Section 33 of the Principal Act is amended -

(a) by substituting the following for subsections (2), (3) and (4):

"(2) A designated mortgage credit institution -

(a) may include in the cover assets pool maintained by the institution a mortgage credit asset or substitution asset that is located within one or more category A countries, and

(b) shall not include in the cover assets pool maintained by the institution a mortgage credit asset or substitution asset that is located in one or more category B countries.",

and

(b) by substituting the following for subsection (6):

"(6) Subject to subsection (7), a designated mortgage credit institution may not include in a cover assets pool a mortgage credit asset if a building related to that mortgage credit asset is being or is to be constructed unless the institution attributes to such mortgage credit asset -

(a) a prudent market value of nil for the purposes of section 32(8) and (15), and

(b) any contractual undertaking referred to in section 32(16) made by the institution.