Number 47/2001: ASSET COVERED SECURITIES ACT, 2001

47 2001

/images/harp.jpg

Number 47 of 2001

ASSET COVERED SECURITIES ACT, 2001

ARRANGEMENT OF SECTIONS

Preliminary Matters

Section
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

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.

PART 3

Designation of Credit Institutions

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.	Right to appeal against certain decisions of the Authority.

PART 4

Regulation of Designated Credit Institutions

Chapter 1

Issue of asset covered securities by designated mortgage credit institutions

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.
30.	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.
33.	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.
39.	Authority and cover-assets monitor to have access to register of mortgage covered securities business.
40.	Financial statements in respect of designated mortgage credit institution.
41.	Valuation of assets held by designated mortgage credit institutions.

Chapter 2

Issue of asset covered securities by designated public credit institutions

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.
45.	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.
48.	What can be included in a 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.
54.	Authority and cover-assets monitor to have access to register of public credit covered securities business.
55.	Financial statements in respect of designated public credit institution.
56.	Valuation of assets held by designated public credit institutions.

Chapter 3

Provisions applicable to asset covered securities generally

57.	Protection of disclosures made to an authorised recipient.
58.	Transfer of business or assets from one credit institution to another.

PART 5

Cover-Assets Monitors

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

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.
80.	Appointment of new manager to be appointed to fill vacancy.

PART 7

Effect of Potential Insolvency Process on Designated or Formerly Designated Credit Institution

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 credit institution is both designated mortgage credit institution and designated public credit institution.

PART 8

Regulations, Orders and Regulatory Notices

91.	Authority may make regulations for purposes of Act.
92.	Minister to consult Authority before making an 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.

PART 9

Enforcement

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.

PART 10

Miscellaneous

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.

SCHEDULE 1

Provisions Applicable to Managers

SCHEDULE 2

Consequential Amendments to Other Acts

Acts Referred to
	ACC Bank Acts, 1978 to 2001
	Bankruptcy Act, 1988	1988, No. 27
	Bankruptcy Acts, 1988 and 2001
	Bills of Sale (Ireland) Acts, 1879 and 1883
	Building Societies Act, 1989	1989, No. 17
	Building Societies Acts, 1989 to 1992
	Central Bank Act, 1971	1971, No. 24
	Central Bank Acts, 1942 to 2001
	Companies Act, 1963	1963, No. 33
	Companies Act, 1990	1990, No. 33
	Companies Acts, 1963 to 2001
	Companies (Amendment) Act, 1990	1990, No. 27
	Consumer Credit Act, 1995	1995, No. 24
	European Communities Act, 1972	1972, No. 27
	Investor Compensation Act, 1998	1998, No. 37
	National Treasury Management Agency Act, 1990	1990, No. 18
	National Treasury Management Agency Acts, 1990 and 2000
	National Treasury Management Agency (Amendment) Act, 2000	2000, No. 39
	Petty Sessions (Ireland) Act, 1851	12 & 13 Vict., c. 93
	Public Offices Fees Act, 1879	42 & 43 Vict., c. 58
	Registration of Deeds Act, 1707	6 Anne, c. 2
	Registration of Title Act, 1964	1964, No. 16
	Taxes Consolidation Act, 1997	1997, No. 39
	Trustee Savings Banks Act, 1989	1989, No. 21
	Trustee Savings Banks Acts, 1989 and 2001

/images/harp.jpg

Number 47 of 2001

ASSET COVERED SECURITIES ACT, 2001

AN ACT TO FACILITATE THE ESTABLISHMENT AND OPERATION OF A MARKET IN ASSET COVERED SECURITIES, TO PROVIDE FOR THE REGISTRATION OF DESIGNATED CREDIT INSTITUTIONS, TO AMEND THE BUILDING SOCIETIES ACT, 1989, AND CERTAIN OTHER ENACTMENTS, AND TO PROVIDE FOR RELATED MATTERS. [18th December, 2001]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: