Konstruktion einer Anleihe mit hypothekarischer Besicherung

This work describes the legal structuring of a mortgage covered bond in accordance withthe regulations of paragraphs 791 cont. and 1184 cont. German Civil Code (BürgerlichesGesetzbuch). The work shows how to structure the share of common rights of the bondholders according to the regulations of the German Statue Governing Common Rights ofOwners of Debt Securities (Schuldverschreibungsgesetz). Furthermore, the work describeshow the bond creditors shall have preferences of the mortgages in case of default of thebond and how mortgages shall be limited through lending limit in relation to the marketvalue decline of the real estate building. The market value determination will follow theregulations of paragraph 192 cont. German Building Act (Baugesetzbuch) in connection tothe German Value Determining Regulations (Wertermittlungsverordnung). The legal aspectsare embodied and tightened in the bond terms which are included in the work. Thepaper also points out which minimum information of the mortgage covered bond in a prospectusis required. The Federal Financial Supervisory Authority (Bundesaufsichtsamt fürFinanzdienstleistungen) scrutinises the prospectus for admission to public offering accordingto the regulations of the German securities prospectus act (Wertpapierprospektgesetz).Finally, the usability of a recovery rating which measures the probability of default of themortgages is discussed in the paper.