S.L. 459.1 Art. 3Applicability of these regulations.

(1) The provisions of these regulations shall apply solely and exclusively to:

(a) financial collateral which consists of cash or instruments or credit claims;

(b) financial collateral which has been provided and which can be evidenced in writing; and

(c) financial collateral arrangements which can be evidenced in writing or in a legally equivalent manner: Provided that the evidencing of the provision of financial collateral shall allow for the identification of the financial collateral to which it applies. For this purpose, it is sufficient to prove that the book entry securities collateral has been credited to, or forms a credit in, the relevant account and that the cash collateral has been credited to, or forms a credit in, a designated account: Provided further that for credit claims, the inclusion of the claim in a list of claims submitted to the collateral taker in writing, or in a legally equivalent manner, is sufficient to identify that credit claim and to evidence the provision of the claim provided as financial collateral between the parties.

(2) In addition and without prejudice to the foregoing, the inclusion of the claim in a list of claims submitted to the collateral taker in writing, is sufficient to identify that credit claim and to evidence the provision of the claim provided as financial collateral against the debtor or third parties.

(3) The provisions of Article 7(1) of Financial Collateral Arrangements Directive and of regulations 6, 7, 8, 9 and 10(1) shall not apply to:

(a) any restriction on the enforcement of financial collateral arrangements or any restriction on the effect of a security financial collateral arrangement, any close out netting or set-off provision that is imposed by virtue of regulations 59 to 72 of the Recovery and Resolution Regulations or by virtue of the provisions under Title V, Chapter III, Section 3 or under Chapter IV of the CCP RRR or in terms of the relevant provisions of the Malta Financial Services Authority Act implementing the said provisions of the CCP RRR; or

(b) any restriction which:

(i) is imposed in terms of any applicable national law that facilitates the orderly resolution of:

(aa) an insurance company, insurance undertaking and assurance undertaking in terms of regulation 4(1)(g);

(bb) a central counterparty, settlement agent or clearing house, including similar institutions regulated under national law acting in the futures, options and derivatives markets to the extent not covered by Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems; or

(cc) a non-natural person, who acts in a trust or representative capacity on behalf of any one or more persons that includes any bondholders or holders of other forms of securitised debt or on behalf of any institution as defined in regulation 4(1)(a) to (l); and

(ii) is subject to safeguards at least equivalent to those set out in regulations 73 to 80 of the Recovery and Resolution Regulations or in Title V, Chapter V of the CCP RRR.