DAIMLERCHRYSLER
DAIMLERCHRYSLER AUTO TRUST 2001-C
CHRYSLER FINANCIAL COMPANY L.L.C., Seller and Servicer
Subject to Revision
Term Sheet dated September 4, 2001
The trust will issue $1,856,473,000 of securities backed by automobile
and light duty truck receivables purchased directly from Chrysler Financial
Company L.L.C.
- --------------------------------------------------------------------------------------------------------------------------
Total Securities Issued
-----------------------------------------------------------------------------------------------------
Security Principal Amount Fixed Per Annum Interest Legal Final
Rate
-----------------------------------------------------------------------------------------------------
A-1 Notes(1) $296,123,000 % August 2002
.....................................................................................................
A-2 Notes $695,000,000 % July 2004
.....................................................................................................
A-3 Notes $353,000,000 % July 2005
.....................................................................................................
A-4 Notes $452,000,000 % December 2006
.....................................................................................................
Certificates(1) $60,350,000
.....................................................................................................
(1) Not being offered publicly or in this document. The certificates are subordinated, bear no interest, and have no
maturity date.
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
Initial Credit Enhancement for the Notes(1)
---------------------------------------------------------------------------------------------
Overcollateralization(2) Certificates(3) Reserve Fund Total
(Subordinated)
---------------------------------------------------------------------------------------------
Amount $64,976,635.85 $60,350,000 $4,641,182.50 $129,967,818.35
..........................................................................................................................
Percentage
of Total
Securities 3.50% 3.25% 0.25% 7.00%
..........................................................................................................................
(1) The expected excess cash flows generated from the difference between the interest collections on all the
receivables (including principal collections allocable to the yield supplement overcollateralization amount) and the
sum of the servicing fee, the interest payments on the outstanding securities and required reserve fund deposits could
also provide credit enhancement.
(2) The overcollateralization amount does not include the yield supplement overcollateralization amount which is
initially $28,678,884.20
(3) The certificates do not bear interest.
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TABLE OF CONTENTS
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Section Page Section Page
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- Interest Payments 11
----------------------------------------------------
o TRANSACTION ILLUSTRATION 3 - Principal Payments 12
- ------------------------------------------------------ ----------------------------------------------------
o PARTIES TO THE TRANSACTION 4 - Optional Redemption 13
- ------------------------------------------------------ ----------------------------------------------------
o SECURITIES ISSUED 5 o FLOW OF FUNDS 13
- ------------------------------------------------------ ----------------------------------------------------
o RECEIVABLES POOL 5 - Sources of Funds Available
- ------------------------------------------------------ for Distribution 13
- Composition of the ----------------------------------------------------
Receivables Pool 6 - Application of Available 14
- ------------------------------------------------------ Funds
- New/Used Distribution 6 ----------------------------------------------------
- ------------------------------------------------------ o CREDIT ENHANCEMENT 15
- Distribution by APR 7 ----------------------------------------------------
- ------------------------------------------------------ - Overcollateralization 15
- Geographic Distribution 8 ----------------------------------------------------
- ------------------------------------------------------ - Excess Interest Collections 16
- Selection Criteria 9 ----------------------------------------------------
- ------------------------------------------------------ - Reserve Fund 16
o NET CREDIT LOSS AND ----------------------------------------------------
DELINQUENCY EXPERIENCE 9 - Subordinated Certificates 16
- ------------------------------------------------------ ----------------------------------------------------
- CFC Net Credit Loss and o YIELD SUPPLEMENT
Repossession Experience 10 OVERCOLLATERALIZATION
- ------------------------------------------------------ AMOUNT 17
- CFC Delinquency Experience 11 ----------------------------------------------------
- ------------------------------------------------------ O SERVICING 18
o PAYMENTS ON THE SECURITIES 11 ----------------------------------------------------
- ------------------------------------------------------ - Compensation 18
- Payment Dates 11 ----------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
2
TRANSACTION ILLUSTRATION
on or about September 13, 2001
(approximate $ thousands)
-----------------------------------
CHRYSLER FINANCIAL COMPANY L.L.C.
