Sec. 27B. CONFLICTS OF INTEREST RELATING TO CERTAIN SECURITIZATIONS
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## SEC. 27B CONFLICTS OF INTEREST RELATING TO CERTAIN SECURITIZATIONS **[**[15 U.S.C. 77z–2a](/us/usc/t15/s77z–2a)**]** ###
(a)In General An underwriter, placement agent, initial purchaser, or sponsor, or any affiliate or subsidiary of any such entity, of an asset-backed security (as such term is defined in section 3 of the Securities and Exchange Act of 1934 (15 U.S.C. 78c), which for the purposes of this section shall include a synthetic asset-backed security), shall not, at any time for a period ending on the date that is one year after the date of the first closing of the sale of the asset-backed security, engage in any transaction that would involve or result in any material conflict of interest with respect to any investor in a transaction arising out of such activity. ###
(b)Rulemaking Not later than 270 days after the date of enactment of this section, the Commission shall issue rules for the purpose of implementing subsection (a). ###
(c)Exception The prohibitions of subsection
(a)shall not apply to— ####
(1)risk-mitigating hedging activities in connection with positions or holdings arising out of the underwriting, placement, initial purchase, or sponsorship of an asset-backed security, provided that such activities are designed to reduce the specific risks to the underwriter, placement agent, initial purchaser, or sponsor associated with positions or holdings arising out of such underwriting, placement, initial purchase, or sponsorship; or ####
(2)purchases or sales of asset-backed securities made pursuant to and consistent with— #####
(A)commitments of the underwriter, placement agent, initial purchaser, or sponsor, or any affiliate or subsidiary of any such entity, to provide liquidity for the asset-backed security, or #####
(B)bona fide market-making in the asset backed security. ###
(d)Rule of Construction This subsection shall not otherwise limit the application of section 15G of the Securities Exchange Act of 1934.
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- 15 USC 77z–2a
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