May 4, 2009
The following summarizes the change made to the MLSA from the April 21, 2009 posting:- Describes how the Principal Receipts will be applied under certain circumstances with respect to any Loan that is secured by Items of Collateral with respect to which the issuer of such Collateral has a Redemption Option.
(In rare cases the New York Fed may consider accepting ABS where the issuer has an option to redeem such ABS if, in its judgment, the option does not increase risks to the New York Fed and the ABS otherwise meets the collateral eligibility criteria. No borrower may pledge ABS with a redemption option (other than pursuant to the servicer’s clean-up call) without prior consultation with and acceptance by the New York Fed. The New York Fed will publish further guidance.)
