+Article 31 1.

Article 31 1.

In emergency situations, competent authorities may permit institutions to include in Common Equity Tier 1 capital instruments that comply at least with the conditions laid down in points (b) to (e) of Article 28(1) where all the following conditions are met:

(a) 

the capital instruments are issued after 1 January 2014;

(b) 

the capital instruments are considered State aid by the Commission;

(c) 

the capital instruments are issued within the context of recapitalisation measures pursuant to State aid- rules existing at the time;

(d) 

the capital instruments are fully subscribed and held by the State or a relevant public authority or public-owned entity;

(e) 

the capital instruments are able to absorb losses;

(f) 

except for the capital instruments referred to in Article 27, in the event of liquidation, the capital instruments entitle their owners to a claim on the residual assets of the institution after the payment of all senior claims;

(g) 

there are adequate exit mechanisms of the State or, where applicable, a relevant public authority or public-owned entity;

(h) 

the competent authority has granted its prior permission and has published its decision together with an explanation of that decision.

1. Overview

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1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements

3. Related Standards

Standards