Conveyance is a legal document that transfers the ownership of an asset from one party to another. In the context of securitisation, a conveyance is used to transfer the ownership of the underlying assets from the originator to the special purpose vehicle (SPV).
The conveyance typically includes the following information:
- The identity of the transferor and transferee
- The description of the assets being transferred
- The terms of the transfer
- The representations and warranties of the transferor
- The remedies available to the transferee in the event of a breach by the transferor
The conveyance is an important document in the securitisation process, as it ensures that the ownership of the underlying assets is transferred to the SPV in a legally binding manner.
Here are some examples of conveyances in securitisation:
- A bank might convey a pool of mortgages to a special purpose vehicle.
- A company might convey a pool of receivables to a special purpose vehicle.