ASSET COVERED SECURITIES ACT, 2001

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.

66 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).

67 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.

68 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.

69 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.

70 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.

PART 6 Management of Business Activities of Designated or Formerly Designated Credit Institutions in Certain Circumstances

71 Interpretation (Part 6).

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 Authority may appoint manager in respect of designated credit institution or formerly designated credit institution in certain circumstances.

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 What happens if NTMA's attempts to locate a manager are unsuccessful.

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 What happens if NTMA's attempts to locate a parent entity are unsuccessful.

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 NTMA may be appointed as temporary manager in certain circumstances.

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 Fees payable to NTMA.

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 Application of Schedule 1 to managers.

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

78 Effect of appointment of person as manager.

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 Responsibilities of manager.

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 Appointment of new manager to be appointed to fill vacancy.

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.

PART 7 Effect of Potential Insolvency Process on Designated or Formerly Designated Credit Institution

81 Application and operation of this Part.

81.—(1) Except as provided by section 87, the following enactments do not affect the application and operation of this Part in respect of designated and formerly designated credit institutions:

• (a) the Companies Acts;

• (b) the Bankruptcy Acts, 1988 and 2001;

• (c) the Taxes Acts;

• (d) the supervisory enactments;

• (e) any other enactment or any rule of law relating to an insolvency process.

• (2) For the purposes of subsection (1), “Taxes Acts” has the same meaning as is given to the expression “the Acts” in section 811(1)(a) of the Taxes Consolidation Act, 1997.

• (3) This Part does not apply to a cover assets hedge contract that has been removed from the relevant register of mortgage covered securities business, or register of public credit covered securities business, in accordance with this Act.

82 Existing rights of certain persons not affected by insolvency or potential insolvency of designated credit institution.

82.—The fact that a designated or formerly designated credit institution, or its parent entity or any company related to the institution, has become insolvent or potentially insolvent does not affect—

• (a) the claims and rights of holders of asset covered securities issued by the institution,

• (b) the claims and rights of persons referred to in paragraph (b) of the definition of “preferred creditor” in section 3,

• (c) the claims and rights that the other contracting party has under any cover assets hedge contract entered into by the institution,

• (d) the appointment of a cover-assets monitor in respect of the institution under Part 5 and the claims and rights of the monitor in so far as those claims or rights relate to the appointment or arise under this Act,

• (e) the appointment of a manager in respect of the institution under Part 6 and the claims and rights of the manager in so far as those claims or rights relate to the appointment or arise under this Act, or

• (f) the functions of the NTMA under Part 6 and the claims and rights of the NTMA in so far as those claims and rights relate to those functions.

83 Rights of preferred creditors in relation to cover assets.

83.—(1) If a designated credit institution, or its parent entity or any company related to the institution, becomes subject to an insolvency process, preferred creditors are, for the purpose of satisfying their claims and rights under this Part, entitled to have recourse to the cover assets that are included in the relevant cover assets pool ahead of members of, and contributories to, the institution and all other creditors of the institution, parent entity or company. This section applies irrespective of whether the claims of creditors other than preferred creditors are preferred under any other enactment or any rule of law and whether those claims are secured or unsecured.

• (2) Subject to subsection (3), the claims of preferred creditors of a designated or formerly designated credit institution rank equally among themselves but if those claims cannot be fully satisfied they are to abate in proportion to the amounts of those claims.

• (3) The claims of super-preferred creditors rank ahead of those of any other preferred creditors and equally among themselves, but if the first-mentioned claims cannot be fully satisfied, they are to abate in proportion to the amounts of those claims.

• (4) Subject to section 87, subsections (2) and (3) have effect irrespective of—

• (a) when the security, contract or appointment giving rise to a claim was issued or made, and

• (b) when a claim of a preferred creditor arose,

and irrespective of the terms of that security, contract or appointment.

• (5) If the claims of all preferred creditors are not fully satisfied from the proceeds realised from the disposal of cover assets that are included in the relevant cover assets pool of a designated or formerly designated credit institution, those creditors are, with respect to the unsatisfied parts of their claims, to be regarded as unsecured creditors whose claims, subject to subsection (3), rank equally among themselves in any insolvency process relating to the institution.

