1. 1 | Research conductedby Arthur Mboue
Players (type) Contractual duties Item
number
or form
Basic disclosure Required documents Detailed Content
Originator/sponsors
(mostly large
financial
institutions,
commercial
enterprises, big real
estatecompanies &
mediumsized
enterprises)
Thisentity initiatesthe
securitizationprogramfor
lowercostsof borrowing,
alternative source of
borrowingandaccelerate cash
receipts
1104,
prospect
us,form
abs 15-G,
prospect
us
Provide the following
informationaboutthe sponsor
State the sponsor’sname
and describe the sponsor’s
formof organization
Describe the general
character of the sponsor’s
business
Securitizationprogram
o General discussion
regardingassetsof
any type
o Detaileddiscussion
regardingassets of
the type being
securitized
o Size,composition
and growthof
relevantasset
portfolio
o Otherinformation
material toanalysis
of the pool asset,
such as prior
securitization,early
amortizationor
defaults
Describe the sponsor’s
material rolesand
responsibilitiesinits
securitizationprogram
If applicable,disclose pool
assetsrepurchase activityfor
all of the sponsor’s
securitization
Agreementtotransfer
the receivables
Assetpurchase & sale
agreementorloan
(consignment/pledge)
agreement
Agreementstoprovide
creditenhancementor
liquiditysupport(if
applicable)
Clean-upagreement
Servicingagreement(if it
alsoacts as a servicer)
Must be clear
Containsrepresentations,
warrantiesandany criteria
the receivablesmustsatisfy
The SPV’srecourse andrights
againstthe originatorfor
breachof representation,,
warrantyor contractual
termsby the originator
Originator’sobligationto
repurchase anyreceivable
not eligible atthe
representation
If the originatoralsoactsas a
servicer,itwill be aprovision
givingthe rightto the
originatortopurchase all the
remainingsecuritieswhenit
reachesa certainlevel
2. 2 | Research conductedby Arthur Mboue
Debtor (anytype of
customersof the
originator-each
personliable forthe
full orpartial
paymentor
performance of any
loanor debt
whethersuch
personisobligated
directly, indirectly,
primarily,
secondarily,jointly
or severally)
Theyare the originator’s
obligors. Theircreditscores
and historicpayment
experience are nucleustoa
successof the full ABS
program. Theydo notneedto
be notifiedof,consenttothe
transferof the receivables
because theyare not
participatingpartiesinthe
securitizationprogram.
Estimate of lossesor
allowance forlossesrequires
considerationof historical loss
experience adjustedfor
currentconditionand
judgmentsaboutthe probable
effectsof relevantobservable
data includingpresent
economicconditionssuchas
delinquencyratesforhealthof
specificcustomersandmarket
sectors,collateral valuesand
the presentandexpected
future levelsof interestrates.
The underlyingassumptions,
estimatesandassessments
usedto provide forlossesare
updatedperiodicallytoreflect
currentconditions. These
assessmentsare subjectto
regulatoryexaminations
whichcan resultinchange to
these assumptionsorworse.
