S.I. NO. 635 OF 2002

ASSET COVERED SECURITIES ACT, 2001(SECTION 62 (1), 62 (2), 62(3)) [Overcollateralisation] REGULATIONS, 2002

S.I. NO.         OF 2002

ASSET COVERED SECURITIES ACT, 2001 (SECTION 62 (1), 62 (2), 62(3))

[Overcollateralisation]

REGULATION, 2002

The Central Bank of Ireland, in exercise of the powers conferred on it by Sections 62(1), 62 (2) and 62(3) of the Asset Covered Securities Act, 2001 (no 47 of 2001) hereby makes the following Regulation:

1.         This Regulation may be called the Asset Covered Securities Act, 2001 (Sections 62(1), 62(2) and 62(3)) (Overcollateralisation) Regulation 2002.

2.         In this Regulation the “Act” means the Asset Covered Securities Act, 2001 (no 47 of 2001) . A word or expression that is used in this Regulation and is also used in the Act has, unless the contrary intention appears, the same meaning in this Regulation as in the Act.

3.         In this Regulation, “overcoliateralisation” means:-

a)     in relation to principal coverage, that the prudent market value of the cover asset pool is greater than the total of the principal amounts of the public credit covered securities in issue which are secured on that pool;

b)     in relation to interest coverage, that the total amount of interest payable in a given period of twelve months in respect of the cover assets pool is during that twelve month period greater than the total amount of interest payable in respect of that period on the public credit covered securities in issue which are secured on that pool.

4.         This Regulation prescribes that a cover-assets monitor appointed in respect of any designated public credit institution when performing its responsibilities under the Act must have regard to any contractual undertakings given by the designated public credit institution to maintain a level of overcollateralisation of cover assets as against public covered securities issued by that institution and the cover-assets monitor is responsible for monitoring the designated public credit institution's compliance with those undertakings.

EXPLANATORY NOTE

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

This Regulation

Prescribes that the cover-assets monitor must be aware of contractual undertakings in respect of overcollateralisation given by the designated public credit institution to which it is appointed and is responsible for monitoring the designated public credit institutions compliance with such undertakings.

Notice of the making of this Statutory Instrument was published in “Iris Oifiguil” of 10 January 2003.