Ordinance To The Law On Mortgage Loans And Mortgage Bonds, Etc.

Original Language Title: Bekendtgørelse af lov om realkreditlån og realkreditobligationer m.v.

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Read the untranslated law here: https://www.retsinformation.dk/Forms/R0710.aspx?id=121133

Overview (table of contents) Chapter 1 scope

Chapter 2 Mortgages

Chapter 3 the issuance of mortgage bonds

Chapter 4 Liability conditions, etc.

Chapter 4 (a) covered mortgage bonds and covered bonds

Chapter 5 Monitoring

Chapter 6 appeals

Chapter 7 penal provisions

Chapter 8 entry into force and transitional provisions the full text announcement of law on mortgage loans and mortgage bonds, etc. 1)

Hereby promulgated law on mortgage loans and mortgage bonds, etc., see. lovbekendtgørelse nr. 1412 by 10. December 2007, with the changes resulting from section 3 of Act No. 219 of 5. April 2008, § 6 of the law No. 515 of 17. June 2008 and section 3 of Act No. 517 of 17. June 2008.

Chapter 1

The scope of the

§ 1. This law shall apply to mortgage bonds, covered bonds, covered bonds and other securities issued by mortgage companies, and the mortgage, which shall be granted on the basis thereof. In addition, the law applied to foreign credit institutions issuing mortgage bonds here in the country and the mortgage, which shall be granted on the basis thereof.

(2). For foreign credit institutions activities, see. (1), (2). paragraph, applies only to section § 2-19 and 34-43. For foreign credit institution which is a group connected with Danish mortgage companies, however, also applies to sections 20 and 21.

Chapter 2

Mortgage

Security for mortgage loans

§ 2. Mortgage provided for registered mortgages according to the rules laid down in this chapter. Loan without a mortgage can be granted to public authorities or against joint and several guarantee from a public authority as referred to in section 152 c, paragraph 1, no. 3-5 of the law on financial business.

(2). Mortgages must not be granted against collateral in the form of ejerpantebreve and skadesløsbreve. In cases where there is security for mortgages also provided security in movable property, can skadesløsbreve be used for movable property mortgage.

(3). With mortgage loans made against the registered mortgage on immovable property, see. (1) 1. paragraph, shall be assimilated to secured loan, where the letter is reported to the registration if there is provided the necessary security for mortgage registration and final letter the Department without undue delay, provide definitive things like mortgage letter. This only applies for loans made on the basis of covered mortgage bonds.

Maturities and repayment profiles

§ 3. The maximum maturity is 30 years, see. However, paragraph 2. In determining the loan term and interest-only profile must take into account the expected impairment and the pantets of the mortgage current loan limits, see. § 5.

(2). The maximum maturity is 35 years for loans to general housing, youth homes and private cooperative housing, where lending is done on the basis of the commitment of aid after the law on public housing and supported private cooperative housing etc.

§ 4. Loans for home ownership in every season and holiday houses can not be granted, regardless of the security location, so the amortized slower than a 30-year loan that is amortized over the term of a performance, which is a fixed percentage of the principal amount (annuity), see. However, paragraph 2.

(2). The requirement referred to in paragraph 1 may be waived in the case of the loan within a period of up to 10 years in accordance with the requirements of section 3 (1), (2). PT.

Lending limits, etc.

§ 5. Within a loan limit of 80 per cent of the property's value can be granted loans for the following property categories:





1) home ownership for all-year use.

2) Private cooperative housing.

3) Private residential property for rental, including friplejeboliger.

4) General housing.

5) Youth housing.

6) senior housing, etc.

7) property for social, cultural and educational purposes.





(2). Within a loan ceiling of 70 per cent of the property's value can be granted loans to agricultural and forest properties, nurseries, etc.

(3). Within a loan limit of 60 per cent of the property's value can be granted loans for the following property categories:





1) second homes.

2) Office and commercial premises.

3) industrial and craft properties.

4) Collective security of energy installations.





(4). Within a loan ceiling of 40 per cent of the property's value can be granted loans to other properties, including vacant-land.

§ 6. (repealed)

§ 7. Loans can be granted in addition to clause 5 regardless of the loan limit for repayment of mortgage loans in his own Department as well as the above loans. Loans after 1. paragraph meted out with a maximum corresponding to redemption proceeds in cash amount and the costs associated with delivering and granting of loans.

(2). There may only be granted loans in accordance with paragraph 1, provided that this does not cause the security deteriorates significantly the mortgage.

(3). Paragraph 1 shall apply mutatis mutandis in repayment of mortgage loan in another institution, provided that the valuation for purposes of determining the amount of the original loan is made on the basis of approved acquisition summer after law on social housing and supported private cooperative housing, etc., Act on housing or law on housing for the elderly and persons with disabilities.

(4). By loans granted for repayment of loans in certain non-profit housing departments, see. Act on certain non-profit housing departments reprioritisation, etc., cannot be paid, overdue futures services with accrued interest thereof included in loan udmålings base.

Payment against letter of guarantee, etc.

