SUV TAX CREDIT
Suv tax credit
whether a "true sale" has occurred) and the ensuing consequences are unclear. suv tax credit Federal-tax-brackets-for-2002. If a "true sale" has not occurred, then creditors of the transferor''s estate and holders of equity in the transferor would have a residual right to the transferred assets after holders of asset-backed securities have received their payments. Moreover, such creditors would also succeed to any voting rights which the transferor retained. It should be kept in mind that the primary focus of the drafters of this amendment was to protect cash flows to holders of asset-backed and mortgage-backed securities. suv tax credit Iowa tax forms. Thus, the practical effect of the amendment is principally to serve as an additional exception to the automatic stay and to protect holders of asset-backed and mortgage-backed securities from the other powers of a bankruptcy court. Structuring ConsiderationsThe effect that the amendment may have in structuring transactions is potentially significant. Presently, in order to pass "true sale" requirements, transactions are structured so that there is very limited recourse to the transferor. suv tax credit State sales tax rates. Generally, such recourse is limited to breaches of customary representations and warranties as to the characteristics of the financial assets being securitized. Ongoing warranties as to the performance of securitized assets are generally not permitted in order to characterize a transaction as a "true sale. " Similarly, the ability to repurchase the securitized assets so as to take advantage of an appreciation in value is also contrary to the requirements for establishing a true sale. It would appear that after enactment of the amendment, these considerations may be disregarded for federal bankruptcy purposes, and when securitization transactions are structured, provision of recourse to the transferor and repurchase options taking advantage of appreciation will now be possible. As discussed below, however, these factors may well be relevant to accountants under FAS 125 (for example, a repurchase option on the transferred assets, other than a clean-up call, currently is not permissible under FAS 125). In addition, a two-tier structure may not be necessary in instances where the degree of recourse back to the transferor is permissible for "non-consolidation" purposes and would not prevent sales treatment under FAS 125. Accounting ConsiderationsThe impact that the amendment will have on accounting treatment of rated securitizations is unclear. For sale treatment of financial assets under FAS 125, there must be evidence that "transferred financial assets have been . . . put presumptively beyond the reach of the transferor [and its affiliates] and its creditors. "5 An opinion that transferred assets would not be part of the transferor''s bankruptcy estate would seem to satisfy at least the isolation requirements of FAS 125. However, paragraph 23 of the implementation guidance to FAS 125 instructs auditors to take into consideration all the "facts and circumstances" in determining whether sales treatment should be accorded to a transaction.
Suv tax credit
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