1.   The following Appendices form an integral part of these Conditions:

Appendix I: Technical specifications for the processing of payment orders

Appendix II: TARGET2 compensation scheme

Appendix III: Terms of reference for capacity and country opinions

Appendix IV: Business continuity and contingency procedures

Appendix V: Operating schedule

Appendix VI: Fee schedule and invoicing

Appendix VII: Aggregated liquidity agreement

2.   In the event of any conflict or inconsistency between the content of any appendix and the content of any other provision in these Conditions, the latter shall prevail.

1.   TARGET2 provides real-time gross settlement for payments in euro, with settlement in central bank money.

2.   The following payment orders are processed in TARGET2-[insert CB/country reference]:

3.   TARGET2 is established and functions on the basis of the SSP. The Eurosystem specifies the SSP's technical configuration and features. The SSP services are provided by the SSP-providing CBs for the benefit of the Eurosystem CBs, pursuant to separate agreements.

4.   The [insert name of CB] is the provider of services under these Conditions. Acts and omissions of the SSP-providing CBs shall be considered acts and omissions of [insert name of CB], for which it shall assume liability in accordance with Article 31 below. Participation pursuant to these Conditions shall not create a contractual relationship between participants and the SSP-providing CBs when the latter act in that capacity. Instructions, messages or information which a participant receives from, or sends to, the SSP in relation to the services provided under these Conditions are deemed to be received from, or sent to, [insert name of CB].

5.   TARGET2 is legally structured as a multiplicity of payment systems composed of all the TARGET2 component systems, which are designated as ‘systems’ under the national laws implementing the Settlement Finality Directive. TARGET2-[insert CB/country reference] is designated as a ‘system’ under [insert the relevant legal provision implementing the Settlement Finality Directive].

6.   Participation in TARGET2 takes effect via participation in a TARGET2 component system. These Conditions describe the mutual rights and obligations of participants in TARGET2-[insert CB/country reference] and the [insert name of CB]. The rules on the processing of payment orders (Title IV) refer to all payment orders submitted or payments received by any TARGET2 participant.

1.   The following types of entities are eligible for direct participation in TARGET2-[insert CB/country reference]:

2.   The [insert name of the CB] may, at its discretion, also admit the following entities as direct participants:

3.   Electronic money institutions, within the meaning of [insert national law provisions implementing Article 1(3)(a) of Directive 2000/46/EC of the European Parliament and of the Council of 18 September 2000 on the taking up, pursuit of and prudential supervision of the business of electronic money institutions (6)], are not entitled to participate in TARGET2-[insert CB/country reference].

1.   Direct participants in TARGET2-[insert CB/country reference] shall comply with the requirements set out in Article 8(1) and (2). They shall have at least one PM account with the [insert name of CB].

2.   Direct participants may designate addressable BIC holders, regardless of their place of establishment.

3.   Direct participants may designate entities as indirect participants, provided that the conditions laid down in Article 6 are met.

4.   Multi-addressee access through branches may be provided as follows:

1.   Credit institutions established in the EEA may each enter into a contract with one direct participant that is either a credit institution within the meaning of Article 4(1)(a) or (b), or a CB, in order to submit payment orders and/or receive payments, and to settle them via the PM account of that direct participant. TARGET2-[insert CB/country reference] shall recognise indirect participants by registering such indirect participation in the TARGET2 directory, the latter as described in Article 9.

2.   Where a direct participant, which is a credit institution within the meaning of Article 4(1)(a) or (b), and an indirect participant belong to the same group, the direct participant may expressly authorise the indirect participant to use the direct participant's PM account directly to submit payment orders and/or receive payments by way of group-related multi-addressee access.

1.   For the avoidance of doubt, payment orders submitted or payments received by indirect participants pursuant to Article 6, and by branches under Article 5(4), shall be deemed to have been submitted or received by the direct participant itself.

2.   The direct participant shall be bound by such payment orders, regardless of the content of, or any non-compliance with, the contractual or other arrangements between that participant and any of the entities referred to in paragraph 1.

1.   To join TARGET2-[insert CB/country reference], applicant participants shall:

2.   Applicants shall apply in writing to the [insert name of CB], as a minimum enclosing the following documents/information:

3.   The [insert name of CB] may also request any additional information it deems necessary to decide on the application to participate.

