S.L. 345.27 Art. 6Joint funding.    S.L. 459.01.

(1) Eligible cover assets which were originated by a credit institution and have been purchased by a credit institution issuing covered bonds may be used as cover assets for the issue of covered bonds:

Provided that in the event of such purchases, the credit institution purchasing the eligible cover assets shall ensure that the requirements of regulations 3 and 9 are satisfied.

(2) Without prejudice to the proviso to sub-regulation (1), transfers by way of financial collateral arrangement pursuant to the

Financial Collateral Arrangements Regulations shall be allowed.

(3) Without prejudice to the proviso to sub-regulation (1), credit institutions may also use as cover assets, assets which were originated by an undertaking that is not a credit institution:

Provided that, the credit institution issuing the covered bonds shall either assess the credit-granting standards of the undertaking which originated the cover assets, or performs itself a thorough assessment of the borrower"s creditworthiness.