Document ID: chunk:federal_register_of_legislation:F2022L01566:body:0:p3
Version: federal_register_of_legislation:F2022L01566
Segment Type: other
Provision Reference: 
Character Range: 5732–8655

purpose vehicle are limited to assets in the cover pool;

       (c)        how assets forming part of the cover pool are identified;

       (d)        the interests of the issuing ADI in assets held by the covered bond special purpose vehicle and the rights of the ADI to recover such assets;

       (e)        the undertakings, if any, given by the issuing ADI in relation to assets transferred to the cover pool and the extent of any mechanisms for ensuring compliance;

       (f)         provisions governing the topping up and removal of collateral held in the cover pool by the covered bond special purpose vehicle and any return of collateral to the issuing ADI; and

       (g)        the provisions, if any, to ensure the continuance of the covered bond special purpose vehicle beyond any default by the issuing ADI.

Covered bond special purpose vehicle

    15.         All agreements, rights and obligations between the issuing ADI, covered bond special purpose vehicles and covered bond holders must be formally and legally documented and must set out the full scope of such agreements, rights and obligations. All affected assets must be dealt with in accordance with these agreements.

    16.         Where assets that have been transferred by the issuing ADI to a covered bond special purpose vehicle are administered by the ADI or an affiliated entity, the assets should, to the maximum extent practicable, continue to be administered consistently with the ADI's policies for similar assets and this requirement should be contained in relevant legal documents.

    17.         An issuing ADI must maintain an accurate and up-to-date register of assets in the cover pool.[3]

    18.         An issuing ADI may maintain a separate, accurate and up‑to‑date register of assets held by the covered bond special purpose vehicle that do not form part of the cover pool or secure covered bond liabilities.[4]

    19.         An issuing ADI must be able to report to APRA at any time, upon written request, assets in the registers referred to in paragraphs 17 and 18 above.

    20.         When determining whether an asset is part of a cover pool, an issuing ADI must have regard to the priority of claims under all possible scenarios, not just under a business‑as‑usual scenario.

    21.         Any assets added to the cover pool, or otherwise provided to the cover bond special purpose vehicle, or returned to the issuing ADI, must be clearly identified.

    22.         The issuing ADI must be able to identify, at all times, all derivatives and other transactions outstanding with a covered bond special purpose vehicle.

    23.         An issuing ADI must ensure that agreements between the ADI, the covered bond special purpose vehicle and covered bond holders:

       (a)        require that all assets not securing covered bond liabilities return to the ADI within one month of