What is Act No. 307 / 2018 Coll.?

Act No. 307 / 2018 Coll., amending Act No. 190 / 2004 Coll., on Bonds, as amended, and other related laws — Act amending Act No. 190 / 2004 Coll., on Bonds, as amended, and other related laws.

When it became Act No. 307 / 2018 Coll. effectiveness?

Act No. 307 / 2018 Coll. became effective 04.01.2019.

Is Act No. 307 / 2018 Coll. still valid?

Yes, Act No. 307 / 2018 Coll. is still valid and effective.

Act No. 307 / 2018 Coll. - Act amending Act No. 190 / 2004 Coll., o...

307

THE LAW

of 4 December 2018

amending Act No. 190 / 2004 Coll., on Bonds, as amended, and other related laws

Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

Amendment of the bond law

Čl. I

Act No. 190 / 2004 Coll., on Bonds, as amended by Act No. 378 / 2005 Coll., Act No. 56 / 2006 Coll., Act No. 57 / 2006 Coll., Act No. 296 / 2007 Coll., Act No. 230 / 2008 Coll., Act No. 227 / 2009 Coll., Act No. 172 / 2012 Coll., Act No. 227 / 2013 Coll., Act No. 303 / 2013 Coll., Act No. 137 / 2014 Coll. and Act No. 183 / 2017 Coll., is amended as follows:

1. At the end of the text of § 1, the words "including the procedure for the issue of similar securities and book-entry securities with which the right to repayment of the amount due is attached 'are added.

2. In Paragraph 2 (1), the words "issued under Czech law 'are deleted.

3. In Article 2 (3), the words "A paper bond 'are replaced by the words" A bond which is not a book-entry paper or an immobilized security (hereinafter referred to as a paper bond)'.

4. In the first sentence of Article 2 (4), the words "the same moment 'are replaced by the words" the same date'.

5. In the second sentence of Article 2 (4), the words "and book-entry securities' are deleted.

6. In Article 4 (1), the second sentence is replaced by the following: "The list of holders of bonds which are book-entry securities or immobilized securities (hereinafter referred to as" book-entry bonds ") shall be kept by the person responsible for the registration of investment instruments."

7. In Paragraph 4 (1), the last sentence is deleted.

8. In the first sentence of Article 4 (2), the words "the entry on the list referred to in paragraph 1 of the first sentence of the change of ownership; the issuer makes this entry 'is replaced by' the submission of a bond with a continuous series of rupees or other evidence that the relevant person is the owner of the bond; the issuer shall enter the change of owner in the list referred to in paragraph 1, first sentence '.

9. In Paragraph 4 (2), the second sentence is deleted.

10. in Article 6 (1) (a), the words "mortgage liens" are replaced by "covered bonds."

11. in Article 6 (1) (d), the words'; this is not required in the case of a collection bond if the nominal value of the entry in the relevant register 'are deleted.

12. in Article 6 (1) (e), the word "lower" shall be deleted;

13. in Article 6 (1), at the end of the text of point (f), the words "or, as the case may be, information that the amount due is to be repaid by instalments," shall be added.

14. in Article 6 (1) (g), (h) and (i), the words "a bond issued as a book-entry security or collection bond" shall be replaced by "a book-entry bond";

15. in Paragraph 6 (2), "book-entry bonds" is replaced by "investment vehicles."

16. in Article 6 (4), "book-entry securities" is replaced by "investment vehicles."

17. in Article 7 (3), the words "or collection bonds" shall be deleted and the words "authorised to keep records" shall be replaced by the words "leading the relevant registration of investment vehicles."

18. in Article 7 (4), the words "and (c)" shall be replaced by the words "or (c)" and the words "authorised to keep their records" shall be replaced by the words "leading to the relevant registration of investment vehicles."

19. in Article 9 (1) (b), the words "or book-entry bond" are replaced by the words "bond, immobilized security or book-entry security."

20. In Paragraph 9 (1) (d), the words "and in the event that the emission rate is determined by the auction rate," shall be deleted.

21. In Paragraph 9 (1), the words "including, where appropriate, information on the date of payment and the amount of individual instalments, if the amount due is to be repaid by instalments," shall be added at the end of the text in point (g).

22. in Article 9 (1) (j), the words "and book-entry securities" shall be deleted;

23. in Article 9 (1) (k), the words "as well as the owners of the shares in the collection bond" shall be deleted;

24. in Article 9 (2) (b), the words "and the possible extent of the increase in the total nominal value of bond issuance" shall be deleted;

25. in Paragraph 9 (2) (c), the word "lower" shall be deleted;

26. in Article 9 (2), the words "including, where appropriate, the information referred to in Article 20" shall be added at the end of the text of point (e).

