sec.130CWhat is an asset-backed security

### sec.130C What is an asset-backed security An asset-backed security is— an entitlement or interest of a person in— an entitlement of a financier for a financial asset or pool of financial assets; or amounts payable to a financier under a financial asset or pool of financial assets whether or not on the same conditions applying under the asset and whether or not the person is entitled to a transfer of the asset or pool of assets; or a debenture, promissory note, bill of exchange, stock, bond, note or other security creating, evidencing or acknowledging indebtedness issued or made by a corporation if the payments under the security are received by the corporation— substantially from the receipts, whether of capital or income, from a financial asset or pool of financial assets; or if another extent is prescribed under a regulation—to the extent prescribed, from the receipts, whether of capital or income, from a financial asset or pool of financial assets; or a security by which an interest in, or mortgage or charge over, an entitlement, interest or security mentioned in paragraph (a) or (b) is created; or a covered bond within the meaning of the Banking Act 1959 (Cwlth) , section 26 , if the cover pool for the covered bond under that section consists of either of the following— a financial asset; a pool of financial assets. However, the term does not include— a mortgage, other than a mortgage mentioned in subsection (1) (c) ; or a transfer of a mortgage or financial asset. It does not matter whether an asset-backed security is effected by an instrument or another way. s 130C ins 2002 No. 65 s 14 (retro) amd 2013 No. 28 s 9 (retro) (sec.130C-ssec.1) An asset-backed security is— an entitlement or interest of a person in— an entitlement of a financier for a financial asset or pool of financial assets; or amounts payable to a financier under a financial asset or pool of financial assets whether or not on the same conditions applying under the asset and whether or not the person is entitled to a transfer of the asset or pool of assets; or a debenture, promissory note, bill of exchange, stock, bond, note or other security creating, evidencing or acknowledging indebtedness issued or made by a corporation if the payments under the security are received by the corporation— substantially from the receipts, whether of capital or income, from a financial asset or pool of financial assets; or if another extent is prescribed under a regulation—to the extent prescribed, from the receipts, whether of capital or income, from a financial asset or pool of financial assets; or a security by which an interest in, or mortgage or charge over, an entitlement, interest or security mentioned in paragraph (a) or (b) is created; or a covered bond within the meaning of the Banking Act 1959 (Cwlth) , section 26 , if the cover pool for the covered bond under that section consists of either of the following— a financial asset; a pool of financial assets. (sec.130C-ssec.2) However, the term does not include— a mortgage, other than a mortgage mentioned in subsection (1) (c) ; or a transfer of a mortgage or financial asset. (sec.130C-ssec.3) It does not matter whether an asset-backed security is effected by an instrument or another way. - (a) an entitlement or interest of a person in— (i) an entitlement of a financier for a financial asset or pool of financial assets; or (ii) amounts payable to a financier under a financial asset or pool of financial assets whether or not on the same conditions applying under the asset and whether or not the person is entitled to a transfer of the asset or pool of assets; or - (i) an entitlement of a financier for a financial asset or pool of financial assets; or - (ii) amounts payable to a financier under a financial asset or pool of financial assets whether or not on the same conditions applying under the asset and whether or not the person is entitled to a transfer of the asset or pool of assets; or - (b) a debenture, promissory note, bill of exchange, stock, bond, note or other security creating, evidencing or acknowledging indebtedness issued or made by a corporation if the payments under the security are received by the corporation— (i) substantially from the receipts, whether of capital or income, from a financial asset or pool of financial assets; or (ii) if another extent is prescribed under a regulation—to the extent prescribed, from the receipts, whether of capital or income, from a financial asset or pool of financial assets; or - (i) substantially from the receipts, whether of capital or income, from a financial asset or pool of financial assets; or - (ii) if another extent is prescribed under a regulation—to the extent prescribed, from the receipts, whether of capital or income, from a financial asset or pool of financial assets; or - (c) a security by which an interest in, or mortgage or charge over, an entitlement, interest or security mentioned in paragraph (a) or (b) is created; or - (d) a covered bond within the meaning of the Banking Act 1959 (Cwlth) , section 26 , if the cover pool for the covered bond under that section consists of either of the following— (i) a financial asset; (ii) a pool of financial assets. - (i) a financial asset; - (ii) a pool of financial assets. - (i) an entitlement of a financier for a financial asset or pool of financial assets; or - (ii) amounts payable to a financier under a financial asset or pool of financial assets whether or not on the same conditions applying under the asset and whether or not the person is entitled to a transfer of the asset or pool of assets; or - (i) substantially from the receipts, whether of capital or income, from a financial asset or pool of financial assets; or - (ii) if another extent is prescribed under a regulation—to the extent prescribed, from the receipts, whether of capital or income, from a financial asset or pool of financial assets; or - (i) a financial asset; - (ii) a pool of financial assets. - (a) a mortgage, other than a mortgage mentioned in subsection (1) (c) ; or - (b) a transfer of a mortgage or financial asset.