CYPRUS Law and Practice Contributed by: Thanasis Korfiotis, Loizos Papacharalambous, Eleni Korfiotis and Georgia Charalambous, Koushos Korfiotis Papacharalambous LLC
the transfer date, and by the next working day at the latest, the original lender/seller and the credit purchaser provide notice of the transfer to the Registrar of Com - panies, the Land Registry, the Cyprus Stock Exchange and any other competent authority of the Republic of Cyprus that maintains a registry where the securities are kept. • Securitisation Law: (a) pre-sale: the original lender/seller shall notify the underlying borrower/guarantor/ security providers of its intention to trans - fer the relevant credit facility either via publication in three newspapers with daily circulation or via a written notice to each borrower/guarantor/security provider; and (b) post-sale: as soon as possible after the transfer date, the Registrar of Compa - nies, the Land Registry, the Cyprus Stock Exchange and any other competent authority of the Republic of Cyprus that maintains a registry where the securities are kept is to be notified of the transfer. 3.4 Principal Covenants The principal covenants in securitisation/financ - ing documentation are normally divided into the following categories: • financial covenants of the issuer (as described in 2.1 Issuers ) relating to, among other things, the ratio of the value of the real estate assets that form part of the transac - tion (either as charged properties securing the loan portfolio or as real estate properties owned by an SPV following the application of restructuring solutions to the loan portfolio) against the contractual value of the loan port - folio (as defined in 1.2 Structures Relating to Financial Assets ); and
• obligor undertakings given by the issuer, the guarantor (which is often the credit purchaser) and the credit purchaser’s subsidiaries that hold real estate property relating to, among other things, obtaining all relevant authorisa - tions and acting in compliance with all appli - cable laws and underlying agreements when servicing the loan portfolio (as defined in 1.2 Structures Relating to Financial Assets ), bound by certain restrictions with regard to the disposal of the loan portfolio’s assets and the creation of financial indebtedness. These covenants are enforced in the manner described in 3.2 Principal Warranties . 3.5 Principal Servicing Provisions The principal servicing provisions in securitisa - tion/financing documentation oblige the credit purchaser/SPV (as defined in 1.2 Structures Relating to Financial Assets ) to enter into a servicing agreement, the terms of which must be reasonably acceptable to the majority of the investors (whose role is discussed in 2.6 Inves- tors ), with an authorised credit servicer. The ter - mination of the relevant servicing agreement is also regulated under the servicing provisions. These provisions are enforced in the manner described in 3.2 Principal Warranties . 3.6 Principal Defaults The principal defaults in the securitisation docu - mentation are the unremedied failure of payment by the issuer (as described in 2.1 Issuers ) on the due date; any misrepresentation by the issuer, the guarantor (which is often the credit pur - chaser) or subsidiaries of the credit purchaser that hold real estate property; any cross-default of existing financial indebtedness; insolvency; misappropriation of the proceeds; unauthorised
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