In connection with floorplan ABS, may ineligible receivables from a dealer be transferred to the issuer along with the dealer’s eligible receivables for ease of administration by the servicer?
Yes, but (1) all ineligible receivables transferred to the issuer must be treated, in effect, as having a value and balance of zero in the floorplan transaction documents and (2) notwithstanding clause (1), the aggregate balance of all ineligible receivables from all dealers held by the issuer must not exceed 5% of the total pool of eligible receivables in that securitization.
Related Questions
- Does the requirement that eligible auto dealer floorplan and credit card ABS be issued to refinance existing ABS maturing in 2009 apply at the individual master trust level or at the issuer level?
- In connection with floorplan ABS, may ineligible receivables from a dealer be transferred to the issuer along with the dealer’s eligible receivables for ease of administration by the servicer?
- Must a credit card or auto dealer floorplan ABS issuer issue eligible ABS concurrent with the maturation of the ABS the eligible ABS is refinancing?
