FINLAND Law and Practice Contributed by: Maria Lehtimäki, Niklas Thibblin and Timo Lehtimäki, Waselius
• reporting on the receivables and the collec - tions; • maintaining records; • processing personal data with respect to the securitised portfolio; and • making payments from the collection account to the transaction account. The servicing agreement also contains provi - sions on servicer default and termination and The principal defaults in securitisation documen - tation, and their effects, are slightly different for each transaction party, but generally the default is triggered by insolvency, a ratings downgrade or failure to comply with transaction documents. If the SPE defaults, the notes become payable, transaction security becomes enforceable and the transaction switches to post-enforcement priority of payments. If the servicer defaults, it is replaced by the back-up servicer. If the origina - tor defaults, any revolving period ends and the seller is no longer able to sell further assets to the SPE. 3.7 Principal Indemnities The principal indemnities in a securitisation relate to the seller indemnifying the SPE against any breach or misrepresentation by the seller. These indemnities are typically included in the asset purchase agreement. However, to achieve a true sale, it is crucial that the seller does not indemnify the SPE for any losses resulting from the inability or unwilling - ness of the underlying debtor(s) to make pay - ments. replacement of servicer. 3.6 Principal Defaults The various external service providers, including in particular the agent and security trustee, will
typically demand that they receive customary indemnities against any claims that arise from them performing their respective services. 3.8 Bonds/Notes/Securities The main liability documents can be in any form that the parties structuring the transaction con - sider appropriate for the transaction. In a public transaction, the liability documents are in the form of listed notes. In a private transaction, the main liability document is usually a loan facil - ity agreement or variable funding note issuance facility agreement. These documents regulate the terms of the funding provided by the inves - tors or lenders to the SPE. 3.9 Derivatives The types of derivatives commonly used are for interest rate hedging and, if relevant, currency hedging. 3.10 Offering Memoranda If the securities are listed, a prospectus compli - ant with Regulation (EU) 2017/1129 of the Euro - pean Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market is required. If the transaction falls within the scope of the EU Securitisation Regulation, a transaction sum - mary is required if no prospectus is prepared.
4. Laws and Regulations Specifically Relating to Securitisation 4.1 Specific Disclosure Laws or Regulations
Detailed and specific disclosure requirements are contained in the EU Securitisation Regulation
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