3.

Annex III to Guideline ECB/2007/2 is amended as follows: 1. the following definitions are replaced: ‘— “credit institution” means either: (a) a credit institution within the meaning of Articles 2 and 4(1)(a) of the Banking Directive, as implemented in national law, that is subject to supervision by a competent authority; or (b) another credit institution within the meaning of Article 123(2) of the Treaty on the Functioning of the European Union that is subject to scrutiny of a standard comparable to supervision by a competent authority,’ ‘— “public sector body” means an entity within the “public sector”, the latter term as defined in Article 3 of Council Regulation (EC) No 3603/93 of 13 December 1993 specifying definitions for the application of the prohibitions referred to in Articles 104 and 104b(1) of the Treaty (2), ‘— “event of default” means any impending or existing event, the occurrence of which may threaten the performance by an entity of its obligations under the national arrangements implementing this Guideline or any other rules (including those specified by the Governing Council with respect to Eurosystem monetary policy operations) applying to the relationship between that entity and any of the Eurosystem CBs, including: (a) where the entity no longer meets the access criteria and/or technical requirements laid down in Annex II and, if applicable, Annex V; (b) the opening of insolvency proceedings in relation to the entity; (c) the submission of an application relating to the proceedings referred to in subparagraph (b); (d) the issue by the entity of a written declaration of its inability to pay all or any part of its debts or to meet its obligations arising in relation to intraday credit; (e) the entry of the entity into a voluntary general agreement or an arrangement with its creditors; (f) where the entity is, or is deemed by the relevant participating NCB to be, insolvent or unable to pay its debts; (g) where the entity’s credit balance on its PM account or all or a substantial part of the entity’s assets are subject to a freezing order, attachment, seizure or any other procedure that is intended to protect the public interest or the rights of the entity’s creditors; (h) where participation of the entity in a TARGET2 component system and/or in an ancillary system has been suspended or terminated; (i) where any material representation or pre-contractual statement made by the entity or which is implied to have been made by the entity under the applicable law is incorrect or untrue; or (j) the assignment of all or a substantial part of the entity’s assets.’; 2. Paragraph 1 is replaced by the following: ‘1. Each participating NCB shall provide intraday credit to the entities referred to in paragraph 2 and which have an account with the relevant participating NCB, provided that such entities are not subject to restrictive measures adopted by the Council of the European Union or Member States pursuant to Article 65(1)(b), Article 75 or Article 215 of the Treaty on the Functioning of the European Union, [the implementation of which, in the view of [CB/country reference] after informing the ECB, is incompatible with the smooth functioning of TARGET2]. However, no intraday credit may be granted to an entity established in a country other than the Member State in which the seat of the participating NCB with which that entity has an account is located.’; 3. Paragraph 4 is replaced by the following: ‘4. Intraday credit shall be based on eligible collateral and granted by means of collateralised intraday overdrafts and/or intraday repurchase transactions in compliance with the additional minimum common features (including the events of default therein listed, as well as their respective consequences) that the Governing Council specifies with respect to Eurosystem monetary policy operations. Eligible collateral shall consist of the same assets and instruments as eligible assets for Eurosystem monetary policy operations, and shall be subject to the same valuation and risk control rules as those laid down in Annex I to Guideline ECB/2000/7.’; 4. Paragraph 12 is replaced by the following: ‘12. (a) Participating NCBs shall suspend or terminate access to intraday credit if one of the following events of default occurs: (i) the account of the entity with the participating NCB is suspended or closed; (ii) the entity concerned ceases to meet any of the requirements laid down in this Annex for the provision of intraday credit; (iii) a decision is made by a competent judicial or other authority to implement in relation to the entity a procedure for the winding-up of the entity or the appointment of a liquidator or analogous officer over the entity or any other analogous procedure; (iv) the entity becomes subject to the freezing of funds and/or other measures imposed by the Union restricting the entity’s ability to use its funds; or (b) participating NCBs may suspend or terminate access to intraday credit if an NCB suspends or terminates the participant’s participation in TARGET2 pursuant to Article 34.2(b) to (e) of Annex II, or one or more events of default (other than those referred to in Article 34.2(a)) occur; or (c) if the Eurosystem suspends or limits or excludes counterparties’ access to monetary policy instruments on the grounds of prudence or otherwise in accordance with Section 2.4 of Annex I to Guideline ECB/2000/7, participating NCBs shall accordingly implement that suspension or limitation or exclusion in respect of access to intraday credit pursuant to provisions in the contractual or regulatory arrangements applied by the respective NCB.’