Covenants in Securitization Documents Linked to Supervisory Actions or Thresholds - Circulars

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Circular

Covenants in Securitization Documents Linked to Supervisory Actions or Thresholds

May 29, 2002

Circular No. 11445

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

In a Supervisory Letter, the Federal Reserve Board announces that the Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision have issued guidance regarding the unsafe and unsound use of covenants tied to supervisory actions in securitization documents. A copy of the guidance (pdf - 86kb) is attached.

Questions on this matter may be directed to your relationship specialist at this Bank.

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