How are principal and interest payments handled if the ABS collateral enters early amortization?
In the case of revolving (or master) trusts, if an early amortization event (or an event by another name, such as early redemption event, that has the same effect) occurs with respect to an ABS that has been pledged as collateral for a TALF loan and principal payments on such ABS commence because of such occurrence or, if already commenced, the amount of such principal payments is adjusted because of such occurrence, then all of the principal payments received by the Custodian from such ABS shall be applied to repay the principal amount of, and any interest deficiency outstanding on, the TALF loan.
Related Questions
- How are principal payments on eligible collateral allocated between the borrower and repayment of principal on the TALF loan?
- How are principal and interest payments handled if the ABS collateral enters early amortization?
- Can I make random extra principal payments which impact an amortization schedule?
