The VPRN will amortize in conjunction with the collateral.
To the extent that the trust cannot obtain adequate advances from the VPRN on a targeted final distribution date sufficient to pay out the class of notes scheduled to mature in full, the class A notes will begin to amortize sequentially.
The structure may return to drawing on the VPRN on the next succeeding targeted distribution date, provided all classes of notes due to be paid on previous targeted distribution dates are retired.
Since the retail auto installment sales contracts earn interest at a fixed rate and the class A-1 asset-backed notes, class A-2 asset-backed notes, asset-backed certificates and VPRN accrue interest at a floating rate, the trust entered into four swaps with Citibank N.
In the event that the VPRN swap is terminated and a suitable replacement is not obtained, the outstanding VPRN will convert to a fixed rate instrument.
VPRN -- creates multi-protocol VPNs via the Internet; -- VPT -- uses VPN technology to assure FR and ATM service availability and optimizes trunk bandwidth to ensure SLA performance even during periods of heavy congestion; -- VIPR -- extends the enterprise private IP environment over public network services by creating virtual routing environments for each subscriber.
VPRN, VPT and VIPR work with the Navis(TM) family of network and service management products -- a key element of Ascend's MultiVPN strategy -- to enable the service provider and enterprise with integrated private and VPN management.