medium · Asset-Backed Securities asset-nuances

If a dealer defaults in a DFP trust after the manufacturer has gone bankrupt, who typically manages the 'Repossession and Liquidation' of the vehicles?

1. The backup servicer or a designated liquidation agent appointed by the Indenture Trustee.
2. The manufacturer's own bankruptcy-court trustee handles the process instead.
3. Class A bondholders must personally travel to each dealership and physically collect the vehicles.
4. The local police department in the dealer's jurisdiction handles the repossession of vehicles.

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