Public statement relating to Settlement Agreement between the Financial Regulator and DEPFA ACS BANK

• Date: 16 December 2009

PO BOX 9138 T +353 1 224 4000

College Green F +353 1 224 6022

Dublin 2

Settlement Agreement

between the Financial Regulator and DEPFA ACS BANK

The Financial Regulator has entered into a Settlement Agreement with effect from 16

December 2009 with DEPFA ACS BANK in relation to breaches of a regulatory

requirement under the Asset Covered Securities Act 2001 (as amended) (“the Act”).

The Financial Regulator has reasonable cause to suspect that breaches of a regulatory

requirement occurred whereby DEPFA ACS BANK failed on a number of occasions to

obtain the approval of its Cover-Assets Monitor (“the CAM”) or the Financial Regulator

prior to making or amending an entry in its register of public credit covered securities

business, such approval being required pursuant to subsection 53(5) of th e Act.

The breaches were notified in the first instance to the Financial Regulator by DEPFA ACS

BANK.

In determining the appropriate sanction, the Financial Regulator took into account the

following:

 The CAM has confirmed that at all times the cover assets pool remained in

compliance with all other requirements of the Act, including over collaterali sation

requirements on both a regulatory and contractual basis

 No investors suffered a financial loss; and

 DEPFA ACS BANK has since introduced new procedures an d controls (including

those proposed by an external consultant) and new management and reporting

structures to prevent future incidences of this nature.

The Financial Regulator has reprimanded DEPFA ACS BANK and required it to pay a

monetary penalty in the sum of €250,000.