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

1. Introductory Text

2. Article 1. Scope

3. Article 2. Intraday credit

4. Article 3. Terms and conditions of TARGET2-ECB

5. Article 4. Entry into force

6. Signature

7. 1. ANNEX

      TERMS AND CONDITIONS OF TARGET2-ECB

      1. TITLE I GENERAL PROVISIONS

         1. Article 1. Definitions

         2. Article 2. Appendices

         3. Article 3. General description of TARGET2-ECB and TARGET2

      2. TITLE II PARTICIPATION

         1. Article 4. Access criteria

         2. Article 5. Direct participants

         3. Article 6. Application procedure

         4. Article 7. TARGET2 directory

      3. TITLE III OBLIGATIONS OF THE PARTIES

         1. Article 8. Obligations of the ECB and the participants

         2. Article 9. Cooperation and information exchange

      4. TITLE IV MANAGEMENT OF PM ACCOUNTS AND PROCESSING OF PAYMENT ORDERS

         1. Article 10. Opening and management of PM accounts

         2. Article 11. Types of payment orders

         3. Article 12. Acceptance and rejection of payment orders

         4. Article 13. Priority rules

         5. Article 14. Liquidity limits

         6. Article 15. Liquidity reservation facilities

         7. Article 16. Predetermined settlement times

         8. Article 17. Payment orders submitted in advance

         9. Article 18. Settlement of payment orders in the entry disposition

         10. Article 19. Settlement and return of queued payment orders

         11. Article 20. Entry of payment orders into the system and their irrevocability

      5. TITLE V SECURITY REQUIREMENTS AND CONTINGENCY ISSUES

         1. Article 21. Business continuity and contingency procedures

         2. Article 22. Security requirements

      6. TITLE VI THE INFORMATION AND CONTROL MODULE

         1. Article 23. Use of the ICM

      7. TITLE VII COMPENSATION, LIABILITY REGIME AND EVIDENCE

         1. Article 24. Compensation scheme

         2. Article 25. Liability regime

         3. Article 26. Evidence

      8. TITLE VIII TERMINATION OF PARTICIPATION AND CLOSURE OF ACCOUNTS

         1. Article 27. Duration and ordinary termination of participation

         2. Article 28. Suspension and extraordinary termination of participation

         3. Article 29. Closure of PM accounts

      9. TITLE IX FINAL PROVISIONS

         1. Article 30. The ECB's rights of pledge and set-off

         2. Article 31. Security rights in relation to funds on sub-accounts

         3. Article 32. Confidentiality

         4. Article 33. Data protection, prevention of money laundering and related issues

         5. Article 34. Notices

         6. Article 35. Contractual relationship with network service provider

         7. Article 36. Amendment procedure

         8. Article 37. Third party rights

         9. Article 38. Governing law, jurisdiction and place of performance

         10. Article 39. Severability

         11. Article 40. Entry into force and binding nature

      10. Appendix I

          TECHNICAL SPECIFICATIONS FOR THE PROCESSING OF PAYMENT ORDERS

          1. In addition to the terms and conditions of TARGET2-ECB, the...

          2. 1. Technical requirements for participation in TARGET2-ECB regarding infrastructure, network and...

          3. 2. Payment message types

          4. 3. Double-entry check

          5. 4. Error codes

          6. 5. Predetermined settlement times

          7. 6. Settlement of payment orders in the entry disposition

          8. 7. Settlement of payment orders in the queue

          9. 8. Use of the ICM

          10. 9. The UDFS and the ICM User Handbook

      11. Appendix II

          TARGET2 COMPENSATION SCHEME

          1. 1. General principles

          2. 2. Conditions for compensation offers

          3. 3. Calculation of compensation

          4. 4. Procedural rules

      12. Appendix III

          TERMS OF REFERENCE FOR CAPACITY AND COUNTRY OPINIONS

          1. Terms of reference for capacity opinions for participants in TARGET2...

             1. I. DOCUMENTS EXAMINED

             2. II. ASSUMPTIONS

             3. III. OPINIONS REGARDING THE PARTICIPANT

                1. A. The Participant is a corporation duly established and registered or...

                2. B. The Participant has all the requisite corporate powers to execute...

                3. C. The adoption or execution and the performance by the Participant...

                4. D. No additional authorisations, approvals, consents, filings, registrations, notarisations or other...

                5. E. The Participant has taken all necessary corporate action and other...

          2. Terms of reference for country opinions for non-EEA participants in...

             1. 1. DOCUMENTS EXAMINED

             2. 2. ASSUMPTIONS

             3. 3. OPINION

                1. 3.1. Country-specific legal aspects [to the extent applicable]

                2. 3.2. General insolvency issues

                   1. 3.2.a Types of insolvency proceedings

                   2. 3.2.b Insolvency treaties

                3. 3.3. Enforceability of System Documents

                   1. 3.3.a Processing of payment orders

                   2. 3.3.b Authority of the ECB to perform its functions

                   3. 3.3.c Remedies in the event of default

                   4. 3.3.d Suspension and termination

                   5. 3.3.e Assignment of rights and obligations

                   6. 3.3.f Choice of governing law and jurisdiction

                4. 3.4. Voidable preferences

                5. 3.5. Attachment

                6. 3.6. Collateral [if applicable]

                   1. 3.6.a Assignment of rights or deposit of assets for collateral purposes,...

                   2. 3.6.b Priority of assignees’, pledgees’ or repo purchasers’ interest over that...

                   3. 3.6.c Enforcing title to security

                   4. 3.6.d Form and registration requirements

                7. 3.7. Branches [to the extent applicable]

                   1. 3.7.a Opinion applies to action through branches

                   2. 3.7.b Conformity with law

                   3. 3.7.c Required authorisations

      13. Appendix IV

          BUSINESS CONTINUITY AND CONTINGENCY PROCEDURE

          1. 1. General provisions

          2. 2. Measures of business continuity and contingency processing

          3. 3. Incident communication

          4. 4. Relocation the operation of the SSP to an alternative site...

          5. 5. Change of operating hours

          6. 6. Contingency processing

          7. 7. Failures linked to participants or ancillary systems

          8. 8. Other provisions

      14. Appendix V

          OPERATING SCHEDULE

          1. 1. TARGET2 is open on all days, except Saturdays, Sundays, New...

          2. 2. The reference time for the system is European Central Bank...

          3. 3. The current business day is opened during the evening of...

          4. 4. The ICM is available for liquidity transfers from 19.30 until...

          5. 5. The operating hours may be changed in the event that...

      15. Appendix VI

          FEE SCHEDULE AND INVOICING

          1. Fees and invoicing for direct participants

             1. 1. The monthly fee for the processing of payment orders in...

             2. 2. There shall be an additional monthly fee for direct participants...

             3. 3. In the case of direct participants, the following invoicing rules...

          2. Fees and invoicing for ancillary systems

             1. 4. An ancillary system using the ASI or the Participant Interface,...

             2. 5. Any fee payable in relation to a payment instruction submitted...

             3. 6. Each AS shall receive an invoice from its respective ASCB...

             4. 7. For the purposes of this paragraph, each AS that has...