Are there other events that may affect the portion of current cash flow on ABS collateral that is applied to a borrower’s TALF loan obligations?
Yes. If one or more specified circumstances exist with respect to a particular ABS pledged as collateral for a TALF loan, then all cash flow received on such ABS while the circumstance exists must be applied to the payment of the accrued interest on and outstanding principal amount of the TALF loan.
Related Questions
- Are there other events that may affect the portion of current cash flow on ABS collateral that is applied to a borrower’s TALF loan obligations?
- Must an eligible borrower own newly issued ABS it plans to pledge as collateral for a TALF loan at the time it subscribes for the loan?
- Must an eligible borrower own the ABS it plans to pledge as collateral for a TALF loan at the time it subscribes for the loan?