4.   The [insert name of CB] shall reject the application to participate if:

5.   The [insert name of CB] shall communicate its decision on the application to participate to the applicant within one month of the [insert name of CB]'s receipt of the application to participate. Where the [insert name of CB] requests additional information pursuant to paragraph 3, the decision shall be communicated within one month of the [insert name of CB]'s receipt of this information from the applicant. Any rejection decision shall contain reasons for the rejection.

1.   The TARGET2 directory is the database of BICs used for the routing of payment orders addressed to:

It shall be updated weekly.

2.   Unless otherwise requested by the participant, BICs shall be published in the TARGET2 directory.

3.   Participants may only distribute the TARGET2 directory to their branches and entities with multi-addressee access.

4.   Entities specified in paragraph 1(b) and (c) shall only use their BIC in relation to one direct participant.

1.   The [insert name of CB] shall offer the services described in Title IV. Save where otherwise provided in these Conditions or required by law, the [insert name of CB] shall use all reasonable means within its power to perform its obligations under these Conditions, without guaranteeing a result.

2.   Participants shall pay to the [insert name of CB] the fees laid down in Appendix VI.

3.   Participants shall ensure that they are connected to TARGET2-[insert CB/country reference] on business days, in accordance with the operating schedule in Appendix V.

4.   The participant represents and warrants to the [insert name of CB] that the performance of its obligations under these Conditions does not breach any law, regulation or by-law applicable to it or any agreement by which it is bound.

1.   In performing their obligations and exercising their rights under these Conditions, the [insert name of CB] and participants shall cooperate closely to ensure the stability, soundness and safety of TARGET2-[insert CB/country reference]. They shall provide each other with any information or documents relevant for the performance of their respective obligations and the exercise of their respective rights under these Conditions, without prejudice to any banking secrecy obligations.

2.   The [insert name of CB] shall establish and maintain a system support desk to assist participants in relation to difficulties arising in connection with system operations.

3.   Up-to-date information on the SSP's operational status shall be available on the TARGET2 Information System (T2IS). The T2IS may be used to obtain information on any event affecting the normal operation of TARGET2.

4.   The [insert name of CB] may either communicate messages to participants by means of an ICM broadcast or by any other means of communication.

5.   Participants are responsible for the timely update of existing static data collection forms and the submission of new static data collection forms to the [insert name of CB]. Participants are responsible for verifying the accuracy of information relating to them that is entered into TARGET2-[insert CB/country reference] by the [insert name of CB].

6.   The [insert name of CB] shall be deemed to be authorised to communicate to the SSP-providing CBs any information relating to participants which the SSP-providing CBs may need in their role as service administrators, in accordance with the contract entered into with the network service provider.

7.   Participants shall inform the [insert name of CB] about any change in their legal capacity and relevant legislative changes affecting issues covered by the country opinion relating to them.

8.   Participants shall inform the [insert name of CB] of:

9.   Participants shall immediately inform the [insert name of CB] if an event of default occurs in relation to them.

1.   The [insert name of CB] shall open and operate at least one PM account and, if applicable, sub-accounts, for each participant.

2.   [Insert if applicable: No debit balance shall be allowed on PM accounts].

3.   [Insert if applicable: At the beginning and end of a business day, there shall be a zero balance on the PM accounts. Participants shall be deemed to have instructed the [insert name of CB] to transfer any balance at the end of a business day to the account designated by the participant].

4.   [Insert if applicable: At the beginning of the next business day such balance shall be retransferred to the participant's PM account].

5.   PM accounts and their sub-accounts shall be interest free, unless they are used to hold minimum reserves. In such a case, the calculation and payment of the remuneration of holdings of minimum reserves shall be governed by Council Regulation (EC) No 2531/98 of 23 November 1998 concerning the application of minimum reserves by the European Central Bank (7) and Regulation ECB/2003/9 of 12 September 2003 on the application of minimum reserves (8).

6.   In addition to the settlement of payment orders in the Payments Module, a PM account may be used to settle payment orders to and from Home Accounts, according to the rules laid down by the [insert name of CB].

7.   Participants shall use the ICM to obtain information on their liquidity position. The [insert name of CB] shall provide a daily statement of accounts to any participant that has opted for such service.

1.   Payment orders submitted by participants are deemed accepted by the [insert name of CB] if:

2.   The [insert name of CB] shall immediately reject any payment order that does not fulfil the conditions laid down in paragraph 1. The [insert name of CB] shall inform the participant of any rejection of a payment order, as specified in Appendix I.

