How are principal payments on eligible collateral allocated between the borrower and repayment of principal on the TALF loan?
Any remittance of principal on eligible collateral must be used immediately to reduce the principal amount of the TALF loan in proportion to the original loan-to-value ratio. For example, if the original loan-to-value ratio was 90 percent, 90 percent of any remittance of principal on the ABS must immediately be repaid to the New York Fed.
Related Questions
- How are principal payments on eligible collateral allocated between the borrower and repayment of principal on the TALF loan?
- If a TALF-financed ABS incurs a principal loss, would the loss be allocated between the borrower’s haircut and the TALF loan?
- How are payments on eligible collateral allocated between the borrower and repayment of principal on the TALF loan?
