S.L. 345.27 Art. 4Collateral assets located outside the Union.

(1) Credit institutions issuing covered bonds may include assets in the cover pool which are secured by collateral assets located outside the Union provided that such credit institutions verify that such collateral assets meet all the requirements set out in regulation 3.

(2) Collateral assets located outside the Union shall offer a level of security similar to that of collateral assets located in the Union and the realisation of such collateral assets shall be legally enforceable in a manner which is equivalent in effect to the realisation of collateral assets located in the Union.

(3) The competent authority may issue Covered Bonds Rules for the purposes of carrying into effect and, or implementing the provisions of this regulation and, without prejudice to the generality of the foregoing, such Covered Bonds Rules may lay down the requirements and conditions relating to the inclusion of assets in the cover pool that are secured by collateral assets located outside the Union.