International Finance and Accounting Handbook

21 • 27

III. Cash Flows Anticipated at Time of Securitization

A. Loan Cash Flow

Cash

Interest at

Scheduled

Ending

Year Ending December 31,

Beginning Balance

Credit Losses

15%

Principal

Prepayments

Balance

Total Cash

_______________________

__________________

_______________

_____________

_____________

_______________

_______________

______________

(A)

(B)

(C)

(D)

(E)

(A) – (B) – (D) – (E)

(C) + (D) + (E)

20X1

$

1,000.00

10.00

$

148.50

$

148.50

$

17.00

$

824.50

$

314.00

20X2

824.50

10.00

122.18

165.30

13.14

636.06

300.61

20X3

636.06

10.00

93.91

183.31

9.00

433.75

286.22

20X4

433.75

10.00

63.56

201.77

4.54

217.44

269.87

20X5

217.44

10.00

31.12

207.44

—

—

238.56

_______________

_____________

_____________

_______________

______________

$

50.00

$

459.26

$

906.32

$

43.68

$

1,409.26

_______________

_____________

_____________

_______________

______________

_______________

_____________

_____________

_______________

______________

B. Cash to Senior Interest

Interest at

Year Ending December 31,

Beginning Balance

Principal (1)

6%

Ending Balance

Total Cash

_______________________

__________________

_______________

_____________

_____________

_______________

(A)

(B)

(C)

(A) – (B)

(B) + (C)

20X1

$

900.00

159.66

$

54.00

$

740.34

$

213.66

20X2

740.34

169.24

44.42

571.11

213.66

20X3

571.11

179.39

34.27

391.72

213.66

20X4

391.72

190.15

23.50

201.56

213.66

20X5

201.56

201.56

12.09

0

213.66

_______________

_____________

_______________

$

900.00

$

168.28

$

1,068.28

_______________

_____________

_______________

_______________

_____________

_______________

(1) Each period principal represents the payment on the principal for a $900 investment based on 5 yr, constant payment and con

stant 6% interest rate.

There is no bullet payment assumed.

C. Subordinated Interest

Fair Value

Cash to

of Subordinate

Cash Flow to

Servicing

Cash to

Subordinate

Interest at

Year Ending December 31,

SPE from Loans

Paid by SPE

Senior Interest

Interest

18.00%

_______________________

__________________

_______________

_____________

_____________

_______________

(A)

(B)

(C)

(A) – (B) – (C)

20X0

$188.62

20X1

314.00

$20.00

$213.66

$80.34

142.23

20X2

300.61

16.49

213.66

70.47

97.36

20X3

286.22

12.72

213.66

59.84

55.05

20X4

269.87

8.68

213.66

47.54

17.42

20X5

238.56

4.35

213.66

20.55

—

__________________

_______________

_____________

_____________

$

1,409.26

$

62.24

$

1,068.28

$

278.74

__________________

_______________

_____________

_____________

__________________

_______________

_____________

_____________

Appendix A.

Securitization.