Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 469

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1C
Chunk 469
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, we have usually structured our term securitization transactions to include pre-funding structures,
whereby the amount of notes issued exceeds the amount of contracts initially sold to the trusts. We may continue to use pre-funding structures
in our securitizations. In pre-funding, the proceeds from the pre-funded portion are held in an escrow account until we sell the additional
contracts to the trust. In pre-funded securitizations, we lock in the borrowing costs with respect to the contracts we subsequently deliver
to the securitization trust. However, we incur an expense in pre-funded securitizations equal to the difference between the money market
yields earned on the proceeds held in escrow prior to subsequent delivery of contracts and the interest rate paid on the notes outstanding.
The amount of such expense may vary. Despite these mitigation strategies, an increase in prevailing interest rates would cause us to receive
less excess spread cash flows on automobile contracts, and thus could adversely affect our earnings and cash flows.

 49 

Item 8. Financial Statements and Supplementary Data

This report includes Consolidated Financial Statements,
notes thereto and an Independent Auditors’ Report, at the pages indicated below, in the "Index
to Financial Statements."

Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure

Not applicable.

Item 9A. Controls and Procedures

Disclosure Controls and
Procedures.  Under the supervision and with the participation of the Company’s Chief Executive Officer and Chief Financial
Officer, management of the Company has evaluated the effectiveness of the design and operation of the Company’s disclosure controls
and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the "Exchange
Act") as of December 31, 2024 (the "Evaluation
Date"). Based upon that evaluation, the Chief Executive Officer and
Chief Financial Officer concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures are effective
(i) to ensure that information required to be disclosed by us in reports that the Company files or submits under the Exchange Act
is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange
Commission; and (ii) to ensure that information required to be disclosed in the reports that the Company files or submits under the
Exchange Act is accumulated and communicated