CA-2.1.10
In addition to those contained in Rule CA-2.1.9, the following conditions also apply:
(a) The only events of default must be non-payment of any amount falling due under the terms of the instrument or the winding-up of the investment firm licensee ;
(b) The remedies available to the subordinated creditor in the event of non-payment or other breach of the written agreement or instrument must be limited to petitioning for the winding up of the investment firm licensee or proving the debt in a liquidation of the investment firm licensee ;
(c) Any events of default and any remedy described in (b) must not prejudice the matters in (a);
(d) The debt must not become due and payable before its stated final maturity date (if any) except on an event of default complying with (a);
(e) The debt agreement or terms of the instrument are governed by the laws of Bahrain;
(f) To the fullest extent permitted under the laws of the relevant jurisdictions, creditors must waive their right to set off amounts they owe the investment firm licensee against subordinated amounts included in the investment firm licensee's capital resources owed to them by the investment firm licensee ;
(g) The terms of the instrument must be set out in a written agreement that contains terms that provide for the conditions set out in (a) to (f); and
(h) The investment firm licensee has obtained an external legal opinion stating that the requirements in (a) to (g) have been met.
Amended: January 2007