§ 8. Once the conditions for payment of the loan are fulfilled, may be granted loans, although mortgage letter is fraught with legal precedents are retsanmærkninger, where the lodging of a security, that these will be deleted.

(2). Once the conditions for payment of the loan are fulfilled, may be granted loans without registered mortgage letter, if the lodging for the emergence of registered mortgage letter.

(3). Once the conditions for payment of the loan are fulfilled, may be granted loan, if the borrower does not have registered title to the property, where the lodging of a security, the borrower gets final title to the property.

(4). Once the conditions for payment of the loan are fulfilled, may be granted loans without it in section 11, paragraph 3, the document referred to, where the lodging for the emergence of this document.

(5). For the construction as well as renovations and addition, etc. can be granted loans on the basis of the property's expected value (forhåndslån), where the lodging of a security, the loan will be discharged or reduced, if the loan is not following the expiry of the deadline for completion of construction could be done with the appropriated amount.

(6). To the extent that a loan is issued on the basis of covered mortgage bonds and covered bonds can be paid by the loan before the final registration, see. paragraphs 1 to 5, if the lodging of a security in accordance with section 152 c, paragraph 1, no. 3-7 of the law on financial business. If security is given in the form of a guarantee from a financial institution, the guarantee will be subject to the 15-percent limit imposed by section 152 c, paragraph 1, no. 6 and 7, in the financial business Act, unless the guarantee lodged pursuant to section 152 c, paragraph 1, no. 1, 2. point, in the financial business Act, § 2, paragraph 3, of this law. The guarantee shall, however, be in the 15-percent limit, if it is prepared in accordance with paragraphs 3, 4 or 5.

(7). The Danish financial supervisory authority may lay down rules on the granting of loans, etc. in accordance with paragraphs 1 to 6.

(8). The Danish financial supervisory authority may grant a derogation from the requirement referred to in paragraph 6, 3. point, that guarantees, which shall be made in accordance with paragraph 3, to be included in the 15-percent limit.

§ 9. In the security amount for a mortgage institution's obligations can mortgages for loans in general housing and friplejeboliger funded by mortgage loans with government support, that a reorientation of its performance pursuant to the law on certain non-profit housing departments reprioritisation, etc., as well as mortgages for inkonverterbare loan, which will be taken over by the Financial Agency pursuant to the law on countering the indlåsningseffekter on inkonverterbare mortgages, etc., to be replaced by a corresponding claim on the Treasury. The claim may be wholly or partially liquidated by extraordinary Treasury leaving to the Foundation by the mortgage to the relevant loan corresponding mortgage bonds.

(2). Holders of rights over bonds, if the security basis covered and amended by paragraph 1 may not require the bonds redeemed or otherwise make claims towards mortgage institution.

Valuation of properties and measurement of mortgage

§ 10. Mortgage institution shall recruit a cash value of the property for the use of the loan amount.

(2). The value must be within the amount as a savvy acquirer with knowledge of price and market conditions for the type property must be estimated that would pay for the property (market value). Conditions that are conditional on a particularly high price, shall not be included in the valuation.

(3). Mortgage institution shall take into account in the valuation of the possible risk of changes in market or structural conditions.

(4). Mortgage credit Institute may derogate from paragraphs 2 and 3 in the following cases:
1) Replacement sum after deduction of able and character can be used in the valuation of properties for social, cultural and educational purposes, provided that this is reasonable having regard to the operating results, alternative applications and the markets in General. Replacement sum may not, however, be used as a basis for real estates drive after business principles.

2) Replacement sum after deduction of able and character can be used in the valuation of industrial and craft buildings and collective security of energy installations, if this is justifiable, taking into account the borrower's credit worthiness and the from property-run business profitability. The prerequisite for this is that the property owner or a company associated with the owner uses more than half of the property.





§ 11. Loans may be granted on the basis of real property owned by the borrower. All adkomsthavere must as customers bear mortgage letter, see. However, paragraphs 2 and 3.

(2). The provision in paragraph 1, 2. paragraph, may be waived if the loan is granted in accordance with the specific legislation in the field of agricultural area.

(3). Loans can be granted on the basis of a share of stock of an ideal real estate, if there is one thing like document that maps one things like exclusive use to the Agency. All adkomsthavere for the ideal share of stock shall be affixed on the mortgage which the customer letter.

(4). In addition to the grounds and buildings can building accessories, see. Land Registration Act § 38, as well as the in the land section 37, paragraph 1, the said accessories covered by things like mortgage letter in the real estate, be included in the valuation of the property.

(5). In the valuation of the property regardless of paragraph 4 be included it for the property belonging accessories not covered by things like mortgage letter in the immovable property, see. Land Registration Act sections 37 and 38, if only due to the fact that the accessory is owned by someone other than the owner of the property, and where, as security for the loan in the real estate obtained a mortgage in this accessory in virtue of the land registration Act § 47 or section 47 (b), paragraph 2.

(6). Inflation-indexed loans to properties except for collective security of energy installations can only be granted on the basis of the value of land and buildings as well as building accessories, see. Land Registration Act § 38.

§ 12. FSA sets out detailed rules on valuation.

