S.L. 386.16 Art. 4Securitisation cell companies.

(1) A securitisation cell company shall be established solely for the purpose of either:

(a) entering into securitisation transactions, other than the assumption of risks as specified in paragraph (b), in accordance with Part II of these regulations; or

(b) assuming risks as a reinsurance special purpose vehicle from a ceding undertaking through reinsurance contracts, or assuming insurance risks through similar arrangements, in accordance with Part III of these regulations.

(2) A securitisation cell company may not carry on any trade or business, other than that relating or ancillary to a transaction as referred to in sub-regulation (1).

(3) Notwithstanding that a securitisation cell company may have created one or more cells:

(a) a securitisation cell company is a single legal person; and

(b) the creation by a securitisation cell company of a cell does not create, in respect of that cell, a legal person separate from the securitisation cell company.

(4) The assets and liabilities of each cell comprised in a securitisation cell company shall, for all intents and purposes of law, be treated as a patrimony separate from the assets and liabilities of each other cell of the securitisation cell company, and from the assets and liabilities of the securitisation cell company itself.