CA-5.8.125
The collateral arrangements must be properly documented, with a clear and robust procedure for the timely collection of collateral proceeds. Banks' procedures should ensure that any legal conditions required for declaring the default of the customer and timely collection of collateral are observed. In the event of the obligor's financial distress or default, the bank must have legal authority to sell or assign the receivables to other parties without consent of the receivables' obligors.
Apr 08