medium · Asset-Backed Securities abs-core
What is the purpose of a 'Non-Consolidation Opinion' in an ABS deal?
- To confirm that the servicer has the right to use the originator's internal office software.
- To formally prove that the loan pool is diversified across more than fifty different U.S. states and territories.
- To state that a court would not combine the SPE's assets with those of the originator in a bankruptcy.
- To guarantee that the resale or trade-in price of the cars in the pool will never decrease at all over time.
Sign up free to see the explanation and track your rank →
More Asset-Backed Securities abs-core practice
- Which vehicle was specifically created by the Tax Reform Act of 1986 for this asset class?
- What is the most likely tax structure?
- Given the real estate collateral, which tax vehicle is standard for this multi-class trans
- In a two-step auto-loan securitization, the originator first… — What is the principal lega
- Under ASC 860, which condition must be met for a transfer of receivables from an originato
- Why does it covenant NOT to incur additional debt?
- Why can that legal isolation support cheaper funding than the originator's unsecured debt?
- Why is 'Bankruptcy Remoteness' a core requirement for an ABS Special Purpose Entity (SPE)?