27. in Article 9 (2) (j), the words "and collection bonds" shall be deleted;

28. in Article 9 (2) (o) and (p), the words "issued as book-entry bonds" shall be replaced by "book-entry bonds."

29. In Article 9, at the end of paragraph 2, the dot is replaced by a comma and the following point (r) is added:

"(r) in the case of a subordinated bond, the determination of a different order of satisfaction of subordinated debt claims, including in relation to the satisfaction of other claims, including claims on other subordinated bonds, or differently in relation to a claim corresponding to the right to repayment of the bond and other rights related to the bond.";

30. In Article 15 (4), the words "registration under a specific law 'are replaced by the words" relevant registration of investment vehicles' and the words "by this law or other law, as the case may be, 'are replaced by' law '.

31. in Article 16 (b), the word "lower" shall be deleted;

32. In Article 18 (2), the words "or collection bond 'are deleted and the words" investment instruments' are added at the end of the text of paragraph 2.

33. in Paragraph 18 (4) of the introductory part of the provision, the words "and book-entry securities" shall be deleted;

34. in Paragraph 18 (4) (c), the word "for" shall be deleted;

35. in Paragraph 18 (5) of the introductory part of the provision, the words "authorised to keep a register" are replaced by the words "leading the relevant registration of investment vehicles."

36. In Article 19, at the end of paragraph 2, the sentence "The terms and conditions of the issue may be determined that, on early repayment of the bonds, the full amount due corresponding to the nominal value may not be repaid if the holder of the bond is repaid at least at the emission rate paid by him. '

37. in Part One, the following Title V is inserted after Title IV:

„HLAVA V

INSURANCE AGENT

§ 20

Security of the bond and agent for collateral

(1) The repayment of the bond and the payment of the bond yield and other debt related to each bond issue may also be ensured by the establishment of a lien or other collateral for the benefit of the holders of the bonds and, where appropriate, by other persons listed in the terms of the issue (hereinafter referred to as "beneficiaries") on the basis of a written contract concluded between the collateral agent as collateral creditor or receiver of another collateral and the issuer or other collateral provider. Such secured claims may be contingent claims or claims to be incurred in the future, as well as claims of a kind arising at a certain time or various claims arising from the same legal ground. In relation to one bond issue, only one agent can be established for collateral.

(2) The security agent shall exercise the rights of the creditor, the lien creditor or any other collateral recipient on its own behalf for the benefit of the beneficiaries; This shall also apply in the case of insolvency proceedings, enforcement of decisions or execution concerning a pledge or other collateral provider or their assets. The transactions obtained from reinsurance (hereinafter referred to as "received transactions') belong to the beneficiaries in proportion to the ratio determined in the emission conditions; where the security agent is a bank or a securities dealer, the performance obtained shall be considered to be the property of the customer under the Capital Market Act.

(3) The emission conditions of bonds secured pursuant to paragraph 1 shall include the data necessary to identify and designate an agent as collateral. Where an issuer fails to make the contract referred to in paragraph 1 or at least a substantial part thereof available to investors in the same way as the emission conditions, the emission conditions of the bonds secured pursuant to paragraph 1 shall contain at least a description of the rights and obligations of the agent for collateral.

(4) Where other legislation or conduct requires data on a lien or secured debt, the data necessary to identify the agent for the hedge shall be provided, an indication identifying the bond, and identification of the secured debt at least by reference to the contract referred to in paragraph 1 or any other document.

(5) The contract referred to in paragraph 1 shall adjust the terms and procedure for the change in the agent's reinsurance agent.

(6) By changing the person of the agent to ensure the rights and obligations of the agent to ensure that the agent is fully transferred to the new agent to ensure it. A document evidencing the legal fact on the basis of which the change occurred in the person of the reinsurance agent shall be the basis for the entry of the change in the person of the reinsurance agent in the public list or public register; the application for registration is also entitled to be submitted by a new agent for collateral.

§ 20a

Rights and obligations of the agent for reinsurance

(1) The security agent shall always be bound by the decision of the bondholders referred to in Article 20 (1) adopted at the owners' meeting by at least a simple majority of votes on how to exercise the rights of the respective bond issue in relation to the lien or other collateral referred to in Article 20 (1).