1112,
prospect
us,FWP,
10-D, 10-
K
Provide informationabout
each significantobligorand
the nature of the obligation
For obligorsthatare notABS
issuers,provide information
o Summaryfinancial
informationfor10%
obligors
o Auditedfinancial
statementfor20%
obligors
If the obligorisAnissuing
entityof ABS:the discussion
requirementunderitems
1104, 1115, 1117, and 1119
of RegAB applied
Bill
Sale notice orsale
agreement
Lease or rentcontracts
Itemnumber
Warranty duration of buyer
Price agreedon
AgreedInstallationpayments
Investors(financial
institutions,
insurance
companies,pension
Purchase the securities
issuedbythe SPV
Receive interestand
principal paymentsfrom
Prospect
us,1111
To enhance theirknowledge
of the ABSbefore any
investment,investorswould
alsorelyon
Securitypurchase
agreement
Securitytrustdeed
(certificate)
Index of stockpurchase
agreement
o Definition
o Sale and purchase of
3. 3 | Research conductedby Arthur Mboue
funds,hedgefund
and wealthy
individuals)
the payingagentas
scheduled
o State of Pool assets
o Tax matters
o Legal proceedings
Pool assets:
Describe the pool assetswith
a tabular representationof
average pool tosales,
average balance,weighted
average coupon,average
age,remainingterm,average
loanto value or simple ratio
and weightedaverage
standardizedcreditscore or
otherapplicable measureof
obligorcreditquality
o Describe the typesof
pool assetsto be
securitized
o Describe material
termsof the pool
assets
o Describe solicitation,
creditgranting
o Provide the method
and criteriabywhich
the pool assetswere
selectedforthe
transactions
o The cut-off rate or
similardate for
establishingthe
compositionof the
assetpool,if
applicable
o Identifybrieflylegal
and regulatory
provisions
o Provide the nature
Stock certificates
Offeringmemorandum
Investorqualification
questionnaire (forPPM)
Subscriptionagreement
Agreementtobecome a
party to shareholders
shares
o Representationand
warrantiesof seller
o Representationand
warrantyof buyer
o Certaincovenants
o Conditions
precedent
o Terminationpolicies
o Indemnification
4. 4 | Research conductedby Arthur Mboue
of the reviewof the
assetsperformedby
an issueror sponsor
o Disclose whichentity
determinesthat
those assetsshould
be includedinthe
pool despite
o Provide atabular
presentationof the
pool asset
characteristics
Chosenby the sponsorofthe program
Arranger/structurer
(financial
institution)
Designthe structure of
the program
Designthe structure of
the riskprofile of the
receivablesinorderto
create tranchesand their
sequentialpayments
schedules
Designa creditarbitrage
strategy
Arrangescredit
enhancement
Designa liquid strategy
Designa profitextraction
method
List andmake
arrangementof
counterpartiestotake on
risks
Ensuresthat the
transactionproceeds
througheach step is
closed
Make agreementwithfirst
buyersof the securities
prospectus Disclose the arrangername
and itsformof
organization
Describe the characterof
the arranger business
Describe the arranger
material rolesand
responsibilitiesinits
securitization
Disclose the arranger
relevantfactsits
participationinstructuring
the transactions
Disclose the arrangerother
informationincludingthe
size,type andgrowth
Disclose the arranger’s
experience andthe period
of time thatthe arranger
has beenengagedinthe
securitization
Subscriptionagreement
Agreementbetweenthe
corporationand
investmentbankers
Agreementamong
bankers
Agreementsbetween
investmentbankersand
underwriters,dealersor
QIB
Offeringmemorandum,
prospectus(offering
circular)
Purchase agreement
betweenthe company
and the initial purchasers
Legal opinionsand
Comfortletters
Provisionsrelatedtothe
initial purchase price forthe
securitiesonthe issue date,
subjecttoconditionsrelating
to
o The SPV’slegal status
o Listingandrating of
the securities
Provisionrequiringa
cancellationof asale to
investorsif amaterial
adverse eventoccurs
betweensigningthe
subscriptionagreementand
closingthe securitiesissue
5. 5 | Research conductedby Arthur Mboue
Underwriter
Managers (financial
institution)
Exercise agreementas
firstbuyerof the
securities
If it is a PPM, select
qualifiedinvestors
Market the securitiesto
the investors,brokersand
qualifiedbuyers
prospectus Indicate the underwriter
name and addressand
telephonenumberof its
registeredoffice
Describe the characterof
itsbusiness
List all the typesof
underwritersinvolvedin
thissecuritizationandtheir
duties
Describe the permissible
activitiesandrestrictions
on the activities
Disclose the total amount
of feestobe paid
Provide informationabout
originator’sunderwriting
criteriaforthe assettypes
Disclose the anticipated
schedule forthe offering
and descriptionof market
events
Describe the procedures
by whichthe underwriter
will conductthe offering
and the proceduresfor
transactionsinconnection
withthe offeringwithan
underwriterand
participatingdealer
Agreementbetweenthe
sponsorand
underwriters
