FedNor's $3-million reserve fund
will act as a safety net in the event an approved, high-risk business loan cannot be repaid, Desmarais-Santi says.
Losses in loan groups one through three are primarily supported by a single reserve fund
The Valley city's planned reserve fund
in the LAFCO study was $6.
Also, he said, the city's economy continues to improve and will be getting extra revenue this year that will go into the reserve fund
The authority plans to solve this problem by replacing a portion of the debt service reserve fund
requirement with a letter of credit (LOC) and using the released funds for the January 2007 payment.
5 million in reserve funds
to bond investors and sets up provisions for paying investors if money comes in in the future.
1 million senior series A-1 and A-2 reflect the quality of the student loan portfolio, a minimum 2 percent reserve fund
, the subordinated series B notes, and servicing provided by Education Loan Services, Inc.
As of June 1, 2006, the debt service reserve fund
It is Fitch's view that the sufficiency of the reserve fund
results in a long-term credit risk to bondholders that depends solely on UBS' obligation to make a final termination payment.
The 'A' rating on classes C-2 through C-6 primarily reflects the credit enhancement provided by the two reserve funds
, with the reserve fund
in the case of loan group 1 being adequate to rate class A-1 an 'AA-'.
The 'AAA' rating reflects the reserve funds
as well as the additional credit enhancement provided to classes A-1 through A-7 by the subordination of the related class B certificates, with the reserve fund
in the case of classes B-1 and B-4 being adequate to rate both A-1, B-1, A-4 and B-4 'AAA.
The rating also reflects the sufficient level of Authority contribution to cover costs of issuance and the initial deposits to the following accounts: an Escrow Reserve Account to cover a portion of principal and interest payments on certain classes of certificates; a Principal and Interest (P&I) Reserve Fund
as a reserve for payment of principal and interest on all classes of certificates; a FNMA Reserve Fund
for payment of principal and interest on those certificates collateralized by FNMA certificates; and a Subsidy Escrow Account with advance funding of three months of mortgage interest rate subsidies.
Additional support for the bonds is available from an interest reserve fund
initially equal to three months interest on the original principal amount of the bonds until such amount is equal to six months interest on the outstanding bonds, and thereafter remains equal to six months interest payable on the bonds.