50. Substitution of certain cover assets and restrictions on inclusion of substitution assets in cover assets pool of designated public credit institution.
(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.