Agreementbetweenthe
underwritersanddealers
Provide information
aboutoriginator’s
u8nderwritingcriteriafor
the assettypes
Disclose the anticipated
schedule forthe offering
and descriptionof
material events
Describe the procedures
by whichthe
underwritingwill
conduct the offeringand
the proceduresfor
transactionin
connectionwiththe
offeringwithan
underwritingor
participatingdealers
Agreementamong
underwriters(AAU)
Underwriters
questionnaire and
responses
Numberandtype of
securitieseachmanagerhas
agreedto buy
Paymentandallocationof
the managers’commission
Delegatespowertothe
arranger/leadmanagertoact
on behalf of the syndicate
Auditors
(Accountingfirms,
mostlybig4, kpmg,
PWC, Ernst & Young
and Deloitte)
Provide confirmationof
financial informationin
relationtothe SPV,and
any guarantors,andthe
receivablesthemselves
Involvedinthe latestaudit
reportand financial
statementsof the vehicle
Provide the name of the
auditingfirm
Describe itsmaterial role
and responsibilitiesinthe
securitization
Provide the general
character of its business
and itsactions
Auditingagreement
Discussionwiththe
independentauditor
report
Reportfrom
management
Comfortletters
Addressedtounderwriter
managers
o 1st
at the time of
signingof
subscription
agreement
o 2nd
justbefore
completion
6. 6 | Research conductedby Arthur Mboue
For newlyincorporated
SPV, reporton itsposition
immediatelyfollowingthe
securitization
Provide the due diligence
results(change ornot)
Carry-outthe financial
modelingof the cashflows
Conductand disclose the
resultsof financial analysis
of the collateral
File the required reportto
be includedinthe offering
and disclosure documents
Disclose the auditorreport
Disclose if auditoropinion
isunqualified,qualified,
adverse ordisclaimer
Provide fees,directand
indirectandall the
engagementtobe paid
(fee andexpensestable)
It mustbe dated,signed
and state of certificationof
the leadauditoror firm
SAS59 requiresauditorto
evaluate goingconcernfora
reasonable time with
explanationparagraphif
neededtoenhance
managers’knowledge
o Discussthe degree of
independenceof the
auditorand auditor’s
consentduringthis
assessment
o State reasonsfor the
offering
o Confirmsthe
reliabilityof the
unauditedfinancial
information
The report must
o Be dated
o Be manuallysigned
o Indicate the cityand
state
o Identifythe financial
statementand
reportsthat theydid
cover
o Must followPCAOB
standards
Depositor
(originatoritself or
any financial
institution)
A SPV acts as a depositor
and registrant.
Conveys,assigns,receives,
purchasesandtransfersor
sellsthe pool of assets
(real,personal andmixed,
whereverlocatedand
howeveracquired) or
receivablestothe issuing
SPV
1106 If it is differentfromthe
sponsor,
o Provide its
ownership
structure
o Provide general
character of its
activities
o Discussits
continuingduties
Purchase and
assumption agreement
Purchase price
Manner of conveyance
Warranty provisions
Recourse provisions
Paymentdate
Servicingprovisions
Reversal clause
Agreementwithrespectto
safe deposit
Governinglaw
7. 7 | Research conductedby Arthur Mboue
afterissuance Successionprovision
Securitiesfinance
lawyers (lawfirms
specializedin
financial
transactionsand
securitieslaw)
Ensure a legal efficacyof
the structure
Advise onthe legal and
regulatoryaspectsof the
structure
Advise onthe tax aspects
of the structure
Draft and negotiate the
legal documents andcases
Establishthe relevant
legal entities
Reviewthe corporate
capacityand authority
(includingdelegationof
authority) of eachparty
prospectus Provide name of the law
firmand itsexpertise and
experience relatedtothis
type of securitization
Describe the formmaterial
contractual dutiesinthe
securitization
Provide the nature,terms
and limitationsof its
contractual agreement
Retentionagreement
Legal opinion
Comfortletters
All contractual
agreements
shouldinclude opinionson
o each party’scapacity
and authority
(includingdelegation
of authority) toenter
intoa transaction
o whetherthe
transaction
documentshave
beendutyexecuted
and representlegal
bindingand
enforceable
obligations
o whetherthe
requisite consents
and authoritieshave
beenobtainedand
registrationsmade
timely
o whetherall legal
formalitiesforthe
transferof
receivableshave
beencompliedwith
o whethersecurity
interestare effective
o whetherchoice of
lawand state of
organization
provisionare
effective
o tax treatmentfor
each jurisdiction
Issuer- Special
Purpose Vehicle
(establishedbythe
Thisis a pre-existingor
newlycreatedSPE(mostly
a trust but alsoa LLC, LLP
1107, 10-K Describe thisentityandits
formof organization
Describe itspermissible
almostall agreements Offeringcircular:
termsand conditionsof the
securities
8. 8 | Research conductedby Arthur Mboue
originatorandthe
structurer)
or corporation) forthe
purpose of the
securitization. Itisthe
nucleusof the
securitization. Itissues
securitiesinPPMor public
offeringmarket.
