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covered bond

  1. 156[Note: article 52(4) of the UCITS Directive]230
    1. (1) (230except for the purposes of the IRB approach or the standardised approach to credit risk) a bond that is issued by a credit institution which has its registered office inthe UK or230 an EEA State and is subject by law to special public supervision designed to protect bondholders and in particular protection under which sums deriving from the issue of the bond must be invested in conformity with the law in assets which, during the whole period of validity of the bond, are capable of covering claims attaching to the bond and which, in the event of failure of the issuer, would be used on a priority basis for the reimbursement of the principal and payment of the accrued interest.
    2. (2) (230for the purposes of the IRB approach or the standardised approach to credit risk in BIPRU) a covered bond as defined in (1) that meets the following conditions:230
      1. (a) it is issued by a credit institution which has its registered office in the United Kingdom; and230
      2. (b) it is collateralised in accordance with BIPRU 3.4.107R (Exposures in the form of covered bonds).230
      [Note: point 68 of Part 1 of Annex VI of the Banking Consolidation Directive (Exposures in the form of covered bonds)]230
    3. (3) (in RCB) (as defined in Regulation 1(2) of the RCB Regulations) a bond in relation to which the claims attaching to that bond are guaranteed to be paid by an owner from an asset pool it owns.
    4. (4) [deleted]230172
      [Note: article 52(4) of the UCITS Directive]230