(a)

the SSPE or the institution calculating KIRB has effective ownership and control of all cash remittances from the securitised exposures;

(b)

the ownership of the securitised exposures and cash receipts is protected against bankruptcy stays or legal challenges that could materially impair the ability of the SSPE or the institution calculating KIRB to liquidate or assign the securitised exposures or retain control over cash receipts.

(a)

assess the correlation between the quality of the qualifying securitised exposures, including the potential of recovery in the case of default, and the financial condition of the originator, seller, and servicer;

(b)

have in place internal policies and procedures that provide adequate safeguards to protect against any contingencies, including the assignment of an internal risk rating to the originator, seller, and servicer;

(c)

have clear and effective policies and procedures for determining the eligibility of an originator, a seller and a servicer;

(d)

conduct periodic reviews of originators, sellers and servicers to verify whether the reports of those originators, sellers or servicers are accurate, to detect fraud or operational weaknesses and to verify the quality of the originator’s or seller’s credit policies and servicer’s collection policies and procedures, and shall document the findings of those periodic reviews;

(e)

assess:

(f)

have in place effective policies and procedures for monitoring, on an aggregate basis, single-obligor concentrations both within and across pools of qualifying securitised exposures;

(g)

ensure that it receives from the originator, seller, or servicer timely and sufficiently detailed reports of securitised exposures’ ageings and dilutions;

(h)

have in place systems and procedures for detecting at an early stage deteriorations in the originator’s or seller’s financial condition and the qualifying securitised exposures’ quality and for addressing emerging problems pro-actively.

(a)

to assess the exposures’ compliance with the securitisation’s eligibility criteria and with the advancing policies governing such qualifying securitised exposures;

(b)

to monitor and confirm the originator’s or seller’s terms of sale and dilution.

(a)

written internal policies specifying all material elements of the securitisation, including the advancing rates, eligible collateral, the required documentation, concentration limits, and the way cash receipts are to be handled;

(b)

effective policies and procedures to ensure that the material elements referred to in point (a) take account of all relevant and material factors, including the originator’s, seller’s and servicer’s financial condition, risk concentrations and trends in the quality of the qualifying securitised exposures and the originator’s customer base;

(c)

internal systems to ensure that funds are advanced only against specified supporting collateral and documentation.

(a)

regular audits of all critical phases of the securitisation;

(b)

verification of the separation of duties for the assessments of the originator, seller, and servicer, referred to in paragraph 4, on the one hand, and of the obligor, on the other hand;

(c)

verification of the separation of the respective duties for the assessments of the originator, seller and servicer, referred to in paragraph 4 from the field audit of the originator, seller and servicer;

(d)

evaluations of the institution’s back-office operations, including their qualifications, experience, staffing levels and supporting IT systems.