(2) If the owners' meeting decides to change in the person of the reinsurance agent, the rights and obligations shall pass from the contract referred to in Article 20 (1) and the emission conditions to the new reinsurance agent.

(3) The agent shall make available to the authorised persons, without undue delay, relevant information concerning the lien or other collateral referred to in Article 20 (1), in particular information on the possible exercise of the lien or other collateral.

(4) The agent shall carry out his activities with professional care, in particular acting in a qualified, fair and fair manner and in the best interests of the bondholders under Article 20 (1).

(5) The reinsurance agent is entitled to:

(a) to exercise for the benefit of beneficiaries all rights attaching to the lien or other collateral;

(b) check by the issuer, in connection with the lien or other provision of compliance with the emission conditions;

(c) to act for the benefit of beneficiaries or otherwise to protect their interests in the context of lien or other collateral.

(6) When exercising the rights referred to in paragraph 5, the security agent shall be treated as being the creditor of any secured claim.

(7) To the extent that it exercises the collateral rights associated with the security bond agent, the holders of bonds under Paragraph 20 (1) may not exercise such rights separately; This is without prejudice to the right of those bond holders to decide on a change in the person of the hedging agent.

(8) The provisions of the Civil Code on the management of foreign property are not applicable to the agent for collateral. "

Head V shall be referred to as Title VI.

38. in Article 21 (1) (b) and (c):

"(b) termination of the agent's activities for reinsurance in accordance with the contract referred to in Article 20 (1);

(c) a requirement for a change in the person of the security agent by the holders of bonds whose nominal value represents at least 5% of the total nominal value of the bond issue concerned; ';

39. in Paragraph 21 (1), points (d) to (f) are deleted;

Point (g) shall be renumbered as point (d).

40. in Paragraph 21 (1) (d), the word "amendments" is replaced by "situations."

41.Paragraph 21 (2) reads as follows:

"(2) In the case referred to in paragraph 1 (b) or (c), in the absence of a meeting of the owners of the issuers, or where emission conditions so provide, the meeting of the owners shall be convened without undue delay by the reinsurance agent. The meeting of owners shall also be entitled to convene the owner of the bond, where the issuer has infringed its obligation under paragraph 1, or where there is another case governed by emission conditions, unless the hedge agent has called a meeting of owners in accordance with the first sentence. ';

42. In Article 21, the following paragraph 3 is inserted after paragraph 2:

"(3) The contract referred to in Article 20 (1) shall adjust the change procedure in the reinsurance agent as a result of the decision of the owners meeting convened on the grounds referred to in paragraph 1 (c)."

Paragraphs 3 to 7 shall be renumbered paragraphs 4 to 8.

43. In Paragraph 21, at the end of paragraph 4, the sentence "The security agent shall be obliged to attend a meeting of owners convened for the reason set out in Paragraph 21 (1) (b) or (c) or under emission conditions."

44. Paragraph 21 (5) is deleted.

Paragraphs 6 to 8 shall become paragraphs 5 to 7.

45. in Article 21 (5), the words "authorised to keep records" are replaced by the words "leading to the relevant registration of investment vehicles."

46. Paragraph 21 (6) and (7) are deleted.

47. In the first sentence of Paragraph 21a (1), the words "and for the holders of shares in a collection bond" shall be deleted.

48. in Paragraph 22 (3) (b), the words "and book-entry securities" shall be deleted;

49. In Paragraph 23 (1), at the end of the last sentence, the words "unless the emission conditions are otherwise determined 'shall be added.

50. In the second sentence of Article 23 (5) and in the first sentence of Article 23 (6), the word "lower 'and the text" [Paragraph 16 (b)]' shall be deleted.

51. in the fourth sentence of Paragraph 23 (5), the word "premature" shall be inserted after the word "on."

52. In the first sentence of Paragraph 23 (6), "(g) 'is replaced by" (d)'.

53. In Article 23 (6), the second sentence is replaced by the following: "Applications for early repayment shall be submitted within 30 days of the publication of the order of the owners' meeting or joint meeting of the owners referred to in paragraph 7. '.

54. In Paragraph 23, the following sentence is added at the end of paragraph 6: "At the end of this period, the right to early repayment shall cease. The issuer shall pay this amount within 30 days of receipt of the request in a manner and on the spot which determines the emission conditions for the repayment of the bond. ';

55.

„§ 24

Common representative of bond holders

(1) In relation to each bond issue, a joint representative of all bondholders of that issue may be established (hereinafter the "joint agent ') on the basis of a written contract concluded not later than the date of issue of the bonds between the joint agent and the issuer. For these purposes, a joint representative shall be treated as being the creditor of each claim of each holder of a bond. The appointment or change in the person of the joint representative may be decided at any time by the owners' meetings.

