in force 2025-01-01 MODIFIED+842 −0§
Amended by Regulation (EU) 2024/1623 32024R1623 · Regulation (EU) 2024/2987 32024R2987 · Regulation (EU) 2024/2795 32024R2795
applies from: unchanged
A new paragraph 3 has been added, setting out a derogation from paragraph 1 for a corporate exposure covered by a credit derivative, stating that the restructuring credit event referred to in point (a)(iii) need not be specified in the derivative contract if two listed conditions are met, namely a 100% vote requirement to amend certain terms of the exposure and the existence of a well-established bankruptcy code in the relevant legal domicile.
The new paragraph 3 also states that where those two conditions are not met, the credit protection may nonetheless be eligible subject to a reduction in value as specified in Article 233(2).
Paragraphs 1 and 2 remain textually identical between the two versions.
Cited: Art. 216, v2 · Art. 216, v1
text before / after
02013R0575-20240709 → 02013R0575-20250101
Article 216 Additional requirements for credit derivatives 1. Credit derivatives shall qualify as eligible unfunded credit protection where all the conditions in Article 213 and all the following conditions are met: (a) the credit events specified in the credit derivative contract include: (i) the … 336 unchanged words … underlying obligation and the reference obligation or the obligation used for the purpose of determining whether a credit event has occurred, as the case may be, share the same obligor and legally enforceable cross-default or cross-acceleration clauses are in place.3. By way of derogation from paragraph 1, for a corporate exposure covered by a credit derivative, the credit event referred to in point (a)(iii) of that paragraph shall not be required to be specified in the derivative contract, provided that all of the following conditions are met: (a) a 100 % vote is needed to amend the maturity, principal, coupon, currency or seniority status of the underlying corporate exposure; (b) the legal domicile in which the corporate exposure is governed has a well-established bankruptcy code that allows for a company to reorganise and restructure, and provides for an orderly settlement of creditor claims. Where the conditions set out in points (a) and (b) of this paragraph are not met, the credit protection may nonetheless be eligible subject to a reduction in the value as specified in Article 233(2).