Asset Covered Securities Act, 2001
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Chapter 2 Issue of asset covered securities by designated public credit institutions | ||
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Interpretation (Chapter 2). |
42.—(1) For the purposes of this Chapter, the following activities are permitted business activities but only if carried out in accordance with this Act: | |
(a) providing public credit and dealing in and holding public credit assets; | ||
(b) dealing in and holding substitution assets; | ||
(c) dealing in and holding assets of a kind that, in accordance with a requirement of the Authority made under the supervisory enactments, designated public credit institutions are required to hold for regulatory purposes; | ||
(d) dealing in and holding credit transaction assets; | ||
(e) dealing in and holding tier 2 assets; | ||
(f) engaging in activities connected with financing or refinancing assets of a kind mentioned in paragraphs (a) to (e); | ||
(g) entering into contracts in accordance with section 45 for the purpose of hedging risks associated with any other activity of a kind mentioned in paragraphs (a) to (f); and | ||
(h) engaging in activities that are incidental or ancillary to carrying on any other activity mentioned in paragraphs (a) to (g). | ||
(2) The activities referred to in subsection (1)(f) include (but are not limited to)— | ||
(a) taking deposits or other repayable funds from the public, and | ||
(b) issuing asset covered securities. | ||
(3) For the purposes of this Chapter— | ||
“credit transaction”, in relation to a designated public credit institution, means— | ||
(a) placing a deposit with an eligible financial institution designated or of a class designated under subsection (4), | ||
(b) dealing with or holding a financial asset, or | ||
(c) any other kind of transaction designated by an order made under subsection (5)(a); | ||
“credit transaction asset” means an asset derived from having engaged in a credit transaction (not being a hedge contract entered into in accordance with section 45 ), but does not include a public credit asset, mortgage credit asset, substitution asset or tier 2 asset. | ||
(4) The Authority shall, by order notified in Iris Oifigiúil, designate one or more financial institutions, or financial institutions of one or more specified classes, to be eligible financial institutions for the purposes of paragraph (a) of the definition of “credit transaction” in subsection (3). | ||
(5) The Minister may, by order notified in Iris Oifigiúil— | ||
(a) designate a transaction of a specified kind to be a credit transaction for the purposes of the definition of “credit transaction” in subsection (3), or | ||
(b) declare a transaction of a specified kind to be no longer a credit transaction for those purposes. |