Regulation 138 Protection for financial collateral, set-off and netting agreements.

(1) In the case of a partial property transfer or modification of contracts, where there is an existing -

(a) set-off arrangement,

(b) netting arrangement, or

(c) title transfer financial collateral arrangement,

(in this Regulation referred to as the "arrangements") between the institution under resolution and another person, the following protections shall apply:

(i) the transfer shall not operate to transfer some, but not all, of the rights and liabilities under the arrangements;

(ii) a modification of contracts in respect of the arrangements shall not be permitted.

(2) Notwithstanding paragraph (1), where necessary in order to ensure availability of covered deposits, a resolution order may -

(a) transfer covered deposits which are part of any of the arrangements, mentioned in paragraph (1), without transferring other assets, rights or liabilities that are part of the same arrangement, or

(b) transfer, modify or terminate those assets, rights or liabilities without transferring the c

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