It buysor receivesthemas
a loan
In case of sale,the
originatorwill remove
themfromits legal control
and portfolio
It alsoissuesdebt
securitiestothe investors
to fundthe acquisitionof
beneficial interestrights
activitiesanddiscretionary
activitieswithregardto
the administrationof the
assets
Describe anyassetsowned
or to be ownedbythe
issuingentity
Describe itsboardof
directorsor the like,if
applicable
Describe the capitalization
of issuingentityandthe
amountof anyequity
contributingtothe entity
Describe sale andtransfer
of the pool assetstothe
issuingentity
Describe anyarrangement,
provisions,expensesand
bankruptcy provisions
informationaboutSPV
informationonthe
underlyingassetson which
the securitizationisbased
mustcomplywithlegal
requirementsapplicableto
securitiesofferingsineach
jurisdictionwhere securities
are listedandthe jurisdiction
where the SPV is
incorporatedororganized
Chosenby the SPVleadership
Security Trustee
(professional
corporate trustee)
He isthe guardianof the
trust certificatesissuedto
newownersof securities
Holdscertificatesaccounts
before distributiondate
Makes paymentto
investors
Holdsnote and securities
documents
Holdsand drawson
reserve fund
Advancesonbehalf of
Master servicer,if
necessary
Maintainscertificate
register
1109 Some disclosure relatedto
Trustee mayapplyto them
trust deed Provisionsabout
the securityinterestoverthe
assetsmakingupthe security
package
Securitytrustees
enforcementpowersand
rightsto deal withthe assets
comprisingthe security
package
9. 9 | Research conductedby Arthur Mboue
OverseesMaster
servicer’sperformance
Representsinterestof all
certificate holders
Holdsand reinvests
reserve fundamounts,
payoutexcesstothe
originatororinvestors(it
dependsoncontractual
agreement)
Calculatespaymentsof
certificate holders
Trustee (appointed
corporate trustee)
isappointedtolookafter
the interestsof the
investors.
can holdassetsgrantedto
investorsandbenefit
(includingbeneficial
interests) of covenantand
rightsinthe securitization
on behalf of the investors.
has fiduciaryduty
obligationtowardthe
investorstosafeguardthe
assetspledgedas
collateral.Leadedbya
Master, trusteescan
conferreal and
discretionaryrightstothe
investorsbeneficiariesof
the trust.
