Commonwealth Consolidated Regulations

[Index] [Table] [Search] [Search this Regulation] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

CORPORATIONS REGULATIONS 2001 - REG 5D.1.03

Meaning of mortgage - backed security

  (1)   A mortgage - backed security is:

  (a)   an interest in a trust that entitles the holder of, or beneficial owner under, the interest to:

  (i)   the whole, or any part, of the rights or entitlements of a mortgagee and any other rights or entitlements in respect of a mortgage or pool of mortgages; or

  (ii)   any amount payable by the mortgagor or mortgagors under a mortgage or mortgages (whether or not the amount is payable to the holder of, or beneficial owner under, the interest on the same terms as under the mortgage or mortgages); or

  (iii)   payments that are derived mainly from the income or receipts of a mortgage or pool of mortgages;

    and that may, in addition, entitle the holder, or beneficial owner, to a transfer or assignment of the mortgage or mortgages; or

  (b)   a debt security (whether or not in writing) the payments under which by the person who issues or makes the debt security are derived mainly from the income or receipts of a mortgage or pool of mortgages; or

  (c)   any of the following:

  (i)   an interest in a trust:

  (A)   creating a right or interest (whether described as a unit, bond or otherwise) for a beneficiary; or

  (B)   conferring a right or interest (whether described as a unit, bond or otherwise) on a beneficiary; or

  (C)   consisting of a right or interest (whether described as a unit, bond or otherwise) of a beneficiary;

    in a scheme under which any profit or income in which the beneficiaries share arises from the acquisition, holding, management or disposal of a mortgage, pool of mortgages or the income or receipts of a mortgage or pool of mortgages;

  (ii)   any instrument that evidences a right or interest mentioned in subparagraph   (i);

  (iii)   a security (whether or not in writing) the payments under which by the person who issues or makes the security are derived mainly from the income or receipts of a mortgage or pool of mortgages;

  (iv)   an interest in a trust or a debt security (whether or not in writing);

  (v)   an instrument or property that creates an interest in, or charge over an interest in, a trust;

  (vi)   a debt security (whether or not in writing);

  (vii)   any other property to which paragraph   (a) or (b) or subparagraph   (i), (ii) or (iii) applies.

  (2)   However, a mortgage - backed security does not include an instrument or property consisting of any of the following:

  (a)   a mortgage;

  (b)   the transfer of a mortgage;

  (c)   a declaration of trust.


AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback