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Labour Party Amendments to NAMA Bill

Issued : Friday 16 October, 2009

The Labour Party has tabled 56 amendments to the NAMA Bill, 2009, which are designed to increase supervision by the Oireachtas of the NAMA process, place some restrictions on the otherwise limitless powers given to the Minister for Finance, ensure greater transparency in the process, provide additional protection for the taxpayer, reopen the flow of credit to small businesses and impose a two year moratorium on applications for repossession orders on family homes by participating financial institutions. A full list

Re: NAMA Bill 2009 – Committee – Consolidated List of Joan Burton T.D. Amendments – Total of 56 Amendments

In page 16 lines 28-29 insert
“Review of Act by Oversight Committee.
2. – Dáil Eireann shall appoint an Oversight Committee consisting of specified persons not being members of the Houses of the Oireachtas to report to Dáil Eireann every 30 days on the operation of this Act and the activities of NAMA.
(2) The Minister, NAMA, and any other body or person having functions under this Act shall be required to co-operate with the Oversight Committee in the performance of its functions.”

In page 16 lines 29-30 insert
(a) to contribute to the social and economic development of the State.

In page 17 line 9 after “sector” insert “and
(c) to achieve such purposes as are set out in paragraphs (a) and (b) in compliance with the law of the State and of the European Communities relating to competition and with the law of the European Communities governing State aid and any relevant guidances issued by the Commission of the European Communities.”

In page 17 lines 9-10 insert
“Reports by NAMA.
3. – Every 30 days NAMA shall report to Dáil Eireann setting out details of its operation including the identities of the owners of, and particulars (including value) of, any assets acquired by it during the period in question valued at over €100,000.”

In page 17 lines 17-18 insert
“Limitation of Act.
4. – Notwithstanding any provision of this Act, no person may participate in acquiring any benefit or advantage under this Act unless such person is tax resident within the State and has complied with his or her tax liabilities to the State.”

In page 18 line 13 after “includes” insert “a personal guarantee and”

In page 20 lines 14 to 15 insert
“market value” means current market value and includes such element of the current market value as is commercially attributable to the anticipated long term value of the asset,”

In page 23 line 2 delete “section 199(2)” insert “this Act”

In page 25 lines 35-36 insert
(a) transfer assets under its control to appropriate Ministers, local housing authorities or agencies for use in achieving their legislative responsibilities paying particular attention to the social benefits of such transfers"

In page 26 line 21 after “claim” insert “where it is commercially reasonable to do so”

In page 27 lines 25-26 insert
“(3) NAMA shall undertake proper and sustainable planning for all properties under development by or in association with NAMA or of properties to which NAMA has legal title.”

In page 27 lines 25-26 insert
“(3) NAMA shall ensure that all properties under development by or in association with NAMA or of properties to which NAMA has legal title have erected on them a durable 2m by 2m sign indicating that they are owned or being developed by NAMA.

In page 27 delete lines 42-44

In page 28 section 13 opposed

In page 28 section 14 opposed

In page 30 line 7 after “if” insert “the nomination of the person is approved by a committee nominated for the purpose by Dáil Eireann and if”

In page 30 lines 11-12 insert
“(c) social housing and community development,”

In page 38 line 35 after “may” insert “with the approval of a committee nominated for the purpose by Dáil Eireann”

In page 38 after line 39 inert
“Business plans
35. NAMA shall prepare, publish and submit to Dáil Éireann for consideration, a business plan including a Corporate Operational Plan on an annual basis, including an overview of the outlook for interest rates and evolution of yield curves.

In page 39 line 4 after “shall” insert “with the approval of a committee nominated for the purpose by Dáil Eireann”

In page 46 line 39 delete “the Minister” insert “Dáil Eireann”

In page 48 delete lines 5-6

In page 48 before s 55 insert
“Monthly reports.
55. – NAMA shall make a monthly report to Dáil Éireann, which shall include
details of all loans which are rolled up and full details of NAMA’s operation during the previous month including assets acquired by it during that period.

In page 48 lines 9-10 insert
(2) The audit conducted under this section shall be carried out on a joint audit basis (with the Comptroller and Auditor General having a partner auditor).

In page 48 delete lines 13-17

In page 49 delete lines 1-9

In page 49 delete lines 20-28

In page 50 line 29 delete “a certificate” insert “an affidavit”

In page 55 lines 18-19 insert
“(5) It shall be an obligation of a participating institution to increase lending to SMEs and first time buyers to such an extent as is specified in agreements made by the participating institutions with the Minister whether before or after the passing of the Act and in the absence of such agreement, to the extent specified by the Minister.
(6) A participating institution shall report to Dáil Éireann on a monthly basis as to the level of lending to SMEs and first time buyers.”

In page 55 lines 18-19 insert
“(5) It shall be an obligation of a participating institution to take steps to ensure the probity of senior executives and directors of the institution and to ensure that such persons are not compromised in the performance of their functions by virtue of any outstanding loan to such person or any other personal arrangement.”

In page 55 lines 18-19 insert
“(5) It shall be an obligation of a participating institution to enter into a Memorandum of Understanding with the Minister ensuring that they will not sell NAMA bonds on the open or secondary debt markets.

