S.L. 345.27 Art. 14Conditions for extendable maturitystructures.     S.L. 330.09.   Cap. 345.

(1) Credit institutions may issue covered bonds with extendable maturity structures where investor protection is ensured by at least the following:

(a) the maturity can only be extended subject to objective triggers, and not at the discretion of the credit institution issuing the covered bonds;

(b) the maturity extension triggers are specified in the contractual terms and conditions of the covered bond;

(c) the information provided to investors about the maturity structure is sufficient to enable them to determine the risk of the covered bond, and includes a detailed description of:

(i) the maturity extension triggers;

(ii) the consequences for a maturity extension of the insolvency or resolution of the credit institution issuing the covered bonds;

(iii) the role of the competent authority and, where relevant, of the special administrator with regard to the maturity extension;

(d) the final maturity date of the covered bond is at all times determinable;

(e) in the event of the insolvency or resolution of the credit institution issuing the covered bonds, maturity extensions do not affect the ranking of covered bond investors or invert the sequencing of the covered bond programme"s original maturity schedule;

(f) the maturity extension does not change the structural features of the covered bonds regarding dual recourse in terms of article 31I(1) of the Act and regulation 108(1) of the Recovery and Resolution Regulations, and bankruptcy remoteness as referred to in regulation 68(7) of the Recovery and Resolution Regulations:

Provided that, the competent authority shall issue

Covered Bonds Rules specifying the objective triggers referred to in this sub-regulation:

Provided further that, covered bonds with extendable maturity structures may only be issued by the special administrator referred to in Article 39L of the Act and subject to the objective triggers specified in Covered Bonds Rules.

(2) The competent authority shall notify the EBA of this provision.