The process of buying or leasing a vehicle can be frustrating if you don’t understand the common terminologies used in financing. Here are some of the terminologies our team at Weimer Chrysler Dodge Jeep Ram in Moorefield, WV think you should know:
Revolving Period – This is the period in a securitization during which principal payments are reinvested in new loan receivables received from underlying collateral. After the date of issuance of the ABS, some rotating periods are limited to three years.
Revolving Pool Securitization – This is a type of securitization that circles for a long period of time before it is amortized. As earlier loans are paid off or transferred, the issuer can add new loans to the collateral.
Secured Loan – a loan secured by the borrower’s pledge of a valuable asset, such as a vehicle or real estate.
Securities act – investors can now make educated decisions regarding investments, thanks to the Securities Act of 1993, a law enacted to ensure that financial statements are made available to the public. Laws against fraud and misrepresentation in the securities sectors are also established by the securities act.