Asset backed commercial paper program

摘要

In general, in one aspect, the invention includes an asset backed securities structure. The structure includes a first and second liquidity and/or credit provider and an entity structured to acquire interest in financial assets from sellers (and to issue to a plurality of investors notes backed by the financial assets). The structure also includes a liquidity and/or credit agreement between the entity and the liquidity and/or credit providers. The agreement provides that when funding is required, the first (i.e., subordinate) liquidity and/or credit provider contributes an amount up to a predetermined commitment level and the second (i.e., senior) liquidity and/or credit provider contributes an additional amount only if the amount contributed by the first liquidity and/or credit provider is less than the required funding amount. Contributions by the liquidity and/or credit provider may be realized by a purchase of an interest in the financial assets acquired by the Company from the sellers. In some implementations, the agreement is also structured such that upon a repayment to the liquidity and/or credit providers, the second provider receives payments in an amount sufficient to repay the amount contributed by the second provider and, only if sufficient repayment funds exist, the first provider receives repayment up to a lesser of the amount of funds available or an amount contributed by the first provider. In general, in another aspect, the invention includes a method of issuing asset backed securities by an issuing entity. The method includes (i) acquiring interests in financial assets of sellers; (ii) issuing to investors Notes where the acquired interest in the financial assets back the issued Notes; (iii) paying interest on the Notes to the investors; and (iv) when additional liquidity is required, drawing funds from liquidity and/or credit providers. Drawing funds includes drawing from a first liquidity and/or credit provider up to a maximum amount of a commitment by that liquidity and/or credit provider and then drawing from an additional liquidity and/or credit provider only after the maximum amount of the commitment by the first liquidity and/or credit provider has been drawn.