The Capital Markets (Asset-Backed Securities) Regulations

35. Eligible assets

Edition: 2022-12-31 · In force

35. Eligible assets

The assets to be securitized for purposes of issuing asset-backed securities shall be—

(a)capable of generating a true and identifiable revenue stream that is projected to be sufficient to service the return of and return on investment as well as allowable expenses for the life of the asset-backed securities;

(b)free from any encumbrances or impediments to their free transfer and their transfer shall not constitute an event of default or acceleration trigger under any security agreement relating to the assets of the originator; and

(c)transferred at fair value.

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Source: Kenya Law