Next (PART 1 Preliminary )

34 2009

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Number 34 of 2009


NATIONAL ASSET MANAGEMENT AGENCY ACT 2009


ARRANGEMENT OF SECTIONS

PART 1

Preliminary

Section

1. Short title, commencement and collective citation.

2. Purposes of this Act.

3. Regulatory functions not affected.

4. Interpretation.

5. Regulations.

6. Expenses of Minister and NTMA.

7. Offences.

PART 2

National Asset Management Agency

Chapter 1

Establishment, Functions and Powers

8. Establishment day.

9. Establishment of NAMA.

10. Purposes of NAMA.

11. Functions of NAMA.

12. Powers of NAMA.

13. Minister’s powers to issue guidelines to NAMA.

14. Minister’s powers of direction.

15. No shadow or de facto directorship.

16. Prevention of corruption.

17. Liability of NAMA, etc.

Chapter 2

Membership of Board and Related Matters

18. Functions of Board.

19. Membership of Board.

20. Term of office of appointed members.

21. Remuneration, etc., of appointed members.

22. How appointed members cease to hold office.

23. How ex-officio members cease to be Board members.

24. Filling of casual vacancies, etc.

25. Nomination and remuneration, etc., of Chairperson.

26. Meetings of Board.

27. Electronic meetings.

28. Resolutions by circulation of copies.

29. Seal of NAMA, etc.

30. Disclosure of interests.

31. Register of Board members’ interests.

32. Audit committee, credit committee, finance committee and risk-management committee.

33. Other committees.

34. Indemnification of members of Board and officers of NAMA, etc.

35. Codes of practice.

36. Application of certain provisions of this Chapter to directors of NAMA group entities.

Chapter 3

Chief Executive Officer

37. Appointment of first Chief Executive Officer.

38. Chief Executive Officer’s functions.

39. Resignation of Chief Executive Officer.

40. Removal of Chief Executive Officer from office.

Chapter 4

NAMA’s Relationship with NTMA

41. NTMA to provide resources to NAMA.

42. NTMA to provide staff to NAMA.

43. Suspension of officers of NAMA.

Chapter 5

Contracted Service Providers

44. Power to engage service providers, etc.

45. Professional standards and audit.

PART 3

Finance, Planning, Accountability and Reporting

46. Financing arrangements, expenses and advances from Central Fund.

47. Financing arrangements — Minister may issue debt securities.

48. Financing arrangements — NAMA, etc., may issue debt securities.

49. Financing arrangements — NAMA, etc., may issue subordinated debt securities.

50. Financing arrangements — limits on borrowings.

51. Application of Borrowing Powers of Certain Bodies Act 1996.

52. Financing arrangements — treasury services.

53. Annual statements.

54. Annual accounts.

55. Quarterly reports.

56. Other reports to Minister.

57. Audit of accounts by Comptroller and Auditor General.

58. Accountability to Committee of Public Accounts.

59. Appearances before another Oireachtas Committee.

60. Repayment to Central Fund to redeem debt.

PART 4

Designation of Credit Institutions as Participating Institutions and Designation of Eligible Bank Assets

