What is a compartment?

The european primary placement facility (eppf) S.A. (“eppf”) is incorporated as a société anonyme under the laws of Luxembourg which is similar to a public limited liability company.

The Luxembourg securitisation law of 2004, as amended, (the “Securitisation Law”) provides for the creation of segregated asset pools which are quasi “ring-fenced” in a compartment but held by one and the same legal entity, in our case being eppf.

In the case of eppf, each compartment corresponds to a distinct portion of assets financed by distinct securities. Each compartment forms an independent, separate and distinct part of the securitisation entity's estate and its assets are segregated from the other assets held by all other compartments of eppf. In other words, each compartment holds a pool of assets and liabilities to be managed separately from another compartment, so that each asset pool (i.e. compartment) is independent from the risks and liabilities of other compartments. Each compartment can be liquidated separately.

Compartment segregation means that the assets and liabilities of the vehicle can be split into different compartments, each of which is treated as if it were a separate legal entity executing distinct transactions. The rights of investors and creditors are limited to the risks of a certain compartment’s assets. The characteristics and rules applicable to a compartment may be governed by separate terms and conditions.