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New version applies from 01/01/2014 — introduced by Capital Requirements Directive. 257 provisions change. Article 101 is deleted from 01/01/2014.

Article 101 - ▼M9

Article 101
▼M9

1.A sponsor credit institution, or an originator credit institution which in respect of a securitisation has made use of Article 95 in the calculation of risk-weighted exposure amounts or has sold instruments from its trading book to a securitisation special purpose entity to the effect that it is no longer required to hold own funds for the risks of those instruments shall not, with a view to reducing potential or actual losses to investors, provide support to the securitisation beyond its contractual obligations.

2.If an originator credit institution or a sponsor credit institution fails to comply with paragraph 1 in respect of a securitisation, the competent authority shall require it at a minimum, to hold capital against all of the securitised exposures as if they had not been securitised. The credit institution shall disclose publicly that it has provided non-contractual support and the regulatory capital impact of having done so.

Official text · consolidated version 01/07/2013 (no longer in force) Open full page ↗
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