Right to temporarily suspend termination right for contracts because of resolution measure
84.—(1)  This section applies to a contract one of the parties to which is —
(a)a pertinent financial institution that is the subject or proposed subject of a resolution measure;
(b)a pertinent financial institution in respect of which a foreign resolution authority of a foreign country or territory has carried out, or has informed the Authority that it has grounds to carry out, a foreign resolution; or
(c)an entity that is part of the same group of companies as that of a pertinent financial institution where —
(i)the pertinent financial institution is the subject or proposed subject of a resolution measure;
(ii)the contract has a termination right that is exercisable if the pertinent financial institution becomes insolvent or is in a certain financial condition; and
(iii)the obligations of the entity under the contract are guaranteed or otherwise supported by the pertinent financial institution.
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(2)  The Authority may, by written notice to the parties to the contract, suspend the exercise of any termination right in the contract for a specified period.
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(3)  The notice under subsection (2) does not apply to —
(a)a termination right under the contract which becomes exercisable for a breach of a basic substantive obligation only;
(b)a termination right under a contract between the pertinent financial institution and a person prescribed for the purposes of this paragraph by regulations made under section 126; or
(c)a termination right under a contract, or a contract within a class of contracts, prescribed for the purposes of this paragraph by regulations made under section 126.
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(4)  When exercising a power under subsection (2), the Authority must have regard to its impact on the safe and orderly functioning of the financial market and financial market infrastructures operating in Singapore.
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(5)  The notice under subsection (2) —
(a)may relate to all or any class or description of parties to a contract;
(b)may make different provisions for different classes or descriptions of parties to a contract; and
(c)may be of general or specific application.
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(6)  A copy of the notice under subsection (2) must be published —
(a)by the Authority in the Gazette and on its website; and
(b)by the pertinent financial institution on its website.
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(7)  In this section, a pertinent financial institution is a proposed subject of a resolution measure if the Authority is satisfied that there is a basis for that action under section 50 in relation to that pertinent financial institution.
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