Securities And Exchange Board Of India (Issue And Listing Of Securitised Debt Instruments And Security Receipts) Regulations, 2008 Chapter III CONSTITUTION AND MANAGEMENT OF SPECIAL PURPOSE DISTINCT ENTITIES AND INCIDENTAL MATTERS
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Assignment of receivables: ensure enforceable interest, free transfer, arms' length pricing and true-sale insolvency remoteness. Assignment requires that receivables generate identifiable cash flows, that the originator hold a valid enforceable interest, that transfers be free of encumbrances and not trigger defaults, that necessary consents be obtained, that set-off be prevented, that pricing be arms' length, and that representations and warranties be honoured; the special purpose entity must hold legally realizable assignments, avoid acquisitions from related parties under common group or control with the trustee, and structure transactions as a genuine true sale to maintain insolvency remoteness.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Assignment of receivables: ensure enforceable interest, free transfer, arms' length pricing and true-sale insolvency remoteness.
Assignment requires that receivables generate identifiable cash flows, that the originator hold a valid enforceable interest, that transfers be free of encumbrances and not trigger defaults, that necessary consents be obtained, that set-off be prevented, that pricing be arms' length, and that representations and warranties be honoured; the special purpose entity must hold legally realizable assignments, avoid acquisitions from related parties under common group or control with the trustee, and structure transactions as a genuine true sale to maintain insolvency remoteness.
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