(1) Institutions and entities referred to in Regulation 2(1)(b) to (i) shall include a contractual term by which the creditor or party to the agreement or instrument creating the liability recognises that such liability may be subject to the write-down and conversion powers, and agrees to be bound by any reduction of the principal or outstanding amount due, conversion or cancellation that is effected by the exercise of those powers by a resolution authority (within the meaning of the Bank Recovery and Resolution Directive), provided that that liability complies with all of the following conditions:
(a)the liability is not excluded under Regulation 80(2) to (8);
(b)the liability is not a deposit referred to in section 1428A(1)(b)(i) or (ii) of the Act of 2014;
(c)the liability is governed by the law of a third country;
(d)the liability is issued or entered into on or after 28 December 2020.
(2) The resolution authority may decide that the obligation in paragraph (1) shall not apply to i
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