(1) If a credit institution that is or was formerly both a designated mortgage credit institution and a different kind of designated credit institution permitted under this Act has -

(a) issued mortgage covered securities, or

(b) entered into a cover assets hedge contract comprised in its register of mortgage credit covered securities business,

the rights of the holder of those securities, or of each other party to the contract, are secured only on the cover assets that comprise the relevant cover assets pool.

(2) If a credit institution that is or was formerly both a designated public credit institution and a different kind of designated credit institution permitted under this Act has -

(a) issued public credit covered securities, or

(b) entered into a cover assets hedge contract comprised in its register of public credit covered securities business,