Asset Covered Securities Act, 2001
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Definition of public credit. |
5.—(1) For the purposes of this Act, public credit is any kind of financial obligation in respect of money borrowed or raised, where the person who has the obligation is— | |
(a) the State or any other EEA country, Canada, Japan, the Swiss Confederation, the United States of America, or a country specified in an order made under subsection (4), | ||
(b) a country, other than a country to which paragraph (a) relates, that is a full member of the Organisation for Economic Co-operation and Development, but only if it has not rescheduled its external debt during the immediately preceding 5 years, | ||
(c) any governmental or public entity established in a country to which paragraph (a) or (b) relates that has, under the law of the country or a region of that country, power to impose taxes (including levies or rates), | ||
(d) subject to subsection (3), any other governmental or public entity established in a country to which paragraph (a) or (b) relates whose financial obligations have a risk weighting of 20 per cent or less for the purposes of the Codified Banking Directive, | ||
(e) the European Communities (or any of them) or the European Investment Bank, or | ||
(f) any other entity established in a country to which paragraph (a) or (b) relates that is prescribed by the regulations for the purposes of this section. | ||
(2) For the purposes of subsection (1), a financial obligation includes a financial obligation that is in the form of a security that represents other public credit that is securitised as well as one that does not. | ||
(3) The reference in subsection (1)(d) to a governmental or public entity does not include a credit institution or other financial institution whose financial obligations have the risk weighting referred to in that paragraph only because of its status as such an institution. | ||
(4) The Minister may, by order notified in Iris Oifigiúil, specify for the purposes of paragraph (a) of subsection (1) a country other than one specified in that paragraph. | ||
(5) For the purposes of this Act, public credit also includes any kind of credit for the time being designated by order made under subsection (6)(a). | ||
(6) The Minister may, by order notified in Iris Oifigiúil— | ||
(a) designate credit of a specified kind to be public credit for the purposes of this Act, or | ||
(b) declare credit of a specified kind to be no longer public credit for those purposes. | ||
(7) The Minister may, in an order made under subsection (6)(a), declare— | ||
(a) that section 46 (1) or 48 (2) does not apply to public credit assets consisting of public credits of the kind specified in the order, or | ||
(b) that either or both of those provisions apply to those public credit assets only with such modifications as are so specified. | ||
(8) The Minister may specify in an order made under subsection (6)(a) requirements as to the total prudent market value of relevant public credit assets that can be included in a cover assets pool, expressed as a percentage of the prudent market value of the total public credit assets and substitution assets that are included in the pool. For the purposes of this subsection, public credit assets are relevant public credit assets if they are comprised of public credits of a kind specified in the order. |