Comments for your selection

• 1: Assets purchased in the secondary market are also eligible.
• 2: Exposures to credit institutions are only eligible as substitute assets which are limited to 20% of the nominal amount of the the "Lettres de Gage mobilières" in circulation. There are as many sub-categories of "Lettres de Gage mobilières" as there are asset types, each with its individual cover pool.
• 3: n.a.
• 4: Geographical scope for assets guaranteeing "lettres de gage mobilières": worldwide but restriction in form of credit quality steps and percentages for Non-EU/EEA/OECD countries: Non-EU/EEA/OECD countries with first rating level by a rating agency registered on the relevant list with ESMA = up to 50 % of the cover pool ; with second rating level = up to 10 % of the cover pool; The assets must be registered in one of these countries.
• 5: Information on the composition of the cover pools, the issues and the issuer.
• 6: As Lettres de Gage mobilières have not yet been issued in Luxembourg, detailed regulations regarding the valuation have not yet been issued.
• 7: By law.
• 8: Principal and interest have to be covered.
• 9: Daily: internal, for Special Auditor in case of issue of covered bonds. Monthly: for Supervisory Authority. The frequency for the Rating Agencies depends on the individual contracts.
• 10: According to the law appropriate measures have to be taken by the issuer to ensure all payments of the covered bonds in circulation.
• 11: External auditor.
• 12: Only on a voluntary basis.
• 13: On a nominal and on a net present value basis.
• 14: The license states that the activities of the bank are limited to the activities permitted by the specialised covered bond legislation.
• 15: In addition to regular banking supervision.
• 16: Safeguarding via a special administrator; prior approval of transfer by the supervisory authority is needed besides court decision.
• 17: In the case of bankruptcy of the Issuer, the cover assets do not form part of the bankruptcy estate.
• 18: The derivatives in the cover pool are not affected by the insolvency proceedings.
• 19: In the case that a procedure of suspension of payments or compulsory liquidation is opened for a Lettres de Gage issuer, the assets and derivatives in the collateral pool are separated from the other assets and liabilities of the bank. The respective collateral pools remain unchanged and continue with their corresponding Lettres de Gage and their corresponding reserve at the Luxembourgish Central Bank as proprietary compartments of a Lettres de Gage bank with limited activity. The cover pools do not become separate legal entities. The legal entity of the bank remains unchanged. The banking license continues for the bank with limited activity in order to achieve the purpose of administering the cover pool up to the final maturity of the last outstanding Lettre de Gage. The court nominates one or several administrators for the cover pools. This administrator is different from the general bankruptcy administrator. If a procedure of suspension of payments or compulsory liquidation is opened for one cover pool, the other pools are not affected by this decision and continue.
• 20: However, on 28 November 2012, the ECB announced amendments of its eligibility criteria for its repo transactions. The changes entered into force on 3 January 2013. Covered bonds with external, non-intra group securitisation in the cover pool are no longer eligible as collateral for repo transactions as of 31 March 2013. To smooth the impact for existing programmes, the ECB granted a grandfathering period of two years until 28 November 2014 for already issued covered bonds. This means that new covered bonds with external RMBS or other ABS (both group-internal or external) in the cover pool are no longer repo eligible from the end of March 2013 although tap issues of grandfathered covered bonds will remain eligible during the grandfathering period, as long as no additional external RMBS or other ABS are added to the cover pool.