Sub-Section 2

By way of derogation from Articles 51 and 52, during the period from 1 January 2014 to 31 December 2021, instruments referred to in Article 484(4) that include in their terms and conditions a call with an incentive for them to be redeemed by the institution shall be subject to the requirements laid down in paragraphs 2 to 7 of this Article. The instruments shall qualify as Additional Tier 1 instruments provided the following conditions are met: the institution was able to exercise a call with an incentive to redeem only prior to 1 January 2013; the institution did not exercise the call; the conditions laid down in Article 52 are met from 1 January 2013. The instruments shall qualify as Additional Tier 1 instruments with their recognition reduced in accordance with Article 484(4) until the date of their effective maturity and thereafter shall qualify as Additional Tier 1 items without limit provided: the institution was able to exercise a call with an incentive to redeem only on or after 1 January 2013; the institution did not exercise the call on the date of the effective maturity of the instruments; the conditions laid down in Article 52 are met from the date of the effective maturity of the instruments. The instruments shall not qualify as Additional Tier 1 instruments, and shall not be subject to Article 484(4), from 1 January 2014 where the following conditions are met: the institution was able to exercise a call with an incentive to redeem between 31 December 2011 and 1 January 2013; the institution did not exercise the call on the date of the effective maturity of the instruments; the conditions laid down in Article 52 are not met from the date of the effective maturity of the instruments. The instruments shall qualify as Additional Tier 1 instruments with their recognition reduced in accordance with Article 484(4) until the date of their effective maturity, and shall not qualify as Additional Tier 1 instruments thereafter, where the following conditions are met: the institution was able to exercise a call with an incentive to redeem on or after 1 January 2013; the institution did not exercise the call on the date of the effective maturity of the instruments; the conditions laid down in Article 52 are not met from the date of the effective maturity of the instruments. The instruments shall qualify as Additional Tier 1 instruments in accordance with Article 484(4) where the following conditions are met: the institution was able to exercise a call with an incentive to redeem only prior to or on 31 December 2011; the institution did not exercise the call on the date of the effective maturity of the instruments; the conditions laid down in Article 52 were not met from the date of the effective maturity of the instruments. By way of derogation from Articles 62 and 63, during the period from 1 January 2014 to 31 December 2021, items referred to in Article 484(5) that qualified under the national transposition measures for point (f) or (h) of Article 57 of Directive 2006/48/EC and include in their terms and conditions a call with an incentive for them to be redeemed by the institution shall be subject to the requirements laid down in paragraphs 2 to 7 of this Article. The items shall qualify as Tier 2 instruments provided: the institution was able to exercise a call with an incentive to redeem only prior to 1 January 2013; the institution did not exercise the call; from 1 January 2013 the conditions laid down in Article 63 are met. The items shall qualify as Tier 2 items in accordance with Article 484(5) until the date of their effective maturity, and shall qualify thereafter as Tier 2 items without limit, provided the following conditions are met: the institution was able to exercise a call with an incentive to redeem only on or after 1 January 2013; the institution did not exercise the call on the date of the effective maturity of the items; the conditions laid down in Article 63 are met from the date of the effective maturity of the items. The items shall not qualify as Tier 2 items from 1 January 2013 where the following conditions are met: the institution was able to exercise a call with an incentive to redeem only between 31 December 2011 and 1 January 2013; the institution did not exercise the call on the date of the effective maturity of the items; the conditions laid down in Article 63 are not met from the date of the effective maturity of the items. The items shall qualify as Tier 2 items with their recognition reduced in accordance with Article 484(5) until the date of their effective maturity, and shall not qualify as Tier 2 items thereafter, where: the institution was able to exercise a call with an incentive to redeem on or after 1 January 2013; the institution did not exercise the call on the date of their effective maturity; the conditions set out in Article 63 are not met from the date of effective maturity of the items. The items shall qualify as Tier 2 items in accordance with Article 484(5) where: the institution was able to exercise a call with an incentive to redeem only prior to or on 31 December 2011; the institution did not exercise the call on the date of the effective maturity of the items; the conditions laid down in Article 63 are not met from the date of the effective maturity of the items. For the purposes of Articles 489 and 490, effective maturity shall be determined as follows: for the items referred to in paragraphs 3 and 5 of those Articles, it is the date of the first call with an incentive to redeem occurring on or after 1 January 2013; for the items referred to in paragraph 4 of those Articles, it is the date of the first call with an incentive to redeem occurring between 31 December 2011 and 1 January 2013; for the items referred to in paragraph 6 of those Articles, it is the date of the first call with an incentive to redeem prior to 31 December 2011.

← art_488__text_1 · All articles · Artikel 489 →

Source: EUR-Lex (Cellar) · retrieved 2026-09-25 · Text as adopted (Official Journal); later amendments are not incorporated in this text.