Article 121 Interpretation of Chapter 1

(1)

In this Chapter—

F1“covered bond” means a regulated covered bond within the meaning of regulation 1(2) of the Regulated Covered Bonds Regulations 2008; and;
“relevant institution” means an institution, other than a mortgage credit institution, which is authorised by the PRA or FCA and is not part of a group subject to supervision on a consolidated basis in accordance with F2the capital requirements regulation and CRR rules.

(2)

“Mortgage credit institution” means an institution—

(a)

which does not have permission under Part 4A of FSMA to carry on the regulated activity of accepting deposits (within the meaning given by section 22 of that Act, read with Schedule 2 and any order under section 22); and

(b)

whose lending—

(i)

relates to an agreement under which the obligation of the borrower to repay is secured, or is to be secured, by a legal mortgage on land; and

(ii)

is financed by covered bonds M1.

F3(3)

In this Chapter, references to the “minimum requirement for own funds and eligible liabilities” include any transitional minimum requirement which the Bank determines that an institution is required to hold in accordance with article 123(1C).

Annotations

Textual amendments

F1: Words in art. 121(1) inserted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 66(a); 2020 c. 1, Sch. 5 para. 1(1)
F2: Words in art. 121(1) substituted (1.1.2022) by The Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2021 (S.I. 2021/1376), regs. 1(3), 19(8)
F3: Art. 121(3) inserted (1.1.2026) by The Bank Recovery and Resolution (Amendment) Regulations 2025 (S.I. 2025/862), regs. 1(2), 2(2)

Marginal citations

M1: For the meaning of “covered bond” see the recovery and resolution directive, Article 2.1, point (96).

Notes on the whole SI

Textual amendments

F1: Order revoked (14.12.2023 for the revocation of art. 227) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pt. 2 (with s. 1(4)); S.I. 2023/1382, reg. 2(c)(x)