Legal Certainty
CA-4.1.8
In order for banks to obtain capital relief for any use of CRM techniques, the following minimum standards for legal documentation must be met.
Apr 08CA-4.1.9
All documentation used in collateralised transactions and for documenting on- balance sheet netting, guarantees and credit derivatives must be binding on all parties and legally enforceable in all relevant jurisdictions. Banks must have conducted sufficient legal review to verify this and have a well founded legal basis to reach this conclusion, and undertake such further review as necessary to ensure continuing enforceability.
Apr 08
