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 SecuritisationCollateral, 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 Security.

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  • Rule 144A of the US Securities Act enables Debt Securities to be sold without registration with the US Securities and Exchange Commission. This is subject to the condition that offers may not be made to persons other than qualified institutional buyers.
    Rule 144A was implemented in order to induce foreign companies to sell securities in the US capital markets, and is one of the key offer types that Australian Securitisation Issuers use to issue into the US market.
    Rule 144A issues are denominated in US dollars.
  • A
  • Average Annualised Percentage Rate - also known as the ‘true rate’ or Loan comparison rate. The AAPR is the average Interest rate payable over a seven-year period for a given Loan amount including all upfront fees, ongoing fees, Interest rate (and a revert to rate for the case of fixed Term, introductory and honeymoon Loans) and the Interest payable on that Loan amount over that period. Not included in the AAPR are government fees, exit/disCharge fees, service fees (e.g. redraw, internet usage fees) and any other fees that are not always applied.

  • Australian Accounting Standards Board - an Australian Government agency under the Australian Securities and Investments Commission Act 2001. The functions of the AASB are: to make accounting standards and participate in the development of a single set of accounting standards for worldwide use.

  • Asset-backed Commercial Paper - ABS issued in the form of short-dated Discount Debt Securities, rather than the typical Coupon-bearing Debt Securities that underlie a Securitisation. The cash flow from a pool of Assets is used to repay the ABCP Face Value on maturity.

  • B
  • The entity that will administer and service the Receivables portfolio in the event that the Servicer Defaults, resigns or is removed. Back-up servicing arrangements can be 'cold' (the Servicer and Backup Servicer do not regularly share data or system information), 'warm' (Servicer and Backup Servicer systems are generally aligned and data may be shared regularly) or 'hot' (Servicer and Backup Servicer systems are generally run in parallel).
  • C
  • A party responsible for calculating the amount owed by the parties to a Swap arrangement.
  • N
  • Gross Defaults less Recoveries received for those Receivable written off.
  • O
  • The process of preparing, submitting and evaluating a Receivable application; generally includes a credit check, verification of employment and a property appraisal.