(1) A depositor's right to compensation may be the subject of an action against the designated authority.

(2) Without prejudice to rights which it may have under national law, the designated authority that makes payments under guarantee within a national framework shall have the right of subrogation to the rights of depositors in winding up or reorganisation proceedings for an amount equal to their payments made to depositors.

(3) Where a designated authority makes payments in the context of resolution proceedings, including the application of resolution tools or the exercise of resolution powers in accordance with Regulation 25, the designated authority may claim for an amount equal to its payments as a simple contract debt in a court of competent jurisdiction against the relevant credit institution.

(4) The claim referred to in paragraph (3) shall rank at the same level as covered deposits under national law governing normal insolvency proceedings under Chapter 7 of Part 11 of the Companies Act 2014 (No. 38 of 2014).