The Regulated Covered Bonds Regulations 2008

Expenses

29.—(1) Costs properly incurred by a liquidator, provisional liquidator, administrator, administrative receiver, receiver or manager of the owner in relation to—

(a) persons providing services for the benefit of regulated covered bond holders;

(b) the counter-parties to hedging instruments which are incidental to the maintenance and administration of the asset pool or to the terms of the regulated covered bond; or

(c) persons (other than the issuer) providing a loan to the owner to enable it to meet the claims of regulated covered bond holders or pay costs falling within sub-paragraph (a) or (b);

shall be expenses incurred in a winding up, administration, administrative receivership or receivership of the owner, as the case may be.

(2) Such expenses shall be payable out of—

(a) the proceeds of the realisation of the charge, in the case of a receivership; or

(b) the assets of the owner, in an administration, winding up or provisional liquidation,

and shall rank equally among themselves in priority to all other expenses.