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Investor Presentaiton

CAJA RURAL DE NAVARRA Royal Decree-Law 24/2021 Key Takeaways • 5/7 COVERED BOND PROGRAMME Common principles It harmonises the different criteria and conditions of issuance of Covered Bonds by credit institutions. Specifies the rules applicable in case of insolvency or resolution, in which the cover pool will be segregated from the company balance sheet to repay bondholders. • • Obligations Establishing a cover pool consisting of assets subject to strict eligibility criteria is mandatory. The total value of the liabilities must be covered by the value of the credit rights on the assets integrating the pool. Having a liquidity buffer of assets of high liquidity to cover the net outflows from the Covered Bond program in the following 180 days. • Valuation Every asset has to go through a validation procedure ahead of being added to the pool and the value should be updated periodically. • Issuers Supervision have to appoint either an external or internal cover pool monitor for each cover pool, dependant on administrative authorisation and registration by Bank of Spain. The programs and the cover pool monitors are also under public supervision by Bank of Spain. A specific Sanctions Regime is created to provide the supervisor the capacity to react to possible infringements of the regulatory provisions. Caja Rural de Navarra Investor Presentation | 31
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