(1) A designated public credit institution may, with the prior consent of the cover-assets monitor concerned, use the proceeds of a cover asset that has been realised -
(a) to create or acquire permitted public credit assets or substitution assets for inclusion in the relevant cover assets pool, or
(b) to discharge secured claims.
(2) Subsection (1) applies even if -
(a) the institution is subject to an insolvency process, or
(b) the institution has been given a notice of the kind referred to in section 50 (5) (e).
(3) Money received by a designated public credit institution as the proceeds of realising a cover asset forms part of the relevant cover assets pool, and is to be treated as part of the related public credit asset or related substitution asset, until it -
(a) is used in accordance with subsection (1),
(b) is released from that pool as an underlying asset and is replaced by other public credit assets or substitution assets that are included in the cover assets pool in accorda
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