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47 2001

ASSET COVERED SECURITIES ACT, 2001

PART 5

Cover-Assets Monitors

Cover-assets monitor to be appointed for each designated credit institution.

59. —(1) Every designated credit institution is required to appoint a qualified person to be a cover-assets monitor in respect of the institution.

(2) A designated credit institution that is both a designated mortgage credit institution and a designated public credit institution may appoint a separate cover-assets monitor in respect of each cover assets pool maintained by it or may appoint a single cover-assets monitor in respect of both of the pools so maintained.

(3) An appointment under this section does not take effect until the Authority has approved it in writing.

(4) If the Authority refuses to approve such an appointment, the designated credit institution concerned shall, within such period as may be specified by the Authority (being not less than 7 days), appoint another qualified person to be a cover-assets monitor in respect of that institution.

(5) A designated credit institution that has appointed a cover-assets monitor under this section is responsible for paying any remuneration or other money payable to the monitor in connection with the performance of the monitor's responsibilities in respect of the institution, including any additional responsibilities conferred on the monitor under section 68 .

(6) The Authority may, by regulatory notice notified in Iris Oifigiúil, specify—

(a) the qualifications required in order for a person to be appointed as a cover-assets monitor, and

(b) the application procedure for appointment as such a monitor.

Authority may appoint cover-assets monitor in certain circumstances.

60. —(1) If at any time a designated credit institution has no cover-assets monitor appointed in respect of a cover assets pool and the Authority reasonably believes that the institution is unlikely to appoint such a monitor, the Authority may appoint a suitably qualified person to be a cover-assets monitor in respect of the institution. The appointment may be on such terms and subject to such conditions as the Authority thinks fit.

(2) If the Authority has appointed a cover-assets monitor in accordance with this section, the designated credit institution concerned is responsible for paying any remuneration or other money payable to the monitor in connection with the performance of the monitor's responsibilities in respect of the institution, including any additional responsibilities conferred on the monitor under section 68 .

Responsibilities of cover-assets monitor appointed in respect of designated mortgage credit institution.

61. —(1) The cover-assets monitor appointed in respect of a designated mortgage credit institution is responsible for monitoring the institution's compliance with sections 32(8), 33 (subsection (6) excepted), 35(2) and (8), 36(1) and (4) and 38(4) and (5) and such other matters (if any) relating to the business of such an institution as may be prescribed by the regulations for the purposes of this subsection.

(2) Before a designated mortgage credit institution issues mortgage covered securities, or enters into a cover assets hedge contract, the relevant cover-assets monitor shall take reasonable steps to verify—

(a) that the institution will be in compliance with section 32 (8), and will not be in contravention of section 33 (subsection (6) excepted) and section 35 (8), as a result of the institution having issued those securities or entered into such a contract,

(b) that the institution will comply with the requirements of sections 38(4) and (5) with respect to keeping its register of mortgage covered securities business, or

(c) such other matters (if any) relating to the business of designated mortgage credit institutions as may be prescribed by the regulations for the purposes of this subsection.

(3) The cover-assets monitor is also responsible for performing such other responsibilities (if any) as are prescribed by the regulations.

(4) The appointment of a person as a cover-assets monitor in respect of a designated mortgage credit institution does not absolve the institution from its duty to comply with this Act.

Responsibilities of cover-assets monitor appointed in respect of designated public credit institution.

62. —(1) The cover-assets monitor appointed in respect of a designated public credit institution is responsible for monitoring the institution's compliance with sections 47(8), 50(2) and (8), 51(1) and (4) and 53(4) and (5) and such other matters (if any) relating to the business of such an institution as may be prescribed by the regulations for the purposes of this subsection.

(2) Before a designated public credit institution issues public credit covered securities, or enters into a cover assets hedge contract, the relevant cover-assets monitor shall take reasonable steps to verify—

(a) that the institution will be in compliance with section 47 (8), and will not be in contravention of section 48 or 50(8) as a result of the institution having issued those securities or entered into such a contract,

(b) that the institution will comply with requirements of sections 53(4) and (5) with respect to keeping its register of public credit covered securities business, and

(c) such other matters (if any) relating to the business of designated public credit institutions as may be prescribed by the regulations for the purposes of this subsection.

(3) The cover-assets monitor is also responsible for performing such other responsibilities (if any) as are prescribed by the regulations.

(4) The appointment of a person as a cover-assets monitor in respect of a designated public credit institution does not absolve the institution from its obligation to comply with this Act.

Termination of appointment of cover-assets monitor by designated credit institution.

63. —(1) A designated credit institution may terminate the appointment of its cover-assets monitor only with the written consent of the Authority.

(2) The Authority may, by notice in writing given to the institution and cover-assets monitor concerned, direct a designated credit institution to terminate the appointment of the cover-assets monitor appointed in respect of the institution and to appoint another qualified person in place of that monitor. The notice must specify the reasons for giving the direction. Subject to subsection (4), the institution is required to comply with such a direction.

(3) If the Authority issues a notice under subsection (2), the designated credit institution or cover-assets monitor concerned may, within 7 days of receiving the notice, appeal to the High Court against the giving of the direction.

(4) On the hearing of an appeal under subsection (3), the High Court may—

(a) make an order confirming the decision of the Authority, or

(b) make an order quashing the direction of the Authority or, if the direction has been implemented, order that the cover-assets monitor concerned be reinstated on the same terms and conditions as those applicable immediately before the implementation of the direction.

The High Court may make such ancillary orders as it thinks appropriate.

Resignation of cover-assets monitor.

64. —(1) A cover-assets monitor may resign by notice in writing given to the Authority.

