were in the case of ResCap, capital is created. If CIT offered to exchange 2010 and 2011 debt at a discount of 20%, which we believe investors would accept if offered a priority claim on assets, $2.2bn of capital would be created (20%*$11.2bn). This would help fix CIT's capital shortfall. If CIT does successfully manage to get such an exchange underway it might be enough to see it fulfil its minimum total capital ratio in August. Furthermore, success on this front could be enough to persuade the FDIC to grant limited access to its Temporary Liquidity Guarantee Program, opening the door to longer-term support. Another route, however, is using some of its $48bn worth of unencumbered assets -- mostly in the form of finance receivables or operating lease equipment -- to raise cash via secured borrowing. But there is a problem. As Barclays highlights, the small print on CIT's covenants says: SECTION 6. NEGATIVE COVENANTS The Company hereby agrees that, so long as any Commitment remains in effect, or any principal of or interest on any Loan or any other amount shall be unpaid hereunder, the Company shall not: 6.1. Negative Pledge. (a) (1) Create, incur or suffer to exist any Lien upon any of its property or assets to secure indebtedness for money borrowed, incurred, issued, assumed or guaranteed by the Company or (2) create any Lien upon any of its property or assets to secure any indebtedness or other obligations of any Person if such Lien is a