Q&As

What is a true sale in a securitisation context?

read titleRead full title

Published by a ÑÇÖÞÉ«ÇéÍø Banking & Finance expert
Published on: 05 October 2016
imgtext

What is a securitisation?

A securitisation is a financing technique used to finance the ownership or sale of types of assets that would otherwise be difficult to finance or sell (ie 'illiquid' assets such as bilateral loans and mortgages and other loans to natural persons). In its most common form, a securitisation consists in the sale of a large pool of such cash-generating assets to a special purpose vehicle (SPV). The SPV pays for the assets by issuing interest-bearing securities (also known as bonds or notes) into the capital markets, which have the benefit of security over those assets and/or the cashflows generated by them (known as receivables). The cashflows generated by the receivables are used to pay interest and repay principal on the securities, and investors can generally only look to the receivables for repayment.

For more information, see Practice Note: Introductory guide to securitisation

What is a true sale?

There is no statutory or judicial definition of 'true sale' but the

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Key definition:
Securitisation definition
What does Securitisation mean?

The creation of securities from non-tradable assets.

Read more readmore

Popular documents

Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companiesWhy does it matter?A company that is a member of a group and has incurred any of the types of losses available for surrender by way of group relief may, without any further rules, have more than one way in which to use the loss. There are a

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid

Strike out—making an application to strike out a statement of case

Strike out—making an application to strike out a statement of caseA strike out order can be made either following an application by the parties or on the court's own initiative. This Practice Note deals with the scenario of the order being made following a party's application.Making an application