Table of Contents
Asset Covered Securities Act, 2001 (No. 47)Introductory TextActs Referred toPart 1 Preliminary Matters (ss. 1-8)1. Short title and commencement.2. Purposes of Act.3. Interpretation.4. Definition of mortgage credit.5. Definition of public credit.6. Definition of substitution asset.7. When designated credit institution becomes insolvent.8. When designated credit institution becomes potentially insolvent.Part 2 Functions and Powers of Authority (ss. 9-11B)9. Functions of Authority under this Act.10. General powers of Authority under this Act.11. Power of Minister to impose additional functions on Authority.11A. Cooperation obligations11B. Disclosure obligationsPart 3 Designation of Credit Institutions (ss. 12-26)12. Offence to carry on asset covered securities business without designation by Authority.13. Application for registration as a designated credit institution.14. Grant and rejection of applications for registration.15. Effect and term of registration.16. Authority may vary conditions of registration.17. Registers of designated credit institutions to be kept.18. Revocation of registration by Authority on application of credit institution.19. Revocation of registration by Authority otherwise than on application of credit institution.20. Authority may direct designated credit institution to suspend its business.21. Effect of revocation of registration where credit institution is not a company or building society or is a company or building society other than one that is being wound up.22. Provisions applying to directions given under sections 20 and 21.23. Effect of revocation of registration where credit institution is a company or building society that is being wound up.24. Authority may substitute other duties for duties of liquidator of credit institution.25. Provisions of certain other Acts not affected.26. Certain decisions of Authority to be appealable to the Irish Financial Services Appeals Tribunal.Part 3A Covered bond programmes (ss. 26A-26E)26A. Application for permission for covered bond programme26B. Permission for covered bond programme26C. Operation of Covered Bond Programme26D. Review of covered bond programme26E. Publication obligation - covered bond programmesPart 4 Regulation of Designated Credit Institutions (ss. 27-58D)Chapter 1 Issue of asset covered securities by designated mortgage credit institutions (ss. 27-41A)27. Interpretation (Chapter 1).28. Designated mortgage credit institution to carry on permitted business activities only.29. Power of designated mortgage credit institution to issue mortgage covered securities.29A. Extendable maturity structures - designated mortgage credit institution30. Designated mortgage credit institution may enter into certain kinds of contracts.31. Restrictions on business activities of designated mortgage credit institution.32. Designated mortgage credit institution to establish and maintain cover assets pool.32A. Cover asset pool liquidity buffer - designated mortgage credit institution33. What can be included in a cover assets pool maintained by a designated mortgage credit institution.34. What action is to be taken by a designated mortgage credit institution that is in breach of cover assets pool provisions.35. Substitution of certain cover assets and restrictions on inclusion of substitution assets in cover assets pool of designated mortgage credit institution.36. Use of realised proceeds of cover asset by designated mortgage credit institution.37. Inclusion of asset in, and removal of asset from, cover assets pool.38. Designated mortgage credit institution to keep register of mortgage covered securities business.38A. Reporting requirements - designated mortgage credit institution39. Authority and cover-assets monitor to have access to register of mortgage covered securities business.39A. Lifting of certain restrictions on cover assets pool of a designated mortgage credit institution.40. Financial statements in respect of designated mortgage credit institution.40A. Investor information - designated mortgage credit institution41. Valuation of assets held by designated mortgage credit institutions.41A. Modifications to this Chapter in its application to securitised mortgage credit assets.Chapter 1A Issue of asset covered securities by designated commercial mortgage credit institutions (s. 41B)41B. Modifications to Chapter 1 and sections 4(2) to (5), 58, 61, 71 and 91 to enable them to apply to designated commercial mortgage credit institutions.Chapter 2 Issue of asset covered securities by designated public credit institutions (ss. 42-56)42. Interpretation (Chapter 2).43. Designated public credit institution to carry on permitted business activities only.44. Power of designated public credit institution to issue public credit covered securities.44A. Extendable maturity structures - designated public credit institution45. Designated public credit institution may enter into certain kinds of contracts.46. Restrictions on business activities of designated public credit institution.47. Designated public credit institution to establish and maintain cover assets pool.47A. Cover asset pool liquidity buffer - designated public credit institution48. What can be included in the cover assets pool maintained by a designated public credit institution.49. What action is to be taken by a designated public credit institution that is in breach of cover assets pool provisions.50. Substitution of certain cover assets and restrictions on inclusion of substitution assets in cover assets pool of designated public credit institution.51. Use of realised proceeds of cover asset by designated public credit institution.52. Inclusion of asset in, and removal of asset from, cover assets pool.53. Designated public credit institution to keep register of public credit covered securities business.53A. Reporting requirements - designated public credit institution54. Authority