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Amendment of section 4 of Principal Act.
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3.— Section 4 of the Principal Act is amended—
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(a) by substituting the following for subsection (4):
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“(4) For the purposes of subsection (1), a financial obligation includes a financial obligation that is in the form of security that represents an interest in other mortgage credit that is securitised.”,
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(b) in subsection (5), by substituting “comprised” for “included” in the 2 places where it occurs, and
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(c) by inserting the following after subsection (5):
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“(6) Where a mortgage credit asset secured on residential property would, but for the exclusion of residential property from the definition of ‘commercial property’ in section 3(1), also be secured on commercial property, a designated commercial mortgage credit institution may, for the purposes of this Act, treat that asset as if it were secured on commercial property rather than residential property.
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(7) Where a mortgage credit asset is secured on a single property asset that would, but for this subsection, constitute commercial property in part and residential property in part, then that mortgage credit asset shall, for the purposes of this Act, be regarded, in relation to that property asset, as secured only on commercial property.
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(8) In this section—
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‘ other security ’, in relation to residential or commercial property located outside the State, means a kind of security interest over that property that is recognised as a valid security interest under the lex situs of that property;
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‘securitised’ shall be construed in accordance with Article 4(36) of the Codified Banking Directive.”.
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