An impending overhaul of uniform state law, slated for acceptance by nearly all 50 states next month, might be a boon to securitization lawyers and issuers of CDO/CLO transactions, and may even clear up lingering doubts stemming from the LTV Steel bankruptcy case (see ASR 3/12/01), which challenged true sale treatment for ABS deals.

Securitization-friendly revisions to Uniform Commercial Code Article 9, which sets forth rules on secured transactions and security interests for certain types of collateral, have already been adopted in 35 states, and are expected to be adopted by several more on July 1, which is the effective deadline date.

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