1.   Instructing participants shall designate every payment order as one of the following:

If a payment order does not indicate the priority, it shall be treated as a normal payment order.

2.   Highly urgent payment orders may only be designated by:

All payment instructions submitted by an ancillary system through the Ancillary System Interface to debit or credit the participants' PM accounts shall be deemed to be highly urgent payment orders.

3.   In the case of urgent and normal payment orders, the payer may change the priority via the ICM with immediate effect. It shall not be possible to change the priority of a highly urgent payment.

1.   A participant may limit the use of available liquidity for payment orders in relation to other TARGET2 participants, except any of the CBs, by setting bilateral or multilateral limits. Such limits may only be set in relation to normal payment orders.

2.   Limits may only be set by or in relation to an AL group in its entirety. Limits shall not be set in relation to either a single PM account of an AL group member or by AL group members in relation to each other.

3.   By setting a bilateral limit, a participant instructs the [insert name of CB] that an accepted payment order shall not be settled if the sum of its outgoing normal payment orders to another TARGET2 participant's PM account minus the sum of all incoming urgent and normal payments from such TARGET2 participant's PM account would exceed this bilateral limit.

4.   A participant may set a multilateral limit for any relationship that is not subject to a bilateral limit. A multilateral limit may only be set if the participant has set at least one bilateral limit. If a participant sets a multilateral limit, it instructs the [insert name of CB] that an accepted payment order shall not be settled if the sum of its outgoing normal payment orders to all TARGET2 participants' PM accounts in relation to which no bilateral limit has been set, minus the sum of all incoming urgent and normal payments from such PM accounts would exceed this multilateral limit.

5.   The minimum amount of any of the limits shall be EUR 1 million. A bilateral or a multilateral limit with an amount of zero shall be treated as if no limit has been set. Limits between zero and EUR 1 million are not possible.

6.   Limits may be changed in real time with immediate effect or with effect from the next business day via the ICM. If a limit is changed to zero, it shall not be possible to change it again on the same business day. The setting of a new bilateral or multilateral limit shall only be effective from the next business day.

1.   Participants may reserve liquidity for highly urgent or urgent payment orders via the ICM.

2.   The AL group manager may only reserve liquidity for the AL group in its entirety. Liquidity shall not be reserved for single accounts within an AL group.

3.   By requesting to reserve a certain amount of liquidity for highly urgent payment orders, a participant instructs the [insert name of CB] only to settle urgent and normal payment orders if there is available liquidity after the amount reserved for highly urgent payment orders has been deducted.

4.   By requesting to reserve a certain amount of liquidity for urgent payment orders, a participant instructs the [insert name of CB] only to settle normal payment orders if there is available liquidity after the amount reserved for urgent and highly urgent payment orders has been deducted.

5.   After receipt of the reservation request the [insert name of CB] shall check whether the amount of liquidity on the participant's PM account is sufficient for the reservation. If this is not the case, only the liquidity available on the PM account shall be reserved. The rest of the requested liquidity reservation shall not be reserved automatically at any later point in time, even if the amount of liquidity available on the participant's PM account reaches the level of the initial reservation request.

6.   The level of the liquidity reservation may be changed. Participants may make a request via the ICM to reserve new amounts with immediate effect or with effect from the next business day.

1.   Instructing participants may predetermine the settlement time of the payment orders within a business day by using the Earliest Debit Time Indicator or the Latest Debit Time Indicator.

2.   When the Earliest Debit Time Indicator is used, the accepted payment order is stored and only entered into the entry disposition at the indicated time.

3.   When the Latest Debit Time Indicator is used, the accepted payment order shall be returned as non-settled if it cannot be settled by the indicated debit time. 15 minutes prior to the defined debit time, the instructing participant shall be sent an automatic notification via the ICM. Instructing participant may also use the Latest Debit Time Indicator solely as a warning indicator. In such cases, the payment order concerned shall not be returned.

4.   Instructing participants can change the Earliest Debit Time Indicator and the Latest Debit Time Indicator via the ICM.

5.   Further technical details are contained in Appendix I.

1.   Payment orders may be submitted up to five business days before the specified settlement date (warehoused payment orders).

2.   Warehoused payment orders shall be accepted and entered into the entry disposition on the date specified by the instructing participant at the start of daytime processing, as referred to in Appendix V. They shall be placed in front of payment orders of the same priority.