[Seller and Servicer]
-----------------------------------
- --------------------------------------- $4,641
DAIMLERCHRYSLER RETAIL RECEIVABLES LLC reserve
[Special Purpose Entity] fund
- --------------------------------------- $1,950,129
receivables
Overcollateralization Yield Supplement
$64,977 Overcollateralization
Amount(2)
$28,679 --------------
CITIBANK,
- ------------------ ---------------------------------- N.A.
Certificates(1) DAIMLERCHRYLSER AUTO TRUST 2001-C ....... [Indenture
$60,350 [Issuer] Trustee]
- ------------------ ---------------------------------- ---------------
------------
A-2 Notes
----------------------- ----------------- $695,000
CHASE MANHATTAN A-1 Notes(1)
BANK USA, NATIONAL $296,123
ASSOCIATION ----------------- A-3 Notes
[Owner Trustee] $353,000
-----------------------
A-4 Notes
$452,000
------------
- -----------------------------------------------------------------------------------------------------------
(1) Not being offered publicly or in this document. The certificates are subordinated.
(2) As set forth on page 17 of this document.
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3
PARTIES TO THE TRANSACTION
- ---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
Entity Description
---------------------------------------------------------------------------------------------
DaimlerChrysler Auto o Issuer of the securities
Trust 2001-C
o A Delaware business trust
o Principal office is in Wilmington, Delaware
---------------------------------------------------------------------------------------------
Chrysler Financial Company o Seller of the receivables to the trust
L.L.C. ("CFC")
o Servicer of the receivables
o An indirect wholly-owned subsidiary of
DaimlerChrysler AG
o A Michigan limited liability company
o Originator of CFC receivables
---------------------------------------------------------------------------------------------
Citibank, N.A.(1) o Indenture trustee
o Performs duties for the benefit of the
noteholders
---------------------------------------------------------------------------------------------
Chase Manhattan o Owner trustee
Bank USA, National
Association.(1) o Performs duties on behalf of the trust and
certificateholders
---------------------------------------------------------------------------------------------
DaimlerChrysler Retail o A special-purpose financing entity
Receivables LLC
o A Michigan limited liability company, formerly
named Premier Receivables L.L.C.
o An indirect wholly-owned subsidiary of CFC
o Initial holder of the subordinated certificates
o Initial owner of rights to overcollateralization
distributions and residual cash flows
---------------------------------------------------------------------------------------------
(1) The seller and its affiliates may maintain normal commercial banking
relations with the indenture trustee, the owner trustee and their
affiliates.
- ---------------------------------------------------------------------------------------------------
4
SECURITIES ISSUED
The trust will issue $1,856,473,000 of securities, comprised of both
notes and certificates.
- -------------------------------------------------------------------------------
Total Securities Issued
-------------------------------------------------------------------------
Security Principal Amount Fixed Per Annum Legal Final
Interest Rate
-------------------------------------------------------------------------
A-1 Notes(1) $296,123,000 % August 2002
-------------------------------------------------------------------------
A-2 Notes $695,000,000 % July 2004
-------------------------------------------------------------------------
A-3 Notes $353,000,000 % July 2005
-------------------------------------------------------------------------
A-4 Notes $452,000,000 % December 2006
-------------------------------------------------------------------------
Certificates(1) $60,350,000 %
-------------------------------------------------------------------------
(1) Not being offered publicly or in this document. The certificates are
subordinated, bear no interest, and have no maturity date.
- -------------------------------------------------------------------------------
Other points to consider include:
o the outstanding principal of each class of notes is due by its maturity date
(each a "Legal Final"),
o the offered securities will be issued on or about September 13, 2001 in
book-entry form through the facilities of the Depository Trust Company,
Clearstream and the Euroclear System, and
o by September 13, 2001, three nationally recognized rating agencies will
rate the offered securities in the highest investment rating category.
