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

In Washington, asset-backed securities, or ABS, are subject to both state and federal laws. An ABS is a type of alternative investment that involves a pool of assets such as mortgages or auto loans. The pool of assets is then sold as securities to investors, who receive payments based on the income generated by the pool. Under federal law, the issuance of ABS is governed by the Securities and Exchange Commission (SEC). The SEC requires all ABS issuers to register their offerings with the SEC and provide potential investors with a prospectus detailing information about the securities, including the asset pool, the risks associated with investing, and the terms of the offering. Additionally, the SEC requires that ABS issuers bear the burden of ensuring that the securities are purchased in compliance with federal securities laws. At the state level, Washington state has adopted a version of the Uniform Commercial Code (UCC), which sets out specific legal requirements for the issuance of ABS. These requirements include guidelines for the registration of the securities, the disclosure of information about the pool of assets, and the ensuring that the sale of the securities is conducted in good faith and in compliance with state securities laws. In summary, the issuance of ABS in Washington is subject to both federal and state laws. The SEC governs the registration and disclosure of information to potential investors, while the UCC sets out specific requirements for the registration and sale of the securities.

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

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