Company: CPSS
Filing Date: 2025-01-28
Form Type: 8-K
Source: 0001683168-25-000570
Chunk: 0

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-01-28
Form: 8-K
Item: Item 1.01
Chunk 0
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Item 1.01. Entry into a Material Definitive
Agreement.

The information contained in Item 2.03 of
this report is hereby incorporated by reference into this Item 1.01. The registrant disclaims any implication that the agreements relating
to the transactions described in this report are other than agreements entered into in the ordinary course of its business.

Securitization of Receivables

On January 22, 2025, the registrant Consumer
Portfolio Services, Inc. ("CPS") and its wholly owned subsidiary CPS Receivables Five LLC ("Subsidiary") entered into
a series of agreements under which Subsidiary purchased from CPS, and sold to CPS Auto Receivables Trust 2025-A (the "Trust"),
approximately $462.5 million of subprime automotive receivables (the "Receivables").

Item 2.03. Creation of a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

Securitization of Receivables

CPS, Subsidiary, the Trust and others on January
22, 2025, entered into a series of agreements that, among other things, created long-term obligations that are material to CPS, Subsidiary
and the Trust. Under these agreements (i) CPS sold the Receivables to Subsidiary (ii) Subsidiary sold the Receivables to the Trust (iii)
the Trust deposited the Receivables with Computershare Trust Company, N. A. ("CTCNA"), as trustee of a grantor trust, receiving
in return a certificate of beneficial interest (“ CBI”) representing beneficial ownership of the Receivables, (iv) the Trust
pledged the CBI to CTCNA as indenture trustee for benefit of the holders of the Notes (as defined below), (v) the Trust issued and sold
$442.4 million of asset-backed Notes, in five classes (such Notes collectively, the "Notes"), and (vi) a cash deposit (the "Reserve
Account") in the amount of 1.00% of the aggregate balance of the Receivables was pledged for the benefit of the holders of the Notes.

Security for the repayment of the Notes consists
of the Receivables and the rights to payments relating to the Receivables. The Receivables were purchased by CPS from automobile dealers,
and CPS will act