RECEIVABLES POOL
On September 13, 2001, the trust will use the proceeds from the issuance
of the securities to purchase a pool of automobile and light duty truck
receivables from the seller. Collections on this pool of receivables will be
the trust's principal source of funds for making payments on the securities.
The following information about the receivables is as of August 29, 2001 (the
"Cut-off Date").
5
The receivables pool had the following characteristics:
-------------------------------------------------------------------
Composition of the Receivables Pool
As of August 29, 2001
Aggregate Principal Balance $1,950,128,520.05
------------------------------------------------------------------
Number of Receivables 103,268
------------------------------------------------------------------
Average Principal Balance $18,884.15
------------------------------------------------------------------
Weighted Average APR 6.82%
------------------------------------------------------------------
Weighted Average Original Term 59.06 months
------------------------------------------------------------------
Weighted Average Remaining Term 55.61 months
------------------------------------------------------------------
As a Percentage of the Aggregate
Principal Balance:
------------------------------------------------------------------
Receivables with Recourse to Dealers 0.55%
------------------------------------------------------------------
------------------------------------------------------------------
The receivables pool had the following new vehicle/used vehicle
distribution:
-----------------------------------------------------------------------------
New/Used Distribution of the Receivables Pool
As of August 29, 2001
------------------------------------------
New Used
------------------------------------------
Aggregate Principal Balance $1,632,745,425.50 $317,383,094.55
------------------------------------------------------------------------
Percentage of Aggregate Principal
Balance 83.73% 16.27%
------------------------------------------------------------------------
Number of Receivables 80,000 23,268
------------------------------------------------------------------------
Percentage of Receivables 77.47% 22.53%
------------------------------------------------------------------------
------------------------------------------------------------------------
6
The receivables pool had the following distribution by APR:
- ------------------------------------------------------------------------------------------------------------
Distribution by APR of the Receivables Pool
As of August 29, 2001
------------------------------------------------------------------------------------------------
APR Range Number of Aggregate Percent of Aggregate
Receivables Principal Balance Principal Balance(1)
------------------------------------------------------------------------------------------------
0.00% to 5.00% 35,443 $814,193,798.38 41.8%
------------------------------------------------------------------------------------------------
5.01% to 6.00% 1,843 37,418,581.01 1.9%
------------------------------------------------------------------------------------------------
6.01% to 7.00% 5,668 100,816,884.83 5.2%
------------------------------------------------------------------------------------------------
7.01% to 8.00% 11,235 192,025,417.82 9.8%
------------------------------------------------------------------------------------------------
8.01% to 9.00% 10,888 184,793,067.98 9.5%
------------------------------------------------------------------------------------------------
9.01% to 10.00% 10,622 181,762,475.82 9.3%
------------------------------------------------------------------------------------------------
10.01% to 11.00% 8,822 152,738,398.17 7.8%
------------------------------------------------------------------------------------------------
11.01% to 12.00% 6,442 107,140,122.83 5.5%
------------------------------------------------------------------------------------------------
12.01% to 13.00% 4,212 64,898,947.17 3.3%
------------------------------------------------------------------------------------------------
13.01% to 14.00% 2,390 33,996,104.99 1.7%
------------------------------------------------------------------------------------------------
14.01% to 15.00% 1,708 24,704,499.45 1.3%
------------------------------------------------------------------------------------------------
15.01% to 16.00% 950 13,165,886.23 0.7%
------------------------------------------------------------------------------------------------
16.01% to 17.00% 833 12,693,765.31 0.7%
------------------------------------------------------------------------------------------------
17.01% to 18.00% 1,032 14,564,667.19 0.7%
------------------------------------------------------------------------------------------------
18.01% to 19.00% 288 3,930,040.76 0.2%
------------------------------------------------------------------------------------------------
19.01% to 20.00% 869 10,965,393.47 0.6%
------------------------------------------------------------------------------------------------
Greater than 20.00% 23 320,468.64 0.0%
------------------------------------------------------------------------------------------------
Totals 103,268 $1,950,128,520.05 100.0%
------------------------------------------------------------------------------------------------
(1) Percentages may not add to 100.0% because of rounding.
