Regulatory Alerts2024-11-28
Order on Mortgage Credit Institutions' Lending Against Temporary Guarantee
The Danish Financial Supervisory Authority and the Ministry of Industry, Business and Financial Affairs issued this order to regulate temporary collateral requirements for mortgage credit institutions when final land register security is pending. The document mandates that institutions accept specific high-quality guarantees, such as bank guarantees or cash pledges, to cover loan repayment and costs during the interim period. It establishes strict timelines for loan repayment if security is not finalized and defines conditions for releasing collateral once permanent registration is achieved.
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