1109 Disclose the trustee name,
itsduties,responsibilities
and itsformof
organization
Describe the trustee prior
experience
Disclose anyactionsthat
wouldbe requiredbythe
trustee uponan eventof
default,potential eventof
defaultaswell asrequired
percentage of a classor
classesof ABS thatis
neededtorequire the
trustee totake action
Describe anylimitationson
the trustee’sliabilityunder
the transaction
agreementsregardingthe
ABS transaction
Disclose anycontractual
provisionorunderstanding
regardingthe trustee’s
removal,replacementor
resignationaswell ashow
the expensesassociated
securitytrustdeed
Trust Certificate
SPV’scovenantstopaywhich
runs parallel withthe SPV’s
promise topay inthe
certificatesrepresentingthe
securities
SPV’sfurthercovenants,
representations and
warrantiesforthe benefitsof
the investors
Schedule of termsand
conditionssetout inthe
offeringcircularandthe form
of certificatesrepresenting
the securities
10. 10 | Research conducted by Arthur Mboue
withchangingfromone
trustee toanothertrustee
will be paid
Chosenby the structurer/arranger or trustee ofthe SPVon behalfofthe SPV
Paying agent (major
bank)
Setout agentpowers,
duties
Setout documents
policies concerning
paymentstoinvestors
prospectus Provide the name of the
payingagentand itsform
of organization
Describe the payingagent
material rolesand
responsibilities inthe
securitization
Provide the general
character of its contractual
agreement
Provide itsexperience in
the securitizationand
indicate astatementor
reportincludedattributed
to such experience
includingprioractions
Provide feesandexpenses
tablesindicate toeach
itemandits purpose
Payingagency
agreement
Setsout techniquesfor
paymentstoinvestorsof
principal andinterests
Mechanismto exchange or
replace damagedorlost
certificates
Servicer(alsoacts
somethingas
receivingandpaying
agent,originator
itself or)
Collectingprincipal,
interestandescrowfrom
the borrowers
o Late paymentfees
o Legal document
prepaidfee
o Float
o Otherdue to the
issuer(servicer)
Payingtaxesand
insurance fromescrowed
funds
Monitoringdelinquencies
Workouts/restructurings
Executingforeclosures
1108 Provide servicing
experience of the company
o General
o Relating toassets
of the type being
securitized
Discussmaterial changes in
servicingpoliciesduring
past 3 years
Discussinformationabout
financial condition,if
material
Provide material termsof
servicingagreement
o Advancing
Servicingagreement
Cleanupagreement(if it
alsoplaysan originator
duties)
Main dutyto collectamounts
due underthe receivables
contracts
Procedures andactionsto be
takenagainsttroubled
debtors
Provisionsabouttroubled
debtormanagement
(includingdefaultnotice,
collectiontimeline and
notices,repossessionand
liquidation)
11. 11 | Research conducted by Arthur Mboue
Remittingfeesto
guarantors,trusteesand
othersprovidingservices
In some case including
revolvingstrategy,
investingfunds
temporarilypriortotheir
distribution
Accountingforand
remittingprincipal and
interestpaymentstothe
holdersof beneficial
interestsinthe financial
assets
o Proceduresof
handling
delinquentand
defaultedassets
o Abilitytowaive or
modifyfees
o Abilityto
documentcustody
Provide limitationson
servicer’sliability
Discussback-upservicing
arrangements
Investment
manager (collateral
managerand 3rd
party investment
managementfirm)
The portfolioof
receivablesunderlyingthe
securitizationrequires
active management
o Determine the
assetsmakingup
the portfolioboth
initiallyandonan
ongoingbasis
o Negotiate and
enteragreements
for the
acquisition,
managementand
sale of receivables
o Deal with
valuationsof the
portfoliorequired
by the SPV
o Complywith
reporting
requirements
relatingtothe
assetportfolio
Prospectus,
FWP
Provide the name of the
