(1) Where the resolution authority decides to apply a resolution tool to an institution or entity referred to in Regulation 2(1)(b) to (i), and that resolution action would result in losses being borne by creditors or their claims being converted, the resolution authority shall exercise the power to write-down and convert capital instruments and eligible liabilities in accordance with Regulation 95 immediately before or together with the application of the resolution tool.
(2) The resolution tools referred to in paragraph (1) are the following:
(a) the sale of business tool;
(b) the bridge institution tool;
(c) the asset separation tool;
(d) the bail-in tool.
(3) Subject to paragraph (4), the resolution authority may apply the resolution tools individually or in any combination.
(4) The resolution authority may apply the asset separation tool only together with another resolution tool.
(5) Where only the resolution tools referred to in paragraph (2)(a) or (b) are used, and they are us
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