The FASB proposed to amend Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, to prohibit any party from being able to support the value of its interest in a qualifying special purpose entity (a "QSPE") by providing financial support or making decisions about reissuing beneficial interests. In connection with a securitization, QSPE status allows an entity to be treated as s eparate and deconsolidated from the transferor. The proposal generally would prohibit a QSPE from having an agreement that obligates a transferor to deliver additional cash or other assets (e.g., through a liquidity commitment, financial guarantee or total return swap) to fulfill the QSPE’s obligations to beneficial holders. Moreover, if the entity can reissue beneficial interests, then it generally also may not receive assets in addition to the original transfer from any party unless: (1) no party provides a commitment with a fair value exceeding
