(1) Where the DFSA exercises its power to suspend the termination rights under Article 84N(1)(k) of the Law of any party to a contract with an Authorised Firm in Resolution, the suspension will have effect from when notice under that Article is given, until midnight at the end of the second business day after the notice is given, provided that the payment and delivery obligations and the provision of collateral continue to be performed by the Authorised Firm in Resolution.
(2) A suspension shall not apply to payment and delivery obligations owed to payment systems, Central Counterparties, Securities Settlement Systems, Central Securities Depositories or the Central Bank.
(3) A person may exercise a termination right under a contract before the end of the period referred to in (1) if that person receives notice from the DFSA that the rights, assets or liabilities covered by the contract will not be:
(a) transferred to another entity; or
(b) subject to write down or conversion on the application of the Bail-In Tool.
(4) Where the DFSA exercises the power in (1) to suspend termination rights, and where no notice has been given under (3) those rights may be exercised on the expiry of the period of suspension, if the rights, assets or liabilities covered by the contract:
(a) remain with the Authorised Firm in Resolution and the DFSA has not applied the Bail-in Tool; or
(b) have been transferred to another entity, only on the occurrence of any continuing or subsequent enforcement event.
Derived from DFSA RMI283/2020 (Made 16th December 2020). [VER1/04-21]