- ------------------------------------------------------------------------------------------------------------
7
The following table lists the ten states with the largest percentage
concentration of the aggregate principal balance of the receivables pool based
on the physical address of the dealer originating the receivable. No other
state accounts for more than 4.0% of the aggregate principal balance of the
receivables pool as of August 29, 2001.
------------------------------------------------------------------------
Geographic Distribution of the Receivables Pool
As of August 29, 2001
------------------------------------------------------------------------
State Percentage of Aggregate
Principal Balance (1)
------------------------------------------------------------------------
Texas 9.9%
------------------------------------------------------------------------
Pennsylvania 7.5%
------------------------------------------------------------------------
New York 6.7%
------------------------------------------------------------------------
Illinois 6.6%
------------------------------------------------------------------------
Florida 5.9%
------------------------------------------------------------------------
Michigan 5.2%
------------------------------------------------------------------------
New Jersey 4.9%
------------------------------------------------------------------------
North Carolina 4.1%
------------------------------------------------------------------------
California 4.0%
------------------------------------------------------------------------
Georgia 4.0%
------------------------------------------------------------------------
All Other 41.2%
------------------------------------------------------------------------
Total 100.0%
------------------------------------------------------------------------
(1) Percentages may not add to 100.0% because of rounding.
------------------------------------------------------------------------
8
Selection Criteria
We used the following criteria to select the receivables pool:
o Each receivable was originally purchased by the seller from dealers in
the ordinary course of its business.
o Interest on each receivable is computed using the simple interest method.
o As of August 29, 2001:
- no receivable was more than 30 days past due (an account is not
considered past due if the amount past due is less than 10% of
the scheduled monthly payment);
- no receivable was the subject of a bankruptcy proceeding;
- each receivable had a remaining principal balance of at least
$1,000.00; and
- each receivable had a scheduled maturity before August 31,
2007.
The seller believes its selection procedures are not adverse to
securityholders.
NET CREDIT LOSS AND DELINQUENCY EXPERIENCE
Net credit loss experience is dependent upon general economic
conditions, the number of repossessions, the amount of principal and accrued
interest outstanding on the receivable at the time of repossession, and the
resale values of the repossessed vehicles.
The following tables detail the net credit loss, repossession and
delinquency experience of CFC's United States portfolio of new and used
automobile and light duty truck retail receivables. The information includes:
o an immaterial amount of retail receivables secured by vehicles other than
automobiles and light duty trucks, and
o previously sold contracts which CFC continues to service.
Unless otherwise indicated, all amounts and percentages are based on
estimated gross collections, including principal and interest.
We cannot assure you that the delinquency, repossession and net credit
loss experience on the receivables sold to the trust will be comparable to the
following historical experience.
9
- -----------------------------------------------------------------------------------------------------------------------------------
CFC Net Credit Loss and Repossession Experience
----------------------------------------------------------------------------------
Six Months Ended Year Ended December 31,
June 30,
2001 2000 2000 1999 1998 1997
----------------------------------------------------------------------------------
Average Portfolio Outstanding During the
Period ($ Millions) $35,337 $29,096 $30,590 $26,191 $23,581 $21,485
-------------------------------------------------------------------------------------------------------------------------------
Average Number of Contracts Outstanding
During the Period 2,201,560 1,948,332 2,004,982 1,835,534 1,747,846 1,688,525
-------------------------------------------------------------------------------------------------------------------------------
Repossessions as a Percentage of Average
Number of Contracts Outstanding(3) 1.71% 1.83% 1.82% 2.16% 2.77% 3.40%
-------------------------------------------------------------------------------------------------------------------------------
Net Credit Losses as a Percentage of
Liquidations (1) (2) 1.70% 1.74% 1.77% 1.91% 2.77% 3.36%
-------------------------------------------------------------------------------------------------------------------------------
Net Credit Losses as a Percentage of
Average Portfolio Outstanding (1) (3) 0.74% 0.77% 0.78% 0.98% 1.39% 1.80%
-------------------------------------------------------------------------------------------------------------------------------
(1) Net credit losses are equal to the aggregate of the balances of all
receivables which are determined to be uncollectible in the period, less
any amounts realized from the sale of repossessed vehicles and any
recoveries on receivables charged off in the current or prior periods,
net of any disposition expenses and any dealer commissions which CFC
failed to recover on receivables that were prepaid or charged off.
