STATUTORY INSTRUMENTS.

S.I. No. 214 of 2000.

NETTING OF FINANCIAL CONTRACTS ACT, 1995 (DESIGNATION OF FINANCIAL CONTRACTS) REGULATIONS, 2000

S.I. No. 214 of 2000

NETTING OF FINANCIAL CONTRACTS ACT, 1995 (DESIGNATION OF FINANCIAL CONTRACTS) REGULATIONS, 2000

I, CHARLIE McCREEVY, Minister for Finance, in exercise of the powers conferred on me by section 3(1) of the Netting of Financial Contracts Act, 1995 (No. 25 of 1995) , and in consultation with the Central Bank of Ireland, hereby make the following regulations.

1. These Regulations may be cited as the Netting of Financial Contracts Act, 1995 (Designation of Financial Contracts) Regulations, 2000.

2. In these Regulations--

“Act of 1995” means the Netting of Financial Contracts Act, 1995 ;

“entity” includes--

(a) a natural or legal person, including a state or any international organisation duly established,

(b) any sub-division or authenticating or other authority of a state or international organisation, and

(c) an unincorporated body of persons.

3. By virtue of these Regulations, the following are designated as financial contracts for the purposes of the Act of 1995:

(a) buy and sell back agreements in relation to either or both securities and equities,

(b) in relation to equities--

(i) equities lending and equities borrowing contracts, and

 (ii) sale and repurchase agreements, including reverse repurchase agreements,

(c) contracts for either or both the assumption of and the laying off of credit risk--

(i) on loans, debt securities or other assets,

(ii) in relation to an entity,

or other contracts of a similar nature.

(d) contracts which are a combination of contracts specified at either or both--

(i) paragraph (a), (b), (c) or (d) of the definition of “financial contracts” in section 1 of the Act of 1995, and

(ii) paragraph (a), (b) or (c) of this Regulation.

EXPLANATORY NOTE.

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

These Regulations designate certain types of contracts as financial contracts for the purposes of the enforceability of netting, between two parties only, in relation to financial contracts in accordance with the terms of a netting agreement; for the enforceability of set-off by those parties of the amounts due under such netting agreements in accordance with the terms of a master netting agreement; for the set off of money or the proceeds of collateral and for the enforceability of guarantees provided solely in relation to any netting agreement or any master netting agreement in accordance with the terms of each; and other related matters provided for under the Netting of Financial Contracts Act, 1995 .