Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 45

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 45
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 systems, and could result in violations of applicable privacy and other laws, financial loss
to us or to our customers, customer dissatisfaction, significant litigation and regulatory exposure and harm to our reputation, any or
all of which could have a material adverse effect on us.

Because We Are Subject to Many Restrictions in Our Existing Credit
Facilities and Securitization Transactions, Our Ability to Pay Dividends or Engage in Specified Transactions May Be Impaired.

The terms of our existing
credit facilities, term securitizations and our other outstanding debt impose significant operating and financial restrictions on us and
our subsidiaries and require us to meet certain financial tests. These restrictions may have an adverse effect on our business activities,
results of operations and financial condition. These restrictions may also significantly limit or prohibit us from engaging in certain
transactions, including the following:

·incurring or guaranteeing additional indebtedness;

·making capital expenditures in excess of agreed upon amounts;

·paying dividends or other distributions to our shareholders or redeeming, repurchasing or retiring our capital stock or subordinated
obligations;

·making investments;

·creating or permitting liens on our assets or the assets of our subsidiaries;

·issuing or selling capital stock of our subsidiaries;

·transferring or selling our assets;

·engaging in mergers or consolidations;

·permitting a change of control of our company;

·liquidating, winding up or dissolving our company;

·changing our name or the nature of our business, or the names or nature of the business of our subsidiaries; and

·engaging in transactions with our affiliates outside the normal course of business.

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These restrictions may limit
our ability to obtain additional sources of capital, which may limit our ability to generate earnings. In addition, the failure to comply
with any of the covenants of one or more of our debt agreements could cause a default under other debt agreements that may be outstanding
from time to time. A default, if not waived, could result in acceleration of the related indebtedness, in which case such debt would become
immediately due and payable. A continuing default or acceleration of one or more of our credit facilities or any other debt agreement,
would likely cause a default under other debt agreements that otherwise would not be in default, in which case all such related indebtedness
could be accelerated. If this occurs, we may not be able to repay our debt or borrow sufficient funds to refinance our indebtedness. Even
if any