Version status: Amended | Document consolidation status: Updated to reflect all known changes
Version date: 1 January 2019 - onwards
  Version 5 of 5    

Article 242 Definitions

For the purposes of this Chapter, the following definitions shall apply:

(1) "clean-up call option" means a contractual option that entitles the originator to call the securitisation positions before all of the securitised exposures have been repaid, either by repurchasing the underlying exposures remaining in the pool in the case of traditional securitisations or by terminating the credit protection in the case of synthetic securitisations, in both cases when the amount of outstanding underlying exposures falls to or below certain pre-specified level;

(2) "credit-enhancing interest-only strip" means an on-balance sheet asset that represents a valuation of cash flows related to future margin income and is a subordinated tranche in the securitisation;

(3) "liquidity facility" means a liquidity facility as defined in point (14) of Article 2 of Regulation (EU) 2017/2402;

(4) "unrated position" means a securitisation position which does not have an eligible credit assessment in accordance