Sec. 352. Definitions
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/bill/113/hr/2767/ih/section-352A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
For purposes of this subtitle, the following definitions shall apply: The term ancillary asset means— any interest rate or currency swap associated with 1 or more eligible assets, substitute assets, or other assets in a cover pool; any credit enhancement or liquidity arrangement associated with 1 or more eligible assets, substitute assets, or other assets in a cover pool; any guarantee, letter-of-credit right, or other secondary obligation that supports any payment or performance of 1 or more eligible assets, substitute assets, or other assets in a cover pool; and any proceeds of, or other property incident to, 1 or more eligible assets, substitute assets, or other assets in a cover pool.
The term Corporation means the Federal Deposit Insurance Corporation. The term cover pool means a dynamic pool of assets that is comprised of— in the case of any eligible issuer described in subparagraph (A), (B), or
(C)of paragraph (9)— 1 or more eligible assets from a single eligible asset class; and 1 or more substitute assets or ancillary assets; and in the case of any eligible issuer described in paragraph (9)(D)— the covered bonds issued by each sponsoring eligible issuer; and 1 or more substitute assets or ancillary assets. The term covered bond means any recourse debt obligation of an eligible issuer that— has an original term to maturity of not less than 1 year; is secured by a perfected security interest in or other perfected lien on a cover pool that is owned directly or indirectly by the issuer of the obligation; is issued under a covered bond program that has been approved by the applicable covered bond regulator; is identified in a register of covered bonds that is maintained by the Secretary; and is not a deposit (as defined in section 3(l) of the Federal Deposit Insurance Act (12 U.S.C. 1813(l))). The term covered bond program means any program of an eligible issuer under which, on the security of a single cover pool, 1 or more series of covered bonds may be issued. The term covered bond regulator means— for any eligible issuer that is subject to the jurisdiction of an appropriate Federal banking agency (as defined in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q))), the appropriate Federal banking agency; for any eligible issuer that is described in paragraph (9)(D), that is not subject to the jurisdiction of an appropriate Federal banking agency, and that is sponsored by only 1 eligible issuer, the covered bond regulator for the sponsor; for any eligible issuer that is described in paragraph (9)(D), that is not subject to the jurisdiction of an appropriate Federal banking agency, and that is sponsored by more than 1 eligible issuer, the covered bond regulator for the sponsor whose covered bonds constitute the largest share of the cover pool of the issuer; and for any other eligible issuer that is not subject to the jurisdiction of an appropriate Federal banking agency, the Secretary. The term eligible asset means— in the case of the residential mortgage asset class, any first-lien mortgage loan that— is secured by 1- to 4-family residential property; and is not made, insured, or guaranteed by the Government; in the case of the commercial mortgage asset class, any commercial mortgage loan (including any multifamily mortgage loan); in the case of the public sector asset class— any security issued by a State, municipality, or other governmental authority; any loan made to a State, municipality, or other governmental authority; and any loan, security, or other obligation that is insured or guaranteed, in full or substantially in full, by the full faith and credit of the United States Government (whether or not such loan, security, or other obligation is also part of another eligible asset class); in the case of the auto asset class, any auto loan or lease; in the case of the student loan asset class, any student loan (whether guaranteed or nonguaranteed); in the case of the credit or charge card asset class, any extension of credit to a person under an open-end credit plan; in the case of the small business asset class, any loan that is made or guaranteed under a program of the Small Business Administration; and in the case of any other eligible asset class, any asset designated by the Secretary, by rule and in consultation with the covered bond regulators, as an eligible asset for purposes of such class. The term eligible asset class means— a residential mortgage asset class; a commercial mortgage asset class; a public sector asset class; an auto asset class; a student loan asset class; a credit or charge card asset class; a small business asset class; and any other eligible asset class designated by the Secretary, by rule and in consultation with the covered bond regulators. The term eligible issuer means— any insured depository institution and any subsidiary of such institution; any bank holding company, any savings and loan holding company, and any subsidiary of any of such companies; any nonbank financial company (as defined in section 102(a)(4) of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5311(a)(4) )) that is supervised by the Board of Governors of the Federal Reserve System under section 113 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5323 ), including any intermediate holding company supervised as a nonbank financial company, and any subsidiary of such a nonbank financial company; and any issuer that is sponsored by 1 or more eligible issuers for the sole purpose of issuing covered bonds on a pooled basis. The term oversight program means the covered bond regulatory oversight program established under section 353(a). The term Secretary means the Secretary of the Department of the Treasury. The term substitute asset means— cash; any direct obligation of the United States Government, and any security or other obligation whose full principal and interest are insured or guaranteed by the full faith and credit of the United States Government; any direct obligation of a United States Government corporation or Government-sponsored enterprise of the highest credit quality, and any other security or other obligation of the highest credit quality whose full principal and interest are insured or guaranteed by such corporation or enterprise, except that the outstanding principal amount of these obligations in any cover pool may not exceed an amount equal to 20 percent of the outstanding principal amount of all assets in the cover pool without the approval of the applicable covered bond regulator; any overnight investment in Federal funds; any other substitute asset designated by the Secretary, by rule and in consultation with the covered bond regulators; and any deposit account or securities account into which only an asset described in subparagraph (A), (B), (C), (D), or
(E)may be deposited or credited.
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