In general, Japan's legal framework for asset-backed securities transactions includes a number of laws. Their applicability depends on the type of underlying assets that are securitized. Below are some of the salient laws governing securitization transactions:

• The Securities and Exchange Law (SEL), amended as the Financial Instruments and Exchange Law, is the fundamental law governing securities and securitization transactions.


• The Japanese Civil Code stipulates that a notary’s certification to each debtor is required to complete asset transfers for non-negotiable instruments (for example, loans and receivables).


• The Law of Regulating Business for Specific Claims (known as MITI Law) permits leasing and credit companies to complete an asset transfer with a special purpose company through public notice. The law hastened the growth of receivables securitization in Japan by enabling originators to avoid the high costs of individual notification required under the Civil Code.


• The Law Concerning Securitization of Specified Assets by Special Purpose Companies (SPC Law) established special purpose companies as issuing bodies for asset -backed securities. Amended in 2000, the law expands the range of assets that can be securitized and establishes a trust-type scheme as an alternate vehicle for asset securitization.

There are no complete English translations of these laws.