New legal framework for securitization

The Polish legal system had not had comprehensive regulations regarding securitization, hence certain steps needed to be taken in order to create an efficient legal framework that would protect the economic interests of all the participants of a securitization process. Recent amendments to the Polish Banking Law deal with major banking issues relating to securitization, such as general permit for banks to sell their receivables to special purpose issuers, general rules for the acquisition of securitization securities or re-purchase of securitized receivables. The Investment Funds Bill presently debated by the Parliament will create securitization funds as efficient special purpose entities which will gather funds for acquisition of receivables by issuing investment certificates. Additionally, the bill will implement certain rules regarding the enforcement and protection of rights attributable to securitization funds during the securitization process. Moreover, a bill of Act on Securitization has been filed with the Polish Parliament. The authors of the bill believe that this act will create a comprehensive regulation for all types of securitization transactions and structures.
For further information please contact Lejb Fogelman or Jarosław Grzesiak at Dewey Ballantine Grzesiak LP. Tel. +48 22 690 6100; fax +48 22 690 6222; www.deweyballantine.com