| Accelerated Amortization Event |
It is Provision
in a loan or mortgage agreement that allows a borrower to increase the monthly installment amount
to pay off the obligation before its specified settlement date.
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| Acceleration |
A contract
stating that the unpaid balance becomes due and payable if specific actions transpire, such as
failure to make interests payments on time. Allowing a creditor to call the debt if certain
events occur. A provision in a bond indenture that in the event of default allows the trustee
or the holders of 25% of the principal amount of the outstanding issue to declare all of the
principal and interest immediately.
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| ACSM - Alternative Coupon Satisfaction Mechanism |
The concept
of cancellation of regular coupons and giving an alternative coupon to replace with an alternative
payment. As to avoid Default.
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| Adjustable Rate Mortgage |
Adjustable
Rate Mortgage is a mortgage loan where the interest rate on the note is periodically adjusted
based on various indices. Some of the indices are Treasury (CMT) securities, Cost of Funds Index (COFI),
European Interbank Offered Rate (EURIBOR), and the London Interbank Offered Rate (LIBOR).
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| Agency Bond |
A bond issued by two types of
entities
• Government Sponsored Enterprises (GSEs), usually federally-chartered but privately-owned
corporations; and
• Federal Government agencies which may issue or guarantee these bonds - to finance activities
related to public purposes, such as increasing home ownership or providing agricultural assistance.
Agency bonds are issued in a variety of structures, coupon rates and maturities. Each GSE and
Federal agency issues its own bonds, with sizes and terms appropriate to the needs and
purposes of the financing.
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| Amortizing Payment |
Bond issuer
starts paying principal along with coupon payments.
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| Asian Change in Law |
Asian Change in Law means
that, on or after the Issue Date of any series of Notes due to the adoption of or any change in any applicable
law or regulation (including, without limitation, any tax law), or due to the promulgation of or any change in
the interpretation by any court, tribunal or regulatory authority with competent jurisdiction of any applicable law
or regulation, the Issuer determines in its sole discretion that it has become illegal for the Issuer and/or any of
its Affiliates to hold, acquire or dispose of Hedge Positions relating to the Notes or the Issuer or any of its
Affiliates will incur a materially increased cost in relation to the performance of the Issuer's obligations under
the Notes.
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| Asian Hedging Disruption |
A Hedging
Disruption Event shall occur if the Issuer determines that it is or has become not reasonably
practicable or it has otherwise become undesirable, for any reason, for the Issuer wholly or
partially to establish, re-establish, substitute or maintain a relevant hedging transaction
it deems necessary or desirable to hedge the Issuer's obligations in respect of the
Securities.
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| Asian Increased Cost of Hedging |
Asian Increased
Cost of Hedging means that the Issuer and/or any of its Affiliates would incur a materially increased
(as compared with circumstances existing on the Issue Date) amount of tax, duty, expense or fee to
• Acquire,
establish, re-establish, substitute, maintain, unwind or dispose of any transaction(s) or asset(s) it deems
necessary to hedge the equity price risk of entering into and performing its obligations with respect to the Notes,
or
• Realize, recover or remit the proceeds of Hedge Positions or the Notes between accounts within the
Affected Jurisdiction or from accounts within the Affected Jurisdiction to accounts outside the Affected
Jurisdiction.
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| Asset Exchange |
Asset
Exchange is a kind of bilateral agreement under which entities agree to swap assets
amongst them.
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| Asset-Backed Securities |
Securities
collateralized by assets such as car loans and credit card receivables, which can be seized if
the debtor defaults. ABS is created by the process of securitization whereby banks pool types
of loans and use them as collateral or security against a
bond issue.
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| Auction Call Redemption |
The trustee,
at the expense of the Issuer and with the assistance of the Collateral Manager, acting on behalf of
the Issuer, will conduct an auction of the Collateral The Trustee will deposit the purchase price
for the Collateral Securities in the Collection Account, and the notes will be redeemed and, to the
extent funds are available immediately following the relevant Auction
Date.
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| Auto Early Redemption Event |
The AUTO-CALLABLE
are Notes distributing a high periodic coupon if at the end of each predefined period all the underlings
are higher than a Coupon Trigger Level, no coupon is paid otherwise.
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