SECURITISATION (PROCEEDS OF CERTAIN MORTGAGES) ACT, 1995

AN ACT TO PROVIDE FOR THE SECURITISATION OF CERTAIN MONEYS DUE TO HOUSING AUTHORITIES AND FOR OTHER MATTERS RELATING TO SUCH SECURITISATION, TO PROVIDE FOR THE DELEGATION OF CERTAIN FUNCTIONS UNDER THIS ACT TO THE NATIONAL TREASURY MANAGEMENT AGENCY, TO PROVIDE FOR THE AMENDMENT OF SECTION 138 OF THE FINANCE ACT, 1993, AND OTHERWISE TO PROVIDE FOR CONNECTED MATTERS. [30th November, 1995]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

1 Interpretation.

1.—(1) In this Act—

“designated body” means a body designated under section 4 (1);

“housing authority” means a housing authority for the purposes of section 23 of the Housing (Miscellaneous Provisions) Act, 1992;

“the Minister” means the Minister for Finance.

• (2) In this Act—

• (a) a reference to a section is a reference to a section of this Act, unless it is indicated that a reference to some other enactment is intended,

• (b) a reference to a subsection or a paragraph is a reference to a subsection or paragraph of the provision in which the reference occurs, unless it is indicated that a reference to some other provision is intended.

• (3) In this Act a reference to any enactment shall be construed as a reference to that enactment as amended, extended or adapted by or under any subsequent enactment including this Act.

2 Application.

2.—This Act shall apply—

• (a) for the purpose of financing payments as a consequence of the adoption of Council Directive No. 79/7/EEC of 19 December 1978,

• (b) for any other specified purpose where Dáil Éireann resolves that this Act shall apply for that purpose.

3 Disposal of certain mortgages held by housing authorities.

3.—(1) The transfer, sale or assignment of mortgages by a housing authority under section 14 of the Housing (Miscellaneous Provisions) Act, 1992, shall, for the purpose of this Act, include an assignment of the debt secured by a mortgage, which assignment shall be deemed to be an equitable assignment.

• (2) A housing authority may deduct from any amount payable by them to a designated body such fee or charge as may have been duly determined by the Minister for the Environment, or as may be determined from time to time by the Minister for the Environment with the consent of the Minister, in respect of the administration by the housing authority of mortgages assigned by virtue of this Act.

• (3) In this section “debt”, in relation to a mortgage assigned by virtue of this Act, means the principal owed and the interest payable to a housing authority from time to time under the mortgage.

4 Designated bodies.

4.—(1) For the purposes of any transfer, sale or assignment under section 14 of the Housing (Miscellaneous Provisions) Act, 1992, by virtue of section 3 such transfer, sale or assignment shall only be made—

• (a) to such body as may be designated by the Minister from time to time under this section for that purpose, and

• (b) for a consideration payable into the Exchequer from that body.

• (2) For the purpose of designating a body under subsection (1) the Minister may, from time to time, form or cause to be formed a limited company under the Companies Acts, 1963 to 1990.

• (3) The Minister shall have all the powers as are necessary to manage or cause to be managed a body designated under subsection (1).

5 Proceeds of certain mortgage payments to be excluded from general revenues of housing authorities.

5.—The amounts assigned by a housing authority in accordance with section 3 to a designated body shall be excluded from the general revenues of such authority for the purpose of the charge on its general revenue duly held under the Local Loans Fund (Amendment) Act, 1961.

6 Effect of payment by housing authority to designated body.

6.—Notwithstanding section 5, any payment made by a housing authority for the purposes of this Act to a designated body shall have the same effect in respect of such authority's liabilities to the Local Loans Fund as if that payment had been duly made for the benefit of that Fund.

7 Indemnity, etc. to designated body by Minister.

7.—(1) The Minister shall indemnify, guarantee and pay to a designated body, on such terms as the Minister considers appropriate, such amount or amounts as are necessary to ensure that the obligations of a housing authority in connection with an equitable assignment by it under section 3 are met and continue to be met.

• (2) Any payment by the Minister under this section shall be a charge on the Central Fund or the growing produce thereof.

8 Collection and remission of payments through Local Loans Fund.

8.—The Minister shall, through the Local Loans Fund, act as agent for the collection and remission of payments due to any designated body.

9 Disclosure of certain information.

9.—A housing authority shall provide either or both the Minister and the Minister for the Environment with such information as may be required by each of them from time to time for the purposes of this Act.

10 Treatment of surplus on winding up of designated body.

10.—Any monetary surplus arising on the winding up of a designated body shall be paid into the Exchequer.

11 Amendment of section 138 (holding and investment of moneys of Post Office Savings Bank Fund, etc.) of Finance Act, 1993.

11.—Section 138 of the Finance Act, 1993, is hereby amended by the insertion of the following subparagraph after subparagraph (iv) of paragraph (b) of subsection (1):

• “(v) any securities issued by a body designated by the Minister for Finance under section 4 of the Securitisation (Proceeds of Certain Mortgages) Act, 1995;”.

12 Power of Minister to enter investment or hedging contracts, etc.

12.—(1) For the purposes of the management of the assets and liabilities of a designated body, the Minister may enter into transactions of a normal banking nature with such body including the purchase of securities issued by such body.

• (2)
• (a) Any amounts paid by the Minister under this section shall be charged on the Central Fund or the growing produce thereof.

• (b) Any amounts paid to the Minister under this section shall be paid into the Exchequer.

13 Delegation of certain functions.

13.—The Government may, by order under section 5 of the National Treasury Management Agency Act, 1990, delegate to the National Treasury Management Agency any of the functions of the Minister under—

• (a) subsections (2) and (3) of section 4, and

• (b) section 12,

as if the functions so delegated were functions specified in the First Schedule to that Act, and the other provisions of the said section 5 shall apply accordingly.

14 Exemption from tax of designated body.

14.—(1) Notwithstanding any provision of the Tax Acts, income arising to a designated body shall be exempt from income tax and corporation tax.

• (2) Any stock or other forms of security issued by a designated body shall be deemed to be securities issued under the authority of the Minister within the meaning of section 466 of the Income Tax Act, 1967, and that section shall apply accordingly.

• (3) Section 474 of the Income Tax Act, 1967, is hereby amended by the insertion in subsection (1) after “Finance Act, 1994” (inserted by section 161 of the Finance Act, 1994) of “, or section 14 (2) of the Securitisation (Proceeds of Certain Mortgages) Act, 1995”.

• (4) Section 19 of the Capital Gains Tax Act, 1975, is hereby amended in subsection (1) by the insertion after paragraph (b) of the following paragraph:

• “(bb) securities issued by a designated body within the meaning assigned by section 1 of the Securitisation (Proceeds of Certain Mortgages) Act, 1995;”.

• (5) Section 23 of the Capital Gains Tax Act, 1975, shall apply to a gain accruing to a designated body as it does to a gain accruing to a body specified in that section.

15 Exemption from stamp duty of designated body.

15.—Stamp duty shall not be chargeable on—

• (a) the transfer, sale, or assignment of mortgages by a housing authority to a designated body, or

• (b) the transfer of securities issued by a designated body.

16 Audit.

16.—The accounts of a designated body shall be submitted annually to the Comptroller and Auditor General for audit at such times as the Minister may direct.

17 Expenses.

17.—Any expenses incurred in connection with the administration of this Act by the Minister shall be a charge on the Central Fund or the growing produce thereof.

18 Short title.

18.—This Act may be cited as the Securitisation (Proceeds of Certain Mortgages) Act, 1995.

Footnotes