Proceeds From Terminated Securitizations- Footnotes
September 13, 2004
Audit Report No. 04-034
Footnote 1: Third parties include the master servicer and trustee appointed to the trust created for each securitization.
Footnote 2: The RTC's legislatively mandated sunset date was December 31, 1995. Responsibility for all RTC-related work as of that date was transferred to the FDIC in accordance with the RTC Completion Act. All securitizations created by the RTC, therefore, would terminate under the FDIC.
Footnote 3: A trust is a separate legal entity that holds property or assets of some kind for the benefit of a specific person, group of people, or organization known as the beneficiary (beneficiaries). When a trust is established, an individual or corporate entity is designated as a trustee to oversee or manage the assets in the trust.
Footnote 4: The RTC had been appointed as receiver to manage the liquidation of assets from failed financial institutions.
Footnote 5: The RTC had been appointed as conservator to manage the assets of troubled financial institutions. In some cases, RTC had purchased assets of a troubled institution to provide financial assistance.
Footnote 6: Certificates are securities that are sold to investors and provide a return of principal and interest.
Footnote 7: Certificate holders are the investors in the certificates issued from the securitizations.
Footnote 8: Interest received on the loans less interest paid on the certificates.
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