Article 10
Information on funded credit protection
1. When the loan is guaranteed by collateral, crowdfunding service providers shall ensure that valuation of the collateral takes into account all of the following information:
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(a) |
information about the maturity of the collateral; |
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(b) |
for financial collaterals, the latest available price for the collateral and the average price over the previous 12 months on a liquid and traded market; |
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(c) |
for physical collaterals, the latest available market value; |
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(d) |
information about the existence of a market to liquidate the collateral readily; |
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(e) |
a measure of the volatility of the value of the collateral. |
2. In the absence of a market to establish objectively a price or market value for the collateral, crowdfunding service providers shall consider all of the following information:
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(a) |
the assumptions that have been used to assess the value of the collateral; |
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(b) |
the frequency with which the value can readily be obtained, including a professional appraisal or valuation. |
3. For the purposes of paragraphs 1 and 2, crowdfunding service providers shall have in place policies and procedures to monitor the value of collateral.