Examples of Statutory Tests in a sentence
Covered Bondholders should be aware that the breach of the Statutory Tests and the opening of bankruptcy proceedings with respect to the Issuer will not give them the right to declare the Covered Bonds immediately due and payable.
Statutory Tests Statutory provision for recusal by district judges has existed since 1792.
Failure of the Issuer to take prompt remedial action to cure any breach of the Liquidity Test will result in the Issuer not being able to issue further Covered Bonds and if the Issuer does not satisfy the Statutory Tests this may have an adverse effect on the ability of the Issuer to meet its payment obligations in respect of the Covered Bonds.
The Statutory Tests are intended to mitigate this risk and purport to ensure that the Issuer maintains an adequate amount of Cover Assets in the Special Estate to enable the Issuer to meet its obligations under the Covered Bonds.
Under the Belgian Covered Bonds Legislation, the Statutory Tests will be verified by the Cover Pool Monitor on a periodic basis and will periodically be communicated to the Supervisor (see Summary of the Belgian Covered Bonds Legislation).
The Statutory Tests and the legal requirements for Cover Assets set out in the Belgian Covered Bonds Legislation are intended to mitigate this risk but there can be no assurance that the Cover Assets could be realised for sufficient value to enable the Issuer to repay the Covered Bonds following an Event of Default and the service of a Notice of Default on the Issuer or upon a liquidation of the Special Estate by the Cover Pool Administrator.
Condition 2.6 (Issuer undertaking) and the Programme Documents contain an undertaking of the Issuer to ensure that it will comply with the obligations applicable to it under the Belgian Covered Bonds Legislation (which includes compliance with the Statutory Tests) and certain other obligations for so long as the Covered Bonds are outstanding.
This risk is to some extent mitigated by the Statutory Tests (see section headed Summary of the Belgian covered bonds).
The “Stress Test” means the test set out in Article 18 of the Covered Bonds Communiqué.The Statutory Tests (both their nature and their method of calculation) may vary from time to time to the extent that the Covered Bonds Communiqué is amended.
Under the terms of the asset monitor agreement entered into on the Programme Closing Date between the Asset Monitor, the Servicer, the Issuer and the Trustee (as amended, restated and/or supplemented from time to time, the Asset Monitor Agreement), the Asset Monitor has agreed to carry out various testing and notification duties in relation to the calculations performed by the Servicer in relation to the Statutory Tests and, if required, the Amortisation Test.