Closing Date

This can refer to the settlement of a Receivable or the issuing of Debt Securities. It is the date on which:

• the physical Asset underlying a Receivable contract is sold, ; or
• the issuance of a Debt Security becomes final

and the new owner/investor takes possession. It is at this time that the Obligor/Issuer takes on the Receivable or Debt Security obligation and pays all closing costs. In the case of an Asset sale, it is also the date that the Obligor receives Title from the Seller. Also referred to as Settlement Date.

Here are some examples of closing dates in securitisation:

• The closing date for a mortgage-backed security (MBS) transaction might be set for 30 days after the terms of the transaction have been agreed upon.
• The closing date for a car loan securitisation transaction might be set for 60 days after the terms of the transaction have been agreed upon.