Article 244 › 5

In addition to the requirements set out in paragraphs 1 to 4, as applicable, the transfer shall comply with the following conditions: (a) the securitisation documentation reflects the economic substance of the transaction; (b) the credit protection by which the credit risk is transferred complies with Article 247(2); (c) the instruments used to transfer credit risk do not contain terms or conditions that: (i) impose significant materiality thresholds below which credit protection is deemed not to be triggered if a credit event occurs; (ii) allow for the termination of the protection due to deterioration of the credit quality of the underlying exposures; (iii) other than in the case of early amortisation provisions, require positions in the securitisation to be improved by the originator institution; (iv) increase the institution's cost of credit protection or the yield payable to holders of positions in the securitisation in response to a deterioration in the credit quality of the underlying pool; (d) an opinion is obtained from qualified legal counsel confirming the enforceability of the credit protection in all relevant jurisdictions; (e) the securitisation documentation shall make clear, where applicable, that any purchase or repurchase of securitisation positions by the originator or sponsor beyond its contractual obligations may only be made at arms' lengths conditions; (f) where there is a clean-up call option, that option meets all 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