Article 243 › 5

In addition to the requirements set out in paragraphs 1 to 4, as applicable, all the following conditions shall be met: (a) the securitisation documentation reflects the economic substance of the transaction; (b) the securitised exposures are put beyond the reach of the originator institution and its creditors, including in bankruptcy and receivership. This shall be supported by the opinion of qualified legal counsel; (c) the securities issued do not represent payment obligations of the originator institution; (d) the originator institution does not maintain effective or indirect control over the transferred exposures. An originator shall be considered to have maintained effective control over the transferred exposures if it has the right to repurchase from the transferee the previously transferred exposures in order to realise their benefits or if it is obligated to re-assume transferred risk. The originator institution's retention of servicing rights or obligations in respect of the exposures shall not of itself constitute indirect control of the exposures; (e) the securitisation documentation meets all the following conditions: (i) it does not contain clauses that other than in the case of early amortisation provisions, require positions in the securitisation to be improved by the originator institution including but not limited to altering the underlying credit exposures or increasing the yield payable to investors in response to a deterioration in the credit quality of the securitised exposures; (ii) it does not contain clauses that increase the yield payable to holders of positions in the securitisation in response to a deterioration in the credit quality of the underlying pool; (iii) it makes it clear, where applicable, that any purchase or repurchase of securitisation positions by the originator or sponsor beyond its contractual obligations is exceptional and may only be made at arms' lengths conditions; (f) where there is a clean-up call option, that option shall also meet the following conditions: (i) it is exercisable at the discretion of the originator institution; (ii) it may only be exercised when 10 % or less of the original value of the exposures securitised remains unamortised; (iii) it is not structured to avoid allocating losses to credit enhancement positions or other positions held by investors and is not otherwise structured to provide credit enhancement.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04