Article 4
Retention equivalent to not less than 5 % of the nominal value of each of the tranches sold or transferred to investors
The retention referred to in Article 6(3), point (a), of Regulation (EU) 2017/2402 (vertical slice) shall be fulfilled by any of the following methods:
(a) |
direct retention of not less than 5 % of the nominal value of each of the tranches sold or transferred to investors; |
(b) |
the retention of an exposure which exposes its holder to the credit risk of each issued tranche of a securitisation transaction on a pro-rata basis of not less than 5 % of the total nominal value of each of the issued tranches; |
(c) |
the retention of not less than 5 % of the nominal value of each of the securitised exposures, provided that the retained credit risk ranks pari passu with or is subordinated to the credit risk securitised in relation to the same exposures; |
(d) |
the provision, in the context of an ABCP programme, of a liquidity facility, provided that all of the following conditions are met:
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