Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_4:p3
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 3/7)
Character Range: 206570–209320

issued to the entity by any of the entity's associate entities, the originator or any associate entity of the originator; and
 (g) any *arrangements the entity has with any of its associate entities, the originator or any associate entity of the originator are those that would reasonably be expected to have been entered into by parties dealing at arm's length with each other.

Securitised assets

 (3) An asset of an entity is a securitised asset if:
 (a) the entity is a *securitisation vehicle; and
 (b) the asset consists of:
 (i) *debt interests issued by an entity other than the originator in relation to the securitisation vehicle that is mentioned in paragraph (2)(b); or
 (ii) a lease for the hire of goods that would be a lease covered by paragraph (b) of the definition of on‑lent amount if a reference to an entity in that definition were a reference to that originator; or
 (iii) a *scheme that, apart from the operation of paragraph 974‑25(1)(b), would have given rise to a debt interest covered by subparagraph (i); and
 (c) the asset provides security for the issuing of debt interests that funded the acquisition of the asset by the securitisation vehicle (see paragraph (2)(c)).

What is the required credit rating?

 (4) For the purposes of step 2 of the method statement in subsection (1), the required credit rating for an entity issuing a *debt interest is:
 (a) if the interest is a *subordinated debt interest—a long‑term foreign currency corporate credit rating of at least A (or equivalent) given to the entity by an internationally recognised rating agency; or
 (b) if the interest is a not a subordinated debt interest—a long‑term foreign currency corporate credit rating of at least BBB (or equivalent) given to the entity by an internationally recognised rating agency.

When must an entity have the required credit rating

 (5) The entity must have the required credit rating as specified in any of the following paragraphs:
 (a) the entity had the required credit rating for the *debt interest when the interest was issued;
 (b) the following subparagraphs apply:
 (i) the entity did not have any long‑term foreign currency corporate credit rating given to it by an internationally recognised rating agency when the debt interest was issued; but
 (ii) the entity had the required credit rating for that interest at any time during the period of 6 months immediately before the interest was issued;
 (c) the following subparagraphs apply:
 (i) when the debt interest was issued, and throughout the period of 6 months immediately before the interest was issued, the entity did not have any long‑term foreign currency corporate credit rating given to it by an internationally recognised rating agency; but
 (ii) the