Search within this section
Select a section below and enter your search term, or to search all click C&DIs
Favorited Content
Section 308. Item 1108 of Regulation AB
us SEC - C&DI - Regulation AB and Rules
308.01 Item 1108 General Guidance
Under Item 1108, an issuer must include disclosure regarding any party, including third-party vendors, that meets the definition of a servicer (i.e., is involved in the management or collection of the pool assets or is making allocations or distributions to holders of the asset-backed securities) and meets the 20% threshold test. The disclosure required, however, only extends to information material to the servicing function the party performs for the pool assets. For example, some of the disclosure requirements for a primary servicer, such as experience in servicing payments for a particular asset type, may not be material for a third-party vendor that solely provides the lockbox function for payments received on 100% of the assets located in the asset pool. Thus, disclosure under each category of information for each servicer may not be required. [12/09/14] (Reg AB Telephone Interpretation 6.01)
308.02 Item 1108 General Guidance
The disclosure of a servicer’s procedures under Item 1108 should be limited to that which a reasonable investor would find material in considering an investment in the asset-backed securities and the servicing and administration of the pool assets and the asset-backed securities. The description of servicers’ operating procedures should not include immaterial or technical data that obscures the material disclosure. [12/09/14] (Reg AB Telephone Interpretation 6.02)
308.03 Item 1108(a)
Item 1108(a) of Regulation AB requires disclosure of certain information if an unaffiliated servicer services 10% or 20% or more of the pool assets. The disclosure required by this item must be included in the registration statement. The calculation of the 10% and 20% thresholds in Item 1108(a) should be made as of the designated cut-off date for the transaction. [12/30/05] (Reg AB Telephone Interpretation 7.01)
308.04 Item 1108(a)(2)
A change in the servicer for a particular servicing function from the entity that was disclosed in the initial registration statement must be disclosed if the new servicer meets the criteria of Item 1108(a)(2). The issuer must disclose the change and related disclosure regarding the new servicer on a current report on Form 8-K within the time period allowed by that Form, or under Item 8 of Form 10-D, as appropriate. If there is a material change in the servicer’s procedures from the disclosure provided in the prospectus, there is no requirement that the revised servicing procedures be disclosed in the Exchange Act periodic or current reports unless the information relates to the distribution and pool performance information that Form 10-D requires or if the disclosure is of a material fact necessary to make the rest of the disclosure not misleading. [12/09/14] (Reg AB Telephone Interpretation 7.02)
308.05 Item 1108(b)(4)
Item 1108(b)(4) requires disclosure of information regarding the servicer’s financial condition to the extent that there is a material risk that the effect on one or more aspects of servicing resulting from such financial condition could have a material impact on pool performance or performance of the asset-backed securities. Where disclosure is required, the type and extent of information regarding the servicer’s financial condition would depend upon the particular facts. Information does not have to include the financial statements of the servicer, unless the financial statements are necessary for investor understanding of the servicer’s condition. [12/30/05] (Reg AB Telephone Interpretation 8.01)
This is a work of the U.S. Government
Link copied
