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Capital Requirements Regulation (CRR)
Article 494a

Article 494a — Grandfathering of issuances through special purpose entities

  1. By way of derogation from Article 52, capital instruments not issued directly by an institution shall qualify as Additional Tier 1 instruments until 31 December 2021 only where all the following conditions are met:
    1. the conditions set out in Article 52(1), except for the condition requiring that the instruments are directly issued by the institution;
    2. the instruments are issued through an entity within the consolidation pursuant to Chapter 2 of Title II of Part One;
    3. the proceeds are immediately available to the institution without limitation and in a form that satisfies the conditions set out in this paragraph.
  2. By way of derogation from Article 63, capital instruments not issued directly by an institution shall qualify as Tier 2 instruments until 31 December 2021 only where all the following conditions are met:
    1. the conditions set out in Article 63(1), except for the condition requiring that the instruments are directly issued by the institution;
    2. the instruments are issued through an entity within the consolidation pursuant to Chapter 2 of Title II of Part One;
    3. the proceeds are immediately available to the institution without limitation and in a form that satisfies the conditions set out in this paragraph.