Title 17—Commodity and Securities Exchanges--Volume 1
PART 229—STANDARD INSTRUCTIONS FOR FILING FORMS UNDER SECURITIES ACT OF 1933, SECURITIES EXCHANGE ACT OF 1934 AND ENERGY POLICY AND CONSERVATION ACT OF 1975—REGULATION S-K
§ 229.1121   (Item 1121) Distribution and pool performance information.
(a) Describe the distribution for the related distribution period and the performance of the asset pool during the distribution period. Provide appropriate introductory and explanatory information to introduce any material terms, parties or abbreviations used (or a cross-reference to a Commission filing where such information may be found). Present statistical information in tabular or graphical format, if such presentation will aid understanding. While the material information regarding the related distribution and pool performance will vary depending on the nature of the transaction, such information may include, among other things:
(1) Any applicable record dates, accrual dates, determination dates for calculating distributions and actual distribution dates for the distribution period.
(2) Cash flows received and the sources thereof for distributions, fees and expenses (including portfolio yield, if applicable).
(3) Calculated amounts and distribution of the flow of funds for the period itemized by type and priority of payment, including:
(i) Fees or expenses accrued and paid, with an identification of the general purpose of such fees and the party receiving such fees or expenses.
(ii) Payments accrued or paid with respect to enhancement or other support identified in Item 1114 of this Regulation AB (such as insurance premiums or other enhancement maintenance fees), with an identification of the general purpose of such payments and the party receiving such payments.
(iii) Principal, interest and other distributions accrued and paid on the asset-backed securities by type and by class or series and any principal or interest shortfalls or carryovers.
(iv) The amount of excess cash flow or excess spread and the disposition of excess cash flow.
(4) Beginning and ending principal balances of the asset-backed securities.
(5) Interest rates applicable to the pool assets and the asset-backed securities, as applicable. Consider providing interest rate information for pool assets in appropriate distributional groups or incremental ranges.
(6) Beginning and ending balances of transaction accounts, such as reserve accounts, and material account activity during the period.
(7) Any amounts drawn on any credit enhancement or other support identified in Item 1114 of this Regulation AB, as applicable, and the amount of coverage remaining under any such enhancement, if known and applicable.
(8) Number and amount of pool assets at the beginning and ending of each period, and updated pool composition information, such as weighted average coupon, weighted average life, weighted average remaining term, pool factors and prepayment amounts. For asset-backed securities backed by leases where a portion of the securitized pool balance is attributable to residual values of the physical property underlying the leases, this information also would include turn-in rates and residual value realization rates.
(9) Delinquency and loss information for the period. Present historical delinquency and loss information in accordance with Item 1100(b) of this Regulation AB (§ 229.1100(b)) through no less than 120 days.
(10) Information on the amount, terms and general purpose of any advances made or reimbursed during the period, including the general use of funds advanced and the general source of funds for reimbursements.
(11) Any material modifications, extensions or waivers to pool asset terms, fees, penalties or payments during the distribution period or that have cumulatively become material over time.
(12) Material breaches of pool asset representations or warranties or transaction covenants.
(13) Information on ratio, coverage or other tests used for determining any early amortization, liquidation or other performance trigger and whether the trigger was met.
(14) Information regarding any new issuance of asset-backed securities backed by the same asset pool, any pool asset changes (other than in connection with a pool asset converting into cash in accordance with its terms), such as additions or removals in connection with a prefunding or revolving period and pool asset substitutions and repurchases (and purchase rates, if applicable), and cash flows available for future purchases, such as the balances of any prefunding or revolving accounts, if applicable. Disclose any material changes in the solicitation, credit-granting, underwriting, origination, acquisition or pool selection criteria or procedures, as applicable, used to originate, acquire or select the new pool assets.
(b) During a prefunding or revolving period, or if there has been a new issuance of asset-backed securities backed by the same pool under a master trust during the fiscal year of the issuing entity, provide the information required by Items 1110, 1111 and 1112 of this Regulation AB applied taking the revised pool composition into account in the Form 10-D report (§ 249.312 of this chapter) for the last required distribution of the fiscal year of the issuing entity. In addition, provide such updated information in the first Form 10-D report for the period in which the prefunding or revolving period ends (if applicable). However, no disclosure need be provided by this paragraph if the information has not materially changed from that previously provided in an Exchange Act report relating to the asset-backed securities or in an effective registration statement under the Securities Act or a prospectus timely filed pursuant to § 230.424 of this chapter under the same Central Index Key (CIK) code regarding a subsequent issuance of asset-backed securities backed by a pool of assets that includes the pool assets that are the subject of this paragraph.
(c) Repurchases and replacements. (1) Provide the information required by Rule 15Ga-1(a) (17 CFR 240.15Ga-1(a)) concerning all assets of the pool that were subject of a demand to repurchase or replace for breach of the representations and warranties.
(2) Include a reference to the most recent Form ABS-15G (17.CFR 249.1400) filed by the securitizer (as that term is defined in Section 15G(a) of the Securities Exchange Act of 1934) and disclose the CIK number of the securitizer.
(d) Asset review. (1) If during the distribution period a review of the underlying assets for compliance with the representations and warranties on the underlying assets is required, provide the following information, as applicable:
(i) A description of the event(s) that triggered the review during the distribution period; and
(ii) If the asset representations reviewer provided to the trustee during the distribution period a report of the findings and conclusions of the review, a summary of the report.
(2) Change in asset representations reviewer. If during the distribution period an asset representations reviewer has resigned or has been removed, replaced or substituted, or if a new asset representations reviewer has been appointed, state the date the event occurred and the circumstances surrounding the change. If a new asset representations reviewer has been appointed, provide the disclosure required by Item 1109(b) (§ 229.1109(b)), as applicable, regarding such asset representations reviewer.
(e) Investor communication. Disclose any request received from an investor to communicate with other investors during the reporting period received by the party responsible for making the Form 10-D filings on or before the end date of a distribution period. The disclosure regarding the request to communicate is required to include the name of the investor making the request, the date the request was received, a statement to the effect that the party responsible for filing the Form 10-D (§ 249.312 of this chapter) has received a request from such investor, stating that such investor is interested in communicating with other investors with regard to the possible exercise of rights under the transaction agreements, and a description of the method by which other investors may contact the requesting investor.
Instruction to Item 1121(e). The party responsible for filing the Form 10-D (§ 249.312 of this chapter) is required to disclose an investor's interest to communicate only where the communication relates to an investor exercising its rights under the terms of the transaction agreement.
§ 229.1122   (Item 1122) Compliance with applicable servicing criteria.
(a) Reports on assessment of compliance with servicing criteria for asset-backed securities. As required by paragraph (b) of § 240.13a-18 or 240.15d-18 of this chapter, provide as an exhibit from each party participating in the servicing function a report on an assessment of compliance with the servicing criteria set forth in paragraph (d) of this section that contains the following:
(1) A statement of the party's responsibility for assessing compliance with the servicing criteria applicable to it;
(2) A statement that the party used the criteria in paragraph (d) of this section to assess compliance with the applicable servicing criteria;
(3) The party's assessment of compliance with the applicable servicing criteria as of and for the period ending the end of the fiscal year covered by the Form 10-K report (§ 249.310 of this chapter). This discussion must include disclosure of any material instance of noncompliance identified by the party; and
(4) A statement that a registered public accounting firm has issued an attestation report on the party's assessment of compliance with the applicable servicing criteria as of and for the period ending the end of the fiscal year covered by the Form 10-K report.
(b) Registered public accounting firm attestation reports. Provide the registered public accounting firm's attestation report required by paragraph (c) of § 240.13a-18 or 240.15d-18 of this chapter on the party's assessment of compliance with the applicable servicing criteria as an exhibit.
(c) Additional disclosure for the Form 10-K report. (1) If any party's report on assessment of compliance with servicing criteria required by paragraph (a) of this section, or related registered public accounting firm attestation report required by paragraph (b) of this section, identifies any material instance of noncompliance with the servicing criteria, identify the material instance of noncompliance in the report on Form 10-K (§ 249.310 of this chapter). Also disclose whether the identified instance was determined to have involved the servicing of the assets backing the asset-backed securities covered in this Form 10-K report.
(2) Discuss any steps taken to remedy a material instance of noncompliance previously identified by an asserting party for its activities with respect to asset-backed securities transactions taken as a whole involving such party and that are backed by the same asset type backing the asset-backed securities.
(3) If any party's report on assessment of compliance with servicing criteria required by paragraph (a) of this section, or related registered public accounting firm attestation report required by paragraph (b) of this section, is not included as an exhibit to the Form 10-K report, disclosure that the report is not included and an associated explanation must be provided in the report on Form 10-K.
(d) Servicing criteria —(1) General servicing considerations. (i) Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements.
(ii) If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party's performance and compliance with such servicing activities.
(iii) Any requirements in the transaction agreements to maintain a back-up servicer for the pool assets are maintained.
(iv) A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance with the terms of the transaction agreements.
(v) Aggregation of information, as applicable, is mathematically accurate and the information conveyed accurately reflects the information.
(2) Cash collection and administration. (i) Payments on pool assets are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days of receipt, or such other number of days specified in the transaction agreements.
(ii) Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.
(iii) Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the transaction agreements.
(iv) The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of overcollateralization, are separately maintained (e.g., with respect to commingling of cash) as set forth in the transaction agreements.
(v) Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, “federally insured depository institution” with respect to a foreign financial institution means a foreign financial institution that meets the requirements of § 240.13k-1(b)(1) of this chapter.
(vi) Unissued checks are safeguarded so as to prevent unauthorized access.
(vii) Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts. These reconciliations:
(A) Are mathematically accurate;
(B) Are prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements;
(C) Are reviewed and approved by someone other than the person who prepared the reconciliation; and
(D) Contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the transaction agreements.
(3) Investor remittances and reporting. (i) Reports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission requirements. Specifically, such reports:
(A) Are prepared in accordance with timeframes and other terms set forth in the transaction agreements;
(B) Provide information calculated in accordance with the terms specified in the transaction agreements;
(C) Are filed with the Commission as required by its rules and regulations; and
(D) Agree with investors' or the trustee's records as to the total unpaid principal balance and number of pool assets serviced by the servicer.
(ii) Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.
(iii) Disbursements made to an investor are posted within two business days to the servicer's investor records, or such other number of days specified in the transaction agreements.
(iv) Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.
(4) Pool asset administration. (i) Collateral or security on pool assets is maintained as required by the transaction agreements or related pool asset documents.
(ii) Pool assets and related documents are safeguarded as required by the transaction agreements.
(iii) Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.
(iv) Payments on pool assets, including any payoffs, made in accordance with the related pool asset documents are posted to the applicable servicer's obligor records maintained no more than two business days after receipt, or such other number of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related pool asset documents.
(v) The servicer's records regarding the pool assets agree with the servicer's records with respect to an obligor's unpaid principal balance.
(vi) Changes with respect to the terms or status of an obligor's pool asset (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with the transaction agreements and related pool asset documents.
(vii) Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and concluded in accordance with the timeframes or other requirements established by the transaction agreements.
(viii) Records documenting collection efforts are maintained during the period a pool asset is delinquent in accordance with the transaction agreements. Such records are maintained on at least a monthly basis, or such other period specified in the transaction agreements, and describe the entity's activities in monitoring delinquent pool assets including, for example, phone calls, letters and payment rescheduling plans in cases where delinquency is deemed temporary (e.g., illness or unemployment).
(ix) Adjustments to interest rates or rates of return for pool assets with variable rates are computed based on the related pool asset documents.
(x) Regarding any funds held in trust for an obligor (such as escrow accounts):
(A) Such funds are analyzed, in accordance with the obligor's pool asset documents, on at least an annual basis, or such other period specified in the transaction agreements;
(B) Interest on such funds is paid, or credited, to obligors in accordance with applicable pool asset documents and state laws; and
(C) Such funds are returned to the obligor within 30 calendar days of full repayment of the related pool asset, or such other number of days specified in the transaction agreements.
(xi) Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments, provided that such support has been received by the servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction agreements.
(xii) Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the servicer's funds and not charged to the obligor, unless the late payment was due to the obligor's error or omission.
(xiii) Disbursements made on behalf of an obligor are posted within two business days to the obligor's records maintained by the servicer, or such other number of days specified in the transaction agreements.
(xiv) Delinquencies, charge-offs and uncollectible accounts are recognized and recorded in accordance with the transaction agreements.
(xv) Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of this Regulation AB, is maintained as set forth in the transaction agreements.
Instruction 1 to Item 1122: The assessment should cover all asset-backed securities transactions involving such party and that are backed by the same asset type backing the class of asset-backed securities which are the subject of the Commission filing. The asserting party may take into account divisions among transactions that are consistent with actual practices. However, if the asserting party includes in its platform less than all of the transactions backed by the same asset type that it services, a description of the scope of the platform should be included in the assessment.
Instruction 2 to Item 1122. If certain servicing criteria are not applicable to the asserting party based on the activities it performs with respect to asset-backed securities transactions taken as a whole involving such party and that are backed by the same asset type backing the class of asset-backed securities, the inapplicability of the criteria must be disclosed in that asserting party's and the related registered public accounting firm's reports.
Instruction 3 to Item 1122. If multiple parties are participating in the servicing function, a separate assessment report and attestation report must be included for each party participating in the servicing function. A party participating in the servicing function means any entity (e.g., master servicer, primary servicers, trustees) that is performing activities that address the criteria in paragraph (d) of this section, unless such entity's activities relate only to 5% or less of the pool assets.
Instruction 4 to Item 1122. If the asset pool backing the asset-backed securities includes a pool asset representing an interest in or the right to the payments or cash flows of another asset pool and both the issuing entity for the asset-backed securities and the entity issuing the asset to be included in the issuing entity's asset pool were established under the direction of the same sponsor and depositor, see also Item 1100(d)(2) of this Regulation AB.
§ 229.1123   (Item 1123) Servicer compliance statement.
Provide as an exhibit a statement of compliance from the servicer, signed by an authorized officer of such servicer, to the effect that:
(a) A review of the servicer's activities during the reporting period and of its performance under the applicable servicing agreement has been made under such officer's supervision.
(b) To the best of such officer's knowledge, based on such review, the servicer has fulfilled all of its obligations under the agreement in all material respects throughout the reporting period or, if there has been a failure to fulfill any such obligation in any material respect, specifying each such failure known to such officer and the nature and status thereof.
§ 229.1124   (Item 1124) Sponsor interest in the securities.
Provide information about any material change in the sponsor's, or an affiliate's, interest in the securities resulting from the purchase, sale or other acquisition or disposition of the securities by the sponsor, or an affiliate, during the period covered by the report. Describe the change, including the amount of change and the sponsor's, or the affiliate's, resulting interest in the transaction after the change.
Instruction to Item 1124. The disclosure required under this item shall separately state the resulting amount and nature of any interest or asset retained in compliance with law, including any amounts that are retained by parties other than the sponsor in order to satisfy such requirement.
§ 229.1125   (Item 1125) Schedule AL—Asset-level information.
(a) The following definitions apply to the terms used in this schedule unless otherwise specified:
Debt service reduction. A modification of the terms of a loan resulting from a bankruptcy proceeding, such as a reduction of the amount of the monthly payment on the related mortgage loan.
Deficient valuation. A bankruptcy proceeding whereby the bankruptcy court may establish the value of the mortgaged property at an amount less than the then-outstanding principal balance of the mortgage loan secured by the mortgaged property or may reduce the outstanding principal balance of a mortgage loan.
Underwritten. The amount of revenues or expenses adjusted based on a number of assumptions made by the mortgage originator or seller.
(b) As required by Item 1111(h) (§ 229.1111(h)), provide asset-level information for each asset or security in the pool in the manner specified in appendix to § 229.1125.
Item 1. Residential mortgages. If the asset pool includes residential mortgages, provide the following data and the data under Item 1 for each loan in the asset pool:
(a) Asset numbers. (1) Asset number type. Identify the source of the asset number used to specifically identify each asset in the pool.
(2) Asset number. Provide the unique ID number of the asset.
Instruction to paragraph (a)(2): The asset number must reference a single asset within the pool and should be the same number that will be used to identify the asset for all reports that would be required of an issuer under Sections 13 or 15(d) of the Exchange Act (15 U.S.C. 78m or 78o(d)). If an asset is removed and replaced with another asset, the asset added to the pool should be assigned a unique asset number applicable to only that asset.
(3) Asset group number. For structures with multiple collateral groups, indicate the collateral group number in which the asset falls.
(b) Reporting period. (1) Reporting period begin date. Specify the beginning date of the reporting period.
(2) Reporting period end date. Specify the ending date of the reporting period.
(c) General information about the residential mortgage. (1) Original loan purpose. Specify the code which describes the purpose of the loan at the time the loan was originated.
(2) Originator. Identify the name of the entity that originated the loan.
(3) Original loan amount. Indicate the amount of the loan at the time the loan was originated.
(4) Original loan maturity date. Indicate the month and year in which the final payment on the loan is scheduled to be made at the time the loan was originated.
(5) Original amortization term. Indicate the number of months that would have been required to retire the mortgage loan through regular payments, as determined at the origination date of the loan. In the case of an interest-only loan, the original amortization term is the original term to maturity (other than in the case of a balloon loan). In the case of a balloon loan, the original amortization term is the number of months used to calculate the principal and interest payment due each month (other than the balloon payment).
(6) Original interest rate. Provide the rate of interest at the time the loan was originated.
(7) Accrual type. Provide the code that describes the method used to calculate interest on the loan.
