Financial Markets Act (Cap. 345), article 31I

31I. (1) Covered bond investors and counterparties of derivative contracts that comply with regulation 8 of the Finan cial Markets Act (Covered Bonds) Regulations shall be entitled to th e following: FINANCIAL MARKETS [CAP. 345. 49 (a) a claim against the credit institution issuing the covered bonds; (b) in the case of the insolvency or resolution of the credit institution issuing the covered bonds, a privileged clai m against the principal and any accrued and future interest on cover assets; (c) in the case of the insolvency of the credit institution issuing the covered bonds and in the event that the privileged claim referred to in paragraph (b) cannot be fully satisfied, a claim against the insolvency estate of that credit institution, which ranks pari passu with the claims of the credit institution’s ordinary unsecur ed creditors determined in accordance with the applicable laws in force in Malta at the time governing the ranking in normal insolvency proceedings: Provided that the claims referred to in this sub-article shall be limited to the full payment obligations attached to the cove red bonds. S.L. 345.27. S.L. 330.09. (2) Credit institutions issuing covered bonds shall ensure that covered bond investors and counte rparties of derivative contrac ts that comply with regulation 8 of the Financial Markets Act (Covered Bonds) Regulations, are entitled to the claim s referred to in s ub-article (1), subject to the conditions laid down in regulation 68(7) of the Recovery and Resolu tion Regulations. (3) Without prejudice to sub-article (4), the Minister, acting o n the advice of the competent auth ority, may make, amend or revok e regulations to give effect to t he provisions of sub-articles (1 ) and (2). (4) The competent authority may issue Covered Bonds Rules for the better implementation of sub-articles (1) and (2). PART V REGULATORY AND INVESTIGATORY POWERS Power to require information. Added by: XVII. 2002.122. Amended by: IV . 2005.30; XX. 2007.14, 37. XXXI. 2017.35; XLVI.2021.41; LXXI.2021.9; IX.2023.6; XI.2025.13. Cap. 370.