Asset Covered Securities Act, 2001

When designated credit institution becomes potentially insolvent.

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

(a) if a petition for the appointment of an examiner is presented in relation to the institution under the Companies (Amendment) Act, 1990 ;

(b) if a petition is presented, or an effective resolution is passed, for the appointment of a liquidator in relation to the institution;

(c) if a receiver over any assets of the institution is appointed;

(d) 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 10 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).