Council for Medical Schemes Levies Act, 2000
R 385
second-loss credit-enhancement facility
means a credit-enhancement facility that represents the second and further levels of credit enhancement in a traditional or synthetic securitisation scheme: Provided that-
| a) | such facility benefits from a substantial first-loss credit-enhancement facility, that is, when the first-loss credit-enhancement facility covers some multiple, as opposed to a fraction, of historical losses or expected losses estimated by way of simulation or other technique; and |
| b) | such facility may be drawn only after the first-loss credit-enhancement facility has been exhausted, |
and when there has not been compliance with the above conditions, the facility concerned shall for purposes of calculating a bank's prescribed capital requirement be regarded as a first-loss credit-enhancement facility in terms of this Schedule;
