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Article 3 - Specification of the application of the additional backward-looking trigger referred to in Article 26c(5), third subparagraph, point (b), of Regulation (EU) 2017/2402
1.
The parties to the credit protection agreement shall set a threshold for the percentage of the reduction of the detachment point of the most senior protected tranche, calculated in accordance with 2013 of the European Parliament and of the Council
, from its level at the closing date of the transaction, or, where the securitisation includes a pre-defined period during which the portfolio of securitised exposures is built up, at the end of that pre-defined build-up period.
2.
The additional backward-looking trigger referred to in Article 26c(5), third subparagraph, point (b), of Regulation (EU) 2017/2402 shall occur at any point in time after the closing date of the transaction where the decrease of the detachment point exceeds the threshold determined in accordance with paragraph 1 of this Article.