(2). The Danish financial supervisory authority may impose restrictions on access to include accessories as mentioned in section 11 (4).

(3). The Danish financial supervisory authority may lay down rules on access to derogate from article 10, paragraphs 2 and 3, by borrowing against the property owned by a public authority and by lending against full public guarantee.

§ 13. Loans meted out so as to cash proceeds is within the specified in §§ 5-7 loan limits for the respective property category.

(2). FSA sets out rules about borrowing measure.

§ 14. FSA sets out rules about which properties that belong to the individual property categories, as well as on the repayment of the loan if the property is transferred to other real estate category.

(2). If a property is made up of several property categories, valuation and loan measure happen separately for each property categories, see. However, paragraph 3.

(3). If a real estate category accounts for at least 80 per cent of the property's total gross floor area of the property, the entire property belånes in accordance with the rules for this real estate category.

§ 15. (Repealed).

Mortgages outside Denmark

§ 16. The Danish financial supervisory authority may permit derogations from the provisions of the Act in respect of lending on the Faroe Islands and Greenland, to the extent it summonsed by the specific conditions in these regions.

§ 17. By lending outside Denmark, Faroe Islands and Greenland apply section 4 does not.

(2). The Danish financial supervisory authority may grant derogations from article 2, paragraph 2, 1. paragraph, by lending outside Denmark, Faroe Islands and Greenland. In special cases, grant derogations from the provisions of the Danish financial supervisory authority also maximum maturities in § 3.

(3). The Danish financial supervisory authority may establish lower limits than those specified in § 5 of the loan said at a mortgage lending institution outside Denmark, Faroe Islands and Greenland.

(4). Mortgage companies can outside Denmark, Faroe Islands and Greenland provide loans in addition to loan limits against joint and several guarantee by a public authority, a credit institution or an insurance company. If the guarantee has been lodged by a credit institution or an insurance undertaking, however, the loan can only be granted on the basis of the issue of securities other than mortgage bonds.

Chapter 3

The issuance of mortgage bonds

Exclusive right

§ 18. Mortgage credit institutions authorised in this country has the exclusive right to issue mortgage bonds in this country.

(2). Notwithstanding paragraph 1, a foreign credit institutions issuing mortgage bonds in this country, if the institution after the financial business Act may exercise of the business of credit institutions in this country and meet the following conditions:





1) the bulk of the Department's activities should be lending against mortgages on the basis of the issue of debentures or other securities. If the Foundation is consolidated with a Danish mortgage institution, must also comply with the Foundation's activities business area for Danish mortgage companies in the financial business Act.

2) the institution's lending and bond issue must be regulated by a balance principle. If the Foundation is consolidated with a Danish mortgage institution, an institution must also comply with sections 20 and 21.

3) mortgage bonds, which the Department will issue in this country, the home Member State's legislation should give the holder the same legal position as holders of mortgage bonds has under section 27.





Bond issue and balance principle

§ 19. Mortgage bonds issued before 1 May 2004. July 2007 shall be negotiable debenture admitted to trading on regulated markets in countries within the European Union or in countries with which the community has entered into an agreement on financial matters, or similar markets in other countries.

§ 20. Funds obtained by the issuance of mortgage bonds or covered mortgage bonds or other securities may only be used for lending against mortgages or lending to the public authority or against joint and several guarantee by a public authority, see. However, paragraphs 2 and 3. There may, however, be made additional collateral for covered bonds in accordance with § 33 (d) of paragraph 1.

(2). The Danish financial supervisory authority can lay down rules that limited resources can be used for anything other than lending against mortgages.

(3). The Danish financial supervisory authority may allow in the consolidated relationship can be issued mortgage bonds and other securities in a mortgage lender to finance mortgages in another mortgage lender.

§ 21. The Danish financial supervisory authority shall lay down detailed rules on the limitation of risks in connection with the issuance of mortgage bonds, covered bonds, covered bonds and other securities, including interest-rate risks, currency risks and options risks.

Chapter 4

Liability conditions, etc.

§ 22. The granting of mortgage loans and the issuance of mortgage bonds and other securities to the financing of which may be in the series. The issuance of mortgage bonds and other securities can not be done in the same series.

(2). It can be in terms of a series determined that the holders of mortgage bonds or other securities alone can correct their claim against the relevant series or series, as hereby jointly and severally, without prejudice. Article 24, paragraph 4.

§ 23. For loan borrowers liable both with the pledged and personally against the mortgage Institute respectively, incidentally, series.

(2). For the obligations of the mortgage Department, moreover, has undertaken, the borrowers do not.

§ 24. It can be in terms of a series determined that the borrowers out of the loan jointly and severally liable towards the series for an amount equal to a specified percentage of the mortgage of your principal after deduction of a proportional share of series reservefondens funds. The borrowers shall not be liable personally for this amount.

(2). A series or group of series with series reserve fund can record hybrid core capital and equity loan. The joint and several liability under paragraph 1 may not be invoked against the borrowers to cover claims by depositors of hybrid core capital and equity loan. For series with refundable opened before the 1. January 1973, see 1. paragraph shall not apply.