(2) Liquidations represent monthly cash payments and charge-offs which reduce
the outstanding balance of a receivable.
(3) Percentages have been annualized for the six months ended June 30, 2001
and 2000, and are not necessarily indicative of the experience for the
entire year.
- -----------------------------------------------------------------------------------------------------------------------------------
10
- ----------------------------------------------------------------------------------------------------------------------
CFC Delinquency Experience
---------------------------------------------------------------------------------
At June 30, At December 31,
2001 2000 2000 1999 1998 1997
---------------------------------------------------------------------------------
Portfolio ($ Millions) $37,235 $30,422 $33,776 $27,255 $24,854 $21,879
--------------------------------------------------------------------------------------------------------------
Delinquencies as a
Percentage of the Portfolio
--------------------------------------------------------------------------------------------------------------
31 - 60 Days 1.29% 1.26% 1.53% 1.78% 2.27% 3.24%
--------------------------------------------------------------------------------------------------------------
61 Days or More 0.16% 0.12% 0.17% 0.17% 0.20% 0.46%
--------------------------------------------------------------------------------------------------------------
Total 1.45% 1.38% 1.70% 1.95% 2.47% 3.70%
--------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
PAYMENTS ON THE SECURITIES
Payment Dates
o Interest and principal will be payable on the 6th of each month. If the
6th is not a business day, then interest and principal will be payable on
the next business day.
o The first payment will be on October 8, 2001.
o Payments will be payable to securityholders of record on the
business day before the payment date.
Interest Payments
o The first interest payment will be calculated on the original principal
amount of each class of notes at the applicable per annum interest rate.
o Subsequent interest payments will be calculated on the outstanding
principal balance of each note class as of the prior payment date (after
giving effect to any payment of principal on that date) at the applicable
per annum interest rate.
o To calculate interest due on the A-1 notes on a payment date, the per
annum interest rates will be converted from an annual rate as follows:
11
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Days in Initial Days in Subsequent Day Count
Interest Accrual Period Interest Accrual Periods Convention
- ------------------------------------------------------------------------------
From To
(including) (excluding)
--------------------------------------------------------------------
25 days Prior Current actual/360
payment date payment date
--------------------------------------------------------------------
- -----------------------------------------------------------------------------
o To calculate the interest due on the A-2, A-3 and A-4 notes on a payment
date, the per annum interest rates will be converted from an annual rate
as follows:
- ------------------------------------------------------------------------------
- -------------------------------------------------------------------------
Days in Initial For Subsequent Interest Day Count
Interest Accrual Period Accrual Periods Convention
- -------------------------------------------------------------------------
23 days 1/12th of per annum 30/360
interest rate
- ------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
o Interest payments on all classes of notes will have the same priority. If
the available amount for interest payments, including the balance in the
reserve fund, is less than the amount due, each class of notes will
receive their pro rata share.
Refer to the "Flow of Funds" section for information on how the amount
available for interest payments is determined. Also refer to the "Credit
Enhancement - Reserve Fund" section for information on how the reserve fund
may be used to make interest payments.
