art_23__para_3

3. After the resolution authority has decided to place an entity referred to in Article 1(1), points (a) to (e), under resolution, it shall ensure that a second valuation is carried out to: inform the decision on the appropriate resolution action to be taken; ensure that any losses of that entity are fully recognised at the moment the resolution tools are applied; inform the decision on the extent of the cancellation or dilution of instruments of ownership; inform the decision on the extent of the write-down or conversion of any unsecured liabilities, including debt instruments; where the bridge undertaking tool is applied, inform the decision on the assets, liabilities, rights and obligations or instruments of ownership that may be transferred to the bridge undertaking, and inform the decision on the value of any consideration that may be paid to the undertaking under resolution or, where relevant, to the holders of the instruments of ownership; where the sale-of-business tool is applied, inform the decision on the assets, liabilities, rights and obligations or instruments of ownership that may be transferred to the third-party purchaser and to inform the resolution authority’s understanding of what constitutes commercial terms for the purposes of Article 31.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-14 · Text as adopted (Official Journal); later amendments are not incorporated in this text.