| CTBC Bank Co., Ltd. is the leader of trust service for institutions in Taiwan and offers various market-leading securitization trust services to achieve the multiple purposes such as disposal of assets, improving the efficiency of using funds, and creating financing for assets. These services integrate your finance and risk planning with the securitization trust services perfectly! Our experience in securitization planning provides securitization trust service perfectly through a professional and precise planning process, a securitization operation platform, its R&D capability, and its familiarity with laws and regulations. CTBC offers a “customized” securitization trust service and the best decision-making solution, comprehensive and precise operation process planning, and legal analysis. With these advantages, CTBC can satisfy your need and provide a guarantee for your customized securitization trust needs. |
| What is a “Securization Trustee”? |
| 1. | The trustee defined in the Financial Assets Securitization Act: The trustee is an institution that holds financial assets in a trust, and issues beneficiary securities or asset-based securities based on such assets according to regulations of Financial Assets Securitization Act. In Taiwan, most of such organizations are trust service providers who are also banks. |
| 2. | The trustee defined in Clauses of the Real Estate Securitization Act: The trustee is an institution that incorporates real estate investment trusts or real estate asset trust according to the regulations of Real Estate Securitization Act, issues beneficiary securities to unspecified parties or delivers beneficiary securities in private placement to specified parties in order to receive funds and manages and disposes of real estate according to the mandate, or to issue securities to the public or in private placement. |
| The functions of “securitization trust service” |
| 1. | Containing the bankruptcy risk of the originator and the trustee Trust assets have a high degree of immunity. In principle, no one could subject trust assets to compulsory enforcement. Securitization trust service can ensure the right of investors and ensure that the structure of securitization is feasible. |
| 2. | Controlling trust assets; managing and disposing of trust assets Securitization trustees hold trust assets on behalf of investors and can manage and dispose of trust assets according to the trust mandate, and distribute income from the trust to beneficiaries of the securities. |
| 3. | Issuing beneficiary securities and acquiring funds The trustee of securitization may offer beneficiary securities of various categories or durations. Beneficiary securities can be offered publicly or in private placement to facilitate the acquisition of funds for the clients. |
| 4. | Simplifying legal relationships and services The securitization trustee should apply for approval from the regulator or register with regulators. The holders of beneficiary securities assume the rights and obligations of the grantor according to the number of units held stated in the beneficiary securities. |
| Operation process of “Professional Securization Trustee” |
| 1. | Planning stage The securitization trustee negotiates the structure and details of securitization with originators and professional organizations (including legal counsel, public accountants, project lead consultants, and credit rating agencies) on behalf of investors. |
| 2. | Application stage The securitization trustee proposes a securitization plan and applies for approval from regulators. |
| 3. | Issuing stage After regulators approve the securitization plan, the securitization trustee can issue trust beneficiary certificates or asset-backed securities. |
| 4. | Return of principal and interest payment stage The securitization trustee returns principal and pays interest to investors according to the securitization plan. |
| 5. | Contract termination stage The securitization trustee executes trust property liquidation according to the securitization plan. |
