Decision of the European Central Bank of 24 July 2007 concerning the terms and conditions of TARGET2-ECB (ECB/2007/7) (2007/601/EC)

[F1 TITLE VII U.K. TERMINATION AND CLOSURE OF [F2 T2S DCAS] U.K.

Article 23 U.K. Duration and ordinary termination of [F2 T2S DCAs]

1. Without prejudice to Article 24, a [F2 T2S DCA] in TARGET2-ECB is opened for an indefinite period of time.

2. A [F2 T2S DCA holder] may terminate its [F2 T2S DCA] in TARGET2-ECB at any time giving 14 business days' notice thereof, unless it agrees a shorter notice period with the ECB.

3. The ECB may terminate a [F2 T2S DCA holder's] [F2 T2S DCA] in TARGET2-ECB at any time giving three months' notice thereof, unless it agrees a different notice period with that [F2 T2S DCA holder] .

4. On termination of the [F2 T2S DCA] , the confidentiality duties laid down in Article 27 remain in force for a period of five years starting on the date of termination.

5. On termination of the [F2 T2S DCA] , it shall be closed in accordance with Article 25.

Article 24 U.K. Suspension and extraordinary termination of participation

1. A [F2 T2S DCA holder's] participation in TARGET2-ECB shall be immediately terminated without prior notice or suspended if one of the following events of default occurs:

(a) the opening of insolvency proceedings; and/or

(b) the [F2 T2S DCA holder] no longer meets the access criteria laid down in Article 5.

[F2 For the purposes of this paragraph, the taking of crisis prevention measures or crisis management measures within the meaning of Directive 2014/59/EU against a T2S DCA holder shall not automatically qualify as the opening of insolvency proceedings.]

2. The ECB may terminate without prior notice or suspend the [F2 T2S DCA holder's] participation in TARGET2-ECB if:

(a) one or more events of default (other than those referred to in paragraph 1) occur;

(b) the [F2 T2S DCA holder] is in material breach of these Conditions;

(c) the [F2 T2S DCA holder] fails to carry out any material obligation to the ECB;

(d) the [F2 T2S DCA holder] is excluded from, or otherwise ceases to be a member of, a T2S Closed Group of Users (CGU); and/or

(e) any other event related to the [F2 T2S DCA holder] occurs which, in the ECB's assessment, would threaten the overall stability, soundness and safety of TARGET2-E CB reference or of any other TARGET2 component system, or which would jeopardise the ECB's performance of its tasks as described in the Statute of the European System of Central Banks and of the European Central Bank, or poses risks on the grounds of prudence.

3. In exercising its discretion under paragraph 2, the ECB shall take into account, inter alia, the seriousness of the event of default or events mentioned in points (a) to (c).

4. [F3 (a) In the event that the ECB suspends or terminates a [F2 T2S DCA holder's] participation in TARGET2-ECB under paragraph 1 or 2, the ECB shall immediately inform, by means of an ICM broadcast message or a T2S broadcast message, that [F2 T2S DCA holder , other CBs and [F2 T2S DCA holders] and PM account holders in all of the TARGET2 component systems of such suspension or termination. Such a message shall be deemed to have been issued by the home CB of the T2S DCA holder] and PM account holder that receives the message.]

[F4 (b) In the event that the ECB is informed by another CB of a suspension or termination of a participant in another TARGET2 component system, the ECB shall immediately inform its participants of such suspension or termination by means of an ICM broadcast message or of a T2S broadcast message depending on which technical option provided for in Article 19 the [F2 T2S DCA holder] uses.]

(c) Once such an ICM broadcast message (in the case of PM account holders) or T2S broadcast message (in the case of [F2 T2S DCA holders] ) has been received by the participants, such participants shall be deemed informed of the termination/suspension of a [F2 T2S DCA holder's] participation in TARGET2-ECB or another TARGET2 component system. The participants shall bear any losses arising from the submission of a payment order to participants whose participation has been suspended or terminated if such payment order was entered into TARGET2-ECB after receipt of the ICM broadcast message or of the T2S broadcast message depending on which technical option provided for in Article 19 the [F2 T2S DCA holder] uses.

5. Upon termination of a [F2 T2S DCA holder's] participation, TARGET2-ECB shall not accept any new payment orders to or from that [F2 T2S DCA holder] .

[F5 6. If a [F2 T2S DCA holder] is suspended from TARGET2-ECB on grounds other than those specified in paragraph (1)(a), all its incoming and outgoing payment orders shall only be presented for settlement after they have been explicitly accepted by the suspended [F2 T2S DCA holder's] CB.]

[F6 7. If a [F2 T2S DCA holder is suspended from TARGET2-ECB on the grounds specified in paragraph (1)(a), any outgoing payment orders from that T2S DCA holder] shall only be processed on the instructions of its representatives, including those appointed by a competent authority or a court, such as the [F2 T2S DCA holder's] insolvency administrator, or pursuant to an enforceable decision of a competent authority or a court providing instructions as to how the payments are to be processed. All incoming payments shall be processed in accordance with paragraph (6).]

Textual Amendments

F3 Substituted by Decision (EU) 2016/821 of the European Central Bank of 26 April 2016 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2016/9).

F4 Deleted by Decision (EU) 2016/821 of the European Central Bank of 26 April 2016 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2016/9).

F5 Substituted by Decision (EU) 2017/2081 of the European Central Bank of 10 October 2017 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2017/30).

F6 Inserted by Decision (EU) 2017/2081 of the European Central Bank of 10 October 2017 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2017/30).

Article 25 U.K. Closure of [F2 T2S DCAs]

1. [F2 T2S DCA holders] may request the ECB to close their [F2 T2S DCAs] at any time provided they give the ECB 14 business days' notice thereof.

2. On termination of participation, pursuant to either Article 23 or 24, the ECB shall close the [F2 T2S DCA] of the [F2 T2S DCA holder] concerned, after having settled or returned any unsettled payment orders and made use of its rights of pledge and set-off under Article 26.]

Textual Amendments

F1 Inserted by Decision (EU) 2015/929 of the European Central Bank of 26 May 2015 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2015/22).

F2 Substituted by Decision (EU) 2018/1625 of the European Central Bank of 8 October 2018 amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2018/24).