The German Parliament's move to eliminate collection permits for ABS transactions is expected to pass before the upper chambers of parliament in the coming weeks. Perhaps it is a small step towards opening up true-sale securitizations; nonetheless, it does away with a needless bureaucratic headache that made accomplishing German true-sale structures that much harder, said market sources.

"Abolishing this legislation makes true-sales easier despite the tax uncertainties that still exist," said one source familiar with the situation. "This is one point that has caused unnecessary troubles, especially in terms of timing, not to mention that the process of obtaining this license often require talking to some judge at a local court who has never heard of ABS before."

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