True Sale in Securitization Essay Example | Topics and Well Written Essays - 1000 words - 1

True Sale in Securitization - Essay Example The power to sell the receivables by the creditor stems from the concept of securitization, which is a â€Å"contractual right of a creditor to sell the goods of the debtor and apply the proceeds thereof in or towards the satisfaction of the debt.†1 There are three types of securitization currently used in the market. First, it could be treated as a â€Å"true sale† which is characterized by a transfer of all rights over the receivables to the SPV by the originator. Second is the synthetic securitization where the originator does not sell the accounts receivables but enters into a derivative transaction. Third, are the whole business securitizations, which a form of secured financing, and not a sale of the accounts receivables from the originator to the SPV. Of the three types of treatment, the rue sale may prove to be the safer ground for the seller. There are two points of view in true sale transactions namely the originator’s perspective and that of the SPV. Since Bank A falls under the category of an originator, we will then the originator’s perspectives. As earlier discussed, securitization is aimed at raising funds. For the originator, it is also a method of extracting profit. However, extraction of profit must be done with caution as it has the tendency to run foul with regulations and accounting principles. Under the rules and guidelines of the Securitisation and Asset Transfers (SE) as embodied in the FSA’s Interim Prudential Sourcebook for Banks, extraction of profits may be effected in the following manners, namely (a) as administration fees.

Give comments to personal statements Essay Example | Topics and Well Written Essays - 250 words

Give comments to personal statements - Essay Example The fascination is the basis of his personal and career goals to major in Software Engineering. He envisions building his game development company. Collins believes his determination will be crucial in pursuing Ph.D. in either Robotics, Intelligence or Theoretical Physics (Lam, 2015). Collin’s good background education on computers will see him through his computer career. In fact, he has already been successful in developing games in high school and the recent Edrenium with positive feedbacks. Willis Hougland’s love for Lego toys is the basis of his career given the mental development and dexterity of hands that comes with the childhood toys as evident with development of remote cars and full size cars in high school. At the University of Colorado, he majors in component design develops, and a drill powered vehicle and knowledge in software design, as well as skills on metalworking and welding, helps him in developing a contestable bike. His leadership skills are put to test when acting as Head of Manufacturing Engineering where he diagnoses problems especially poor designs (Johansen, & Johansen, 2011). Education and personal skills will undoubtedly make his goals achievable. Kirsten Chun’s love for medicine as a career begins with early childhood experience as she watches successful x-rays by the father. Cancer experience with her mother and at the women healthcare center is also the reasons for her fascination with physiology and medicine. Therefore, she would like to contribute to the expansion of medicine knowledge. Working with women helped her develop excellent patient care skills and stresses the need for compassion (Cipolle, Strand, & Morley, 2012). She plans to get back to Hawaii and attend A. Burns Medical School and believes her diligence and affectionate personality will add to the diversity of the university