> For the complete documentation index, see [llms.txt](https://t-blocks.gitbook.io/t-blocks-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://t-blocks.gitbook.io/t-blocks-documentation/why-luxembourg/securitisation-law-of-22-march-2004.md).

# Securitisation Law of 22 March 2004

Luxembourg's Securitisation Law is one of the most flexible and comprehensive securitisation frameworks in Europe. It enables the creation of securitisation vehicles (companies and funds) that can acquire any type of risk and finance that acquisition by issuing financial instruments.

Key features for T-Blocks:

* **Compartmentalisation.** Statutory ring-fencing of SubFund assets (Article 8)
* **Broad asset eligibility.** Any type of asset, risk, or activity can be securitised
* **Issuance flexibility.** Units, notes, and loans can be issued
* **Non-petition.** Statutory prohibition on petitioning for bankruptcy (Article 64)
* **Tax efficiency.** Commitments to investors are generally deductible, resulting in minimal taxable base

The Securitisation Law has been refined through multiple amendments since 2004, most recently to accommodate DLT-based securities and modernise the framework for digital capital markets.

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