Investor Presentaiton
Covered Bonds repayment in case of issuer bankruptcy
Coverage and liquidity tests performs initially 3 months after insolvency and subsequently every 3 months - liquidity test and
6 months coverage test
Legal basis
The Bankruptcy Law of
February 28, 2003,
Bankruptcy
proceedings for
mortgage banks, Article
442-450a, as amended
The Act on Covered
Bonds and Mortgage
Banks of August 29,
1997 as amended
Terms and conditions of
each series of mortgage
covered bond
Coverage test*
passed
Liquidity test*
passed
Covered bonds repaid according
to terms and conditions of the
covered bonds, with 12 M
maturity extension
2/3 majority covered
bondholders may adopt a
resolution to sell the separate
bankruptcy asset pool to
another bank
Coverage test
passed
Liquidity test
failed
or
Coverage test
failed
Maturity of outstanding covered bonds
Extended to longest dated cover asset maturity plus 3Y, distinct rules
for pro-rata repayment before extended maturity date (fixed to
floating)
2/3 majority covered bondholders may adopt a resolution to
disapply maturity extension or
•
•
sell cover assets to another bank or non-bank
Soft bullet
Covered Bonds Investor Presentation
Pass through
*details on the next slides
51View entire presentation