3.   Articles 15(3), 22(2) and 29(1)(a) shall apply mutatis mutandis to warehoused payment orders.

1.   Unless instructing participants have indicated the settlement time in the manner described in Article 18, accepted payment orders shall be settled immediately or at the latest by the end of the business day on which they were accepted, provided that sufficient funds are available on the payer's PM account and taking into account any liquidity limits and liquidity reservations as referred to in Articles 16 and 17.

2.   Funding may be provided by:

3.   For highly urgent payment orders the ‘first in, first out’ (FIFO) principle shall apply. This means that highly urgent payment orders shall be settled in chronological order. Urgent and normal payment orders shall not be settled for as long as highly urgent payment orders are queued.

4.   For urgent payment orders the FIFO principle shall also apply. Normal payment orders shall not be settled if urgent and highly urgent payment orders are queued.

5.   By derogation from paragraphs 3 and 4, payment orders with a lower priority (or of the same priority but accepted later) may be settled before payment orders with a higher priority (or of the same priority which were accepted earlier), if the payment orders with a lower priority would net out with payments to be received and result on balance in a liquidity increase for the payer.

6.   Normal payment orders shall be settled in accordance with the FIFO by-passing principle. This means that they may be settled immediately (independently of other queued normal payments accepted at an earlier time) and may therefore breach the FIFO principle, provided that sufficient funds are available.

7.   Further details on the settlement of payment orders in the entry disposition are contained in Appendix I.

1.   Payment orders that are not settled immediately in the entry disposition shall be placed in the queues in accordance with the priority to which they were designated by the relevant participant, as referred to in Article 15.

2.   To optimise the settlement of queued payment orders, the [insert name of CB] may use the optimisation procedures described in Appendix I.

3.   The payer may change the queue position of payment orders in a queue (i.e. reorder them) via the ICM. Payment orders may be moved either to the front or to the end of the respective queue with immediate effect at any time during daytime processing, as referred to in Appendix V.

4.   Liquidity transfer orders initiated in the ICM shall be immediately returned as non-settled if there is insufficient liquidity. Other payment orders shall be returned as non-settled if they cannot be settled by the cut-off times for the relevant message type, as specified in Appendix V.

1.   For the purposes of the first sentence of Article 3(1) of the Settlement Finality Directive and [insert national law provisions implementing this Article of the Settlement Finality Directive], payment orders are deemed entered into TARGET2-[insert CB/country reference] at the moment that the relevant participant's PM account is debited.

2.   Payment orders may be revoked until they are entered into TARGET2-[insert CB/country reference] in accordance with paragraph 1. Payment orders that are included in an algorithm, as referred to in Appendix I, may not be revoked during the period that the algorithm is running.

1.   The following may use the CAI mode:

3.   The CAI group manager shall be entitled to initiate liquidity transfers via the ICM between the PM accounts, including their sub-accounts, forming part of the same CAI group.

4.   A CAI group may also include PM accounts which are included in an AL group. In such a case, all the PM accounts of the AL group shall form part of the CAI group.

5.   Where two or more PM accounts form part of an AL group and, at the same time, of a CAI group (comprising additional PM accounts), the rules applicable to the AL group shall prevail as to the relationship within the AL group.

6.   A CAI group, which includes PM accounts of an AL group, may appoint a CAI group manager that is different from the AL group manager.

7.   The procedure for obtaining authorisation to use the AL mode, set out in Article 25(4) and (5), shall apply mutatis mutandis to the procedure for obtaining authorisation to use the CAI mode.

1.   The following may use the AL mode:

In each case referred in subparagraphs (a) to (c) it shall also be a requirement that the entities concerned have established intraday credit arrangements with the respective participating NCB.

2.   Under the AL mode, for the purpose of checking whether a payment order is sufficiently covered, available liquidity on all the AL group members' PM accounts is aggregated. Notwithstanding the above, the bilateral PM account relationship between the AL group member and its AL NCB shall continue to be governed by the arrangements of the relevant TARGET2 component system, subject to the modifications set out in the AL agreement. Intraday credit extended to any AL group member on its PM account may be covered by the available liquidity on the other PM accounts held by such AL group member or PM accounts held by any other AL group members with the same or any other AL NCB.

