PART 6

Management of Business Activities of Designated or Formerly Designated Credit Institutions in Certain Circumstances

71. —For the purposes of this Part, “asset covered securities business activities”, in relation to a designated or formerly designated credit institution, means the following activities—

(a) issuing asset covered securities and otherwise financing or refinancing the activities referred to in paragraphs (b) to (d),

(b) entering into cover assets hedge contracts,

(c) dealing with mortgage credit assets, public credit assets, or appropriate substitution assets,

(d) holding cover assets and maintaining the related cover assets pool,

(e) the keeping of a register of mortgage covered securities business or public credit covered securities business,

(f) administering and servicing those activities.

72. —(1) The Authority may request the NTMA to attempt to locate persons who are suitably qualified for appointment to manage asset covered securities business activities, or specified asset covered securities business activities, of a designated credit institution or a formerly designated credit institution in any of the following circumstances:

(a) if the institution has become insolvent or potentially insolvent;

(b) if as a result of becoming aware of information provided to the Authority, it is of the opinion that a manager should be appointed in respect of the institution in order to safeguard the interests of—

(i) holders of asset covered securities issued by the institution, or

(ii) persons who have rights under cover assets hedge contracts entered into by the institution, or

(iii) other creditors of the institution;

(c) if the registration of the institution as a designated credit institution is revoked under section 19 or the institution is subject to a direction given under section 20 or 21.

(2) If the NTMA is successful in locating one or more suitably qualified persons for appointment to manage specified asset covered securities business activities of the credit institution, it shall give to the Authority the names and qualifications of, and other relevant particulars relating to, the person or persons concerned.

(3) If the NTMA has given to the Authority the name of only one person under subsection (2) and the Authority is satisfied that the person is suitably qualified to manage asset covered securities business activities of the credit institution concerned, the Authority shall appoint that person as manager of the asset covered securities business activities of that institution, or of such of those activities as are specified in the notice.

(4) If the NTMA has given to the Authority the names of 2 or more persons under subsection (2) and is satisfied that those persons, or any of those persons, are suitably qualified to manage asset covered securities business activities of the credit institution concerned, the Authority shall appoint the person who appears to the Authority to be the most suitably qualified of those persons.

(5) On appointing a manager in respect of a designated or formerly designated credit institution, the Authority shall publish in at least one daily newspaper circulating in the State a notice giving particulars of the appointment. Failure to comply with this subsection does not affect the validity of such an appointment.

73. —If the NTMA's attempt under section 72 is unsuccessful, or the Authority is not satisfied that any of the persons whose names were given to the Authority under that section is suitable for appointment as manager, the NTMA shall attempt to find an appropriate body corporate to become the parent entity of the designated or formerly designated credit institution concerned in place of the existing parent entity (if any) of that institution.

74. —If the NTMA's attempts under sections 72 and 73 are unsuccessful, the Authority shall, by notice published in Iris Oifigiúil, appoint the NTMA as a manager to manage the asset covered securities business activities of the designated or formerly designated credit institution concerned, or such of those activities as are specified in the notice.

75. —When section 72 (1) or 73 applies, the Authority may, by notice published in Iris Oifigiúil, appoint the NTMA as a temporary manager of the asset covered securities business of a designated or formerly designated credit institution, or of such of these activities as are specified in the notice, until either—

(a) a manager is appointed in respect of the institution, or

(b) an appropriate body corporate becomes the parent entity of the institution.

76. —(1) Each designated credit institution is required to pay to the NTMA with respect to the functions imposed on the NTMA by this Part such annual commitment fee as is, and at such times or within such periods as are, determined by the NTMA. The amount of the fee is subject to the approval of the Authority.

(2) A commitment fee is payable under subsection (1) irrespective of whether the NTMA has performed, or the Authority has requested the NTMA to perform, any of the functions imposed on the NTMA by this Part.

(3) If a designated credit institution fails to pay a commitment fee on time, the NTMA may, by proceedings brought in a court of competent jurisdiction, recover the fee from the institution as a debt.

(4) The NTMA shall use—

(a) any money that it receives under subsection (1) or recovers under subsection (3), and

(b) any money that it receives as a result of having been appointed as a manager under this Act,

for the purposes of enabling it to perform its functions under this Part. If any of the money so received is not required for those purposes, the NTMA is required to use the surplus towards meeting the expenses incurred in performing its functions under the National Treasury Management Agency Acts, 1990 and 2000. Failing that, the NTMA is required to pay the surplus money into the Exchequer.

(5) The Public Offices Fees Act, 1879, does not apply to fees payable to the NTMA under this section or Schedule 1.

77. —Schedule 1 has effect with respect to a manager appointed in respect of a designated or formerly designated credit institution.

78. —On the appointment of a manager in respect of a designated or formerly designated credit institution, the manager becomes responsible—

(a) for managing the asset covered securities business of the institution, or such of those activities as are specified in the manager's notice of appointment, and

(b) for performing the functions and obligations, and exercising the powers, of the institution in so far as they relate to those activities.

79. —A manager appointed in respect of a designated or formerly designated credit institution—

(a) shall, as soon as practicable after being appointed, assume control of all assets of the institution that relate to the institution's asset covered securities business activities, or such of those assets as relate to the asset covered securities business activities specified in the manager's notice of appointment, and

(b) shall, subject to and in accordance with any direction given by the Authority, carry on the institution's asset covered securities business activities, or such part of that business as relates to the asset covered securities business activities specified in the manager's notice of appointment, in such manner as appears to the manager to be in the commercial interest of the holders of asset covered securities issued by the institution and of persons with whom the institution has entered into cover assets hedge contracts.

80. —If the appointment of a person as manager ceases before the management is completed or terminated, the Authority shall, in accordance with section 72 , request the NTMA to locate suitably qualified persons to replace the person.