Article 12
1.
Member States shall lay down rules regulating the segregation of cover assets. Those rules shall include at least the following requirements:
(a)
all cover assets are identifiable by the credit institution issuing the covered bonds at all times;
(b)
all cover assets are subject to legally binding and enforceable segregation by the credit institution issuing the covered bonds;
(c)
all cover assets are protected from any third party claims and no cover asset forms part of the insolvency estate of the credit institution issuing the covered bonds until the priority claim referred to in point (b) of Article 4(1) has been satisfied.
For the purposes of the first subparagraph, the cover assets shall include any collateral received in connection with derivative contract positions.
2.
The segregation of cover assets referred to in paragraph 1 shall also apply in the case of insolvency or resolution of the credit institution issuing covered bonds.