84 Obligations of designated credit institution to continue despite insolvency process.

84.—(1) The obligations of a designated or formerly designated credit institution—

• (a) arising under or in respect of an asset covered security issued by the institution,

• (b) arising under or in respect of any cover assets hedge contract entered into by the institution,

• (c) towards the cover-assets monitor appointed in respect of the institution,

• (d) towards any manager appointed to manage affairs of the institution, or

• (e) towards the NTMA under Part 6,

continue to have effect in relation to the institution, and be enforceable, despite the institution, or its parent entity or a company related to the institution, becoming subject to an insolvency process.

• (2) If a designated or formerly designated credit institution, or where the institution has a parent entity or a company is related to the institution, the parent entity or related company, becomes subject to an insolvency process, the obligation of the institution to appoint and maintain a cover-assets monitor, and the powers of the Authority and the NTMA arising under this Act with respect to the appointment of a manager, continue to have effect until—

• (a) the claims of all preferred creditors have been fully satisfied, and

• (b) the functions of each cover-assets monitor and manager appointed in respect of the institution have been fully discharged.

85 Effect of insolvency process on asset covered securities and cover assets hedge contracts of designated credit institutions.

85.—(1) If a designated or formerly designated credit institution, or where the institution has a parent entity or a company is related to the institution, the parent entity or related company, becomes subject to an insolvency process—

• (a) all asset covered securities issued by the institution remain outstanding, subject to the terms and conditions specified in the security documents under which those securities are created,

• (b) every cover assets hedge contract relating to those securities continues to have effect, subject to the terms and conditions of the contract,

• (c) each cover-assets monitor or manager appointed by or in respect of the institution continues to hold office as such in accordance with the terms and conditions applicable to the appointment, and

• (d) the institution's obligations under those securities, or any such contract or appointment, continue to be enforceable.

• (2) Cover assets that are included in a cover assets pool do not form part of the assets of a designated or formerly designated credit institution or, where the institution has a parent entity or a company is related to the institution, of the parent entity or related company, for the purposes of any insolvency process until the claims secured by this Part have been fully satisfied.

• (3) Cover assets that are included in a cover assets pool are not liable to attachment, sequestration or other form of seizure, or to set-off by any persons, that would, but for this subsection, be permitted by law so long as claims secured under this Part remain unsatisfied.

86 Designated or formerly designated credit institution not to be dissolved unless claims of preferred creditors have been satisfied.

86.—A designated or formerly designated credit institution may not be dissolved under an insolvency process unless the claims and rights of all preferred creditors have been fully satisfied. However, the High Court may make an order dissolving the institution if it is satisfied that the institution has no assets capable of meeting the claims and rights of those creditors.

87 This Part not to prevent application of enactment or rule of law relating to fraud, misrepresentation, etc.

87.—(1) Nothing in this Part affects the application to—

• (a) an asset covered security issued by a designated or formerly designated credit institution,

• (b) a cover assets hedge contract entered into by such an institution, or

• (c) a contract relating to the appointment of a cover-assets monitor in respect of the institution,

of any enactment or rule of law that would (with respect to circumstances existing at the time when the security was issued or the contract was entered into) render the security or contract void or unenforceable on the ground of fraud or misrepresentation or because of the operation of an enactment specified in subsection (2).

• (2) The following enactments are specified for the purpose of subsection (1):

• (a) section 57, 58 or 59 of the Bankruptcy Act, 1988;

• (b) section 286 of the Companies Act, 1963;

• (c) section 139 of the Companies Act, 1990.

88 Designated credit institution not to create security interest in cover assets if claims of preferred creditors would be adversely affected.

88.—(1) If asset covered securities are outstanding, or a cover assets hedge contract is in existence, in relation to a designated credit institution, the institution shall not create a security interest in respect of any cover assets that are included in a cover assets pool if the interest would, but for this Part, adversely affect the priority conferred by this Part of preferred creditors in respect of those assets. If the institution creates any such security interest, the interest is void and any money secured by it is repayable immediately.

