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RAR 3.4.9

(1) The DFSA may, subject to (2), require an Authorised Firm to include in its contractual documents a contractual term by which the creditor or party to an agreement creating an Eligible Liability recognises that that liability may be subject to the Write Down or Conversion Power and agrees to be bound by any reduction of the principal or outstanding amount due, conversion or cancellation that is effected by the exercise of that power by the DFSA, provided that such liability is:
(a) not excluded under RAR Rule 3.4.1(4);
(b) governed by the law of another jurisdiction; and
(c) issued or entered into after the date on which these Rules come into force.
(2) Where the DFSA determines that the liability referred to in (1) can be subject to Write Down or Conversion Powers by the Resolution Authority of another jurisdiction or pursuant to a binding agreement concluded with that other jurisdiction, (1)(a) will not apply.
(3) A failure to include the terms referred to in (1) does not prevent the DFSA from exercising the Write Down or Conversion Power in relation to that liability.
(4) The DFSA may require the Authorised Firm to provide independent legal opinions on the enforceability and effectiveness of the contractual bail-in recognition provisions.

 

Derived from DFSA RMI283/2020 (Made 16th December 2020). [VER1/04-21]