(1) Where the DFSA exercises the Write Down or Conversion Power in the context of the application of the Bail-In Tool, the write down or conversion will take effect and be immediately binding on the Authorised Firm in Resolution and the creditors and shareholders of the Authorised Firm in Resolution.
(2) The DFSA may complete, or cause the completion, of all administrative and procedural tasks necessary to give effect to the Write Down or Conversion Power including, but not limited to, effecting amendments to all relevant registers and listing rules applicable.
(3) Where the DFSA reduces to zero the principal amount of, or outstanding amount payable in respect of, a liability by means of the Write Down or Conversion Power, that liability and any obligations, rights or claims arising in relation to it that are not accrued at the time when the power is exercised are fully discharged for all purposes in relation to the Authorised Firm in Resolution or any successor entity in any subsequent winding up.
(4) Where the DFSA reduces in part, but not in full, the principal amount of, or outstanding amount payable in respect of, a liability by means of the Write Down or Conversion Power:
(a) the liability, and the counterparty's corresponding claim, is discharged to the extent of the amount reduced; and
(b) the relevant instrument or agreement that created the original liability continues to apply in relation to the residual principal amount of, or outstanding amount payable in respect of the liability, subject to any modification of the amount of interest payable to reflect the reduction of the principal amount, and any further modification of the terms that the DFSA might make by means of the Write Down or Conversion Power or other powers under Article 84N
of the Law.
(5) The DFSA is not prevented from exercising a Resolution Power or applying a Resolution Tool because of any procedural impediments to the conversion of Eligible Liabilities to Shares by virtue of the instrument of incorporation or of any other DIFC law, including pre-emption rights for shareholders or requirements for the consent of shareholders to an increase in capital.