SFIG Judicial Advocacy: Get Involved!
SFIG is currently advancing judicial advocacy on multiple fronts via three amicus briefs. These cases cover topics that are crucially important to SFIG members and have broad implications for the structured finance market. As with our policy responses, we try to ensure that affected market participants have the opportunity to comment. However, as these are legal briefs, the primary forum for drafting and comments resides with the Legal Counsel Committee. The committee is open to both internal and external counsel, irrespective of what Industry Participant type an organization may be. If you are a lawyer interested in joining the committee or would like one of your firm's legal representatives to participate in the discussions, please contact Alyssa.Acevedo@sfindustry.org.  

Below are brief descriptions of the current cases in which SFIG members are engaged:
  1. Taberna Preferred Funding IV, Ltd.: SFIG recently submitted an amicus brief to the U.S. Bankruptcy Court for the Southern District of New York (the Court). In this brief, SFIG highlighted that the attempt by senior note holders to put Taberna Preferred Funding IV, Ltd (Taberna) in bankruptcy is an abuse of the reorganization process. Taberna's structure as a non-recourse securitization that lacks the capacity to be reorganized, and should be liquidated by its terms, is a fundamental and universally accepted and agreed aspect of securitization transactions. As stated in the brief, to jettison the already agreed liquidation procedures under the Taberna indenture in favor of bankruptcy for the personal and pecuniary aims of some creditors to the detriment of others would result in a significant jolt to investor confidence in the non-recourse and bankruptcy-remote nature of securitization vehicles.
  2. Sharma and related cases: SFIG has been following a series of Maryland state court cases that would require a trust to become licensed as a debt collector under Maryland state law. The trustees are appealing the lower courts' rulings which ruled that a trust must be licensed in order to foreclose. SFIG is filing an amicus on behalf of the appellant trusts that highlights the applicable statutory exemption and the potential effects of this law as applied by the lower courts.
  3. CFPB v The National Collegiate Master Student Loan Trust et al: This case centers around the rights and jurisdiction of the Consumer Financial Protection Bureau (CFPB) to issue a Proposed Consent Judgement, impacting the underlying assets of a securitization trust. Multiple parties to the transactions in question have filed motions to intervene in the CFPB Proposed Order, and SFIG is in the early stages of crafting a supporting amicus brief. 
We encourage all members with a stake or business interest in these cases to please sign up to join the Legal Counsel Committee in order to participate. If you have any questions, please contact Jennifer.Wolfe@sfindustry.org or Alyssa.Acevedo@sfindustry.org.
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