Orderly Liquidation Authority of the Dodd-Frank Act

SIFMA provides comments to the Federal Deposit Insurance Corporation (FDIC) on the treatment of certain securities interests under the Orderly Liquidation Authority Title (Section 210(a)11) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act). SIFMA notes that there are inconsistencies between the U.S. Bankruptcy Code and Title II of the Dodd-Frank Act relating to the treatment of secured creditors. The inconsistencies have created concerns among securitization issuers and investors, as well as recipients of secured lending more generally. SIFMA believes that the current lack of clarity of how the inconsistencies will be resolved will affect issuances and the ability of securitization issuers to economically fund lending.