CA-5.8.120
Past version: Effective from 01 Apr 2008 to 31 Mar 2011
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Additional collateral management requirements are as follows:
(a) The types of CRE and RRE collateral accepted by the bank and lending policies (advance rates) when this type of collateral is taken must be clearly documented.
(b) The bank must take steps to ensure that the property taken as collateral is adequately insured against damage or deterioration.
(c) The bank must monitor on an ongoing basis the extent of any permissible prior claims (e.g. tax) on the property.
(d) The bank must appropriately monitor the risk of environmental liability arising in respect of the collateral, such as the presence of toxic material on a property.
Apr 08