Article 246

Where the securitisation includes revolving exposures and early amortisation provisions or similar provisions, significant credit risk shall only be considered transferred by the originator institution where the requirements laid down in Articles 244 and 245 are met and the early amortisation provision, once triggered, does not:

(a) subordinate the institution’s senior or pari passu claim on the underlying exposures to the other investors’ claims;

(b) subordinate further the institution’s claim on the underlying exposures relative to other parties’ claims; or

(c) otherwise increase the institution’s exposure to losses associated with the underlying revolving exposures.