Pfandbriefbank (Österreich) AG ("Pfandbriefbank") was established on January 15th, 2015, when Pfandbriefstelle der österreichischen Landes-Hypothekenbanken ("Pfandbriefstelle") transferred its entire banking operation to the newly founded stock corporation Pfandbriefbank by way of universal succession (pursuant to Art. 92 of the Austrian Banking Act).
Pfandbriefbank (Österreich) AG is a bank under Austrian Law. 100 percent of its shares are held by Pfandbriefstelle.
Pfandbriefstelle itself was founded in 1939 with the purpose of issuing mortgage bonds ("Pfandbriefe") and other bonds in order to raise capital for its member institutions, the 10 Austrian Landeshypothekenbanken (regional mortgage banks).
Liability of member institutes of Pfandbriefstelle and its guarantors the Austrian Federal States for obligations of Pfandbriefbank
The legal framework for Pfandbriefstelle, including the guarantee structure for the protection of investors pursuant to Art 2 of the Pfandbriefstelle Act ((Bundesgesetz über die Pfandbriefstelle der österreichischen Landes-Hypothekenbanken, BGBl. I Nr. 45/2004 as amended, the "PfBrStG"), continues to apply to Pfandbriefbank (Österreich) AG.
§ 2. (1) The Pfandbriefstelle’s members are jointly and severally liable for its liabilities. The members may make other arrangements for those liabilities which are no longer covered by the liability of a guarantor under paragraph 2 in a particular case. These are, however, valid only if published in the terms and conditions of issue.
(2) The members’ guarantors are jointly and severally liable for all liabilities of the Pfandbriefstelle which have arisen until 2 April 2003. The guarantors are jointly and severally liable for all liabilities that have arisen after 2 April 2003 up to 1 April 2007 only if the agreed terms do not mature after 30 September 2017. The guarantors are no longer liable for all liabilities arising after 1 April 2007. The Pfandbriefstelle shall establish and include in a separate liability report the scope of liabilities covered by the guarantors’ liability annually as of the balance sheet date. The Pfandbriefstelle’s board of directors shall submit the liability report to the guarantors and to the Financial Market Authority no later than within six months from the end of the business year.