6.2-2401 - (Effective October 1, 2010) Securitization transactions; no interest retained by transferor. - Virginia Statutes

§ 6.2-2401. (Effective October 1, 2010) Securitization transactions; nointerest retained by transferor.

Notwithstanding any other provision of law, including § 8.9A-623, to theextent set forth in the transaction documents relating to a securitizationtransaction:

1. Any property, assets, or rights purported to be transferred, in whole orin part, in the securitization transaction shall be deemed to no longer bethe property, assets, or rights of the transferor;

2. A transferor in the securitization transaction, its creditors or, in anyinsolvency proceeding with respect to the transferor or the transferor'sproperty, a bankruptcy trustee, receiver, debtor, debtor in possession, orsimilar person, to the extent the issue is governed by the laws of theCommonwealth, shall have no rights, legal or equitable, whatsoever toreacquire, reclaim, recover, repudiate, disaffirm, redeem, or recharacterizeas property of the transferor any property, assets, or rights purported to betransferred, in whole or in part, by the transferor; and

3. In the event of a bankruptcy, receivership, or other insolvency proceedingwith respect to the transferor or the transferor's property, to the extentthe issue is governed by the laws of the Commonwealth, such property, assets,and rights shall not be deemed to be part of the transferor's property,assets, rights, or estate.

(2004, c. 600, § 6.1-473; 2010, c. 794.)