DUTIES ACT 2001 - SECT 130C What is an asset-backed security

DUTIES ACT 2001 - SECT 130C

130C What is an asset-backed security

(1) An
"asset-backed security" is—

(a) an entitlement or interest of a person in—

(i) an entitlement of a financier for a financial asset or pool of financial assets; or

(ii) amounts payable to a financier under a financial asset or pool of financial assets whether or not on the same conditions applying under the asset and whether or not the person is entitled to a transfer of the asset or pool of assets; or

(b) a debenture, promissory note, bill of exchange, stock, bond, note or other security creating, evidencing or acknowledging indebtedness issued or made by a corporation if the payments under the security are received by the corporation—

(i) substantially from the receipts, whether of capital or income, from a financial asset or pool of financial assets; or

(ii) if another extent is prescribed under a regulation—to the extent prescribed, from the receipts, whether of capital or income, from a financial asset or pool of financial assets; or

(c) a security by which an interest in, or mortgage or charge over, an entitlement, interest or security mentioned in paragraph (a) or (b) is created; or

(d) a covered bond within the meaning of the Banking Act 1959 (Cwlth) , section 26 , if the cover pool for the covered bond under that section consists of either of the following—

(i) a financial asset;

(ii) a pool of financial assets.

(2) However, the term does not include—

(a) a mortgage, other than a mortgage mentioned in subsection (1) (c) ; or

(b) a transfer of a mortgage or financial asset.

(3) It does not matter whether an asset-backed security is effected by an instrument or another way.