• (2) Subsection (1) does not prevent a designated credit institution from creating a security interest in respect of cover assets included in a cover assets pool maintained by the institution if—

• (a) the relevant assets are located outside the State, or are financial obligations of an entity referred to in section 5(1)(e), and

• (b) the person who, directly or indirectly, has the benefit of the interest is the same person as the person who is entitled to security over those assets in accordance with the order of priority prescribed by this Part.

• (3) If a cover asset included in a cover assets pool maintained by a designated credit institution is subject to a security interest and the creation of the interest would contravene subsection (1), the institution shall, in accordance with section 35 or 50 (as appropriate), replace the asset with one or more assets that are not subject to such a security interest.

• (4) In this section—

“security interest” includes mortgage, charge, pledge, lien and encumbrance.

89 Certain directions not to apply unless rights of certain persons have been satisfied.

89.—(1) This section applies to the following directions:

• (a) a direction given under section 20 or 21,

• (b) a direction given by the Central Bank under section 11 or 21 of the Central Bank Act, 1971, section 26 of the Trustee Savings Banks Act, 1989, section 27(3) of the Investor Compensation Act, 1998, or section 40(2) of the Building Societies Act, 1989.

• (2) Unless the Authority has given a notice to the institution under subsection (3), a direction to which this section applies does not have effect with respect to a designated or formerly designated credit institution, its parent entity or any other company related to the institution as regards—

• (a) any cover assets that are included in a cover assets pool maintained by the institution,

• (b) any asset covered securities issued by the institution, or

• (c) any cover assets hedge contracts entered into by the institution,

until the claims and rights of the holders of those securities, the claims and rights of the other parties to those contracts, and the claims and rights of every cover-assets monitor, and any manager, appointed in respect of the institution, arising out of the performance of their functions, have been fully satisfied.

• (3) If satisfied on reasonable grounds that a designated or formerly designated credit institution is carrying on its business relating to asset covered securities or a cover assets hedge contract, or the relevant cover assets, so as—

• (a) to adversely affect the security of holders of those securities or the other party to the contract, or

• (b) to jeopardise the making of payments by the institution in respect of those securities in accordance with the terms of the relevant security documents, or the making of payments by the institution under the contract,

the Authority may, by notice in writing given to the institution, declare that a direction to which this section applies has effect in respect of the institution, its parent entity or any other company related to the institution.

90 Provisions applicable where credit institution is both designated mortgage credit institution and designated public credit institution.

90.—(1) If a credit institution that is or was formerly both a designated mortgage credit institution and a designated public credit institution has—

• (a) issued mortgage covered securities, or

• (b) entered into a cover assets hedge contract relating to mortgage covered securities issued by the institution,

the rights of the holders of those securities, or the other party to the contract, are secured only on the cover assets that comprise the relevant cover assets pool.

• (2) If a credit institution that is or was formerly both a designated mortgage credit institution and a designated public credit institution has—

• (a) issued public credit covered securities, or

• (b) entered into a cover assets hedge contract relating to public credit covered securities issued by the institution,

the rights of the holders of those securities, or the other party to the contract, are secured only on the cover assets that comprise the relevant cover assets pool.

PART 8 Regulations, Orders and Regulatory Notices

91 Authority may make regulations for purposes of Act.

91.—(1) The Authority may make regulations, not inconsistent with this Act, for or with respect to any matter that by this Act is required or permitted to be prescribed, or that is necessary or expedient to be prescribed, for carrying out or giving effect to this Act.

