Regulatory Alerts2005-12-09
Asset Securitization Law
Issued by the Banque du Liban, this law establishes a comprehensive legal framework governing asset securitization in Lebanon by defining the roles of originators, managers, custodians, and specialized mutual funds. It requires originators to assign financial assets or receivables to legally distinct entities that issue tradable shares and debentures, which may be marketed either publicly or through restricted channels to authorized financial institutions. The legislation centralizes regulatory oversight by granting the central bank approval authority over fund establishment and operational rules while clarifying asset ownership transfer, liability limitations, and the fiduciary duties of fund managers.
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