(5) Monetary default means a default in the payment of principal or interest when due following the expiration of any cure period.(6) Obligation means a debt or equity (or mixed) beneficial interest or security that is primarily serviced by the cash flows of one or more financial assets or financial asset pools, either fixed or revolving, that by their terms convert into cash within a finite time period, or upon the disposition of the underlying financial assets, and by any rights or other assets designed to assure the servicing or timely distributions of proceeds to the security holders issued by an issuing entity."Without recourse" means that the participation is not subject to any agreement that requires the lead to repurchase the participant's interest or to otherwise compensate the participant upon the borrower's default on the underlying obligation.(8) Securitization means the issuance by an issuing entity of obligations for which the investors are relying on the cash flow or market value characteristics and the credit quality of transferred financial assets (together with any external credit support permitted by this section) to repay the obligations.Notwithstanding the foregoing, the most senior credit tranche may include time-based sequential pay or planned amortization and companion sub-tranches; and (B) The credit quality of the obligations cannot be enhanced at the issuing entity or pool level through external credit support or guarantees.However, the credit quality of the obligations may be enhanced by credit support or guarantees provided by Specified GSEs and the temporary payment of principal and/or interest may be supported by liquidity facilities, including facilities designed to permit the temporary payment of interest following appointment of the FDIC as conservator or receiver.(12) Transfer means: (i) The conveyance of a financial asset or financial assets to an issuing entity or (ii) The creation of a security interest in such asset or assets for the benefit of the issuing entity. This section shall apply to securitizations that meet the following criteria. The documents creating the securitization must define the payment structure and capital structure of the transaction.
1823(c)(4)(G)), the FDIC shall not take any action, directly or indirectly, under sections 13(c), 13(d), 13(f), 13(h) or 13(k) of the FDI Act (12 U. (b) Subject to the requirement of section 13(c)(4)(A) of the FDI Act (12 U. § 360.2 Federal Home Loan banks as secured creditors.
The securitization may not be an unfunded securitization or a synthetic transaction.
(ii) Requirements applicable only to securitizations in which the financial assets include any residential mortgage loans: (A) The capital structure of the securitization shall be limited to no more than six credit tranches and cannot include "sub-tranches," grantor trusts or other structures.
(10) Specified GSE means each of the following: (i) The Federal National Mortgage Association and any affiliate thereof; (ii) Federal Home Loan Mortgage Corporation and any affiliate thereof; (iii) The Government National Mortgage Association; and (iv) Any federal or state sponsored mortgage finance agency.
(11) Sponsor means a person or entity that organizes and initiates a securitization by transferring financial assets, either directly or indirectly, including through an affiliate, to an issuing entity, whether or not such person owns an interest in the issuing entity or owns any of the obligations issued by the issuing entity.