A companion bill to the “U.S. Covered Bonds Act of 2011” (the “Act”), which was introduced earlier this year in the U.S. House of Representatives, was recently introduced in the U.S. Senate. While the Senate bill largely mirrors the House bill as approved by the House Financial Services Committee, there are several key differences. This DechertOnPoint summarizes those differences.

Covered Bond Act Definitions

The Senate bill incorporates the following revisions into the definitions section of the Act:

- Two additional types of entities have been added to the definition of “Eligible Issuers,” namely (i) any broker or dealer registered under Section 15 of the Securities Exchange Act of 1934, as amended (the “1934 Act”), that is a member of the Securities Investor Protection Corporation and (ii) any insurer that is supervised by a state insurance regulator....