Issue of Pass Through Certificates
Once the housing loans have been declared as property held in trust, the NHB in its corporate capacity as also trustee for the SPV Trust would issue Pass Through Certificates (PTCs) to investors. The two classes of securities would be issued, that is, Class A and Class B PTCs. The Class A PTCs would be issued to investors, while the Class B PTCs would be issued to the HDFC (the originator). The Class B PTCs would be subordinated to the Class A PTCs for receipt of principal and interest/income.