Mitsubishi Motors Credit Of America Has a Remote Entity Bankruptcy Option

From time to time MMCA finances its operations by securitizing designated pools of Leases and Leased Vehicles ("Vehicle Lease Securitizations") and retail auto loans, including Auto Balloon Loans ("Auto Loan Securitizations").14 In a securitization transaction, MMCA sells its beneficial interest in a pool of Leases and related Leased Vehicles (in the case of a Vehicle Lease Securitization) or a specified pool of retail automobile loans, including Auto Balloon Loans (in the case of an Auto Loan Securitization) to a special purpose bankruptcy remote entity which then sells such assets to a Securitization Trust established for the specific transaction. The Securitization Trust issues rated securities secured by the beneficial interest in the Leases and Leased Vehicles or the pool of auto loans, as applicable. Collections on the assets, including proceeds from the sale of the vehicles, are applied to pay interest on and principal of the securities.