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+Article 6 4. |
Article 6 4.For the purposes of point (c) of paragraph 1, covered bonds secured by loans to or guaranteed by public undertakings as primary assets shall be subject to a minimum level of 10 % of overcollateralisation and subject to all the following conditions:
(a)
the public undertakings provide essential public services on the basis of a licence, a concession contract or other form of entrustment granted by a public authority;
(b)
the public undertakings are subject to public supervision;
(c)
the public undertakings have sufficient revenue generating powers, which are ensured by the fact of such public undertakings:
(i)
having adequate flexibility to collect and to increase fees, charges and receivables for the service provided in order to ensure their financial soundness and solvability;
(ii)
receiving sufficient grants on a statutory basis in order to ensure their financial soundness and solvability in exchange for providing essential public services; or
(iii)
having entered into a profit and loss transfer agreement with a public authority. 1. Overview
1.1 References1.2 Identified Requirements1.3 Related Standards2. Identified Requirements
3. Related Standards
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