Germany's True Sale Initiative (TSI) moved one step closer to completion the weekend when the 12 banks, along with the government sponsored KfW, released more tangible guidance on how the initiative will be structured going forward.

According to market sources, the plan is to create the limited liability company, Service GmbH, that will provide an infrastructure for insolvency remote ABS issuing companies in Germany. Service GmbH's primary objective will be to establish true sale securitizations by developing and maintaining the standards for future transactions. The objective is also to provide market participants with a political forum where conditions and structuring techniques are discussed. 

The proposal for Service GmbH will be presented to the German Federal Cartel office before the end of this year and a debut transaction is expected sometime during the first half of 2004.

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