Singapore legislation
Regulation 15
of Financial Services and Markets (Resolution of Financial Institutions) Regulations 2024
Regulation 15
Protected covered bonds
Subregulation 1
This regulation applies to a covered bond programme that has all of the following characteristics:
bonds, notes or other debentures (called in this regulation covered bonds) are issued in one or more tranches by a transferor that is a bank incorporated in Singapore, directly or through a covered bond special purpose vehicle;
liabilities owed under the covered bonds issued in each tranche to the holders of the covered bonds, and liabilities arising from the enforcement of the rights of the holders of those covered bonds, are —
secured by a common pool of qualifying assets; and
recoverable from the bank regardless of whether the common pool of qualifying assets are sufficient to meet the liabilities.
Subregulation 2
A transfer of a part (but not the whole) of the business of a transferor under section 66 of the Act must not result in the transfer of some, and not all, of the rights and liabilities of all the covered bonds that are issued under the covered bond programme.
Subregulation 3
However, paragraph (2) is not contravened if the certificate of transfer —
provides for the transfer of all the rights and liabilities of all the covered bonds that are issued under the covered bond programme; but(b)fails to transfer all such rights and liabilities for reasons beyond the control of the transferor or the transferee.
Subregulation 4
In this regulation —
Definition
“covered bond programme” means a programme for the issue of covered bonds that are the subject of a single offer document (including any supplementary offer document and other supporting document);
Definition
“covered bond special purpose vehicle” means a company that is incorporated in Singapore for the primary purpose of one or both of the following:
issuing the covered bonds;
holding a common pool of qualifying assets in relation to the covered bonds;
Definition
“qualifying assets”, in relation to covered bonds, means assets that are —
either —
owned legally or beneficially by the bank incorporated in Singapore or the covered bond special purpose vehicle; or
owned both legally and beneficially by that bank incorporated in Singapore or that covered bond special purpose vehicle; and
used for the purposes of securing the payment of one or more of the following:
any liabilities to the holders of the covered bonds;
any liabilities arising from the enforcement of the rights of the holders of the covered bonds;
any liabilities owed to a person appointed by the bank or the covered bond special purpose vehicle for the purposes of the operation and administration of the covered bond programme;
Definition
“tranche” means a particular issue of covered bonds under a covered bond programme;
Definition
“transferee” has the meaning given by section 65 of the Act.