(3). A series or group of series with series reserve fund shall not be liable for the obligations of the mortgage Department, moreover, has undertaken.

(4). It can be in terms of a series determined that the series be liable for other series commitments. Such conditions can only be determined if these other series contain corresponding conditions. In the series, which after 1. paragraph shall be liable between themselves, there must only be issued mortgage bonds, see. section 22 (1), (2). PT.

§ 25. For the series, in which borrowers jointly and severally liable, or where there has been given under section 22, paragraph 2, should the mortgage Institute to create a series of reserve fund. For other series or groups of Series Department can choose to create a series of reserve fund.
(2). It can in statutes or conditions determined that borrowers by loan repayment of the loan is entitled to receive a share of the series performance reserve.

(3). The show's revenue consists of interest and the like of mortgages, deposits, contributions, fees and similar income as well as the return of the franchise's assets and off-balance sheet items. The show's costs consist of interest and the like of bonds and other securities, payments of reservefonds shares, the cost of administration and the like, expenses associated with the capture and return of hybrid core capital and equity loan loss and provisions for annual losses on the show's assets and likely off-balance sheet items as well as the proportion of mortgage credit Institute's tax.

section 26. Series reservefondens funds must be kept separate from other funds in the mortgage Department.

(2). There must be a transfer of funds to a series or group of series with series reserve fund from mortgage Department, moreover, if it is necessary to meet the solvency requirement for the series or group of series, unless such transfer causes the mortgage institution, incidentally, will no longer be able to fulfil the solvency requirement.

(3). Mortgage Department can in statutes or loan terms provide that funds be transferred from a series or group of series with series reserve fund to the mortgage institution, incidentally, if the series is or will be greater than the required performance reserve.

(4). Financial instruments shall only be counted as assets or liabilities in a series or group of series with series Reserve Fund, if they are used to hedge risks between assets relating, on the one hand, and on the other hand the series issued mortgage bonds, covered bonds and covered bonds if it in the agreement on the financial instrument are determined, to the institution's mortgage payments , bankruptcy or failure to comply with the obligation to provide additional security under section 33 (d), paragraph 1, is not the default reason.

(5). FSA sets out detailed rules about the series.

§ 27. Be declared a bankrupt mortgage lender, used the series ' means a fixed amount after deduction of expenses to the bankrupt's estate and similar treatment, including the costs of the insolvency administrator, personnel, etc., for the payment of claims from holders of mortgage bonds, covered bonds, covered bonds and other securities of that series or group of reserve funds and requirements series series with on the bankruptcy Decree passing from accrued interest on those debts. Then they are covered in section 25 (2), the said requirements. Then covered the debt, as a mortgage institution has admitted to use in order to provide additional security, see. § 33 e. Excess funds form part of the estate, then see. the Bankruptcy Act section 32.

(2). Be declared a bankrupt mortgage lender, applied funds measured after deduction of expenses to the bankrupt's estate and similar treatment, including the costs of the insolvency administrator, personnel, etc., in the Department in addition to the payment of claims from holders of mortgage bonds and other securities that are not issued in series with the reserve funds, as well as requirements on the series from bankruptcy Decree passing accrued interest on those debts. Resources used after 1. point, however, may not exceed those for mortgage bonds and other securities representing mortgages as well as an amount equal to 8 percent of mortgage brevenes risk-weighted value. Excess funds are included in the estate, then see. the Bankruptcy Act section 32.

(3). Be declared a bankrupt mortgage lender, equated counterparts on the financial instruments concluded to hedge risks in a series or group of series of mortgage bonds, covered mortgage bonds or special covered bonds, see. Article 26, paragraph 4, bankruptcy law with the holders of mortgage backed securities, covered mortgage bonds or special covered bonds in that series or group of series, see. (1) 1. point, and §§ 31 and 32.

section 27 (a). Holders of bonds that have lost the designation covered mortgage bonds or special covered bonds, see. section 33 (d), paragraph 2, and counterparties in financial instruments retaining the bankruptcy legal status granted to the holders of covered bonds, covered bonds and financial counterparts. Similarly, coverage of the debt, as a mortgage institution has admitted to use in order to provide additional security, see. § 33 e.

(2). The rules in § § 27 (b) and 28-33 shall apply mutatis mutandis to bonds, who has lost the designation covered mortgage bonds or covered bonds and financial instruments linked to it.

section 27 (b). Proceeds from loans, which mortgage companies have admitted to the use of the requirement to provide additional security, see. section 33 (d) of paragraph 1, which are not part of a series or group of series, in the case of mortgage credit Foundation's bankruptcy serve to cover by the holders of the covered bonds or covered mortgage bonds and counterparties of the financial instruments in the series or group of series, for which the loan is recorded for use in order to provide additional security. Any excess funds to be paid to lender.

section 28. The opening of bankruptcy over a mortgage lender can not by holders of mortgage bonds, covered bonds, covered bonds and other securities or of lenders under section 33 (e), paragraph 1, be invoked as a reason for the early repayment of the payment obligations and does not deprive the mortgage Institute's borrowers of their right to make full or partial repayment of mortgages or loans granted on the basis of issuance of covered bonds or special covered bonds in accordance with the applicable special redemption terms of the loan.

