(1) Any mortgage credit asset or substitution asset located within an EEA country may be included in a cover assets pool maintained by a designated mortgage credit institution.
(2) A designated mortgage credit institution -
(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
(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.
(2A) Where a designated mortgage credit institution includes in a cover assets pool a mortgage credit asset or substitution asset that is located within one or more category A countries, it shall -
(a) verify that the asset complies with this section and sections 32(18), 58A and 58C,
(b) ensure that the asset offers a level of security similar to that of collateral assets located in the European Union, and
(c) ensure t
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