As you have surely heard by now, there is an SEC Rule that is shortly going to be applicable to “municipal” student loan securitizers.

In that regard, linked below is a client alert that deals with a provision of Dodd-Frank that is only now becoming applicable to “municipal” student loan issuers, which includes state agencies and non-profits. Basically, it requires a filing with EMMA in the fairly near future, if (a) an issuer has issued asset-backed securities, such as student loan bonds, in the last three calendar years, and (ii) the student loan bond indentures or underlying documents such as student loan purchase agreements contain a repurchase or replacement obligation from the originator (issuer or someone else if they purchased loans) with respect to the underlying student loans. Typically, the repurchase or replacement obligations sometimes arose where the loan failed to meet the required criteria, or was subject to some other lien, or in the FFELP world no longer constituted a guaranteed loan, etc. There is then also a quarterly reporting requirement starting May 15 that is described in the alert that applies to all Indentures outstanding whether the issuer has issued bonds under them in the last three years or not. The report to EMMA is a summary of required purchases or replacements and what the result of those requirements has been.