Subsection 1: General provisions

In this Section and in Section 5 of this Chapter:

1° "Significant branch" means a branch of significant importance within the meaning of Article L. 613-32-1 ;

2° "Transnational group" means a group with entities established in more than one Member State of the European Union;

3° "EU State aid rules" means all the rules laid down by Articles 107, 108 and 109 of the Treaty on the Functioning of the European Union and by the regulations and all acts of the Union, including guidelines, communications and notes, issued or adopted pursuant to paragraph 4 of Article 108 or Article 109 of that Treaty;

4° "urgent liquidity provision" means the provision by a central bank of central bank money or any other provision likely to increase the quantity of central bank money held by a solvent financial institution, as defined in Article L. 511-21(4), or a group of solvent financial institutions experiencing temporary liquidity problems, without this operation forming part of monetary policy;

5° The expression "critical functions" refers to the activities, services or operations of a person or entity mentioned in I of Article L. 613-34, the interruption of which is likely, in France or within the European Union, to affect services essential to the real economy or to disrupt financial stability because of the size or market share of the person or group, its internal and external interdependence, its complexity or the transnational activities it carries out;

6° The expression "core business" means those activities and associated services which represent for a person or entity or the group of which it is part significant sources of revenue, profit or franchise value;

7° The terms "commitments available for internal bail-in", "eligible commitments" and "eligible subordinated instruments" mean:

a) The commitments or liabilities and capital instruments of a person referred to in I of Article L. 613-34 which are not excluded from the scope of application of internal bail-in pursuant to I of Article L. 613-55-1 and which are:

i) Neither core tier 1 capital instruments;

ii) Nor additional tier 1 capital instruments;

iii) Nor tier 2 capital instruments;

b) The commitments referred to in a which meet the conditions for satisfying the requirements set out in Article L. 613-44, and Tier 2 capital instruments which meet the conditions set out in point b of paragraph 1 of Article 72a of Regulation No 575/2013 of the European Parliament and of the Council of 26 June 2013;

c) Among the commitments referred to in b, those instruments which meet all the conditions set out in Article 72a of Regulation No 575/2013 of the European Parliament and of the Council of 26 June 2013 other than those set out in paragraphs 3 to 5 of Article 72b of that Regulation ;

8° "Consolidated resolution authority" means the resolution authority of the Member State of the European Union where the consolidated supervisory authority is located;

9° "EU parent undertaking" means an EU parent institution within the meaning of Article 4(1)(29) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013, an EU parent financial holding company within the meaning of Article 4(1)(31) of that Regulation or an EU parent mixed financial holding company within the meaning of Article 4(1)(33) of that Regulation;

10° "Guaranteed commitment" means a commitment or liability in respect of which the creditor's right to payment or other performance is secured by a right, pledge, lien or security arrangement, including commitments or liabilities arising from repurchase agreements and other security arrangements involving a transfer of ownership of the relevant person's property;

11° "own funds" means own funds within the meaning of Article 4(1)(118) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013;

12° "financial contracts" means the following contracts:

a) Contracts relating to financial securities, including:

(a) contracts relating to financial securities, including: - purchase, sale, option and forward contracts relating to a financial security or an index of financial securities

-loans of financial securities

-repurchase or reverse repurchase transactions involving financial securities;

b) Contracts relating to commodities, including:

purchase, sale, option and futures contracts relating to a commodity, a basket of commodities or a commodity index; - commodity loans

-commodity loans

-repurchase or reverse repurchase transactions involving commodities;

c) Futures and all forward contracts, including over-the-counter contracts, relating to the purchase, sale or transfer at a future date of a commodity or goods of any other nature, a service, a right or a guarantee for a specified price;

d) Swap contracts, in particular:

-interest-rate derivative contracts, spot or other currency agreements, swap contracts and option contracts relating to currencies, equity indices or equities, debt indices or debt, commodity indices or commodities, climate, greenhouse gas emissions or inflation ;

-total return swaps, credit spread swaps and forward contracts used to transfer credit risk;

-any agreement or any transaction similar to an agreement mentioned above which is the subject of recurring transactions on the financial markets;

e) Interbank borrowing agreements with a maturity of three months or less;

f) Framework agreements relating to all types of contracts and agreements mentioned in a) to e) above;

13° "Group resolution" means any of the following measures:

a) The application of resolution measures at the level of a parent undertaking or a credit institution or investment firm subject to supervision on a consolidated basis ;

b) The coordinated application of resolution measures by resolution authorities in relation to entities in a group which meet the conditions for triggering a resolution procedure;

14° "Core Tier 1 capital instruments" means the capital instruments referred to in Article 26(1)(a) and Article 31(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013, and "Core Tier 1 capital" means the Core Tier 1 capital instruments calculated in accordance with Article 50 of that Regulation;

15° "Additional Tier 1 capital instruments" means the additional capital instruments defined in Article 51(a) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013;

16° "Tier 2 capital instruments" means the capital instruments or subordinated debt referred to in Article 62(a) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013;

17° The expression : "right of termination" means the right to terminate a contract, the right to accelerate the due date, to liquidate, set off or convert obligations into a single balance, as well as any right which would arise, on the one hand, from a stipulation or similar provision providing for the suspension, modification or extinction of an obligation imposed on a party to the contract or, on the other hand, from a stipulation or provision preventing the arising of an obligation resulting from the contract which would arise in the absence of that provision ;

18° "title transfer financial collateral arrangement" means an arrangement under which obligations are secured by delivery of the full ownership rights referred to in Article L. 211-8;

19° "Close-out netting agreement" means an agreement under which several rights or obligations may, after the expiry of their term, be converted or offset into a single balance, including any agreement giving one of the parties a right of termination;

20° "Reciprocal set-off agreement" means an agreement by which several rights or obligations between the person who is the subject of the resolution and another party may be set off;

21° The term "resolution entity" refers to:

a) Legal entities established in the European Union that the resolution college designates, in accordance with I of Article L. 613-40, as an entity for which the preventive resolution plan provides for a resolution measure;

b) Institutions that are not part of a group subject to supervision on a consolidated basis wit hin the mea ning of Article L. 613-20-1 and for which a preventive resolution plan has been drawn up in accordance with I of Article L. 613-38; c) Institutions that are not part of a group subject to supervision on a consolidated basis within the meaning of Article L. 613-20-1 and for which a preventive resolution plan has been drawn up in accordance with I of Article L. 613-40. 613-38;

22° "Resolution group" means:

a) A resolution entity and its subsidiaries which are not :

i) Resolution entities themselves;

ii) Subsidiaries of other resolution entities;

iii) Entities established in a third country which are not included in the resolution group, within the meaning of the preventive resolution plan, and their subsidiaries;

b) Institutions which are permanently affiliated to a central body and the central body itself, where at least one of these institutions or the central body is a resolution entity, and their respective subsidiaries;

23° The expression: "global systemically important institution" or "gsi" means a global systemically important institution within the meaning of point 133 of paragraph 1 of Article 4 of Regulation No 575/2013 of the European Parliament and of the Council of 26 June 2013 ;

24° "Overall capital buffer requirement" means the requirement referred to in Article L. 511-41-1 A or, where applicable, the sum of the requirements referred to in Article L. 533-4-4 and Article L. 533-4-5;

25° Member States of the European Union other than France are deemed to be States party to the Agreement on the European Economic Area;

26° "Subsidiary" means a subsidiary within the meaning of Article L. 511-20 or institutions affiliated to a central body mentioned in Article L. 511-30.