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	Luxembourg Lettres de Gage Regulations
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The legal framework for mortgage banks under Luxembourg law is the "Loi du 21 novembre 1997 relative aux banques d'émission de lettres de gage" which entered Luxembourg's general banking law as Articles 12-1 to 12-9.

The Luxembourg Covered Bond Law has been modernised in October 2008. The main topics are:

• Securities issued by Securisation companies or their compartments are now eligible for the cover pool if the assets of these securisations consist of at least 90 per cent cover pool eligible assets. When this percentage is at 50 per cent, the securities of this kind can only make up to 20 per cent of the entire cover pool.
• Possibility to create new cover pools for moveable assets that are registered in a public register (such as rights relating to vessels, aircraft, railway...)
• The loan to value ratio for retail mortgages has been raised from 60 per cent to 80 per cent.
• Introduction of a legal obligation of over-collateralisation of 102 per cent regarding the nominal and the net present value.
• Abolishment of the restriction of Lettres de Gage in circulation to 60 per cent of the Issuer's equity.

Circular 03/95
The regulations regarding the “minimum requirements for the maintenance and control of the cover register, for the cover assets and for the issuance limit for outstanding Lettres de Gage" are available in the “Circular 03/95” issued by CSSF, the Luxembourg supervisory authority for the financial services industry.

Here you can download the documents as PDF files.

Date Titel Download 05/26/2010   Loi coordonné du 05. avril 1993 - version octobre 2008 PDF 983kB 01/27/2010   Articles 12-1 to 12-9 non-binding English version PDF 49kB 11/04/2008   Modernisation of the Luxembourg legislation for covered bonds - November 2008 PDF 48kB 11/03/2008   AMELIORATION DU CADRE LEGISLATIF DE LA PLACE FINANCIERE DE LUXEMBOURG - 24 octobre 2008 PDF 80kB 10/31/2008   Auszug aus dem Finanzsektorgesetz - Besondere Vorschriften für Pfandbriefbanken - Version Oktober 2008 PDF 316kB 02/26/2003   CSSF Circular 03/95 French version PDF 167kB 02/26/2003   CSSF Circular 03/95 English version PDF 144kB