Chapter 1

Designation of Participating Institutions

61. Definition (Chapter 1).

62. Applications for designation as participating institution.

63. Effect of application for designation, etc.

64. Information, etc., to be provided in support of application for designation.

65. Capacity of applicant credit institutions, etc.

66. Dealings by applicant credit institutions, etc., with eligible bank assets after application for designation.

67. Designation of participating institutions.

68. Obligations of participating institutions.

Chapter 2

Designation of Eligible Bank Assets

69. Eligible bank assets.

70. Meaning of “associated debtor” in this Act.

71. Dealings by participating institutions with eligible bank assets.

PART 5

Valuation Methodology

72. Interpretation (Part 5).

73. Determination of acquisition values — valuation dates, etc.

74. Determination of acquisition values — guidelines, etc.

75. Acquisition values.

76. Determination of long-term economic values.

77. Market values.

78. Regulations in relation to certain reports.

79. Regulations in relation to determination of values.

PART 6

Acquisition of Bank Assets and Related Matters

Chapter 1

Acquisition of Bank Assets

80. Applicant credit institutions and participating institutions to provide information about eligible bank assets.

81. Production of documentation, books and records for inspection.

82. Provision of information and explanations, etc.

83. Obligations to co-operate and act in good faith, etc.

84. Decision about acquisition of eligible bank assets.

85. NAMA to identify eligible bank assets for acquisition.

86. NAMA may specify general terms and conditions of acquisition.

87. NAMA to prepare acquisition schedule.

88. Errors or omissions in proposed acquisition schedules.

89. Amendment of acquisition schedule.

90. Effect of service of acquisition schedule.

91. Effect of service of acquisition schedule in relation to foreign bank assets.

92. Payment for bank assets.

93. Clawback of overpayments.

94. Dealings with bank assets after service of acquisition schedule until date of acquisition.

95. Books, records and title documents of participating institutions.

96. Notice to debtors, etc., of acquisition of bank assets.

97. NAMA to notify participating institutions of completion of acquisition process.

98. Dispute over acquisition value.

Chapter 2

Effects of Acquisition of Bank Assets

99. NAMA to have rights of creditors after acquisition of bank assets.

100. Exercise of certain rights of set-off.

101. Enforcement of certain representations, etc.

102. Acquisition of bank assets not to affect conditions, etc.

103. Acquisition of bank assets not to give rise to cause of action, etc.

104. NAMA to be notified of certain matters.

105. Acquisition of bank assets not to render NAMA liable for wrongs by participating institutions.

106. Rights of others not affected by acquisition of bank assets, etc.

107. NAMA not required to register certain instruments, etc.

108. NAMA, etc., may give certificates in relation to bank assets held.

109. NAMA, etc., may give certain directions in relation to bank assets.

110. Effect of acquisition of bank assets on certain other rights.

111. Minister’s power to modify application of section 110.

PART 7

Review of Decisions Relating to Acquisition

Chapter 1

Expert Reviewer

112. Appointment and functions of expert reviewer.

113. Procedure of expert reviewer.

114. Objections to proposed acquisition of bank assets.

115. Materials, etc., to be made available to expert reviewer.

116. Opinion of expert reviewer.

117. Confirmation by Minister of acquisition, etc.

118. Costs.

Chapter 2

Review of Valuations

119. Appointment of valuation panel.

120. Procedure of valuation panel.

121. Objection to value placed on bank assets acquired from participating institution.

122. Dispute over total portfolio acquisition value.

123. Material, etc., to be made available to valuation panel.

124. Review by valuation panel.

125. Minister’s determination.

126. Withdrawal of dispute.

127. Costs of review of valuations.

PART 8

Relationship between NAMA and Participating Institutions

128. Definition (Part 8).

