Document ID: chunk:federal_register_of_legislation:C2025C00165:section:31
Version: federal_register_of_legislation:C2025C00165
Segment Type: section
Provision Reference: s 31
Character Range: 258239–259816

31  Assets that may be in cover pools
 (1) An asset in a cover pool must be one of the following:
 (a) an at call deposit held with an ADI and convertible into cash within 2 business days;
 (b) a bank accepted bill or certificate of deposit that:
 (i) matures within 100 days; and
 (ii) is eligible for repurchase transactions with the Reserve Bank; and
 (iii) was not issued by the ADI that issued the covered bonds secured by the assets in the cover pool;
 (c) a bond, note, debenture or other instrument issued or guaranteed by the Commonwealth, a State or a Territory;
 (d) a loan secured by a mortgage, charge or other security interest over residential property in Australia;
 (e) a loan secured by a mortgage, charge or other security interest over commercial property in Australia;
 (f) a mortgage insurance policy or other asset related to a loan covered by paragraph (d) or (e);
 (g) a contractual right relating to the holding or management of another asset in the cover pool;
 (h) a derivative held for one or more of the following purposes:
 (i) to protect the value of another asset in the cover pool;
 (ii) to hedge risks in relation to another asset in the cover pool;
 (iii) to hedge risks in relation to liabilities secured by the assets in the cover pool;
 (i) an asset of a kind prescribed by the regulations for the purposes of this paragraph.
 (2) Paragraph (1)(i) is not limited by paragraphs (1)(a) to (h).
 (3) Despite subsection (1), a cover pool must not contain an asset of a kind prescribed by the regulations for the purposes of this subsection.