sec.286What is a mortgage-backed security

### sec.286 What is a mortgage-backed security A mortgage-backed security is— an entitlement or interest of a person in— an entitlement of a mortgagee or another entitlement for a mortgage or pool of mortgages; or amounts payable by a mortgagor under a mortgage or pool of mortgages whether or not on the same conditions applying under the mortgage and whether or not the person is entitled to a transfer of the mortgage or pool of mortgages; 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 mortgage or pool of mortgages; or if another extent is prescribed under a regulation—to the extent prescribed, from the receipts, whether of capital or income, from a mortgage or pool of mortgages; 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 loan secured by a mortgage; a pool of mortgages, if all mortgages in the pool or collection of assets comprising the pool of mortgages under section 288 are loans secured by a mortgage. However, the term does not include— a mortgage, other than a mortgage mentioned in subsection (1) (c) ; or a transfer of a mortgage. It does not matter whether a mortgage-backed security is effected by an instrument or another way. s 286 amd 2002 No. 65 s 26 ; 2013 No. 28 s 14 (retro) (sec.286-ssec.1) A mortgage-backed security is— an entitlement or interest of a person in— an entitlement of a mortgagee or another entitlement for a mortgage or pool of mortgages; or amounts payable by a mortgagor under a mortgage or pool of mortgages whether or not on the same conditions applying under the mortgage and whether or not the person is entitled to a transfer of the mortgage or pool of mortgages; 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 mortgage or pool of mortgages; or if another extent is prescribed under a regulation—to the extent prescribed, from the receipts, whether of capital or income, from a mortgage or pool of mortgages; 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 loan secured by a mortgage; a pool of mortgages, if all mortgages in the pool or collection of assets comprising the pool of mortgages under section 288 are loans secured by a mortgage. (sec.286-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. (sec.286-ssec.3) It does not matter whether a mortgage-backed security is effected by an instrument or another way. - (a) an entitlement or interest of a person in— (i) an entitlement of a mortgagee or another entitlement for a mortgage or pool of mortgages; or (ii) amounts payable by a mortgagor under a mortgage or pool of mortgages whether or not on the same conditions applying under the mortgage and whether or not the person is entitled to a transfer of the mortgage or pool of mortgages; or - (i) an entitlement of a mortgagee or another entitlement for a mortgage or pool of mortgages; or - (ii) amounts payable by a mortgagor under a mortgage or pool of mortgages whether or not on the same conditions applying under the mortgage and whether or not the person is entitled to a transfer of the mortgage or pool of mortgages; 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 mortgage or pool of mortgages; or (ii) if another extent is prescribed under a regulation—to the extent prescribed, from the receipts, whether of capital or income, from a mortgage or pool of mortgages; or - (i) substantially from the receipts, whether of capital or income, from a mortgage or pool of mortgages; or - (ii) if another extent is prescribed under a regulation—to the extent prescribed, from the receipts, whether of capital or income, from a mortgage or pool of mortgages; 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 loan secured by a mortgage; (ii) a pool of mortgages, if all mortgages in the pool or collection of assets comprising the pool of mortgages under section 288 are loans secured by a mortgage. - (i) a loan secured by a mortgage; - (ii) a pool of mortgages, if all mortgages in the pool or collection of assets comprising the pool of mortgages under section 288 are loans secured by a mortgage. - (i) an entitlement of a mortgagee or another entitlement for a mortgage or pool of mortgages; or - (ii) amounts payable by a mortgagor under a mortgage or pool of mortgages whether or not on the same conditions applying under the mortgage and whether or not the person is entitled to a transfer of the mortgage or pool of mortgages; or - (i) substantially from the receipts, whether of capital or income, from a mortgage or pool of mortgages; or - (ii) if another extent is prescribed under a regulation—to the extent prescribed, from the receipts, whether of capital or income, from a mortgage or pool of mortgages; or - (i) a loan secured by a mortgage; - (ii) a pool of mortgages, if all mortgages in the pool or collection of assets comprising the pool of mortgages under section 288 are loans secured by a mortgage. - (a) a mortgage, other than a mortgage mentioned in subsection (1) (c) ; or - (b) a transfer of a mortgage.