(1) The cover-assets monitor appointed in respect of a designated public credit institution is responsible for monitoring the institution's compliance with sections 47(8) and (11), 50(2) and (8), 51(1) and (4) and 53(4) and (5) and such other matters (if any) relating to the business of such an institution as may be prescribed by the regulations for the purposes of this subsection.

(2) Before a designated public credit institution issues public credit covered securities, or enters into a cover assets hedge contract, the relevant cover-assets monitor shall take reasonable steps to verify -

(a) that the institution will be in compliance with section 47(8), and will not be in contravention of section 48 or 50(8) as a result of the institution having issued those securities or entered into such a contract,