Insolvency Considerations Pertaining to Trustee-Issuer and Mortgage Originator

  • Pelma RajapakseEmail author
  • Shanuka Senarath


This chapter is committed on discussing a number of bankruptcy concerns affecting the smooth functioning of a residential mortgage-backed securitisation programme. The initial focus of the chapter is on identifying the consequences of the originator’s bankruptcy on a residential mortgage-backed securitisation scheme in Australia. Then, the chapter moves on to investigate threats posed by the trustee-issuer’s insolvency. This discussion is two-fold. On the one hand, the discussion emphasises the trustee-issuer’s insolvency as the trustee and on the other hand the insolvency of the special purpose vehicle (SPV) in the capacity of the issuer. Finally, the chapter engages in a discussion on a number of means adopted by Australian securitisation programmes with the idea of minimising negatives on a securitisation programme imposed by the bankruptcy of its stakeholders.


Bankruptcy Trustee-issuer’s insolvency Originator’s bankruptcy Set-off Trustee Issuer 


Books and Book Chapters

  1. Boyle, A. J., ‘The Validity of Automatic Crystallisation Clauses’ (1979) Journal of Business Law 231.Google Scholar
  2. Ford, H. A. J., Austin, R. P. and Ramsay, I. M., Ford’s Principles of Corporations Law, 10th edition, Chatswood: Butterworths, 2001.Google Scholar
  3. Glennie, D. and Bouter, E., Securitisation, London: Kluwer Law International, 1998.Google Scholar
  4. Hanrahan, P., Ramsay, I. and Stapledon, G. (eds.), Commercial Applications of Company Law, Sydney: CCH, 2002.Google Scholar
  5. Keong, L. C. (ed.), Corporate Governance: An Asia-Pacific Critique, Hong Kong: Sweet & Maxwell Asia, 2002.Google Scholar
  6. Kothari, V., Securitisation: The Financial Instrument of the New Millennium, Calcutta: Academy of Financial Services, 2003.Google Scholar
  7. Kothari, Vinod, Securitization: The Financial Instrument of the Future (John Wiley & Sons, 2006).Google Scholar
  8. Roberts, P., Understanding Grammar, N.Y.: Harper, 1954.Google Scholar
  9. True, R. B., ‘Risk and Insolvency Issues in Japanese Asset Securitization’ (1996) 28 New York University Journal of International Law and Politics 505.Google Scholar

Journal Articles

  1. Baxt, R., ‘The HIH Litigation’ (2002) 30 Australian Business Law Review 145.Google Scholar
  2. Chen, J., ‘Asset Securitisation and the Singapore Insolvency Regime’ (2001) 16 (8/9) Journal of International Banking Law 198.Google Scholar
  3. Colbran, S., ‘Security for Costs against Corporations: Section 1335 of the Corporations Law’ (1993) 11 (5) Company and Securities Law Journal 273.Google Scholar
  4. Rajapakse, Pelma, Richard Copp and J Gardner, ‘Insolvency Issues in Residential Mortgage Securitisation’ (2008) 34 Monash University Law Review 30.Google Scholar
  5. Taylor, B., ‘Assignment of Securities in Corporate Refinancing’ (1998) 13 (10) Australian Banking and Finance Law Bulletin 141.Google Scholar

Working Papers, Magazines, Newspapers and Reports

  1. Macquarie Securitisation Ltd, The PUMA Fund P-7: Master Information Memorandum, Sydney, February, 2000.Google Scholar
  2. Macquarie Securitisation Ltd, The PUMA Sub-Fund Series – 2014: Master Information Memorandum, Sydney, July 2014.Google Scholar
  3. Standard and Poor’s, ‘Credit Ratings on Mortgage-Backed Securities’, Structured Finance Australia and New Zealand, Melbourne, 1998.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Griffith UniversityBrisbaneAustralia
  2. 2.University of ColomboColomboSri Lanka

Personalised recommendations