Key parties, documents and terms of a commercial mortgage-backed securities transaction
Produced in partnership with Ed Bellamy of Paul Hastings
Key parties, documents and terms of a commercial mortgage-backed securities transaction

The following Banking & Finance guidance note Produced in partnership with Ed Bellamy of Paul Hastings provides comprehensive and up to date legal information covering:

  • Key parties, documents and terms of a commercial mortgage-backed securities transaction
  • An introduction to commercial mortgage-backed securities
  • Diagrammatic overview of a typical CMBS transaction
  • Diagrammatic overview of ongoing cashflow
  • Key parties of a CMBS transaction
  • Principal documents and key terms of a CMBS transaction

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. This has an impact on this Practice Note. For guidance, see Practice Note: Brexit—impact on finance transactions—Brexit planning and impact—financial services, Brexit—impact on finance transactions—Key issues for securitisation transactions and Brexit—impact on finance transactions—Derivatives and debt capital markets transactions—key SIs.

An introduction to commercial mortgage-backed securities

Commercial mortgage-backed securities (CMBS) are notes that are offered to investors which are collateralised by a loan or a pool of loans secured by commercial real estate property(ies) (eg office blocks or factories). The basic structure for a CMBS transaction typically involves the following:

  1. A special purpose vehicle (