Common use of Asset Coverage Test Clause in Contracts

Asset Coverage Test. 10.1 On each Monthly Calculation Date, the Issuer shall determine whether the then total value, without double counting, of: (a) the assets comprising the Cover Pool (including any amounts comprising the liquidity buffer required to be maintained in accordance with the Icelandic Covered Bond Act) (the Cover Pool Value) (calculated in accordance with the Icelandic Covered Bond Act); (b) any amounts standing to the credit of the Collateral Reserve Account or the Swap Collateral Account; and (c) any cash amounts or securities in any Issuer Account, (such total value amount being the ACT Assets Amount) exceeds the then total value of: (d) the Principal Amount Outstanding of all Series of Covered Bonds, together with all accrued interest thereon (provided that for the purpose of calculating such amounts in respect of any Series of Covered Bonds denominated in a currency other than ISK, the Principal Amount Outstanding (and such accrued interest) shall be calculated according to (i) the relevant prevailing spot exchange rate (as determined by the Issuer) on the relevant Monthly Calculation Date or (ii) if a Currency Swap has been entered into in respect of such Series of Covered Bonds, the relevant rate under that Currency Swap); (e) any other payment obligations that must be paid from the Cover Pool in accordance with the Icelandic Covered Bond Act during the period to and including the next following Monthly Calculation Date; and (f) the Deposit Set-off Amount, (such total value amount being the ACT Liabilities Amount) provided that if on such Monthly Calculation Date the ACT Assets Amount does not exceed the ACT Liabilities Amount (such determination, the Asset Coverage Test) the Asset Coverage Test shall be deemed to have been breached for the purpose of Clause 10.2 below. 10.2 In the event of a breach of the Asset Coverage Test on a Monthly Calculation Date, the Issuer shall use reasonable endeavours to allocate sufficient additional assets to the Cover Pool and register such assets in the Register in an aggregate amount sufficient to ensure that the Asset Coverage Test is met on the next following Monthly Calculation Date. 10.3 In calculating the Cover Pool Value, subject to the provisions of Clause 10.1(d) above, the value of any non-ISK denominated assets comprising the Cover Pool shall be converted into ISK on the basis of the exchange rate published by the Central Bank of Iceland as at such Monthly Calculation Date.