S.I. No. 420/2004 - Asset Covered Securities Act, 2001 (Section 61 (1), 61 (2), 61(3)) [Prudent Market Discount] Regulation 2004

Section 33C of the Central Bank Act, 1942 (as amended) designates the Irish Financial Services Regulatory Authority (the “Authority”) as being the body responsible for exercising the powers conferred on the Central Bank and Financial Services Authority of Ireland by Section 61 (1), 61 (2) and 61(3) of the Asset Covered Securities Act, 2001 (no 47 of 2001) (as amended). The Authority hereby makes the following Regulation:

1.    This Regulation may be called the Asset Covered Securities Act, 2001 (Sections 61(1), 61(2) and 61(3)) [Prudent Market Discount] Regulation 2004.

2.    In this Regulation the “Act” means the Asset Covered Securities Act, 2001 (no 47 of 2001) (as amended). A word or expression that is used in this Regulation and is also used in the Act has, unless the contrary intention appears, the same meaning in this Regulation as in the Act.

3.    In this Regulation, “Reference Index” means that the Reference Index for the purposes of certain calculations which are to be made by designated mortgaged credit institutions in respect of Irish Residential Property Assets under Asset Covered Securities Act, 2001 Regulatory Notice (Section 41(1)) 2004 [Irish Residential Property Assets/Mortgage Credit Assets].

4.    In this Regulation, “Prudent Market Discount” has the meaning given to it in Asset Covered Securities Act, 2001 Regulatory Notice (Section 41(1)) 2004 [Irish Residential Property Assets/Mortgage Credit Assets].

5.      This Regulation prescribes that a cover-assets monitor appointed in respect of any designated mortgage credit institution when performing its responsibilities under the Act must have regard to any contractual undertakings given by the designated mortgage credit institution to apply a level of prudent market discount to certain calculations which are to be made by designated mortgage credit institution in respect of Asset Covered Securities Act, 2001 Regulatory Notice (Section 41(1)) 2004 [Irish Residential Property Assets/Mortgage Credit Assets] and the cover-assets monitor is responsible for monitoring the designated mortgage credit institution's compliance with those undertakings.

EXPLANATORY NOTE

This note is not part of the Regulation and does not purport to be a legal interpretation.

This regulation prescribes that the cover-assets monitor must have regard to contractual undertakings given by the designated mortgage credit institution to apply a level of prudent market discount to certain calculations which are to be made by designated mortgage credit institution in respect of Asset Covered Securities Act, 2001 Regulatory Notice (Section 41(1)) 2004 [Irish Residential Property Assets/Mortgage Credit Assets] and the cover-assets monitor is responsible for monitoring the designated mortgage credit institution's compliance with those undertakings.