The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank” or the “Act”) requires the Securities and Exchange Commission (“SEC”) to adopt rules and regulations to implement various sections of the Act. On January 20, 2011, the SEC adopted two releases implementing Sections 943 and 945 of the Act. 

The SEC release implementing Section 943 of the Act affects all issuances of asset-backed securities, whether registered or exempt from registration with the SEC, and requires disclosure of fulfilled and unfulfilled repurchase requests for assets in securitizations that include covenants to repurchase or replace assets for breaches of representations or warranties made on those assets. The release also adopted disclosure requirements for nationally recognized statistical rating organizations who provide a credit rating on asset-backed securities.

The SEC release implementing Section 945 of Dodd-Frank requires issuers registering the sale of asset-backed securities with the SEC to perform a review of the assets securitized in the transaction, to disclose the nature of the review and the findings and conclusions of the review. 

Download the client alert from Kutak Rock LLP's Structured Finance Group here for a more detailed description of these SEC releases.
 
The principal authors of this alert are: 
 
 Joshua M. Kerstein (303) 292-7866 joshua.kerstein@kutakrock.com 
 Robert J. Ahrenholz (303) 292-7740 robert.ahrenholz@kutakrock.com
 
If you have any questions about this alert, please contact one of the authors above or another Kutak Rock LLP structured finance attorney.