S.L. 330.9 Art. 45AExemption from the minimum requirement for own funds and eligible liabilities.

(1)Notwithstanding regulation 45, the Resolution

Committee shall exempt from the requirement laid down in regulation 45(1) mortgage credit institutions financed by covered bonds which are not allowed to receive deposits under Maltese law, provided that all of the following conditions are met:

(a) the mortgage credit institutions will be wound up in national insolvency proceedings or in other types of proceedings laid down for those institutions and implemented in accordance with regulations 38, 40 or 42; and

(b) the proceedings referred to in paragraph (a), ensure that creditors of those institutions, including holders of covered bonds, where relevant, bear losses in a way that achieves the resolution objectives.

(2) Institutions exempt from the requirement laid down in regulation 45(1) shall not form part of the consolidation referred to in regulation 45E(1).