• (2) Without limiting subsection (1), regulations under that subsection may do any or all of the following—

• (a) prescribe requirements with respect to carrying on asset covered securities business that designated credit institutions must comply with,

• (b) prescribe requirements that a designated mortgage credit institution must comply with in maintaining its cover assets pools,

• (c) prescribe requirements that a designated public credit institution must comply with in maintaining its cover assets pools,

• (d) prescribe kinds of substitution assets that may be included in a cover assets pool,

• (e) prescribe which and in what circumstances mortgage credit assets, or public credit assets, or substitution assets that are included in a cover assets pool are required or permitted to be substituted,

• (f) prescribe requirements that a designated mortgage credit institution is required to comply with in relation to the institution's register of mortgage covered securities business,

• (g) prescribe requirements that a designated public credit institution is required to comply with in relation to the institution's register of public credit covered securities business,

• (h) prescribe requirements with respect to the financial statements that a designated mortgage credit institution or a designated public credit institution or its parent entity must comply with,

• (i) prescribe responsibilities to be carried out by a cover-assets monitor in relation to the designated mortgage credit institution, or designated public credit institution, in respect of which the monitor is appointed,

• (j) provide for the removal and replacement of a cover-assets monitor on specified grounds,

• (k) supplement the provisions of this Act relating to transfers of the whole or a part of an asset covered securities business, or of assets relating to such a business, in accordance with section 58,

• (l) supplement the provisions of section 102 with respect to entering into reciprocal arrangements with qualifying countries.

• (3) A regulation may create an offence for contravening or failing to comply with a provision of the regulation and impose a fine not exceeding €100,000 (£78,756.40) for the offence if tried on indictment or €1,900 (£1,496.37) if dealt with summarily.

• (4) A provision of a regulation may—

• (a) apply generally or be limited in its application by reference to specified exceptions or factors,

• (b) apply differently according to different factors of a specified kind, or

• (c) authorise any matter or thing to be from time to time determined, applied or regulated by a specified person or body,

or may do any combination of those things.

92 Minister to consult Authority before making in order for purposes of this Act.

92.—The Minister is required to consult the Authority before making an order for the purposes of this Act.

93 Regulations and orders to be laid before each House of Oireachtas.

93.—(1) The Minister shall ensure that every regulation made by the Authority, and every order made by the Minister or the Authority under this Act, is laid before each House of the Oireachtas as soon as practicable after it is made.

• (2) This section does not apply to an order made under section 58.

94 House of Oireachtas may annul regulation or order.

94.—(1) Either House of the Oireachtas may, by resolution passed within 21 sitting days after the day on which a regulation or order was laid before it in accordance with section 93, annul the regulation or order.

• (2) The annulment of such a regulation or order takes effect immediately on the passing of the resolution concerned, but does not affect anything that was done under the regulation or order before the passing of that resolution.

95 Regulatory notices.

95.—(1) A regulatory notice issued by the Authority comes into operation on the date on which it is published in Iris Oifigiúil or on such later date as is specified in the notice.

• (2) The Authority may from time to time amend or revoke a regulatory notice it has issued under this Act.

• (3) For the purpose of subsection (2), “amend” includes add to, substitute and delete.

PART 9 Enforcement

96 Court empowered to make prohibition or compliance orders.

96.—(1) The High Court may, on the hearing of an application made under this section, make an order prohibiting a person whom it finds to be contravening or to have repeatedly contravened a provision of this Act or a regulatory notice from continuing or repeating the contravention.

• (2) The High Court may, on the hearing of an application made under this section, make an order requiring a person to comply with a provision of this Act or a regulatory notice if it finds that the person has failed or is failing to comply with the provision after being requested by the Authority to so comply.

• (3) The Authority or any person or class of person specified in an order made under subsection (7), may make an application for the purpose of subsection (1) or (2).

• (4) An order under this section may be made subject to such conditions as the High Court considers appropriate.

• (5) If the High Court decides to make an order under subsection (1) or (2), it may also make an order requiring a person to do a specified act.

• (6) The High Court may grant an interim order pending the determination of an application under this section. Such an order may be granted on the basis of rebuttable evidence that the person concerned has contravened or is contravening, or has failed or is failing to comply with, a provision of this Act.

• (7) The Minister may, by order notified in Iris Oifigiúil, specify a person, or class of persons, for the purpose of subsection (3).

97 Time within which proceedings for an offence may be brought.

97.—Despite section 10(4) of the Petty Sessions (Ireland) Act, 1851, or any other Act, proceedings for an offence against this Act may be brought at any time within 2 years after the date alleged to be the date on which the offence was committed or, if the offence involved misleading or deceptive conduct, 2 years after the date on which the Authority has become aware of the commission of the offence.

