Examples of Liquidity Test in a sentence
For those bonds classified as Hard Bullet Covered Bonds, if the Pre-Maturity Liquidity Test is breached, the LLP is obliged to sell Selected Loans and their Related Security (selected on a random basis) to seek to generate sufficient cash to enable the LLP to pay the Final Redemption Amount, on any Hard Bullet Covered Bond, should the Issuer fail to pay.
However, the cover pool monitor will verify at least once a month that the Cover Tests, the Liquidity Test and the requirements for the cover register are complied with.
Per special estate, the cover assets must over a period of six months generate sufficient liquidity or include enough liquid assets in order to enable the issuing credit institution to make all unconditional payments on the Belgian covered bonds (including principal, interest and other costs) falling due during the following six months (the Liquidity Test).
The Authority's accounting officer shall also send by 1 July, a reporting package to the Commission's accounting officer, in a standardised format as laid down by the Commission's accounting officer for consolidation purposes.
Such consultation with the representative will be required if the Cover Tests and/or Liquidity Test are no longer met.