Section 15 Estate’s disposal over the cover pool

The bankruptcy administrator and creditors’ committee may dispose over assets included in the cover pool solely for the purpose of meeting the requirement of timely payment.

If deemed necessary in the interests of the other creditors’ ability to enforce a claim, the bankruptcy administrator and creditors’ committee may none the less sell the entire cover pool provided the proceeds obtained provide at minimum full satisfaction to holders of covered bonds.

Full satisfaction means settlement of interest rate contracts and foreign exchange contracts at market value based on pricing of comparable interest rate contracts and foreign exchange contracts. Full satisfaction in respect of bond issues entails settlement of all accrued interest and charges as well as agreed future cash flow (principal and interest) up to the ordinary maturity date, discounted at the market rate for comparable bonds in the relevant currency.