The Argentine province of Misiones is making unwelcome noise in the securitization market, as it seeks to expand the application of a stamp tax on trust agreements and securitization trusts regardless of where the documents are processed, according to Moody’s Investors Service.

“Most contracts for securitizations in Argentina are obliged to pay a stamp-tax in the City of Buenos Aires, where they are signed,” the agency said in a release. A government department in Misiones, however, is arguing that it should be able to collect this tax based on the fact that the general public residing anywhere in the country can purchase deals issued from these trusts, and therefore securitization has a “potential legal effect” in Misiones.

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