In practice, obtaining a CMBS transaction is generally not a problem, as most transactions are only subject to a small number of borrowers, depending on the number of mortgages to be securitized. However, this is not the case when portfolios of thousands of contracts are formed. B (e.g., car rental and credit card contracts). Obtaining the consent of third parties is not only costly and painful, but in most cases impossible. It will be difficult to complete the securitization transaction, as it will be impossible to determine with certainty how many agreements can be transferred at each stage. Structural solutions must be found to solve the problem. Effective Date of Asset Transfer The transfer of all assets that are declared in the portfolio as part of the transfer contract becomes legally valid after the transfer is registered. No further action is required. First, if the agreements stipulate that they can only be amended in writing, approval of the transfer should be obtained in writing, since a change in the contracting parties is considered an amendment. Swiss contract law firmly states that a waiver of the law should not take a particular form, even if formal requirements must be met when entering into an agreement or complying with a corresponding provision. On this basis, one might assume that a third party has waived the amendment clause that requires written consent. However, the uncertainties associated with this interpretation may have negative effects on securitization.
Tva and welfare taxes. VAT is levied on the transfer of most of the assets used in a business, provided that the seller is a third-party consent subject is not always a problem. For example, in the case of a commercial mortgage-backed securitization (CMBS), the borrower must obtain the borrower`s agreement under the mortgage before the mortgage is transferred from the initiator to the securitization vehicle. There are several reasons to get the borrower`s approval. While it is generally not necessary to approve the transfer of the loan itself, provided the mortgage is properly structured and the language of transmission is correctly formulated, a borrower may be contacted to confirm that it complies with the tax representations and guarantees granted under the mortgage credit agreement, even after the securitization has closed. In addition, there may be important contracts that are not transferable or some licenses and authorizations may be clear to the seller. Sometimes a buyer wants to get as many customer relationships as possible, so he can choose to buy shares as opposed to assets.