Banking Act 1959

Part II - Provisions relating to the carrying on of banking business  

Division 3A - Covered bonds  

SECTION 31D   Prudential standards - treatment of assets and liabilities  

(1)    
This section applies for the purposes of applying:

(a) prudential standards in relation to assets in cover pools securing covered bonds issued by an ADI; and

(b) any other prudential standard in relation to the ADI.

(2)    
Treat those assets as assets of the ADI to the extent that the total value of those assets at the time does not exceed 8%, or such other percentage as is prescribed by regulations made for the purposes of section 28 , of the ADI ' s assets in Australia.

(3)    
Disregard any liability of the ADI to a covered bond special purpose vehicle that relates to an asset, or a part of an asset, that is to be treated as an asset of the ADI under subsection (2).

(4)    
Disregard any liability of a covered bond special purpose vehicle to the ADI that relates to an asset, or a part of an asset, that is to be treated as an asset of the ADI under subsection (2).