Article 37 2.

Where a resolution authority decides to apply a resolution tool to an institution or entity referred to in point (b), (c) or (d) of Article 1(1), and that resolution action would result in losses being borne by creditors or their claims being converted, the resolution authority shall exercise the power to write down and convert ►M3  capital instruments and eligible liabilities ◄ in accordance with Article 59 immediately before or together with the application of the resolution tool.