41. The prohibition of the inclusion of underlying exposures ‘to a credit -impaired debtor or …

The prohibition of the inclusion of underlying exposures ‘to a credit -impaired debtor or guarantor’ in the pool of underlying exposures as referred to in Article 26b(11) of Regulation (EU) 2017/2402 should be understood as the requirement that, at the time of selection, there should be recourse for the full securitised exposure amount to at least one non-credit-impaired party, irrespective of whether that party is a debtor or a guarantor. Therefore, the underlying exposures should not include either of the following:

• a. exposures to a credit-impaired debtor, when there is no guarantor for the full securitised exposure amount;
• b. exposures to a credit-impaired debtor who has a credit-impaired guarantor.

To the best of the originator’s or original lender’s knowledge

1. Overview

1.1 References

• Article 26b 11.

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/