Capitalised and underlined terms are defined elsewhere in the Glossary.
There are several terms in the glossary that have similar or conflicting interpretations. For ease of use, certain terms are used consistently throughout this glossary as follows:
Obligor – the person, Debtor or borrower liable in respect of the Receivables. The term Obligor is used throughout, rather than borrower, because it applies to all Receivable types, not just Loan Receivables.
Receivable - a contract under which the Obligor owes Principal and Interest on its Debt to the lender. Within a Securitisation, the Receivable is an Asset of the SPV. Examples typically include Mortgage Loans, other personal or corporate Loans, Leases, and hire purchases.
For the purposes of this glossary, Receivable will be used to describe the Loan, Lease, hire purchase or other financial contract whose cash flows underlie the Securitisation.
Asset - An item of value that can be converted to cash, and may generate a cash flow. In a Securitisation transaction, the Assets comprise the Receivables that generate cash flows, and technically also include any other Assets owned by the SPV, such as cash in Reserve Accounts.
Assets are often called many other names in a Securitisation – Collateral, Pool, Receivables, or securities. For the purposes of this glossary, Assets will refer to the Receivables AND other cash reserves available to the Securitisation.
Debt Security - A written promise to pay a stipulated sum of money to a specified party under conditions mutually agreed upon and secured by Collateral. Bonds, notes, and any other forms of securitised Debt issuance, are referred to as Debt Securities.