The Asset Covered Securities Act 2001

The Asset Covered Securities Act 2001 provides that, in the event of any issuer of securities defaulting, the NTMA must in the following order:

Secure an alternative service provider to manage relevant asset pools; or Secure an alternative obligor for the relevant pools; or Manage the pools itself.

The Act further provides that the NTMA should have priority with respect to expenses incurred in the performance of its functions and will derive an annual commitment fee in return for accepting its functions under this Act. The Irish Financial Services Regulatory Authority has approved an annual commitment fee of one tenth of one basis point of the nominal amount of asset covered bonds issued.