Section 45 of the Principal Act is amended -

(a) in subsection (2)(b), by inserting "(including those relating to pool hedge collateral)" after "into",

(b) by substituting the following for subsections (3) and (4):

"(3) If -

(a) a contract of a kind referred to in subsection (1) relates only to -

(i) public credit securities issued by a designated public credit institution,

(ii) public credit assets or substitution assets, or both, that are comprised in a cover assets pool maintained by a designated public credit institution, or

(iii) both -

(I) public credit securities issued by a designated public credit institution, and

(II) public credit assets or substitution assets, or both, that are comprised in a cover assets pool maintained by that institution,

and

(b) the institution and each other party to the contract have agreed that the contract is to be comprised in the cover assets pool as a cover asset,

the institution shall ensure that the contract complies with the requirements of subsections (4) and (5).