Pfandbriefforum

Emittenten
 

 Comparison of the three legislative acts
 Links to legal texts
 European comparison


Legal Foundations

» Comparison of the three legislative acts

Austrian Covered Bond
Pfandbriefe (Mortgage Banking Act)
Fundierte Bankschuldverschreibungen
Hypothekenbankgesetz
(Mortgage Banking Act 1899)
Pfandbriefgesetz
(Pfandbrief Law 1927)
Gesetz betreffend Fundierte Bankschuldverschreibungen
(Covered Bond Act 1905)
pfeil pfeil pfeil
 
  Criterion
Pfandbriefe subject to Pfandbriefe subject to Covered bond subject to
HypBG PfandbriefG FBSchVG
Designation   Pfandbrief Covered Bond
Structure Cover assets held by issuers on-balance sheet
Cover assets and valuation Cover assets -Claims on or securities issued by or guaranteed by the public sector

-Hedging transactions for hedging of interest and foreign exchange risks

Additionally, bonds eligible for ward money trusts
Mortgages Additionally, bonds eligible for ward money trusts
Number of cover stocks Two cover stocks, segregated into public and mortgage cover (optionally possible with covered bonds)
Accepted countries for primary and substitute cover Domestic, EEA, Switzerland
Limit on substitute cover (for mortgage cover stock) 15%
Substitute cover -Securities of public issuers in the accepted countries
-Deposits held with central banks of Zone A or with Austrian financial institutions
Additionally, bonds eligible for ward money trusts
Publications -Cover register monthly
-Day-by-day status in the land register
Limits of loan-to-value 60% According to the statutes, as a rule 60% According to the statutes
Asset-liability rules Statutory or contractual rules regarding market risks Advances for substitute cover, standard for matched maturity  
Minimum statutory cover 2% nominal or cash value
Cover account Nominal or cash value, according to the statutes
Main method for liquidity risks Stress tests according to the statutes  
Solidity in case of insolvency Insolvency regulations Priority claim by law
Claim to the bank’s insolvency estate if cover stock is not sufficient?
Ranked equal with other non-securitised creditors
Notification in relation to borrowers
May be set off Upon notification of inclusion of the claim in the cover stock, the borrower’s right to set off the claims against deposits held with the issuer lapses (for Austrian mortgages: publicly transparent due to marking as “surety” in the land register)
Regulation and monitoring Proper cover is regularly audited by an administrator appointed by the Austrian Financial Market Authority or the Federal Finance Ministry, the government commissioner or by a trustee; the issuer is subject to audit by the Austrian Financial Market Authority
Risk weighting In conformity with art 22 (4) UCITS
Meets the requirements of CRD, Annex VI, Part 1, sec 68 (a)