Principal Payments
o The amount of principal payments on the securities on each payment date
will generally equal the amount of principal that was collected on the
receivables during the prior calendar month plus Excess Interest
Collections minus the overcollateralization distribution amount.
o Principal of each class of notes will generally be repaid over a span of
several consecutive months.
o The trust will pay principal sequentially to the earliest maturing class
of notes then outstanding until such class is paid in full.
o The certificates will not receive any principal payments until all notes
are paid in full.
o The trust is required to pay the outstanding principal of each class of
notes by the applicable Legal Final.
o The final principal payment on any class of notes could occur significantly
earlier than its Legal Final.
o The rate of principal payment on the notes will increase to the extent
Excess Interest Collections are applied to pay note principal.
12
Refer to the "Flow of Funds" section for information on how the amount
available for principal payments is determined. Refer to the "Credit
Enhancement" section for information on Excess Interest Collections.
Optional Redemption
The servicer will have the option to purchase all of the remaining
receivables from the trust when their aggregate principal balance declines to
an amount that is less than or equal to 10% of the initial aggregate principal
balance of the receivables, or $195,012,852 or less. If the servicer decides
to exercise this option, then the outstanding principal amounts of the A-4
notes and the certificates, together with any accrued and unpaid interest,
will be repaid in a lump sum payment. The lump sum payment under this optional
redemption will shorten the maturity of the A-4 notes and certificates.
FLOW OF FUNDS
Sources of Funds Available for Distribution
Funds from the following sources may be available to make payments on
the securities on each payment date:
o collections received on the receivables during the prior calendar month,
o net recoveries received during the prior calendar month on receivables
that were charged off as losses in prior months,
o investment earnings on the reserve fund received during the prior
calendar month,
o administrative and/or warranty repurchases, and
o the reserve fund.
13
Application of Available Funds
On each monthly payment date the total funds available (except for the
reserve fund) will be distributed in the following order of priority:
- ------------------------------------------------------------------------------
Monthly Flow of Funds
----------------------------------------------------
pay servicing fee
----------------------------------------------------
----------------------------------------------------
pay accrued interest on the notes
----------------------------------------------------
----------------------------------------------------
replenish reserve fund,
if necessary, up to the initial amount
----------------------------------------------------
----------------------------------------------------
pay up to the outstanding principal
amount of the A-1 notes
----------------------------------------------------
----------------------------------------------------
pay the overcollateralization
distribution amount, if any, to
DaimlerChrysler Retail Receivables LLC
----------------------------------------------------
----------------------------------------------------
pay up to the outstanding principal
amount of the A-2 notes
----------------------------------------------------
----------------------------------------------------
pay up to the outstanding principal
amount of the A-3 notes
----------------------------------------------------
----------------------------------------------------
pay up to the outstanding principal
amount of the A-4 notes
----------------------------------------------------
----------------------------------------------------
pay up to the outstanding principal
amount of the certificates
----------------------------------------------------
----------------------------------------------------
distribute remaining balance, if any, to
DaimlerChrysler Retail Receivables LLC
----------------------------------------------------
- ------------------------------------------------------------------------------
14
CREDIT ENHANCEMENT
The following forms of credit enhancement are intended to enhance the
likelihood of full payment of principal and interest due to the noteholders
and to decrease the likelihood that the noteholders will experience losses of
principal or interest on their notes.
Overcollateralization
Overcollateralization is represented by the amount by which (i) the
principal balance of receivables minus the yield supplement
overcollateralization amount exceeds (ii) the principal balance of the
securities. The initial overcollateralization amount of $64,976,635.85 is
equal to the initial receivables balance of $1,950,128,520.05 minus the
initial yield supplement overcollateralization amount of $28,678,884.20 minus
the initial principal amount of the securities of $1,856,473,000.00. This
excess collateral is intended to protect noteholders from losses on the
receivables.
