S.L. 330.9 Art. 79Protection for structured finance arrangements and covered bonds.

(1) Structured finance arrangements including arrangements referred to in regulation 76(2)(e) and (f) shall be appropriately protected so as to prevent either of the following:

(a) the transfer of some, but not all, of the assets, rights and liabilities which constitute or form part of a structured finance arrangement, including arrangements referred to in regulation 76(2)(e) and (f), to which the institution under resolution is a party;

(b) the termination or modification through the use of ancillary powers of the assets, rights and liabilities which constitute or form part of a structured finance arrangement, including arrangements referred to in regulation 76(2)(e) and (f), to which the institution under resolution is a party.

(2) Notwithstanding sub-regulation (1), where necessary in order to ensure availability of the covered deposits, the Resolution Committee may:

(a) transfer covered deposits which are part of any of the arrangements mentioned in sub-regulation (1) without transferring other assets, rights or liabilities that are part of the same arrangement, and

(b) transfer, modify or terminate those assets, rights or liabilities without transferring the covered deposits.

(3) The Authority shall co-operate with the Resolution Committee in the event of the resolution of a credit institution issuing covered bonds in order to ensure that the rights and interests of the covered bond investors are preserved, including at least by verifying the continuous and sound management of the covered bond programme during the period of the resolution process.