(1) For the purposes of this section, "underlying asset", in relation to a cover assets pool maintained by a designated public credit institution, means a public credit asset or a substitution asset that is then comprised in the pool.
(2) Subject to subsection (7), a public credit asset or a substitution asset that replaces an underlying asset forms part of the relevant cover assets pool only if the replacement has been approved by the relevant cover-assets monitor.
(3) If an underlying asset when included in a cover assets pool maintained by a designated public credit institution contravenes or fails to comply with a provision of this Chapter, the regulations or a requirement of the Authority or the relevant cover-assets monitor made under such a provision, the institution shall, in accordance with this section, replace the underlying asset with a public credit asset or substitution asset that the institution has acquired for the purpose or is currently holding.
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