AFME, working with Cleary Gottlieb, has developed a model clause package to help European financial institutions comply with the requirements of Article 55 of the Bank Recovery and Resolution Directive (BRRD).
Article 55 requires financial institutions in the European Union to include clauses in a range of contracts to give contractual effect to a bail-in of the relevant liability in a resolution of the institution.
The model clauses can support cross-border effectiveness and assist banks in complying with the requirements of Article 55 BRRD when issuing debt instruments and certain other contracts governed by the law of a jurisdiction outside the European Union law.