U.S Code last checked for updates: Nov 26, 2024
§ 77z–2a.
Conflicts of interest relating to certain securitizations
(a)
In general
(b)
Rulemaking
(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
(May 27, 1933, ch. 38, title I, § 27B, as added Pub. L. 111–203, title VI, § 621(a), July 21, 2010, 124 Stat. 1631.)
cite as: 15 USC 77z-2a