On September 27, the FDIC approved a final rule providing a safe harbor for securitizations and participations by insured depository institutions that later become subject to FDIC receivership. The final rule grandfathers certain transactions during a transition period by providing a safe harbor if the transaction would qualify as a sale for accounting purposes under GAAP pre-FAS 166/167. To be afforded the full protection of the safe harbor, transactions occuring after the transaction period must (i) satisfy the conditions of the rule, including disclosure and risk retention requirements, and (ii) qualify as sales under current GAAP. Post-transition period transactions which satisfy the conditions of the rule but do not qualify as sales under current GAAP will have other, more limited, protections. FDIC Release. Final Rule.