Motor 2017-1: 21 September 2017
The seventh transaction in the Motor series, where again the originator is Santander Consumer (UK) plc. SC UK is the second largest independent provider of motor vehicle point of sale finance within the UK. SC UK provides motor finance throughout the UK, mainly through intermediary relationships with car dealerships and selected dealer brokers.
Eligibility criteria (includes): was originated in the United Kingdom in the ordinary course of business of the Seller in accordance with its Credit and Collection Policy; is denominated and payable in GBP; is not a defaulted receivable; has a fixed interest rate and is fully amortising through payment of constant monthly instalments; at least one payment has been fully made in accordance with the Underlying Agreement; is denominated and payable in Sterling; is not subject to an Underlying Agreement which has been terminated; at the Closing Date, none of the receivables is more than one instalment in arrears.
There will be no substitution of the Purchased Receivables in the portfolio as existing Purchased Receivables repay however, during the Revolving Period, further Receivables may be purchased and added to the portfolio. Therefore, after the Closing Date, the portfolio will change from time to time as a result of repayment, prepayments or repurchase of Purchased Receivables.
At the cut-off date the initial portfolio consists of 88,149 auto loans (used – 55,136; new – 33,013) where the arithmetic average loan balance is £7,253 and the largest loan is for £119,460. Contract type (by current balances): Conditional Sale – Used 37.44%, PCP – New 28.38%, PCP – Used 26.01% and Conditional Sale – New 8.16%. All loans are serviced monthly. The WA seasoning is 9 months.
CRR/405: The Seller, in its capacity as Originator, undertakes that it will retain, on an ongoing basis, a material net economic interest in the transaction which shall in any event not be less than 5.0% in accordance with Article 405 of Regulation (EU) No. 575/2013 and Article 51 of Regulation (EU) No. 231/2013, by retaining 5% of the nominal value of each Class of Notes sold or transferred to investors.
U.S. Credit Risk Retention Requirements: The Retention Holder (as Sponsor) is required under the U.S. Securities Exchange Act of 1934 to ensure that it (or a majority-owned affiliate of the Sponsor) acquires and retains an economic interest in the credit risk of the assets collateralising the issuance of asset backed securities on the Closing Date in an amount of not less than 5%. The Retention Holder intends to designate itself as the sponsor that will acquire and retain, either directly or through a majority-owned affiliate of the Sponsor, an eligible vertical interest in an amount equal to not less than 5% of the nominal value of each Class of Notes issued on the Closing Date.
Compare/contrast: Motor 2016-1, Bumper 8 Finance plc, Globaldrive Auto Receivables UK 2017-A