On April 30, 2004 the legal basis of Pfandbriefstelle was adopted to the understanding between the EU-Commission and the republic of Austria concerning the abolishment of public guarantees for Pfandbriefstelle. Thus a new Pfandbriefstelle-Act (Pfandbriefstelle-Gesetz) was resolved by the Austrian parlament.

Pfandbriefstelle is a public law credit institution and is established for an unlimited period of time.

In accordance with its articles of association Pfandbriefstelle acts as issuing vehicle for its members, namely the Austrian Landes-Hypothekenbanken. In such capacity it may issue Mortgage Pfandbriefe (Hypothekenpfandbriefe) and Public Pfandbriefe (Öffentliche Pfandbriefe) based on loans and credits granted by its members to the public sector or secured by mortgages, senior unsecured bonds and loans denominated in euro or in any other currency and thus serves the promotion of long term mortgage loans (Grundkredite), land improvement loans (Meliorationskredite) and public sector loans (Kommunalkredite). The proceeds from its lending activities are on-lent to the member institutions.

As a public entity, Pfandbriefstelle has no shareholders, but members, which do not contribute any share capital. The members are the Austrian Landes-Hypothekenbanken, namely:
 1. HYPO - Bank Burgenland AG, Eisenstadt;
 2. HYPO ALPE-ADRIA-BANK AG, Klagenfurt;
 3. HYPO ALPE-ADRIA-BANK INTERNATIONAL AG, Klagenfurt;
 4. HYPO NOE Landesbank AG, St. Pölten;
 5. HYPO NOE Gruppe Bank AG
 6. Oberösterreichische Landesbank AG, Linz;
 7. Salzburger Landes-Hypothekenbank AG, Salzburg;
 8. Landes-Hypothekenbank Steiermark AG, Graz;
 9. HYPO TIROL BANK AG, Innsbruck;
10. Vorarlberger Landes- und Hypothekenbank AG, Bregenz.

In accordance with the charter of Pfandbriefstelle, any member is entitled to terminate its membership upon giving notice of six months subject to repayment of its loans received from Pfandbriefstelle. Such termination may become effective at the end of a fiscal year.

The Financial Market Authority (FMA) is in charge of the banking supervision, whereas the Austrian Federal Minister of Finance still appoints a state commissioner and a deputy for this task.
In accordance with the Pfandbriefstelle-Act and the articles of association the member institutes and their respective liable public authorities (Gewährsträger) are jointly and severally liable for all obligations of Pfandbriefstelle which have arisen until 2 April 2003. Furthermore the guarantors are jointly and severally liable for all liabilities that have arisen after 2 April 2003 up to 1 April 2007 only if the agreed terms do not mature after 30 September 2017. For these obligations incurred by Pfandbriefstelle, the Austrian Landes-Hypothekenbanken and the respective federal provinces (except Vienna) are liable on a joint and several basis (Gesamtschuldner).
In these cases in an event of default, a recourse against any or all of the member institutes and their respective liable public authorities is possible. In addition all member institutes - except Salzburger Landes-Hypothekenbank AG, Salzburg - are covered by deficiency guarantees (Ausfallsbürgschaft) of their respective federal provinces. These public guarantees also fade out until 1 April 2007 (liabilities accrued to and existing at 2nd of April, 2003 are covered irrespective of their maturity. After that date newly created liabilities accrued to 1st of April, 2007 shall be covered by the provinces provided that their maturity does not go beyond 30th of September, 2017).