May 5, 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 (other than pursuant to a clean-up call) 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 a clean-up call) unless the ABS issuer has consulted with the New York Fed and received acceptance of the redemption from the New York Fed. The New York Fed will publish further guidance.)
