Regulatory Alerts2015-04-17
Rules on Securitization
These rules establish a rigorous regulatory framework for securitization, governing the formation and operation of Special Purpose Vehicles (SPVs) and the requirements for asset-backed securities. Applicants must adhere to strict documentation standards, including comprehensive sale, servicing, and liquidity facility agreements, while ensuring the true sale of assets to the SPV is legally isolated. The Securities and Exchange Commission maintains oversight authority, with powers to demand disclosure, inspect operations, and appoint interim representatives or cancel registrations to protect investor interests.
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