The Maltese Parliament is considering a new securitization law generally based on the Luxembourg model. It provides a comprehensive framework for the conversion of receivables or other assets into securities that can be placed and traded in capital markets. Issued securities are collateralised by the pool of assets which are transferred to a separate entity, the securitization vehicle, also referred to as a special purpose vehicle (SPV). The SPV can take the form of an investment company, a partnership, a trust or any other legal structure permitted by the competent authority.
March 31 2006