Prudential Regulation Authority Rulebook

2.1

Subject to 2.2, a BRRD undertaking must not create a new obligation or materially amend an existing obligation under a third-country law financial arrangement unless the third-country law financial arrangement is solely with an excluded person.

2.2

A BRRD undertaking may create a new obligation or materially amend an existing obligation under a third-country law financial arrangement where each counterparty to the third-country law financial arrangement, other than a counterparty which is an excluded person, agrees in an enforceable manner that if:

1. (1) a crisis prevention measure;
2. (2) crisis management measure; or
3. (3) recognised third-country resolution action

is taken in relation to the BRRD undertaking or any member of the same group as the BRRD undertaking, it shall be entitled to exercise termination rights under, or rights to enforce a security interest in connection with, the third-country law financial arrangement to the extent that it would be entitled to do so under the Special Resolution Regime if the third-country law financial arrangement were governed by the laws of any part of the United Kingdom.

2.3

For the purpose of 2.2, section 48Z of the Banking Act 2009 is to be disregarded to the extent that it relates to a crisis prevention measure other than the making of a mandatory reduction instrument by the Bank of England under section 6B of the Banking Act 2009.