Thursday, 13 June 2019

Questions (58)

Michael McGrath


58. Deputy Michael McGrath asked the Minister for Finance if NAMA is prevented from selling properties back to defaulting debtors under section 172(3) of the National Asset Management Agency Act 2009; if this section or other parts of the Act prevent NAMA from selling loan notes back to the defaulting debtor; if so, the reason for the prohibition; and if he will make a statement on the matter. [24691/19]

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Written answers (Question to Finance)

Section 172(3) of the NAMA Act 2009 is a legal provision that, in broad terms, prevents assets held as security for loans acquired by NAMA from being sold back to defaulting debtors, or persons acting on behalf of defaulting debtors.

The provision concerns property transactions (as opposed to loan sales) where a default has occurred under the loan secured by that property.

Notwithstanding the specific provisions of Section 172(3) of the NAMA Act, I am advised that NAMA also has a policy of obtaining written confirmation from purchasers of loan assets which confirm that, among other things, the purchaser is not a party precluded from completing the purchase, such as would fall within the scope of Section 172(3) of the NAMA Act.