Document ID: chunk:federal_register_of_legislation:F2023L01572:front:0:p20
Version: federal_register_of_legislation:F2023L01572
Segment Type: other
Provision Reference: 
Character Range: 51300–54267

be sufficient to fund the exposures in the pool up to their longest contractual maturity date.

Securitisation of revolving credit facilities
10.         Where an ADI's role in a securitisation of revolving credit facilities is limited solely to managing the scheme, in addition to paragraphs 1 to 8 of this Attachment, the ADI must ensure that scheduled amortisation, early amortisation or similar provisions, if triggered, do not:
(a)          subordinate, defer or waiver the receipt of contracted fees or other income for its role as manager; or
(b)          under any circumstance result in the ADI having an exposure to losses associated with the underlying pool of exposures, except for contracted fees or other income for its role as manager.

Attachment B — Operational requirements for funding-only securitisation

Non-senior securities issued in a securitisation
     1. Where a securitisation for funding-only purposes includes a date-based call option, non-senior securities must share pro rata loss allocation and must not differ in maturity.
     2. An originating ADI must not repurchase previously sold non-senior securities except to give effect to a clean-up call that complies with paragraph 5(c) of this Attachment.[32]

Purchase of securities issued in a securitisation
3.             Subject to paragraph 2 of this Attachment, an originating ADI may purchase securities issued in the securitisation, provided:
(a)          the purchase is conducted on an arm's-length basis and on market terms and conditions;[33]
(b)          the ADI has no pre-existing obligation to undertake the purchase;[34] and
(c)          the purchase does not give effect to a call option other than a call that complies with paragraph 5(c) or 5(d) of this Attachment.
4.             If APRA considers that the pattern or the amount of an originating ADI's purchase of securities, or its stated willingness to do so, suggests that the ADI is providing implicit support to a securitisation, then the provisions in paragraphs 69 to 71 of this Prudential Standard will apply.

Repurchase of exposures out of the pool held in a securitisation
5.             An originating ADI may only repurchase exposures out of the pool held in a securitisation or repurchase securities to give effect to a clean-up or date-based call under the following circumstances:
(a)          where an ADI grants a request for a further advance by a borrower or similar purpose:
(i)            the repurchase or replacement is conducted on an arm's-length basis and on market terms and conditions; and
(ii)         the repurchased exposures or replaced exposures are not in default;
(b)          where an ADI is required to repurchase (or replace an exposure) as a result of a representation or warranty. In such a case the repurchase or replacement must be:
(i)            completed in all respects within 120 days of the transfer of exposures in a securitisation; and
(ii)         conducted on