Eligibility Criteria
From Open Risk Manual
Definition
Eligibility Criteria denote a set of conditions of legal or quantitative nature that determine whether any particular financial asset can be part of a securitisation portfolio
Details
Eligibility criteria will in general depend on the particular asset class being securitised
Indicative Eligibility Criteria List
- Belong to eligible class (e.g. Auto Loans)
- Are legally valid contracts
- Loan contracts governed by suitable law
- Borrowers are legal entities under suitable jurisdictions
- Are not Non-Performing Loan (unless it is an NPL securitisation)
- Are properly documented
- Their Payable Interest Amount is of appropriate form (e.g. fixed rate)
- Their Payable Principal Amount is of appropriate form (e.g amortising)
Variations
None
Issues and Challenges
None
See Also
Disclaimer
- This information is provided as is without any representation of correctness, completeness or suitability for any purpose whatsoever. Refer to actual securitisation prospectuses for the definitive terms applicable in each case
- Definitions, detailed descriptions and other content may change at any time as further examples or relevant aspects are introduced
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