GREECE Law and Practice Contributed by: Panagiotis (Notis) Sardelas, Matina Kagkelari and Anna Zlatoudi, Sardelas Petsa Law Firm
the summary of the servicing agreement will be registered with the new single electronic registry which will operated by the Hellenic Cadastre. Enforcement of the terms of the servicing agree - ment is made under the law governing said agreement. With respect to the servicing of bank loan receivables by licensed credit servicers, within the meaning of Greek Law 5072/2023, the lat - ter provides the minimum content of servicing agreements, which should include the following clauses: • a detailed description of the servicing activi - ties assigned; • the servicing fees and a reference that these cannot be passed through to the debtors of the receivables; • the costs payable by the SPE; • the authorisation of the servicer to represent the SPE towards debtors; • covenants of the parties to comply with EU and national legislation, specifically data pro - tection rules; • the receivables under servicing, in aggregate (ie, the number and total amount of claims on the signing date) and a case-by-case reference (total claim amount), as well as the status of each loan receivable (performing or non-performing); • the related rights; • undertakings for the fair and prudent handling of the debtors; • the previous notification of the SPE before the assignment of the servicer of any servicing activities (outsourcing) to third parties; and • the intermediary policy on the sale of loan receivables in a secondary market.
Under Greek Law 5072/2023, a copy of the ser - vicing agreement must be submitted to the Bank of Greece (BoG), which is the competent author - ity responsible for the supervision of licensed credit servicers, within ten days of its signing. 3.6 Principal Defaults Principal defaults used in securitisation docu - mentation include: • in the sale and purchase agreement – the breach of representations and warranties in relation to receivables; • in the servicing agreement – the failure of the servicer to meet the Key Performance Indica - tors set, breach of undertakings, or non-com - pliance with laws; and • in the trust deed – the failure of the trustee to apply monies according to the order of prior - ity. Specific defaults are provided for in servic - ing agreements of banking securitisations that intend to be compliant with the HAPS Law (see 4.12 Participation of Government-Sponsored Entities ). Breach of contractual obligations by the servicer or the trustee may also lead to their substitution. 3.7 Principal Indemnities In the case of a breach of corporate warranties, the breaching party is typically obliged to indem - nify the other party against any losses and dam - ages, including any costs. In the case of a breach of warranties with respect to the underlying assets, the documentation usually provides indemnification clauses, as well as the option for the seller to repurchase the receivables that do not meet the set criteria.
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