Parte 3 – O acordo de garantia financeira

In order to safeguard the DGS’s creditor position, a Financial Collateral Arrangement should explicitly include the following terms:

• a) the credit institution undertakes to substitute the low-risk assets provided as collateral when they fall due, when they no longer comply with the requirements laid down in Part 6 and 7 of these guidelines or in other specific cases agreed upon with the DGS, so that the payment commitment is permanently secured by appropriate collateral.
• b) in the case of a security financial collateral arrangement, the credit institution is not allowed to dispose of the collateral (e.g. sale, encumbrance).
• c) the credit institution is required to top-up the low-risk assets provided as collateral upon request of the DGS, in the event that the value of the underlying collateral asset, after the haircut provided for in Part 7 of these guidelines, or in consideration of the applicable exchange rate for cash collateral, falls below the payment commitment amount.
• d) The provision of at least the following enforcement events:

Where an institution ceases to be a member of the DGS without meeting any of the above-mentioned enforcement events, the DGS should choose the course of action most suitable to preserve the availability of the committed funding.

To that end the DGS may either:

Where a credit institution ceases to be a member of a DGS and joins another

receiving DGS, or by reassigning the payment commitment arrangement to the receiving DGS in agreement with the latter and the credit institution.

Where the change of DGS membership is the result of the application a resolution measure, the DGS should consult the resolution authority prior to its decision concerning payment commitments, taking into account resolution objectives, including the protection of depositors³ .

• e) At the occurrence of an Enforcement Event, the DGS should realise or appropriate the low-risk assets provided as collateral in accordance with the terms of the financial collateral arrangement.
• f) The DGS should release and return the low-risk asset collateral upon cash payment by the credit institution of the payment commitment amount.
• g) The party which is entitled to the proceeds (interests, dividends, etc.) of the low-risk assets collateral should be determined (either the DGS or the member institution).

³ Article 31 of Directive 2014/59/EU, OJ L 173/190 of 12.06.2014.