Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 1000

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 5
Chunk 1000
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 be applied to make payments on the securitization trust debt. As of December
31, 2024, restricted cash under the various agreements totaled approximately $125.7 million. Interest expense on the securitization trust
debt is composed of the stated rate of interest plus amortization of additional costs of borrowing. Additional costs of borrowing include
facility fees, insurance premiums, amortization of deferred financing costs, and amortization of discounts required on the notes at the
time of issuance. Deferred financing costs related to the securitization trust debt are amortized using the interest method. Accordingly,
the effective cost of borrowing of the securitization trust debt is greater than the stated rate of interest.

Our wholly-owned, bankruptcy
remote subsidiaries were formed to facilitate the above asset-backed financing transactions. Similar bankruptcy remote subsidiaries issue
the debt outstanding under our warehouse line of credit. Bankruptcy remote refers to a legal structure in which it is expected that the
applicable entity would not be included in any bankruptcy filing by its parent or affiliates. All of the assets of these subsidiaries
have been pledged as collateral for the related debt. All such transactions, treated as secured financings for accounting and tax purposes,
are treated as sales for all other purposes, including legal and bankruptcy purposes. None of the assets of these subsidiaries are available
to pay any of our other creditors.

     F-21 

CONSUMER PORTFOLIO SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(6) Debt

The terms of our debt outstanding at December
31, 2024 and 2023 are summarized below:

     Schedule of debt outstanding 

    Amount Outstanding at 

    December 31,  
    December 31, 

    2024  
    2023 

    Subordinate Lender 
      
    (In thousands) 
  
    Description 
    Interest Rate 
    Interest Rate 
    Maturity 

    Warehouse line of
                                             credit 
    2.85% over CP yield rate (Minimum 3.60%) 7.52% and 8.58% at December 31, 2024 and December 31 2023, respectively 
    6.40% over SOFR yield rate (Minimum 7.15%) 11.09% at December 31, 2024 
    July 2026 
    $269,602