I This document constitutes the base prospectus of ... - Volksbank AG

4. DESCRIPTION OF THE ISSUER AND OTHER ENTITIES PARTICIPATING IN THE
ISSUANCE
4.1 The Issuer
Corporate purpose
The Issuer shall have as its business purpose the carrying out of securitisation transactions within the meaning
of the Securitisation Law, which shall apply to the Issuer. The Issuer may enter into any agreement and
perform any action necessary or useful for the purpose of carrying out securitisation transactions, including,
without limitation, disposing of its assets in accordance with the relevant agreements.
The Issuer may only carry out the above activities if and to the extent that they are compatible with the
Securitisation Law.
Compartments
The board of directors of the Issuer may, in accordance with the terms of the Securitisation Law, and in
particular its article 5, create individual Compartments within the Issuer. Each Compartment shall correspond
to a distinct part of the assets and liabilities in respect of the corresponding funding. The resolution
of the board of directors creating one or more Compartments within the Issuer, as well as any subsequent
amendments thereto, shall be binding as of the date of such resolutions against any third party.
As between investors, each Compartment of the Issuer shall be treated as a separate entity. Rights of creditors
and investors of the Issuer that (i) have been designated as relating to a Compartment, on the creation
of a Compartment or (ii) have arisen in connection with the creation, the operation or the liquidation of a
Compartment are strictly limited to the assets of that Compartment which shall be exclusively available to
satisfy such creditors and investors. Creditors and investors of the Issuer whose rights are not related to a
specific Compartment of the Issuer shall have no rights to the assets of any such Compartment.
Unless otherwise provided for in the resolution of the board of directors of the Issuer creating such Compartment,
no resolution of the board of directors of the Issuer may amend the resolution creating such
Compartment or to directly affect the rights of the creditors whose rights relate to such Compartment without
the prior approval of the creditors whose rights relate to such Compartment. Any decision of the board
of directors taken in breach of this provision shall be void.
Without prejudice to what is stated in the precedent paragraph, each Compartment of the Issuer may be
separately liquidated without such liquidation resulting in the liquidation of another Compartment of the
Issuer or of the Issuer itself (but provided this shall take place subject to the authorisation of the shareholders
in a shareholders meeting which may be required when the Articles of the Issuer are modified).
The liabilities and obligations of the Issuer incurred or arising in connection with a Compartment and all matters
connected therewith will only be satisfied or discharged against the Compartment Assets. The Compartment
Assets will be exclusively available to satisfy the rights of the Security Holders and the other creditors of the
Issuer in respect of the Securities and all matters connected therewith, as provided therein, and (subject to mandatory
law) no other creditors of the Issuer will have any recourse against the Compartment Assets of the Issuer.
The Issuer shall, from time to time, and in respect of each individual Compartment, (a) issue Securities and
(b) purchase Compartment Assets (including, as the case may be, enter into Derivative Agreements. See
more, 2.2 - The Compartment assets and and 2.5 General Description of the Main Compartment Assets
and 2.6 Description of the Derivative Agreements) and, in so far as the above law permits, carry
out any necessary or useful measures or transactions allowing it to fulfil such purposes.
Issuer authorised by CSSF
The Issuer is a securitisation company authorised and supervised by CSSF pursuant to the Securitisation
Law. The Issuer is deemed to qualify as a securitisation company which will issue securities to the public
on a continuous basis. According to CSSFs administrative practise, more than 3 issues per year, i.e. one
issue per quarter is to be regarded as being on a continuous basis. The criterion of the public is fulfilled
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