3.   In order to use the AL mode, one or more TARGET2 participants meeting the criteria in paragraph 1 shall enter into an AL agreement with the [insert name of CB] and, if applicable, other CB(s) of the TARGET2 component systems in which other AL group members participate. A TARGET2 participant may only enter into one AL agreement in relation to a particular PM account. The AL agreement shall be in conformity with the relevant template in Appendix VII.

4.   Each AL group shall designate an AL group manager. In the event that the AL group consists of only one participant, this participant shall act as the AL group manager. The AL group manager shall address to the managing NCB a written request to use the AL mode (containing static data collection forms as provided by [insert name of CB]), together with the executed AL agreement on the basis of the template provided by the managing NCB. The remaining AL group members shall address their written requests (containing static data collection forms as provided by [insert name of CB]) to their respective AL NCBs. The managing NCB may request any additional information or document that it deems appropriate in order to decide on the request. In addition, the managing NCB, in agreement with the other AL NCBs, may require the insertion of any additional provision in the AL agreement that it deems appropriate in order to ensure the proper and timely discharge of any existing and/or future obligation of all AL group members towards any AL NCB.

5.   The managing NCB shall verify whether the applicants fulfil the requirements to form an AL group and whether the AL agreement has been properly executed. To this end, the managing NCB may liaise with the other AL NCBs. The managing NCB's decision shall be addressed, in writing, to the AL group manager within one month of receipt of the request referred to in paragraph 4 by the managing NCB, or, if the managing NCB requests additional information, within one month of receipt of such information by the managing NCB. Any rejection decision shall contain reasons for the rejection.

6.   AL group members shall automatically have access to the CAI mode.

7.   The provision of information and all interactive control measures within an AL group shall be accessed via the ICM.

1.   The [insert name of CB]'s current and future claims arising from the legal relationship between an AL group member and the [insert name of CB] and which are secured by the [insert the applicable term: pledge/floating charge] under Article 36(1) and (2) of these Conditions shall include the [insert name of CB]'s claims against such AL group member arising under the AL agreement to which both are party.

2.   [Insert if required under the laws of the relevant jurisdiction: Without prejudice to the AL agreement, such pledge shall not prevent the participant from using the cash deposited in its PM account(s) during the business day.]

3.   [Insert if required under the laws of the relevant jurisdiction: Special allocation clause: The AL group member allocates the cash deposited in its PM account for the execution of all its obligations arising from the [insert reference to the arrangements implementing the Harmonised Conditions].]

1.   Participants shall implement adequate security controls to protect their systems from unauthorised access and use. Participants shall be exclusively responsible for the adequate protection of the confidentiality, integrity and availability of their systems.

2.   Participants shall inform the [insert name of CB] of any security-related incidents in their technical infrastructure and, where appropriate, security-related incidents that occur in the technical infrastructure of the third party providers. The [insert name of CB] may request further information about the incident and, if necessary, request that the participant take appropriate measures to prevent a recurrence of such an event.

3.   The [insert name of CB] may impose additional security requirements on all participants and/or on participants that are considered critical by the [insert name of CB].

1.   The ICM:

2.   Further technical details relating to the ICM are contained in Appendix I.

1.   In performing their obligations pursuant to these Conditions, the [insert name of CB] and the participants shall be bound by a general duty of reasonable care in relation to each other.

2.   The [insert name of CB] shall be liable to its participants in cases of fraud (including but not limited to wilful misconduct) or gross negligence, for any loss arising out of the operation of TARGET2-[insert CB/country reference]. In cases of ordinary negligence, the [insert name of CB]'s liability shall be limited to the participant's direct loss, i.e. the amount of the transaction in question and/or the loss of interest thereon, excluding any consequential loss.

3.   The [insert name of CB] is not liable for any loss that results from any malfunction or failure in the technical infrastructure (including but not limited to the [insert name of CB]'s computer infrastructure, programmes, data, applications or networks), if such malfunction or failure arises in spite of the [insert name of CB] having adopted those measures that are reasonably necessary to protect such infrastructure against malfunction or failure, and to resolve the consequences of such malfunction or failure (the latter including but not limited to initiating and completing the business continuity and contingency procedures referred to in Appendix IV).

4.   The [insert name of CB] shall not be liable:

5.   Notwithstanding the [insert national law provisions implementing Directive 97/5/EC of the European Parliament and of the Council of 27 January 1997 on cross-border credit transfers (9)], paragraphs 1 to 4 shall apply to the extent that the [insert name of CB]'s liability can be excluded.

6.   The [insert name of CB] and the participants shall take all reasonable and practicable steps to mitigate any damage or loss referred to in this Article.

