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Deposit Takers Act 2023

Crisis management and resolution - Covered bonds - Interpretation relating to covered bonds

403: Interpretation

You could also call this:

"What special words mean in this law"

Illustration for Deposit Takers Act 2023

When you read this part of the law, some words have special meanings. A cover pool is property that a special company owns and uses to guarantee its debts. This property is used to secure the company's obligations under a covered bond programme.

You will see the term cover pool monitor, which refers to a person who meets certain requirements outlined in section 419(1). A covered bond is a type of debt security that has specific features, such as being an unsecured obligation of the issuer. The principal and interest owing under the bond are guaranteed by a special company.

A covered bond programme is a programme under which covered bonds can be issued, using a single cover pool as security. The term covered bond SPV has a meaning given to it by section 404, and the term issuer has a meaning given to it by section 405. When you see the word own, it includes holding a beneficial or legal interest or entitlement in something.

A registered covered bond programme is a programme that has been registered under section 412. These meanings are important to understand when you are reading about covered bonds and related topics. You can find more information about these topics by looking at the relevant sections of the law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS475558.

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"Valuers must keep and share work records with the Bank and others as required by law."

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404: Meaning of covered bond SPV, or

"What is a covered bond SPV, a person who guarantees special bonds using transferred property"

Part 7Crisis management and resolution
Covered bonds: Interpretation relating to covered bonds

403Interpretation

  1. In this subpart, unless the context otherwise requires,—

    cover pool, in relation to a covered bond programme, means property that—

    1. is owned by the relevant covered bond SPV; and
      1. secures the obligations of that SPV under the covered bond programme

        cover pool monitor means a person that meets the requirements of section 419(1)

          covered bond means a bond, note, or other debt security that has the following features:

          1. it represents an unsecured obligation of the issuer; and
            1. the principal and interest owing under the bond, note, or other debt security are guaranteed by a covered bond SPV; and
              1. the obligations under that guarantee are secured by property that is owned by that SPV

                covered bond programme means any programme of covered bonds under which, on the security of a single cover pool, covered bonds may be issued

                  covered bond SPV has the meaning given to it by section 404

                    issuer has the meaning given to it by section 405

                      own includes to hold a beneficial, or legal, interest or entitlement

                        registered covered bond programme means a covered bond programme that has been registered under section 412.

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