S&P Won't Rate Interim Georgia Loans

Standard & Poor's Ratings Services has announced that it will not rate structured finance transactions that include Georgia loans originated between Oct. 1, 2002 and March 7, 2003.S&P said its decision followed a review of the repeal provision of the recently enacted amendment to the Georgia Fair Lending Act. The review was aimed at determining whether the amended act applies retroactively to loans originated between Oct. 1, 2002 and March 7, 2003. "There is a presumption in Georgia law, as with federal law, that a law is not retroactive unless it clearly states otherwise," the rating agency said. "The amended act does not explicitly provide for retroactivity. In addition, Georgia case law has interpreted that a repealing act will not be given retroactive operation with respect to rights and obligations under the repealed act." S&P had already announced that it would resume rating transactions that include Georgia loans originated on or after March 7, 2003, the date the amendment to GFLA was signed into law.