(8) Original interest rate type. Indicate whether the interest rate on the loan is fixed, adjustable, step or other.
(9) Original interest only term. Indicate the number of months in which the obligor is permitted to pay only interest on the loan beginning from when the loan was originated.
(10) Underwriting indicator. Indicate whether the loan or asset met the criteria for the first level of solicitation, credit-granting or underwriting criteria used to originate the pool asset.
(11) Original lien position. Indicate the code that describes the priority of the lien against the subject property at the time the loan was originated.
(12) Information related to junior liens. If the loan is a first mortgage with subordinate liens, provide the following additional information for each non-first mortgage if obtained or available:
(i) Most recent junior loan balance. Provide the most recent combined balance of any subordinate liens.
(ii) Date of most recent junior loan balance. Provide the date of the most recent junior loan balance.
(13) Information related to non-first mortgages. For non-first mortgages, provide the following information if obtained or available:
(i) Most recent senior loan amount. Provide the total amount of the balances of all associated senior loans.
(ii) Date of most recent senior loan amount. Provide the date(s) of the most recent senior loan amount.
(iii) Loan type of most senior lien. Indicate the code that describes the loan type of the first mortgage.
(iv) Hybrid period of most senior lien. For non-first mortgages where the associated first mortgage is a hybrid ARM, provide the number of months remaining in the initial fixed interest rate period for the first mortgage.
(v) Negative amortization limit of most senior lien. For non-first mortgages where the associated first mortgage features negative amortization, indicate the negative amortization limit of the mortgage as a percentage of the original unpaid principal balance.
(vi) Origination date of most senior lien. Provide the origination date of the associated first mortgage.
(14) Prepayment penalty indicator. Indicate yes or no as to whether the loan includes a penalty charged to the obligor in the event of a prepayment.
(15) Negative amortization indicator. Indicate yes or no as to whether the loan allows negative amortization.
(16) Modification indicator. Indicate yes or no as to whether the loan has been modified from its original terms.
(17) Number of modifications. Provide the number of times that the loan has been modified.
(18) Mortgage insurance requirement indicator. Indicate yes or no as to whether mortgage insurance is or was required as a condition for originating the loan.
(19) Balloon indicator. Indicate yes or no as to whether the loan documents require a lump-sum to fully pay off the loan.
(20) Covered/High cost loan indicator. Indicate yes, no or unknown as to whether as of the end of the reporting period the loan is categorized as “high cost,” “higher priced” or “covered” according to applicable federal, state or local statutes, ordinances or regulations.
(21) Servicer-placed hazard insurance. Indicate yes, no or unknown as to whether as of the end of the reporting period the hazard insurance on the property is servicer-placed.
(22) Refinance cash-out amount. For any refinance loan that is a cash-out refinance provide the amount the obligor received after all other loans to be paid by the mortgage proceeds have been satisfied. For any refinance loan that is a no-cash-out refinance provide the result of the following calculation: [NEW LOAN AMOUNT]−[PAID OFF FIRST MORTGAGE LOAN AMOUNT]−[PAID OFF SECOND MORTGAGE LOAN AMOUNT]−[CLOSING COSTS].
(23) Total origination and discount points. Provide the amount paid to the lender to increase the lender's effective yield and, in the case of discount points, to reduce the interest rate paid by the obligor.
(24) Broker. Indicate yes or no as to whether a broker originated or was involved in the origination of the loan.
(25) Channel. Specify the code that describes the source from which the issuer obtained the loan.
(26) NMLS company number. Specify the National Mortgage License System (NMLS) registration number of the company that originated the loan.
(27) Buy down period. Indicate the total number of months during which any buy down is in effect, representing the accumulation of all buy down periods.
(28) Loan delinquency advance days count. Indicate the number of days after which a servicer can stop advancing funds on a delinquent loan.
(29) Information related to ARMs. If the loan is an ARM, provide the following additional information:
(i) Original ARM Index. Specify the code that describes the type and source of index to be used to determine the interest rate at each adjustment.
(ii) ARM Margin. Indicate the number of percentage points that is added to the index value to establish the new interest rate at each interest rate adjustment date.
(iii) Fully indexed interest rate. Indicate the fully indexed interest rate to which the obligor was underwritten.
(iv) Initial fixed rate period for hybrid ARM. If the interest rate is initially fixed for a period of time, indicate the number of months between the first payment date of the loan and the first interest rate adjustment date.
(v) Initial interest rate decrease. Indicate the maximum percentage by which the interest rate may decrease at the first interest rate adjustment date.
(vi) Initial interest rate increase. Indicate the maximum percentage by which the interest rate may increase at the first interest rate adjustment date.
(vii) Index look-back. Provide the number of days prior to an interest rate effective date used to determine the appropriate index rate.
(viii) Subsequent interest rate reset period. Indicate the number of months between subsequent rate adjustments.
(ix) Lifetime rate ceiling. Indicate the percentage of the maximum interest rate that can be in effect during the life of the loan.
(x) Lifetime rate floor. Indicate the percentage of the minimum interest rate that can be in effect during the life of the loan.
(xi) Subsequent interest rate decrease. Provide the maximum number of percentage points by which the interest rate may decrease at each rate adjustment date after the initial adjustment.
(xii) Subsequent interest rate increase. Provide the maximum number of percentage points by which the interest rate may increase at each rate adjustment date after the initial adjustment.
(xiii) Subsequent payment reset period. Indicate the number of months between payment adjustments after the first interest rate adjustment date.
(xiv) ARM round indicator. Indicate the code that describes whether an adjusted interest rate is rounded to the next higher adjustable rate mortgage round factor, to the next lower round factor, or to the nearest round factor.
(xv) ARM round percentage. Indicate the percentage to which an adjusted interest rate is to be rounded.
(xvi) Option ARM indicator. Indicate yes or no as to whether the loan is an option ARM.
(xvii) Payment method after recast. Specify the code that describes the means of computing the lowest monthly payment available to the obligor after recast.
(xviii) Initial minimum payment. Provide the amount of the initial minimum payment the obligor is permitted to make.
(xix) Convertible indicator. Indicate yes or no as to whether the obligor of the loan has an option to convert an adjustable interest rate to a fixed interest rate during a specified conversion window.
(xx) HELOC indicator. Indicate yes or no as to whether the loan is a home equity line of credit (HELOC).
(xxi) HELOC draw period. Indicate the original maximum number of months from the month the loan was originated during which the obligor may draw funds against the HELOC account.
(30) Information related to prepayment penalties. If the obligor is subject to prepayment penalties, provide the following additional information:
(i) Prepayment penalty calculation. Specify the code that describes the method for calculating the prepayment penalty for the loan.
(ii) Prepayment penalty type. Specify the code that describes the type of prepayment penalty.
(iii) Prepayment penalty total term. Provide the total number of months after the origination of the loan that the prepayment penalty may be in effect.
(iv) Prepayment penalty hard term. For hybrid prepayment penalties, provide the number of months after the origination of the loan during which a “hard” prepayment penalty applies.
(31) Information related to negative amortization. If the loan allows for negative amortization, provide the following additional information:
(i) Negative amortization limit. Specify the maximum amount of negative amortization that is allowed before recalculating a fully amortizing payment based on the new loan balance.
(ii) Initial negative amortization recast period. Indicate the number of months after the origination of the loan that negative amortization is allowed.
(iii) Subsequent negative amortization recast period. Indicate the number of months after which the payment is required to recast after the first amortization recast period.
(iv) Negative amortization balance amount. Provide the amount of the negative amortization balance accumulated as of the end of the reporting period.
(v) Initial fixed payment period. Indicate the number of months after the origination of the loan during which the payment is fixed.
(vi) Initial periodic payment cap. Indicate the maximum percentage by which a payment can increase in the first amortization recast period.
(vii) Subsequent periodic payment cap. Indicate the maximum percentage by which a payment can increase in one amortization recast period after the initial cap.
(viii) Initial minimum payment reset period. Provide the maximum number of months after the origination of the loan that an obligor can initially pay the minimum payment before a new minimum payment is determined.
(ix) Subsequent minimum payment reset period. Provide the maximum number of months after the initial period an obligor can pay the minimum payment before a new minimum payment is determined.
(x) Minimum payment. Provide the amount of the minimum payment due during the reporting period.
(d) Information related to the property. (1) Geographic location. Specify the location of the property by providing the two-digit zip code.
(2) Occupancy status. Specify the code that describes the property occupancy status at the time the loan was originated.
(3) Most recent occupancy status. If a property inspection has been performed after the loan is originated, provide the code that describes the manner in which the property is occupied.
(4) Property type. Specify the code that describes the type of property that secures the loan.
(5) Most recent property value. If an additional property valuation was obtained by any transaction party or its affiliates after the original appraised property value, provide the most recent property value obtained.
(6) Most recent property valuation type. Specify the code that describes the method by which the most recent property value was reported.
(7) Most recent property valuation date. Specify the date on which the most recent property value was reported.
(8) Most recent AVM model name. Provide the code indicating the name of the AVM model if an AVM was used to determine the most recent property value.
(9) Most recent AVM confidence score. If an additional AVM was obtained by any transaction party or its affiliates after the original valuation, provide the confidence score presented on the most recent AVM report.
(10) Original combined loan-to-value. Provide the ratio obtained by dividing the amount of all known outstanding mortgage liens on a property at origination by the lesser of the original appraised property value or the sales price.
(11) Original loan-to-value. Provide the ratio obtained by dividing the amount of the original mortgage loan at origination by the lesser of the original appraised property value or the sales price.
(e) Information related to the obligor. (1) Original number of obligors. Indicate the number of obligors who are obligated to repay the mortgage note at the time the loan was originated.
(2) Original obligor credit score. Provide the standardized credit score of the obligor used to evaluate the obligor during the loan origination process.
(3) Original obligor credit score type. Specify the type of the standardized credit score used to evaluate the obligor during the loan origination process.
(4) Most recent obligor credit score. If an additional credit score was obtained by any transaction party or its affiliates after the original credit score, provide the most recently obtained standardized credit score of the obligor.
(5) Most recent obligor credit score type. Specify the type of the most recently obtained standardized credit score of the obligor.
(6) Date of most recent obligor credit score. Provide the date of the most recently obtained standardized credit score of the obligor.
(7) Obligor income verification level. Indicate the code describing the extent to which the obligor's income was verified during the loan origination process.
(8) 4506—T Indicator. Indicate yes or no whether a Transcript of Tax Return (received pursuant to the filing of IRS Form 4506-T) was obtained and considered.
(9) Originator front-end debt-to-income (DTI). Provide the front-end DTI ratio used by the originator to qualify the loan.
(10) Originator back-end DTI. Provide the back-end DTI ratio used by the originator to qualify the loan.
(11) Obligor employment verification. Indicate the code describing the extent to which the obligor's employment was verified during the loan origination process.
(12) Length of employment—obligor. Indicate whether the obligor was employed by its current employer for greater than 24 months at the time the loan was originated.
(13) Obligor asset verification. Indicate the code describing the extent to which the obligor's assets used to qualify the loan was verified during the loan origination process.
(14) Original pledged assets. If the obligor(s) pledged financial assets to the lender instead of making a down payment, provide the total value of assets pledged as collateral for the loan at the time of origination.
(15) Qualification method. Specify the code that describes the type of mortgage payment used to qualify the obligor for the loan.
(f) Information related to mortgage insurance. If mortgage insurance is required on the mortgage, provide the following additional information:
(1) Mortgage insurance company name. Provide the name of the entity providing mortgage insurance for the loan.
(2) Mortgage insurance coverage. Indicate the total percentage of the original loan balance that is covered by mortgage insurance.
(3) Pool insurance company. Provide the name of the pool insurance provider.
(4) Pool insurance stop loss percent. Provide the aggregate amount that the pool insurance company will pay, calculated as a percentage of the pool balance.
(5) Mortgage insurance coverage plan type. Specify the code that describes the coverage category of the mortgage insurance applicable to the loan.
(g) Information related to activity on the loan. (1) Asset added indicator. Indicate yes or no whether the asset was added to the pool during the reporting period.
Instruction to paragraph (g)(1): A response to this data point is required only when assets are added to the asset pool after the final prospectus under § 230.424 of this chapter is filed.
(2) Remaining term to maturity. Indicate the number of months from the end of the reporting period to the loan maturity date.
(3) Modification indicator—reporting period. Indicate yes or no whether the asset was modified during the reporting period.
(4) Next payment due date. For loans that have not been paid off, indicate the next payment due date.
(5) Advancing method. Specify the code that indicates a servicer's responsibility for advancing principal or interest on delinquent loans.
(6) Servicing advance methodology. Indicate the code that describes the manner in which principal and/or interest are advanced by the servicer.
(7) Stop principal and interest advance date. Provide the first payment due date for which the servicer ceased advancing principal or interest.
(8) Reporting period beginning loan balance. Indicate the outstanding principal balance of the loan as of the beginning of the reporting period.
(9) Reporting period beginning scheduled loan balance. Indicate the scheduled principal balance of the loan as of the beginning of the reporting period.
(10) Next reporting period payment amount due. Indicate the total payment due to be collected in the next reporting period.
(11) Reporting period interest rate. Indicate the interest rate in effect during the reporting period.
(12) Next interest rate. For loans that have not been paid off, indicate the interest rate that is in effect for the next reporting period.
(13) Servicing fee—percentage. If the servicing fee is based on a percentage, provide the percentage used to calculate the aggregate servicing fee.
(14) Servicing fee—flat-fee. If the servicing fee is based on a flat-fee amount, indicate the monthly servicing fee paid to all servicers.
(15) Other assessed but uncollected servicer fees. Provide the cumulative amount of late charges and other fees that have been assessed by the servicer, but not paid by the obligor.
(16) Other loan-level servicing fee(s) retained by the servicer. Provide the amount of all other fees earned by loan administrators during the reporting period that reduced the amount of funds remitted to the issuing entity (including subservicing, master servicing, trustee fees, etc.).
(17) Scheduled interest amount. Indicate the interest payment amount that was scheduled to be collected during the reporting period.
(18) Other interest adjustments. Indicate any unscheduled interest adjustments during the reporting period.
(19) Scheduled principal amount. Indicate the principal payment amount that was scheduled to be collected during the reporting period.
(20) Other principal adjustments. Indicate any other amounts that caused the principal balance of the loan to be decreased or increased during the reporting period.
(21) Reporting period ending actual balance. Indicate the actual balance of the loan as of the end of the reporting period.
(22) Reporting period ending scheduled balance. Indicate the scheduled principal balance of the loan as of the end of the reporting period.
(23) Reporting period scheduled payment amount. Indicate the total payment amount that was scheduled to be collected during the reporting period (including all fees and escrows).
(24) Total actual amount paid. Indicate the total payment (including all escrows) paid to the servicer during the reporting period.
(25) Actual interest collected. Indicate the gross amount of interest collected during the reporting period, whether or not from the obligor.
(26) Actual principal collected. Indicate the amount of principal collected during the reporting period, whether or not from the obligor.
(27) Actual other amounts collected. Indicate the total of any amounts, other than principal and interest, collected during the reporting period, whether or not from the obligor.
(28) Paid through date. Provide the date the loan's scheduled principal and interest is paid through as of the end of the reporting period.
(29) Interest paid through date. Provide the date through which interest is paid with the payment received during the reporting period, which is the effective date from which interest will be calculated for the application of the next payment.
(30) Paid-in-full amount. Provide the scheduled loan “paid-in-full” amount (principal) (do not include the current month's scheduled principal). Applies to all liquidations and loan payoffs.
(31) Information related to servicer advances.
(i) Servicer advanced amount—principal. Provide the total amount the servicer advanced for the reporting period for due but unpaid principal on the loan.
(ii) Servicer advanced amounts repaid—principal. Provide the total amount of any payments made by the obligor during the reporting period that was applied to outstanding advances of due but unpaid principal on the loan.
(iii) Servicer advances cumulative—principal. Provide the outstanding cumulative amount of principal advances made by the servicer as of the end of the reporting period, including amounts advanced for the reporting period.
(iv) Servicer advanced amount—interest. Provide the total amount the servicer advanced for the reporting period for due but unpaid interest on the loan.
(v) Servicer advanced amounts repaid—interest. Provide the total amount of any payments made by the obligor during the reporting period that was applied to outstanding advances of due but unpaid interest on the loan.
(vi) Servicer advances cumulative—interest. Provide the outstanding cumulative amount of interest advances made by the servicer as of the end of the reporting period, including amounts advanced for the reporting period.
(vii) Servicer advanced amount—taxes and insurance. Provide the total amount the servicer advanced for the reporting period for due but unpaid property tax and insurance payments (escrow amounts).
(viii) Servicer advanced amount repaid—taxes and insurance. Provide the total amount of any payment made by the obligor during the reporting period that was applied to outstanding advances of due but unpaid escrow amounts.
(ix) Servicer advances cumulative—taxes and insurance. Provide the outstanding cumulative amount of escrow advances made by the servicer as of the end of the reporting period, including amounts advanced for the reporting period.
(x) Servicer advanced amount—corporate. Provide the total amount the servicer advanced for property inspection and preservation expenses for the reporting period.
(xi) Servicer advanced amount repaid—corporate. Provide the total amount of any payments made by the obligor during the reporting period that was applied to outstanding corporate advances.
(xii) Servicer advances cumulative—corporate. Provide the outstanding cumulative amount of corporate advances made by the servicer as of the end of the reporting period, including amounts advanced for the reporting period.