(2) Unless otherwise provided for in the contract referred to in paragraph 1, the joint representative shall, in addition to the rights referred to in paragraph 8, also exercise all the rights of the agent for reinsurance pursuant to paragraphs 20 and 20a, unless the agent for reinsurance is designated by a person different from the joint representative. If a joint agent exercises the rights of the agent for reinsurance, he shall also perform the obligations of the agent for reinsurance under § 20 and 20a.

(3) If the meeting of owners decides to appoint or change in the person of the joint representative, the issuer is bound by this decision.

(4) The Joint Representative shall act with professional care, in particular acting in a qualified, fair and fair manner and in the best interests of the bondholders. The joint representative shall exercise all the rights of the creditor in accordance with the terms of issue or contract referred to in paragraph 1 on his own behalf for the benefit of the bondholders; This is also the case after the appointment of the compulsory trustee of covered bonds (Section 32a (1)) and in the event of insolvency proceedings, enforcement or execution concerning the issuer of bonds or its assets.

(5) The terms and conditions or decisions of the owners' meeting must include the information necessary to identify the joint agent of the bondholders and their designation as joint representative. Where an issuer fails to make the contract referred to in paragraph 1 or at least a substantial part thereof available to investors in the same way as the emission conditions, the emission conditions shall contain at least a description of the rights and obligations of the joint representative.

(6) The Joint Representative shall always be bound by the decision of the bondholders taken at the meeting of the owners by at least a simple majority of votes on how to exercise the rights of the respective bond issue.

(7) The contract referred to in paragraph 1 or the emission conditions will adjust the conditions and procedure for the change in the person of the joint representative. Where a change is made in the person of the joint representative, the rights and obligations shall be transferred from the contract referred to in paragraph 1 and the emission conditions in full to the new joint representative.

(8) Unless otherwise provided for in the emission conditions or contract referred to in paragraph 1, the Joint Representative shall be entitled to:

(a) to exercise for the benefit of bondholders all rights attaching to bonds;

(b) to check compliance with the issuer's emission conditions;

(c) to act or otherwise to protect their interests for the benefit of bondholders.

(9) When exercising the authorisation referred to in paragraph 8, a joint representative shall be treated as being the creditor of any claim by each bond holder. In so far as it exercises the rights attaching to bonds by a joint agent, the holders of bonds may not exercise such rights separately; This shall be without prejudice to the right of bondholders to decide on a change in the person of the joint representative. ';

56. in Article 25 (2) (a) and (b), "special" is replaced by "other."

57. in Article 25 (3), the word "special" shall be deleted;

58. In Paragraph 25 (4), the words "draft specific 'are replaced by the words" government proposal of another' and the word "other 'is inserted after the word" by this'.

59. In the second sentence of Article 25 (5), "6 months' is replaced by" 1 year '.

60. In the first and second sentences of Paragraph 26 (4), the words "put up for sale 'are replaced by the words" sell'; in the second sentence, the words "special 'are replaced by the words" other'.

61. In Paragraph 26 (5), the words "State debt by title" are deleted.

62. In the second sentence of Article 27 (1), the word "word 'is replaced by" designation' and the word "security 'is replaced by" bond'.

63. In the second sentence of Paragraph 27 (4), the words "implementing legislation 'are replaced by the words" Ministry of Justice'.

64. In Part Two of Title III, the heading reads: "COVERED DOUBTS '.

65. In Part Two, Title III, the title of Part 1, including the title, is inserted above the designation of Section 28:

„Díl 1

Requirements for covered bonds and their issuer '.

66. The heading "Covered bond 'is inserted under the title of Section 28.

67. Paragraph 28 (1) to (3) reads as follows:

"(1) A covered bond is a bond or similar security representing the right to repayment of a debt amount issued under the law of a foreign State whose issuer is a bank and which at the date of issue meets the requirements of Paragraph 28a (1) and (2).

(2) A covered bond may be a mortgage bond (Section 28b (1)), a public bond (Section 28b (2)), or a mixed bond (Section 28b (3)).

