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Title VI — Restrictions on securitizing risky corporate debt

S. 2155 · 116th Congress · Jul 17, 2019 · Lineage

VI Restrictions on securitizing risky corporate debt

Sec. 601 Risk retention requirements for securitization of corporate debt

Section 15G of the Securities Exchange Act of 1934 (15 U.S.C. 78o–11) is amended—
(1)
in subsection (a)(3)—
(A)
in subparagraph (A), by striking “or” at the end;
(B)
in subparagraph (B), by striking “and” at the end and inserting “or”; and
(C)
by adding at the end the following:

“(C) a manager of a collateralized debt obligation; and”

(2)
by redesignating subsection (i) as subsection (j); and
(3)
by inserting after subsection (h) the following:

“(i) Rules of construction—With respect to a securitizer described in subsection (a)(3)(C)—

“(1) any provision of this section that requires that securitizer to retain a portion of the credit risk for an asset that such securitizer does not hold, or has never held, shall be construed as requiring that securitizer to obtain that portion of the credit risk for that asset; and

“(2) any reference in this section to an asset transferred by the securitizer shall be construed to include any transfer caused by the securitizer.”