DUTIES ACT 2001 - SECT 286 What is a mortgage-backed security

DUTIES ACT 2001 - SECT 286

286 What is a mortgage-backed security

(1) A
"mortgage-backed security" is—

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

(i) an entitlement of a mortgagee or another entitlement for a mortgage or pool of mortgages; or

(ii) amounts payable by a mortgagor under a mortgage or pool of mortgages whether or not on the same conditions applying under the mortgage and whether or not the person is entitled to a transfer of the mortgage or pool of mortgages; 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 mortgage or pool of mortgages; or

(ii) if another extent is prescribed under a regulation—to the extent prescribed, from the receipts, whether of capital or income, from a mortgage or pool of mortgages; 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 loan secured by a mortgage;

(ii) a pool of mortgages, if all mortgages in the pool or collection of assets comprising the pool of mortgages under section 288 are loans secured by a mortgage.

(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.

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