The Federal Deposit Insurance Corp. (FDIC) has issued a final ruling meant to clarify the Orderly Liquidation Authority (OLA) receivership under the Dodd-Frank Act. Moody’s Investor Service considers this ruling to be credit positive for non-bank sponsored ABS, particularly auto loan ABS and equipment leases or instruments. 

A report released by the rating firm today stated that the FDIC’s clarification confirmed Moody's earlier belief that the government agency “would tie its preferential claw-back powers under OLA to hurdles set by the Bankruptcy Code.” 

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