Art. 2 Interpretation. — SECURITISATION ACT

In this Act, unless the context otherwise requires

"the competent authority" means the Malta Financial Services

Authority established by the Malta Financial Services Authority Act;

"financial instruments" has the same meaning assigned to it by

the Financial Markets Act;

"investment company" means an investment company with fixed

share capital or an investment company with variable share capital,

which respective terms shall have the same meaning respectively

assigned to them in the Companies Act;

"the Minister"means the Minister responsible for the regulation of

financial services;

"originator" or "assignor" means a person, including Government

or any Local Council, who

(a) transfers by any means securitisation assets to a

securitisation vehicle, or

(b) enters into any arrangement with a securitisation

vehicle for the purpose of transferring any risk in

whole or in part to the securitisation vehicle, or

(c) obtains a loan or other facility from a securitisation

vehicle, such loan or facility being secured directly or

indirectly over securitisation assets, and the term

originator or assignor shall also include all its

subsidiary undertakings or affiliates;

"receivable" means a right to receive payment of a monetary sum

whatsoever, including a right to receive payment of future

undetermined sums from debtors who are not yet determined;

"risks" means any risks whatsoever, including those arising from

any rights relating to assets, whether movable or immovable,

tangible or intangible, future or existing, risks resulting from any

obligations or activities of third parties and risks arising from any

event or circumstance;

"securities" has the same meaning assigned to it by the Financial

Markets Act;

SECURITISATION

"securitisation" means a transaction or an arrangement whereby a

securitisation vehicle, directly or indirectly

(a) acquires securitisation assets from an originator by any

means, or

(b) assumes any risks from an originator by any means, or

(c) grants secured loan or other secured facility or

facilities to an originator,

and finances any or all of the above, directly or indirectly, in whole

or in part, through the issue of financial instruments, and includes

any preparatory acts carried out in connection with the above;

"securitisation asset" means any asset, whether existing or

future, whether movable or immovable, and whether tangible or

intangible, and where the context so allows, includes risks;

"securitisation creditors" means all creditors or classes of

creditors of a securitisation vehicle, in relation to a securitisation

transaction, whose credit is secured by any means whatsoever,

whether by security collateral or title transfer collateral, including,

without prejudice to the generality of the foregoing, the originator,

any person holding one or more financial instruments issued by the

securitisation vehicle, other than a shareholder of the securitisation

vehicle, if applicable, any lender, hedge counterparty, liquidity

provider and credit support provider of the securitisation vehicle

and any trustee acting on any of their behalf;

"securitisation vehicle" means a vehicle as referred to in article

3;

"security collateral" means collateral provided by a collateral

provider by way of security in favour of, or to, a collateral taker,

and where the full ownership of the collateral remains with the

collateral provider, when the security right is established;

"title transfer collateral" means collateral provided by a

collateral provider, including by repurchase agreements and

assignments by way of security, whereby the collateral provider

transfers full ownership of the collateral to a collateral taker for the

purpose of securing or otherwise covering the performance of any

obligation;

"underlying debtor" means, where applicable, a person whose

obligation towards an originator has been the object of a

securitisation transaction;

"writing" shall have the same meaning assigned to it in the

Interpretation Act and shall include facsimile transmissions and

electronic mail communications.

PART II

SECURITISATION VEHICLES

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