Cover register

(1) The cover assets used to cover the Pfandbriefe and the claims from derivative transactions under section 4(3) must be entered individually by the Pfandbrief bank in the register kept for the respective Pfandbrief class (cover register). Derivatives may only be entered with the consent of the trustee and the Pfandbrief bank's counterparty; an entry without the required consent is deemed not to have been made. Where an asset needed for cover in conformity with this Act is repaid, or such an asset loses its suitability for cover, the person responsible for the entry of cover assets must without delay enter corresponding substitute assets in the cover register. Several sub-registers, satisfying the requirements of the cover register, may be established for the respective cover register, where this does not impair the clarity and function of the cover register. BaFin may order that the entries from one or more sub-registers be transferred to the main register within an appropriate period.
(1a) Insofar as registered assets are intended only in part for the cover of the Pfandbrief bank's Pfandbriefe, the cover register must contain precise particulars of the extent of the part intended for cover and its ranking as against the part not intended for cover; in case of doubt, the part intended for cover has priority. Subject to a partial taking into cover in a lower amount under the first sentence, mortgages are always deemed intended for cover only up to the amount of the lending limit under sections 14 and 22(2) and section 26b(2). The lending limit is calculated on the basis of the registered mortgage lending value; the part intended for cover has priority in case of doubt. Where registered assets are wholly or partly administered by the Pfandbrief bank as trustee, the cover register must contain precise particulars of the creditor of the transfer claim; the first and second sentences apply accordingly to partial trust administration. Trust administration within the meaning of the fourth sentence exists where the administered assets are, as between the trustor and the Pfandbrief bank or its creditors, deemed assets of the trustor although they have not been transferred, in particular in the case of administration as a refinancing undertaking under sections 22a to 22o of the Banking Act.
(1b) The transmission of the personal data to be entered in the cover register to a Pfandbrief bank that is obliged, for the purpose of refinancing through Pfandbriefe, under the Cover Register Ordinance, to enter the data in its cover register, is permitted for the pursuit of legitimate interests.
(1c) Where the Pfandbrief business of a Pfandbrief bank is transferred, wholly or in part, by way of universal succession to another Pfandbrief bank, the cover registers kept by the transferring bank, including existing sub-registers, form, with effect from the transfer, separate sub-registers of the cover register of the respective Pfandbrief class of the acquiring Pfandbrief bank. The cover assets entered in these separate sub-registers must be transferred, within an appropriate period, to the main register and the corresponding sub-registers of the respective cover register of the acquiring Pfandbrief bank.
(2) The Pfandbrief bank must ensure, in a suitable manner, that, in the event of loss of or damage to the cover register, the information necessary for its restoration is at all times kept securely.
(3) The Federal Ministry of Finance must, by statutory instrument not requiring the consent of the Bundesrat, determine details of the form and required content of the cover register and of the entries to be made, including the procedure and documentation for the trustee's consent under subsection (1), second sentence and section 8(4), first sentence. Before issuing the statutory instrument, the peak associations of the credit industry must be heard. The Federal Ministry of Finance may transfer this authorisation, by statutory instrument, to the Federal Financial Supervisory Authority.