Article 59 10.

Before exercising the power to write down or convert ►M3  capital instruments, or eligible liabilities as referred to in paragraph 1a ◄ , resolution authorities shall ensure that a valuation of the assets and liabilities of the institution or the entity referred to in point (b), (c) or (d) of Article 1(1) is carried out in accordance with Article 36. That valuation shall form the basis of the calculation of the write down to be applied to the relevant ►M3  capital instruments, or eligible liabilities as referred to in paragraph 1a ◄ in order to absorb losses and the level of conversion to be applied to relevant ►M3  capital instruments, or eligible liabilities as referred to in paragraph 1a ◄ in order to recapitalise the institution or the entity referred to in point (b), (c) or (d) of Article 1(1).