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1. Member States shall ensure that resolution authorities have the power to suspend the termination rights of any party to a contract with an undertaking under resolution from the publication of the notice in accordance with Article 65(3) until midnight in the Member State of the resolution authority of the undertaking under resolution at the end of the business day following that publication, provided that the payment and delivery obligations and the provision of collateral continue to be performed.

2. Member States shall ensure that resolution authorities have the power to suspend the termination rights of any party to a contract with a subsidiary undertaking of an undertaking under resolution where any of the following applies:

(a) the obligations under that contract are guaranteed or are otherwise supported by the undertaking under resolution;

(b) the termination rights under that contract are based solely on the insolvency or financial condition of the undertaking under resolution;

(c) in the case of a transfer power that has been or may be exercised in relation to the undertaking under resolution, either:

(i) all the assets and liabilities of the subsidiary undertaking relating to that contract have been or may be transferred to and assumed by the recipient; or (ii) the resolution authority provides in any other way adequate protection for such obligations. The suspension of the termination rights shall take effect from the publication of the notice in accordance with Article 65(3) until midnight in the Member State where the subsidiary undertaking of the undertaking under resolution is established on the business day following that publication.

3. Any suspension under paragraph 1 or 2 shall not apply to:

(a) systems or operators of systems designated for the purposes of Directive 98/26/EC; or (b) CCPs authorised in the Union pursuant to Article 14 of Regulation (EU) No 648/2012 and third-country CCPs recognised by ESMA pursuant to Article 25 of that Regulation.

4. A person may exercise a termination right under a contract before the end of the period referred to in paragraph 1 or 2 where that person receives notice from the resolution authority that the rights and liabilities covered by the contract shall not be:

(a) transferred to another entity; or (b) subject to write-down or conversion in accordance with Article 35(1), point (a).

5. Where a resolution authority exercises the power specified in paragraph 1 or 2 of this Article to suspend termination rights, and where no notice has been given pursuant to paragraph 4 of this Article, those termination rights may be exercised on the expiry of the period of suspension, subject to Article 48, as follows:

(a) where the rights and liabilities covered by the contract have been transferred to another entity, a counterparty may exercise those termination rights in accordance with the terms of that contract only on the occurrence of any continuing or subsequent enforcement event by the recipient;

(b) where the rights and liabilities covered by the contract remain with the undertaking under resolution and the resolution authority has not applied the write-down or conversion tool to that contract for the purpose laid down in Article 35(1), point (a), a counterparty may exercise termination rights in accordance with the terms of that contract on the expiry of a suspension referred to in paragraph 1 of this Article.