If you would like to propose an asset-backed security (ABS) for eligibility assessment, the following documentation must be provided.
The ABS assessment application form must be completed and returned by email. This will need to be signed and in PDF format.
When filling out the ABS assessment application form, it is a requirement that you also specify exactly where in each document the requested information is located. A hard copy of the associated cover letter must be forwarded to the Bank by post. In order for the Central Bank of Ireland (CBI) to commence the assessment process, it is a requirement that you also provide the rating agencies pre-sale or new issue reports (not the rating agencies web pages) as outlined in Chapter 6 of the General Documentation on Eurosystem Monetary Policy Instruments and Procedures.
In addition to the eligibility criteria applicable to all debt instruments outlined above, ABS are assessed against the ECB’s “true sale” requirements as outlined in Chapter 6 of the General Documentation on Eurosystem Monetary Policy Instruments and Procedures. In order for the CBI to verify that there is a “true sale” at each stage of the transaction to ensure that it is enforceable against any third party, and be beyond the reach of the originator and its creditors, including in the event of the originator’s insolvency, the CBI needs the following documentation:
- legal opinion in respect of the securitisation special-purpose vehicle (SPV);
- legal opinion in respect of each of the originators, transferors (if not the same entities as the originators), and any intermediary (or any other entity from which an interest in the cash-flow generating assets are acquired directly or indirectly by the SPV);
- Legal opinion in respect of true sale;
- each of the legal instruments effecting the “acquisition” and “transfer” of the cash-flow generating assets;
- each of the legal instruments granting security interests in all of the SPV’s and any intermediary’s assets (including, but not limited to, the cash-flow generating assets) in favour of the fiduciary for the benefit of, inter alios, the noteholders;
- investment management document (where a third party manages the portfolio of the cash –flow generating assets on behalf of the SPV)
- definition document(s) (for example, master definitions agreement, incorporated terms memorandum); and
- in the case of Italian securitisation transactions effected pursuant to Italian Law No. 130 of 30 April 1999, the notice(s) of assignment (published in the Official Gazette of the Republic of Italy) and registration(s) of the notice(s) of assignment (in the relevant Companies Register/Register of Enterprises).
In addition, in order to assist in the ongoing monitoring of ABS, the following documentation is needed:
- Latest investor report;
- For transactions issued for more than 3 months, a copy of the most recent rating agency surveillance report;
- Completed Static & Cashflow table;
- Swap confirmations/agreements;
- Servicing agreements; and
- Liquidity provision agreements.
Finally, it is important to note that in the case of ABS eligibility assessments, the list described above is not exhaustive and the CBI would like to remind market participants that the CBI reserves the right to request from any relevant third party (such as the issuer, the originator or the arranger) any clarification and/or legal confirmation that it considers necessary to assess the eligibility of the asset (see Chapter 6 of the General Documentation on Eurosystem Monetary Policy Instruments and Procedures).