Definitions

(1) Pfandbrief banks are credit institutions whose business includes the Pfandbrief business. The Pfandbrief business is 1. the issuance of covered debt securities on the basis of acquired mortgages under the designation Pfandbriefe or mortgage Pfandbriefe (hereinafter: mortgage Pfandbriefe), 2. the issuance of covered debt securities on the basis of acquired claims against public-sector bodies under the designation municipal debt securities, municipal bonds or public Pfandbriefe (hereinafter: public Pfandbriefe), 3. the issuance of covered debt securities on the basis of acquired ship mortgages under the designation ship Pfandbriefe, 4. the issuance of covered debt securities on the basis of acquired register liens under section 1 of the Act on Rights in Aircraft or foreign aircraft mortgages under the designation aircraft Pfandbriefe.
(2) Equivalent to the acquisition of a mortgage is a claim against a suitable credit institution for the assignment or partial assignment of a mortgage that is administered by that credit institution in trust for the benefit of the Pfandbrief bank, provided that, in the event of the insolvency of the credit institution, the Pfandbrief bank can demand the segregation of the mortgage. The first sentence applies accordingly to claims within the meaning of subsection (1), second sentence, no. 2, to ship mortgages and to register liens within the meaning of subsection (1), second sentence, no. 4 or foreign aircraft mortgages. For claims within the meaning of subsection (1), second sentence, no. 2 against public debtors within the meaning of section 20(1), the subject matter of the assignment and transfer claim may also be claims against other suitable credit institutions that satisfy the conditions of the first sentence, or that themselves hold equivalent claims against suitable credit institutions or securities custodians subject to public supervision.
(3) Pfandbriefe within the meaning of the following provisions are mortgage Pfandbriefe, public Pfandbriefe, ship Pfandbriefe and aircraft Pfandbriefe.