Company: CPSS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003436
Chunk: 116

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 116
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ization 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.

     17 

CONSUMER PORTFOLIO SERVICES, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(4) Debt

The terms and amounts of
our other debt outstanding at March 31, 2025, and December 31, 2024, are summarized below:

    Schedule of debt outstanding 

    Amount Outstanding at 

    March 31,  
    December 31, 

    2025  
    2024 

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

    Warehouse lines of credit 
    3.00% over CP yield rate (Minimum 3.75%) 7.38% and 7.52% at March 31, 2025 and December 31 2024, respectively 
    6.40% over SOFR yield rate (Minimum 7.15%) 10.95% and 11.09% at March 31, 2025 and December 31, 2024, respectively 
    July 2026 
    $280,400  
    $269,602 

    Warehouse lines of credit 
    4.50% over a commercial paper rate (Minimum 7.50%) 8.82% and 8.90% at March 31 202