(1) In these Regulations, "eligible property" in relation to a mixed asset class bond or programme means any interest in -

(a) subject to paragraph (1B), eligible assets specified in and compliant with the requirements contained in Article 129 of the capital requirements regulation;

(i) exposures to a body qualifying for credit quality step 2 on the credit quality assessment scale set out in that Annex shall not be eligible property; and

(ii) senior units, issued by French Fonds Communs de Creances or by equivalent securitisation entities governed by the laws of the United Kingdom or an EEA state, securitising residential real estate or commercial real estate exposures may only be assessed as eligible assets if -

(aa) the residential real estate or commercial real estate exposures secured were originated or acquired by the issuer or a connected person; and

(bb) the senior units have a credit assessment by a nominated external credit assessment institution which is the most favourable category of credit assessment made by that external credit assessment institution;