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Amendment of section 33 of Principal Act.
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21.— Section 33 of the Principal Act is amended—
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(a) by substituting the following for subsections (2), (3) and (4):
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“(2) A designated mortgage credit institution—
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(a) may include in the cover assets pool maintained by the institution a mortgage credit asset or substitution asset that is located within one or more category A countries, and
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(b) shall not include in the cover assets pool maintained by the institution a mortgage credit asset or substitution asset that is located in one or more category B countries.”,
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and
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(b) by substituting the following for subsection (6):
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“(6) Subject to subsection (7), a designated mortgage credit institution may not include in a cover assets pool a mortgage credit asset if a building related to that mortgage credit asset is being or is to be constructed unless the institution attributes to such mortgage credit asset—
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(a) a prudent market value of nil for the purposes of section 32(8) and (15), and
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(b) any contractual undertaking referred to in section 32(16) made by the institution.
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(7) Subsection (6) shall cease to apply in the case of a building referred to in that subsection immediately upon the building being ready for occupation as a commercial or residential property.”.
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