PART 2Subsidy control requirements
CHAPTER 2Prohibitions and other requirements
Ailing or insolvent enterprises
I1I221Restructuring deposit takers or insurance companies
1
A subsidy for restructuring an ailing or insolvent deposit taker or insurance company is prohibited by this section unless the conditions in subsections (2) to (4) are met.
2
The condition in this subsection is that—
a
the subsidy is given on the basis of a restructuring plan, and
b
the public authority giving the subsidy is satisfied that the restructuring plan—
i
is credible, and
ii
is likely to restore long-term viability.
3
The condition in this subsection is that the beneficiary of the subsidy, its shareholders, its creditors or the business group to which the beneficiary belongs—
a
have contributed significantly to the restructuring costs from their own resources, or
b
have a contractual obligation to do so.
4
The condition in this subsection is that the public authority giving the subsidy has been or reasonably expects to be properly remunerated for the subsidy.