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34 2009

National Asset Management Agency Act 2009

PART 12

Conduct of Participating Institutions

Directions in relation to conduct of participating institutions.

206 .— (1) The Regulatory Authority, may, with the approval of the Minister, give a direction to a participating institution in order to achieve the purposes of this Act, as specified in section 2 .

(2) A direction under subsection (1) may—

(a) restrict balance sheet growth,

(b) restrict the institution’s ability to take over other credit institutions,

(c) require balance sheet reduction, or

(d) restrict or require consolidation and merger of participating institutions.

Reporting by participating institutions.

207 .— (1) The Regulatory Authority may direct a participating institution in writing to make any report that the Regulatory Authority considers necessary to monitor the institution’s compliance with its obligations under or by virtue of this Part.

(2) A direction under subsection (1) shall specify the information to be provided in the report and the period within which the report shall be submitted to the Regulatory Authority.

(3) A participating institution that is directed to make a report under subsection (1) shall comply with the direction.

(4) The Minister may direct the Regulatory Authority to require such other reports from a participating institution as the Minister considers necessary.

(5) The Minister may make regulations providing for the making by participating institutions of periodic reports, the frequency and form of such reports and the matters that such reports shall address.

(6) If the Minister makes regulations under subsection (5), the matters prescribed may include liquidity requirements, capital ratios, asset quality, risk exposures and funding costs.

Restructuring plans.

208 .— (1) The Minister, after consultation with the Governor and the Regulatory Authority, may direct a participating institution to draw up or amend, within a specified period, a restructuring plan for the purposes of this Act.

(2) A participating institution that is given a direction under subsection (1) shall submit a draft of the restructuring plan for the Minister’s approval within the period specified in the direction.

(3) The Minister, after consultation with the Governor and the Regulatory Authority, may direct a participating institution to amend a draft restructuring plan in a specified respect. The direction shall specify a period within which the participating institution is required to do so.

(4) A participating institution that is directed under subsection (3) to amend a draft restructuring plan shall do so within the period specified in the direction.

(5) If the Minister approves a draft restructuring plan, the participating institution concerned shall put the plan into effect in accordance with a timetable directed by the Minister.

(6) The Minister, after consultation with the Governor and the Regulatory Authority, may direct a participating institution to submit to the Minister a business plan in accordance with this section.

(7) A participating institution that is given a direction under subsection (6) shall submit a draft of the business plan for the Minister’s approval within the period specified in the direction.

(8) The Minister, after consulting with the Governor and the Regulatory Authority, may direct a participating institution to amend a draft business plan submitted to the Minister under subsection (7) in accordance with the direction.

(9) A participating institution that is directed to amend a draft business plan under subsection (8) shall comply with the direction within the period specified in the direction.

(10) A participating institution shall take all reasonable steps to ensure that any draft business plan submitted to the Minister accurately contains all relevant information. If the Minister approves a draft business plan, the participating institution shall take all reasonable steps to implement that plan.

(11) The Minister shall not approve a restructuring plan or business plan that does not comply with the law of the State and of the European Communities relating to competition and with the laws of the European Communities governing State aid.

Compliance with directions.

209 .— (1) Where the Regulatory Authority is of the opinion that a participating institution has not complied with a direction under this Part, the Regulatory Authority may apply to the Court for an order that the institution comply with the direction.

(2) On hearing an application under subsection (1), the Court may order the participating institution concerned to comply with the relevant direction or refuse the application, as it thinks fit.

(3) An application under subsection (1) shall be made summarily.

(4) When dealing with an application under subsection (1) the Court may make any interim or interlocutory order it considers appropriate.

(5) The Court shall not deny interim or interlocutory relief referred to in subsection (4) solely on the basis that the Regulatory Authority would not suffer any damage if the relief were not granted pending conclusion of the proceedings.

(6) If the Court is satisfied that for reasons of commercial confidentiality a hearing under this section should be conducted otherwise than in public, the Court may so order.

Guidelines regarding lending practices.

210 .— (1) The Minister may issue guidelines—

(a) regarding lending practices and procedures to facilitate the availability of credit to classes of borrowers or potential borrowers including small and medium sized enterprises, and

(b) relating to the review of decisions of participating institutions to refuse credit facilities.

(2) The Minister shall cause a copy of guidelines issued under subsection (1) to be laid before each House of the Oireachtas as soon as practicable.

(3) A participating institution shall comply with any guidelines issued under subsection (1).