7.   In performing some or all of its obligations under these Conditions, the [insert name of CB] may commission third parties in its own name, particularly telecommunications or other network providers or other entities, if this is necessary to meet the [insert name of CB]'s obligations or is standard market practice. The [insert name of CB]'s obligation shall be limited to the due selection and commissioning of any such third parties and the [insert name of CB]'s liability shall be limited accordingly. For the purposes of this paragraph, the SSP-providing CBs shall not be considered as third parties.

1.   Unless otherwise provided in these Conditions, all payment and payment processing-related messages in relation to TARGET2, such as confirmations of debits or credits, or statement messages, between the [insert name of CB] and participants shall be made through the network service provider.

2.   Electronic or written records of the messages retained by the [insert name of CB] or by the network service provider shall be accepted as a means of evidence of the payments processed through the [insert name of CB]. The saved or printed version of the original message of the network service provider shall be accepted as a means of evidence, regardless of the form of the original message.

3.   If a participant's connection to the network service provider fails, the participant shall use the alternative means of transmission of messages laid down in Appendix IV. In such cases, the saved or printed version of the message produced by the [insert name of CB] shall have the same evidential value as the original message, regardless of its form.

4.   The [insert name of CB] shall keep complete records of payment orders submitted and payments received by participants for a period of [insert period required by relevant national law] from the time at which such payment orders are submitted and payments are received.

5.   The [insert name of CB]'s own books and records (whether kept on paper, microfilm, microfiche, by electronic or magnetic recording, in any other mechanically reproducible form or otherwise) shall be accepted as a means of evidence of any obligations of the participants and of any facts and events that the parties rely on.

1.   Without prejudice to Article 34, participation in TARGET2-[insert CB/country reference] is for an indefinite period of time.

2.   A participant may terminate its participation in TARGET2-[insert CB/country reference] at any time giving 14 business days' notice thereof, unless it agrees a shorter notice period with the [insert name of CB].

3.   The [insert name of CB] may terminate a participant's participation in TARGET2-[insert CB/country reference] at any time giving three months' notice thereof, unless it agrees a different notice period with that participant.

4.   On termination of participation, the confidentiality duties laid down in Article 38 remain in force for a period of five years starting on the date of termination.

5.   On termination of participation, the PM accounts of the participant concerned shall be closed in accordance with Article 35.

1.   A participant's participation in TARGET2-[insert CB/country reference] shall be immediately terminated without prior notice or suspended if one of the following events of default occurs:

2.   The [insert name of CB] may terminate without prior notice or suspend the participant's participation in TARGET2-[insert CB/country reference] if:

3.   In exercising its discretion under paragraph 2, the [insert name of CB] shall take into account, inter alia, the seriousness of the event of default or events mentioned in subparagraphs (a) to (c).

5.   Upon termination of a participant's participation, TARGET2-[insert CB/country reference] shall not accept any new payment orders from such participant. Payment orders in the queue, warehoused payment orders or new payment orders in favour of such participant shall be returned.

6.   If a participant is suspended from TARGET2-[insert CB/country reference], all its incoming payments and outgoing payment orders shall be stored and only entered into the entry disposition after they have been explicitly accepted by the suspended participant's CB.

1.   Participants may close their PM accounts at any time provided they give the [insert name of CB] 14 business days' notice thereof.

2.   On termination of participation, pursuant to either Article 33 or 34, the [insert name of CB] shall close the PM accounts of the participant concerned, after having:

1.   [Insert if applicable: The [insert name of CB] shall have a pledge over the participant's existing and future credit balances on its PM accounts, thereby collateralising any current and future claims arising out of the legal relationship between the parties.]

1a.   [Insert if applicable: A participant's current and future claims towards the [insert name of the CB] arising from a credit balance on the PM account shall be transferred to the [insert name of the CB] as collateral (i.e. as a fiduciary transfer) for any current or future claim of the [insert name of the CB] towards the participant arising out of the [insert reference to the arrangement implementing these Conditions]. Such collateral shall be established by the mere fact that the funds have been credited to the participant's PM account.]

1b.   [Insert if applicable: The [insert name of CB] shall have a floating charge over the participant's existing and future credit balances on their PM accounts, thereby collateralising any current and future claims arising out of the legal relationship between the parties.]

