SECN 5.1 Interpretation and application
Application
1This chapter applies to originators, sponsors and original lenders, which are not PRA-authorised persons, and which are established in the United Kingdom.
Interpretation
1 In this chapter, the following definitions apply:
- (1)
1‘contingent form of retention’ means retention of a material net economic interest through the use of guarantees, letters of credit and other similar forms of credit support ensuring an immediate enforcement of the retention;
- (2)
‘synthetic form of retention’ means retention of a material net economic interest through the use of derivative instruments; and
- (3)
‘UK Solvency II Firm’ has the same definition as in Article 2.1 of Chapter 2, Solvency II Firms: Insurance General Application of the PRA Rulebook.