investmentmanagerand
itsform of organization
Describe the investment
managermaterial roles
and responsibilitiesinthe
securitization
Disclose there any
restrictiononthe manager
duties
Disclose general character
of itsbusinessactivities
Provide the nature and
termsof itscontractual
agreement
Provide total amounts
fees,directandindirectto
be paid
Investmentmanagement
agreement
Vendortradingpartner
agreement
Strict eligibilityguidelinesin
respectof the assetsthat
may formpart of the
portfoliowhichthe
investmentmanagermust
complywith
eventstriggeredthe
replacementof the manager
compliance withstrict
investmentmanagement
reportingrules
12. 12 | Research conducted by Arthur Mboue
Paidon a percentage basis
plusotherdiscretional
incentive
Can be requiredtoholda
juniortranche inorderto
share riskand raise
confidence andvalue of
the securitization
Collateral
administrator
(independent3rd
party,a bank)
agenthiredto administer
the portfolio
Maintainsa database
detailingthe contentof
the portfolioanduses to
o Run performance
tests
o Provide reportson
the underlying
assets
o Obtainvaluations
of the underlying
assets
o Calculate payment
and receipt
requirements
o Openand
administerbank
accounts
o Directpayments
to be made
accordingto the
transaction
documents
Prospectus,
Form S-3,
FWP
Disclose the name of the
collateral administrator
and itsform
Describe the collateral
administratormaterial
contractual agreement
Disclose termsof any
administrationagreement
regardingissuingentity
Provide itsexperience in
the securitization
Collateral Administration
agreement
Poweranddutiesof the
collateral administratorand
the collateral manager
provisions
Theircompensationsclauses
Termsof theirduties
provisions
Termination,resignationand
appointmentof successor
provision
Representation and
warrantiesprovision
Governinglawclause (‘this
agreementshall be
constructedinaccordance
withand thisagreementand
any mattersarisingoutof or
relatinginanyway
whatsoevertothis
agreement,incontract,tort
or otherwise,shallbe
governedbythe lawsof the
State of…’)
Bankruptcynonpetition,
limitedrecourse clause
Assignmentof issuer’srights
provisions
Jurisdictionclause
signatures
13. 13 | Research conducted by Arthur Mboue
Swap counterparty
(Wall Streetfirm
specializedin
derivatives)
It can serve as eithera
brokeror a dealer
As a broker,thisbank
matchescounterparties
but doesnotassume any
of the risksof the swap
transactions
As a dealer,the swapbank
acceptseitherside of the
currencyand thenlater
reducestheirrisksor
matchesit with
counterparty
It can line upbehindon
the sequential payment
schedulesagreementwith
the investors asa residual
classowner
A swapis a derivative
whentwocounterparties
agree to a contractual
agreementtoexchange
cash flowsatperiodic
intervals
1115 Disclose the name of the of
the swap counterpartyor
calculationagent
Disclose the name of the
derivative counterparty
Disclose whetherthe
significance percentage is
lessthan10%, at least10%
but lessthan20% or 20%
or more
Describe amaterial
provisionsregarding
substitutionof the
derivative counterparty
Disclose itsdetermination
of anyAmountof
derivatives
Disclose,insertandfile the
swapagreementasexhibit
Disclose total fees,direct
or indirecttobe paid
File the agreementrelating
to the derivative
instrumentasan exhibit
Swapagreement
documents
o General
o Early
termination
o Taxation
o Rating
downgrade or
withdrawal
o Creditsupport
agreement
o Interestdeferral
o Transfers
Provisionaboutdetailedrisks
and eventsleadingtoa swap
Provisionaboutcredit
defaults,swaparrangement,
swapcounterpartyand
premiumpayment
Provisionsaboutrisksharing
arrangementsinclude price
adjustmentclause,neutral
zone,outside neutral and
zerocost insurance clauses.
