The Financial Asset Secuitization Investment Trust: Its Operationalization and Taxation

摘要

The Small Business Jobs Protection Act of 1996 (SBJPA) introduced a new special purpose income tax and financing vehicle known as FASIT. The purpose of this legislation was to permit securitization of nonmortgage based assets, to spread credit risk, and to promote capital market efficiency. The nature of the financial transaction, the parties required, and the taxation stipulated by the law are described herein.