(2). A mortgage lender does not comply with the obligation to provide additional security under section 33 (d) of paragraph 1, can this not by the holders of the covered bonds or special covered bonds or of lenders under section 33 (e), paragraph 1, be invoked as a reason for the early repayment of the payment obligations.

section 29. Bankruptcy cannot pay an allowance for dealing with claims from holders of mortgage bonds, covered bonds, covered bonds and other securities at an earlier date, than the mortgage Department was entitled to free themselves by provision of the service.

(2). The bankruptcy estate may not terminate the loan agreements secured by things like mortgage letter in real estate more widely, than it was for the mortgage credit Institute.

(3). The bankruptcy estate cannot change contributions and the like.

section 30. Setting off from a creditor within the meaning of the Bankruptcy Act section 42 cannot find place to satisfy a debt due to the mortgage credit Institute.

section 31. The estate be used for the payment of claims in accordance with the rules set out in Chapter 10 of the Bankruptcy Act. Claims by holders of mortgage bonds, covered bonds, covered bonds and other securities, as well as requirements on the bankruptcy Decree passing from accrued interest on those debts are paid, however, in equal conditions in accordance with the requirements referred to in section 96 of the Bankruptcy Act, but before the section 97 of the Bankruptcy Act mentioned in the claims.

section 32. In the event of a suspension of payments to the mortgage institution, to the extent possible, continue to meet his payment obligations in accordance with requirements from the holders of mortgage backed securities, covered bonds, covered bonds and other securities for bonds, unless the court-appointed supervision decides otherwise. With the appointed supervisory consent can mortgage Institute conclude agreements on financial instruments, loans to the in 1. paragraph referred to payments and provide security for such loans in assets apart from mortgage pantebreve associated the or the series with series Reserve Fund, for which payment is made.

(2). In the event of bankruptcy trustee must, to the extent possible, continue or resume honore ring of the Department's obligations in the form of mortgage interest and capital repayments against the holders of mortgage backed securities, covered bonds, covered bonds and other securities. To the extent that there are not sufficient funds, paid interest, before the draws are made. The liquidator may conclude agreements on financial instruments, loans for payments to the holders of mortgage backed securities, covered bonds, covered bonds and other securities and collateral for such loans in assets apart from mortgage pantebreve associated the or the series with series Reserve Fund, for which payment is made.

section 33. There can be no transfer of funds between series with series Reserve Fund and the mortgage institution, incidentally, after notification of a suspension of payments or has been given by bankruptcy.

Chapter 4 (a)

Covered mortgage bonds and covered bonds

§ 33 a. mortgage companies can finance lending, see. section 2, paragraphs 1 and 3, by issuing covered bonds, if the institution has permission under section 16 (a), paragraph 1 of the law on financial business.
(2). Granting of loans financed with covered mortgage bonds must be in a separate series with series reserve fund.

(3). The value of the assets covering the issued covered bonds shall at any time at least equal to the value of the issued covered bonds and mortgage security for each loan must at all times comply with the loan limit for doing so.

section 33 (b). Mortgage companies can finance lending against security in the asset types, which are listed in section 152 c, paragraph 1, no. 1 and 3-7, in the financial business Act by issuing covered bonds, if the institution has permission under section 16 (a), paragraph 1 of the law on financial business. section 152 c (3) of the financial business Act shall apply mutatis mutandis.

(2). Granting of loans financed by special covered bonds must be in a separate series with series reserve fund.

(3). The value of the assets covering the issued covered bonds shall at any time at least equal to the value of the issued covered bonds and mortgage security for each loan must at all times comply with the loan limit for doing so.

§ 33 c. For loans financed with covered mortgage bonds or special covered bonds applies the maturities, interest-only profiles and lending limits laid down in sections 3-5 of the basic regulation. However, paragraphs 2 to 4.

(2). The loan limit for the in clause 5 (1) (8). 7, the said property do not apply to loans secured by things like mortgages on the basis of issuance of covered bonds or covered mortgage bonds. The loan limit is 60 per cent of these properties for the value of the property. Loan limit of 60% may be increased to 70 per cent, if additional security of at least 10 percent for the portion of the loan that exceeds 60 per cent of the value of the property.

(3). For loans financed with covered mortgage bonds or special covered bonds against security in buildings within the scope of § 5 (1), sections 3 and 4 do not apply, if the loan limit does not exceed 75%.

(4). For loans financed with covered mortgage bonds or special covered bonds to commercial real estate within the scope of § 5, paragraph 3, nr. 2-4, apply to the loan limit of 60% may be increased to 70 per cent, if additional security of at least 10 percent for the portion of the loan that exceeds 60 per cent of the value of the property. For loans financed with covered mortgage bonds or special covered bonds to properties subject to section 5, paragraph 2, can borrow the limit of 70 per cent be exploited only if additional safety of at least 10 percent for the portion of the loan that exceeds 60 per cent of the value of the property.

