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34 2009

National Asset Management Agency Act 2009

Chapter 4

Vesting Orders

Application to Court.

152 .— (1) NAMA may apply to the Court for a vesting order if—

(a) an acquired bank asset includes a charge over land,

(b) the chargee’s power of sale has become exercisable, and

(c) NAMA forms the view that it is unlikely that the sum secured by the charge can be recovered by a sale within 3 months after the application.

(2) An application under subsection (1) shall, where there is a charge secured over the land concerned that has priority to the charge referred to in paragraph (a) of that subsection, contain an undertaking by NAMA to discharge that charge in accordance with section 154 .

(3) An application under subsection (1) shall be supported by an affidavit to which is exhibited evidence—

(a) as to the price likely to be realised, within 3 months after the application, by a sale of the land concerned, and

(b) of any other interests in the land, including any prior charge referred to in subsection (2).

(4) NAMA shall serve notice of the application on—

(a) the chargor concerned,

(b) any chargee (whether prior or subsequent), and

(c) any guarantor of the relevant credit facility.

(5) NAMA shall publish a notice of an application for a vesting order in at least one daily newspaper circulating generally in the State.

(6) The Court shall set down an application under subsection (1) for preliminary hearing, at which it shall give directions for the taking of accounts in relation to the credit facility concerned. At the preliminary hearing the Court may stay the proceedings if a subsequent chargee wishes to offer to redeem in full the charge held by NAMA or a NAMA group entity.

(7) At a preliminary hearing under subsection (6), the Court may direct that notice of the application shall be given to any other person.

(8) The Court may, in any application under this Chapter where it seems to the Court appropriate to do so, direct that evidence be given on affidavit. The Court may deal with the application summarily on consideration of any affidavits presented to it.

Vesting orders.

153 .— (1) If the Court is satisfied, after considering the accounts and other relevant matters, that—

(a) it is unlikely that the sum secured by the charge would be recovered were the land to be sold within 3 months after the application, and

(b) there is no reasonable prospect of the chargor redeeming the charge concerned,

the Court shall make an order (in this Part referred to as a “ vesting order ”) vesting in NAMA, or a NAMA group entity nominated by NAMA, the interest of the chargor, subject to any undertaking under section 152 (2), in the land concerned.

(2) If the Court makes a vesting order, the Court shall also—

(a) determine the amount likely to be realised were the land to be sold within 3 months after the application, and

(b) make an order for possession of the land concerned in favour of NAMA or the nominated NAMA group entity.

Prior chargee’s right to payment.

154 .— (1) In this section “ value ” means the amount determined by the court under section 153 (2) (a).

(2) Where the Court makes a vesting order in relation to land that is subject to a charge that is either prior to, or ranks equally with, that held by NAMA or the NAMA group entity concerned, the Court shall also order NAMA or the NAMA group entity—

(a) if there is only one such chargee, to pay to that chargee whichever is the lesser of the amount secured by its charge and the value, or

(b) if there is more than one such chargee, to pay to each such chargee, in the order of their priority, whichever is the lesser of—

(i) the amount secured by its charge, and

(ii) the value or the remainder of the value, as the case requires.

Effect of vesting order.

155 .— (1) Notwithstanding any other enactment or rule of law, a vesting order—

(a) extinguishes the chargor’s equity of redemption in the land concerned,

(b) vests title to the land in NAMA or the NAMA group entity nominated by NAMA for that purpose,

(c) extinguishes the interest in the land of any other chargee, and

(d) satisfies the requirements of the Land Registration Rules 1972 to 2008.

(2) The extinguishing of the interest of a chargee by subsection (1) (c) does not extinguish the debt secured by the charge concerned. However, a payment ordered to be made under section 154 (2) shall be applied in reduction of the debt secured by the relevant charge.

(3) The debt or debts owed by the chargor to NAMA or the NAMA group entity shall be reduced by the extent, if any, to which the value (within the meaning given by section 154 ) of the charged land exceeds the amount paid under that section.

(4) NAMA shall cause a vesting order to be sent to the Property Registration Authority under the Registration of Title Act 1964 and the Registration of Deeds and Title Act 2006 . The Property Registration Authority shall cause NAMA or the nominated NAMA group entity, as the case requires, to be registered as owner of the land in accordance with the order.

(5) For the avoidance of doubt, the making of a vesting order in relation to land does not impose on NAMA or any NAMA group entity any obligation to sell the land within any particular period or at all.

Title of purchaser not impeachable.

156 .— (1) The title of a purchaser from NAMA or a NAMA group entity of land in relation to which NAMA has obtained a vesting order is not impeachable on the ground of any irregularity in the vesting order or any irregularity or impropriety in the obtaining of it.

(2) No purchaser from NAMA or a NAMA group entity, and no subsequent purchaser, of land referred to in subsection (1) is either required or entitled to raise any requisition or make any objection on title specific to the vesting order.