129. Participating institutions to act in utmost good faith.

130. Breach of statutory requirements.

131. Servicing of acquired bank assets by participating institutions.

132. Other servicing arrangements.

133. NAMA may give directions about certain bank assets not acquired.

134. Additional payment on servicing of acquired bank assets.

135. Participating institutions to indemnify NAMA.

136. Participating institutions to be agent of subsidiaries, etc.

PART 9

Powers of NAMA in Relation to Assets

Chapter 1

Definitions

137. Definitions (Part 9).

Chapter 2

General Powers of NAMA in Relation to Assets

138. Interpretation (Chapter 2).

139. NAMA’s powers to dispose of bank assets.

140. Power to discharge prior charge.

141. Power of entry to protect value or condition of land or buildings.

142. Certain instruments by NAMA to be taken to be deeds.

143. Overreaching for protection of purchasers.

144. Effect of certain assurances of land.

145. Certain receivers not obliged to sell property, etc.

146. Powers of NAMA to enforce securities, etc.

Chapter 3

Statutory Receivers

147. NAMA’s power to appoint statutory receivers.

148. Powers of statutory receivers.

149. Statutory receiver to be agent of chargor, etc.

150. Appointment of liquidator or examiner to companies whose assets are under control of statutory receiver.

151. Statutory receiver not obliged to sell property, etc.

Chapter 4

Vesting Orders

152. Application to Court.

153. Vesting orders.

154. Prior chargee’s right to payment.

155. Effect of vesting order.

156. Title of purchaser not impeachable.

Chapter 5

Compulsory Acquisition of Land

157. Definitions (Chapter 5).

158. NAMA’s powers to acquire land compulsorily.

159. Application to Court for acquisition order.

160. Initial notice of acquisition.

161. Maps, plans and books to be deposited.

162. Consideration by Court of objections.

163. Acquisition order.

164. Notice to treat.

165. NAMA’s power to take possession.

166. Determination of compensation.

167. Court may make compulsory transfer order.

168. NAMA to inform Revenue Commissioners if certain liabilities exist.

169. Form and effect of compulsory transfer order.

170. Effect of compulsory acquisition without compulsory transfer order.

171. Service of notices.

Chapter 6

General Powers in Relation to Land

172. Limitations on certain dealings in land, etc.

173. Set-off of compensation.

Chapter 7

Powers in Relation to Development of Land

174. Interpretation (Chapter 7).

175. Application (Chapter 7).

176. Development of land.

177. NAMA to have certain contractual rights of land developers.

178. Designs and planning documents for land development.

179. Limitation of right to renewal of certain business tenancies.

PART 10

Legal Proceedings

Chapter 1

Interpretation

180. Interpretation (Part 10).

Chapter 2

Legal Proceedings Commenced on or after 30 July 2009

181. Application (Chapter 2).

182. Damages to be only remedy for certain claims.

Chapter 3

Legal Proceedings Generally

183. Application (Chapter 3).

184. Conduct of legal proceedings in relation to acquired bank assets.

185. Effect of acquisition, etc., of bank assets on legal proceedings — participating institution plaintiff, etc.

186. Effect of acquisition of bank assets on legal proceedings — NAMA, etc., may enforce judgment.

187. Effect of acquisition of bank assets on legal proceedings where participating institution not plaintiff.

188. Conduct of proceedings.

189. Costs.

190. Evidence — amount of debt due.

191. Evidence — application of Bankers’ Books Evidence Act 1879.

192. Limitation of power to grant injunctive relief.

193. Limitation of judicial review.

194. Limitation of certain rights of appeal to the Supreme Court.

195. Lites pendentes to have no effect, etc.

PART 11

Use of Information

196. Definition (Part 11).

197. Deemed consent to disclosure of information.

198. Duty of confidentiality, etc., not contravened by provision of information or production of documents and books for inspection.

199. Duty of confidentiality, etc., not contravened by provision of information to, or production of documents and books for inspection by, potential purchasers.

