Securitisation 2025

CYPRUS Law and Practice Contributed by: Thanasis Korfiotis, Loizos Papacharalambous, Eleni Korfiotis and Georgia Charalambous, Koushos Korfiotis Papacharalambous LLC

the exposures are transferred or assigned to an SPE (as defined in 6.1 Insolvency Laws ) in compliance with the provisions of said Law for the purposes of securitisation – notwithstand - ing the provisions of any other law or directives issued pursuant to the Securitisation Law that apply to the originator, the SPE, the underlying debtor or any other third parties – the transfer of exposures from the originator to the SPE is final, absolute and binding for any insolvency official appointed for the purpose of liquidation of the originator/transferor, irrespective of the date of his or her appointment. In particular, the transfer is absolute and a true sale is effected, separating the titles of the expo - sures from the originator, once the predeter - mined conditions agreed by the originator and the SPE are satisfied. However, this only applies if the transfer or assignment relates to the total amount of each exposure – and not to only part of it – and is made in writing and signed by, or on behalf of, the originator and the SPE and is appropriately witnessed. Furthermore, under the Securitisation Law, an originator that intends to transfer exposures to an SPE for securitisation purposes shall provide notice of its intention within 30 calendar days before proceeding with the transfer of said expo - sures by: • publishing notice of the transfer in a promi - nent position in three newspapers with daily circulation; or • providing written notification to the underlying borrowers, collateral providers and guaran - tors of such exposures. A notification, either by way of publication or written notification, includes the following infor - mation and assurances:

• any charges or taxes relating to the trans - fer and securitisation of the exposures and related collaterals to the SPE are not borne by the underlying debtor; • the transfer of exposures from an originator to an SSPE, for the purposes of securitisation, does not affect the rights and responsibilities of the underlying debtor with regard to the process laid down in the Code of Conduct, which is annexed to the Arrears Management Directive, or another procedure that is appli - cable to and applied by the originator on the basis of the existing legislation or/and direc - tives of the CBC; • the transfer of exposures from an originator to an SPE, for the purposes of securitisation, does not affect the right of the underlying debtor to submit an application for an insol - vency settlement, nor the right of the underly - ing debtor or other persons concerning the appointment of an examiner pursuant to Part IVA of the Companies Law; • any procedure that is in progress pursuant to the Insolvency of Natural Persons (Personal Repayment Schemes and Debt Relief Orders) Law or Part IVA of the Companies Law is not affected by the transfer and continues to be carried out by the underlying debtor and the servicer; • an explanation in relation to the application, or not, of the right of set-off in the event of liquidation of the originator under Section 298B of the Companies Law; and • information as to the identity of the servicer, clarification that the servicer henceforth assumes the role of the data protection officer, and an explanation to the debtor of the duties of the data protection officer that arise from Regulation (EU) 2016/679 and the Cypriot law transposing it.

CHAMBERS.COM