Is a compartment liable for the liabilities of another compartment?

Due to the nature of a compartment there is no recourse against the assets allocated to other compartments in the event that the claims under the securities held by the investors of a particular compartment are not fully satisfied by the assets of that compartment.

Each of the compartments can be liquidated separately without any negative impact on the vehicle’s remaining compartments, i.e. without triggering the liquidation of other compartments. If the securitisation vehicle is a corporate entity, all compartments can be liquidated without necessarily liquidating the whole vehicle.