1. Supervisory authorities shall take all of the following into account for the purposes of the assessment referred to in Article 90(4) of Directive 2009/138/EC:
(a) the legal effectiveness and enforceability of the terms of the commitment in all relevant jurisdictions;
(b) the contractual terms of the arrangement that the insurance or reinsurance undertaking has entered into, or will enter into, with the counterparties to provide funds;
(c) where relevant, the insurance or reinsurance undertaking's memorandum and articles of association or statutes;
(d) whether the insurance or reinsurance undertaking has processes in place to inform the supervisory authorities of any future changes, which may have the effect of reducing the loss-absorbency of the ancillary own-fund item, to any of the following:
(i) the structure or contractual terms of the arrangement;
(ii) the status of the counterparties concerned;
(iii) the recoverability of the ancillary own funds item.
2. Supervisory authoritie
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