(5). Accessories included in the scope of § 38 in tinglysningsloven may be included in the valuation of real estate.

(6). Devices inlaid in a commercial property for the purposes of his operation, can be included in the valuation. By agricultural properties, the property belonging to the crew, to the extent that the crew is part of the continuous production, also included in the valuation. By borrowing against the value of the herd can farms included in the continuous production, maximum included with 30% of the value of land and buildings.

(7). Loans with a mortgage granted on the basis of issuance of covered bonds or special covered bonds shall be ensured by means of separate mortgage letter and must not be granted against collateral in the form of ejerpantebreve and skadesløsbreve, see. However, paragraphs 7 and 9. It must be indicated in the letter, that the mortgage may be placed as security for a loan funded by the issuance of covered bonds or special covered bonds.

(8). Mortgages in real estate, there are things like before the 1. July 2007, may be placed as security for loans financed by the issuance of covered bonds or special covered bonds. Regardless of 1. section ejerpantebreve and skadesløsbreve, however, can not be as security for loans financed by the issuance of covered bonds.

(9). For loans financed by the issuance of covered bonds can the requirement set out in section 11, paragraph 1 1. paragraph, stating that the borrower must own the property, and the requirement in section 23 (1) that the borrower shall be liable personally for the loan, be waived.

Paragraph 10. The Danish financial supervisory authority may grant derogations from paragraph 6 by loans granted for real estate that is located outside of Denmark, Faroe Islands and Greenland.

section 33 (d). If the value of the assets referred to in section 33 (a), paragraph 3, and section 33 (b), (3), no longer is at least equal to the value of the issued covered mortgage bonds or special covered bonds or not in compliance with the lending limits, which were in force at the time the loan is granted, the Department immediately provide additional security for mortgage compliance as well as giving the FSA notice. Supplementary security shall be lodged in the form of the asset types, which are listed in section 152 c, paragraph 1, no. 1 and 3-7, in the financial business Act. section 152 c (3) of the financial business Act shall apply mutatis mutandis. Obligation to provide additional security as well as expenditure for loans offered in Denmark may not be imposed on the borrowers, if declining property values have triggered the requirement for the additional collateral.

(2). If the mortgage Institute does not ask additional security under paragraph 1 1. point, lose all bonds issued in that series with series reserve fund designation covered mortgage bonds or special covered bonds. Bonds, who loses the designation covered mortgage bonds, mortgage bonds, may qualify if they meet the law's requirements for mortgage bonds.

(3). If the bonds subsequently again complies with the requirements for covered mortgage bonds or special covered bonds, the FSA allow the bonds again termed covered mortgage bonds or special covered bonds.

(4). The security lodged in accordance with paragraph 1 may not be declared void after the Bankruptcy Act section 70 or section 72. Marriage annulment can be done according to the rules, if the security is specifically not emerged as extraordinary.

§ 33 e. mortgage companies authorized to issue covered bonds, can borrow for use in order to meet the requirement to provide additional security.

(2). It must be stated in the loan agreement, which series or group of series with series reserve fund loan funds are recorded in accordance with paragraph 1 may be assigned to.

(3). Loan funds are recorded in accordance with paragraph 1 must be placed in the active types, referred to in section 152 c, paragraph 1, no. 1 and 3-7, in the financial business Act. The assets shall be from the date on which the loan is recorded, it is placed on a separate account, in a separate repository or otherwise labelled as coming from that loan. Once the assets are used as additional security, they must be included in that series or group of series with series reserve fund.

§ 33 f. FSA sets out detailed rules concerning





1) valuation of the issued covered mortgage bonds or special covered bonds and the continuous inventory of the assets ' value in relation to the covered mortgage bonds or the covered bonds and

2) valuation of the assets, there is security for the issuance of covered bonds or special covered bonds.





Chapter 5

Supervision

§ 34. The Danish FSA shall ensure compliance with this law and the regulations issued pursuant to the law.

(2). The Financial Business Council is part of the supervision of institutions within the Council's competence as laid down in the financial business Act.

(3). The Danish financial supervisory authority may give orders for the rectification of the relationship, which is in contravention of the provisions of the law and the regulations issued pursuant to the law. If a mortgage loan is granted in breach of the law or regulations issued thereunder, the Danish financial supervisory authority with effect for both mortgage institution as the borrower demand reduction of the mortgage loan, so that those provisions are complied with.

(4). The Danish financial supervisory authority can in special cases apply foreign assistance.

section 35. The Danish financial supervisory authority may obtain information about real estate from other public authorities for use by the monitoring of compliance with this law.

§ 36. The Danish financial supervisory authority may lay down rules on the reporting of mortgage institutions





1) arrears, losses and impairment losses on loans and repossessed properties,

2) large exposures measured in relation to the institution's balance sheet and large write-downs measured in relation to the institution's capital base (alcohol alerts) and

3) loan deals.





section 36 (a). The Minister for economic and business affairs shall lay down detailed rules on the application of digital communication, including electronic signature, by the exchange of information under this law between citizens and businesses on the one hand and the public administration, on the other hand, as well as on the retention of information.

section 37. As a party to the relationship to the Danish financial supervisory authority is considered only the mortgage lender or credit institution, as a decision by the Danish financial supervisory authority is aimed at, see. However, paragraph 2.
(2). A Board Member, an accountant, a Director or other senior executives in a mortgage lender is considered as parties, if the FSA decision pursuant to the Act or its regulations are aimed directly against the person concerned.