Monoline Insurer
(Monolineinsurance
company and large
insurance
specialized as
providerof financial
obligation,credit
enhancers)
An insurance policywitha
monoline andirrevocable
agreementtopayinterest
and principal atthe
originallyagreedschedule
payments
Monoline insurersaimto
minimize the riskby
o Acceptingonly
selected
investmentgrade
program
o Usinga deterring
toughanalysisand
1114 Disclose the name of such
enhancementproviderand
the nature of businessof
the monoline insurer
Disclose anyactionsthat
wouldbe requiredbythe
monoline insureruponan
eventof defaultand
potential eventof default
Disclose anylimitationof
thiscontractual agreement
Disclose anycontractual
provisionorunderstanding
regardingitstermination,
Insurance policy
agreement
Commonpolicydeclaration
Policynumber,effective
date,expirationdate
Name of the insurance
companyand broker
Premiumforeachcoverage
Commonpolicycondition
Cancellationterms
Changes
examinationof booksand
records
inspectionsandsurvey
transferrights
14. 14 | Research conducted by Arthur Mboue
due diligence
process
o Maintaina
diversified
portfolio
In evaluatingthe overall
creditworthinessof the
monoline,ananalysis
mustevaluate the adverse
change in cash flow
waterfall andthe
sufficiencyof the
monoline cashreserves
and capital,ratingactivity,
whetherthe monoline is
indefault,inthatred zone
or defaultappears
imminentandthe
potential forintervention
by an insurance orother
entities
resignationorreplacement
Describe the methodused
for calculation,coveringa
least5 fiscal years
o Aggregate
principal amount
of all guarantee
o Reserve ratio
o Recoveryrate
o Loss rate
o Claimrate
coverage parts
Clearinghouses
(Depositary Trust&
clearing corporation
or Fedwire)
Provide clearingand
settlementservicesforthe
securities
prospectus Disclose the name andthe
nature of the businessof
the clearinghouse
Identifyeachclearing
house usedandany
minimumamountthat
mustbe assignedasa
conditionof the
transaction
Discussany arrangement
to keepthisamount
outstanding
Disclose anyrightsrelated
to any excesscash
Disclose anyrequirement
inthe transaction
agreementstomaintaina
Insurance clearinghouse
service (ICS) agreement
Vendortradingpartner
agreement
Fedwire testinginstruction
o Institutionname
o ABA number
o Testcontact name
o Type of test
o Teststart date
Fedwire FundandFedwire
securitiesservice form(3rd
party service arrangement,
operatingcircular)
15. 15 | Research conducted by Arthur Mboue
minimumamountof
excesscashflowor spread
fromor retainedinterest
in,the transactionand any
actionsthat wouldbe
requiredorchangesto the
transactionstructure that
wouldoccur if such
requirementswere not
met
Rating agencies
(Standardand
Poors,Moody’s
investorservices,
Fitchratingsservice
or Duff&Phelps
CreditratingCo)
Ratesthe securitiesto
opinion whetherthe SPV
has a strong or weak
capacityto pay interest
and principal whendue
The rating isprovided
afterdetailedstatistical
analysisonthe probability
of defaultandthe effects
of suchdefaultonthe
abilityof the SPV to
complywithitspayment
obligationsinrespectof
the securities
1120 Disclose whetherthe
issuance orsale of any
classof offeredsecuritiesis
conditionedonthe
assignmentof acredit
ratingagencieswouldbe
useful informationto
investors
Identifyeachratingagency
that isusedand the
minimumratingthatmust
be assignedasa condition
of the transaction
Discussany arrangement
to have that rating
monitoredwhilethe ABS
are outstanding
Include astatement
explainingthatthe ratingis
not a recommendationto
buy,sell orholdsecurities
Disclose if the arrangerand
sponsorhas obtaineda
preliminaryratingtothat
classof ABS
Partnershiportrust
Deedor certificate of
incorporation
Copyof the Board
resolutionauthorizing
the rating
Copyof the Bylaws
Copyof the projectto be
rated
Copyof all financial
statementsforthe last3
fiscal years
Additional documents
underrequestfromthe
ratingfirm
CIKnumber
Usually,if the issuerdoesnot
requestthe rating,Moody
and S & P will simplydothe
ratingon the basisof the
publiclyavailable
informationanddiscloseitto
the public
Fitchand Duff Phelpshave
onlydone solicitedratingof
