Corporate Guarantee from HDFC

The structure also envisages a credit enhancement for the made available upfront in the form of a non-funded corporate guarantee ftorn the stipulated amount of the guarantee is Rs 1.1 crore. In the event of defaults or delays by the borrowers, the HDFC would unconditionally deposit such amount into the Cash Collateral on being demanded by the trustee or the S&P Agent. Further, the demand as specified, by made as long the HDFC remains the S&P Agent.

In any months, if there is any excess remaining in the pool collections after meeting obligations PTC- holders and other service provides as per the payment hierarchy, it would be used HDFC to the extent of the past invocation of the guarantee. The now hack of residual Class B PTC-holders would resume only after the HDFC has been paid this amount. The would then be restored by the HDFC to the original amount stipulated. The guarantee, functions as a liquidity-cum-credit support.

Pool Servicing

Once the SPV Trust is constituted, the trustees (NHB) would appoint HDFC as the Servicing and Paying Agent for the receivables held by the Trust.

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