Cap. 484 Art. 16Securitisation creditors.

(1) Unless otherwise specifically determined in writing in the terms of issue of securities:

(a) holders of securities issued by a securitisation vehicle shall have a privilege over the securitisation assets and such privilege shall rank prior to all other claims at law, except for other securitisation creditors who enjoy a prior ranking granted to them with the consent or knowledge of the said holders; and

(b) the said privilege extends to the proceeds derived from the securitisation assets, to any funds received in payment and to the assets, if any, in which they are invested.

(3) The said privilege arises by operation of law and does not need to be registered in any register.

(4) The conditions of issuance of any financial instruments by the securitisation vehicle shall be binding upon the securitisation vehicle, the securitisation creditors or other persons who have given their consent thereto, including in the case when the securitisation vehicle is placed under any dissolution and winding-up proceedings, company recovery procedure, company reconstruction or any proceedings affecting creditors’ rights generally.

(5) It shall not be lawful for any person, other than a securitisation creditor, to demand the issuance or enforcement of any precautionary act or warrant against the securitisation vehicle, except when the court is satisfied that there has been fraud on the part of the securitisation vehicle.