Instruction to paragraph (g)(31): For loans modified or liquidated during a reporting period the data provided in response to this paragraph (g)(31) is to be information as of the liquidation date or modification date, as applicable.
(32) Zero balance loans. If the loan balance was reduced to zero during the reporting period, provide the following additional information about the loan.
(i) Zero balance effective date. Provide the date on which the loan balance was reduced to zero.
(ii) Zero balance code. Provide the code that indicates the reason the loan's balance was reduced to zero.
(33) Most recent 12-month pay history. Provide the string that indicates the payment status per month listed from oldest to most recent.
(34) Number of payments past due. Indicate the number of payments the obligor is past due as of the end of the reporting period.
(35) Information related to activity on ARM loans. If the loan is an ARM, provide the following additional information.
(i) Rate at next reset. Provide the interest rate that will be used to determine the next scheduled interest payment, if known.
(ii) Next payment change date. Provide the next date that the amount of scheduled principal and/or interest is scheduled to change.
(iii) Next interest rate change date. Provide the next scheduled date on which the interest rate is scheduled to change.
(iv) Payment at next reset. Provide the principal and interest payment due after the next scheduled interest rate change, if known.
(v) Exercised ARM conversion option indicator. Indicate yes or no whether the obligor exercised an option to convert an ARM loan to a fixed interest rate loan during the reporting period.
(h) Information related to servicers. (1) Primary servicer. Indicate the name of the entity that serviced the loan during the reporting period.
(2) Most recent servicing transfer received date. If a loan's servicing has been transferred, provide the effective date of the most recent servicing transfer.
(3) Master servicer. Provide the name of the entity that served as master servicer during the reporting period, if applicable.
(4) Special servicer. Provide the name of the entity that served as special servicer during the reporting period, if applicable.
(5) Subservicer. Provide the name of the entity that served as a subservicer during the reporting period, if applicable.
(i) Asset subject to demand. Indicate yes or no whether during the reporting period the loan was the subject of a demand to repurchase or replace for breach of representations and warranties, including investor demands upon a trustee. If the loan is the subject of a demand to repurchase or replace for breach of representations and warranties, including investor demands upon a trustee, provide the following additional information:
(1) Status of asset subject to demand. Indicate the code that describes the status of the repurchase or replacement demand as of the end of the reporting period.
(2) Repurchase amount. Provide the amount paid to repurchase the loan from the pool.
(3) Demand resolution date. Indicate the date the loan repurchase or replacement demand was resolved.
(4) Repurchaser. Specify the name of the repurchaser.
(5) Repurchase or replacement reason. Indicate the code that describes the reason for the repurchase or replacement.
(j) Information related to loans that have been charged off. If the loan has been charged off, provide the following additional information:
(1) Charged-off principal amount. Specify the total amount of uncollected principal charged off.
(2) Charged-off interest amount. Specify the total amount of uncollected interest charged off.
(k) [Reserved]
(l) Loss mitigation type indicator. Indicate the code that describes the type of loss mitigation the servicer is pursuing with the obligor, loan, or property as of the end of the reporting period.
(m) Information related to loan modifications. If the loan has been modified from its original terms, provide the following additional information about the most recent loan modification:
(1) Most recent loan modification event type. Specify the code that describes the most recent action that has resulted in a change or changes to the loan note terms.
(2) Effective date of the most recent loan modification. Provide the date on which the most recent modification of the loan has gone into effect.
(3) Post-modification maturity date. Provide the loan's maturity date as of the modification effective payment date.
(4) Post-modification interest rate type. Indicate whether the interest rate type on the loan after the modification is fixed, adjustable, step, or other.
(5) Post-modification amortization type. Indicate the amortization type after modification.
(6) Post-modification interest rate. Provide the interest rate in effect as of the modification effective payment date.
(7) Post-modification first payment date. Indicate the date of the first payment due after the loan modification.
(8) Post-modification loan balance. Provide the loan balance as of the modification effective payment date as reported on the modification documents.
(9) Post-modification principal and interest payment. Provide total principal and interest payment amount as of the modification effective payment date.
(10) Total capitalized amount. Provide the amount added to the principal balance of the loan due to the modification.
(11) Income verification indicator (at modification). Indicate yes or no whether a Transcript of Tax Return (received pursuant to the filing of IRS Form 4506-T) was obtained and considered during the loan modification process.
(12) Modification front-end DTI. Provide the front-end DTI ratio used to qualify the modification.
(13) Modification back-end DTI. Provide the back-end DTI ratio used to qualify the modification.
(14) Total deferred amount. Provide the deferred amount that is non-interest bearing.
(15) Forgiven principal amount (cumulative). Provide the total amount of all principal balance reductions as a result of loan modifications over the life of the loan.
(16) Forgiven principal amount (reporting period). Provide the total principal balance reduction as a result of a loan modification during the reporting period.
(17) Forgiven interest amount (cumulative). Provide the total amount of all interest forgiven as a result of loan modifications over the life of the loan.
(18) Forgiven interest amount (reporting period). Provide the total gross interest forgiven as a result of a loan modification during the reporting period.
(19) Actual ending balance—total debt owed. For a loan with principal forbearance, provide the sum of the actual ending balance field plus the principal deferred amount. For all other loans, provide the actual ending balance.
(20) Scheduled ending balance—total debt owed. For a loan with principal forbearance, provide the sum of the scheduled ending balance field plus the deferred amount. For all other loans, provide the scheduled ending balance.
(21) Information related to ARM loan modifications. If the loan was an ARM before and after the most recent modification, provide the following additional information:
(i) Post-modification ARM indicator. Indicate whether the loan's existing ARM parameters have changed per the modification agreement.
(ii) Post-modification ARM index. Specify the code that describes the index on which an adjustable interest rate is based as of the modification effective payment date.
(iii) Post-modification margin. Provide the margin as of the modification effective payment date. The margin is the number of percentage points added to the index to establish the new rate.
(iv) Post-modification interest reset period (if changed). Provide the number of months of the interest reset period of the loan as of the modification effective payment date.
(v) Post-modification next reset date. Provide the next interest reset date as of the modification effective payment date.
(vi) Post-modification index lookback. Provide the number of days prior to an interest rate effective date used to determine the appropriate index rate as of the modification effective payment date.
(vii) Post-modification ARM round indicator. Indicate the code that describes whether an adjusted interest rate is rounded to the next higher adjustable rate mortgage round factor, to the next lower round factor, or to the nearest round factor as of the modification effective payment date.
(viii) Post-modification ARM round percentage. Indicate the percentage to which an adjusted interest rate is to be rounded as of the modification effective payment date.
(ix) Post-modification initial minimum payment. Provide the amount of the initial minimum payment the obligor is permitted to make as of the modification effective payment date.
(x) Post-modification next payment adjustment date. Provide the due date on which the next payment adjustment is scheduled to occur for an ARM loan per the modification agreement.
(xi) Post-modification ARM payment recast frequency. Provide the payment recast frequency of the loan (in months) per the modification agreement.
(xii) Post-modification lifetime rate floor. Provide the minimum rate of interest that may be applied to an adjustable rate loan over the course of the loan's life as of the modification effective payment date.
(xiii) Post-modification lifetime rate ceiling. Provide the maximum rate of interest that may be applied to an adjustable rate loan over the course of the loan's life as of the modification effective payment date.
(xiv) Post-modification initial interest rate increase. Indicate the maximum percentage by which the interest rate may increase at the first interest rate adjustment date after the loan modification.
(xv) Post-modification initial interest rate decrease. Provide the maximum percentage by which the interest rate may adjust downward on the first interest rate adjustment date after the loan modification.
(xvi) Post-modification subsequent interest rate increase. Provide the maximum number of percentage points by which the rate may increase at each rate adjustment date after the initial rate adjustment as of the modification effective payment date.
(xvii) Post-modification subsequent interest rate decrease. Provide the maximum number of percentage points by which the interest rate may decrease at each rate adjustment date after the initial adjustment as of the modification effective payment date.
(xviii) Post-modification payment cap. Provide the percentage value by which a payment may increase or decrease in one period as of the modification effective payment date.
(xix) Post-modification payment method after recast. Specify the code that describes the means of computing the lowest monthly payment available to the obligor after recast as of the modification effective payment date.
(xx) Post-modification ARM interest rate teaser period. Provide the duration in months that the teaser interest rate is in effect as of the modification effective payment date.
(xxi) Post-modification payment teaser period. Provide the duration in months that the teaser payment is in effect as of the modification effective payment date.
(xxii) Post-modification ARM negative amortization indicator. Indicate yes or no whether a negative amortization feature is part of the loan as of the modification effective payment date.
(xxiii) Post-modification ARM negative amortization cap. Provide the maximum percentage of negative amortization allowed on the loan as of the modification effective payment date.
(22) Information related to loan modifications involving interest-only periods. If the loan terms for the most recent loan modification include an interest only period, provide the following additional information:
(i) Post-modification interest-only term. Provide the number of months of the interest-only period from the modification effective payment date.
(ii) Post-modification interest-only last payment date. Provide the date of the last interest-only payment as of the modification effective payment date.
(23) Post-modification balloon payment amount. Provide the new balloon payment amount due at maturity as a result of the loan modification, not including deferred amounts.
(24) Information related to step loans. If the loans terms for the most recent loan modification agreement call for the interest rate to step up over time, provide the following additional information:
(i) Post-modification interest rate step indicator. Indicate whether the terms of the modification agreement call for the interest rate to step up over time.
(ii) Post-modification step interest rate. Provide the rate(s) that will apply at each change date as stated in the loan modification agreement. All rates must be provided, not just the first change rate, unless there is only a single change date.
(iii) Post-modification step date. Provide the date(s) at which the next rate and/or payment change will occur per the loan modification agreement. All dates must be provided, not just the first change, unless there is only a single change date.
(iv) Post-modification—step principal and interest. Provide the principal and interest payment(s) that will apply at each change date as stated in the loan modification agreement. All payments must be provided, not just the first change payment, unless there is only a single change date.
(v) Post-modification—number of steps. Provide the total number of step rate adjustments under the step agreement.
(vi) Post-modification maximum future rate under step agreement. Provide the maximum interest rate to which the loan will step up.
(vii) Post-modification date of maximum rate under step agreement. Provide the date on which the maximum interest rate will be reached.
(25) Non-interest bearing principal deferred amount (cumulative). Provide the total amount of principal deferred (or forborne) by the modification that is not subject to interest accrual.
(26) Non-interest bearing principal deferred amount (reporting period). Provide the total amount of principal deferred by the modification that is not subject to interest accrual.
(27) Recovery of deferred principal (reporting period). Provide the amount of deferred principal collected from the obligor during the reporting period.
(28) Non-interest bearing deferred paid-in-full amount. If the loan had a principal forbearance and was paid in full or liquidated, provide the amount paid towards the amount of the principal forbearance.
(29) Non-interest bearing deferred interest and fees amount (reporting period). Provide the total amount of interest and expenses deferred by the modification that is not subject to interest accrual during the reporting period.
(30) Non-interest bearing deferred interest and fees amount (cumulative). Provide the total amount of interest and expenses deferred by the modification that is not subject to interest accrual.
(31) Recovery of deferred interest and fees (reporting period). Provide the amount of deferred interest and fees collected during the reporting period.
(n) Information related to forbearance or trial modification. If the type of loss mitigation is forbearance or a trial modification, provide the following additional information. A forbearance plan refers to a period during which either no payment or a payment amount less than the contractual obligation is required from the obligor. A trial modification refers to a temporary loan modification during which an obligor's application for a permanent loan modification is under evaluation.
(1) Most recent forbearance plan or trial modification start date. Provide the date on which a payment change pursuant to the most recent forbearance plan or trial modification started.
(2) Most recent forbearance plan or trial modification scheduled end date. Provide the date on which a payment change pursuant to the most recent forbearance plan or trial modification is scheduled to end.
(3) Most recent trial modification violated date. Provide the date on which the obligor ceased complying with the terms of the most recent trial modification.
(o) Information related to repayment plan. If the type of loss mitigation is a repayment plan, provide the following additional information. A repayment plan refers to a period during which an obligor has agreed to make monthly mortgage payments greater than the contractual installment in an effort to bring a delinquent loan current.
(1) Most recent repayment plan start date. Provide the date on which the most recent repayment plan started.
(2) Most recent repayment plan scheduled end date. Provide the date on which the most recent repayment plan is scheduled to end.
(3) Most recent repayment plan violated date. Provide the date on which the obligor ceased complying with the terms of the most recent repayment plan.
(p) Information related to short sales. Short sale refers to the process in which a servicer workers with a delinquent obligor to sell the property prior to the foreclosure sale. If the type of loss mitigation is short sale, provide the following information:
(1) Short sale accepted offer amount. Provide the amount accepted for a pending short sale.
(2) [Reserved]
(q) Information related to loss mitigation exit. If the loan has exited loss mitigation efforts during the reporting period, provide the following additional information:
(1) Most recent loss mitigation exit date. Provide the date on which the servicer deemed the most recent loss mitigation effort to have ended.
(2) Most recent loss mitigation exit code. Indicate the code that describes the reason the most recent loss mitigation effort ended.
(r) Information related to loans in the foreclosure process. If the loan is in foreclosure, provide the following additional information:
(1) Attorney referral date. Provide the date on which the loan was referred to a foreclosure attorney.
(2) Foreclosure delay reason. Indicate the code that describes the reason for delay within the foreclosure process.
(3) Foreclosure exit date. If the loan exited foreclosure during the reporting period, provide the date on which the loan exited foreclosure.
(4) Foreclosure exit reason. If the loan exited foreclosure during the reporting period, indicate the code that describes the reason the foreclosure proceeding ended.
(5) NOI Date. If a notice of intent (NOI) has been sent, provide the date on which the servicer sent the NOI correspondence to the obligor informing the obligor of the acceleration of the loan and pending initiation of foreclosure action.
(s) Information related to REO. REO (Real Estate Owned) refers to property owned by a lender after an unsuccessful sale at a foreclosure auction. If the loan is REO, provide the following additional information:
(1) Most recent accepted REO offer amount. If an REO offer has been accepted, provide the amount accepted for the REO sale.
(2) Most recent accepted REO offer date. If an REO offer has been accepted, provide the date on which the REO sale amount was accepted.
(3) Gross liquidation proceeds. If the REO sale has closed, provide the gross amount due to the issuing entity as reported on Line 420 of the HUD-1 settlement statement.
(4) Net sales proceeds. If the REO sale has closed, provide the net proceeds received from the escrow closing (before servicer reimbursement).
(5) Reporting period loss amount passed to issuing entity. Provide the cumulative loss amount passed through to the issuing entity during the reporting period, including subsequent loss adjustments and any forgiven principal as a result of a modification that was passed through to the issuing entity.
(6) Cumulative total loss amount passed to issuing entity. Provide the loss amount passed through to the issuing entity to date, including any forgiven principal as a result of a modification that was passed through to the issuing entity.
(7) Subsequent recovery amount. Provide the reporting period amount recovered subsequent to the initial gain/loss recognized at the time of liquidation.
(8) Eviction indicator. Indicate whether an eviction process has begun.
(9) REO exit date. If the loan exited REO during the reporting period, provide the date on which the loan exited REO status.
(10) REO exit reason. If the loan exited REO during the reporting period, indicate the code that describes the reason the loan exited REO status.
(t) Information related to losses. (1) Information related to loss claims. (i) UPB at liquidation. Provide the actual unpaid principal balance (UPB) at the time of liquidation.
(ii) Servicing fees claimed. Provide the amount of accrued servicing fees claimed at time of servicer reimbursement after liquidation.
(iii) Servicer advanced amounts reimbursed—principal. Provide the total amount of unpaid principal advances made by the servicer that were reimbursed to the servicer.
(iv) Servicer advanced amounts reimbursed—interest. Provide the total amount of unpaid interest advances made by the servicer that were reimbursed to the servicer.
(v) Servicer advanced amount reimbursed—taxes and insurance. Provide the total amount of any unpaid escrow amounts advanced by the servicer that were reimbursed to the servicer.
(vi) Servicer advanced amount reimbursed—corporate. Provide the total amount of any outstanding advances of property inspection and preservation expenses made by the servicer that were reimbursed to the servicer.
(vii) REO management fees. If the loan is in REO, provide the total amount of REO management fees (including auction fees) paid over the life of the loan.
(viii) Cash for keys/cash for deed. Provide the total amount paid to the obligor or tenants in exchange for vacating the property, or the payment to the obligor to accelerate a deed-in-lieu process or complete a redemption period.
(ix) Performance incentive fees. Provide the total amount paid to the servicer in exchange for carrying out a deed-in-lieu or short sale or similar activities.
(2) [Reserved]
(u) Information related to mortgage insurance claims. If a mortgage insurance claim (MI claim) has been submitted to the primary mortgage insurance company for reimbursement, provide the following additional information:
(1) MI claim filed date. Provide the date on which the servicer filed an MI claim.
(2) MI claim amount. Provide the amount of the MI claim filed by the servicer.
(3) MI claim paid date. If the MI claim has been paid, provide the date on which the MI company paid the MI claim.
(4) MI claim paid amount. If the MI claim has been decided, provide the amount of the claim paid by the MI company.
(5) MI claim denied/rescinded date. If the MI claim has been denied or rescinded, provide the final MI denial date after all servicer appeals.
(6) Marketable title transferred date. If the deed for the property has been conveyed to the MI company, provide the date of actual title conveyance to the MI company.
