15 U.S.C. § 77z–2a — Conflicts of interest relating to certain securitizations

FEDERAL · 15 U.S.C. · Chapter 2A

Conflicts of interest relating to certain securitizations

Current through Pub. L. 119-99

Title 15 — Commerce and Trade·Ch. 2A — SECURITIES AND TRUST INDENTURES·Subch. I

(a)In general An underwriter, placement agent, initial purchaser, or sponsor, or any affiliate or subsidiary of any such entity, of an asset-backed security (as such term is defined in section 78c of this title, which for the purposes of this section shall include a synthetic asset-backed security), shall not, at any time for a period ending on the date that is one year after the date of the first closing of the sale of the asset-backed security, engage in any transaction that would involve or result in any material conflict of interest with respect to any investor in a transaction arising out of such activity.

(b)Rulemaking Not later than 270 days after July 21, 2010, the Commission shall issue rules for the purpose of implementing subsection (a).

(c)Exception The prohibitions of subse

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(a) In general
An underwriter, placement agent, initial purchaser, or sponsor, or any affiliate or subsidiary of any such entity, of an asset-backed security (as such term is defined in section 78c of this title, which for the purposes of this section shall include a synthetic asset-backed security), shall not, at any time for a period ending on the date that is one year after the date of the first closing of the sale of the asset-backed security, engage in any transaction that would involve or result in any material conflict of interest with respect to any investor in a transaction arising out of such activity.
(b) Rulemaking
Not later than 270 days after July 21, 2010, the Commission shall issue rules for the purpose of implementing subsection (a).
(c) Exception
The prohibitions of subsection (a) shall not apply to—
(1) risk-mitigating hedging activities in connection with positions or holdings arising out of the underwriting, placement, initial purchase, or sponsorship of an asset-backed security, provided that such activities are designed to reduce the specific risks to the underwriter, placement agent, initial purchaser, or sponsor associated with positions or holdings arising out of such underwriting, placement, initial purchase, or sponsorship; or
(2) purchases or sales of asset-backed securities made pursuant to and consistent with—
(A) commitments of the underwriter, placement agent, initial purchaser, or sponsor, or any affiliate or subsidiary of any such entity, to provide liquidity for the asset-backed security, or
(B) bona fide market-making in the asset backed security.
(d) Rule of construction
This subsection 1 shall not otherwise limit the application of section 78o–11 of this title.

15 U.S.C. § 77z–2a (Conflicts of interest relating to certain securitizations) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Source Credit

History

(May 27, 1933, ch. 38, title I, §27B, as added Pub. L. 111–203, title VI, §621(a), July 21, 2010, 124 Stat. 1631.)

Editorial Notes

Statutory Notes and Related Subsidiaries

Effective Date
Pub. L. 111–203, title VI, §621(b), July 21, 2010, 124 Stat. 1632, provided that: "Section 27B of the Securities Act of 1933 [15 U.S.C. 77z–2a], as added by this section, shall take effect on the effective date of final rules issued by the [Securities and Exchange] Commission under subsection (b) of such section 27B, except that subsections (b) and (d) of such section 27B shall take effect on the date of enactment of this Act [July 21, 2010]."