TITLE IVRESOLUTION
CHAPTER VIISafeguards
Article 78Protection for security arrangements
1
Member States shall ensure that there is appropriate protection for liabilities secured under a security arrangement so as to prevent one of the following:
a
the transfer of assets against which the liability is secured unless that liability and benefit of the security are also transferred;
b
the transfer of a secured liability unless the benefit of the security are also transferred;
c
the transfer of the benefit of the security unless the secured liability is also transferred; or
d
the modification or termination of a security arrangement through the use of ancillary powers, if the effect of that modification or termination is that the liability ceases to be secured.
2
Notwithstanding paragraph 1, where necessary in order to ensure availability of the covered deposits the resolution authority may:
a
transfer covered deposits which are part of any of the arrangements mentioned in paragraph 1 without transferring other assets, rights or liabilities that are part of the same arrangement; and
b
transfer, modify or terminate those assets, rights or liabilities without transferring the covered deposits