Section 48 of the Principal Act is repealed and substituted by the following:

"48. What can be included in the cover assets pool maintained by a designated public credit institution.

(1) Subject to the other provisions of this Chapter, a designated public credit institution -

(a) may include any public credit asset or substitution asset located within an EEA country or category A country in the cover assets pool maintained by the institution,

(b) shall not include a public credit asset or substitution asset located only within a category B country in the cover assets pool maintained by the institution.

(2) A designated public credit institution may not, subject to subsection (3), include in its cover assets pool -

(a) a section 5(1) (b) asset or a section 5(1) (d) asset unless such asset complies with any creditworthiness standards or criteria which may be specified by the Authority in a regulatory notice made for the purposes of this paragraph,

(b) a section 5(1) (c) asset unless such asset complies with -

(i) risk weighting standards or criteria for capital adequacy purposes which may be specified by the Authority in a regulatory notice made for the purposes of this paragraph, and

(ii) creditworthiness standards or criteria which may be specified by the Authority in a regulatory notice made for the purposes of this paragraph.