| 1) |
Conditions relating to non-compliance by a bank or banking group |
| a) |
When a bank acting as an originator, a remote originator or a repackager in the execution of a traditional or synthetic securitisation scheme does not comply with any of the conditions specified in this Schedule- |
| ii) |
the risk transferred by such an institution in terms of a synthetic securitisation scheme shall for purposes of the calculation of the bank's capital requirement be reported as if the bank had not obtained any credit protection; |
| iii) |
the Registrar may preclude such a bank from future participation in a securitisation scheme in a primary role. |
| b) |
When the risks resulting from non-compliance by a bank with any of the conditions set out in this Schedule are regarded by the Registrar as excessive relative to the bank's qualifying capital and reserve funds, the Registrar may impose a capital requirement in addition to the ratio prescribed in the Regulations relating to Banks. |
| 2) |
Conditions relating to non-compliance by a special-purpose institution |
Chapter VIII of the Act shall apply when a special-purpose institution effects a securitisation scheme that is not in compliance with the provisions and requirements specified in this Schedule provided that any non-compliance by a bank or banking group with the provisions and requirements specified in this Schedule, as envisaged in subparagraph (1) above, shall not necessarily mean that the relevant special-purpose institution is in noncompliance with the provisions and requirements specified in this Schedule, that is, the compliance or non-compliance by a special-purpose institution with the provisions and requirements specified in this Schedule shall independently be assessed from the compliance or non-compliance by a bank or banking group with the provisions and requirements specified in this Schedule.
Housing Development Agency Act, 2008
