The securitization of mortgage loans and other receivables benefits society and rests on a strong legal foundation. Securitization lowers the financing costs for borrowers and originators of loans by avoiding the costs imposed by the Bankruptcy Code on the secured creditors of operating companies. This article demonstrates how securitization avoids these costs by combining two long recognized legal devices, (1) a true sale of receivables to a buyer (2) that is a separate legal entity whose sole purpose is to finance the receivables. This structure separates the risks associated with the receivables, which creditors can more easily assess, from the murkier risks associated with an operating company.