(v) Information related to delinquent loans. (1) Non-pay status. Indicate the code that describes the delinquency status of the loan.
(2) Reporting action code. Further indicate the code that defines the default/delinquent status of the loan.
Item 2. Commercial mortgages. If the asset pool includes commercial mortgages, provide the following data for each loan in the asset pool:
(a) Asset numbers. (1) Asset number type. Identify the source of the asset number used to specifically identify each asset in the pool.
(2) Asset number. Provide the unique ID number of the asset.
Instruction to paragraph (a)(2): The asset number must reference a single asset within the pool and should be the same number that will be used to identify the asset for all reports that would be required of an issuer under Sections 13 or 15(d) of the Exchange Act (15 U.S.C. 78m or 78o(d)). If an asset is removed and replaced with another asset, the asset added to the pool should be assigned a unique asset number applicable to only that asset.
(3) Group ID. Indicate the alpha-numeric code assigned to each loan group within a securitization.
(b) Reporting period. (1) Reporting period begin date. Specify the beginning date of the reporting period.
(2) Reporting period end date. Specify the ending date of the reporting period.
(c) General information about the commercial mortgage. (1) Originator. Identify the name or MERS organization number of the originator entity.
(2) Origination date. Provide the date the loan was originated.
(3) Original loan amount. Indicate the amount of the loan at the time the loan was originated.
(4) Original loan term. Indicate the term of the loan in months at the time the loan was originated.
(5) Maturity date. Indicate the date the final scheduled payment is due per the loan documents.
(6) Original amortization term. Indicate the number of months that would have been required to retire the loan through regular payments, as determined at the origination date of the loan.
(7) Original interest rate. Provide the rate of interest at the time the loan was originated.
(8) Interest rate at securitization. Indicate the annual gross interest rate used to calculate interest for the loan as of securitization.
(9) Interest accrual method. Provide the code that indicates the “number of days” convention used to calculate interest.
(10) Original interest rate type. Indicate whether the interest rate on the loan is fixed, adjustable, step or other.
(11) Original interest-only term. Indicate the number of months in which the obligor is permitted to pay only interest on the loan.
(12) First loan payment due date. Provide the date on which the borrower must pay the first full interest and/or principal payment due on the mortgage in accordance with the loan documents.
(13) Underwriting indicator. Indicate whether the loan or asset met the criteria for the first level of solicitation, credit-granting or underwriting criteria used to originate the pool asset.
(14) Lien position at securitization. Indicate the code that describes the lien position for the loan as of securitization.
(15) Loan structure. Indicate the code that describes the type of loan structure including the seniority of participated mortgage loan components. The code relates to the loan within the securitization.
(16) Payment type. Indicate the code that describes the type or method of payment for a loan.
(17) Periodic principal and interest payment at securitization. Provide the total amount of principal and interest due on the loan in effect as of securitization.
(18) Scheduled principal balance at securitization. Indicate the outstanding scheduled principal balance of the loan as of securitization.
(19) Payment frequency. Indicate the code that describes the frequency mortgage loan payments are required to be made.
(20) Number of properties at securitization. Provide the number of properties which serve as mortgage collateral for the loan as of securitization.
(21) Number of properties. Provide the number of properties which serve as mortgage collateral for the loan as of the end of the reporting period.
(22) Grace days allowed. Provide the number of days after a mortgage payment is due in which the lender will not require a late payment charge in accordance with the loan documents. Does not include penalties associated with default interest.
(23) Interest only indicator. Indicate yes or no whether this is a loan for which scheduled interest only is payable, whether for a temporary basis or until the full loan balance is due.
(24) Balloon indicator. Indicate yes or no whether the loan documents require a lump-sum payment of principal at maturity.
(25) Prepayment premium indicator. Indicate yes or no whether the obligor is subject to prepayment penalties.
(26) Negative amortization indicator. Indicate yes or no whether negative amortization (interest shortage) amounts are permitted to be added back to the unpaid principal balance of the loan if monthly payments should fall below the true amortized amount.
(27) Modification indicator. Indicate yes or no whether the loan has been modified from its original terms.
(28) Information related to ARMs. If the loan is an ARM, provide the following additional information for each loan:
(i) ARM index. Specify the code that describes the index on which an adjustable interest rate is based.
(ii) First rate adjustment date. Provide the date on which the first interest rate adjustment becomes effective (subsequent to loan securitization).
(iii) First payment adjustment date. Provide the date on which the first adjustment to the regular payment amount becomes effective (after securitization).
(iv) ARM margin. Indicate the spread added to the index of an ARM loan to determine the interest rate at securitization.
(v) Lifetime rate cap. Indicate the maximum interest rate that can be in effect during the life of the loan.
(vi) Lifetime rate floor. Indicate the minimum interest rate that can be in effect during the life of the loan.
(vii) Periodic rate increase limit. Provide the maximum amount the interest rate can increase from any period to the next.
(viii) Periodic rate decrease limit. Provide the maximum amount the interest rate can decrease from any period to the next.
(ix) Periodic pay adjustment maximum amount. Provide the maximum amount the principal and interest constant can increase or decrease on any adjustment date.
(x) Periodic pay adjustment maximum percentage. Provide the maximum percentage amount the payment can increase or decrease from any period to the next.
(xi) Rate reset frequency. Indicate the code describing the frequency which the periodic mortgage rate is reset due to an adjustment in the ARM index.
(xii) Pay reset frequency. Indicate the code describing the frequency which the periodic mortgage payment will be adjusted.
(xiii) Index look back in days. Provide the number of days prior to an interest rate adjustment effective date used to determine the appropriate index rate.
(29) Information related to prepayment penalties. If the obligor is subject to prepayment penalties, provide the following additional information for each loan:
(i) Prepayment lock-out end date. Provide the effective date after which the lender allows prepayment of a loan.
(ii) Yield maintenance end date. Provide the date after which yield maintenance prepayment penalties are no longer effective.
(iii) Prepayment premium end date. Provide the effective date after which prepayment premiums are no longer effective.
(30) Information related to negative amortization. If the loan allows for negative amortization, provide the following additional information for each loan:
(i) Maximum negative amortization allowed (% of original balance). Provide the maximum percentage of the original loan balance that can be added to the original loan balance as the result of negative amortization.
(ii) Maximum negative amortization allowed. Provide the maximum amount of the original loan balance that can be added to the original loan balance as the result of negative amortization.
(iii) Negative amortization/deferred interest capitalized amount. Indicate the amount for the reporting period that was capitalized (added to) the principal balance.
(iv) Deferred interest—cumulative. Indicate the cumulative deferred interest for the reporting period and prior reporting cycles net of any deferred interest collected.
(v) Deferred interest collected. Indicate the amount of deferred interest collected during the reporting period.
(d) Information related to the property. Provide the following information for each of the properties that collateralizes a loan identified above:
(1) Property name. Provide the name of the property which serves as mortgage collateral. If the property has been defeased, then populate with “defeased.”
(2) Property address. Specify the address of the property which serves as mortgage collateral. If multiple properties, then print “various.” If the property has been defeased then leave field empty. For substituted properties, populate with the new property information.
(3) Property city. Specify the city name where the property which serves as mortgage collateral is located. If the property has been defeased, then leave field empty.
(4) Property state. Indicate the two character abbreviated code representing the state in which the property which serves as mortgage collateral is located.
(5) Property zip code. Indicate the zip (or postal) code for the property which serves as mortgage collateral.
(6) Property county. Indicate the county in which the property which serves as mortgage collateral is located.
(7) Property type. Indicate the code that describes how the property is being used.
(8) Net rentable square feet. Provide the net rentable square feet area of the property.
(9) Net rentable square feet at securitization. Provide the net rentable square feet area of the property as determined at the time the property is contributed to the pool as collateral.
(10) Number of units/beds/rooms. If the property type is multifamily, self-storage, healthcare, lodging or mobile home park, provide the number of units/beds/rooms of the property.
(11) Number of units/beds/rooms at securitization. If the property type is multifamily, self-storage, healthcare, lodging or mobile home park, provide the number of units/beds/rooms of the property at securitization.
(12) Year built. Provide the year that the property was built.
(13) Year last renovated. Provide the year that the last major renovation/new construction was completed on the property.
(14) Valuation amount at securitization. Provide the valuation amount of the property as of the valuation date at securitization.
(15) Valuation source at securitization. Specify the code that identifies the source of the property valuation.
(16) Valuation date at securitization. Provide the date the valuation amount at securitization was determined.
(17) Most recent value. If an additional property valuation was obtained by any transaction party or its affiliates after the valuation obtained at securitization, provide the most recent valuation amount.
(18) Most recent valuation date. Provide the date of the most recent valuation.
(19) Most recent valuation source. Specify the code that identifies the source of the most recent property valuation.
(20) Physical occupancy at securitization. Provide the percentage of rentable space occupied by tenants.
(21) Most recent physical occupancy. Provide the most recent available percentage of rentable space occupied by tenants.
(22) Property status. Provide the code that describes the status of the property.
(23) Defeasance option start date. Provide the date when the defeasance option becomes available.
(24) Defeasance status. Provide the code that indicates if a loan has or is able to be defeased.
(25) Largest tenant.
(i) Largest tenant. Identify the tenant that leases the largest square feet of the property based on the most recent annual lease rollover review.
Instruction to paragraph (d)(25)(i): If the tenant is not occupying the space but is still paying rent, print “Dark” after tenant name. If tenant has sub-leased the space, print “Sub-leased/name” after tenant name.
(ii) Square feet of largest tenant. Provide total number of square feet leased by the largest tenant based on the most recent annual lease rollover review.
(iii) Date of lease expiration of largest tenant. Provide the date of lease expiration for the largest tenant.
(26) Second largest tenant.
(i) Second largest tenant. Identify the tenant that leases the second largest square feet of the property based on the most recent annual lease rollover review.
Instruction to paragraph (d)(26)(i): If the tenant is not occupying the space but is still paying rent, print “Dark” after tenant name. If tenant has sub-leased the space, print “Sub-leased/name” after tenant name.
(ii) Square feet of second largest tenant. Provide the total number of square feet leased by the second largest tenant based on the most recent annual lease rollover review.
(iii) Date of lease expiration of second largest tenant. Provide the date of lease expiration for the second largest tenant.
(27) Third largest tenant.
(i) Third largest tenant. Identify the tenant that leases the third largest square feet of the property based on the most recent annual lease rollover review.
Instruction to paragraph (d)(27)(i): If the tenant is not occupying the space but is still paying rent, print “Dark” after tenant name. If tenant has sub-leased the space, print “Sub-leased/name” after tenant name.
(ii) Square feet of third largest tenant. Provide the total number square feet leased by the third largest tenant based on the most recent annual lease rollover review.
(iii) Date of lease expiration of third largest tenant. Provide the date of lease expiration for the third largest tenant.
(28) Financial information related to the property. Provide the following information as of the most recent date available:
(i) Date of financials as of securitization. Provide the date of the operating statement for the property used to underwrite the loan.
(ii) Most recent financial as of start date. Specify the first date of the period for the most recent, hard copy operating statement (e.g., year-to-date or trailing 12 months).
(iii) Most recent financial as of end date. Specify the last day of the period for the most recent, hard copy operating statement (e.g., year-to-date or trailing 12 months).
(iv) Revenue at securitization. Provide the total underwritten revenue amount from all sources for a property as of securitization.
(v) Most recent revenue. Provide the total revenues for the most recent operating statement reported.
(vi) Operating expenses at securitization. Provide the total underwritten operating expenses as of securitization. Include real estate taxes, insurance, management fees, utilities, and repairs and maintenance. Exclude capital expenditures, tenant improvements, and leasing commissions.
(vii) Operating expenses. Provide the total operating expenses for the most recent operating statement. Include real estate taxes, insurance, management fees, utilities, and repairs and maintenance. Exclude capital expenditures, tenant improvements, and leasing commissions.
(viii) Net operating income at securitization. Provide the total underwritten revenues less total underwritten operating expenses prior to application of mortgage payments and capital items for all properties as of securitization.
(ix) Most recent net operating income. Provide the total revenues less total operating expenses before capital items and debt service per the most recent operating statement.
(x) Net cash flow at securitization. Provide the total underwritten revenue less total underwritten operating expenses and capital costs as of securitization.
(xi) Most recent net cash flow. Provide the total revenue less the total operating expenses and capital costs but before debt service per the most recent operating statement.
(xii) Net operating income or net cash flow indicator at securitization. Indicate the code that describes the method used to calculate at securitization net operating income or net cash flow.
(xiii) Net operating income or net cash flow indicator. Indicate the code that describes the method used to calculate net operating income or net cash flow.
(xiv) Most recent debt service amount. Provide the amount of total scheduled or actual payments that cover the same number of months as the most recent financial operating statement.
(xv) Debt service coverage ratio (net operating income) at securitization. Provide the ratio of underwritten net operating income to debt service as of securitization.
(xvi) Most recent debt service coverage ratio (net operating income). Provide the ratio of net operating income to debt service during the most recent operating statement reported.
(xvii) Debt service coverage ratio (net cash flow) at securitization. Provide the ratio of underwritten net cash flow to debt service as of securitization.
(xviii) Most recent debt service coverage ratio (net cash flow). Provide the ratio of net cash flow to debt service for the most recent financial operating statement.
(xix) Debt service coverage ratio indicator at securitization. If there are multiple properties underlying the loan, indicate the code that describes how the debt service coverage ratio was calculated.
(xx) Most recent debt service coverage ratio indicator. Indicate the code that describes how the debt service coverage ratio was calculated for the most recent financial operating statement.
(xxi) Date of the most recent annual lease rollover review. Provide the date of the most recent annual lease rollover review.
(e) Information related to activity on the loan. (1) Asset added indicator. Indicate yes or no whether the asset was added during the reporting period.
Instruction to paragraph (e)(1): A response to this data point is required only when assets are added to the asset pool after the final prospectus under § 230.424 of this chapter is filed.
(2) Modification indicator—reporting period. Indicate yes or no whether the loan was modified during the reporting period.
(3) Reporting period beginning scheduled loan balance. Indicate the scheduled balance as of the beginning of the reporting period.
(4) Total scheduled principal and interest due. Provide the total amount of principal and interest due on the loan in the month corresponding to the current distribution date.
(5) Reporting period interest rate. Indicate the annualized gross interest rate used to calculate the scheduled interest amount due for the reporting period.
(6) Servicer and trustee fee rate. Indicate the sum of annual fee rates payable to the servicers and trustee.
(7) Scheduled interest amount. Provide the amount of gross interest payment that was scheduled to be collected during the reporting period.
(8) Other interest adjustment. Indicate any unscheduled interest adjustments during the reporting period.
(9) Scheduled principal amount. Indicate the principal payment amount that was scheduled to be collected during the reporting period.
(10) Unscheduled principal collections. Provide the principal prepayments and other unscheduled payments of principal received on the loan during the reporting period.
(11) Other principal adjustments. Indicate any other amounts that caused the principal balance of the loan to be decreased or increased during the reporting period, which are not considered unscheduled principal collections and are not scheduled principal amounts.
(12) Reporting period ending actual balance. Indicate the outstanding actual balance of the loan as of the end of the reporting period.
(13) Reporting period ending scheduled balance. Indicate the scheduled or stated principal balance for the loan (as defined in the servicing agreement) as of the end of the reporting period.
(14) Paid through date. Provide the date the loan's scheduled principal and interest is paid through as of the end of the reporting period.
(15) Hyper-amortizing date. Provide the date after which principal and interest may amortize at an accelerated rate, and/or interest expense to the mortgagor increases substantially.
(16) Information related to servicer advances.
(i) Servicing advance methodology. Indicate the code that describes the manner in which principal and/or interest are advanced by the servicer.
(ii) Non-recoverability determined. Indicate yes or no whether the master servicer/special servicer has ceased advancing principal and interest and/or servicing the loan.
(iii) Total principal and interest advance outstanding. Provide the total outstanding principal and interest advances made (or scheduled to be made by the distribution date) by the servicer(s).
(iv) Total taxes and insurance advances outstanding. Provide the total outstanding tax and insurance advances made by the servicer(s) as of the end of the reporting period.
(v) Other expenses advance outstanding. Provide the total outstanding other or miscellaneous advances made by the servicer(s) as of the end of the reporting period.
(17) Payment status of loan. Provide the code that indicates the payment status of the loan.
(18) Information related to activity on ARM loans. If the loan is an ARM, provide the following additional information:
(i) ARM index rate. Provide the index rate used to determine the gross interest for the reporting period.
(ii) Next interest rate. Provide the annualized gross interest rate that will be used to determine the next scheduled interest payment.
(iii) Next interest rate change adjustment date. Provide the next date that the interest rate is scheduled to change.
(iv) Next payment adjustment date. Provide the date that the amount of scheduled principal and/or interest is next scheduled to change.
(f) Information related to servicers. (1) Primary servicer. Identify the name of the entity that services or will have the right to service the asset.
(2) Most recent special servicer transfer date. Provide the date the transfer letter, email, etc. provided by the master servicer is accepted by the special servicer.
(3) Most recent master servicer return date. Provide the date of the return letter, email, etc. provided by the special servicer which is accepted by the master servicer.
(g) Asset subject to demand. Indicate yes or no whether during the reporting period the loan was the subject of a demand to repurchase or replace for breach of representations and warranties, including investor demands upon a trustee. If the loan is the subject of a demand to repurchase or replace for breach of representations and warranties, including investor demands upon a trustee, provide the following additional information:
(1) Status of asset subject to demand. If the loan is the subject of a demand to repurchase or replace for breach of representations and warranties, including investor demands upon a trustee, indicate the code that describes the status of the repurchase demand as of the end of the reporting period.
