The Regulated Covered Bonds Regulations 2008

Asset Pool

3.—(1) Subject to paragraph (2), in these Regulations an “asset pool” comprises the following assets—

(a) sums derived from the issue of regulated covered bonds and lent to the owner in accordance with regulation 16;

(b) eligible property which is acquired by the owner using sums lent to it in accordance with regulation 22;

(c) eligible property transferred to the asset pool by the issuer or a connected person to enable the issuer or owner, as the case may be, to comply with—

(i) the requirements specified in regulation 17(2);

(ii) a direction of the Authority under regulation 30; or

(iii) an order of the court under regulation 33;

(d) eligible property transferred to the asset pool by the issuer or a connected person for the purpose of over collateralisation;

(e) contracts relating to the asset pool or to a regulated covered bond;

(f) eligible property acquired by the owner using sums derived from any of the assets referred to in sub-paragraph (b), (c), (d) or (e);

(g) sums derived from any of the assets referred to in sub-paragraph (b), (c), (d), (e) or (f); and

(h) sums lent by persons (other than the issuer) to the owner to enable it to comply with the requirements specified in regulation 24(1)(a).

(2) Any of the assets referred to in sub-paragraphs (a) to (f) and (h) of paragraph (1) may only form part of an asset pool at any time if they are recorded at that time, pursuant to arrangements made in accordance with regulation 17, 23 or 24, as being in that pool.

(3) In paragraph (1), “over collateralisation” means the provision of additional assets that assist the payment from the relevant asset pool of claims attaching to a regulated covered bond in the event of the failure of the issuer.