Document ID: chunk:federal_register_of_legislation:F2023L01572:front:0:p4
Version: federal_register_of_legislation:F2023L01572
Segment Type: other
Provision Reference: 
Character Range: 8366–11337

(or future margin income) — finance charge collections and other income received by the SPV net of costs, interest and expenses;
(h)          facility — a contractual arrangement between an ADI and an SPV for purposes including, but not limited to, the provision of liquidity or other funding, a servicer cash advance or a derivatives transaction in relation to a securitisation;
(i)            gain on sale — an increase in an ADI's equity capital or assets as a result of originating exposures into a securitisation, such as recognition of capitalised expected future margin or servicing income, a profit on the sale of exposures or purchase of a residual income unit;
(j)            implicit support — support provided by an ADI to a securitisation in excess of its explicit contractual obligations;
(k)          liquidity facility — a facility provided by an ADI to an SPV for the primary purpose of funding any timing mismatches between receipts of funds on underlying exposures and payments on securities issued by the SPV or to cover the inability of the SPV to roll-over securities due to market disruption;
(l)            managing ADI — an ADI that manages a securitisation. This includes undertaking responsibility for the day-to-day administration of the SPV, allocation of collections, calculation of payments and preparation of investor reports. A managing ADI may also manage swaps, liquidity and other facilities and events such as the issuance, rollover/refinancing or calling of securities;
(m)        non-senior securities — debt securities issued in a securitisation which are non-senior securitisation exposures;
(n)          non-senior securitisation exposure — a securitisation exposure that is subordinated to another securitisation exposure;
(o)          originating ADI — with respect to a securitisation, an ADI that:
(i)            directly or indirectly originates underlying exposures in the pool;
(ii)         is the managing ADI for the securitisation; or
(iii)       provides a facility (other than a derivatives transaction) or credit enhancement to an ABCP securitisation;
(p)          pool — the underlying exposure or exposures that are securitised by way of assignment or the transfer of rights and obligations to, or by way of rights and obligations held directly in its name by, an SPV. The pool may consist of, but need not be limited to, loans, bonds or equities;
(q)          resecuritisation exposure — a securitisation exposure in which at least one of the underlying exposures in the pool is a securitisation exposure. An exposure to one or more resecuritisation exposures is a resecuritisation exposure. An exposure resulting from retranching of a securitisation exposure is not a resecuritisation exposure if the ADI is able to demonstrate that the cash flows to and from the ADI replicate in all circumstances and conditions an exposure to a securitisation of a pool of assets that contains no securitisation exposures;
(r)