Legal Certainty
CA-4.7.6
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-4.7.7
All documentation used in collateralised transactions and for documenting on- balance sheet netting and guarantees 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
