Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 26-51-440 - FASITs
Rule 2.26-51-440 - Definition

A new type of statutory entity called a financial asset securitization investment trust (FASIT) has been created to facilitate the securitization of debt obligations such as credit card receivables, home equity loans, and auto loans. An entity that qualifies as a FASIT can issue instruments that are treated as debt for federal income tax purposes whether or not they would be so treated under normal tax principles. In addition, a FASIT itself generally is not taxable, and any taxable income or net loss which it has flows through to the equity owner of the FASIT. The interest on debt instruments issued by FASITs is deductible.