(1) A designated mortgage credit institution may issue mortgage covered securities with extendable maturity structures where it complies with the other provisions of this section.

(2) The maturity of mortgage covered securities issued by a designated mortgage credit institution may only be extended by the institution where -

(a) the institution fails to pay the principal due on the scheduled maturity date (as extended by any applicable grace period), or

(b) the Authority or manager directs the institution to extend the maturity of the securities.

(3) A designated mortgage credit institution shall specify the maturity extension triggers in the contractual terms and conditions of mortgage covered securities issued by the institution.

(4) A designated mortgage credit institution shall provide sufficient information to investors about the maturity structure of mortgage covered securities issued by the institution to enable the investors to determine the risk of the securities, including a detailed description of -

(a) the maturity extension triggers,

(b) the consequences for a maturity extension of the insolvency or resolution of the institution, and