Document ID: chunk:federal_register_of_legislation:F2024L01074:body:0:p62
Version: federal_register_of_legislation:F2024L01074
Segment Type: other
Provision Reference: 
Character Range: 193849–198837

to re‑market the asset.
Asset characteristics
Configuration, size, design and maintenance (e.g. age, size for a plane) compared to other assets on the same market              There is a strong advantage in design and maintenance. Configuration is standard such that the object meets a liquid market.                                                                   The design and maintenance is above average. Standard configuration, possibly with very limited exceptions, such that the object meets a liquid market.                                  The design and maintenance is average. Configuration is somewhat specific and thus might cause a narrower market for the object.                                                          The design and maintenance is below average. The asset is near the end of its economic life. Configuration is very specific. The market for the object is very narrow.
Resale value                                                                                                                      The current resale value is well above debt value.                                                                                                                                             The resale value is moderately above debt value.                                                                                                                                         The resale value is slightly above debt value.                                                                                                                                            The resale value is below debt value.
Sensitivity of the asset value and liquidity to economic cycles                                                                   The asset value and liquidity are relatively insensitive to economic cycles.                                                                                                                   The asset value and liquidity are sensitive to economic cycles.                                                                                                                          The asset value and liquidity are quite sensitive to economic cycles.                                                                                                                     The asset value and liquidity are highly sensitive to economic cycles.
Strength of sponsor
Operator's financial strength, track record in managing the asset type and capability to re-market asset when it comes off-lease  Excellent track record and strong re-marketing capability.                                                                                                                                     Satisfactory track record and re-marketing capability.                                                                                                                                   Weak or short track record and uncertain re-marketing capability.                                                                                                                         No or unknown track record and inability to re-market the asset.
Sponsor's track record and financial strength                                                                                     The sponsors have an excellent track record and high financial standing.                                                                                                                       The sponsors have a good track record and good financial standing.                                                                                                                       The sponsors have an adequate track record and good financial standing.                                                                                                                   The sponsors have a questionable/no track record and/or financial weaknesses.
Security package
Asset control                                                                                                                     Legal documentation provides the lender effective control (e.g. a first perfected security interest or a leasing structure including such security) on the asset or on the company owning it.  Legal documentation provides the lender effective control (e.g. a perfected security interest or a leasing structure including such security) on the asset or on the company owning it.  Legal documentation provides the lender effective control (e.g. a perfected security interest or a leasing structure including such security) on the asset, or on the company owning it.  The contract provides little security to the lender and leaves room to some risk of losing control on the asset.
Rights and means at the lender's disposal to monitor the location and condition of the asset                                      The lender is able to monitor the location and condition of the asset at any time and place