Banking Act 1959

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

Division 3A - Covered bonds  

SECTION 31E   Prudential standards for covered bonds  

(1)    
A prudential standard may provide for any matter relating to covered bonds, including the following:

(a) the issuing of covered bonds;

(b) assets in cover pools;

(c) maintenance of cover pools.

Note:

Prudential standards are made under section 11AF .

(2)    
A prudential standard relating to covered bonds may:

(a) require that the following together satisfy particular requirements in relation to prudential matters:

(i) an ADI;

(ii) one or more covered bond special purpose vehicles that beneficially own assets securing covered bond liabilities of the ADI; and

(b) impose, in relation to assets, or parts of assets, in cover pools that are not treated as assets of an ADI under section 31D , requirements that are different from requirements imposed in relation to assets, or parts of assets, in cover pools that are treated as assets of the ADI under that section; and

(c) impose, in relation to a liability of an ADI to a covered bond special purpose vehicle that is not covered by subsection 31D(3) , requirements that are different from requirements imposed in relation to liabilities that are covered by that subsection; and

(d) impose, in relation to a liability of a covered bond special purpose vehicle to an ADI that is not covered by subsection 31D(4) , requirements that are different from requirements imposed in relation to liabilities that are covered by that subsection.

(3)    
This section does not limit the prudential matters in relation to which APRA may determine standards under section 11AF .