98 Offences relating to acts affecting the performance of official functions.

98.—(1) A person who—

• (a) prevents an authorised person from performing a function imposed by this Act, or obstructs an authorised person who is performing such a function,

• (b) without reasonable excuse, fails to provide an authorised person with information that is lawfully required by or under this Act, or

• (c) provides an authorised person with information required by or under this Act knowing it to be materially false or misleading,

commits an offence and is liable on summary conviction to a fine not exceeding €1,900 (£1,496.37) or to imprisonment for a term not exceeding 6 months, or to both.

• (2) In this section, “authorised person” means—

• (a) the Authority, or any person authorised by it to perform the relevant function on its behalf,

• (b) any delegate of the Authority or any member or employee of any such delegate, or

• (c) a cover-assets monitor,

• (d) the NTMA, or any person authorised by it to perform the relevant function on its behalf, or

• (e) a manager appointed in respect of a designated credit institution or formerly designated credit institution.

99 Offences by bodies corporate.

99.—(1) If a body corporate commits an offence against a provision of this Act, each person who was an officer of the body when the offence was committed commits an offence against this section if it is proved that the officer—

• (a) willingly participated in, connived at or consented to the commission of the offence by the body, or

• (b) knowing that the body corporate was committing or about to commit that offence, failed to take all reasonably practicable steps to prevent its commission.

• (2) A person who commits an offence against this section is liable on conviction to a fine not exceeding that for which the body corporate is liable for the offence.

• (3) A person may be proceeded against for an offence against this section whether or not the body corporate has been proceeded against or been convicted of the offence committed by that body.

• (4) In this section, “officer”, in relation to a body corporate, means a director, manager, executive officer, secretary or other person concerned in the management of the body.

PART 10 Miscellaneous

100 Certain persons to be not liable for commission of certain acts and omissions under this Act.

100.—(1) This section applies to the following persons—

• (a) the Minister and any public officer acting under the direction of the Minister,

• (b) the Authority, members and employees of the Authority, and persons acting under the direction of the Authority,

• (c) the NTMA, the chief executive and employees of the NTMA, and persons acting under the direction of the NTMA,

• (d) a cover-assets monitor appointed in respect of a designated credit institution under Part 5, officers and employees of the monitor, and persons acting under the direction of the monitor,

• (e) a manager, other than the NTMA, appointed in respect of a designated or formerly designated credit institution under Part 6 or Schedule 1, officers and employees of the manager, and persons acting under the direction of the manager.

• (2) A person to whom this section applies is not liable in any civil proceedings for any act done, or omitted to be done, by the person for the purposes of, or in connection with, performing or exercising any function or power imposed or conferred on the Minister, the Authority, the NTMA, a cover-assets monitor or manager by or under this Act if the act was done, or was omitted, in good faith for the purposes of this Act.

101 Designation of credit institution not to be a warranty of solvency, etc.

101.—The fact that a person is registered under this Act as a designated credit institution, or that a person is in any respect being regulated or monitored under this Act, does not of itself constitute a warranty that the person is solvent or that the person is complying with, or has complied with, this Act, or with obligations imposed on the person by or under this Act.

102 Reciprocal arrangements with other countries.

102.—(1) In this section—

“corresponding law”, in relation to a relevant overseas country, means a law in force in that country which corresponds to, or substantially corresponds to, the provisions of this Act;

“relevant overseas country” means—

• (a) an EEA country (other than the State), or

• (b) a category A country, or

• (c) a category B country designated by an order in force under section 33(4) or 48(4).

• (2) This section applies when a corresponding law of a relevant overseas country contains provisions that treat—

• (a) designated credit institutions, and

• (b) the holders of asset covered securities issued by those institutions,

no less favourably than their counterparts in that country.

