Asset Covered Securities (Amendment) Act 2007

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Amendment of section 49 of Principal Act.

37.— Section 49 of the Principal Act is amended—

(a) in subsection (1), by substituting “, (7) or (11) or any contractual undertaking referred to in section 32(14)” for “or (7)”,

(b) by inserting the following after subsection (2):

“(2A) A designated public credit institution shall, as soon as practicable after becoming aware that a cover asset comprised in its cover assets pool would, if the institution were to include that asset at that time in its pool, contravene section 48(2) or 50(8)(a), remove that cover asset from its cover assets pool and, where required by this Act, replace it in accordance with section 50. Until these steps have been taken, the institution may not issue any further public credit covered securities.”.