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34 2009

National Asset Management Agency Act 2009

PART 3

Finance, Planning, Accountability and Reporting

Financing arrangements, expenses and advances from Central Fund.

46 .— (1) The expenses incurred by NAMA or a NAMA group entity in the performance of NAMA’s functions under this Act shall be charged on and paid out of funds at the disposal of NAMA and the NAMA group entities.

(2) The Minister may advance to NAMA or a NAMA group entity such sums of money as are necessary for the performance of its functions from the Central Fund or the growing produce of that Fund on such terms and conditions (including as to repayment of principal and interest) as he or she determines.

(3) Subsection (2) does not affect NAMA’s borrowing powers.

Financing arrangements — Minister may issue debt securities.

47 .— (1) The Minister may, whenever and so often as he or she thinks fit, create and issue such debt securities that he or she specifies by order, charged on the Central Fund or the growing produce of that Fund and ranking pari passu with debt securities issued by the Minister under section 54 of the Finance Act 1970

(a) bearing interest at such rate as he or she thinks fit, or no interest,

(b) for such cash or non-cash consideration or deferred consideration as he or she thinks fit, and

(c) subject to such terms and conditions as to repayment, repurchase, cancellation and redemption or any other matter as he or she thinks fit.

(2) When the Minister issues securities under this section he or she shall specify which of the following is the purpose of the issue:

(a) the financing of the general operations of NAMA and NAMA group entities;

(b) the providing of consideration for the acquisition of bank assets.

(3) Securities issued under this section shall be used only for the purpose specified under subsection (2).

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

48 .— (1) NAMA or a NAMA group entity may, whenever and so often as it thinks fit, create and issue debt securities—

(a) bearing interest at such rate as it thinks fit, or no interest,

(b) for such cash or non-cash consideration or deferred consideration as it thinks fit, and

(c) subject to such terms and conditions as to repayment, repurchase, cancellation and redemption or any other matter as it thinks fit.

(2) When NAMA or a NAMA group entity issues debt securities under this section NAMA or the NAMA group entity shall specify which of the following is the purpose of the issue:

(a) the financing of the general operations of NAMA or the NAMA group entity, as the case may be;

(b) the providing of consideration for the acquisition of bank assets.

(3) The Minister may guarantee debt securities issued by NAMA or a NAMA group entity under this section.

(4) Securities issued under this section shall be used only for the purpose specified under subsection (2).

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

49 .— (1) NAMA or a NAMA group entity may, whenever and so often as it thinks fit, create and issue subordinated debt securities of such class or type as it specifies—

(a) bearing interest at such rate as it thinks fit, or no interest,

(b) for such cash or non-cash consideration or deferred consideration as it thinks fit, and

(c) subject to such terms and conditions as to repayment, subordination, repurchase, cancellation or redemption or any other matter as it thinks fit.

(2) Subordinated debt securities issued under this section shall be used only for the purpose of providing part of the consideration for the acquisition of bank assets in accordance with section 92 .

(3) To the extent that the terms and conditions of the subordinated debt securities (including the terms of subordination) are referenced to or based on a measure of financial performance, the measure shall be the financial performance of NAMA in totality and not any part or parts of the acquired portfolio.

(4) Subordinated debt securities may be subject to different terms and conditions for different classes or types of those securities.

(5) The total amount of subordinated debt securities issued under this section shall not exceed 5 per cent of the aggregate total portfolio acquisition value. Such securities will be issued to the participating institutions pro rata.

Financing arrangements — limits on borrowings.

50 .— (1) NAMA may, from time to time, exercise its power to borrow, with or without the guarantee of the Minister, such sums of money as are required for the performance of its functions under this Act.

(2) The Minister may guarantee the repayment by NAMA or a NAMA group entity of the principal of any sum borrowed by NAMA or the NAMA group entity or the payment of interest on that sum or the repayment of both principal and interest.

(3) The aggregate of the principal of all sums outstanding for purposes other than the provision of consideration for the acquisition of bank assets shall not exceed €5,000,000,000 or such other amount that the Minister specifies by order for the purposes of this subsection.

(4) The aggregate of the principal of all debt securities issued to enable the provision of consideration for the acquisition of bank assets shall not exceed €54,000,000,000 or such other amount as the Minister may specify by order for the purposes of this subsection.

(5) Where the Minister proposes to make an order under subsection (3) or (4)

(a) he or she shall cause a draft of the proposed order to be laid before Dáil Éireann, and

(b) he or she shall not make the order unless and until a resolution approving of the draft has been passed by Dáil Éireann.