The Trust will attempt to maintain an overcollateralization amount
(i.e., the amount by which (i) the principal balance of the receivables minus
the yield supplement overcollateralization amount exceeds (ii) the principal
balance of the securities) at least equal to 4.00% of the amount equal to (x)
the principal balance of the receivables as of the prior calendar month end
minus (y) the yield supplement overcollateralization amount for that payment
date. Once the Class A-1 Notes are paid in full, total funds available (except
funds in the reserve fund) after paying the servicing fee, accrued and unpaid
interest on the notes and any reserve fund deposit will be applied (i) to the
payment of principal of the securities and (ii) to pay the
overcollateralization distribution amount to DaimlerChrysler Retail
Receivables LLC. As illustrated in the "Application of Available Funds"
section, the trust may begin making payments of the overcollateralization
distribution amount to DaimlerChrysler Retail Receivables LLC on the same
payment date on which the A-1 notes are paid in full. No overcollateralization
distribution will be made in any month in which the balance of the reserve
fund is below $4,641,182.50. The overcollateralization distribution amount to
be distributed on each payment date will be the greater of:
(i) $0.00
Or
(ii) the lesser of (a) D - [S - (P x 96.00%)] or (b) D minus the A-1
notes balance immediately prior to the current payment date
Where:
Total funds available accrued
D = for distribution (except minus servicing + interest on + reserve
for the reserve fund) fee the notes fund deposit
S = The outstanding principal amount of the securities as of
the prior payment date, after giving effect to payments made
on that date.
P = The outstanding principal balance of the receivables as of
the prior calendar month end minus the YSOA for that payment
date.
YSOA= For each payment date, the amount set forth in the table
under "Yield Supplement Overcollateralization Amount".
15
Excess Interest Collections
"Excess Interest Collections" are generally equal to (A) the sum of (i)
interest collections received on the receivables during the prior calendar
month, (ii) principal collections attributable to the reduction in the yield
supplement overcollateralization amount from the prior payment date and (iii)
investment earnings on the reserve fund received during the prior calendar
month minus (B) the sum of (i) the servicing fee for the prior calendar month,
(ii) accrued interest on the notes, and (iii) the amount, if any, required to
replenish the reserve fund to $4,641,182.50.
Excess Interest Collections provide an additional form of credit
enhancement since they will be applied to the payment of principal of the
securities to the extent described above under the "Flow of Funds -
Application of Available Funds" section.
If credit losses on receivables and delinquent receivables decrease the
amount of interest collections received on the receivables in a month, Excess
Interest Collections will be reduced or eliminated for such month.
Reserve Fund
o On September 13, 2001, the seller will provide funds from the proceeds of
its sale of receivables to establish a $4,641,182.50 reserve fund.
o The indenture trustee will hold the reserve fund for the benefit of the
noteholders.
o The reserve fund will be invested in high quality, short term investments
which mature on or prior to each monthly payment date.
o If the total funds available for distribution minus the servicing fee is
less than accrued interest on the notes, the reserve fund will be
available to make interest payments.
o If a class of notes has not been paid in full on its Legal Final, the
reserve fund will be applied to the payment of principal for that class
of notes.
o If the aggregate outstanding principal amount of the notes exceeds the
outstanding principal balance of the receivables as of the prior calendar
month end, the reserve fund will be applied to the payment of principal
of the notes.
o As illustrated in the "Flow of Funds" section above, on each payment date
the reserve fund will be reinstated up to the initial balance to the
extent funds are available.
o After full payment of all accrued interest on the notes and the
outstanding principal balance of the securities, the reserve fund will be
distributed to DaimlerChrysler Retail Receivables LLC.
Subordinated Certificates
As additional credit enhancement, the certificates do not bear interest
and will not receive any principal payments until the notes are paid in full.
The payments on the certificates are subordinated to payments on the notes to
decrease the likelihood that the trust will default in making payments due on
the notes.
16
YIELD SUPPLEMENT OVERCOLLATERALIZATION AMOUNT
The sum of the servicing fee rate and the weighted average interest
rate of the notes will exceed, on the date of issuance of the notes, and is
expected to continue to exceed the weighted average APR of the Receivables.
