The Senate however rejected the proposed definition of "asset-backed security" used in the final House Bill in favor of the alternative definition of Exchange Act ABS, which notably does not include any language that would expressly expand its meaning to include lease-backed ABS to the extent dependent on the sale (or other disposition) of the leased asset for repayment.
Multiple input methods include a large capacitive touch-screen, trackball, and large QWERTY keyboard.
You have, no doubt, heard about Self-Liquidating (Arbitrage) Loans for years.
You may have tried to get one, or you be trying to get one now.
The presence of any meaningful dependence on additional cash flows that are contingent on the success of future business activities (such as the level of active management required for a Structured Aircraft Portfolio Transaction, as described above) is inconsistent with that meaning of "self-liquidating", and therefore we do not believe that the leases backing a typical Structured Aircraft Portfolio Transaction are "self-liquidating".
The Issuer finances its acquisition of the portfolio of aircraft through the issuance of one or more classes of debt securities and, in many cases, a sale of its residual (or equity) interests to a third-party purchaser in the form of a profit participating note (e.g., an E note).