S.L. 345.27 Art. 13Requirements for a cover pool liquidity buffer.

(1) A credit institution issuing covered bonds shall maintain at all times a cover pool liquidity buffer composed of liquid assets available to cover the net liquidity outflow of the covered bond programme. The cover pool liquidity buffer shall cover the maximum cumulative net liquidity outflow over the next 180 days.

(2) The cover pool liquidity buffer referred to in sub-regulation (1) shall consist of the following types of assets, segregated in accordance with regulation 9:

(a) assets qualifying as level 1, level 2A or level 2B assets pursuant to the applicable delegated regulation adopted pursuant to Article 460 of the CRR, that are valued in accordance with that delegated regulation, and are not issued by the credit institution issuing the covered bonds itself, its parent undertaking, other than a public sector entity that is not a credit institution, its subsidiary or another subsidiary of its parent undertaking or by a securitisation special purpose entity with which the credit institution has close links;

(b) short-term exposures to credit institutions that qualify for credit quality step 1 or 2, or short-term deposits to credit institutions that qualify for credit quality step 1, 2 or 3, in accordance with point (c) of Article 129(1) of the CRR:

Provided that, uncollateralised claims from exposures considered in default pursuant to Article 178 of the CRR shall not be used to contribute to the cover pool liquidity buffer.

(3) Where credit institutions issuing covered bonds are subject to liquidity requirements set out in other Union legal acts that result in an overlap with the cover pool liquidity buffer, the provisions of sub-regulations (1) and (2) shall not be applicable for the period provided for in those Union legal acts, and until such time that an amendment to those Union legal acts to eliminate the overlap becomes applicable. The competent authority shall inform the European Commission and the EBA of this provision.

(4) Without prejudice to regulation 14, the calculation of the principal for extendable maturity structures may be based on the final maturity date in accordance with the contractual terms and conditions of the covered bond.