Asset Covered Securities Act, 2001
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What action is to be taken by a designated mortgage credit institution that is in breach of cover assets pool provisions. |
34.—(1) A designated mortgage credit institution shall, as soon as practicable after becoming aware that it has contravened section 32 (1), (4) (5) or (7) or section 33 (2), (3), (5) or (6), take all possible steps to prevent the contravention from continuing or being repeated. Until those steps have been taken, the institution may not issue any further mortgage covered securities. | |
(2) A designated mortgage credit institution is required, as soon as practicable after becoming aware that it has failed to comply with section 32 (8), to take all possible steps to comply with the subsection. Until those steps have been taken, the institution may not issue any further mortgage covered securities. | ||
(3) Where appropriate, the steps to be taken under this section include acquiring other mortgage credit assets or substitution assets for inclusion in the cover assets pool. |