+Section 2 Recognition of significant risk transfer
---+Article 244 Traditional securitisation
------+Article 244 1.
------+Article 244 2.
------+Article 244 3.
------+Article 244 4.
------+Article 244 5.
------+Article 244 6.
---+Article 245 Synthetic securitisation
------+Article 245 1.
------+Article 245 2.
------+Article 245 3.
------+Article 245 4.
------+Article 245 5.
------+Article 245 6.
---+Article 246 Operational requirements for early amortisation provisions

Section 2 Recognition of significant risk transfer

Section 2 Recognition of significant risk transfer

1. Overview

,
Article 244 Traditional securitisation
Article 245 Synthetic securitisation
Article 246 Operational requirements for early amortisation provisions

Article 246

Operational requirements for early amortisation provisions

Where the securitisation includes revolving exposures and early amortisation provisions or similar provisions, significant credit risk shall only be considered transferred by the originator institution where the requirements laid down in Articles 244 and 245 are met and the early amortisation provision, once triggered, does not:

(a) 

subordinate the institution’s senior or pari passu claim on the underlying exposures to the other investors’ claims;

(b) 

subordinate further the institution’s claim on the underlying exposures relative to other parties’ claims; or

(c) 

otherwise increase the institution’s exposure to losses associated with the underlying revolving exposures.

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements

3. Related Standards

Standards