Art. 518a · Review of cross-default provisions

Version in force 27 June 2019, Inserted +585 −0§

Amended by Regulation (EU) 2019/876 32019R0876 on EUR-Lex (external, EUR-Lex)

Applies from: not readable (an inserted provision states its own application date only in prose) why

Explanation, written by a model and checked against the cited text

A new Article 518a has been added, requiring the Commission to review and assess by 28 June 2022 whether eligible liabilities should be able to be bailed-in without triggering cross-default clauses in other contracts, and whether a no-cross-default provision referring to eligible liabilities should be included in the terms governing other liabilities.

The new article also states that, where appropriate, this review and assessment shall be accompanied by a legislative proposal.

Cited: Art. 518a, v2 (external, EUR-Lex)

v1 is the previous version, v2 this one.

Article 518a
Review of cross-default provisions
By 28 June 2022, the Commission shall review and assess whether it is appropriate to require that eligible liabilities may be bailed-in without triggering cross-default clauses in other contracts, with a view to reinforcing as much as possible the effectiveness of the bail-in tool and to assessing whether a no-cross-default provision referring to eligible liabilities should be included in the terms or contracts governing other liabilities. Where appropriate, that review and assessment shall be accompanied by a legislative proposal.