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Law and Regulation of the Issue of Mortgage-Backed Securities

  • Pelma RajapakseEmail author
  • Shanuka Senarath
Chapter

Abstract

This chapter analyses regulatory provisions pertaining to the issue of mortgage-backed securities in Australia. Provided that the special purpose vehicle (SPV) is a trustee of a trust, in most cases, this chapter begins with analysing regulation of trustees, its rights, obligations, and duties in the light of the trustee powers under the Trust Act. The discussion is further extended towards the nature of the relationship between the trustee and bondholders while discussing investment powers of the trustee and the trustee’s right of indemnity. This chapter extends the discussion towards legislative requirements for assuming the role of trustee, as per the Corporations Act of Australia, including disclosure requirements relevant to residential mortgage-backed securities (RMBSs). The chapter winds up by analysing contractual concerns between the bank and the mortgagor while emphasising the importance of notice to borrowers.

Keywords

Trustee Trust Act Notice to borrowers Corporations Act Misleading and deceptive conduct Information memorandum Debentures 

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Griffith UniversityBrisbaneAustralia
  2. 2.University of ColomboColomboSri Lanka

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