Commission Implementing Regulation (EU) No 908/2014Show full title

SECTION 2 Form of securities

Article 51 Form

1. A security may be given:

(a) as a cash deposit as referred to in Article 19(2) and (3) of Delegated Regulation (EU) No 907/2014; and/or

(b) by providing a guarantor in accordance with Article 21 of Delegated Regulation (EU) No 907/2014.

2. At the discretion of the competent authority, a security may be given by:

(a) pledging cash deposits in a bank;

(b) pledging recognised claims against a public body or public funds, which are due and payable and against which no other claim has precedence; and/or

(c) pledging collateral negotiable in the Member State concerned provided they are issued or guaranteed by that Member State.

3. The competent authority may impose additional terms for accepting securities of the type listed in paragraph 2.

Article 52 Negotiable collateral

1. Collateral pledged in accordance with point (c) of Article 51(2) shall, at the time the security is given, have a disposable value of at least 115 % of the value of the security required.

2. A competent authority may accept a security as referred to in point (c) of Article 51(2) only if the party offering it undertakes, in writing, either to give an additional security or to replace the original security should the disposable value of the security in question have been for a period of three months below 105 % of the value of the security required. That written undertaking shall not be necessary where national law already so provides. The competent authority shall regularly review the value of such security.

3. The disposable value of a security as referred to in point (c) of Article 51(2) shall be assessed by the competent authority, taking into account any costs of disposal.

4. The disposable value of securities shall be assessed using the last available quotation.

5. The party giving the security shall, at the request of the competent authority, provide proof of its disposable value.

Article 53 Replacement and assignment

1. Any form of security may be replaced by another.

However, the agreement of the competent authority shall be required in the following cases:

(a) where the original security has been forfeited but not yet realised; or

(b) where the replacement security is of a type listed in Article 51(2).

2. A block security may be replaced by another block security on condition that the new block security covers at least that part of the original block security assigned at the time of replacement to ensure fulfilment of one or more obligations still outstanding.

3. As soon as part of a block security is assigned to a particular obligation, the balance of the block security remaining shall be noted.