Recital (49)

In light of the mutualised nature of the Fund, it is appropriate to establish a dedicated procedure to be followed once its net accumulated use, where made possible by a prior contribution of the DGS, reaches certain thresholds. Such procedure should not lead to the inability of using the means of the Fund in a subsequent resolution action. Where the net use of the Fund over three years reaches a threshold equivalent to 10 % of its target level, the plenary session must provide guidance for future uses of the Fund facilitated by the contribution of the DGS, until replenishment is complete. If the net use of the Fund over three years reaches 20 % of its target level, the Board must inform the Council and the Commission. At that point, the Commission should review the rules on the contributions of the DGSs in resolution that permit the subsequent use of the Fund, as well as assess whether the applicable arrangements for the collection of contributions to replenish the Fund in those cases are appropriate. Moreover, the timeframe for re-reaching the target level should be extended to 10 years.