Securities Law Updates | New Statutes, Regulations and Rules
January 29, 2010
New FDIC Rule Provides Safe Harbor Protection for Securities Against Seizures in Case of Financial Collapse
Defining Safe Harbor Protection for Treatment by the Federal Deposit Insurance Corporation as Conservator or Receiver of Financi
Amendments to 12 C.F.R. § 360.6, RIN ____, 11/12/2009
The Board of Directors of the Federal Deposit Insurance Corporation (“FDIC”) has adopted a proposed Interim Final Rule amending 12 C.F.R. § 360.6 to provide a transitional safe harbor effective immediately for all participations and securitizations in compliance with that rule as originally adopted in 2000.
In summary, the Interim Final Rule confirms that participations and securitizations completed or currently in process on or before March 31, 2010 in reliance on the FDIC’s existing regulation will be ‘grandfathered’ and continue to be protected by the safe harbor provisions of Section 360.6 despite changes to generally accepted accounting principles adopted by…
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