# NAMA bill published



## Brendan Burgess (10 Sep 2009)

Here is the  [broken link removed]and the [broken link removed]

Statement of Minister for Finance on Formal Publication of NAMA Bill

I want to stress that under the Bill, each individual loan will require a separate valuation once the Act has commenced. Therefore, the figure I will be providing to the Dail on September the 16th will be an estimate. Only after the valuation of each loan will an exact price be determined.

 Mr Lenihan added that he will seek the views of the leaders of the opposition parties *on appointments to the Board of NAMA*. “I sought their views on my appointment of public interest directors to the Boards of the guaranteed banks. 


Changes to the draft published in July


*Risk Sharing*
The Bill provides that the banks will share a portion of the risk associated with NAMA by receiving part of the payment for loans in the form of subordinated debt. This will enable NAMA to suspend certain payments to the banks in the event of a loss, and will help to incentivise institutions to work with the NAMA process in the best interests of all of us. The Bill will provide for the level of subordinated debt to be set by ministerial order.

*Developers & the Market for Development Land*
The Bill has been amended to provide that NAMA must have regard to the need to avoid undue concentration or distortions in the market for development land.

NAMA must have a significant degree of commercial discretion in its operations, and in completing developments or improving properties within its ownership. Any involvement by borrowers in the development or completion of properties acquired by NAMA will be subject to strict limits and controls. Under the Bill, there will be no “easy terms” available to borrowers from NAMA. All borrowers will be pursued by NAMA for their debts.
*
Criminal Offence to Lobby NAMA*
The Bill includes a specific provision to outlaw lobbying of NAMA in relation to any of its decisions. Only a borrower and his or her agents will be authorised to deal with NAMA. It will be an offence to influence the Agency in the course of its work.

*
Transparency & Accountability*
The revised Bill will ensure accountability and transparency in the operations of the Agency. The changes require more frequent reporting by the Agency and by the Minister to the Oireachtas. A new provision requires the Comptroller and Auditor General to review the progress of NAMA every three years. This is in addition to his annual review of NAMA’s accounts.

*Taxation of Windfall Gains on Rezoned Land*
The Minister will bring forward a Committee Stage amendment to ensure that windfall gains on rezoned land will be subject to Capital Gains Tax at the rate of 80%.

*The Flow of Credit to the Economy*
The Government is examining specific measures to ensure that NAMA will result in an improved flow of credit from banks that benefit from its operations.

*Corporate Governance Reforms*
As part of the Government’s proposals to reform the financial regulatory system, on which legislation is in preparation, the Minister will include measures to strengthen corporate governance across the banking sector. These measures will include a prohibition on a CEO immediately becoming the Chairman of a bank and will limit cross directorships.


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## Brendan Burgess (10 Sep 2009)

Key Sections

[FONT=&quot]13. Minister’s powers to issue guidelines to NAMA.[/FONT]

[FONT=&quot]  14. Minister’s   powers of direction.[/FONT]

[FONT=&quot]16. Prevention of corruption.[/FONT]

[FONT=&quot]19. Membership of Board.[/FONT]

[FONT=&quot]Chapter [/FONT][FONT=&quot]4[/FONT]

[FONT=&quot]NAMA’s Relationship with NTMA[/FONT]

[FONT=&quot]45. Financing arrangements — Minister may issue   debt    securities.[/FONT]

[FONT=&quot]46. Financing arrangements — NAMA, etc., may issue   debt   securities.[/FONT]

[FONT=&quot]47. Financing arrangements — NAMA, etc., may issue   subordi nated debt securities.[/FONT]

[FONT=&quot]67. Eligible bank assets.[/FONT]

*[FONT=&quot]PART 5[/FONT]*

*[FONT=&quot]Valuation   Methodology[/FONT]*

[FONT=&quot]70. Interpretation (Part [/FONT][FONT=&quot]5).[/FONT]

[FONT=&quot]71. Determination of acquisition values — valuation   dates, etc.[/FONT]

[FONT=&quot]72. Determination of acquisition values — guidelines,   etc.[/FONT]

[FONT=&quot]73. Acquisition values.[/FONT]

[FONT=&quot]74. Determination of long-term economic values.[/FONT]

[FONT=&quot]75. Market values.[/FONT]

[FONT=&quot]81. Decision about acquisition of eligible bank   assets.[/FONT]

[FONT=&quot]88. Effect of service of acquisition schedule   in relation to foreign    bank assets.[/FONT]

[FONT=&quot]89. Payment for bank assets.[/FONT]

[FONT=&quot]90. Clawback of overpayments.[/FONT]

[FONT=&quot]91. Dealings with bank assets after service of   acquisition sched ule until date of acquisition.[/FONT]

[FONT=&quot]95. Dispute over acquisition value.[/FONT]

[FONT=&quot]PART 7[/FONT]

[FONT=&quot]Review of Decisions Relating to Acquisition[/FONT]

[FONT=&quot]109. Appointment and functions of expert reviewer.[/FONT]

[FONT=&quot]Chapter [/FONT][FONT=&quot]2[/FONT]

[FONT=&quot]Review of valuations[/FONT]

[FONT=&quot]PART 8[/FONT]

[FONT=&quot]Relationship between NAMA and Participating   Institutions[/FONT]

[FONT=&quot]131. Additional payment on servicing of acquired   bank assets.[/FONT]

[FONT=&quot]PART 9[/FONT]

[FONT=&quot]Powers of NAMA in Relation to Assets[/FONT]

[FONT=&quot]136. NAMA’s powers to dispose of bank assets.[/FONT]

[FONT=&quot]Chapter [/FONT][FONT=&quot]3[/FONT]

[FONT=&quot]Statutory Receivers[/FONT]

[FONT=&quot]144. NAMA’s power to appoint statutory receivers.[/FONT]

[FONT=&quot]155. NAMA’s powers to acquire land compulsorily.[/FONT]

[FONT=&quot]Legal Proceedings Commenced on or after [/FONT][FONT=&quot]30 July 2009[/FONT]

[FONT=&quot]178. Application (Chapter [/FONT][FONT=&quot]2).[/FONT]

[FONT=&quot]179. Damages to be only remedy for certain claims.[/FONT]

[FONT=&quot]Review of NAMA[/FONT]

[FONT=&quot]218. Triennial review of NAMA’s progress.[/FONT]

[FONT=&quot]219. Review of achievement of NAMA’s purposes.[/FONT]


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## Brendan Burgess (10 Sep 2009)

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