easy · Asset-Backed Securities asset-nuances

If a credit card master trust experiences an 'early amortization event', what is the immediate consequence for a series in its revolving period?

1. The originator is generally required to buy back the entire pool of receivables outright at par.
2. The revolving period terminates, and all allocated principal collections are used to pay down bondholders.
3. The interest rate on all outstanding bond classes is doubled at once to compensate investors for the added risk.
4. The trust is legally dissolved at once, and the cardholders owe nothing further on their outstanding card balances.

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