Version in force , Modified +416 −46§
Amended by Regulation (EU) 2019/876 32019R0876 on EUR-Lex (external, EUR-Lex)
Explanation, written by a model and checked against the cited text
The heading and article text now cover eligible liabilities as well as own funds, and the introductory line is restructured into a numbered paragraph 1 listing the situations requiring prior permission of the competent authority.
A new point is added allowing for the reduction, distribution or reclassification of share premium accounts related to own funds instruments, and the former point (b) on calls, redemptions, repayments or repurchases of Additional Tier 1 or Tier 2 instruments is renumbered as point (c).
A new paragraph 2 is added requiring an institution to obtain the prior permission of the resolution authority before calling, redeeming, repaying or repurchasing eligible liabilities instruments not covered by paragraph 1, prior to their contractual maturity date.
Cited: Art. 77, v1 (external, EUR-Lex) · Art. 77, v2 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex, before and after
Previous version, in force 26 April 2019 02013R0575-20190426 → this version, in force 27 June 2019 02013R0575-20190627
Article 77
Conditions for reducing own funds
and eligible liabilities
1. An institution shall require obtain the prior permission of the competent authority to do either or both any of the following:
(a) reduce, redeem or repurchase Common Equity Tier 1 instruments issued by the institution in a manner that is permitted under applicable national law;
(b) reduce, distribute or reclassify as another own funds item the share premium accounts related to own funds instruments;
(c) effect the call, redemption, repayment or repurchase of Additional Tier 1 instruments or Tier 2 instruments as applicable, prior to the date of their contractual maturity.2. An institution shall obtain the prior permission of the resolution authority to effect the call, redemption, repayment or repurchase of eligible liabilities instruments that are not covered by paragraph 1, prior to the date of their contractual maturity.