Chapter 6

Access to justice

section 38. Decisions taken by the Danish financial supervisory authority according to the law or regulations issued by virtue of law can by it, as the decision is aimed at, be referred to the EAB within 4 weeks after that decision is announced.

(2). Injunctive relief from the Danish financial supervisory authority on rectification of loans granted in breach of the provisions of the Act or regulations issued thereunder, may be brought before the courts within 4 weeks after that decision is announced. Decisions referred to the EAB can be challenged before the courts within 4 weeks after that EAB has granted the person concerned the Board's decision.

Chapter 7

Criminal provisions

§ 39. Violation of section 2(1), sections 3-8, 10 and 11, section 13, paragraph 1, article 14, paragraphs 2 and 3, article 17, paragraphs 3 and 4, §§ 18-20, § 22 (1), (2). paragraph, article 25, paragraph 1 1. paragraph, and article 26, paragraphs 1 and 2 is punishable by a fine or imprisonment up to 4 months, unless a higher penalty is inflicted upon the rest of the legislation.

(2). Violation of section 2 (2) 1. paragraph, section 26, paragraph 4, section 33 (a), paragraph 2, section 33 (b), paragraph 2, and section 33 (c), paragraph 6, is punishable by a fine. In the same way punishable infringement of the obligation of notification under section 33 (d), paragraph 1 1. PT.

(3). In rules adopted pursuant to the law may be fixed penalty of fines for violation of the provisions in the rules.

(4). That can be imposed on companies, etc. (legal persons) criminal liability according to the rules laid down in the Penal Code Chapter 5.

(5). The limitation period for violation of the provisions of the Act or regulations issued pursuant to law is 5 years.

§ 40. Fails a mortgage institution's administrative or management body in time to comply with the obligations under the law or regulations issued pursuant to the law shall be the responsibility of them over to the Danish financial supervisory authority, the financial supervisory authority as coercive means to impose on those daily or weekly payments.

(2). The FSA can impose a remedy as forced mortgage institution's administrative or management body of daily or weekly fines, if the administrative or management body fails to comply with an order of the FSA for rectification of loans granted in breach of the law or regulations issued thereunder.

Chapter 8

Date of entry into force and transitional provisions

§ 41. The law shall enter into force on the 1. January 2004. § 4 However, shall enter into force on 1 January. October 2003.

(2). The 1. October 2003 repealed section 25 in realkreditloven of the basic regulation. lovbekendtgørelse nr. 57 of 20. January 2003. The 1. January 2004 repealed section 1, paragraphs 4 and 5, § § 3, 24, 26-28, 40-45, 47-49, 52, 54-59 and 97, section 100, paragraph 4, article 102, paragraph 2, as well as § § 103, 103 (a) and 105 in realkreditloven.

(3). Provisions of the law on mortgage credit institutions referred to in article 6. lovbekendtgørelse nr. 571 of 15. August 1989, as well as the law on index-linked mortgage, see. lovbekendtgørelse nr. 572 of 15. August 1989, shall continue to apply to loans granted for the said laws. Similarly, see article 1, paragraph 5, and section 4, paragraph 10, 2. clause, and paragraph 12, 2. point, continue to apply to the priority status of loans granted in accordance with the provisions of the law on index-linked mortgage.

(4). Now repealed provisions in realkreditloven about loan terms and priority posts shall continue to apply for loans granted under these provisions. Regulation of loans in mortgage article 23, paragraph 3, as amended by section 6, nr. 1 of law No. 414 of 26. June 1998 amending the law on securities trading, etc. and various other laws. (Task/allocation of competences between the Danish securities Council and the Danish financial supervisory authority, netting, foreign exchange spot transactions in investment purposes, changed the placement rules for children's savings and housing savings, insolvency, etc.) shall, however, also apply to loans made before that commencement.

(5). The previously applicable rules in mortgage credit law §§ 21, 23, 24, 28 and 30-32 of the basic regulation. lovbekendtgørelse nr. 708 of 8. September 1997, as amended by section 6 of the law No. 414 of 26. June 1998 and section 2 of Act No. 491 of 1. July 1998, shall continue to apply on construction, which before 1 May 2004. January 1999 is announced the commitment of aid according to law on public housing and supported private cooperative housing, etc., previous laws on housing construction, as well as the former law on housing for the elderly and persons with disabilities, where lending is done on the basis of the announced aid pledges.

