Section 4 of the Principal Act is amended -

(a) by substituting the following for subsection (4):

"(4) For the purposes of subsection (1), a financial obligation includes a financial obligation that is in the form of security that represents an interest in other mortgage credit that is securitised.",

(b) in subsection (5), by substituting "comprised" for "included" in the 2 places where it occurs, and

(c) by inserting the following after subsection (5):

"(6) Where a mortgage credit asset secured on residential property would, but for the exclusion of residential property from the definition of 'commercial property’ in section 3(1), also be secured on commercial property, a designated commercial mortgage credit institution may, for the purposes of this Act, treat that asset as if it were secured on commercial property rather than residential property.

(7) Where a mortgage credit asset is secured on a single property asset that would, but for this subsection, constitute commercial property in part and residential property in part, then that mortgage credit asset shall, for the purposes of this Act, be regarded, in relation to that property asset, as secured only on commercial property.

(8) In this section -