AI Summary of Article 2 Definitions
This Regulation defines securitisation as a tranched transaction where payments depend on the performance of an exposure or pool, subordination allocates ongoing losses and the transaction excludes exposures meeting Article 147(8) of Regulation (EU) No 575/2013. It also defines securitisation special purpose entity (SSPE), originator, resecuritisation, sponsor (credit institution or investment firm establishing or managing ABCP or other securitisations), tranche, traditional and synthetic securitisation, ABCP programme and ABCP transaction, and fully‑supported ABCP arrangements.
Additional definitions cover investor and institutional investor categories, servicer, liquidity facility, revolving exposure and revolving securitisation, early amortisation provision, first loss tranche, securitisation position, original lender, securitisation repository, non‑performing exposure (NPE) and NPE securitisation, credit protection agreement with its premium and payment, synthetic excess spread, sustainability factors (Regulation (EU) 2019/2088) and non‑refundable purchase price discount; Article 10 maps references to trade repository in Regulation (EU) No 648/2012 to securitisation repository.
Article 2 Definitions
For the purposes of this Regulation, the following definitions apply:
(1) "securitisation" means a transaction or scheme, whereby the credit risk associated with an exposure or a pool of exposures is tranched, having all of the following characteristics: (a) payments in the transaction or scheme are dependent upon the performance of the exposure or of the pool of exposures; (b) the subordination of tranches determines the distribution of losses during the ongoing life of the transaction or scheme; (c) the transaction or scheme does not create exposures which possess all of the characteristics listed in Article 147(8) of Regulation (EU) No 575/2013.