In a move that could potentially benefit U.S.-Canada cross-border asset-backed transactions, the Canadian Institute of Charted Accounts recently passed a measure that replicates the U.S. accounting rule FAS 140.

The new rule is currently in effect voluntarily, and will become mandatory sometime in the second quarter. A major benefit to the ABS market is that the rule would eliminate the 10% cap on recourse for asset-backed transactions.

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