any type of securities
Fees
o Onetime fee to
requestrating
anytime
o S&P ($25,000 to
$125,000)
o Moody’s(~$
130,000)
Listing agent(law
formor company
specialized inlisting
Researchandlistthe
companyor its shareson
the national securities
prospectus Provide the name andthe
nature of the businessof
the listingagent
Draft Form 8-A Listing
applicationfor
debenture
In lieuof Form8-A,other
formscan be usedincluding
Form 10
16. 16 | Research conducted by Arthur Mboue
inexchange) exchange
Setout the detailsof the
listingstrategies
Disclose towhatextent the
listingagentrelyonthe
company’saudited
financial reports
Disclose if the listingagent
didrequestrelated
shareholdersdata
Disclose of the listingagent
didfindthe securitizer’s
resourcessufficientto
meetitsobligations
Disclose whetherthe
listingagentdidfindany
conflictof interestarising
fromthe securitizing
transactions
Disclose whetherthe
listingagentdidverifyany
accuracy of the
transactions
Disclose anylimitations
arisingfromthe listing
agent’scontractual duties
Statementof
understanding
Policiesandprocedures,
instruction
Listingapplicationfor
AmericanDepositary
Receipt
Rule 315 letter
o 8 copies,one is
manuallysigned
Stock exchange
(NYSE,NASDAQ,
JapanExchange
group,Euronext,
LondonStock
exchange group,
Hong Kongstock
Exchange,TMX
(Canada),Deutshe
Bourse)
Servesasa global
platformtotrade
securities withelectronic,
anonymous andhybrid
trades
Maintaina bodyof rules
to regulate itsmembers
prospectus Provide the name andthe
nature of the national
securitiesexchange
Disclose if youwill notlist
the securities
Disclose where the trading
will be developed
Copyof Charter
Copyof By laws or
Partnership,operating
agreementorTrust deed
Descriptionof
registrant’ssecuritiesto
be registered
Certifiedcheckpayment
of the registrationfee
Copiesof the latest
definitionof proxy,
annual reportto the
shareholders,annual
reportfiledtoSEC and
quarterreportsfiledto
Afterthe program:the
companymustfile 2 copies
of final listingapplication
17. 17 | Research conducted by Arthur Mboue
SEC
Copyof Board resolution
authorizingthe
securitization
(certificate of secretary
as to adoptionof
resolutions)
Copyof shareholders
resolutionauthorizing
the issuance of securities
for listing
Copyof specimen
certificate (if needed)
Copyof goodstanding
certificate from
jurisdictionof the entity
Letterto NYSE fromthe
companyGeneral
counsel
Copyof thisletterfor
filingstamp(along
addressedstamped
envelope)
Liquidityfacility
provider
Setsout the detailsof the
liquiditysupportfacility
Thisis a lenderunder
short termbasisin
relationtocertain
tranchesof the issued
securities
prospectus Disclose the name of the
liquidityfacilityprovider,
itsbusiness andits
material rolesinthe
securitization
Provide the nature and
termsof itscontractual
agreement
Disclose anylimitationson
the liquidityfacility
providerunderthe
provideragreement
regardingthe ABS
transaction
Provide asummary
Liquidityagreement Detailedof the standardloan
agreementtermsand
conditionsincludingthe
amountof the loanfacility
and the eventsleadingto
theiruses
For tax reason,the
jurisdictiondoesmatter
18. 18 | Research conducted by Arthur Mboue
financial informationof the
liquidityprovider
Disclose if there isany
custodianintermediate
transferorandliquidity
providersinthe secondary
markets
Disclose anymaterial
termsof anyagreement
withthat partyregarding
the ABS transaction
Credit
enhancement
provider
Use as a financial
technique toimprove the
creditworthinessof the
issuedsecurities
Guaranteespaymentof all
contractual cash flow
waterfall withinvestors
for interventionwhenthe
defaultappearsimminent
prospectus Describe externaland
internal enhancement
For external enhancement
providers
o Describe the
providerandits
business
o Summaryfinancial
informationfor
10% provider
o Auditedfinancial
statementfor20%
providers
Creditenhancement
agreement
Subordinationclause
Reserve accountsclause
Demandnotes clause
Lettersof creditclause
Suretybondclause
Guaranteedinvestment
contract clause
Swapsor otherinterestrate
protectionagreement
Repurchase obligations