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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]
PIB 4 Credit Risk
PIB 4 Part 3 — CRDOM
PIB 4.14 Securitisation
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices
Financial Markets Tribunal
Archive

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  Versions
(1 version)
 
Dec 9 2012 onwards

PIB 4.14.58



Whole Section PDF

The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

(1) An Early AmortisationG provision that does not satisfy the conditions for a Controlled Early AmortisationG provision will be treated as a non-Controlled Early AmortisationG provision.
(2) For the purpose of (1), the conditions for a Controlled Early AmortisationG provision are as follows:
(a) the Authorised FirmG must have an appropriate capital/liquidity plan in place to ensure that it has sufficient capital and liquidity available in the event of an Early AmortisationG ;
(b) throughout the duration of the transaction, including the amortisation period, there is the same pro rata sharing of interest, principal, expenses, losses and recoveries based on the firm's and investors' relative shares of the receivables outstanding at the beginning of each month;
(c) the firm must set a period for amortisation that would be sufficient for at least 90% of the total debt outstanding at the beginning of the Early AmortisationG period to have been repaid or recognised as in default; and
(d) the pace of repayment should not be any more rapid than would be allowed by straight-line amortisation over the period set out in (c).
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]