2.   [Insert if applicable: The [insert name of CB] shall have the right referred to in paragraph 1 even if its claims are only contingent or not yet due.]

3.   [Insert if applicable: The participant, acting in its capacity as a PM account holder, hereby acknowledges the creation of a pledge in favour of [insert name of CB], with whom that account has been opened; this acknowledgement shall constitute the provision of pledged assets to the [insert name of CB] referred to under [insert relevant national adjective] law. Any amounts paid into the PM account whose balance is pledged shall, by the mere fact of being paid in, be irrevocably pledged, without any limitation whatsoever, as collateral security for the full performance of the secured obligations.]

4.   On the occurrence of:

notwithstanding the commencement of any insolvency proceedings in respect of a participant and notwithstanding any assignment, judicial or other attachment or other disposition of or in respect of the participant's rights, all obligations of the participant shall be automatically and immediately accelerated, without prior notice and without the need for any prior approval of any authority, so as to be immediately due. In addition, the mutual obligations of the participant and the [insert name of CB] shall automatically be set off against each other, and the party owing the higher amount shall pay to the other the difference.

5.   The [insert name of CB] shall promptly give the participant notice of any set-off pursuant to paragraph 4 after such set-off has taken place.

6.   The [insert name of CB] may without prior notice debit any participant's PM account by any amount which the participant owes the [insert name of CB] resulting from the legal relationship between the participant and the [insert name of CB].

1.   The [insert name of CB] shall have [insert reference to a collateralisation technique under the applicable legal system] over the balance on a participant's sub-account opened for the settlement of AS-related payment instructions under the arrangements between the relevant ancillary system and its CB. Such balance shall collateralise the participant's obligation referred to in paragraph 7 towards the [insert name of CB] in relation to such settlement.

2.   The [insert name of CB] shall freeze the balance on the sub-account of the participant upon communication by the ancillary system (via a ‘start-of-cycle’ message). Such freezing shall expire upon communication by the ancillary system (via an ‘end-of-cycle’ message).

3.   By confirming the freezing of the balance on the participant's sub-account, the [insert name of CB] guarantees to the ancillary system payment up to the amount of this particular balance. The guarantee shall be irrevocable, unconditional and payable on first demand. If the [insert name of CB] is not the ancillary system's CB, the [insert name of CB] shall be deemed instructed to issue the abovementioned guarantee to the ancillary system's CB.

4.   In the absence of any insolvency proceedings in relation to the participant, the AS-related payment instructions for the squaring of the participant's settlement obligation shall be settled without drawing on the guarantee and without recourse to the security right over the balance on the participant's sub-account.

5.   In the event of the participant's insolvency, the AS-related payment instruction for the squaring of the participant's settlement obligation shall be a first demand for payment under the guarantee; the debiting of the instructed amount from the participant's sub-account (and crediting of the AS's technical account) shall therefore equally involve the discharge of the guarantee obligation by the [insert name of the CB] and a realisation of its collateral right over the balance on the participant's sub-account.

6.   The guarantee shall expire upon communication by the ancillary system that the settlement has been completed (via an ‘end-of-cycle’ message).

7.   The participant shall be obliged to reimburse to the [insert name of CB] any payment made by the latter under such guarantee.

1.   The [insert name of CB] shall keep confidential all sensitive or secret information, including when such information relates to payment, technical or organisational information belonging to the participant or the participant's customers, unless the participant or its customer has given its written consent to disclose [insert the following phrase if applicable under national law: or such disclosure is permitted or required under [insert adjective relating to country name] law].

2.   By derogation from paragraph 1, the participant agrees that the [insert name of CB] may disclose payment, technical or organisational information regarding the participant or the participant's customers obtained in the course of the operation of TARGET2-[insert CB/country reference] to other CBs or third parties that are involved in the operation of TARGET2-[insert CB/country reference], to the extent that this is necessary for the efficient functioning of TARGET2, or to supervisory and oversight authorities of Member States and the Community, to the extent that this is necessary for the performance of their public tasks, and provided in all such cases that the disclosure is not in conflict with the applicable law. The [insert name of CB] shall not be liable for the financial and commercial consequences of such disclosure.

3.   By derogation from paragraph 1 and provided this does not make it possible, whether directly or indirectly, to identify the participant or the participant's customers, the [insert name of CB] may use, disclose or publish payment information regarding the participant or the participant's customers for statistical, historical, scientific or other purposes in the exercise of its public functions or of functions of other public entities to whom the information is disclosed.

