National Asset Management Agency Act 2009

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Effect of acquisition of bank assets on certain other rights.

110.— (1) In this section “ relevant instrument ” means an agreement, licence, document, security, obligation or other instrument (other than the Credit Institutions (Financial Support) Scheme 2008 ( S.I. No. 411 of 2008 )) (or an instrument entered into under that Scheme) to which any of the following is a party or by which any of the following is bound or in which any of the following has an interest:

(a) a participating institution;

(b) a subsidiary of such an institution;

(c) any body corporate in which a participating institution or any of its subsidiaries has any interest.

(2) Any provision in a relevant instrument that would (apart from this subsection) cause any of the consequences specified in subsection (3) to follow by virtue of—

(a) the enactment of this Act,

(b) any entity becoming a participating institution,

(c) the provision of any information to NAMA by an applicant credit institution or a participating institution pursuant to this Act,

(d) the acquisition of a bank asset by NAMA or a NAMA group entity under this Act,

(e) any disposition by NAMA or a NAMA group entity of any acquired bank asset, or

(f) any other thing done or authorised to be done under, pursuant to or resulting from any provision of this Act,

is of no effect, without the express consent of NAMA, except to any extent to which the Minister provides otherwise by order under section 111 .

(3) The consequences referred to in subsection (2) are the following:

(a) the creation of an obligation;

(b) the suspension or extinction (however described, and whether in whole or in part) of a right or an obligation or the becoming subject to a right or an obligation;

(c) the termination of the relevant instrument concerned or a right or obligation under it;

(d) a right becoming exercisable to terminate or modify the relevant instrument or a right or obligation under it;

(e) an amount becoming due and payable or capable of being declared due and payable;

(f) any other change in the amount or timing of any payment falling to be made or due to be received by any person;

(g) a right becoming exercisable to withhold, net or set off any payment;

(h) the occurrence of an event giving rise to a default or breach of a right or obligation;

(i) a right becoming exercisable not to advance any amount;

(j) an obligation arising to provide or transfer a deposit or collateral;

(k) a right of transfer or assignment of the asset that is stated to be exercisable only once or for a limited number of times;

(l) a right to enforce a guarantee, indemnity or security interest (however described);

(m) the triggering of any mandatory prepayment;

(n) any obligation to return collateral or its equivalent;

(o) the cancellation of any obligation to advance any amount or to provide credit or a contingent instrument;

(p) legal proceedings becoming maintainable to enforce the relevant instrument, to any extent that such proceedings would not have been maintainable had the bank asset not been acquired or had any other thing done or matter arising by virtue of or in connection with this Act not been done or not arisen, as the case may be;

(q) any other right or remedy (whether or not similar in kind to those referred to in paragraphs (a) to (o)) arising or becoming exercisable;

(r) the termination or modification of an obligation to provide a service or product.

(4) In making an order referred to in subsection (2), the Minister shall have regard to—

(a) the consequences specified in subsection (3) so far as they are relevant,

(b) the matters set out in subsection (2), and

(c) the likely impact of the proposed order on any of the matters specified in section 2 , and on NAMA’s ability to perform its functions under this Act.