Translation of "Payer le passif exigible avec l'actif disponible " (French → English) :

(e) other items of the nature of demand liabilities not included in account 250 (Loans and Notes Payable), account 252 (Accounts Payable — Affiliated Companies), account 257 (Interest Payable and Accrued) and account 259 (Other Current Liabilities).

An entity should be considered to be failing or likely to fail where it infringes or is likely, in the near future, to infringe the requirements for continuing authorisation, where the assets of the entity are, or are likely in the near future to be, less than its liabilities, where the entity is, or is likely in the near future to be, unable to pay its debts as they fall due, or where the entity requires extraordinary public financial support except in the particular circumstances laid down in this Regulation.

(e) when the bridge institution tool or asset separation tool is applied, to be taken into account for the decision on the assets, rights, liabilities or shares or other instruments of ownership to be transferred and the decision on the value of any consideration to be paid to the institution under resolution or, as the case may be, to the owners of the shares or other instruments of ownership.

The fact that an institution does not meet the requirements for authorization should not justify per-se the entry into resolution, especially if the institution is still or likely to be still viable.An institution should be considered as failing or likely to fail when it is or is to be in breach of the capital requirements for continuing authorisation because it has incurred or is likely to incur in losses that are to deplete all or substantially all of its own funds when the assets of the institution are or are to be less than its liabilities when the institution is or is to be unable to pay its obligations as they fall due or when the ...[+++]institution requires extraordinary public financial supportThe need for emergency liquidity assistance from a central bank should not in itself be a condition that sufficiently demonstrates that an institution is or will be, in the near-term, unable to pay its liabilities as they fall dueIn order to preserve financial stability, in particular in case of a systemic liquidity shortage, State guarantees on liquidity facilities provided by central banks or State guarantees on newly issued liabilities should not trigger the resolution framework provided that a number of conditions are met.

Stanley Hamilton and Robert Heinkel of the University of British Columbia suggested that information on the assets and liabilities of the fund should be available at public meetings and that the Board's audit committee should provide comparative information so that the fund's performance could be properly assessed.

We were the first country to adopt a standard that, based on principles, not the legal status of the instrument, that requires instruments to be classified as debt or equity based on the economic substance of those instruments.