(3) Mortgage credit is a loan which is at least partially secured by a mortgage on immovable property, from the date on which the legal effects of the lien arise. The mortgage credit claim may only be entered in the cover asset register [Paragraph 32 (3) (a)] on the date on which the covered bond issuer becomes aware of the legal effects of the lien on the property. '

68. Paragraph 28 (5) reads as follows:

"(5) In relation to covered bonds which are issued under the law of a foreign State, this law means:

(a) by the terms of the issue of a document under the law of that foreign State comparable to the terms of the issue, or by a contract under the law of that foreign State comparable to those of that State; and

(b) a common representative of a person under the law of that foreign State in a comparable position with the common representative; that person shall be deemed to have similar privileges as a joint representative under this Act. ';

69. After Paragraph 28, the following Sections 28a to 28d are inserted:

„§ 28a

Rules for the cover portfolio

(1) The aggregate value of all the cover assets (Section 30a) in the cover portfolio (Section 30c (1)) must be equal to at least 102% of the aggregate value of all the debts covered by the cover portfolio (Section 31a (1)) and which form a covered block with it, unless the emission conditions set a higher limit. In carrying out the obligation under the first sentence, cover assets, with the exception of derivatives, shall be expressed at their nominal value, and derivatives in the covered block shall be expressed at their fair value according to the international accounting standards as amended by Commission Regulation (EC) No 1126 / 2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606 / 2002 of the European Parliament and of the Council, as amended;

(a) for the issuer of covered bonds, the positive fair value of the derivatives shall be taken into account in the cover portfolio only up to the amount of collateral received for derivatives in the form of funds or goods referred to in Article 31 (2) (b) or (c) which is part of the covered block; and

(b) for the issuer of covered bonds, the negative fair value of derivatives in the covered portfolio shall not be taken into account and the negative fair value of derivatives shall enter into the covered block as a debt to which the cover portfolio serves [Paragraph 31a (4) (e)], unless the issuer has provided the other counterparty with collateral of derivatives in the form of cash or goods pursuant to § 31 (2) (b) or (c), which is part of the covered block.

(2) The aggregate value of all the cover assets in the cover portfolio shall be at least 85% of the aggregate value of all the debts covered by the cover portfolio, unless the emission conditions set a higher limit. In carrying out the obligation under the first sentence, cover assets shall not be taken into account in accordance with Article 31 (2) (d) and (e) and Article 129 (1) (c) and Article 129 (2) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council.

(3) The nominal value of the mortgage credit claim in the cover portfolio must not exceed 100% of the mortgage value of the immovable property pledged (Paragraph 29), which serves to secure that claim, unless the emission conditions set a lower limit. To the extent that the mortgage credit claim exceeds that limit, it shall not be taken into account for the purposes of paragraphs 1 and 2.

(4) For the purposes of paragraphs 1 and 2, the nominal value of the mortgage credit claim in the cover portfolio in the event of default of the obligor in accordance with Article 178 of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council or, subject to more stringent conditions under emission conditions, shall be reduced by 100%.

§ 28b

Covered bond types

(1) The mortgage pledge is a covered bond whose emission conditions imply that the obligation under Article 28a (2) is only to be fulfilled using the cover assets referred to in Article 31 (2) (a) or Article 129 (1) (d) to (f) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648 / 2012. Only mortgage liens may contain the designation "mortgage liens" in their name. Mortgage certificates may contain in their name a corresponding indication in a foreign language in their meaning.

(2) The public guarantee note shall be a covered bond whose emission conditions imply that the obligation under Article 28a (2) is to be fulfilled only by using the cover assets referred to in Article 31 (2) (b) and (c) or under Article 129 (1) (a) and (b) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council.

(3) The mixed pledge note is a covered bond that is not a mortgage bond or a public security bond.

§ 28c

Obligation to comply with the rules for the cover portfolio

(1) The issuer of covered bonds will ensure compliance with the requirements of § 28a.

(2) The issuer of covered bonds that contain the designation "CFR" in their name ensures that the requirements in Article 129 of Regulation (EU) No 575 / 2013 are met in relation to those covered bonds. Only covered bonds that meet the requirements of Article 129 of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council may contain the designation "CFR 'in their name.

(3) The issuer of mortgage bonds ensures compliance with the requirement under Paragraph 28b (1) with respect to these covered bonds.

(4) The issuer of public mortgage bonds will ensure that the requirement under Article 28b (2) is met in relation to these covered bonds.

(5) As from the date of the appointment of the forced trustee of the covered blocks, neither the requirements under Sections 28a, 28b nor those under Article 129 of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council shall apply.

§ 28d

Covered block monitor

(1) A covered bond issuer may, by written contract, entrust another person as a covered block monitor with a check of the covered block and the related parts of the covered block registration.

