Chapter 2 Joint recovery of debt etc

  • 2.1. Section 12 Relationship to bankruptcy legislation etc

    Except as otherwise stated in the Financial Institutions Act chapter 2 subchapter IV or these regulations, the ordinary rules on proceedings in bankruptcy and negotiation of debt, winding up or public administration shall apply. Where the regulations make exceptions from these rules, the exceptions shall apply both to covered bonds and to derivative contracts as mentioned in the Financial Institutions Act section 2-28 first paragraph e).

    The Bankruptcy Act section 64 shall not prevent bankruptcy proceedings from being started against a mortgage credit institution upon petition by holders of covered bonds.

    The provisions of the Act on Guarantee Schemes for Banks and Public Administration etc., of Financial Institutions section 4-6 first paragraph d) concerning SFA's approval of payments and section 4-9 second paragraph concerning reduction of claims, shall not apply to holders of covered bonds.

    The rules of chapters 2, 3 and 4 of these regulations concerning bankruptcy proceedings apply correspondingly to debt negotiation, public administration and winding up insofar as they are appropriate.

  • 2.2. Section 13 Payment of expenses

    Payment of expenses on operation, management, recovery and realisation of the cover pool may be demanded before the holders of covered bonds receive payment from the cover pool.