Used Luxury Auto (ULA) is a hypothetical company that has established a nationwide business in buying used luxury autos and then refurbishing them with the latest in electronic equipment (for instance, UBS ports and rear-view cameras). ULA Corp then sells these autos in the retail market, often financing the sales with promissory notes from the buyers via its ULA Credit Corp.

The following information is taken from a theoretical filing by ULA with the Securities and Exchange Commission for a securitization:

Issuer: ULA Trust 2020

Seller and Servicer: ULA Credit Corp

Notes:

$500,000,000 4.00% ULA Trust contract-backed Class A notes, rated AAA

$250,000,000 4.80% ULA Trust contract-backed Class B notes, rated A

Contracts: The assets underlying the notes are fixed-rate promissory notes relating to the purchase of used automobiles refurbished by ULA Corp.

ULA Credit Corp is responsible for:

A. selling the collateral to the SPE and collecting payments from borrowers on the underlying promissory notes.

B. refurbishing the used motorcycles and collecting payments from borrowers on the underlying promissory notes.

C. selling the contract-backed Class A and Class B notes to investors and making the cash interest and principal payments to them.