8‑215 Meaning of OECD Securitisation Ent8‑215 Meaning of OECD Securitisation Entity

8‑215 Meaning of OECD Securitisation Entity

(1) An Entity is a OECD Securitisation Entity if: (a) the Entity is a participant in a Securitisation Arrangement; and (b) the Entity only carries out activities that facilitate one or more Securitisation Arrangements; and (c) the Entity grants security over its assets in favour of its creditors (or the creditors of another OECD Securitisation Entity); and (d) the Entity pays out all cash received from its assets to its creditors (or the creditors of another OECD Securitisation Entity), on an annual or more frequent basis, other than: (i) cash retained to meet an amount of profit required by the documentation of the Securitisation Arrangement mentioned in paragraph (a), for eventual distribution to equity holders (or equivalent); or (ii) cash reasonably required under the terms of the Securitisation Arrangement for either (or both) of the purposes specified in subsection (2); and (e) any profit referred to in subparagraph (d)(i) for a Fiscal Year is negligible relative to the revenues of the Entity for the Fiscal Year. (2) For the purposes of subparagraph (1)(d)(ii), the following purposes are specified: (a) to make provision for future payments which are required, or will likely be required, to be made by the Entity under the terms of the Securitisation Arrangement; (b) to maintain or enhance the creditworthiness of the Entity.