# The Regulated Covered Bonds Regulations 2008, Regulation 2: Eligible property

Extent: E+W+S+N.I.

(1) In these Regulations, “eligible property” in relation to a mixed asset class bond or programme means any interest in—
(a) subject to paragraph (1B), eligible assets specified in and compliant with the requirements contained in Article 129 of the capital requirements regulation;
(b) loans to a registered social landlord or, in Northern Ireland, to a registered housing association where the loans are secured—
(i) over housing accommodation; or
(ii) by rental income from housing accommodation;
(c) loans to a person (“A”) which provides loans directly to a registered social landlord or, in Northern Ireland, to a registered housing association, where the loans to A are secured directly or indirectly—
(i) over housing accommodation; or
(ii) by rental income from housing accommodation;
(d) loans to a project company of a project which is a public-private partnership project where the loans are secured by payments made by a public body with step-in rights;
(e) loans to a person (“B”) which provides loans directly to a project company of a project which is a public-private partnership project where the loans to B are secured directly or indirectly by payments made by a public body with step-in rights;
(f) other liquid assets.
(1A) In these Regulations, “eligible property” in relation to a single asset class bond or programme means, subject to paragraph (1B), any interest in eligible assets specified in and compliant with the requirements of one (and only one) of the following classes—
(a) class 1 (public sector assets): eligible assets referred to in subparagraph (a) and (b) of Article 129(1) of the capital requirements regulation, assets referred to in sub-paragraph (b), (c), (d) and (e) of paragraph (1) above and other liquid assets;
(b) class 2 (residential mortgage assets): eligible assets referred to in sub-paragraph (d) and (e) of Article 129(1) of the capital requirements regulation, and liquid assets;
(c) class 3 (commercial mortgage assets): eligible assets referred to in sub-paragraph (f) of Article 129(1) of the capital requirements regulation and liquid assets.
(1B) Assets in the following categories—
(a) exposures to a body which does not qualify for credit quality step 1 on the credit quality assessment scale set out in Part Three, Title II, Chapter 2 of the capital requirements regulations; ...
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
shall not be eligible property for the purposes of paragraph (1)(a) or (1A).
(2) Eligible property (and any relevant security) must be situated in an EEA state, the United Kingdom, Switzerland, the United States of America, Japan, Canada, Australia, New Zealand, the Channel Islands or the Isle of Man.
(3) In this regulation—
“the 1996 Act” means the Housing Act 1996 ;
“the 2001 Act” means the Housing (Scotland) Act 2001 ;
“housing accommodation”—
(a)in England and Wales, has the meaning given by section 63 of the 1996 Act (minor modifications: Part 1);
(b)in Scotland, has the meaning given by section 111 of the 2001 Act (interpretation); and
(c)in Northern Ireland, has the meaning given by Article 2 of the Housing (Northern Ireland) Order 1981 ;
“project company” has the meaning given by paragraph 15 of Schedule ZA1 to the 1986 Act or, in Northern Ireland, paragraph 15 of Schedule ZA1 to the 1989 Order;
“public body” means a body which exercises public functions;
“public-private partnership project” has the meaning given by paragraph 16 of Schedule ZA1 to the 1986 Act or, in Northern Ireland, paragraph 16 of Schedule ZA1 to the 1989 Order;
“registered housing association” means a body registered as a housing association under Chapter II of Part II of the Housing (Northern Ireland) Order 1992 ;
“registered social landlord”—
(a)in England and Wales, means a private registered provider of social housing or a body registered as a social landlord under Part 1 of the 1996 Act; and
(b)in Scotland, means a body registered as a social landlord under Part 2 of the Housing (Scotland) Act 2010;
“step-in rights” has the meaning given by paragraph 17 of Schedule ZA1 to the 1986 Act or, in Northern Ireland, paragraph 17 of Schedule ZA1 to the 1989 Order.
(4) Unless otherwise defined, any expression used in this regulation and the capital requirements regulation has the same meaning as in that regulation.

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Source: https://www.legislation.gov.uk/uksi/2008/346/regulation/2 (the official version)
Page: https://openlegislation.uk/regulated-covered-bonds-regulations-2008/regulation-2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.