S.L. 345.27 Art. 9Segregation of cover assets.        S.L. 330.09.

(1) The competent authority shall issue Covered Bonds

Rules regulating the segregation of cover assets. Such Rules shall include at least the following requirements:

(a) the requirement for all cover assets, to be identifiable by the credit institution issuing the covered bonds at all times;

(b) the requirement for all cover assets to be subject to legally binding and enforceable segregation by the credit institution issuing the covered bonds; and

(c) the requirement for all cover assets to be protected from any third party claims and for no cover asset to form part of the insolvency estate of the credit institution issuing the covered bonds until the privileged claim referred to in article

31I(1)(b) of the Act and in regulation 108(1) of the Recovery and Resolution Regulations has been satisfied:

Provided that, for the purposes of this sub-regulation, cover assets shall include any collateral received in connection with derivative contract positions.

(2) The segregation of cover assets referred to in sub-regulation (1) shall also apply in the case of insolvency or resolution of the credit institution issuing covered bonds.