VUB's Market Share and Financial Services
SLOVAK CB LEGISLATION AT A GLANCE
NEW AD HOC COVERED BOND LEGISLATION IN FORCE SINCE JAN 2018
→ The issuer - in addition to standard banking license - must obtain prior consent of the NBS to issue
covered bonds
→ On-balance sheet segregation: cover assets remain on issuer's balance sheet but constitute a
'separate' estate
The issuer must maintain a Covered Bonds Register ("Covered Bond Estate") into which assets
and proceeds from the cover pool are individually recorded
NBS decree established all information to be included (since Jan 2019) in the Covered Bond
Register
Bankruptcy remoteness: inclusion in the Register has the same effect as true sale in case of
bankruptcy proceedings:
the Covered Bonds Estate is not part of the bankruptcy general estate: proceeds from the cover assets may
only be used to satisfy the claims of the covered bondholders
→ Bankruptcy proceedings do not automatically cause the acceleration of Slovak covered bonds
→ Dual recourse: covered bondholders have recourse against both:
the Covered Bonds Estate
the general estate of the Issuer
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