• (3) If—

• (a) a credit institution established and authorised in a relevant overseas country has issued securities that, under a corresponding law of that country, are equivalent to or substantially equivalent to asset covered securities issued by a designated credit institution in accordance with this Act,

• (b) those securities are, in accordance with that law, secured over or backed by assets that would be eligible to be cover assets for the purposes of this Act if held by a designated credit institution,

• (c) assets located in the State provide security or backing to satisfy the claims and rights of holders of those securities, and

• (d) that security or backing is equivalent to, or is substantially equivalent to, that to which preferred creditors are entitled under Part 7,

the rights and benefits conferred by this Act on preferred creditors referred to in paragraphs (a) and (b) of the definition of that expression in section 3(1) also extend, subject to section 87 and with such modifications as are prescribed by the regulations, to holders of equivalent securities issued by relevant financial institutions in that country in so far as those securities relate to assets that are located in the State.

103 Giving of notices.

103.—(1) If, under this Act, a notice (not being a regulatory notice) is required or permitted to be given to a person, the notice may be given—

• (a) where the person is a natural person, by giving it to the person personally or by sending it by prepaid registered letter addressed to the person at the person's usual or last known place of residence or business, or

• (b) where the person is a body corporate—

• (i) by delivering it to a person who is or apparently is concerned in the management of the body, or

• (ii) by leaving it at the registered office of the body with a person apparently employed at that office, being a person who has or apparently has attained the age of 16 years, or

• (iii) by sending it by prepaid registered letter addressed to the body at that registered office.

• (2) In subsection (1)(b), “registered office” in relation to a body corporate means—

• (a) the office of the body that is the registered office or principal office in accordance with the law under which the body is incorporated,

• (b) if the body is not incorporated in the State, an office registered under a law of the State as a registered office of the body, or

• (c) in the case of a body that has no such registered office or principal office, the principal place of business of the body corporate in the State.

104 Certain documents exempt from stamp duty.

104.—Stamp duty is not chargeable on—

• (a) the issue of an asset covered security in accordance with this Act,

• (b) a transfer of such a security, or

• (c) a transfer of a business or a part of a business, or an asset, in respect of which the approval of the Minister or the Authority is required under section 58.

105 Expenses incurred in administering this Act.

105.—The expenses incurred by the Minister in administering this Act are, to such extent as the Minister approves, payable out of money provided by the Oireachtas.

106 Consequential amendments to other Acts.

106.—The Acts specified in Schedule 2 are amended as indicated in that Schedule.

