What are the laws governing the issuance of asset-backed securities?

In California, alternative investments, such as asset-backed securities, are governed by a set of laws that are designed to protect investors and ensure the integrity of the market. These laws are aimed at enforcing disclosure and transparency, prohibiting insider trading and fraud, and providing investor protections. The California Corporations Code (Section 25001 et seq.) is the primary statute governing the issuance of asset-backed securities in California. It sets forth the requirements that companies must meet in order to issue securities, such as registering and filing disclosure documents with the Securities and Exchange Commission. It also outlines the responsibilities of companies to investors, including the providing of periodic reports about the asset-backed securities. The California Financial Code also requires companies to register and file notice with the Commissioner of Business Oversight in order to issue asset-backed securities. This code contains requirements for firms to make certain disclosures in connection with the offering and sale of asset-backed securities. It also requires that the asset-backed securities be rated by an independent rating agency, and provides for additional investor protections, such as the establishment of a reserve account. Finally, the California Corporations Securities Law (Section 25100 et seq.) sets forth additional requirements for the issuance of asset-backed securities, including the requirement of a managing underwriter to act as an intermediary between the issuer and the investors, and a requirement that the issuer maintain adequate books and records of the offering. These laws are designed to provide investors with the necessary information to make an informed investment decision, and to protect them from fraud and abuse.

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What are the laws governing the issuance of asset-backed securities?

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