(6). The previously applicable rules in mortgage law § 39, paragraph 1-6 of the basic regulation. lovbekendtgørelse nr. 708 of 8. September 1997, as amended by section 6 of the law No. 414 of 26. June 1998 and section 2 of Act No. 491 of 1. July 1998, shall continue to apply, and the previously applicable rules in sections 21, 23 and 24 of the basic regulation. lovbekendtgørelse nr. 708 of 8. September 1997, as amended by section 6 of the law No. 414 of 26. June 1998 and section 2 of Act No. 491 of 1. July 1998, shall continue to apply in so far as they are in section 39, paragraphs 1 to 6, referred to loan purposes for which the Municipal Council before 1 July. January 2002 has announced commitments for aid.

(7). section 4 (a) of the Act on a financial institution for agriculture and so on, see. lovbekendtgørelse nr. 699 of 5. November 1987, as amended by Act No. 373 of 6. July 1988 and Act No. 850 by 20. December 1989, shall continue to apply to loans granted by the Danish agricultural Mortgage Fund in connection with the refinancing of mortgages, etc. in agricultural properties.

(8). § § 20 a-20 (d) of the law on mortgage credit institutions referred to in article 6. lovbekendtgørelse nr. 571 of 15. August 1989, shall continue to apply.

(9). Regulations issued pursuant to the provisions referred to in paragraph 2 shall be maintained. However, the repealed Ordinance No. 646 of 27. August 1998 regarding bankruptcy, etc. of mortgage companies.

§ 42. Treasury accounts receivable after settlement of a according to § 28 (c) of the law on mortgage credit institutions referred to in article 6. lovbekendtgørelse nr. 571 of 15. August 1989, granted State guarantee plus interest and costs can be recovered by Lien in order.

(2). Financial agency can recover the amounts referred to in paragraph 1 by deduction of wages, etc. with the person concerned in accordance with the rules for the collection of personal taxes in kildeskatteloven.

(3). Agriculture Minister may lay down detailed rules concerning the procedure in connection with lønindeholdelsen.

(4). Financial agency can obtain the information from the tax authorities and other public authorities of the concerned, as are necessary to carry out the recovery of the amounts referred to in paragraph 1, including information on income and assets.

(5). The finance agency's decisions in accordance with paragraphs 1 to 4 may be referred to the Minister of finance.

section 43. The law does not apply to the Faroe Islands.




Act No. 90 of 31. January 2007 includes the following entry-into-force provisions:



§ 100

The law shall enter into force on the 1. February 2007.

(2). (Omitted).

section 110

The law does not apply to the Faroe Islands and Greenland.




Act No. 577 of 6. June 2007 includes the following entry-into-force provisions:



§ 12

(1). The law shall enter into force on the 1. July 2007, see. However, paragraphs 2 to 4.

Paragraphs 2 to 4. (Omitted).

§ 14

(1). Notwithstanding section 19 of the law on mortgages and mortgage bonds, etc., as amended by section 2 of this Act, no. 7, mortgage bonds issued before 1 May 2004. July 2007 admitted to official listing on a stock exchange until the 1. November 2007.

(2). Article 20, paragraph 1, and article 26, paragraph 4, of the law on mortgages and mortgage bonds, etc., as amended by section 2 of this Act, no. 8 and 10, are applicable to mortgage bonds issued in series or groups of series with series Reserve Fund, opened the 1. July 2007 and thereafter.

(3). For loans covered by section 33 (c), paragraph 2, of the law on mortgages and mortgage bonds, etc., as amended by section 2 of this Act, no. 18, the loan limit is 70%, if the loan is provided before the 1. July 2009.

§ 18

(1). (Omitted).

(2). Section 2 does not apply to the Faroe Islands.

Paragraph 3-4. (Omitted).




Act No. 219 of 5. April 2008 includes the following entry-into-force provisions:



§ 5

(1). The law will enter into force on 7. April 2008.

§ 6

(1). (Omitted).

(2). Section 3 does not apply to the Faroe Islands.

(3). (Omitted).




Act No. 515 of 17. June 2008 includes the following entry-into-force provisions:



§ 10

(1). The law shall enter into force on the 1. July 2008, see. However, paragraph 2

(2). § 2, nr. 3 and 4, and section 6 shall enter into force on the day after publication in the Official Gazette.

§ 11

(1). (Omitted).

(2). Section 6 does not apply to the Faroe Islands.

(3). (Omitted).

(4). (Omitted).




Act No. 517 of 17. June 2008 includes the following entry-into-force provisions:



section 13

(1). The law shall enter into force on the 1. July 2008, see. However, paragraphs 2 to 5.

(2). (Omitted).

(3). (Omitted).

(4). (Omitted).

(5). (Omitted).

§ 14

(1). The law does not apply to the Faroe Islands and Greenland, without prejudice. However, paragraphs 2 and 3.

(2). (Omitted).

(3). sections 3-5 and 9 may, by Royal Decree in whole or in part be put into force for Greenland of the variances, as the special Greenlandic conditions warrant.
Economic and business affairs, the 4. September 2008 Bendt Bendtsen
/Henrik Bjerre-Nielsen Official notes 1) Act contains provisions implementing parts of a European Parliament and Council Directive 2006/48/EC of 14. June 2006 relating to the taking up and pursuit of the business of credit institutions (recast) (Official Journal of the European Union 2006 nr. L 177, p. 1).