and cover-assets monitor to have access to register of public credit covered securities business.54A. Lifting of certain restrictions on cover assets pool of a designated public credit institution.55. Financial statements in respect of designated public credit institution.55A. Investor information - designated public credit institution56. Valuation of assets held by designated public credit institutions.Chapter 3 Provisions applicable to asset covered securities generally (ss. 57-58D)57. Protection of disclosures made to an authorised recipient.58. Transfer of business or assets from one credit institution to another.58A. Valuation of assets.58B. Automatic acceleration.58C. Documentation, systems and processes.58D. Labelling.Part 5 Cover-Assets Monitors (ss. 59-70)59. Cover-assets monitor to be appointed for each designated credit institution.60. Authority may appoint cover-assets monitor in certain circumstances.61. Responsibilities of cover-assets monitor appointed in respect of designated mortgage credit institution.62. Responsibilities of cover-assets monitor appointed in respect of designated public credit institution.63. Termination of appointment of cover-assets monitor by designated credit institution.64. Resignation of cover-assets monitor.65. Cover-assets monitor's powers in relation to designated credit institution.66. Designated credit institution to provide information and documents required by cover-assets monitor.67. Duty of cover-assets monitor to report certain matters to Authority.68. Authority may confer additional responsibilities on cover-assets monitor.69. Cover-assets monitor to provide reports to Authority on request.70. Power of entry, etc., of Authority or authorised person.Part 6 Management of Business Activities of Designated or Formerly Designated Credit Institutions in Certain Circumstances (ss. 71-80)71. Interpretation (Part 6).72. Authority may appoint manager in respect of designated credit institution or formerly designated credit institution in certain circumstances.73. What happens if NTMA's attempts to locate a manager are unsuccessful.74. What happens if NTMA's attempts to locate a parent entity are unsuccessful.75. NTMA may be appointed as temporary manager in certain circumstances.76. Fees payable to NTMA.77. Application of Schedule 1 to managers.78. Effect of appointment of person as manager.79. Responsibilities of manager.79A. Co-operation between Authority and manager80. Appointment of new manager to be appointed to fill vacancy.Part 7 Effect of Potential Insolvency Process on Designated or Formerly Designated Credit Institution (ss. 81-90A)81. Application and operation of this Part.82. Existing rights of certain persons not affected by insolvency or potential insolvency of designated credit institution.83. Rights of preferred creditors in relation to cover assets.84. Obligations of designated credit institution to continue despite insolvency process.85. Effect of insolvency process on asset covered securities and cover assets hedge contracts of designated credit institutions.86. Designated or formerly designated credit institution not to be dissolved unless claims of preferred creditors have been satisfied.87. This Part not to prevent application of enactment or rule of law relating to fraud, misrepresentation, etc.88. Designated credit institution not to create security interest in cover assets if claims of preferred creditors would be adversely affected.89. Certain directions not to apply unless rights of certain persons have been satisfied.90. Provisions applicable where a credit institution is more than one kind of designated credit institution.90A. ResolutionPart 8 Regulations, Orders and Regulatory Notices (ss. 91-95A)91. Authority may make regulations for purposes of Act.91A. Guidelines92. Minister to consult Authority before making in order for purposes of this Act.93. Regulations and orders to be laid before each House of Oireachtas.94. House of Oireachtas may annul regulation or order.95. Regulatory notices.95A. Principles and policies applicable to making of orders, etc. under this Act.Part 9 Enforcement (ss. 96-99B)96. Court empowered to make prohibition or compliance orders.97. Time within which proceedings for an offence may be brought.98. Offences relating to acts affecting the performance of official functions.99. Offences by bodies corporate.99A. Administrative sanctions.99B. Publication.Part 10 Miscellaneous (ss. 100-108)100. Certain persons to be not liable for commission of certain acts and omissions under this Act.101. Designation of credit institution not to be a warranty of solvency, etc.102. Reciprocal arrangements with other countries.103. Giving of notices.104. Certain documents exempt from stamp duty.105. Expenses incurred in administering this Act.106. Consequential amendments to other Acts.107. Further amendments to this Act.108. Transitional provisions for asset covered securities issued before 8 July 2022.Schedule 1 Provisions Applicable to ManagersSchedule 2 Consequential Amendments to other ActsSchedule 3 Further amendments to this Act
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84. Obligations of designated credit institution to continue despite insolvency process.
(1) The obligations of a designated or formerly designated credit institution -
(a) arising under or in respect of an asset covered security issued by the institution,
(b) arising under or in respect of any cover assets hedge contract entered into by the institution,
(c) towards the cover-assets monitor appointed in respect of the institution,
(d) towards any manager appointed to manage affairs of the institution, or
(e) towards the NTMA under Part 6,
continue to have effect in relation to the institution, and be enforceable, despite the institution, or its parent entity or a company related to the institution, becoming subject to an insolvency process.