National Asset Management Agency Act 2009

65.

Capacity of applicant credit institutions, etc.

65.— (1) An applicant credit institution and each of its subsidiaries shall be taken to have, and always to have had, as part of its functions and objects, the power and capacity to—

( a) apply for designation as, and become, a participating institution pursuant to this Act,

( b) warrant the truth, accuracy and completeness of the information supplied to NAMA in relation to bank assets, and

( c) indemnify NAMA in relation to—

(i) any breach of such a warranty, or

(ii) any claim or obligation under section 135 .

(2) An applicant credit institution and each of its subsidiaries shall be taken to have, and always to have had, as part of its functions and objects, the power and capacity to engage in the following activities in so far as they relate to its designated bank assets:

( a) the provision of credit facilities;

( b) the entering into of joint venture, partnership, co-ownership, shareholder or other similar agreements;

( c) the entering into of contracts (including contracts in a currency other than the currency of the State) whose purpose or one of whose purposes is—

(i) to eliminate or reduce the risk of loss arising from changes in interest rates, currency exchange rates or from other factors of a similar nature, or

(ii) to eliminate or reduce the costs of raising funds or borrowing or the cost of other transactions carried out in the ordinary course of business;

( d) the entering into of contracts to increase the return on an investment (including a credit facility);

and shall be taken to have and always to have had, as part of its functions and objects, the power to engage in any other transaction in so far as it relates to the acquisition of designated bank assets by NAMA.

(3) Nothing in this section limits the liability of an applicant credit institution or subsidiary to any person based on a transaction beyond its powers. However, any claim based on such a transaction—

( a) is enforceable only against the applicant credit institution or subsidiary and not against NAMA or any NAMA group entity, and

( b) gives rise to a remedy in damages only.