Tom Parlon (Laois-Offaly, Progressive Democrats)

I move amendment No. 1:

In page 10, between lines 7 and 8, to insert the following:

"(q) in the definition of "non-performing", in paragraph (b), by inserting "(but disregarding, for the purposes of this paragraph, section 4(4))" after"section 4(1)",".

This amendment concerns the definition of non-performing in the principal Act. Under the Bill as published securitised mortgage credit assets are regarded as non-performing after default in payments for three months or more. While this period is appropriate for mortgage loans it is not appropriate for securitised mortgage credit assets which are tranches of securitisation bonds. The effect of this amendment is to deem securitised mortgage credit assets to be non-performing if payments on them are in default for ten days or more. This is the same period of time that applies to public credit assets.

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