(2) Repurchase amount. Provide the amount paid to repurchase the loan from the pool.
(3) Demand resolution date. Indicate the date the loan repurchase or replacement demand was resolved.
(4) Repurchaser. Specify the name of the repurchaser.
(5) Repurchase or replacement reason. Indicate the code that describes the reason for the repurchase.
(h) Realized loss to trust. Indicate the difference between net proceeds (after liquidation expenses) and the scheduled or stated principal of the loan as of the beginning of the reporting period.
(i) Information related to prepayments. If a prepayment was received, provide the following additional information for each loan:
(1) Liquidation/Prepayment code. Indicate the code assigned to any unscheduled principal payments or liquidation proceeds received during the reporting period.
(2) Liquidation/Prepayment date. Provide the effective date on which an unscheduled principal payment or liquidation proceeds were received.
(3) Prepayment premium/yield maintenance received. Indicate the amount received from a borrower during the reporting period in exchange for allowing a borrower to pay off a loan prior to the maturity or anticipated repayment date.
(j) Workout strategy. Indicate the code that best describes the steps being taken to resolve the loan.
(k) Information related to modifications. If the loan has been modified from its original terms, provide the following additional information about the most recent loan modification:
(1) Date of last modification. Indicate the date of the most recent modification. A modification includes any material change to the loan document, excluding assumptions.
(2) Modification code. Indicate the code that describes the type of loan modification.
(3) Post-modification interest rate. Indicate the new initial interest rate to which the loan was modified.
(4) Post-modification payment amount. Indicate the new initial principal and interest payment amount to which the loan was modified.
(5) Post-modification maturity date. Indicate the new maturity date of the loan after the modification.
(6) Post-modification amortization period. Indicate the new amortization period in months after the modification.
Item 3. Automobile loans. If the asset pool includes automobile loans, provide the following data for each loan in the asset pool:
(a) Asset numbers. (1) Asset number type. Identify the source of the asset number used to specifically identify each asset in the pool.
(2) Asset number. Provide the unique ID number of the asset.
Instruction to paragraph (a)(2): The asset number must reference a single asset within the pool and should be the same number that will be used to identify the asset for all reports that would be required of an issuer under Sections 13 or 15(d) of the Exchange Act (15 U.S.C. 78m or 78o(d)). If an asset is removed and replaced with another asset, the asset added to the pool should be assigned a unique asset number applicable to only that asset.
(b) Reporting period. (1) Reporting period begin date. Specify the beginning date of the reporting period.
(2) Reporting period end date. Specify the ending date of the reporting period.
(c) General information about the automobile loan. (1) Originator. Identify the name of the entity that originated the loan.
(2) Origination date. Provide the date the loan was originated.
(3) Original loan amount. Indicate the amount of the loan at the time the loan was originated.
(4) Original loan term. Indicate the term of the loan in months at the time the loan was originated.
(5) Loan maturity date. Indicate the month and year in which the final payment on the loan is scheduled to be made.
(6) Original interest rate. Provide the rate of interest at the time the loan was originated.
(7) Interest calculation type. Indicate whether the interest rate calculation method is simple or other.
(8) Original interest rate type. Indicate whether the interest rate on the loan is fixed, adjustable or other.
(9) Original interest-only term. Indicate the number of months from origination in which the obligor is permitted to pay only interest on the loan beginning from when the loan was originated.
(10) Original first payment date. Provide the date of the first scheduled payment that was due after the loan was originated.
(11) Underwriting indicator. Indicate whether the loan or asset met the criteria for the first level of solicitation, credit-granting or underwriting criteria used to originate the pool asset.
(12) Grace period. Indicate the number of months during which interest accrues but no payments are due from the obligor.
(13) Payment type. Specify the code indicating how often payments are required or if a balloon payment is due.
(14) Subvented. Indicate yes or no to whether a form of subsidy is received on the loan, such as cash incentives or favorable financing for the buyer.
(d) Information related to the vehicle. (1) Vehicle manufacturer. Provide the name of the manufacturer of the vehicle.
(2) Vehicle model. Provide the name of the model of the vehicle.
(3) New or used. Indicate whether the vehicle financed is new or used at the time of origination.
(4) Model year. Indicate the model year of the vehicle.
(5) Vehicle type. Indicate the code describing the vehicle type.
(6) Vehicle value. Indicate the value of the vehicle at the time of origination.
(7) Source of vehicle value. Specify the code that describes the source of the vehicle value.
(e) Information related to the obligor. (1) Obligor credit score type. Specify the type of the standardized credit score used to evaluate the obligor during the loan origination process.
(2) Obligor credit score. Provide the standardized credit score of the obligor used to evaluate the obligor during the loan origination process.
(3) Obligor income verification level. Indicate the code describing the extent to which the obligor's income was verified during the loan origination process.
(4) Obligor employment verification. Indicate the code describing the extent to which the obligor's employment was verified during the loan origination process.
(5) Co-obligor present indicator. Indicate whether the loan has a co-obligor.
(6) Payment-to-income ratio. Provide the scheduled monthly payment amount as a percentage of the total monthly income of the obligor and any other obligor at the origination date. Provide the methodology for determining monthly income in the prospectus.
(7) Geographic location of obligor. Specify the location of the obligor by providing the current U.S. state or territory.
(f) Information related to activity on the loan. (1) Asset added indicator. Indicate yes or no whether the asset was added during the reporting period.
Instruction to paragraph (f)(1): A response to this data point is required only when assets are added to the asset pool after the final prospectus under § 230.424 of this chapter is filed.
(2) Remaining term to maturity. Indicate the number of months from the end of the reporting period to the loan maturity date.
(3) Modification indicator—reporting period. Indicates yes or no whether the asset was modified from its original terms during the reporting period.
(4) Servicing advance method. Specify the code that indicates a servicer's responsibility for advancing principal or interest on delinquent loans.
(5) Reporting period beginning loan balance. Indicate the outstanding principal balance of the loan as of the beginning of the reporting period.
(6) Next reporting period payment amount due. Indicate the total payment due to be collected in the next reporting period.
(7) Reporting period interest rate. Indicate the current interest rate for the loan in effect during the reporting period.
(8) Next interest rate. For loans that have not been paid off, indicate the interest rate that is in effect for the next reporting period.
(9) Servicing fee—percentage. If the servicing fee is based on a percentage, provide the percentage used to calculate the aggregate servicing fee.
(10) Servicing fee—flat-fee. If the servicing fee is based on a flat-fee amount, indicate the monthly servicing fee paid to all servicers.
(11) Other loan-level servicing fee(s) retained by servicer. Provide the amount of all other fees earned by loan administrators that reduce the amount of funds remitted to the issuing entity (including subservicing, master servicing, trustee fees, etc.).
(12) Other assessed but uncollected servicer fees. Provide the cumulative amount of late charges and other fees that have been assessed by the servicer, but not paid by the obligor.
(13) Scheduled interest amount. Indicate the interest payment amount that was scheduled to be collected during the reporting period.
(14) Scheduled principal amount. Indicate the principal payment amount that was scheduled to be collected during the reporting period.
(15) Other principal adjustments. Indicate any other amounts that caused the principal balance of the loan to be decreased or increased during the reporting period.
(16) Reporting period ending actual balance. Indicate the actual balance of the loan as of the end of the reporting period.
(17) Reporting period scheduled payment amount. Indicate the total payment amount that was scheduled to be collected during the reporting period (including all fees).
(18) Total actual amount paid. Indicate the total payment paid to the servicer during the reporting period.
(19) Actual interest collected. Indicate the gross amount of interest collected during the reporting period, whether or not from the obligor.
(20) Actual principal collected. Indicate the amount of principal collected during the reporting period, whether or not from the obligor.
(21) Actual other amounts collected. Indicate the total of any amounts, other than principal and interest, collected during the reporting period, whether or not from the obligor.
(22) Servicer advanced amount. If amounts were advanced by the servicer during the reporting period, specify the amount.
(23) Interest paid through date. Provide the date through which interest is paid with the payment received during the reporting period, which is the effective date from which interest will be calculated for the application of the next payment.
(24) Zero balance loans. If the loan balance was reduced to zero during the reporting period, provide the following additional information about the loan:
(i) Zero balance effective date. Provide the date on which the loan balance was reduced to zero.
(ii) Zero balance code. Provide the code that indicates the reason the loan's balance was reduced to zero.
(25) Current delinquency status. Indicate the number of days the obligor is delinquent past the obligor's payment due date, as determined by the governing transaction agreement.
(g) Information related to servicers. (1) Primary loan servicer. Provide the name of the entity that services or will have the right to service the loan.
(2) Most recent servicing transfer received date. If a loan's servicing has been transferred, provide the effective date of the most recent servicing transfer.
(h) Asset subject to demand. Indicate yes or no whether during the reporting period the loan was the subject of a demand to repurchase or replace for breach of representations and warranties, including investor demands upon a trustee. If the loan is the subject of a demand to repurchase or replace for breach of representations and warranties, including investor demands upon a trustee, provide the following additional information:
(1) Status of asset subject to demand. Indicate the code that describes the status of the repurchase or replacement demand as of the end of the reporting period.
(2) Repurchase amount. Provide the amount paid to repurchase the loan.
(3) Demand resolution date. Indicate the date the loan repurchase or replacement demand was resolved.
(4) Repurchaser. Specify the name of the repurchaser.
(5) Repurchase or replacement reason. Indicate the code that describes the reason for the repurchase or replacement.
(i) Information related to loans that have been charged off. If the loan has been charged off, provide the following additional information:
(1) Charged-off principal amount. Specify the amount of uncollected principal charged off.
(2) Amounts recovered. If the loan was previously charged off, specify any amounts received after charge-off.
(j) Information related to loan modifications. If the loan has been modified from its original terms, provide the following additional information about the most recent loan modification:
(1) Modification type. Indicate the code that describes the reason the asset was modified during the reporting period.
(2) Payment extension. Provide the number of months the loan was extended during the reporting period.
(k) Repossessed. Indicate yes or no whether the vehicle has been repossessed. If the vehicle has been repossessed, provide the following additional information:
(1) Repossession proceeds. Provide the total amount of proceeds received on disposition (net of repossession fees and expenses).
(2) [Reserved]
Item 4. Automobile leases. If the asset pool includes automobile leases, provide the following data for each lease in the asset pool:
(a) Asset numbers. (1) Asset number type. Identify the source of the asset number used to specifically identify each asset in the pool.
(2) Asset number. Provide the unique ID number of the asset.
Instruction to paragraph (a)(2): The asset number must reference a single asset within the pool and should be the same number that will be used to identify the asset for all reports that would be required of an issuer under Sections 13 or 15(d) of the Exchange Act (15 U.S.C. 78m or 78o(d)). If an asset is removed and replaced with another asset, the asset added to the pool should be assigned a unique asset number applicable to only that asset.
(b) Reporting period. (1) Reporting period begin date. Specify the beginning date of the reporting period.
(2) Reporting period end date. Specify the ending date of the reporting period.
(c) General information about the automobile lease. (1) Originator. Identify the name of the entity that originated the lease.
(2) Origination date. Provide the date the lease was originated.
(3) Acquisition cost. Provide the original acquisition cost of the lease.
(4) Original lease term. Indicate the term of the lease in months at the time the lease was originated.
(5) Scheduled termination date. Indicate the month and year in which the final lease payment is scheduled to be made.
(6) Original first payment date. Provide the date of the first scheduled payment after origination.
(7) Underwriting indicator. Indicate whether the lease met the criteria for the first level of solicitation, credit-granting or underwriting criteria used to originate the pool asset.
(8) Grace period. Indicate the number of months during the term of the lease when no payments are due from the lessee.
(9) Payment type. Specify the code indicating the payment frequency of the lease.
(10) Subvented. Indicate yes or no whether a form of subsidy is received on the lease, such as cash incentives or favorable financing for the lessee.
(d) Information related to the vehicle. (1) Vehicle manufacturer. Provide the name of the manufacturer of the leased vehicle.
(2) Vehicle model. Provide the name of the model of the leased vehicle.
(3) New or used. Indicate whether the leased vehicle is new or used.
(4) Model year. Indicate the model year of the leased vehicle.
(5) Vehicle type. Indicate the code describing the vehicle type.
(6) Vehicle value. Indicate the value of the vehicle at the time of origination.
(7) Source of vehicle value. Specify the code that describes the source of the vehicle value.
(8) Base residual value. Provide the securitized residual value of the leased vehicle.
(9) Source of base residual value. Specify the code that describes the source of the base residual value.
(10) Contractual residual value. Provide the residual value, as stated on the contract, that the lessee would need to pay to purchase the vehicle at the end of the lease term.
(e) Information related to the lessee. (1) Lessee credit score type. Specify the type of the standardized credit score used to evaluate the lessee during the lease origination process.
(2) Lessee credit score. Provide the standardized credit score of the lessee used to evaluate the lessee during the lease origination process.
(3) Lessee income verification level. Indicate the code describing the extent to which the lessee's income was verified during the lease origination process.
(4) Lessee employment verification. Indicate the code describing the extent to which the lessee's employment was verified during the lease origination process.
(5) Co-lessee present indicator. Indicate whether the lease has a co-lessee.
(6) Payment-to-income ratio. Provide the scheduled monthly payment amount as a percentage of the total monthly income of the lessee and any other co-lessee at the origination date. Provide the methodology for determining monthly income in the prospectus.
(7) Geographic location of lessee. Specify the location of the lessee by providing the current U.S. state or territory.
(f) Information related to activity on the lease. (1) Asset added indicator. Indicate yes or no whether the asset was added during the reporting period.
Instruction to paragraph (f)(1): A response to this data point is required only when assets are added to the asset pool after the final prospectus under § 230.424 of this chapter is filed.
(2) Remaining term to maturity. Indicate the number of months from the end of the reporting period to the lease maturity date.
(3) Modification indicator—reporting period. Indicates yes or no whether the asset was modified from its original terms during the reporting period.
(4) Servicing advance method. Specify the code that indicates a servicer's responsibility for advancing principal or interest on delinquent leases.
(5) Reporting period securitization value. Provide the sum of the present values, as of the beginning of the reporting period, of the remaining scheduled monthly payment amounts and the base residual value of the leased vehicle, computed using the securitization value discount rate.
(6) Securitization value discount rate. Provide the discount rate of the lease for the securitization transaction.
(7) Next reporting period payment amount due. Indicate the total payment due to be collected in the next reporting period.
(8) Servicing fee—percentage. If the servicing fee is based on a percentage, provide the percentage used to calculate the aggregate servicing fee.
(9) Servicing fee—flat-fee. If the servicing fee is based on a flat-fee amount, indicate the monthly servicing fee paid to all servicers.
(10) Other lease-level servicing fee(s) retained by servicer. Provide the amount of all other fees earned by lease administrators that reduce the amount of funds remitted to the issuing entity (including subservicing, master servicing, trustee fees, etc.).
(11) Other assessed but uncollected servicer fees. Provide the cumulative amount of late charges and other fees that have been assessed by the servicer, but not paid by the lessee.
(12) Reporting period ending actual balance. Indicate the actual balance of the lease as of the end of the reporting period.
(13) Reporting period scheduled payment amount. Indicate the total payment amount that was scheduled to be collected during the reporting period (including all fees).
(14) Total actual amount paid. Indicate the total lease payment received during the reporting period.
(15) Actual other amounts collected. Indicate the total of any amounts, other than the scheduled lease payment, collected during the reporting period, whether or not from the lessee.
(16) Reporting period ending actual securitization value. Provide the sum of the present values, as of the end of the reporting period, of the remaining scheduled monthly payment amounts and the base residual value of the leased vehicle, computed using the securitization value discount rate.
(17) Servicer advanced amount. If amounts were advanced by the servicer during the reporting period, specify the amount.
(18) Paid through date. Provide the date through which scheduled payments have been made with the payment received during the reporting period, which is the effective date from which amounts due will be calculated for the application of the next payment.
(19) Zero balance leases. If the lease balance was reduced to zero during the reporting period, provide the following additional information about the lease:
(i) Zero balance effective date. Provide the date on which the lease balance was reduced to zero.
(ii) Zero balance code. Provide the code that indicates the reason the lease's balance was reduced to zero.
(20) Current delinquency status. Indicate the number of days the lessee is delinquent past the lessee's payment due date, as determined by the governing transaction agreement.
(g) Information related to servicers. (1) Primary lease servicer. Provide the name of the entity that services or will have the right to service the lease.
(2) Most recent servicing transfer received date. If a lease's servicing has been transferred, provide the effective date of the most recent servicing transfer.
(h) Asset subject to demand. Indicate yes or no whether during the reporting period the lease was the subject of a demand to repurchase or replace for breach of representations and warranties, including investor demands upon a trustee. If the lease is the subject of a demand to repurchase or replace for breach of representations and warranties, including investor demands upon a trustee, provide the following additional information:
(1) Status of asset subject to demand. Indicate the code that describes the status of the repurchase or replacement demand as of the end of the reporting period.
(2) Repurchase amount. Provide the amount paid to repurchase the lease from the pool.
(3) Demand resolution date. Indicate the date the lease repurchase or replacement demand was resolved.
(4) Repurchaser. Specify the name of the repurchaser.
(5) Repurchase or replacement reason. Indicate the code that describes the reason for the repurchase or replacement.