200. Obligation to provide information, etc., to NAMA, etc., extends to provision to advisers.

201. Operation of Data Protection Acts 1988 and 2003.

202. Disclosure of confidential information.

203. Obligation to pass certain information to law-enforcement authorities.

204. Provision of information to Revenue Commissioners.

205. Disclosure by regulatory authorities.

PART 12

Conduct of Participating Institutions

206. Directions in relation to conduct of participating institutions.

207. Reporting by participating institutions.

208. Restructuring plans.

209. Compliance with directions.

210. Guidelines regarding lending practices.

PART 13

Miscellaneous

211. Avoidance of certain transactions.

212. Provision of tax information to NAMA.

213. NAMA, etc., not to make payments in certain circumstances.

214. NAMA exempt from certain taxes.

215. Disapplication of certain provisions of Competition Act 2002 and Credit Institutions (Financial Support) Act 2008.

216. NAMA, etc., not to be taken to be carrying on banking business, etc.

217. Application of laws in relation to netting agreements, etc.

218. Certain bank assets not invalidated.

219. Nothing done under Act to be reorganisation or winding-up measure.

220. Operation of certain provisions of Land Registration Rules 1972 to 2008.

221. Offence of lobbying NAMA, etc.

222. Protection from civil liability of persons who report certain misconduct.

223. Prohibition on penalisation.

224. False statements.

225. Surcharge on participating institutions.

PART 14

Review of NAMA

226. Triennial review of NAMA’s progress.

227. Review of achievement of NAMA’s purposes.

PART 15

Amendment and Modification of other Enactments

228. Operation of certain provisions of Companies Act 1963.

229. Operation of certain provisions of Companies (Amendment) Act 1983.

230. Disapplication of section 7 of Official Languages Act 2003.

231. Amendment of Building Societies Act 1989.

232. Amendment of Central Bank Act 1942.

233. Amendment of Companies Act 1963.

234. Amendment of Companies (Amendment) Act 1990.

235. Amendment of Finance Act 1970.

236. Amendment of Landlord and Tenant (Amendment) Act 1980.

237. Amendment of National Treasury Management Agency Act 1990.

238. Amendment of Planning and Development Act 2000.

239. Amendment of Stamp Duties Consolidation Act 1999.

240. Amendment of Taxes Consolidation Act 1997.

241. Amendment of Value-Added Tax Act 1972.

SCHEDULE 1

Powers of Statutory Receivers

SCHEDULE 2

Redress for Contravention of section 223 (3)

