Depending upon the individual requirements of the transaction, we bring in qualified external service providers.

BORROWER OBLIGATOR

OBLIGOR is a person who owes a legal obligation to another person. In the context of financing arrangements, an obligor is usually a debtor (for example, a BORROWER) or someone who has given security or a guarantee for the payment of a debt or the performance of an obligation. The BORROWER/OBLIGATOR or is an individual or entity that is legally required through a contractual commitment to provide one or more payments. Read more…

ORIGINATOR/SPONSOR

The ORIGINATOR either has or creates the underlying assets, i.e. transaction receivables to be securitized. At the end of the transaction, the ORIGINATOR profit, if retained and subject to any losses to the extent agreed by the ORIGINATOR in the transaction is paid off. An ORIGINATOR is typically an institution that was involved, either itself or through its related entities, directly or indirectly, in the creation and underwriting of the obligations involved in the securitization transaction. Read more…

INVESTOR

An INVESTOR is any person or other entity (such as a firm or mutual fund) who commits capital with the expectation of receiving financial returns. INVESTORS utilize investments in order to grow their money and/or provide an income during retirement, such as with an annuity. INVESTORS in securities subscribe to the securities issued by the S.P.V. and are therefore entitled to receive principal repayments, interest and, if foreseen in the Term Sheet and other constitutional documents, profit participation based on the cash flows generated by the underlying securitization pool. Read more…

ASSET SERVICER

ASSET SERVICING is an administration service provided by a central securities depository or CUSTODIAN in connection with the custody and/or safekeeping of financial instruments (e.g. the processing of corporate events or the handling of taxes). (European Central Bank) In the context of securitization, ASSET SERVICING describes the process of collecting the payments from the underling BORROWERS in the exposure pool and transferring the collected funds to the S.P.V Read more…

TRUSTEE

A security TRUSTEE is a person or corporate entity which holds security for the benefit of others. The security involved may comprise a charge over property, a debenture over the assets and undertaking of a company, a bank account charge or a combination of other types of security for the performance of obligations. The TRUSTEE's primary fiduciary duty is to preserve the interests of the INVESTORS involved in the purchase the securities issued by the S.P.V.. The nature of the TRUSTEE‘s duties is specifically set forth in the trust agreement. The TRUSTEE usually subcontracts the administration and servicing of the securitized exposure pool back to the ORIGINATOR, an affiliate of the ORIGINATOR a third-party provider. Read more…

ASSET OR COLLATERAL MANAGER

COLLATERAL MANAGEMENT is the process of two parties exchanging assets in order to reduce credit risk associated with any unsecured financial transactions between them. Such counterparties include banks, broker-dealers, insurance companies, hedge funds, pension funds, ASSET MANAGERS and large corporations Read more…

CREDIT ENHANCEMENT PROVIDER

A company that is raising cash by issuing a bond or security may use credit enhancement to lower the interest rate it must pay to INVESTORS. If the company can get a guarantee from a bank to assure a portion of the repayment, the rating on the bond issue might improve from BBB to AA. Read more…

CREDIT RATING AGENCIES

A credit rating agency, also called a ratings service, is a company that assigns credit ratings, which rate a debtor's ability to pay back debt by making timely principal and interest payments and the likelihood of default. An agency may rate the creditworthiness of issuers of debt obligations, of debt instruments, and in some cases, of the servicers of the underlying debt, but not of individual consumers. Read more…

REGISTRAR

A REGISTRAR is an institution, often a bank or trust company, responsible for keeping records of bondholders and shareholders after an issuer offers securities. When an issuer needs to make an interest payment on a bond or a dividend payment to shareholders, the firm refers to the list of registered owners maintained by the REGISTRAR. Read more…

CALCULATION AND REPORTING AGENT

This party to the securitization transaction calculates and reports the distribution of interest, principal repayments and profit participation due to the INVESTORS and other creditors. The allocation of funds available from the exposure pool is governed by the cash flow waterfall. Generally, the following documents are submitted to the management body and INVESTORS. Read more…

PAYING AGENT

PAYING AGENTs are usually banks, designated to make dividend, coupon, and principal payments to the security holder on behalf of the issuer. In a securities issue, for example, the security’s indenture will name a PAYING AGENT, responsible for making interest and principal payments. The terms and conditions set out in the securitization documents specify the distribution dates on which interest and principal repayments a e to be made to the INVESTORS. Read more…

ARRANGED UNDERWRITER

An UNDERWRITING AGREEMENT is a contract between a group of investment bankers who form an underwriting group or syndicate and the issuing corporation of a new securities issue. The purpose of the UNDERWRITING AGREEMENT is to ensure that all of the players understand their responsibility in the process, thus minimizing potential conflict. Read more…

ASSET BACK-UP SERVICER

Securitization is a transaction where fund is raised backed by only assets assigned with the ORIGINATOR’s credit risk being separated from them. Normally, the ORIGINATOR continues to receive collected money as a servicer after assignment of receivables. In a scenario where the servicer goes bankrupt, it is necessary to secure smooth receipt of monies collected from receivables beforehand. Read more…

CUSTODIAN

A CUSTODIAN is a financial institution that holds customers' securities for safekeeping in order to minimize the risk of their theft or loss. A CUSTODIAN holds securities and other assets in electronic or physical form. Read more…

LIQUIDITY PROVIDER

LIQUIDITY PROVIDER is essentially synonymous with market maker. Their function is to facilitate trading in securities and other financial instruments by providing a pool of shares, so that buyers and sellers can trade easily without having to locate and deal with other individual traders. Read more…

AUDITOR

The term audit usually refers to a financial statement audit. A financial audit is an objective examination and evaluation of the financial statements of an organization to make sure that the financial records are a fair and accurate representation of the transactions they claim to represent. Read more…

TAX AND ACCOUNTING ADVISOR

A tax advisor is a financial expert with advanced training and knowledge of tax accounting and tax law. The services of a tax advisor are usually retained in order to minimize tax payable while remaining compliant with the law in complicated financial situations. Tax advisors can include CERTIFIED PUBLIC ACCOUNTS, tax attorneys, enrolled agents, and some financial advisors. Read more…

LEGAL ADVISOR

Considerable legal work is required to ensure that a securitization transaction meets the requirements of the ORIGINATOR and the INVESTORS while also complying with all regulations. LEGAL ADVISORs will typically. Read more…