All noteholders are afforded protection through the application of the covenants
set out in the Series Notice.
Due to the relative ranking of the class of notes and application of the Payment Waterfall, a key covenant affording protection to B Class Noteholders is:
Balance of subordinated C Class Notes => 10% outstanding balance B Class Notes.
Access to a Loss Reserve equal to at least 2 x Expected Loss
A Loss Reserve is maintained by the Trustee.
Importantly, it is the Trust Managers intention to continue working with its insurers to broaden the scope of the insurance policy so that it covers a large % of the Fund’s asset origination activities. To the extent the insured assets of the Fund are in excess of the A Class Notes outstanding, then this position will afford further protection to B Class Noteholders.
Assets of the Fund are applied in accordance with the Waterfall provisions defined in the Series Notice.
Rank after obligations to A Class Noteholders and ahead of all other obligation of the Fund.
9.00% per annum, payable monthly on 10th business day of the month.