VUB's Market Share and Financial Services
SLOVAK CB LEGISLATION AT A GLANCE
SPECIAL LEGAL INSTITUTION – COVERED BOND PROGRAMME TRANSFER
→ A transfer of CB programme is expected to be used mostly in special circumstances where the
bank issuing CBs is subject to involuntary administration or bankruptcy proceedings
→ Involuntary administrator or trustee operates the CB Programme of the issuing bank and shall:
cooperate with the Programme Monitor
assess with due professional care whether or not the further management of the CB programme would result in
an overall decrease in satisfaction of the owners of CBs
Involuntary administrator/trustee can, with the prior approval of the NBS, transfer the whole CB
Programme to another authorized Slovak bank
Programme transfer shall be carried out within one year from the notification to the NBS. Involuntary administrator/bankruptcy trustee
could request a one year extension to terminate the transfer process
soft bullet extension: pending the transfer, the final maturity of the covered bonds, whose original maturity expires during the period
of the transfer, will be extended by a maximum of one year (or two years in total, in case of repeated attempt to transfer)
no suspension of interest payments on the covered bonds due to maturity extension
If the trustee fails to transfer the CB Programme, it is entitled to transfer receivables arising under
mortgage loans included in the assets of the cover pool for remuneration to bank, foreign bank,
branch of a foreign bank.
Acceleration and early repayment of CB are triggered as of the date the trustee terminates the
operation of the bankrupt bank's business after declaration of bankruptcy which generally follows
immediately after the trustee has failed to ensure realisation of the bankrupt bank's assets via the
transfer of the CB programme.
41View entire presentation