Chapter 5: Protection of Rights
Article 22
The resolution procedures referred to in this Law shall be applied as follows:
1. If the SIFI or the transitional entity is to be sold, the amount received by the owners and creditors, whose assets or liabilities are not transferred, shall not fall below what they would have received had the SIFI been liquidated at the start of the procedure.
2. When the amendment of rights procedure is taken, the losses sustained by the owners and creditors whose rights have been amended may not exceed the losses they would have sustained had the SIFI been liquidated at the start of the procedure.
3. In order to determine the rights of owners and creditors, as set forth in paragraphs (1) and (2) of this Article, the competent authority shall take any action necessary to assess the SIFI through an accredited valuer after implementing resolution procedures. The assessment stated herein shall aim to:
a) determine the amounts the owners and creditors would have received had the SIFI been liquidated at the start of procedures;
b) state the amounts received by the owners and creditors from resolution procedures; and
c) determine the difference between what they have received in accordance with subparagraph (b) of this paragraph, and what they would have received in accordance with subparagraph (a) of this paragraph, and they shall be compensated for the difference by the resolution funds and the competent authority.
Article 23
1. The following rights and arrangements shall be protected when implementing the resolution procedures stipulated under this Law:
a) Guaranteed liabilities.
b) Settlement and set-off arrangements.
c) Securitization arrangements.
d) Liabilities arising from subscription to settlement systems.
2. The rights and liabilities referred to in paragraph (1) of this Article shall be protected as follows:
a) Prohibiting the transfer of a guarantee without the transfer of the related guaranteed liability, and vice versa.
b) Prohibiting the transfer of part of the guarantees or liabilities subject to the financial guarantee measures by the transfer of ownership and set-off arrangements.
c) Prohibiting the partial transfer of assets or liabilities arising from securitization arrangements.
d) Prohibiting the amendment, cancellation, or reduction of the arrangements stipulated under paragraph (1) of this Article, including any procedure that would render these arrangements inexecutable.
e) Prohibiting any procedure that would hinder the implementation of settlement system contracts, or the rules stipulated therein, and render them inexecutable.