GREECE Law and Practice Contributed by: Panagiotis (Notis) Sardelas, Matina Kagkelari and Anna Zlatoudi, Sardelas Petsa Law Firm
originator to the investors through a credit pro - tection agreement, usually in the form of a finan - cial guarantee or a credit derivative (such as a total return swap), whereby the originator agrees to pay the investor a credit protection premium and the investor agrees to pay the originator a credit protection payment, if a contractually agreed credit events occurs. Synthetic securitisations are permitted under the EU legislation and are recognised by the Single Supervisory Mechanism and the BoG for the regulatory capital treatment of credit institutions. A number of synthetic securitisations have been concluded by Greek systemic banks in recent years. 6. Structurally Embedded Laws of General Application 6.1 Insolvency Laws Under paragraph 19 of Article 10 of the Secu - ritisation Law, upon perfection of the sale and transfer of the receivables by registration of the transfer (assignment) agreement with the pledge registry, the validity of the sale and transfer of the receivables (including any rights ancillary to the claims transferred) shall not be affected by the opening of any insolvency proceedings against the seller, the SPE, the servicer of the receiva - bles or any third-party guarantor or beneficiary of other ancillary rights. In addition, upon registration of the transfer (assignment) agreement with the pledge regis - try, a first-ranking pledge is created by operation of law over: • the receivables for the benefit of the hold - ers of the notes and other secured creditors under the securitisation transaction; and
• the proceeds of collections made by the servicer in respect of the receivables, which should be deposited in a separate bank account held with the servicer itself (if it is a credit institution) or with a credit or financial institution within the EEA. This collection account is segregated from the servicer’s or the relevant account bank’s insol - vency estate (as applicable). Secured claims are satisfied from the enforcement of the statutory pledge ahead of the claims of any statutory pref - erential creditors. In addition, the Securitisation Law provides that, following the registration of the transfer of the claims, no security interest or encumbrance can be created over the receivables other than the aforementioned statutory pledge. Finally, according to the Securitisation Law, any security interest granted for the account of the noteholders, any funds received by the servicer on behalf of the noteholders and any titles of securities deposited with the servicer are not subject to attachment, set-off or any other encumbrance sought by the servicer or by any of its creditors, nor are they included in the ser - vicer’s insolvency estate. 6.2 SPEs In Greek securitisation transactions, the SPE is typically a newly established orphan entity, established offshore and keeping separate financial statements. Pursuant to the Securiti - sation Law, SPEs may not engage in any other activity outside the scope of securitisation; see 1.4 Special Purpose Entity (SPE) Jurisdiction and 2.1 Issuers . Substantive consolidation is not provided for in Greek insolvency law. Given that the SPE has a
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