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Chapter 1A— issue of asset covered securities by designated commercial mortgage credit institutions.
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30.— Part 4 of the Principal Act is amended by inserting the following after Chapter 1:
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“Chapter 1A
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Issue of asset covered securities by designated commercial mortgage credit institutions
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Modifications to Chapter 1 and sections 4(2) to (5), 58, 61, 71 and 91 to enable them to apply to designated commercial mortgage credit institutions.
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41B.— (1) The provisions of Chapter 1 and of sections 4(2) to (5), 58, 61, 71 and 91 shall apply to designated commercial mortgage credit institutions with the following modifications:
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(a) references therein to ‘asset covered securities’ or ‘mortgage covered securities’ shall mean commercial mortgage covered securities;
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(b) references therein to ‘designated mortgage credit institutions’ or, except in sections 28 and 38(7), to ‘designated credit institutions’ shall mean designated commercial mortgage credit institutions;
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(c) references therein to ‘mortgage credit assets’ shall mean commercial mortgage credit assets;
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(d) references therein to ‘property assets’ shall mean commercial property;
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(e) except in section 38(7), references therein to a ‘register of mortgage covered securities business’ shall mean the register of commercial mortgage covered securities business;
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(f) except in sections 32(13)(a) and 41A(6)(a), references therein to ‘residential property’ shall mean commercial property;
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(g) references therein to ‘securitised mortgage credit assets’ shall mean securitised mortgage credit assets the related property assets of which comprise commercial property;
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(h) sections 32(13)(a), 33(5) and 40(2) shall not apply to designated commercial mortgage credit institutions;
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(i) where orders, regulations, regulatory notices or other notices may be made or given under section 4(3), 27(4) or (5), 30(2) or (15), 31(1), (4) or (5), 32(10) or (14), 35(9) or (9B), 38(4), (5) or (6), 39(2), 41(1), (3) or (5), 41A, 61(1), (2) or (3) or 91(2), (2A) or (3) in relation to designated mortgage credit institutions—
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(i) separate orders, regulations, regulatory notices or other notices, as the case may be, may be made in relation to designated commercial mortgage credit institutions, and
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(ii) orders, regulations, regulatory notices or other notices, as the case may be, may be made in relation to both designated commercial mortgage credit institutions and designated mortgage credit institutions;
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(j) where orders, regulations, regulatory notices or other notices, have been made under any provision of Chapter 1 or of section 4, 61 or 91 prior to the commencement of this Chapter, such orders, regulations, regulatory notices or other notices, as the case may be, shall not apply to designated commercial mortgage credit institutions;
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(k) where orders, regulations, regulatory notices or other notices are made under any provision of Chapter 1 or of section 4, 61 or 91 after the commencement of this Chapter, those orders, regulations, regulatory notices or other notices, as the case may be, shall not apply in relation to designated commercial mortgage credit institutions unless those orders, regulations, regulatory notices or other notices, as the case may be, expressly so provide;
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(l) in section 32(17), the reference to 103 per cent shall be amended to 110 per cent;
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(m) in sections 33(6)(b), 34(1), 39A(a) and 41A(2)(b) any reference to section 32(16) shall be amended to subsection (4) of this section; and
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(n) in sections 61 and 91 references to provisions of Chapter 1 shall be as such provisions are amended by this section.
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(2) If a designated commercial mortgage credit institution is also a designated mortgage credit institution or a designated public credit institution, the institution is required to keep its register of commercial mortgage covered securities business separate from, as applicable—
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(a) its register of mortgage covered securities business,
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(b) its register of public credit covered securities business.
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(3) A designated commercial mortgage credit institution shall include the following information in its annual financial statement, or in a document accompanying the statement, in respect of commercial mortgage credit assets that are recorded in the institution’s register of commercial mortgage covered securities business:
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(a) the number of commercial mortgage credit assets, as at the date to which the statement is made up, with the amounts of principal outstanding in respect of the related credits being specified in tranches of—
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(i) €2,500,000 or less,
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(ii) more than €2,500,000 but not more than €5,000,000,
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(iii) more than €5,000,000 but not more than €25,000,000,
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(iv) more than €25,000,000 but not more than €50,000,000, and
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(v) more than €50,000,000;
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(b) the geographical areas in which the related property assets are located and the number and percentage of those assets held in each of those areas;
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(c) whether or not any such commercial mortgage credit assets are non-performing as at that date, and if they are—
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(i) the number of those assets as at that date, and
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(ii) the total amount of principal outstanding in respect of those assets at that date;
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(d) whether or not any persons who owed money under commercial mortgage credit assets had, during the immediately preceding financial year of the institution (if any), defaulted in making payments in respect of those assets in excess of €25,000 so as to render them non-performing for the purposes of this Act at any time during that year, and if any such persons had defaulted, the number of those assets that were held in the cover assets pool at the date to which the financial statement for that year was made up;
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(e) the number of cases in which the institution has replaced commercial mortgage credit assets with other assets because those commercial mortgage credit assets were non-performing;
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(f) the total amount of interest in arrears in respect of such commercial mortgage credit assets that has not been written off at that date;
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(g) the total amount of payments of principal repaid and the total amount of interest paid in respect of such commercial mortgage credit assets; and
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(h) any other information prescribed by the regulations for the purposes of this subsection.
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(4) Section 32(15) as applied to designated commercial mortgage credit institutions and modified by subsection (1)(l) shall not preclude a designated commercial mortgage credit institution from giving a contractual undertaking in respect of the prudent market value of the cover assets pool being greater than the total of the nominal or principal amounts of the commercial mortgage covered securities which are in issue and secured on that pool where such undertaking requires a higher level of cover assets to be maintained in the pool than section 32(15) as so applied, or affect such an undertaking.”.
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