Asset Covered Securities Act, 2001

• Permanent Page URL

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to whom a loan secured by a mortgage of a freehold or leasehold estate or interest in a house has been made under the repealed enactments,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.”.

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.”.

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.”.

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.”.