(1) Where the bail-in tool is being applied, the write-down and conversion powers shall be exercised, subject to any exclusions under Regulation 80(2) to (9), in accordance with the following requirements:
(a) Common Equity Tier 1 items are reduced in accordance with Regulation 96(1)(a);
(b) where the total reduction pursuant to subparagraph (a) is less than the sum of the amounts referred to in Regulation 86(4)(b) and (c), the resolution authority shall reduce the principal amount of Additional Tier 1 instruments to the extent required and to the extent of their capacity;
(c) where the total reduction pursuant to subparagraphs (a) and (b) is less than the sum of the amounts referred to in Regulation 86(4)(b) and (c), the resolution authority shall reduce the principal amount of Tier 2 instruments to the extent required and to the extent of their capacity;
(d) where the total reduction of shares or other instruments of ownership and relevant capital instruments pursuant to subparagraph
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