Asset Covered Securities Act, 2001

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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.