In order to preserve legitimate capital market arrangements in the event of a transfer of some, but not all, of the assets, rights and liabilities of a failing institution, it is appropriate to include safeguards to prevent the splitting of linked liabilities, rights and contracts, as appropriate. Such a restriction on selected practices in relation to linked contracts should extend to contracts with the same counterparty covered by security arrangements, title transfer financial collateral arrangements, set-off arrangements, close out netting agreements, and structured finance arrangements. Where the safeguard applies, resolution authorities should be bound to transfer all linked contracts within a protected arrangement, or leave them all with the residual failing institution. Those safeguards should ensure that the regulatory capital treatment of exposures covered by a netting agreement for the purposes of Directive 2013/36/EU is not affected.
Text applicable on 7 Oct 2026Consolidated version of 11 May 2026In forceUnofficial text · authentic on EUR-Lex (opens in a new tab)
BRRD Recital (95) — as applicable on 7 Oct 2026 (version of 11 May 2026)
Teal underlined text links to another provision. Dotted underlined words are defined terms: hover, focus or tap them to read the definition.