Resolution and Recovery. This section only applies if you hold a business account with PayPal. You acknowledge and agree that any liability that we may have in connection with your PayPal Account and the PayPal products and services we may provide to you from time to time may be subject to write-down and conversion powers by a competent regulatory authority that supervises us, notwithstanding any term of any other agreement or arrangement between us. This is due to a requirement in a European Union Directive (2014/59/EU) (as transposed into relevant national law) which provides regulatory authorities with such powers to manage the resolution of relevant financial institutions like PayPal. These powers are intended to avoid or reduce the need for governments and taxpayers to bail out relevant failing financial institutions. By your use of your PayPal Account and any PayPal products and services, you acknowledge and agree to be bound by the effect of such write-down and conversion powers, which include (among others) (a) a reduction, in full or in part, of any amounts that may be due by PayPal to you; (b) a conversion of all, or part of, any such liability into shares in PayPal; (c) a cancellation of any such liability; and (d) a variation of any term of our relevant agreement(s) in connection with your PayPal Account and any PayPal products and services with a view to enable the effective exercise of these powers. For example, the money that PayPal owes you may be converted into PayPal shares instead of being paid to you in cash.
Appears in 2 contracts
Sources: User Agreement, User Agreement