Skip to main content
European Insurance and Occupational Pensions Authority

Rights of the providers of debt or financing mechanisms

Path
TITLE I > CHAPTER 15 > SECTION 2

Article number:  321

The contractual arrangements relating to the transfer of risk from an insurance or reinsurance undertaking to a special purpose vehicle and from the special purpose vehicle to the providers of debt or finance shall ensure all of the following:

(a) the claims of the providers of debt or financing mechanisms are at all times subordinated to the reinsurance obligations of the special purpose vehicle to the insurance or reinsurance undertaking;

(b) no payments are made to the providers of debt or financing, if following those payments the special purpose vehicle would no longer be fully funded;

(c) the providers of debt or finance to the special purpose vehicle have no rights of recourse to the assets of the insurance or reinsurance undertaking;

(d) the providers of debt or finance to the special purpose vehicle have no rights to apply for the winding-up of the special purpose vehicle.

Metadata

RULEBOOK TOPIC:  SECTION 2 - Mandatory contract conditions

RULEBOOK CATEGORY:  DELEGATED REGULATION (EU) 2015/35

Last update on:  03 May 2021