Source: https://ecfr.io/Title-12/se12.4.244_17
Timestamp: 2020-02-23 20:11:34
Document Index: 50962624

Matched Legal Cases: ['§244', 'art 244', '§244', 'art 244', '§244', 'art 244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244', '§244']

[12 CFR §244.7] Title 12 Part 244 → Subpart B → §244.7 : Code of Federal Regulations ';
Title 12 Part 244 → Subpart B → §244.7
Title 12 → Chapter II → Subchapter A → Part 244 → Subpart B → §244.7
§244.7 Commercial mortgage-backed securities.
(b) Third-party purchaser. A sponsor may satisfy some or all of its risk retention requirements under §244.3 with respect to a securitization transaction if a third party (or any majority-owned affiliate thereof) purchases and holds for its own account an eligible horizontal residual interest in the issuing entity in the same form, amount, and manner as would be held by the sponsor under §244.4 and all of the following conditions are met:
(v) The fair value (expressed as a percentage of the fair value of all of the ABS interests issued in the securitization transaction and dollar amount (or corresponding amount in the foreign currency in which the ABS interests are issued, as applicable)) of the eligible horizontal residual interest in the securitization transaction that the sponsor would have retained pursuant to §244.4 if the sponsor had relied on retaining an eligible horizontal residual interest in that section to meet the requirements of §244.3 with respect to the transaction;
(vi) A description of the material terms of the eligible horizontal residual interest retained by each initial third-party purchaser, including the same information as is required to be disclosed by sponsors retaining horizontal interests pursuant to §244.4;
(8) Hedging, transfer and pledging—(i) General rule. Except as set forth in paragraph (b)(8)(ii) of this section, each third-party purchaser and its affiliates must comply with the hedging and other restrictions in §244.12 as if it were the retaining sponsor with respect to the securitization transaction and had acquired the eligible horizontal residual interest pursuant to §244.4; provided that, the hedging and other restrictions in §244.12 shall not apply on or after the date that each CRE loan (as defined in §244.14) that serves as collateral for outstanding ABS interests has been defeased. For purposes of this section, a loan is deemed to be defeased if:
(A) cash or cash equivalents of the types permitted for an eligible horizontal cash reserve account pursuant to §244.4 whose maturity corresponds to the remaining debt service obligations, have been pledged to the issuing entity as collateral for the loan and are in such amounts and payable at such times as necessary to timely generate cash sufficient to make all remaining debt service payments due on such loan; and