant manner) and a relevant agreement would (apart from this subsection) cause a consequence specified or referred to in subsection (4) to follow by virtue of—

( a) the making of the order, or the imposition of the requirement, or any step taken (including the making of a proposed order) in preparation for the making of the order or imposition of the requirement,

( b) an act taken or omitted to be taken by any person in compliance with the order or requirement,

( c) any consequences of any such act or omission,

( d) any consequence of the order or requirement, or

( e) any other thing done or authorised to be done under, or resulting from any provision of this Act,

then, notwithstanding that relevant agreement and subject to section 101

(i) no interest or right of any third party arises or becomes exercisable, and

(ii) no liability or obligation arises or is incurred by any third party,

by virtue of any of the matters mentioned in any of paragraphs (a) to (e) .

(4) The consequences referred to in subsections (2) and (3) are the following:

( a) the creation of an obligation or liability;

( b) the suspension or extinction (however described, and whether in whole or in part) of a right or an obligation or the becoming subject to a right or an obligation;

( c) the termination or extinguishment of the relevant agreement concerned or a right or obligation under it;

( d) a right becoming exercisable to terminate or modify the relevant agreement or a right or obligation under it;

( e) an amount becoming due and payable or capable of being declared due and payable or ceasing to be payable;

( f) any other change in the amount or timing of any payment falling to be made or due to be received by any person;

( g) a right becoming exercisable to withhold, net or set off any payment under or in connection with the relevant agreement;

( h) the occurrence of an event giving rise to a default or breach of a right or obligation;

( i) a right becoming exercisable not to advance any amount;

( j) an obligation arising to provide or transfer a deposit or collateral;

( k) a right of transfer or assignment of an asset or liability;

( l) any right to enforce a guarantee, indemnity or security interest (however described);

( m) the triggering of any mandatory prepayment event (howsoever described);

( n) any obligation to return collateral or its equivalent;

( o) the cancellation of any obligation to advance any amount or to provide credit or a contingent instrument;

( p) legal proceedings becoming maintainable to enforce the relevant agreement;

( q) the termination or modification of an obligation to provide a service or product;

( r) the accrual of any right to give or withhold any consent or approval;

( s) any event of default or breach of any right arising;

( t) any right or obligation not arising;

( u) the imposition of any condition on the relevant agreement;

( v) the imposition of any condition on any right or obligation under the relevant agreement;

( w) the creation of any constructive or resulting trust or other equitable interest or equity;

( x) the accrual of any right to trace any property or to claim an equitable interest in or equity in respect of any property or to claim any breach of trust;

( y) any other right or remedy (whether or not similar in kind to those referred to in paragraphs (a) to (x) ) arising or becoming exercisable.

(5) A relevant agreement has a consequence specified in subsection (4) if the substantial effect of the agreement is to produce that consequence, regardless of whether or not the agreement describes its consequences in the precise terms used in that subsection.