TOOL K1
| Attribute | Key Considerations | Answer |
| Marketability | – Can it be readily sold or realised in the stress scenario if required? – Does it have a simple title which the bank can easily pass to a purchaser on realisation? (to allow immediate recovery of the loan) | |
| – Can its value be easily assessed? Is there an independent reference source? – Is that value adequate? (to allow an ample margin of protection to be taken) | ||
| – Will it retain its value? – What costs could be incurred to protect value? – If stability is not one hundred per cent certain, is there sufficient margin for depreciation? | ||
| Transferability | – Can it be charged to the bank easily and reasonably cheaply? – Does the bank get a safe, unquestionable title? – Does the bank incur any lender liability to a third party arising out of its title to the security? (e.g. tax, environmental claims, litigation) |
