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Version status: Entered into force | Document consolidation status: No known changes
Version date: 28 July 2016 - onwards
Version 2 of 2

Article 34 Terms of the support

1. The terms, including consideration, for providing the financial support shall be deemed to be in compliance with Article 19(7) of Directive 2014/59/EU, if the following conditions are met:

(a) the terms adequately reflect:

(i) the default risk of the receiving entity;

(ii) the seniority of the claim;

(iii) the expected loss for the group entity providing the support ('providing entity') in the event of a default of the receiving entity;

(iv) in case of a loan or committed facility, the maturity profile, based on a full disclosure of all relevant and up-todate information by the receiving entity and further information available to the providing entity;

(b) the terms reflect the best interest of the providing entity in accordance with Article 19(7) of Directive 2014/59/EU and the relation of benefits, risks and costs taken into account when determining the best interest, including direct or indirect benefits that may accrue to the providing entity as a result of the provision of financial support and of the benefits for the group from this provision.