Modernization of Securitization Special Purpose Vehicles - International Law Office

Following Ordinance 2008-556, dated June 13 2008 and implementing the EU Reinsurance Directive (2005/68/EC), Decree 2008-711 was adopted on July 17 2008. It reforms the legal framework of the French special purpose securitization vehicle, the former debt mutual fund (fonds commun de créances), by changing rules regarding:

• the regulations and statutes of the securitization entity;
• the make-up of the assets and liabilities structure;
• the treatment of future financial instruments and the transfer of future receivables;
• receivables transfer and recovery, and disclosure; and
• certain aspects of securitization vehicles with compartments (similar to protected cell companies in other jurisdictions).

For further information on this topic please contact Philip Boys at Lovells by telephone (+33 1 53 67 47 47) or by fax (+33 1 53 67 47 48) or by email (philip.boys@lovells.com). The Lovells website can be accessed at www.lovells.com.