SCHEDULE 1

Provisions Applicable to Managers

SCHEDULE 2

Consequential Amendments to other Acts

PART 1 Amendment of Building Societies Act, 1989

Item No.	Section affected	Amendment
1.	Section 2	(a) In subsection (1), insert the following definitions after the definition of “associated body”:
		“‘associated designated credit institution’, in relation to a building society, means a designated mortgage credit institution in which a society has invested in accordance with section 28;
		‘associated home loan’, in relation to an associated designated credit institution, means a housing loan (as defined in section 2 of the Consumer Credit Act, 1995) in respect of which the institution is the creditor or one of the creditors;”;
		(b) In subsection (1), insert the following definition after the definition of “deposit”:
		“‘designated mortgage credit institution’ has the meaning given in section 3 of the Asset Covered Securities Act, 2001;”; and
		(c) In the definition of “housing loan” in subsection (1), insert “, but does not include an associated home loan” after “section 22”.
2.	Section 9	In subsection (2), substitute “any ancillary or incidental powers that are related to the furtherance” for “any incidental powers that are necessary for the achievement”.
3.	Section 16	Substitute the following subsections for subsection (2):
		“(2) A society may, if its rules permit, allow a person—
		(a) to whom a housing loan or associated home loan is made, or
		(b) to whom a loan secured by a mortgage of a freehold or leasehold estate or interest in a house has been made under the repealed enactments,
		to be a member even though the person does not hold shares in the society. However, the liability of a person who is allowed to be such a member must not be any greater than would be the case if the rules treated the person as being a holder of shares in the society because of the making of the loan.
		(2A) Subsection (2) continues to apply to a person referred to in that subsection even if the society's rights in respect of the loan are disposed of under section 18(6).”.
4.	Section 18	(a) In subsection (1), substitute the following paragraph for paragraph (b):
		“(b) by receiving deposits or issuing securities or any other means (other than the issue of shares of the kind referred to in paragraph (a)).”;
		(b) Substitute the following subsection for subsection (3):
		“(3) A society shall ensure that its total liabilities under subsection (1)(b) do not exceed such proportion of its total liabilities under subsection (1)(a) as the Central Bank specifies in a notice given to the society. The Central Bank shall issue a notice for the purpose of this subsection whenever the occasion requires.”;
		(c) Substitute the following subsections for subsection (5):
		“(5) A society may give security for—
		(a) any money that it borrows or raises, or
		(b) any money borrowed or raised by a body corporate or an approved housing body in which it has invested, or that it has supported, in accordance with section 28.
		(5A) Any such security may include mortgages held by the society and any interest in those mortgages, subject to compliance by the society with—
		(a) any requirements made under subsection (6A), and
		(b) the requirement to obtain the approval of the Central Bank, and
		(c) the terms of those mortgages.
		(5B) For the purposes of subsections (5) and (5A), ‘security’ means any kind of security recognised by law.”;
		and
		(d) Insert the following subsections after subsection (5B):
		“(6) A society may dispose of a mortgage, or any interest in a mortgage, that it holds as security for a loan or other form of credit, together with any other security that it holds in relation to the mortgage or interest.
		(6A) The Central Bank may, from time to time, serve on a society a notice specifying requirements that the society must comply with in relation to its exercise of the powers conferred by subsection (5), (5A) or (6).
		(6B) A society shall comply with requirements specified in a notice given to it in accordance with subsection (6A).”.
5.	Section 28	In subsection (2)(a), insert “(other than an associated designated credit institution)” after “body corporate”.
6.	Section 71	Substitute the following subsection for subsection (2):
		“(2) For the purposes of this section and Part XI, a person is a borrowing member of the society at a particular time—
		(a) if at that time the person's indebtedness to the society, or to an associated designated credit institution, is in respect of—
		(i) a loan made under the repealed enactments, secured by a mortgage of a freehold or leasehold estate or interest in a house, or
		(ii) a housing loan or an associated home loan,
		and
		(b) if in either case the amount of the mortgage debt is not less than £500 or, if the Central Bank, by regulation, prescribes some other amount for the purposes of this subsection, that other amount.”.

PART 2 Amendment of Taxes Consolidation Act, 1997

Item No.	Section affected	Amendment
1.	Section 198	Substitute the following subparagraph for subsection (1)(c)(iii):
		“(iii) a person shall not be chargeable to income tax in respect of interest payable by a company if the person is not a resident of the State and is regarded as being a resident of a relevant territory for the purpose of this subsection, and the interest is interest to which section 64(2) applies or interest paid in respect of an asset covered security within the meaning of section 2 of the Asset Covered Securities Act, 2001.”.

PART 3 Amendment of Companies Act, 1963

Item No.	Section affected	Amendment
1.	Section 61	Insert the following subsection after subsection (3):
		“(4) An offer of asset covered securities is not to be treated as an offer to the public for the purposes of this Act if the offer would, had it been made in the State, be exempted under or excluded from the operation of the European Communities (Transferable Securities and Stock Exchange) Regulations, 1992. In this subsection, ‘asset covered securities’ has the meaning given by section 3 of the Asset Covered Securities Act, 2001.”.

PART 4 Amendment of National Treasury Management Agency Act, 1990

Item No.	Section affected	Amendment
1.	Section 3	Insert the following subsection after subsection (1):
		“(1A) The Agency also has such other functions as are conferred on it by or under any other Act.”.
2.	Section 4	(a) Substitute the following subsection for subsection (1):
		“(1) The principal functions of the Agency are—
		(a) to perform on behalf of the Minister the functions delegated to it under section 5, and
		(b) to perform the functions delegated to it under Part 2 of the National Treasury Management Agency (Amendment) Act, 2000, and
		(c) to perform such other functions as are imposed on it by or under any other enactment.”.
		(b) Substitute the following subsection for subsection (3):
		“(3) In carrying out the functions referred to in subsection (1)(a) or (b), the Agency is subject to the control and general supervision of the Minister.”.