SCHEDULE 3

Amendments of Other Acts

PART 1

Amendment of Building Societies Act 1989

PART 2

Amendment of Central Bank Act 1942

PART 3

Amendment of Companies Act 1963

PART 4

Amendments of Companies (Amendment) Act 1990

PART 5

Amendment of Finance Act 1970

PART 6

Amendments of Landlord and Tenant (Amendment) Act 1980

PART 7

Amendments of National Treasury Management Agency Act 1990

PART 8

Amendment of Planning and Development Act 2000

PART 9

Amendment of Stamp Duties Consolidation Act 1999

PART 10

Amendments of Taxes Consolidation Act 1997

PART 11

Amendments of Value-Added Tax Act 1972


Acts Referred to

Acquisition of Land (Assessment of Compensation) Act 1919

9 & 10 Geo. 5, c. 57

Agricultural Credit Act 1978

1978, No. 2

Bankers’ Books Evidence Act 1879

42 & 43 Vict., c. 11

Bankruptcy Act 1988

1988, No. 27

Bills of Sale (Ireland) Acts 1879 and 1883

Borrowing Powers of Certain Bodies Act 1996

1996, No. 22

Building Societies Act 1989

1989, No. 17

Capital Gains Tax Acts

Central Bank Act 1942

1942, No. 22

Central Bank Act 1997

1997, No. 8

Central Bank Acts 1942 to 2001

Central Bank and Financial Services Authority of Ireland Act 2003

2003, No. 12

Central Bank and Financial Services Authority of Ireland Act 2004

2004, No. 21

Civil Service Regulation Act 1956

1956, No. 46

Companies Act 1963

1963, No. 33

Companies Act 1990

1990, No. 33

Companies Acts

Companies (Amendment) Act 1982

1982, No. 10

Companies (Amendment) Act 1983

1983, No. 13

Companies (Amendment) Act 1990

1990, No. 27

Competition Act 2002

2002, No. 14

Comptroller and Auditor General (Amendment) Act 1993

1993, No. 8

Conveyancing Act 1634

10 Chas. 1 sess. 2, c. 3

Conveyancing Act 1881

44 & 45 Vict., c. 41

Corporation Tax Acts

Courts Act 1981

1981, No. 11

Credit Institutions (Financial Support) Act 2008

2008, No. 18

Data Protection Acts 1988 and 2003

Ethics in Public Office Act 1995

1995, No. 22

European Communities Act 1972

1972, No. 27

European Parliament Elections Act 1997

1997, No. 2

Family Home Protection Act 1976

1976, No. 27

Finance Act 1970

1970, No. 14

Health Contributions Act 1979

1979, No. 4

Housing Act 1966

1966, No. 21

Income Tax Acts

Industrial and Commercial Property (Protection) Act 1927

1927, No. 16

Interpretation Act 1937

1937, No. 38

Investment Funds, Companies and Miscellaneous Provisions Act 2005

2005, No. 12

Investment Funds, Companies and Miscellaneous Provisions Act 2006

2006, No. 41

Land and Conveyancing Law Reform Act 2009

2009, No. 27

Lands Clauses Acts

Land Clauses Consolidation Act 1845

8 & 9 Vict., c. 18

Landlord and Tenant (Amendment) Act 1980

1980, No. 10

Local Government Act 2001

2001, No. 37

Markets in Financial Instruments and Miscellaneous Provisions Act 2007

2007, No. 37

National Treasury Management Agency Act 1990

1990, No. 18

Netting of Financial Contracts Act 1995

1995, No. 25

Official Languages Act 2003

2003, No. 32

Patents Act 1992

1992, No. 1

Planning and Development Act 2000

2000, No. 30

Planning and Development Acts 2000 to 2007

Prevention of Corruption Act 1906

6 Edw. 7, c. 34

Prevention of Corruption Acts 1889 to 2001

Public Bodies Corrupt Practices Act 1889

52 & 53 Vict., c. 69

Redundancy Payments Act 1967

1967, No. 21

Registration of Deeds and Title Act 2006

2006, No. 12

Registration of Deeds and Title Acts 1964 and 2006

Registration of Title Act 1964

1964, No. 16

Safety, Health and Welfare at Work Act 2005

2005, No. 10

Social Welfare Consolidation Act 2005

2005, No. 26

Stamp Duties Consolidation Act 1999

1999, No. 31

Statutory Instruments Act 1947

1947, No. 44

Tax Acts

Taxes Consolidation Act 1997

1997, No. 39

Trade Marks Act 1996

1996, No. 6

Unfair Dismissals Acts 1977 to 2005

Value-Added Tax Act 1972

1972, No. 22

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Number 34 of 2009


NATIONAL ASSET MANAGEMENT AGENCY ACT 2009


AN ACT—

TO ADDRESS A SERIOUS THREAT TO THE ECONOMY AND TO THE SYSTEMIC STABILITY OF CREDIT INSTITUTIONS IN THE STATE GENERALLY BY PROVIDING, IN PARTICULAR, FOR THE ESTABLISHMENT OF A BODY TO BE KNOWN AS THE NATIONAL ASSET MANAGEMENT AGENCY FOR THE PURPOSES OF—

(A)THE ACQUISITION BY THAT AGENCY OF CERTAIN ASSETS FROM CERTAIN PERSONS TO BE DESIGNATED BY THE MINISTER FOR FINANCE,

(B) EFFECTING THE EXPEDITIOUS AND EFFICIENT TRANSFER OF THOSE ASSETS TO THAT AGENCY,

(C) THE HOLDING, MANAGING AND REALISING OF THOSE ASSETS BY THAT AGENCY (INCLUDING THE COLLECTION OF INTEREST AND CAPITAL DUE, THE TAKING OR TAKING OVER OF COLLATERAL WHERE NECESSARY AND THE PROVISION OF FUNDS WHERE APPROPRIATE),

(D) THE TAKING BY THAT AGENCY OF ALL STEPS NECESSARY OR EXPEDIENT TO PROTECT, ENHANCE AND BETTER REALISE THE VALUE OF ASSETS TRANSFERRED TO IT,

(E) THE PERFORMANCE BY THAT AGENCY OF SUCH OTHER FUNCTIONS, RELATED TO THE MANAGEMENT OR REALISATION OF THOSE ASSETS, AS PROVIDED IN THIS ACT OR AS DIRECTED BY THE MINISTER, AND

(F) THE FACILITATION OF RESTRUCTURING OF CREDIT INSTITUTIONS OF SYSTEMIC IMPORTANCE TO THE ECONOMY, AND

TO PROVIDE FOR THE VALUATION OF THE ASSETS CONCERNED AND THE REVIEW OF ANY SUCH VALUATION,

TO GIVE THE NATIONAL ASSET MANAGEMENT AGENCY CERTAIN POWERS AND OTHER FUNCTIONS IN RESPECT OF LAND OR AN INTEREST IN LAND ACQUIRED BY THAT AGENCY, INCLUDING POWERS RELATING TO THE DEVELOPMENT OF LAND,

TO PROVIDE FOR THE ISSUING OF DEBT SECURITIES BY THE MINISTER FOR FINANCE AND BY THAT AGENCY IN THE PERFORMANCE OF ITS FUNCTIONS UNDER THIS ACT,

TO PROVIDE FOR CERTAIN LEGAL PROCEEDINGS RELATING TO ASSETS ACQUIRED BY THAT AGENCY, TO AMEND THE CENTRAL BANK ACT 1942, AND TO PROVIDE FOR RELATED MATTERS.

[22nd November, 2009]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: