31Assets that may be in cover pools

#### 31 Assets that may be in cover pools (1) An asset in a cover pool must be one of the following: (a) an at call deposit held with an ADI and convertible into cash within 2 business days; (b) a bank accepted bill or certificate of deposit that: (i) matures within 100 days; and (ii) is eligible for repurchase transactions with the Reserve Bank; and (iii) was not issued by the ADI that issued the covered bonds secured by the assets in the cover pool; (c) a bond, note, debenture or other instrument issued or guaranteed by the Commonwealth, a State or a Territory; (d) a loan secured by a mortgage, charge or other security interest over residential property in Australia; (e) a loan secured by a mortgage, charge or other security interest over commercial property in Australia; (f) a mortgage insurance policy or other asset related to a loan covered by paragraph (d) or (e); (g) a contractual right relating to the holding or management of another asset in the cover pool; (h) a derivative held for one or more of the following purposes: (i) to protect the value of another asset in the cover pool; (ii) to hedge risks in relation to another asset in the cover pool; (iii) to hedge risks in relation to liabilities secured by the assets in the cover pool; (i) an asset of a kind prescribed by the regulations for the purposes of this paragraph. (2) Paragraph (1)(i) is not limited by paragraphs (1)(a) to (h). (3) Despite subsection (1), a cover pool must not contain an asset of a kind prescribed by the regulations for the purposes of this subsection.