S.L. 345.27 Art. 2Interpretation. 

(1) In these regulations, unless the context otherwise requires:

"the Act" means the Financial Markets Act;

"collateral assets" means physical assets and assets in the form of exposures that secure cover assets;

"cover assets" means assets included in a cover pool;

"cover pool" means a clearly defined set of assets securing the payment obligations attached to covered bonds that are segregated from other assets held by the credit institution issuing the covered bonds;

"covered bond" means a debt obligation that is issued by a credit institution in accordance with the provisions of the Act, these regulations, regulations 68(7) and 108(1) of the Recovery and Resolution Regulations, and of any Covered Bonds Rules issued under the Act or under these regulations, and that is secured by cover assets to which covered bond investors have direct recourse as preferred creditors;

"covered bond programme" means the structural features of a covered bonds issue that are determined by the provisions of the Act, these regulations, any Covered Bonds Rules issued under the Act and under these regulations, the provisions of the

Recovery and Resolution Regulations transposing the CBD and by contractual terms and conditions, in accordance with the approval granted to the credit institution issuing the covered bonds; "covered bond public supervision" means the supervision of covered bond programmes ensuring compliance with, and the enforcement of, the requirements applicable to the issue of covered bonds;

"credit institution" means a credit institution as defined in point (1) of Article 4(1) of the CRR;

"Directive 2009/65/EC" means Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), as amended from time to time, and includes any implementing measures that have been or may be issued thereunder;

"director" shall have the same meaning as that assigned to it in article 2(1) of the Banking Act;

"the EBA" means the European Banking Authority established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC, as amended from time to time;

"extendable maturity structure" means a mechanism which provides for the possibility of extending the scheduled maturity of covered bonds for a pre-determined period of time and in the event that a specific trigger occurs;

"group" means a group as defined in point (138) of Article 4(1) of the CRR;

"Investment Services Rules" means Rules issued by the competent authority under the Investment Services Act;

"market value" means, for the purposes of immovable property, market value as defined in point (76) of Article 4(1) of the CRR;

"match funding requirements" means rules requiring that the cash flows between liabilities and assets falling due, be matched by ensuring in contractual terms and conditions that payments from borrowers and counterparties of derivative contracts fall due before payments are made to covered bond investors and to the counterparties of derivative contracts, that the amounts received are at least equal in value to the payments to be made to covered bond investors and to counterparties of derivative contracts, and that the amounts received from borrowers and counterparties of derivative contracts are included in the cover pool in accordance with regulation 13(2) until the payments become due to the covered bond investors and counterparties of derivative contracts;

"mortgage lending value" means, for the purposes of immovable property, the mortgage lending value as defined in point (74) of Article 4(1) of the CRR;

"net liquidity outflow" means all payment outflows falling due on one day, including principal and interest payments and payments under derivative contracts of the covered bond programme, net of all payment inflows falling due on the same day for claims related to the cover assets;

"overcollateralisation" means the entirety of the statutory, contractual or voluntary level of collateral that exceeds the coverage requirement set out in regulation 12;

"primary assets" means dominant cover assets that determine the nature of the cover pool;

"public undertakings" means public undertakings as defined in point (b) of Article 2 of Commission Directive 2006/ 111/EC on the transparency of financial relations between Member States and public undertakings as well as on financial transparency within certain undertakings, as amended from time to time;

"resolution" shall have the same meaning as that assigned to it in regulation 2(1) of the Recovery and Resolution

Regulations;

"segregation" means the actions performed by a credit institution issuing covered bonds to identify cover assets and put them legally beyond the reach of creditors other than covered bond investors and counterparties of derivative contracts;

"special administrator" means the person or entity appointed to administrate a covered bond programme in the event of the insolvency of a credit institution issuing covered bonds under that programme, or when such credit institution has been determined to be failing or likely to fail pursuant to regulation 32(1) of the Recovery and Resolution Regulations or, in exceptional circumstances, where the competent authority determines that the proper functioning of that credit institution is seriously at risk;

"specialised mortgage credit institution" means a credit institution which funds loans solely or mainly through the issue of covered bonds, which is permitted by law only to carry out mortgage and public sector lending and which is not permitted to take deposits, but which takes other repayable funds from the public;

"substitution assets" means cover assets that contribute to the coverage requirements, other than primary assets.

(2) Words and expressions used in these regulations which are also used in the Act but which are not defined herein, shall have the same meaning assigned to them in the Act.