Eligibility Criteria must be approved by veANZ holders and all Eligible Transactions must adhere to the Eligibility Criteria. If an Eligible Transaction meets the Eligibility Criteria as verified by an independent 3rd party verification agent, the Eligible Transaction's borrower or investor must begin to pay Reserve Payments.
If the Eligible Transaction breaches Eligibility Criteria once active, the Reserve Payment due in arrears at the time of breach will be the last Reserve Payment until the breach is cured. Once a breach in Eligibility Criteria is cured, Reserve Payments will begin to accrue as of the last expected Reserve Payment had no breach occurred.
- 2.The debt instrument purchased by investors and/or the underlying agreement affecting a true sale of the distinct asset pool in favor of the entity selling the debt instrument purchased by investors must:
- 1.Require surveillance reporting at least weekly that is readily available to investors
- 2.Have defined delinquency criteria to measure the performance of the distinct asset pool
- 5.Require quarterly compliance attestations and ensure they are completed no greater than 45 days past due
- 6.Do not permit a grace period for payments in excess of five (5) Business Days
- 3.Each Originator associated with the debt instrument purchased by investors must:
- 1.Have at least 2 years of origination history
- 2.Is required to provide sufficient data to generate surveillance reports
- 3.Is in good standing and has never defaulted historically with the Eligible Sponsor
- 4.Have not missed any payments outside of the 5 business day grace period in the last 6 months with the Eligible Sponsor