Entering Into Memorandum of Agreement
The HDFC and the NHB entered into a Memorandum of Agreement on July 7, 2000, to entitle the NHB to take necessary steps to securities the said housing loans, including circulation of the Information Memorandum and collection of subscription amount from investors.
Acquisition of the Housing Loans by the NHB
The NHB would acquire the amount of balance principal of the housing loans outstanding as on the cut-off date, that is, May 31, 2000, along with the underlying mortgages/other securities, under the deed of assignment. There would be absolute transfer of all risks and benefits in the housing loans to the NHB (through the deed of assignment), and subsequently to the Spy Trust (through the declaration of trust). The housing loans selected or securitisation have been chosen in accordance with the pool selection criteria specified by the CRISIL.