Securitization Law & Legal Definition


According to 13 CFR 120.420 [Title 13 Business Credit and Assistance; Chapter I Small Business Administration; Part 120 Business Loans; Subpart D Lenders; Participating Lender Financings], securitization is "the pooling and sale of the unguaranteed portion of SBA guaranteed loans to a trust, special purpose vehicle, or other mechanism, and the issuance of securities backed by those loans to investors in either a private placement or public offering."