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