(6) Within 30 working days after any issue of debt securities under section 47 , 48 or 49 , the Minister shall lay before each House of the Oireachtas a statement giving details of the securities.

Application of Borrowing Powers of Certain Bodies Act 1996.

51 .— Section 5 of the Borrowing Powers of Certain Bodies Act 1996 does not apply to the giving of guarantees, letters of credit or other similar instruments by NAMA or a NAMA group entity.

Financing arrangements — treasury services.

52 .— The NTMA shall provide NAMA with treasury services and advice in connection with debt securities, any borrowings of NAMA and debt securities issued by NAMA or a NAMA group entity, and for any other purpose and in connection with the provision of such treasury services, may enter into transactions of a normal banking nature with any person, as agent of NAMA.

Annual statements.

53 .— (1) NAMA shall—

(a) for the financial year 2010, before 1 July 2010, and

(b) for each subsequent financial year 3 months before the commencement of it,

prepare a statement that complies with subsection (3), and submit the statement to the Minister.

(2) The Minister shall cause copies of each statement to be laid before each House of the Oireachtas not later than—

(a) in the case of 2010, 30 November 2010, and

(b) in the case of a statement for any other financial year, one month after the beginning of the subsequent financial year.

(3) A statement submitted to the Minister under subsection (1) shall specify—

(a) the proposed objectives of NAMA’s activities and those of each NAMA group entity for the financial year concerned,

(b) the proposed nature and scope of the activities to be undertaken,

(c) the proposed strategies and policies for achieving those objectives, and

(d) the uses to which it is proposed to apply NAMA’s resources and those of each NAMA group entity.

(4) The Minister may omit from a copy of a statement laid before the Oireachtas under subsection (2) any matter that would disclose confidential information. If the Minister omits such matter from such a copy, he or she shall insert in its place a statement that matter has been omitted and a general description of the omitted matter.

Annual accounts.

54 .— (1) NAMA shall keep, in the form that the Minister directs, proper and usual accounts of money received and expended by it and of all financial transactions undertaken in the performance of its functions.

(2) The accounts shall include a separate account of the administration fees and expenses incurred by NAMA and of each NAMA group entity in the performance of its functions.

(3) The accounts shall include—

(a) a list of all debt securities issued for the purposes of this Act,

(b) a list of debt securities issued to and redeemed by each participating institution,

(c) a list of all advances made to NAMA from the Central Fund,

(d) a list of all advances made by NAMA and each NAMA group entity,

(e) a list of all asset portfolios held by NAMA and each NAMA group entity, and the book valuation placed on each portfolio, and

(f) a list of Government support measures, including any guarantees, received by NAMA and each NAMA group entity,

and may include any other information that the Minister considers appropriate.

Quarterly reports.

55 .— (1) Every 3 months NAMA shall make a report (referred to in this Act as a “ quarterly report ”) to the Minister of its activities and the activities of each NAMA group entity.

(2) The first quarterly report shall be for the period ending on 31 March 2010 and shall be submitted to the Minister on or before 30 June 2010. Each subsequent quarterly report shall be for the period ending on a 30 June, 30 September, 31 December or 31 March, and shall be submitted to the Minister within 3 months after the end of the relevant quarter.

(3) The Minister shall cause copies of a quarterly report to be laid before each House of the Oireachtas, and shall send a copy of the report to a Committee (or a subcommittee of such a Committee) appointed by either House of the Oireachtas or jointly by both Houses of the Oireachtas (other than the Committee on Members’ Interests of Dáil Éireann or the Committee on Members’ Interests of Seanad Éireann) to examine matters relating to NAMA.

(4) A quarterly report shall be in the form, and shall include information regarding the matters, that the Minister directs.

(5) In a quarterly report, NAMA shall report on its compliance with—

(a) any guideline issued by the Minister under section 13 , and

(b) any direction given by the Minister under section 14 .

(6) A quarterly report shall include the following information for the relevant quarter:

(a) the number of all loans outstanding and the condition of those loans, categorised as between performing and non-performing loans;

(b) non-performing loans categorised as to the degree of default, distinguishing where default has occurred on capital payment as well as interest payments;

(c) the number of loans being foreclosed or otherwise enforced during the relevant quarter;

(d) the number of cases where liquidators and receivers have been appointed in the relevant quarter;

(e) a list of all legal proceedings (except any proceeding in relation to which a rule of law prohibits publication) commenced by NAMA and each NAMA group entity in relation to bank assets during the quarter, setting out for each proceeding—

(i) its title,

(ii) the parties to the proceeding, and

(iii) the reliefs sought by NAMA or the NAMA group entity concerned;

(f) a schedule of any finance raised by NAMA and each NAMA group entity in the relevant quarter;

(g) sums recovered from property sales in the relevant quarter;

(h) other income from interest-bearing loans owned by NAMA and each NAMA group entity;

(i) an abridged balance sheet of the assets and liabilities of NAMA and each NAMA group entity;

(j) a complete schedule of income and expenditure of NAMA and each NAMA group entity in the relevant quarter;

(k) an updated schedule of all information described in subsections (2) and (3) of section 54 ;

(l) any other matter directed by the Minister.