(i) Information related to leases that have been charged off. If the lease has been charged off, provide the following additional information:
(1) Charge-off amounts. Provide the amount charged off on the lease.
(2) [Reserved]
(j) Information related to lease modifications. If the lease has been modified from its original terms, provide the following additional information about the most recent lease modification:
(1) Modification type. Indicate the code that describes the reason the lease was modified during the reporting period.
(2) Lease extension. Provide the number of months the lease was extended during the reporting period.
(k) Information related to lease terminations. If the lease was terminated, provide the following additional information:
(1) Termination indicator. Specify the code that describes the reason why the lease was terminated.
(2) Excess fees. Specify the amount of excess fees received upon return of the vehicle, such as excess wear and tear or excess mileage.
(3) Liquidation proceeds. Provide the liquidation proceeds net of repossession fees, auction fees and other expenses in accordance with standard industry practice.
Item 5. Debt securities. If the asset pool includes debt securities, provide the following data for each security in the asset pool:
(a) Asset numbers. (1) Asset number type. Identify the source of the asset number used to specifically identify each asset in the pool.
(2) Asset number. Provide the standard industry identifier assigned to the asset. If a standard industry identifier is not assigned to the asset, provide a unique ID number for the asset.
Instruction to paragraph (a)(2): The asset number must reference a single asset within the pool and should be the same number that will be used to identify the asset for all reports that would be required of an issuer under Sections 13 or 15(d) of the Exchange Act (15 U.S.C. 78m or 78o(d)). If an asset is removed and replaced with another asset, the asset added to the pool should be assigned a unique asset number applicable to only that asset.
(3) Asset group number. For structures with multiple collateral groups, indicate the collateral group number in which the asset falls.
(b) Reporting period. (1) Reporting period begin date. Specify the beginning date of the reporting period.
(2) Reporting period end date. Specify the ending date of the reporting period.
(c) General information about the underlying security. (1) Issuer. Provide the name of the issuer.
(2) Original issuance date. Provide the date the underlying security was issued. For revolving asset master trusts, provide the issuance date of the receivable that will be added to the asset pool.
(3) Original security amount. Indicate the amount of the underlying security at the time the underlying security was issued.
(4) Original security term. Indicate the initial number of months between the month the underlying security was issued and the security's maturity date.
(5) Security maturity date. Indicate the month and year in which the final payment on the underlying security is scheduled to be made.
(6) Original amortization term. Indicate the number of months in which the underlying security would be retired if the amortizing principal and interest payment were to be paid each month.
(7) Original interest rate. Provide the rate of interest at the time the underlying security was issued.
(8) Accrual type. Provide the code that describes the method used to calculate interest on the underlying security.
(9) Interest rate type. Indicate the code that indicates whether the interest rate on the underlying security is fixed, adjustable, step or other.
(10) Original interest-only term. Indicate the number of months from the date the underlying security was issued in which the obligor is permitted to pay only interest on the underlying security.
(11) First payment date from issuance. Provide the date of the first scheduled payment.
(12) Underwriting indicator. Indicate whether the loan or asset met the criteria for the first level of solicitation, credit-granting or underwriting criteria used to originate the pool asset.
(13) Title of underlying security. Specify the title of the underlying security.
(14) Denomination. Give the minimum denomination of the underlying security.
(15) Currency. Specify the currency of the underlying security.
(16) Trustee. Specify the name of the trustee.
(17) Underlying SEC file number. Specify the registration statement file number of the registration of the offer and sale of the underlying security.
(18) Underlying CIK number. Specify the CIK number of the issuer of the underlying security.
(19) Callable. Indicate whether the security is callable.
(20) Payment frequency. Indicate the code describing the frequency of payments that will be made on the underlying security.
(21) Zero coupon indicator. Indicate yes or no whether an underlying security or agreement is interest bearing.
(d) Information related to activity on the underlying security. (1) Asset added indicator. Indicate yes or no whether the underlying security was added to the asset pool during the reporting period.
Instruction to paragraph (d)(1): A response to this data point is required only when assets are added to the asset pool after the final prospectus under § 230.424 of this chapter is filed.
(2) Modification indicator. Indicates yes or no whether the underlying security was modified from its original terms.
(3) Reporting period beginning asset balance. Indicate the outstanding principal balance of the underlying security as of the beginning of the reporting period.
(4) Reporting period beginning scheduled asset balance. Indicate the scheduled principal balance of the underlying security as of the beginning of the reporting period.
(5) Reporting period scheduled payment amount. Indicate the total payment amount that was scheduled to be collected during the reporting period.
(6) Reporting period interest rate. Indicate the interest rate in effect on the underlying security.
(7) Total actual amount paid. Indicate the total payment paid to the servicer during the reporting period.
(8) Actual interest collected. Indicate the gross amount of interest collected during the reporting period.
(9) Actual principal collected. Indicate the amount of principal collected during the reporting period.
(10) Actual other amounts collected. Indicate the total of any amounts, other than principal and interest, collected during the reporting period.
(11) Other principal adjustments. Indicate any other amounts that caused the principal balance of the underlying security to be decreased or increased during the reporting period.
(12) Other interest adjustments. Indicate any unscheduled interest adjustments during the reporting period.
(13) Scheduled interest amount. Indicate the interest payment amount that was scheduled to be collected during the reporting period.
(14) Scheduled principal amount. Indicate the principal payment amount that was scheduled to be collected during the reporting period.
(15) Reporting period ending actual balance. Indicate the actual balance of the underlying security as of the end of the reporting period.
(16) Reporting period ending scheduled balance. Indicate the scheduled principal balance of the underlying security as of the end of the reporting period.
(17) Servicing fee—percentage. If the servicing fee is based on a percentage, provide the percentage used to calculate the aggregate servicing fee.
(18) Servicing fee—flat-fee. If the servicing fee is based on a flat-fee amount, indicate the monthly servicing fee paid to all servicers as an amount.
(19) Zero balance loans. If the loan balance was reduced to zero during the reporting period, provide the following additional information about the loan:
(i) Zero balance code. Provide the code that indicates the reason the underlying security's balance was reduced to zero.
(ii) Zero balance effective date. Provide the date on which the underlying security's balance was reduced to zero.
(20) Remaining term to maturity. Indicate the number of months from the end of the reporting period to the maturity date of the underlying security.
(21) Current delinquency status. Indicate the number of days the obligor is delinquent as determined by the governing transaction agreement.
(22) Number of days payment is past due. If the obligor has not made the full scheduled payment, indicate the number of days since the scheduled payment date.
(23) Number of payments past due. Indicate the number of payments the obligor is past due as of the end of the reporting period.
(24) Next reporting period payment amount due. Indicate the total payment due to be collected in the next reporting period.
(25) Next due date. For assets that have not been paid off, indicate the next payment due date on the underlying security.
(e) Information related to servicers. (1) Primary servicer. Indicate the name or MERS organization number of the entity that serviced the underlying security during the reporting period.
(2) Most recent servicing transfer received date. If the servicing of the underlying security has been transferred, provide the effective date of the most recent servicing transfer.
(f) Asset subject to demand. Indicate yes or no whether during the reporting period the asset was the subject of a demand to repurchase or replace for breach of representations and warranties, including investor demands upon a trustee. If the asset is the subject of a demand to repurchase or replace for breach of representations and warranties, including investor demands upon a trustee, provide the following additional information:
(1) Status of asset subject to demand. Indicate the code that describes the status of the repurchase or replacement demand as of the end of the reporting period.
(2) Repurchase amount. Provide the amount paid to repurchase the underlying security from the pool.
(3) Demand resolution date. Indicate the date the underlying security repurchase or replacement demand was resolved.
(4) Repurchaser. Specify the name of the repurchaser.
(5) Repurchase or replacement reason. Indicate the code that describes the reason for the repurchase or replacement.
Item 6. Resecuritizations.
(a) If the asset pool includes asset-backed securities, provide the asset-level information specified in Item 5. Debt Securities in this Schedule AL for each security in the asset pool.
(b) If the asset pool includes asset-backed securities issued after November 23, 2016, provide the asset-level information specified in § 229.1111(h) for the assets backing each security in the asset pool.
§ 229.1201   (Item 1201) General instructions to oil and gas industry-specific disclosures.
(a) If oil and gas producing activities are material to the registrant's or its subsidiaries' business operations or financial position, the disclosure specified in this Subpart 229.1200 should be included under appropriate captions (with cross references, where applicable, to related information disclosed in financial statements). However, limited partnerships and joint ventures that conduct, operate, manage, or report upon oil and gas drilling or income programs, that acquire properties either for drilling and production, or for production of oil, gas, or geothermal steam or water, need not include such disclosure.
(b) To the extent that Items 1202 through 1208 (§§ 229.1202-229.1208) call for disclosures in tabular format, as specified in the particular Item, a registrant may modify such format for ease of presentation, to add information or to combine two or more required tables.
(c) The definitions in Rule 4-10(a) of Regulation S-X (17 CFR 210.4-10(a)) shall apply for purposes of this Subpart 229.1200.
(d) For purposes of this Subpart 229.1200, the term by geographic area means, as appropriate for meaningful disclosure in the circumstances:
(1) By individual country;
(2) By groups of countries within a continent; or
(3) By continent.
§ 229.1202   (Item 1202) Disclosure of reserves.
(a) Summary of oil and gas reserves at fiscal year end. (1) Provide the information specified in paragraph (a)(2) of this Item in tabular format as provided below:
Summary of Oil and Gas Reserves as of Fiscal-Year End Based on Average Fiscal-Year Prices
(2) Disclose, in the aggregate and by geographic area and for each country containing 15% or more of the registrant's proved reserves, expressed on an oil-equivalent-barrels basis, reserves estimated using prices and costs under existing economic conditions, for the product types listed in paragraph (a)(4) of this Item, in the following categories:
(i) Proved developed reserves;
(ii) Proved undeveloped reserves;
(iii) Total proved reserves;
(iv) Probable developed reserves (optional);
(v) Probable undeveloped reserves (optional);
(vi) Possible developed reserves (optional); and
(vii) Possible undeveloped reserves (optional).
(3) Reported total reserves shall be simple arithmetic sums of all estimates for individual properties or fields within each reserves category. When probabilistic methods are used, reserves should not be aggregated probabilistically beyond the field or property level; instead, they should be aggregated by simple arithmetic summation.
(4) Disclose separately material reserves of the following product types:
(i) Oil;
(ii) Natural gas;
(iii) Synthetic oil;
(iv) Synthetic gas; and
(v) Sales products of other non-renewable natural resources that are intended to be upgraded into synthetic oil and gas.
(5) If the registrant discloses probable or possible reserves, discuss the uncertainty related to such reserves estimates.
(6) If the registrant has not previously disclosed reserves estimates in a filing with the Commission or is disclosing material additions to its reserves estimates, the registrant shall provide a general discussion of the technologies used to establish the appropriate level of certainty for reserves estimates from material properties included in the total reserves disclosed. The particular properties do not need to be identified.
(7) Preparation of reserves estimates or reserves audit. Disclose and describe the internal controls the registrant uses in its reserves estimation effort. In addition, disclose the qualifications of the technical person primarily responsible for overseeing the preparation of the reserves estimates and, if the registrant represents that a third party conducted a reserves audit, disclose the qualifications of the technical person primarily responsible for overseeing such reserves audit.
(8) Third party reports. If the registrant represents that a third party prepared, or conducted a reserves audit of, the registrant's reserves estimates, or any estimated valuation thereof, or conducted a process review, the registrant shall file a report of the third party as an exhibit to the relevant registration statement or other Commission filing. If the report relates to the preparation of, or a reserves audit of, the registrant's reserves estimates, it must include the following disclosure, if applicable to the type of filing:
(i) The purpose for which the report was prepared and for whom it was prepared;
(ii) The effective date of the report and the date on which the report was completed;
(iii) The proportion of the registrant's total reserves covered by the report and the geographic area in which the covered reserves are located;
(iv) The assumptions, data, methods, and procedures used, including the percentage of the registrant's total reserves reviewed in connection with the preparation of the report, and a statement that such assumptions, data, methods, and procedures are appropriate for the purpose served by the report;
(v) A discussion of primary economic assumptions;
(vi) A discussion of the possible effects of regulation on the ability of the registrant to recover the estimated reserves;
(vii) A discussion regarding the inherent uncertainties of reserves estimates;
(viii) A statement that the third party has used all methods and procedures as it considered necessary under the circumstances to prepare the report;
(ix) A brief summary of the third party's conclusions with respect to the reserves estimates; and
(x) The signature of the third party.
(9) For purposes of this Item 1202, the term reserves audit means the process of reviewing certain of the pertinent facts interpreted and assumptions underlying a reserves estimate prepared by another party and the rendering of an opinion about the appropriateness of the methodologies employed, the adequacy and quality of the data relied upon, the depth and thoroughness of the reserves estimation process, the classification of reserves appropriate to the relevant definitions used, and the reasonableness of the estimated reserves quantities.
(b) Reserves sensitivity analysis (optional). (1) The registrant may, but is not required to, provide the information specified in paragraph (b)(2) of this Item in tabular format as provided below:
Sensitivity of Reserves to Prices by Principal Product Type and Price Scenario
(2) The registrant may, but is not required to, disclose, in the aggregate, an estimate of reserves estimated for each product type based on different price and cost criteria, such as a range of prices and costs that may reasonably be achieved, including standardized futures prices or management's own forecasts.
(3) If the registrant provides disclosure under this paragraph (b), disclose the price and cost schedules and assumptions on which the disclosed values are based.
§ 229.1203   (Item 1203) Proved undeveloped reserves.
(a) Disclose the total quantity of proved undeveloped reserves at year end.
(b) Disclose material changes in proved undeveloped reserves that occurred during the year, including proved undeveloped reserves converted into proved developed reserves.
(c) Discuss investments and progress made during the year to convert proved undeveloped reserves to proved developed reserves, including, but not limited to, capital expenditures.
(d) Explain the reasons why material amounts of proved undeveloped reserves in individual fields or countries remain undeveloped for five years or more after disclosure as proved undeveloped reserves.
§ 229.1204   (Item 1204) Oil and gas production, production prices and production costs.
(a) For each of the last three fiscal years disclose production, by final product sold, of oil, gas, and other products. Disclosure shall be made by geographical area and for each country and field that contains 15% or more of the registrant's total proved reserves expressed on an oil-equivalent-barrels basis unless prohibited by the country in which the reserves are located.
(b) For each of the last three fiscal years disclose, by geographical area:
(1) The average sales price (including transfers) per unit of oil, gas and other products produced; and
(2) The average production cost, not including ad valorem and severance taxes, per unit of production.
Instruction 2 to Item 1204: Production of natural gas should include only marketable production of natural gas on an “as sold” basis. Production will include dry, residue, and wet gas, depending on whether liquids have been extracted before the registrant transfers title. Flared gas, injected gas, and gas consumed in operations should be omitted. Recovered gas-lift gas and reproduced gas should not be included until sold. Synthetic gas, when marketed as such, should be included in natural gas sales.
Instruction 3 to Item 1204: If any product, such as bitumen, is sold or custody is transferred prior to conversion to synthetic oil or gas, the product's production, transfer prices, and production costs should be disclosed separately from all other products.
Instruction 4 to Item 1204: The transfer price of oil and gas (natural and synthetic) produced should be determined in accordance with FASB ASC paragraph 932-235-50-24 (Extractive Activities—Oil and Gas Topic).
Instruction 5 to Item 1204: The average production cost, not including ad valorem and severance taxes, per unit of production should be computed using production costs disclosed pursuant to FASB ASC Topic 932, Extractive Activities—Oil and Gas. Units of production should be expressed in common units of production with oil, gas, and other products converted to a common unit of measure on the basis used in computing amortization.
§ 229.1205   (Item 1205) Drilling and other exploratory and development activities.
(a) For each of the last three fiscal years, by geographical area, disclose:
(1) The number of net productive and dry exploratory wells drilled; and
(2) The number of net productive and dry development wells drilled.
(b) Definitions. For purposes of this Item 1205, the following terms shall be defined as follows:
(1) A dry well is an exploratory, development, or extension well that proves to be incapable of producing either oil or gas in sufficient quantities to justify completion as an oil or gas well.
(2) A productive well is an exploratory, development, or extension well that is not a dry well.
(3) Completion refers to installation of permanent equipment for production of oil or gas, or, in the case of a dry well, to reporting to the appropriate authority that the well has been abandoned.
(4) The number of wells drilled refers to the number of wells completed at any time during the fiscal year, regardless of when drilling was initiated.
(c) Disclose, by geographic area, for each of the last three years, any other exploratory or development activities conducted, including implementation of mining methods for purposes of oil and gas producing activities.
§ 229.1206   (Item 1206) Present activities.
(a) Disclose, by geographical area, the registrant's present activities, such as the number of wells in the process of being drilled (including wells temporarily suspended), waterfloods in process of being installed, pressure maintenance operations, and any other related activities of material importance.
(b) Provide the description of present activities as of a date at the end of the most recent fiscal year or as close to the date that the registrant files the document as reasonably possible.
(c) Include only those wells in the process of being drilled at the “as of” date and express them in terms of both gross and net wells.
(d) Do not include wells that the registrant plans to drill, but has not commenced drilling unless there are factors that make such information material.
§ 229.1207   (Item 1207) Delivery commitments.
