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Version status: Entered into force | Document consolidation status: Updated to reflect all known changes
Version date: 2 July 2014 - onwards
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Article 11 Use of funds

1. The financial means referred to in Article 10 shall be primarily used in order to repay depositors pursuant to this Directive.

2. The financial means of a DGS shall be used in order to finance the resolution of credit institutions in accordance with Article 109 of Directive 2014/59/EU. The resolution authority shall determine, after consulting the DGS, the amount by which the DGS is liable.

3. Member States may allow a DGS to use the available financial means for alternative measures in order to prevent the failure of a credit institution provided that the following conditions are met:

(a) the resolution authority has not taken any resolution action under Article 32 of Directive 2014/59/EU;

(b) the DGS has appropriate systems and procedures in place for selecting and implementing alternative measures and monitoring affiliated risks;

(c) the costs of the measures do not exceed the costs of fulfilling the statutory or contractual mandate of the DGS;

(d) the use of alternative measures

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