4.   Information relating to the operation of TARGET2-[insert CB/country reference] to which participants have had access, may only be used for the purposes laid down in these Conditions. Participants shall keep such information confidential, unless the [insert name of CB] has explicitly given its written consent to disclose. Participants shall ensure that any third parties to whom they outsource, delegate or subcontract tasks which have or may have an impact on the performance of their obligations under these Conditions are bound by the confidentiality requirements in this Article.

5.   The [insert name of CB] shall be authorised, in order to settle payment orders, to process and transfer the necessary data to the network service provider.

1.   Participants shall be deemed to be aware of, and shall comply with, all obligations on them relating to legislation on data protection, prevention of money laundering and the financing of terrorism, in particular in terms of implementing appropriate measures concerning any payments debited or credited on their PM accounts. Participants shall also acquaint themselves with the network service provider's data retrieval policy prior to entering into the contractual relationship with the network service provider.

2.   Participants shall be deemed to have authorised the [insert name of CB] to obtain any information relating to them from any financial or supervisory authority or trade body, whether national or foreign, if such information is necessary for the participant's participation in TARGET2-[insert CB/country reference].

1.   Except where otherwise provided for in these Conditions, all notices required or permitted pursuant to these Conditions shall be sent by registered post, facsimile or otherwise in writing or by an authenticated message through the network service provider. Notices to the [insert name of CB] shall be submitted to the head of the [insert payment systems department or relevant CB unit] of [insert name of CB], [include relevant address of CB] or to the [insert SWIFT address of the CB]. Notices to the participant shall be sent to it at the address, fax number or its SWIFT address as the participant may from time to time notify to the [insert name of CB].

2.   To prove that a notice has been sent, it shall be sufficient to prove that the notice was delivered to the relevant address or that the envelope containing such notice was properly addressed and posted.

3.   All notices shall be given in [insert relevant national language and/or ‘English’].

4.   Participants shall be bound by all forms and documents of the [insert name of CB] that the participants have filled in and/or signed, including but not limited to static data collection forms, as referred to in Article 8(2)(a), and information provided under Article 11(5), which were submitted in compliance with paragraphs 1 and 2 and which the [insert name of CB] reasonably believes to have received from the participants, their employees or agents.

1.   For the purposes of these Conditions, the network service provider is SWIFT. Each participant shall enter into a separate agreement with SWIFT regarding the services to be provided by SWIFT in relation to the participant's use of TARGET2-[insert CB/country reference]. The legal relationship between a participant and SWIFT shall be exclusively governed by SWIFT's terms and conditions.

2.   Each participant shall also participate in a TARGET2 CUG, as specified by the SSP-providing CBs acting as the SWIFT service administrator for the SSP. Admission and exclusion of a participant to or from a TARGET2 CUG shall take effect once communicated to SWIFT by the SWIFT service administrator.

3.   Participants shall comply with the TARGET2 SWIFT Service Profile, as made available by the [insert name of CB].

4.   The services to be provided by SWIFT shall not form part of the services to be performed by the [insert name of CB] in respect of TARGET2.

5.   The [insert name of CB] shall not be liable for any acts, errors or omissions of SWIFT (including its directors, staff and subcontractors) as provider of SWIFT services, or for any acts, errors or omissions of network providers selected by participants to gain access to the SWIFT network.

1.   Any rights, interests, obligations, responsibilities and claims arising from or relating to these Conditions shall not be transferred, pledged or assigned by participants to any third party without the [insert name of CB]'s written consent.

2.   These Conditions do not create any rights in favour of or obligations in relation to any entity other than the [insert name of CB] and participants in TARGET2-[insert CB/country reference].

1.   The bilateral relationship between the [insert name of CB] and participants in TARGET2-[insert CB/country reference] shall be governed by [insert adjective relating to country name] law.

2.   Without prejudice to the competence of the Court of Justice of the European Communities, any dispute arising from a matter relating to the relationship referred to in paragraph 1 falls under the exclusive competence of the competent courts of [insert place of the seat of the CB].

3.   The place of performance concerning the legal relationship between the [insert reference to CB] and the participants shall be [insert place of the seat of the CB].

1.   These Conditions become effective from [insert relevant date].

2.   [Insert if appropriate under relevant national law: By participating in TARGET2-[insert CB/country reference], participants automatically agree to these Conditions between themselves and in relation to the [insert name of CB].]