The yield supplement overcollateralization amount is intended to compensate
for such negative differential.
"Yield Supplement Overcollateralization Amount" means, with respect
to any payment date, the amount specified below with respect to such payment
date:
Closing Date................... $28,678,884.20 August 2004.................... $3,346,967.32
October 2001................... 27,554,471.62 September 2004................. 3,038,395.65
November 2001.................. 26,452,659.89 October 2004................... 2,746,335.81
December 2001.................. 25,373,566.22 November 2004.................. 2,470,149.19
January 2002................... 24,317,308.29 December 2004.................. 2,209,878.82
February 2002.................. 23,284,004.28 January 2005................... 1,965,597.88
March 2002..................... 22,273,772.83 February 2005.................. 1,737,373.99
April 2002..................... 21,286,733.12 March 2005..................... 1,525,272.58
May 2002....................... 20,323,004.76 April 2005..................... 1,329,301.85
June 2002...................... 19,382,707.91 May 2005....................... 1,149,215.12
July 2002...................... 18,465,963.18 June 2005...................... 984,260.35
August 2002.................... 17,572,891.71 July 2005...................... 833,783.31
September 2002................. 16,703,615.12 August 2005.................... 697,212.61
October 2002................... 15,858,255.54 September 2005................. 573,867.44
November 2002.................. 15,036,932.74 October 2005................... 463,142.90
December 2002.................. 14,239,763.51 November 2005.................. 364,678.21
January 2003................... 13,466,865.38 December 2005.................. 278,493.04
February 2003.................. 12,718,360.06 January 2006................... 204,646.64
March 2003..................... 11,994,355.67 February 2006.................. 143,073.67
April 2003..................... 11,294,950.23 March 2006..................... 93,583.26
May 2003....................... 10,620,112.11 April 2006..................... 56,161.51
June 2003...................... 9,969,571.06 May 2006....................... 30,260.75
July 2003...................... 9,343,109.66 June 2006...................... 13,767.80
August 2003.................... 8,740,538.93 July 2006...................... 4,623.28
September 2003................. 8,161,647.01 August 2006.................... 899.98
October 2003................... 7,606,394.71 September 2006................. 60.52
November 2003.................. 7,074,837.56 October 2006................... 7.04
December 2003.................. 6,567,044.43 November 2006.................. 5.21
January 2004................... 6,083,108.88 December 2006.................. 3.67
February 2004.................. 5,623,099.59 January 2007................... 2.42
March 2004..................... 5,186,990.66 February 2007.................. 1.46
April 2004..................... 4,774,788.91 March 2007..................... 0.79
May 2004....................... 4,386,082.81 April 2007..................... 0.39
June 2004...................... 4,019,399.93 May 2007....................... 0.13
July 2004...................... 3,673,392.04
The yield supplement overcollateralization amount has been calculated
for each payment date as the sum of the amount for each Receivable equal to
the excess, if any, of
17
o the scheduled payment due on such Receivable for each future
collection period discounted to present value as of the end of
the preceding collection period at the APR of such Receivable,
over
o the scheduled payments due on the Receivable for each future
collection period discounted to present value as of the end of
the preceding collection period at 4.35%.
For purposes of such calculation, future scheduled payments on the
Receivables are assumed to be made on their scheduled due dates without any
delays, defaults or prepayments.
SERVICING
Compensation
o The servicer will be compensated on a monthly basis.
o The first servicing fee will be calculated on the original
principal amount of the receivables at 1/12th of 1% per month.
o For the first servicing fee calculation, the per annum
servicing fee rate will be converted from an annual rate using
the number of days from August 29, 2001 to, and including,
September 30, 2001 on a 30/360 basis, or 32 days.
o Subsequent servicing fees will be calculated on the principal
balance of the receivables as of the first day of the prior
calendar month at 1/12th of 1%.
o As illustrated in the "Flow of Funds" section above, the
servicing fee will be paid out of the total funds available for
distribution each month.
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