Intro for rmbs issuance eng

INTRODUCTION RMBS ISSUANCE

Sugarnyam.P, Partner of MDS and Khanlex LLP

2

GENERAL STRUCTURE

MONGOLBANK BANKS(Originator)

BORROWERS

SPC(Issuer)

INVESTOR

Loan Mortgage

loan

Mortgage pool

RMBS

MIK(Founder)

Establish

3

PARTIES

MONGOLBANK Originator (BANKS)

BORROWER (criteria)

SPC

INVESTOR

Mortgage Loan

Mortgage pool

RMBS

FRC

STATE REGISTRATION

Registration, license

Special registration

TRUSTEEAgreement

SPC BOARDManagement, supervision

AUDITAgreement

CLEARING HOUSE

RMBS registration

LAWYERAgreement

SERVICER

Servicing Agreement

Loan

4

LICENSE AND REGISTRATION

MONGOLBANK BANKS

SPC

INVESTOR

Structure, criteria

Mortgage pool

RMBS

FRC

STATE REGISTRATION

Registration, license

Special registration

CLEARING HOUSE

RMBS registration

BORROWER

SPC BOARD

Pledge registration

Satisfy FRC

criteria

Special permissio

n

TRUSTEE

AUDIT

FRC registration

LAWYERFRC registration

5

ESTABLISHMENT AND REGISTRATION OF SPC

MIK (Founder)

SPC(Issuer)

1 SPC for each

issuance

FRC

STATE REGISTRATION

Satisfied criteria

Law requirements

SPC BOARDSelected

Agreement

TRUSTEE

AUDIT

Agreement

LAWYERAgreement

INVESTOR

Agreement

6

SPC OPERATION

SERVICER

SPC

INVESTOR

Servicing

Report

FRC

STATE REGISTRATIO

N

Report

Special registration

ҮЦТТ

RMBS payment

RMBS payment

BORROWER

SPC BOARD

TRUSTEE

AUDIT

LAWYER

Asset manageme

nt

Supervision

AUDIT

Legal opinion

Mortgage repayme

nt

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Mortgage pool ХӨРӨНГӨ ХУДАЛДАХ ҮЙЛ АЖИЛЛАГАА

SPC BOARD

SPC

BANK 1

BANK 2

ХУДАЛДАХ

ХУДАЛДАН АВАХ ГЭЭЭ

BANK 3

RMBS 1

RMBS 2

ҮНЭТ ЦААСНЫ

ТАНИЛЦУУЛГА, БУСАД

БИЧИГ БАРИМТ

RMBS 3

88

Үнэт цаасжуулалтын үйл ажиллагаанд ашиглагдах гэрээний тухай

Transaction documents

1. Sale and Purchase Agreement of Mortgages

2. Servicing Agreement

3. Transaction Administrator Agreement

Issuance documents

1. Trust deed

2. Subscription Agreement

3. RMBS Clearing and Saving Agreement

4. Security documents

a) Charge

b) Charge over Collections Account

c) Assignment of the Contractual Rights

5. Trust Account Servicing Agreement

6. Collection Account Servicing Agreement

If needed:

7. RMBS Transfer Agreemnt

9

BANKS(Originator)

“SPC”(Issuer)

MIK(Transaction

Administrator)

Sale and Purchase

Agreement of

Mortgages

Transaction Administra

tor Agreement

Transaction documents

Servicing Agreemen

t

After FRC approval

After getting Special permission from FRC

10

SPC(Issuer)

MIK(Transaction

Administrator)

Sale and Purchase

Agreement of

Mortgages

Transaction Administrator Agreement

Transaction documents(Sale and Purchase Agreement of

Mortgages)

BANK 1(Originator)

BANKS 3-9(Originator)

BANK 2(Originator)

Aggregate PortfolioEstablishes after Mortgages purchase from all originators

11

BANKS(RMBS Holder)

SPC(Issuer)

MIK(TRUSTEE)

Subscription Agreement

Trust Deed

CLEARING HOUSE

(Payment Agent)

ХББХТТГГ

Issuance documents

After FRC approval

After getting Special permission from FRC

After getting Special permission from FRC

After FRC approval

MONGOLBANK(RMBS Holder)

Subscription Agreement

MIK(Security Agent)

After FRC approval

12

“SPC”(Issuer)

MIK(TRUSTEE)

Issuance documents(Trust Deed)

Aggregate PortfolioEstablishes after Mortgages purchase from all originators

Trust Deed

BANKS(RMBS Holder)

Subscription Agreement

MONGOLBANK(RMBS Holder)

Subscription Agreement

MIK(Security Agent)

Security Document

13

BANKS(RMBS Holder)

SPC(Issuer)

MIK(TRUSTEE)

Subscription Agreement

Trust Deed

CLEARING HOUSE

(Payment Agent)

ХББХТТГГ

Issuance documents

After FRC approval

After getting Special permission from FRC

After getting Special permission from FRC

After FRC approval

MONGOLBANK(RMBS Holder)

Subscription Agreement

MIK(Security Agent)

After FRC approval

14

SPC(Issuer)

Issuance documents(Subscription Agreement)

BANKS(RMBS Holder)

Subscription Agreement

MONGOLBANK(RMBS Holder)

Subscription Agreement

MIK(Security Agent)

15

SPC(Issuer)

Charge Charge over Collections Account Assignment of Contractual Rights

Security Document

MIK(Security Agent)

THANK YOU FOR YOUR ATTENTION