Traduction de «pledge as collateral security » (Anglais → Français) :

The competent authorities may recognise loans secured by commercial real estate as eligible where the Loan-to-value ratio of 60 % is exceeded up to a maximum level of 70 % if the value of the total assets pledged as collateral for the covered bonds exceed the nominal amount outstanding on the covered bond by at least 10 %, and the bondholders’ claim meets the legal certainty requirements set out in Annex VIII. The bondholders’ claim shall take priority over all other claims on the collateral ...[+++].

‘collateral’ means the forms of collateral security referred to in Article 2(m) of Directive 98/26/EC of the European Parliament and of the Council , including any allowances accepted as security by the clearing system or settlement system.

Currently only a few markets use collateralisation requirements, but this has created a lot of concern in the insurance and reinsurance industries (In more detailed terms, such systems require technical provisions before reinsurance to be covered by officially authorised assets. The portion of gross technical provisions relating to the business ceded to a given reinsurer can be represented by a net claim on this reinsurer only up to the amount pledged as collateral security by the reinsurer off the cedant's balance sheet, or, in certain cases, cov ...[+++]ered by a security in the form of a letter of credit issued by a banking institution.)

Collateral is usually provided in the form of a cash deposit or the transfer or pledge of a security.

In general terms, " collateral" means an asset, whether a cash deposit or the transfer or pledge of a security provided to a creditor or, in this case, to securities and derivatives clearing houses.

The Directive also includes rules for payment systems which are not based on netting but on gross settlement systems (where each payment order is settled individually on a real time basis as it arises during the day): The proposed Directive would also exempt payment systems from national rules giving retroactive effect to the insolvency of a participant in a payment system, such as the zero-hour rule. Such retroactive effect allows the liquidator of an insolvent institution to challenge payment orders which have already been introduced into the payment system, thus leading to the unwinding of the settlement operation. This unwinding is h ...[+++]ighly disruptive and can lead to systemic risk. The same is true for revocation of payment orders. Revocation of a large payment order in a payment system during the settlement process, could lead to systemic risk. The Directive would therefore bar revocation of payment orders after the moment contractually fixed by the payment system participants. The insolvency of a participant in a payment system, insofar as it concerned its dealings with the payment system, would be governed by the insolvency law of the country where the payment system was located, according to the proposed Directive. This would avoid conflicts of law and the ensuing legal uncertainty and thus facilitate cross-border participation in payment systems. Collateral security is pledged by the participants in a payment system in order to secure its exposures against the other participants. When collateral security is provided in a cross-border arrangement, its realisation in case of default of the pledging participant can be hindered by conflicts of law which may either weaken the collateral security or even render it unenforceable. In order to ensure collateral security can be realised immediately and in priority over all other creditors (so as not to jeopardise the liquidity of the other participants in the system, i.e. to avoid systemic risk) in the case of a defaul ...