(2) The cover-assets monitor is required to include in the notice a statement of the reasons for the resignation.

(3) A notice of resignation of a cover-assets monitor takes effect at the end of 30 days, or of such longer period as is specified in the notice, after it is given to the Authority or, if the Authority agrees to the resignation taking effect at the end of a shorter period, at the end of that shorter period.

Cover-assets monitor's powers in relation to designated credit institution.

65. —(1) The cover-assets monitor appointed in respect of a designated credit institution may, at any reasonable time during ordinary business hours, enter any place at which the institution carries on its business for the purpose of carrying out the monitor's responsibilities in relation to the institution.

(2) The cover-assets monitor is required to give the institution reasonable notice of intention to enter a place at which the institution carries on its business.

(3) A cover-assets monitor who enters a place under this section may do any of the following—

(a) inspect the place and examine any record found on the place that the monitor reasonably believes to be relevant to the performance of the monitor's responsibilities in respect of the institution,

(b) require the institution or any person who is apparently a person concerned in the management of the institution to answer any relevant questions or provide the monitor with such assistance and facilities as is or are reasonably necessary to enable the monitor to exercise or perform the monitor's responsibilities,

(c) require any person in the place to produce for inspection records in so far as they relate to the responsibilities of the monitor,

(d) make copies of all or any part of those records.

Designated credit institution to provide information and documents required by cover-assets monitor.

66. —(1) The cover-assets monitor appointed in respect of a designated credit institution may, by notice in writing given to the institution, require it to give to the monitor, within such period as may be specified in the notice, any specified information or record that relates to the responsibilities of the monitor in respect of the institution, but only if the information or record is in the possession, or under the control, of the institution.

(2) A designated credit institution is required to keep the cover-assets monitor informed of—

(a) such particulars of payments received by the institution in respect of cover assets included in the relevant cover assets pool, and at such times or intervals, as the monitor requires,

(b) any failure of any person who has a financial obligation in respect of those assets to perform the obligation within the prescribed period after it was due to be performed, and

(c) any proceedings brought in relation to those assets against any such person by or on behalf of the institution.

(3) For the purposes of subsection (2)(b), “prescribed period” means—

(a) in the case of a mortgage credit asset of a kind referred to in section 4 (1)—60 days,

(b) in the case of any other kind of mortgage credit asset, or of a public credit asset or substitution asset—10 days, or

(c) if in any of those cases some other period is specified by a regulatory notice made under subsection (4)—that other period.

(4) The Authority may, by regulatory notice published in Iris Oifigiúil, specify a period for the purpose of subsection (3).

(5) A designated credit institution that, without reasonable excuse—

(a) fails to comply with a notice in writing referred to in subsection (1), or

(b) fails to comply with subsection (2),

commits an offence and is liable on summary conviction to a fine not exceeding €1,000 (£787.56).

Duty of cover-assets monitor to report certain matters to Authority.

67. —(1) As soon as practicable after the cover-assets monitor appointed in respect of a designated credit institution has become aware, or has formed a reasonable suspicion, that the institution has contravened or failed to comply with a provision of this Act that relates to the responsibilities of the monitor, the monitor is required to provide the Authority with a written report of the matter.

(2) The cover-assets monitor appointed in respect of a designated credit institution is also required to provide the Authority with such reports, and provide such information, as the Authority notifies to the monitor in writing from time to time with respect to—

(a) whether or not the institution is, in the opinion of the monitor, complying with the provisions of this Act that relate to the responsibilities of the monitor, and

(b) if in the monitor's opinion the institution is not fully complying with any of those provisions, the extent of the non-compliance.

The reports and information are to be given to the Authority at such times or at such intervals as the Authority notifies in writing to the monitor.

Authority may confer additional responsibilities on cover-assets monitor.

68. —(1) This section applies to the following credit institutions—

(a) a designated credit institution that has become subject to an insolvency process;

(b) a formerly designated credit institution;

(c) a designated credit institution in respect of which a direction under section 20 is in force;

(d) a designated credit institution in respect of which a manager has been appointed under Part 6 or Schedule 1.

(2) The Authority may, by notice in writing given to the cover-assets monitor appointed in respect of a credit institution to which this section applies, confer on that monitor such additional responsibilities as it considers appropriate for the effective management of the affairs of the institution.

(3) If a liquidator, examiner, receiver or manager is appointed in respect of a credit institution to which this section applies, the cover-assets monitor appointed in respect of the institution may enter into arrangements with respect to the management of the institution on such matters as may be specified in the notice referred to in subsection (2). Those arrangements—

(a) must include arrangements relating to the payment of the remuneration of, and the costs incurred by, the monitor, and

(b) are to be subject to such conditions (if any) as are specified in that notice or as the Authority may subsequently notify to the monitor in writing.

Cover-assets monitor to provide reports to Authority on request.

69. —If the Authority so directs by notice in writing, the cover-assets monitor appointed in respect of a designated credit institution shall—

(a) prepare for the Authority, or any other person specified by the Authority, such reports, and

(b) provide the Authority or any such person, with such information,

at such times or intervals, in relation to the exercise or performance of the monitor's responsibilities under this Act and the performance by the institution of its obligations under this Act in so far as the monitor is responsible for monitoring the carrying out of those obligations, as the Authority specifies in the direction.

Power of entry, etc., of Authority or authorised person.

70. —The Authority, or any other person that it has authorised for the purposes of this section, may, at any reasonable time—

(a) enter any premises at which the cover-assets monitor appointed in respect of a designated credit institution carries on its business, and

(b) inspect and take copies of any records kept by the monitor in connection with the monitor's responsibilities under this Act.