Newsletter - Recent changes to the Italian Securitisation Law

Italian Law No. 145 of 30 December 2018 (the “2019 Budget Law”), published in the Official Journal No. 302 of 31 December 2018, has introduced some important changes to the Italian securitisation law (Law No. 130 of 30 April 1999, “Law 130”).

The main changes are as follows:
ì. securitisation companies can now subscribe for notes issued by unlisted limited liability companies (società a responsabilità limitata – “Srls”) and securitization companies issuing notes may subscribe for unlisted notes issued by Italian companies limited by shares (società per azioni – “SpAs”), in derogation from the usual statutory ratios on debt limits;
ii. securitisation companies may grant financing to “microenterprises” that have a balance sheet equal to or in excess of Euro 2 million;
iii. originators can create segregated pools of assets in connection with these transactions to facilitate the risk transfer;
iv. Law 130 now applies to the securitisation of cashflows from real estate and ‘registered moveable property’.

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