(a) If the registrant is committed to provide a fixed and determinable quantity of oil or gas in the near future under existing contracts or agreements, disclose material information concerning the estimated availability of oil and gas from any principal sources, including the following:
(1) The principal sources of oil and gas that the registrant will rely upon and the total amounts that the registrant expects to receive from each principal source and from all sources combined;
(2) The total quantities of oil and gas that are subject to delivery commitments; and
(3) The steps that the registrant has taken to ensure that available reserves and supplies are sufficient to meet such commitments for the next one to three years.
(b) Disclose the information required by this Item:
(1) In a form understandable to investors; and
(2) Based upon the facts and circumstances of the particular situation, including, but not limited to:
(i) Disclosure by geographic area;
(ii) Significant supplies dedicated or contracted to the registrant;
(iii) Any significant reserves or supplies subject to priorities or curtailments which may affect quantities delivered to certain classes of customers, such as customers receiving services under low priority and interruptible contracts;
(iv) Any priority allocations or price limitations imposed by Federal or State regulatory agencies, as well as other factors beyond the registrant's control that may affect the registrant's ability to meet its contractual obligations (the registrant need not provide detailed discussions of price regulation);
(v) Any other factors beyond the registrant's control, such as other parties having control over drilling new wells, competition for the acquisition of reserves and supplies, and the availability of foreign reserves and supplies, which may affect the registrant's ability to acquire additional reserves and supplies or to maintain or increase the availability of reserves and supplies; and
(vi) Any impact on the registrant's earnings and financing needs resulting from its inability to meet short-term or long-term contractual obligations. (See Items 303 and 1209 of Regulation S-K (§§ 229.303 and 229.1209).)
(c) If the registrant has been unable to meet any significant delivery commitments in the last three years, describe the circumstances concerning such events and their impact on the registrant.
(d) For purposes of this Item, available reserves are estimates of the amounts of oil and gas which the registrant can produce from current proved developed reserves using presently installed equipment under existing economic and operating conditions and an estimate of amounts that others can deliver to the registrant under long-term contracts or agreements on a per-day, per-month, or per-year basis.
§ 229.1208   (Item 1208) Oil and gas properties, wells, operations, and acreage.
(a) Disclose, as of a reasonably current date or as of the end of the fiscal year, the total gross and net productive wells, expressed separately for oil and gas (including synthetic oil and gas produced through wells) and the total gross and net developed acreage ( i.e. , acreage assignable to productive wells) by geographic area.
(b) Disclose, as of a reasonably current date or as of the end of the fiscal year, the amount of undeveloped acreage, both leases and concessions, if any, expressed in both gross and net acres by geographic area, together with an indication of acreage concentrations, and, if material, the minimum remaining terms of leases and concessions.
(c) Definitions. For purposes of this Item 1208, the following terms shall be defined as indicated:
(1) A gross well or acre is a well or acre in which the registrant owns a working interest. The number of gross wells is the total number of wells in which the registrant owns a working interest. Count one or more completions in the same bore hole as one well. In a footnote, disclose the number of wells with multiple completions. If one of the multiple completions in a well is an oil completion, classify the well as an oil well.
(2) A net well or acre is deemed to exist when the sum of fractional ownership working interests in gross wells or acres equals one. The number of net wells or acres is the sum of the fractional working interests owned in gross wells or acres expressed as whole numbers and fractions of whole numbers.
(3) Productive wells include producing wells and wells mechanically capable of production.
(4) Undeveloped acreage encompasses those leased acres on which wells have not been drilled or completed to a point that would permit the production of economic quantities of oil or gas regardless of whether such acreage contains proved reserves. Do not confuse undeveloped acreage with undrilled acreage held by production under the terms of the lease.
§ 229.1300   (Item 1300) Definitions.
As used in this subpart, these terms have the following meanings:
Adequate geological evidence, when used in the context of mineral resource determination, means evidence that is sufficient to establish geological and grade or quality continuity with reasonable certainty.
Conclusive geological evidence, when used in the context of mineral resource determination, means evidence that is sufficient to test and confirm geological and grade or quality continuity.
Cut-off grade is the grade ( i.e., the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio.
Development stage issuer is an issuer that is engaged in the preparation of mineral reserves for extraction on at least one material property.
Development stage property is a property that has mineral reserves disclosed, pursuant to this subpart, but no material extraction.
Economically viable, when used in the context of mineral reserve determination, means that the qualified person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the mineral reserve is economically viable under reasonable investment and market assumptions.
Exploration results are data and information generated by mineral exploration programs ( i.e., programs consisting of sampling, drilling, trenching, analytical testing, assaying, and other similar activities undertaken to locate, investigate, define or delineate a mineral prospect or mineral deposit) that are not part of a disclosure of mineral resources or reserves. A registrant must not use exploration results alone to derive estimates of tonnage, grade, and production rates, or in an assessment of economic viability.
Exploration stage issuer is an issuer that has no material property with mineral reserves disclosed.
Exploration stage property is a property that has no mineral reserves disclosed.
Exploration target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnage and a range of grade (or quality), relates to mineralization for which there has been insufficient exploration to estimate a mineral resource.
Feasibility study is a comprehensive technical and economic study of the selected development option for a mineral project, which includes detailed assessments of all applicable modifying factors, as defined by this section, together with any other relevant operational factors, and detailed financial analysis that are necessary to demonstrate, at the time of reporting, that extraction is economically viable. The results of the study may serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project.
(1) A feasibility study is more comprehensive, and with a higher degree of accuracy, than a pre-feasibility study. It must contain mining, infrastructure, and process designs completed with sufficient rigor to serve as the basis for an investment decision or to support project financing.
(2) The confidence level in the results of a feasibility study is higher than the confidence level in the results of a pre-feasibility study. Terms such as full, final, comprehensive, bankable, or definitive feasibility study are equivalent to a feasibility study.
Final market study is a comprehensive study to determine and support the existence of a readily accessible market for the mineral. It must, at a minimum, include product specifications based on final geologic and metallurgical testing, supply and demand forecasts, historical prices for the preceding five or more years, estimated long term prices, evaluation of competitors (including products and estimates of production volumes, sales, and prices), customer evaluation of product specifications, and market entry strategies or sales contracts. The study must provide justification for all assumptions, which must include assumptions concerning the material contracts required to develop and sell the mineral reserves.
Indicated mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an indicated mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an indicated mineral resource has a lower level of confidence than the level of confidence of a measured mineral resource, an indicated mineral resource may only be converted to a probable mineral reserve.
Inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an inferred mineral resource has the lowest level of geological confidence of all mineral resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve.
Initial assessment is a preliminary technical and economic study of the economic potential of all or parts of mineralization to support the disclosure of mineral resources. The initial assessment must be prepared by a qualified person and must include appropriate assessments of reasonably assumed technical and economic factors, together with any other relevant operational factors, that are necessary to demonstrate at the time of reporting that there are reasonable prospects for economic extraction. An initial assessment is required for disclosure of mineral resources but cannot be used as the basis for disclosure of mineral reserves.
Investment and market assumptions, when used in the context of mineral reserve determination, includes all assumptions made about the prices, exchange rates, interest and discount rates, sales volumes, and costs that are necessary to determine the economic viability of the mineral reserves. The qualified person must use a price for each commodity that provides a reasonable basis for establishing that the project is economically viable.
Limited geological evidence, when used in the context of mineral resource determination, means evidence that is only sufficient to establish that geological and grade or quality continuity are more likely than not.
Material has the same meaning as under § 230.405 or § 240.12b-2 of this chapter.
Material of economic interest, when used in the context of mineral resource determination, includes mineralization, including dumps and tailings, mineral brines, and other resources extracted on or within the earth's crust. It does not include oil and gas resources resulting from oil and gas producing activities, as defined in § 210.4-10(a)(16)(i) of this chapter, gases ( e.g., helium and carbon dioxide), geothermal fields, and water.
Measured mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve.
Mineral reserve is an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.
Mineral resource is a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.
Modifying factors are the factors that a qualified person must apply to indicated and measured mineral resources and then evaluate in order to establish the economic viability of mineral reserves. A qualified person must apply and evaluate modifying factors to convert measured and indicated mineral resources to proven and probable mineral reserves. These factors include, but are not restricted to: Mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project.
Preliminary feasibility study (or pre-feasibility study ) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product.
(1) A pre-feasibility study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a qualified person to determine if all or part of the indicated and measured mineral resources may be converted to mineral reserves at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable.
(2) A pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study. A pre-feasibility study is more comprehensive and results in a higher confidence level than an initial assessment.
Preliminary market study is a study that is sufficiently rigorous and comprehensive to determine and support the existence of a readily accessible market for the mineral. It must, at a minimum, include product specifications based on preliminary geologic and metallurgical testing, supply and demand forecasts, historical prices for the preceding five or more years, estimated long term prices, evaluation of competitors (including products and estimates of production volumes, sales, and prices), customer evaluation of product specifications, and market entry strategies. The study must provide justification for all assumptions. It can, however, be less rigorous and comprehensive than a final market study, which is required for a full feasibility study.
Probable mineral reserve is the economically mineable part of an indicated and, in some cases, a measured mineral resource.
Production stage issuer is an issuer that is engaged in material extraction of mineral reserves on at least one material property.
Production stage property is a property with material extraction of mineral reserves.
Proven mineral reserve is the economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource.
Qualified person is an individual who is:
(1) A mineral industry professional with at least five years of relevant experience in the type of mineralization and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and
(2) An eligible member or licensee in good standing of a recognized professional organization at the time the technical report is prepared. For an organization to be a recognized professional organization, it must:
(i) Be either:
(A) An organization recognized within the mining industry as a reputable professional association; or
(B) A board authorized by U.S. federal, state or foreign statute to regulate professionals in the mining, geoscience or related field;
(ii) Admit eligible members primarily on the basis of their academic qualifications and experience;
(iii) Establish and require compliance with professional standards of competence and ethics;
(iv) Require or encourage continuing professional development;
(v) Have and apply disciplinary powers, including the power to suspend or expel a member regardless of where the member practices or resides; and
(vi) Provide a public list of members in good standing.
Relevant experience means, for purposes of determining whether a party is a qualified person, that the party has experience in the specific type of activity that the person is undertaking on behalf of the registrant. If the qualified person is preparing or supervising the preparation of a technical report concerning exploration results, the relevant experience must be in exploration. If the qualified person is estimating, or supervising the estimation of mineral resources, the relevant experience must be in the estimation, assessment and evaluation of mineral resources and associated technical and economic factors likely to influence the prospect of economic extraction. If the qualified person is estimating, or supervising the estimation of mineral reserves, the relevant experience must be in engineering and other disciplines required for the estimation, assessment, evaluation and economic extraction of mineral reserves.
(1) Relevant experience also means, for purposes of determining whether a party is a qualified person, that the party has experience evaluating the specific type of mineral deposit under consideration ( e.g., coal, metal, base metal, industrial mineral, or mineral brine). The type of experience necessary to qualify as relevant is a facts and circumstances determination. For example, experience in a high-nugget, vein-type mineralization such as tin or tungsten would likely be relevant experience for estimating mineral resources for vein-gold mineralization, whereas experience in a low grade disseminated gold deposit likely would not be relevant.
Note 1 to paragraph (1) of the definition of relevant experience: It is not always necessary for a person to have five years' experience in each and every type of deposit in order to be an eligible qualified person if that person has relevant experience in similar deposit types. For example, a person with 20 years' experience in estimating mineral resources for a variety of metalliferous hard-rock deposit types may not require as much as five years of specific experience in porphyry-copper deposits to act as a qualified person. Relevant experience in the other deposit types could count towards the experience in relation to porphyry-copper deposits.
(2) For a qualified person providing a technical report for exploration results or mineral resource estimates, relevant experience also requires, in addition to experience in the type of mineralization, sufficient experience with the sampling and analytical techniques, as well as extraction and processing techniques, relevant to the mineral deposit under consideration. Sufficient experience means that level of experience necessary to be able to identify, with substantial confidence, problems that could affect the reliability of data and issues associated with processing.
(3) For a qualified person applying the modifying factors, as defined by this section, to convert mineral resources to mineral reserves, relevant experience also requires:
(i) Sufficient knowledge and experience in the application of these factors to the mineral deposit under consideration; and
(ii) Experience with the geology, geostatistics, mining, extraction and processing that is applicable to the type of mineral and mining under consideration.
§ 229.1301   (Item 1301) General instructions.
(a) As used in this section, the term mining operations includes operations on all mining properties that a registrant:
(1) Owns or in which it has, or it is probable that it will have, a direct or indirect economic interest;
(2) Operates, or it is probable that it will operate, under a lease or other legal agreement that grants the registrant ownership or similar rights that authorize it, as principal, to sell or otherwise dispose of the mineral; or
(3) Has, or it is probable that it will have, an associated royalty or similar right.
(b) A registrant must provide the disclosure specified in this subpart if its mining operations are material to its business or financial condition.
(c) When determining whether its mining operations are material, a registrant must:
(1) Consider both quantitative and qualitative factors, assessed in the context of the registrant's overall business and financial condition;
(2) Aggregate mining operations on all of its mining properties, regardless of the stage of the mining property, and size or type of commodity produced, including coal, metalliferous minerals, industrial materials, and mineral brines; and
(3) Include, for each property, as applicable, all related activities from exploration through extraction to the first point of material external sale, including processing, transportation, and warehousing.
(d) Upon a determination that its mining operations are material, a registrant must provide summary disclosure concerning all of its mining activities, as specified in § 229.1303, as well as individual property disclosure concerning each of its mining properties that is material to its business or financial condition, as specified in § 229.1304. When providing either summary or individual property disclosure, the registrant:
(1) Should provide an appropriate glossary if the disclosure requires the use of technical terms relating to geology, mining or related matters, which cannot readily be found in conventional dictionaries;
(2) Should not include detailed illustrations and technical reports, full feasibility studies or other highly technical data. The registrant shall, however, furnish such reports and other material supplementally to the staff upon request; and
(3) Should use plain English principles, to the extent practicable, such as those provided in §§ 230.421 and 240.13a-20 of this chapter, to enhance the readability of the disclosure for investors.
§ 229.1302   (Item 1302) Qualified person, technical report summary, and technical studies.
(a)(1) A registrant's disclosure of exploration results, mineral resources, or mineral reserves, as required by §§ 229.1303 and 229.1304, must be based on and accurately reflect information and supporting documentation prepared by a qualified person, as defined in § 229.1300. As used in this section, the term information includes the findings and conclusions of a qualified person relating to exploration results or estimates of mineral resources or mineral reserves.
(2) The registrant is responsible for determining that the person meets the qualifications specified under the definition of qualified person in § 229.1300, and that the disclosure in the registrant's filing accurately reflects the information provided by the qualified person.
(3) If a registrant has relied on more than one qualified person to prepare the information and documentation supporting its disclosure of exploration results, mineral resources, or mineral reserves, the registrant's responsibilities as specified in this paragraph (a) pertain to each qualified person.
(b)(1) The registrant must obtain a dated and signed technical report summary from the qualified person that, pursuant to § 229.601(b)(96), identifies and summarizes the information reviewed and conclusions reached by the qualified person about the registrant's mineral resources or mineral reserves determined to be on each material property. At its election, the registrant may also obtain a dated and signed technical report summary from the qualified person that, pursuant to § 229.601(b)(96), identifies and summarizes the information reviewed and conclusions reached by the qualified person about the registrant's exploration results.
(i) Except as provided in paragraph (b)(1)(ii) of this section, if more than one qualified person has prepared the technical report summary, each qualified person must date and sign the technical report summary. The qualified person's signature must comply with § 230.402(e) or § 240.12b-11(d) of this chapter. The technical report summary must also clearly delineate the section or sections of the summary prepared by each qualified person.
(ii) A third-party firm comprising mining experts, such as professional geologists or mining engineers, may date and sign the technical report summary instead of, and without naming, its employee, member or other affiliated person who prepared the technical report summary.
(2)(i) The registrant must file the technical report summary as an exhibit to the relevant registration statement or other Commission filing when disclosing for the first time mineral reserves or mineral resources or when there is a material change in the mineral reserves or mineral resources from the last technical report summary filed for the property.
(ii) If a registrant files a technical report summary to support the disclosure of exploration results, it must also file a technical report summary when there is a material change in the exploration results from the last technical report summary filed for the property. In each instance, the registrant must file the technical report summary as an exhibit to the relevant Commission filing.
(3)(i) A registrant that has a royalty, streaming, or other similar right is not required to submit a separate technical report summary for a property that is covered by a current technical report summary filed by the producing mining registrant. In that situation, the registrant holding the royalty, streaming, or other similar right should refer to the producing registrant's previously filed technical report summary in its filing with the Commission. Such a reference will not be deemed to incorporate by reference, pursuant to § 230.411 or § 240.12b-23 of this chapter, the previously filed technical report summary into the royalty company's or other similar company's filing absent an express statement to so incorporate by reference the previously filed technical report summary.
(ii) A registrant that has a royalty, streaming, or other similar right is not required to file a technical report summary for an underlying property if the registrant lacks access to the technical report summary because:
(A) Obtaining the information would result in an unreasonable burden or expense; or
(B) It requested the technical report summary from the owner, operator, or other person possessing the technical report summary, who is not affiliated with the registrant, and who denied the request.
(4)(i) The registrant must obtain the written consent of the qualified person to the use of the qualified person's name, or any quotation from, or summarization of, the technical report summary in the relevant registration statement or report, and to the filing of the technical report summary as an exhibit to the registration statement or report.