(2) Where a contract referred to in paragraph 1 is concluded, the emission conditions or prospectus of covered bonds or covered bonds, the relevant part of which the issuer has made available to investors in the same way as the terms of issue or prospectus, shall include the information necessary to identify the covered block monitor.

(3) The document referred to in paragraph 2 may contain a description of the rights and obligations of the covered block monitor and the conditions for the proper performance of this activity.

(4) The contract referred to in paragraph 1 obliges the monitor of the covered block to make available to the holders of covered bonds, without undue delay, essential information on whether and how the issuer of covered bonds fulfils its obligations under § 28c.

(5) The covered block monitor shall carry out its activities with professional care, in particular acting in a qualified, fair and fair manner and in the best interests of the holders of covered bonds, in particular complying with the obligations set out in paragraph 4 and in the document referred to in paragraph 2. ';

70. Under Article 29, the heading "Pricing value of the immovable property stopped 'is inserted.

71. in Paragraph 29 (1), the words "mortgage bonds" are replaced by "covered bonds."

72. Under Article 30, the heading "Priority rights in respect of the immovable property stopped 'is inserted.

73.In Paragraph 30 (1):

"(1) A third party's lien may not be linked to the immovable property which would be in the same or priority order as the lien providing the mortgage credit claim entered in the cover pool register. The transfer of the immovable property stopped shall not be restricted by the previously resulting restrictions on the transfer of the immovable property. These conditions shall be fulfilled as long as the mortgage credit claim is entered in the cover asset register; the nominal value of the claim which does not meet this requirement is zero for the purposes of Paragraph 28a (1). ';

74. Paragraph 30 (2) is deleted.

Paragraphs 3 to 6 shall become paragraphs 2 to 5.

75. in Article 30 (2), the words "secured claim on a third party" shall be replaced by the words "secured debt" and the words "hers" shall be replaced by "his."

76. In Paragraph 30, paragraphs 3 to 5 are deleted.

77. The following Sections 30a to 30d are inserted after Section 30:

„§ 30a

Covered assets

The case referred to in § 31 (1) and (2) and registered as cover assets is a cover asset.

§ 30b

Rules for the register of cover assets

(1) After the appointment of the forced trustee of the covered bonds, the case may be entered in the cover asset register only with the prior consent of the covered bond holders. Minutes made without such prior consent shall not be taken into account.

(2) The issuer of covered bonds must delete from the cover asset register the case which, after its registration, ceased to be the case referred to in Article 31 (1) or (2). The forced bloc administrator does not have this obligation.

(3) The issuer of covered bonds and the forced administrator of covered bonds need not remove any item from the cover asset register, even if the aggregate value of all covered assets within one cover portfolio exceeds the limit of 102% of the aggregate value of all debts covered by that cover portfolio.

(4) If the aggregate value of all the cover assets within one covered portfolio exceeds the limit of 102% of the aggregate value of all the debts covered by that cover portfolio after the appointment of the obliged covered block manager, the obliged covered block manager may, with the consent of the covered bond holders, delete one of the items from the cover pool register.

(5) If, following the appointment of a forced covered block manager to repay all the debts for which the cover portfolio is used, the forced covered block manager shall cease to exercise full management of the covered block without undue delay and shall ensure that the items remaining in the cover portfolio cease to be registered as part of that cover portfolio.

§ 30c

Cover portfolio

(1) The cover portfolio is an evidently separate part of the assets of the issuer of covered bonds consisting of items entered in the register of cover assets and items referred to in Article 31 (4), which serve to cover debts pursuant to Article 31a.

(2) The issuer of covered bonds shall, at its discretion, create one or more covered portfolios.

(3) The creation of a cover portfolio shall take place by entering at least one item in the cover asset register separately from other items already included in the cover asset register and identifying the debts to be covered by that cover portfolio, at least in the register referred to in Article 32 (3) (c). The determination of debts shall not be required if the issuer of covered bonds has created only one cover portfolio; in that case, the cover portfolio serves to cover the debts of all covered bonds issued by that issuer in circulation.

Citation	Act No. 307 / 2018 Coll., amending Act No. 190 / 2004 Coll., on Bonds, as amended, and other related laws
Regulation Type	Law
Author	-
Collection	Code of Laws

Date of Promulgation	20.12.2018
Effective from	04.01.2019
Effective until	-
Status	Valid

Act No. 307 / 2018 Coll.

Act amending Act No. 190 / 2004 Coll., on Bonds, as amended, and other related laws

Contents