Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_4:p2
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 2/7)
Character Range: 204021–206811

if the entity has not repurchased the securities under the arrangements at that time:

                (a) reciprocal purchase agreements (otherwise known as repurchase agreements);
                (b) sell‑buyback arrangements;
                (c) securities loan arrangements.

           Step 2. Add to the result of step 1 the total value, as at that time, of all the *debt interests issued to the entity to which the following paragraphs apply at that time:

                (a) the debt interests remain *on issue;
                (b) each of the debt interests is a loan of money for which no fees, charges or other consideration for the purpose of enhancing the credit rating of the issuer of the interest has been paid or is payable to the entity, any of the entity's *associates or another entity that is a *foreign entity;
                (c) each of the entities issuing the interests has the required credit rating for the interests concerned in accordance with subsections (4) and (5).

           Step 3. Add to the result of step 2 the total value, as at that time, of all the *debt interests that are assets of the entity (whether they are debt interests issued to the entity or not) and to which the following paragraphs apply at that time:

                (a) the risk weight of each of the debt interests is either 0% or 20% under the *prudential standards;
                (b) the debt interests do not satisfy all of the paragraphs in step 2.

           Step 4. Add to the result of step 3 the total value, as at that time, of all the *securitised assets that the entity has at that time if the entity is a *securitisation vehicle at that time (see subsections (2) and (3)). The result is the zero‑capital amount.

Securitisation vehicle

 (2) An entity is a securitisation vehicle if:
 (a) it is an entity established for the purposes of acquiring, funding and holding *securitised assets (see subsection (3)); and
 (b) it has acquired the securitised assets from another entity (the originator); and
 (c) the acquisition of the securitised assets is wholly funded by the issuing of *debt interests by the entity; and
 (d) in issuing the debt interests, the entity does not receive any guarantee, security or other form of credit support from any of its *associate entities, the originator or any associate entity of the originator; and
 (e) the entity has not issued debt interests for any purpose other than for the purpose of funding the acquisition of the securitised assets; and
 (f) there are no debt interests 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