Transposition into Spanish law of the EU Directive on covered bonds by Royal Decree-Law 24/2021
Royal Decree-Law 24/2021, of November 2, has transposed into Spanish law several EU directives, including Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019 on the issue of covered bonds and covered bond public supervision and amending Directives 2009/65/EC and 2014/59/EU.
These are the key aspects of the Royal Decree-law:
• It groups together in a single legal instrument the previously dispersed regime for covered bonds.
• It specifies which entities can issue covered bonds (credit institutions) and provides a single definition of “covered bonds.”
• It harmonizes the criteria and sets the conditions for issuing bonds, and it determines the cover pool serving as collateral, the rules applicable in the event of insolvency and liquidation of the issuer, the cover pool monitor and the requirement to have a liquidity buffer.
• It provides for intragroup pooled covered bond structures, the use of joint funding and extendable maturity structures.
• It implements new rules on mortgage notes and mortgage transfer certificates.