In particular, claims against central governments and sub-sovereign bodies in states of the European Union and the EEA may serve as cover for Public Pfandbriefe. Where claims against the USA, Japan, Switzerland and Canada – and their sub-sovereign bodies – are concerned, the public-sector debtor must be assigned to credit quality step 1 in accordance with Directive 2006/48/EC relating to the taking up and pursuit of the business of credit institutions.
Money claims against suitable credit institutions may also serve as cover up to the amount of 10% of Public Pfandbriefe outstanding. Claims under derivative transactions are permissible as cover up to a maximum of 12% (based on their net present value).
The main statutory provisions are set forth in § 20 Pfandbrief Act .