ESMA · ESMA_QA_1383 Answer Published

Annex 3: Underlying Exposures - Commercial Real Estate - Non-Payments on equal ranking Underlying Exposures

Regulation
Securitisation Regulation (EU) 2017/2402
Topic
Securitisation Disclosure Templates
Submitted
2019-11-15
Answered
2019-11-15
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Question

How must this ‘Default of Property’ be understood in the context of this field? Do Non-Payments On Equal Ranking Underlying Exposures Constitute Default Of Property?

Answer

[ESMA 33-128-563 Securitisation Q&A, Q&A 5.5.6] The concept of “Default of Property” understood as a reference to the underlying exposure. In other words, this field must be completed by reference to whether non-payments on equal ranking underlying exposures constitute a default of such underlying exposures (with the term “equal ranking” given its legal meaning) — commonly referred to as ‘cross-default’ clauses.
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This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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