On 3 August 2012, the Belgian Parliament adopted long-awaited
legislation on covered bonds (the "Covered Bonds
Act")1 as well as an act on the use of
receivables for financing purposes (the "Mobilisation
Act").2 The new legislation is intended to
level the playing field for Belgian credit institutions, compared
to those in other EU countries, and facilitate the refinancing of
credit institutions, whilst defining appropriate legal mechanisms
to protect the holders of covered bonds.
The Covered Bonds Act provides a statutory framework for the
licensing and supervision of the issuers of covered bonds, defines
the rules applicable to the assets used to back the bonds, and
provides for preferential treatment for the holders of Belgian
covered bonds, while the Mobilisation Act resolves a number of
important issues - most of which are specific to Belgian law -
related to the use of receivables for financing purposes.
