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

¹If the re­struc­tur­ing plan provides for the con­ver­sion of debt cap­it­al in­to equity cap­it­al then:

a.

suf­fi­cient debt cap­it­al must be con­ver­ted in­to equity cap­it­al to en­sure that the bank holds the re­quired cap­it­al to con­tin­ue its busi­ness activ­it­ies after the re­struc­tur­ing is com­pleted;

b.

share cap­it­al must be com­pletely writ­ten down be­fore con­vert­ing debt cap­it­al in­to equity cap­it­al;

c.

debt cap­it­al may be con­ver­ted in­to equity cap­it­al only if the debt in­stru­ments is­sued by the bank which are part of ad­di­tion­al core cap­it­al or sup­ple­ment­ary cap­it­al have already been con­ver­ted in­to equity cap­it­al, in par­tic­u­lar con­tin­gent con­vert­ible bonds;

d.

the fol­low­ing or­der of rank shall be ob­served when con­vert­ing debt cap­it­al in­to equity cap­it­al where claims of the next rank are only con­ver­ted if the con­ver­sion of claims of the pre­vi­ous rank does not suf­fice to meet the cap­it­al ad­equacy re­quire­ments in ac­cord­ance with let­ter a:

1.

sub­or­din­ated claims without cap­it­al ad­equacy eli­gib­il­ity,

2.

oth­er claims not ex­cluded from the con­ver­sion, with the ex­cep­tion of de­pos­its, and

3.

de­pos­its, in so far as they are not priv­ileged.