Ordinance of the Swiss Financial Market Supervisory Authority on the Insolvency of Banks and Securities Dealers

¹If the bank­ruptcy as­sets are not suf­fi­cient to con­tin­ue the bank­ruptcy pro­ceed­ings, the bank­ruptcy li­quid­at­or shall sub­mit a re­quest to FINMA to dis­con­tin­ue the pro­ceed­ings.

²FINMA shall con­tin­ue the pro­ceed­ings in ex­cep­tion­al cases, in par­tic­u­lar where there is a spe­cial in­terest in do­ing so, even if the bank­ruptcy as­sets are not suf­fi­cient.

³If FINMA in­tends to dis­con­tin­ue pro­ceed­ings, it shall give pub­lic no­tice of this fact, stat­ing that it will con­tin­ue them if a cred­it­or can provide se­cur­ity for the costs of the pro­ceed­ings not covered by the bank­ruptcy as­sets with­in a spe­cified dead­line. FINMA shall set the dead­line as well as the type and amount of the se­cur­ity.

⁴If the re­quired se­cur­ity is not provided with­in the dead­line, all pledgees may de­mand real­isa­tion of the as­sets pledged in their fa­vour by FINMA with­in a dead­line spe­cified by the lat­ter. FINMA shall in­struct a bank­ruptcy li­quid­at­or to pro­ceed with the real­isa­tion.

⁵In the case of leg­al en­tit­ies, FINMA shall or­der the real­isa­tion of as­sets that are not sub­ject to a de­mand for real­isa­tion from a pledgee with­in the spe­cified dead­line. Any pro­ceeds re­main­ing after the real­isa­tion costs and any en­cum­brances at­tached to in­di­vidu­al as­sets are covered go to the fed­er­al gov­ern­ment once the costs in­curred by FINMA have been covered.

⁶Where bank­ruptcy pro­ceed­ings against in­di­vidu­als are dis­con­tin­ued, the debt en­force­ment pro­ced­ure is gov­erned by Art­icle 230 para­graphs 3 and 4 DEBA¹.