(ii) Except as provided in paragraph (b)(4)(iii) of this section, if more than one qualified person has prepared the technical report summary, the registrant must obtain the written consent required by this section from each qualified person pertaining to the particular section or sections of the technical report summary prepared by each qualified person.
(iii) If, pursuant to paragraph (b)(1)(ii) of this section, a third-party firm has signed the technical report summary, the third-party firm must provide the written consent. If a qualified person is an employee or person affiliated with the registrant, the qualified person must provide the written consent on an individual basis.
(iv) For Securities Act filings, the registrant must file the written consent as an exhibit to the registration statement pursuant to §§ 230.436 and 230.601(b)(23) of this chapter. For Exchange Act reports, the registrant is not required to file the written consent obtained from the qualified person, but should retain the written consent for as long as it is relying on the qualified person's information and supporting documentation for its current estimates regarding mineral resources, mineral reserves, or exploration results.
(5) The registrant must state in the filed registration statement or report whether each qualified person who prepared the technical report summary is an employee of the registrant. If the qualified person is not an employee of the registrant, the registrant must name the qualified person's employer, disclose whether the qualified person or the qualified person's employer is affiliated with the registrant or another entity that has an ownership, royalty, or other interest in the property that is the subject of the technical report summary, and if affiliated, describe the nature of the affiliation. As used in this section, affiliate or affiliated has the same meaning as in § 230.405 or § 240.12b-2 of this chapter.
(6)(i) A qualified person may include in the technical report summary information and documentation provided by a third-party specialist who is not a qualified person, as defined in § 229.1300, such as an attorney, appraiser, and economic or environmental consultant, upon which the qualified person has relied in preparing the technical report summary.
(ii) The qualified person may not disclaim responsibility for any information or documentation prepared by a third-party specialist upon which the qualified person has relied, or any part of the technical report summary based upon or related to that information and documentation.
(iii) A registrant is not required to file a written consent of any third-party specialist upon which a qualified person has relied pursuant to paragraph (b)(6)(i) of this section.
(c)(1) A registrant may disclose an exploration target, as defined in § 229.1300, for one or more of its properties that is based upon and accurately reflects information and supporting documentation of a qualified person. The qualified person may include a discussion of an exploration target in a technical report summary.
(2) Any disclosure of an exploration target must appear in a separate section of the Commission filing or technical report summary that is clearly captioned as a discussion of an exploration target. That section must include a clear and prominent statement that:
(i) The ranges of potential tonnage and grade (or quality) of the exploration target are conceptual in nature;
(ii) There has been insufficient exploration of the relevant property or properties to estimate a mineral resource;
(iii) It is uncertain if further exploration will result in the estimation of a mineral resource; and
(iv) The exploration target therefore does not represent, and should not be construed to be, an estimate of a mineral resource or mineral reserve.
(3) Any disclosure of an exploration target must also include:
(i) A detailed explanation of the basis for the exploration target, such as the conceptual geological model used to develop the target;
(ii) An explanation of the process used to determine the ranges of tonnage and grade, which must be expressed as approximations;
(iii) A statement clarifying whether the exploration target is based on actual exploration results or on one or more proposed exploration programs, which should include a description of the level of exploration activity already completed, the proposed exploration activities designed to test the validity of the exploration target, and the time frame in which those activities are expected to be completed; and
(iv) A statement that the ranges of tonnage and grade (or quality) of the exploration target could change as the proposed exploration activities are completed.
(d)(1) A registrant's disclosure of mineral resources under this subpart must be based upon a qualified person's initial assessment, as defined in § 229.1300, which includes and supports the qualified person's determination of mineral resources.
(i) When determining the existence of a mineral resource, a qualified person must:
(A) Be able to estimate or interpret the location, quantity, grade or quality continuity, and other geological characteristics of the mineral resource from specific geological evidence and knowledge, including sampling; and
(B) Conclude that there are reasonable prospects for economic extraction of the mineral resource based on his or her initial assessment. At a minimum, the initial assessment must include the qualified person's qualitative evaluation of relevant technical and economic factors likely to influence the prospect of economic extraction to establish the economic potential of the mining property or project.
(ii) For a material property, the technical report summary submitted by the qualified person to support a determination of mineral resources must describe the procedures, findings and conclusions reached for the initial assessment, as required by § 229.601(b)(96).
(iii)(A) When determining mineral resources, a qualified person must subdivide mineral resources, in order of increasing geological confidence, into inferred, indicated, and measured mineral resources.
(B) For inferred mineral resources, a qualified person:
( 1 ) Must have a reasonable expectation that the majority of inferred mineral resources could be upgraded to indicated or measured mineral resources with continued exploration; and
( 2 ) Should be able to defend the basis of this expectation before his or her peers.
(iv) The qualified person should refer to Table 1 to paragraph (d) of this section for the assumptions permitted to be made when preparing the initial assessment.
(2) A qualified person must include cut-off grade estimation, based on assumed unit costs for surface or underground operations and estimated mineral prices, in the initial assessment. To estimate mineral prices, the qualified person must use a price for each commodity that provides a reasonable basis for establishing the prospects of economic extraction for mineral resources. The qualified person must disclose the price used and explain, with particularity, his or her reasons for using the selected price, including the material assumptions underlying the selection. This explanation must include disclosure of the time frame used to estimate the commodity price and unit costs for cut-off grade estimation and the reasons justifying the selection of that time frame. The qualified person may use a price set by contractual arrangement, provided that such price is reasonable, and the qualified person discloses that he or she is using a contractual price when disclosing the price used. The selected price required by this section and all material assumptions underlying it must be current as of the end of the registrant's most recently completed fiscal year.
(3) The qualified person must provide a qualitative assessment of all relevant technical and economic factors likely to influence the prospect of economic extraction to establish economic potential and justify why he or she believes that all issues can be resolved with further exploration and analysis. As provided by Table 1 to paragraph (d) of this section, those factors include, but are not limited to, to the extent material:
(i) Site infrastructure ( e.g., whether access to power and site is possible);
(ii) Mine design and planning ( e.g., what is the broadly defined mining method);
(iii) Processing plant ( e.g., whether all products used in assessing prospects of economic extraction can be processed with methods consistent with each other);
(iv) Environmental compliance and permitting ( e.g., what are the required permits and corresponding agencies and whether significant obstacles exist to obtaining those permits); and
(v) Any other reasonably assumed technical and economic factors, including plans, negotiations, or agreements with local individuals or groups, which are necessary to demonstrate reasonable prospects for economic extraction.
(4)(i) A qualified person may include cash flow analysis in an initial assessment to demonstrate economic potential. If the qualified person includes cash flow analysis in the initial assessment, then operating and capital cost estimates must have an accuracy level of at least approximately ±50% and a contingency level of no greater than 25%, as provided by Table 1 to paragraph (d) of this section. The qualified person must state the accuracy and contingency levels in the initial assessment.
(ii) If providing an economic analysis in the initial assessment, a qualified person may include inferred mineral resources in the economic analysis, provided that the qualified person:
(A) States with equal prominence to the disclosure of mineral resource estimates that the assessment is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have modifying factors applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that this economic assessment will be realized;
(B) Discloses the percentage of the mineral resources used in the cash flow analysis that was classified as inferred mineral resources; and
(C) Discloses, with equal prominence, the results of the economic analysis excluding inferred mineral resources in addition to the results that include inferred mineral resources.
Table 1 to Paragraph ( d )—Summary Description of Relevant Factors Evaluated in Technical Studies
1 When applied in an initial assessment, these factors pertain to the relevant technical and economic factors likely to influence the prospect of economic extraction. When applied in a preliminary or final feasibility study, these factors pertain to the modifying factors, as defined in this subpart.
2 The relevant technical and economic factors to be applied in an initial assessment, and the modifying factors to be applied in a pre-feasibility or final feasibility study, include, but are not limited to, the factors listed in this table. The number, type, and specific characteristics of the applicable factors will be a function of and depend upon the particular mineral, mine, property, or project.
3 Initial assessment, as defined in this subpart, does not require a cash flow analysis or operating and capital cost estimates. The qualified person may include a cash flow analysis at his or her discretion.
4 An initial assessment does not require capital and operating cost estimates or economic analysis, although it requires unit cost assumptions based on an assumption that the resource will be exploited with surface or underground mining methods. An economic analysis, if included, may be based only on measured and indicated mineral resources, or also may include inferred resources if additional conditions are met.
(e)(1) A registrant's disclosure of mineral reserves under this subpart must be based upon a qualified person's preliminary feasibility (pre-feasibility) study or feasibility study, each as defined in § 229.1300, which includes and supports the qualified person's determination of mineral reserves. The pre-feasibility or feasibility study must include the qualified person's detailed evaluation of all applicable modifying factors to demonstrate the economic viability of the mining property or project. For a material property, the technical report summary submitted by the qualified person to support a determination of mineral reserves must describe the procedures, findings and conclusions reached for the pre-feasibility or feasibility study, as required by § 229.601(b)(96).
(2) When determining mineral reserves, a qualified person must subdivide mineral reserves, in order of increasing confidence, into probable mineral reserves and proven mineral reserves, as defined in § 229.1300. The determination of probable or proven mineral reserves must be based on a qualified person's application of the modifying factors to indicated or measured mineral resources, which results in the qualified person's determination that part of the indicated or measured mineral resource is economically mineable.
(i) For a probable mineral reserve, the qualified person's confidence in the results obtained from the application of the modifying factors and in the estimates of tonnage and grade or quality is lower than what is sufficient for a classification as a proven mineral reserve, but is still sufficient to demonstrate that, at the time of reporting, extraction of the mineral reserve is economically viable under reasonable investment and market assumptions. The lower level of confidence is due to higher geologic uncertainty when the qualified person converts an indicated mineral resource to a probable reserve or higher risk in the results of the application of modifying factors at the time when the qualified person converts a measured mineral resource to a probable mineral reserve. A qualified person must classify a measured mineral resource as a probable mineral reserve when his or her confidence in the results obtained from the application of the modifying factors to the measured mineral resource is lower than what is sufficient for a proven mineral reserve.
(ii) For a proven mineral reserve, the qualified person must have a high degree of confidence in the results obtained from the application of the modifying factors and in the estimates of tonnage and grade or quality.
(3) The pre-feasibility study or feasibility study, which supports the qualified person's determination of mineral reserves, must demonstrate that, at the time of reporting, extraction of the mineral reserve is economically viable under reasonable investment and market assumptions. The study must establish a life of mine plan that is technically achievable and economically viable, which will be the basis of determining the mineral reserve.
(i) The term mineral reserves does not necessarily require that extraction facilities are in place or operational, that the company has obtained all necessary permits or that the company has entered into sales contracts for the sale of mined products. It does require, however, that the qualified person has, after reasonable investigation, not identified any obstacles to obtaining permits and entering into the necessary sales contracts, and reasonably believes that the chances of obtaining such approvals and contracts in a timely manner are highly likely.
(ii) In certain circumstances, the determination of mineral reserves may require the completion of at least a preliminary market study, as defined in § 229.1300, in the context of a pre-feasibility study, or a final market study, as defined in § 229.1300, in the context of a feasibility study, to support the qualified person's conclusions about the chances of obtaining revenues from sales. For example, a preliminary or final market study would be required where the mine's product cannot be traded on an exchange, there is no other established market for the product, and no sales contract exists. When assessing mineral reserves, the qualified person must take into account the potential adverse impacts, if any, from any unresolved material matter on which extraction is contingent and which is dependent on a third party.
(4) For both a pre-feasibility and feasibility study, a qualified person must use a price for each commodity that provides a reasonable basis for establishing that the project is economically viable. The qualified person must disclose the price used and explain, with particularity, his or her reasons for using the selected price, including the material assumptions underlying the selection. This explanation must include disclosure of the time frame used to estimate the price and costs and the reasons justifying the selection of that time frame. The qualified person may use a price set by contractual arrangement, provided that such price is reasonable, and the qualified person discloses that he or she is using a contractual price when disclosing the price used. The selected price required by this section and all material assumptions underlying it must be current as of the end of the registrant's most recently completed fiscal year.
(5) A pre-feasibility study must include an economic analysis that supports the property's economic viability as assessed by a detailed discounted cash flow analysis or other similar financial analysis. The economic analysis must describe in detail applicable taxes and provide an estimate of revenues. The qualified person must use a price for each commodity in the economic analysis that meets the requirements of paragraph (e)(4) of this section. As discussed in paragraph (e)(3) of this section, in certain situations, estimates of revenues must be based on at least a preliminary market study.
(6) The qualified person must exclude inferred mineral resources from the pre-feasibility study's demonstration of economic viability in support of a disclosure of a mineral reserve.
(7) Factors to be considered in a pre-feasibility study are typically the same as those required for a final feasibility study, but considered at a lower level of detail or at an earlier stage of development. The list of factors is not exclusive. For example, as provided in Table 1 to paragraph (d) of this section, a pre-feasibility study must define, analyze or otherwise address in detail, to the extent material:
(i) The required access roads, infrastructure location and plant area, and the source of all utilities ( e.g., power and water) required for development and production;
(ii) The preferred underground mining method or surface mine pit configuration, with detailed mine layouts drawn for each alternative;
(iii) The bench lab tests that have been conducted, the process flow sheet, equipment sizes, and general arrangement that have been completed, and the plant throughput;
(iv) The environmental compliance and permitting requirements, the baseline studies, and the plans for tailings disposal, reclamation, and mitigation, together with an analysis establishing that permitting is possible; and
(v) Any other reasonable assumptions, based on appropriate testing, on the modifying factors sufficient to demonstrate that extraction is economically viable.
(8) A pre-feasibility study must also identify sources of uncertainty that require further refinement in a final feasibility study.
(9) Operating and capital cost estimates in a pre-feasibility study must, at a minimum, have an accuracy level of approximately ±25% and a contingency range not exceeding 15%, as provided in Table 1 of this section. The qualified person must state the accuracy level and contingency range in the pre-feasibility study.
(10) A feasibility study must contain the application and description of all relevant modifying factors in a more detailed form and with more certainty than a pre-feasibility study. The list of factors is not exclusive. For example, as provided in Table 1 to paragraph (d) of this section, a feasibility study must define, analyze, or otherwise address in detail, to the extent material:
(i) Final requirements for site infrastructure, including well-defined access roads, finalized plans for infrastructure location, plant area, and camp or town site, and the established source of all required utilities ( e.g., power and water) for development and production;
(ii) Finalized mining method, including detailed mine layouts and final development and production plan for the preferred alternative with the required equipment fleet specified. The feasibility study must address detailed mining schedules, construction and production ramp up, and project execution plans;
(iii) Completed detailed bench lab tests and a pilot plant test, if required, based on risk. The feasibility study must further address final requirements for process flow sheet, equipment sizes, and general arrangement and specify the final plant throughput;
(iv) The final identification and detailed analysis of environmental compliance and permitting requirements, and the completion of baseline studies and finalized plans for tailings disposal, reclamation, and mitigation; and
(v) The final assessments of other modifying factors necessary to demonstrate that extraction is economically viable.
(11) A feasibility study must also include an economic analysis that describes taxes in detail, estimates revenues, and assesses economic viability by a detailed discounted cash flow analysis. The qualified person must use a price for each commodity in the economic analysis that meets the requirements of paragraph (e)(4) of this section. As discussed in paragraph (e)(3) of this section, in certain situations, estimates of revenues must be based on a final market study or letters of intent to purchase.
(12) Operating and capital cost estimates in a feasibility study must, at a minimum, have an accuracy level of approximately ±15% and a contingency range not exceeding 10%, as provided by Table 1 of this section. The qualified person must state the accuracy level and contingency range in the feasibility study.
(13) If the uncertainties in the results obtained from the application of the modifying factors that prevented a measured mineral resource from being converted to a proven mineral reserve no longer exist, then the qualified person may convert the measured mineral resource to a proven mineral reserve.
(14) The qualified person cannot convert an indicated mineral resource to a proven mineral reserve unless new evidence first justifies conversion to a measured mineral resource.
(15) The qualified person cannot convert an inferred mineral resource to a mineral reserve without first obtaining new evidence that justifies converting it to an indicated or measured mineral resource.
(f)(1) The qualified person may indicate in the technical report summary that the qualified person has relied on information provided by the registrant in preparing its findings and conclusions regarding the following aspects of modifying factors:
(i) Macroeconomic trends, data, and assumptions, and interest rates;
(ii) Marketing information and plans within the control of the registrant;
(iii) Legal matters outside the expertise of the qualified person, such as statutory and regulatory interpretations affecting the mine plan;
(iv) Environmental matters outside the expertise of the qualified person;
(v) Accommodations the registrant commits or plans to provide to local individuals or groups in connection with its mine plans; and
(vi) Governmental factors outside the expertise of the qualified person.
(2) In a separately captioned section of the technical report summary entitled “Reliance on Information Provided by the Registrant,” the qualified person must:
(i) Identify the categories of information provided by the registrant;
(ii) Identify the particular portions of the technical report summary that were prepared in reliance on information provided by the registrant pursuant to paragraph (f)(1) of this section, and the extent of that reliance; and
(iii) Disclose why the qualified person considers it reasonable to rely upon the registrant for any of the information specified in paragraph (f)(1) of this section.
(3) Notwithstanding the provisions of § 230.436(a) and (b) of this chapter, any description in the technical report summary or other part of the registration statement of the procedures, findings, and conclusions reached about matters identified by the qualified person as having been based on information provided by the registrant pursuant to this section shall not be considered a part of the registration statement prepared or certified by the qualified person within the meaning of Sections 7 and 11 of the Securities Act.