13 Main contractual structures q Transfer agreement Regulates the assignment of receivables by the initiator to SPV. Main clauses: (a) criteria for the selection of claims; (b) the methods of calculation, the payment of the consideration; (c) price adjustment in the event of incorrect registration or exclusion of claims; (d) limited redress mechanism. q Servicing agreement by which the offeror assumes responsibility for managing the collection and recovery of assigned claims. Main clauses: (a) the scope of the service; (b) reporting; (c) the arrangements for the management and recovery of claims, recovery procedures, revenue management, settlement agreements, haircuts, renegotiations, replacements or suspensions; (d) alternative mechanisms for the service. 13 9 Structure of a residential mortgage transaction for heavy goods vehicles The subscription of senior assets by the originator will enable that person to use those securities for treasury operations with the ECB (`monetary policy operations`) once he or she has acquired his qualification as an “appropriate asset” in accordance with the criteria for assets that can be used as collateral for Eurosystem financing operations. Similarly, these securities can be considered to be used for supply operations with other market partners. THE CHARACTERISTICS OF ASSET-BACKED SECURITIES ELIGIBLE FOR EUROSYSTEM FINANCING OPERATIONS IN EUROSYSTEM ACTIVITIES; the triple-A rating of two credit rating agencies; listing on a regulated market (as a rule, the Luxembourg Stock Exchange or the Irish Stock Exchange are chosen); Dematerialization. 9 14 Main contractual structures q Warranty and Desnity Agreement A contract where by which the offeror issues to the SPV certain representations and guarantees about itself, the existence and quality of the claims and underlying security rights, its debtors and guarantors and mortgage immovable property. The Offeror also assumes certain indemnification obligations towards the SPV, in particular with regard to any damages resulting from the inaccuracy or inaccuracy of these representations and warranties. q Call option and Pre-emption agreement This agreement governs the cases in which the offeror will be granted, where applicable, rights of option or priority for the redemption of credits. q cash allocation, management and payment agreement The contract governs the opening and operation of accounts related to securitisation and the manner in which the amounts invested therein, as well as the manner in which the sums that the SPV owes to the creditors of the transaction in accordance with the order of priority of payment. q Swap Contract by which the SPV concludes one or more swap contracts on interest rate risk.
14 1 SECURITISATION OF BANK LOANS Law 130/1999 introduced the securitisation scheme for bank loans in Italy. better known as securitisation, reciprocity by the banking system 10 main players involved in securitisation 10 7 The financial crisis Self-tenure Self-tenure is the direct consequence of the ECB`s refinancing arrangements. . . .