Other reports to Minister.

56 .— (1) The Minister may require NAMA to report to him or her, at any time and in any format that the Minister directs, on any matter, including—

(a) the performance of its functions under this Act, and

(b) any information or statistics relating to the performance of its functions.

(2) NAMA shall comply with a requirement of the Minister under subsection (1).

(3) The content of a report provided to the Minister under this section may be taken to be confidential information.

(4) A reference in subsection (1) to the performance of the functions of NAMA includes the performance of those functions by a NAMA group entity.

Audit of accounts by Comptroller and Auditor General.

57 .— (1) NAMA and each NAMA group entity shall submit its accounts to the Comptroller and Auditor General for audit within 2 months after the end of the financial year to which they relate, and the Comptroller and Auditor General shall—

(a) if he or she is satisfied that the accounts represent a true and fair view of the state of the affairs of NAMA or the NAMA group entity concerned, so certify, or

(b) otherwise qualify the accounts.

(2) NAMA shall present a copy of the accounts of NAMA and each NAMA group entity as audited to the Minister as soon as may be and the Minister shall cause a copy of the audited accounts to be laid before each House of the Oireachtas.

Accountability to Committee of Public Accounts.

58 .— (1) The Chairperson, and the Chief Executive Officer, shall, whenever required by the Committee of Dáil Éireann established under the Standing Orders of Dáil Éireann to examine and report to Dáil Éireann on the accounts and reports of the Comptroller and Auditor General, give evidence to that Committee on—

(a) the regularity and propriety of the transactions recorded or required to be recorded in any book or other record or account subject to audit by the Comptroller and Auditor General that NAMA or a NAMA group entity is required by or under an enactment to prepare,

(b) the economy and efficiency of NAMA and each NAMA group entity in its use of the resources made available to it under this Act,

(c) the systems, procedures and practices employed by NAMA and each NAMA group entity for evaluating the effectiveness of its operations, and

(d) any matter affecting NAMA or any NAMA group entity referred to in—

(i) any special report of the Comptroller and Auditor General under section 11(2) of the Comptroller and Auditor General (Amendment) Act 1993 , or

(ii) any other report of the Comptroller and Auditor General (in so far as it relates to a matter specified in any of paragraphs (a) to (c)) that is laid before Dáil Éireann.

(2) In appearing before a Committee referred to in subsection (1), the Chief Executive Officer appears as an accountable person and not as an accounting officer.

(3) The Chairperson and the Chief Executive Officer, in giving evidence under subsection (1), shall not question or express an opinion on the merits of any policy of the Government or a Minister of the Government or on the merits of the objectives of such a policy.

Appearances before another Oireachtas Committee.

59 .— (1) The Chairperson and the Chief Executive Officer of NAMA shall, if requested to do so by a Committee (or a subcommittee of such a Committee) appointed by either House of the Oireachtas or jointly by both Houses of the Oireachtas (other than the Committee on Members’ Interests of Dáil Éireann or the Committee on Members’ Interests of Seanad Éireann) to examine matters relating to NAMA—

(a) attend before that Committee, and

(b) provide that Committee with such information as it requires.

(2) The Chairperson and the Chief Executive Officer, in giving evidence under subsection (1), shall not question or express an opinion on the merits of any policy of the Government or a Minister of the Government or on the merits of the objectives of such a policy.

Repayment to Central Fund to redeem debt.

60 .— (1) NAMA or a NAMA group entity shall repay any funds advanced to it by the Minister out of the resources available to NAMA and the NAMA group entities from time to time.

(2) NAMA may, from time to time, after consultation with the Minister—

(a) use any surplus funds of NAMA to redeem and cancel debt securities issued under this Act, and

(b) transfer any surplus funds remaining after that redemption to the Central Fund.

(3) The assets of NAMA and of any NAMA group entity at the eventual dissolution of NAMA will be transferred to the Minister or paid into the Exchequer as the Minister directs.