View source for STS Criterion 11. No defaulted exposures or exposures subject to outstanding disputes

== Description ==
No defaulted exposures or exposures subject to outstanding disputes <ref>EBA STS Framework for Synthetic Securitisation, EBA/DP/2019/01</ref>

== Content ==
The underlying exposures should not include, at the time of selection:
* exposures in default within the meaning of Article 178(1) of Regulation (EU) No 575/2013,
* exposures to a credit-impaired debtor or guarantor, who, to the best of the originator’s or original lender’s knowledge:
** has been declared insolvent or had a court grant his creditors a final non-appealable right of enforcement or material damages as a result of a missed payment within three years prior to the date of origination of the underlying exposure or has undergone a debt-restructuring process with regard to his non-performing exposures within three years prior to the date of selection of the underlying exposures, except if:
*** a restructured underlying exposure has not presented new arrears since the date of the restructuring, which must have taken place at least one year prior to the date of selection of the underlying exposures; and
*** the information provided by the originator in accordance with points (a) and (e)(i) of the first subparagraph of Article 7(1) of the Securitisation Regulation explicitly sets out the proportion of restructured underlying exposures, the time and details of the restructuring as well as their performance since the date of the restructuring;
** was, at the time of origination of the underlying exposure, where applicable, on a public credit registry of persons with adverse credit history or, where there is no such public credit registry, another credit registry that is available to the originator or original lender; or
** has a credit assessment or a credit score indicating that the risk of contractually agreed payments not being made is significantly higher than for comparable exposures held by the originator which are not securitised.

== Rationale ==
See overarching rationale for consistency with traditional qualifying framework.

== Issues and Challenges ==


== References ==
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[[Category:STS Simplicity]]