MTF Securities Limited

Assets

The activity of MTF Securities Limited (MTFS) is restricted to purchasing loans originated by Motor Trade Finances Limited (MTF) shareholders to finance approved motor vehicle assets. Loans are represented by credit contracts (80%) and leases (20%). Loans are written on terms specified by MTF and according to credit-scoring criteria established by MTF based on the following:

• identity check (New Zealand driver license)
• MTF credit history
• independent credit check
• residence ownership/stability
• employment stability
• security check

MTF is given a legal assignment by way of mortgage over the shareholder’s rights under the contract and the underlying motor vehicle. MTF has full recourse to the shareholder for amounts owing. Upon securitisation of these assets, MTF transfers all its rights, including recourse to the individual shareholder, to MTFS.

MTFS purchases the loans made by MTF shareholders. The MTF mortgage over the vehicle and assigned rights under the loan documentation is assumed by MTFS by way of legal assignment.