The principle that the application of the compensation provisions should be subject to non-formal legal acts and reporting obligations does not limit the enforcement state`s power to provide for administrative, regulatory or criminal sanctions for non-compliance with formal requirements and reporting obligations. In addition, only the operation of the closure network mechanism must be subject to requirements not subject to form. To the extent that the parties have a guarantee agreement in the same (captain`s) contract, formal requirements of the right to trade guarantee may apply, which may lead to the ineffectiveness of so-called security interests. 45. The personal scope of the principles extends to both parties with legal personality and to other entities, including trusts or partnerships, associations without legal personality or other entities of persons, the latter being expressly mentioned in paragraph 1. All legal entities are covered by the definition in paragraph 1 and, therefore, reflecting the general systematic notion of Principles 3 and 4, “qualifying financial market players” and “public authorities” within the meaning of paragraphs 2 and 3, still fall within paragraph 1 as subgroups of “eligible parties”. 56. In defining the obligations that can be included in a final provision, Principle 4 addresses the material scope of the principles. It should be noted that paragraph 1, point (a), as a central element of the definition of “eligible obligation,” contains a reference to the definitions of Principle 3. Therefore, in order to be eligible, the obligations must not only belong to one of the types of obligations covered by paragraphs (a), (i) to iv), but also be legitimate parties within the meaning of Principle 3 and the debtor of the undertaking.

In addition, one of them must be a qualified public authority or financial market player. In accordance with paragraphs (b) and (c), there are restrictions equivalent to the personal scope on the basis of references to the guaranteed commitment (paragraph (paragraph b) or obligations covered by master contracts (paragraph (paragraph (c), see below, margins. 80 and after.