Asset Covered Securities Act, 2001

When designated credit institution becomes insolvent.

7.—A designated credit institution becomes insolvent for the purposes of this Act in any of the following circumstances:

(a) if the appointment of an examiner in respect of the institution under the Companies (Amendment) Act, 1990 , is not terminated or stayed within 30 days after the date of the appointment;

(b) if the appointment of a liquidator in respect of the institution is not terminated or stayed within 30 days after the date of the appointment;

(c) if the appointment of a receiver over any part of the property or undertaking of the institution is not terminated or stayed within 30 days after the date of the appointment;

(d) if the institution is a company and the company is deemed to be unable to pay its debts as provided by—

(i) section 2(3)(a) or (b) of the Companies (Amendment) Act, 1990 , or

(ii) section 214(b) or (c) of the Companies Act, 1963 ;

(e) if the institution is a building society and the High Court makes an order under section 109 of the Building Societies Act, 1989 , directing the society to be wound up on the ground that it is unable to pay its debts;

(f) if the institution is the holder of a licence issued under section 9 of the Central Bank Act, 1971 , and—

(i) the institution is deemed to be unable to meet its obligations under section 28(1) of that Act, or

(ii) the institution is deemed to have committed an act of bankruptcy or to be unable to pay its debts under section 29(4) of that Act;

(g) if the institution has, in relation to an asset covered security that it has issued, failed to pay an amount payable in respect of the security within 30 days after the amount fell due (unless the failure is attributable to administrative difficulties arising from circumstances that are outside the control of the institution).