Bonds or notes backed by loan paper or accounts receivable originated by banks, credit card companies, or other providers of credit and often "enhanced" by a bank Letter Of Credit or by insurance coverage provided by an institution other than the issuer. Typically, the originator of the loan or accounts receivable paper sells it to a specially created trust, which packages it as securities. (Barron’s) Asset-backed securities can be either type IV or type V securities. Type IV securities were added as bank-eligible securities in 1996. For all type IV commercial and residential mortgage securities and for type IV small-business-loan securities that are not rated in the top two rating categories are subject to a limit of 25 percent of a bank’s capital and surplus for any one issuer. In addition to being able to purchase and sell type IV securities, subject to the above limitations, a bank may deal in those type IV securities which are fully secured by type I securities. Type V securities consist of all ABS that are not type IV securities, specifically defined as marketable, investment-grade-rated securities that are not type IV and are "fully secured by interests in a pool of loans to numerous obligors and in which a national bank could invest directly," and not rated in one of the two highest investment-grade rating categories, but are still investment-grade. A bank may purchase or sell type V securities for its own account provided the aggregate par value of type V securities issued by any one issuer held by the bank does not exceed 25 percent of the bank’s capital and surplus. (Federal Reserve-Trading and Capital-Markets Activities Manual)