Document ID: chunk:federal_register_of_legislation:F2023L00417:body:0:p9
Version: federal_register_of_legislation:F2023L00417
Segment Type: other
Provision Reference: 
Character Range: 22688–25744

assets owned by the borrowing ADI in the case of bankruptcy, insolvency, liquidation or resolution.

    Secured lending is defined as those loans that an ADI has extended and that are collateralised by legal rights to specifically designated assets owned by the borrowing institution which the ADI can use or re-hypothecate for the duration of the loan, and for which the ADI can claim ownership to in the case of default by the borrower.

    Self-securitised assets are assets securitised for contingent liquidity purposes that are held on-balance sheet.

    Short positions means transactions where an ADI's customer sells a security it does not own, and the ADI subsequently obtains the same security from internal or external sources to make delivery under the sale. Internal sources include the ADI's own inventory of collateral as well as HQLA1 or HQLA2 that is available for re-hypothecation that is held in other customer margin accounts. External sources include collateral obtained through a securities borrowing, reverse repo or like transaction.

    Short-term refers to securities or other debt instruments with original maturity of less than or equal to 12 months.

    Small and medium enterprise (SME) has the meaning given in paragraph 46 and footnote 7 of Attachment A of Prudential Standard APS 210 Liquidity.

    Specific provisions has the meaning given in Prudential Standard APS 220 Credit Quality.

    Stable deposits has the meaning given in paragraph 37 of Attachment A of Prudential Standard APS 210 Liquidity.

    Standby facilities refers to unconditional commitments by an ADI to lend when the customer makes a request under the facility.

    Standby letters of credit refers to letters issued by an ADI to a designated beneficiary to serve as a guarantee for payments made to a specified customer under specified conditions.

    Subsidiary has the meaning given in the Corporations Act 2001.

    Trade finance related obligations are trade-related obligations or agreements directly underpinned by the movement of goods or the provision of services such as:
         * documentary trade letters of credit, documentary and clean collection, import bills and export bills;
         * guarantees directly related to trade finance obligations, such as shipping guarantees; and
         * any other trade-related contingencies.

    Uncommitted contingent funding agreements are contingent funding obligations where the ADI has the right to unconditionally revoke the undrawn portion of these facilities at any time.

    Uncommitted facilities refers to agreements or lending commitments where the ADI has the right to unconditionally revoke the undrawn portion of these facilities at any time.

    Unencumbered means an asset free of legal, regulatory, contractual or other restrictions on the ability of the ADI to liquidate, sell, transfer, or assign the asset. The asset cannot be pledged (either explicitly or implicitly) to secure, collateralise or credit-enhance any transaction, nor be designated