On July 17, the SEC published interpretive guidance for the definitions of “mortgage related security” and “small business related security” of the Securities Exchange Act of 1934 in light of Section 939(e) of the Dodd-Frank Act which removed provisions in these definitions which referred to credit ratings and inserted new text that provided that, to satisfy the definitions, a security must meet standards of creditworthiness established by the SEC. The SEC is providing a transitional interpretation that will be applicable from July 20 until final rules establishing new standards become effective. Under the transitional interpretation, the standard of creditworthiness for “mortgage related security” continues to mean a security that is rated one of the two highest rating categories by at least one NRSRO and, for “small business related security”, one of the four highest rating categories by at least one NRSRO. The SEC is also seeking comments, due by 30 days after publication in the Federal Register, on potential standards of creditworthiness. SEC Guidance.