Asset Covered Securities Act, 2001
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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. |