Slide 1 National Law Center for Inter American Free Trade

					   U.S. Trade and Development
             Agency

   National Law Center for Inter-
       American Free Trade


          Feasibility Study
Securitization of Real Estate Assets
    Sonora and Baja California
                 Initial Structure – Foreign Investment in
                         Mexican Real Estate Sector
                 United States                  México

                       collateral


    Lender                    Borrower          Real Estate


rights


         Trust                      Investors
                      notes
Securitization of Real Estate
        Bridge Loans
          Feasibility Study
Securitization of Real Estate Assets
• Funded by the U.S. Trade and Development
  Agency
• 9 months of duration – beginning May 5, 2005
• Pilot States: Baja California and Sonora
• Host Entity: ICRESON
• Analysis of Primary and Secundary Market:
  – Federal and State Legal Framework
  – Public Registry, Courts, Notaries,etc.
  – Standardization of Documentation and Practices
     Elements to be Analyzed

Public Registry
                            Documentation




Legal Framework


                   Other Players: Notaries,
                   Judges, Attorneys, etc.
                    Principles
• Segregation   of Assets (“True Sale”)
•Bankruptcy Remoteness
   •Vis-à-vis Borrower
   •Vis-à-vis Trustee
•Priority
•Lack of Hidden Liens
•Legal Certainty
•Rule of Law
             Order


             Investors
            SECONDARY
             MARKET



    PRIMARY MARKET
       Agreements / Laws
        Análisis Inicial
 Public Registry & Other Players

Integración Grupos de Trabajo

R   U   L    E   O   F   L      A   W
                         Time Table
Month 1. Integration of Working Group and Committees; Public Registry Visits

       Months 2-3. Initial Research and Analysis + Draft Questionnaires


                  Months 4-5. Field Research (Questionnaires & Interviews)


                            Month 6. Data Compilation and Analysis


                                        Month 7. Field Work

                                                  Month 8. Preliminary
                                                  Report
                                                              Month 9. Final
                                                              Report
Committees and Working Group

     Legal                  Financial
   Committee               Committee
                  WG



               Technical
                 and
               Operative
               Committee
            Analysis - Participants

                     Attorneys
                                      Structurers

Issuer/Originator   Public Registry                 Investors

                                      Placement
                                       Agents
                     Notaries
                                        Rating
                                       Agencies

                                       Garantors
          Some Action Items
• Enable Contact w/State Housing Authorities and
  Entities
  – Documentation and Practices
• Enable Contact w/Loan Portfolio Originators in
  the region
  – Documentation and Practices
• Enable Contact w/ state and federal Judges
  – Rule of Law
  – Assistance on Enforcement of Judgements
• Enable contact w/most active Trustees in the
  region
  – Documentation and Practices
• Assistance on Mapping of Lands and/or
  Community Groups under special right regimes
  ecological, cultural, economical, or otherwise

				
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posted:9/7/2011
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