(1) A proposed capital instruments order shall write-down or convert capital instruments in accordance with the priority of claims under normal insolvency proceedings, in a way that produces the following results:
(a) Common Equity Tier 1 items are reduced first in proportion to the losses and to the extent of their capacity and the resolution authority takes one or more of the actions specified in Regulation 86(1) in respect of holders of Common Equity Tier 1 instruments;
(b) the principal amount of Additional Tier 1 instruments is written down or converted into Common Equity Tier 1 instruments or both, to the extent required to achieve the resolution objectives set out in Regulation 61 or to the extent of the capacity of the relevant capital instruments, whichever is lower;
(c) the principal amount of Tier 2 instruments is written down or converted into Common Equity Tier 1 instruments, or both, to the extent required to achieve the resolution objectives set out in Regulation 61 or t
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