In page 55 lines 18-19 insert
“(5) It shall be an obligation of a participating institution to publish the names of all developers and associated companies whose loans have been acquired by NAMA, including specification as to whether these loans are performing, have been in any way restructured, or in default.

In page 58 lines 33-34 insert
“Obligations of person interested in an acquired bank asset.
70. – (1) It shall be a duty on any person who has an interest in an acquired bank asset, or any person connected in any material way to such a person, to refrain from making a political donation to any party or individual above €5.
(2) A person who contravenes this section shall be guilty of an offence and shall be punished as if the offence was one to which section 7(6) relates.”

In page 58 line 43-44 delete “, prudently and without compulsion” insert “and prudently”

In page 59 lines 5-6 delete “, prudently and without compulsion” insert “and prudently”

In page 59 delete lines 7-20

In page 59 line 36 delete “long-term economic value” insert “market value”

In page 60 section 74 opposed

In page 61 lines 3-4 insert
“(d) the level of interest obligations attaching to the asset,”

In page 62 delete lines 31-37 and substitute
“(3) Every regulation made under subsection (1) shall be approved in draft by Dáil Eireann prior to being made.”

In page 66 lines 37-38 insert
“(2) It shall be an obligation of a participating institution not to commence or pursue proceedings for repossession of a principal private residence unless the arrears of any mortgage are in excess of 24 months, provided the mortgagor provides reasonable co-operation within his or her means and ability with the participating institution.”

In page 72 lines 36-37 insert
“(3) Where a sum referred to in this section is received by a participating institution, the institution shall be a trustee of the sum pending its repayment to NAMA and shall repay the sum as soon as practicable together with interest as if the sum were a judgment debt attracting interest under the Courts Act 1981.”

In page 75 line 9 after “entity” insert “shall be obliged to charge such interest in respect of any loan as is commercially appropriate and ”

In page 76 line 27 after “schedule,” insert “(which said failure shall, where a representation is shown to have been given, constitute actionable misrepresentation)”

In page 78 delete line 29

In page 79 delete lines 4-5

In page 81 section 108 opposed

In page 82 delete lines 19-30 and substitute:
“(4) If the Minister considers that an order under subsection (2) contains matter that is commercially sensitive to the extent that it ought not be contained in the order, it shall be lawful for the Minister to set out such matter in a direction signed by the Minister and lodged in the Department of Finance, and to provide in the order that such direction (specifying the date thereof and such particulars of it as are not commercially sensitive) shall have effect.

In page 87 line 30 delete “, or” and delete lines 31-38

In page 91 line 26 delete “If NAMA so directs, a” insert “A”

In page 101 delete lines 14-24

In page 119 lines 34-35 insert
Power of Minister to apply for appointment of inspector into affairs of Bank
204.—(1) The Minister may, and shall if required to do so pursuant
to a resolution under this section passed by Dáil Eireann, apply to the High Court for an order under the Companies
Acts for the appointment of one or more inspectors to investigate
the affairs of Anglo Irish Bank, having regard in particular to the
questions as to whether—
(a) its affairs have been conducted with intent to defraud its
creditors or the creditors of any other person or otherwise
for a fraudulent or unlawful purpose or in an unlawful manner or in a manner which is unfairly prejudicial to
some part of its members, or that any actual or proposed
act or omission of the company (including an act or omission
on its behalf) was so prejudicial,
(b) persons connected with the management of its affairs have
in connection therewith been guilty of fraud, misfeasance
or other misconduct towards it or towards its members,
(c) that its members have not been given all the information
relating to its affairs which they might reasonably expect,
(d) such other or additional grounds as the Minister specifies
in his or her application to the High Court.
(2) For the purposes of subsection (1), the Minister has all such
powers as are necessary to enable him or her to apply to the High
Court for an order of the kind referred to in that subsection and the
High Court shall hear and determine that application as if the Company Law Enforcement Act 2001, in respect of applications concerning
Anglo Irish Bank, vested those powers concurrently in the Minister
and in the Director of Corporate Enforcement, so as to be
capable of being exercised by either of them.
(3) Notwithstanding subsection (1), the Minister is not required to
make an application under that subsection if he or she notifies Dáil Eireann that the Director of Corporate Enforcement
has applied to the High Court for an order under the Companies
Acts for the appointment of one or more inspectors to investigate
the affairs of Anglo Irish Bank.

In page 121 Before s 207 insert
“Whistleblowers.
207. – A person who in good faith reports a suspicion of breach of a provision of this Act to a statutory authority having responsibilities in relation to such breach shall be immune from civil or criminal liability in relation to such report.”

In Page 121 line 22 after “that” insert “at any time after 7 April 2009”

P 126 lines 5-6 insert
“Effect of financial emergency.
218. – Until in the opinion of the Minister, property prices have recovered to the long term economic value referred to in this Act, a tenant of commercial property may apply for a downward renegotiation of any rent fixed prior to the commencement of this section, and in default of agreement the reduced rent shall be determined by arbitration.

In page 126 line 25 delete “the Minister” insert “Dáil Eireann”

In page 134 line 16 delete “shall” insert “may”