Cap. 345 Art. 39LAppointment of a special administrator.

(1) In the event of the insolvency or resolution of a credit institution issuing covered bonds, which is licensed in terms of the

Banking Act, 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, the competent authority may appoint a special administrator to ensure that the rights and interests of the covered bonds investors are preserved, including at least by verifying the continuous and sound management of the covered bond programme during the period of the resolution process:

Provided that, without prejudice to any other powers conferred on the competent authority under this Act or any other applicable law, the competent authority shall have the power to order the credit institution to pay the remuneration due to the special administrator, including all expenses that may have been incurred by such special administrator.

(2) The competent authority shall issue Covered Bonds Rules laying down the tasks and responsibilities of the special administrator at least in relation to:

(a) the discharge of the liabilities attached to the covered bonds;

(b) the management and realisation of cover assets, including their transfer together with covered bond liabilities to another credit institution issuing covered bonds;

(c) the legal transactions necessary for the proper administration of the cover pool, for the ongoing monitoring of the coverage of liabilities attached to the covered bonds, for the initiation of proceedings in order to bring assets back into the cover pool and for the transferral of the remaining assets to the insolvency estate of the credit institution which issued the covered bonds after all covered bond liabilities have been discharged:

Provided that for the purposes of paragraph (c), the special administrator shall be allowed to operate, in the case of the insolvency of the credit institution issuing the covered bonds, under the authorisation held by that credit institution, subject to the same operational requirements.

(3) The competent authority, the special administrator appointed in terms of sub-article (1) and the Resolution Committee shall, for the purposes of the insolvency or resolution process of the credit institution issuing covered bonds, coordinate and exchange information among each other.