Fitch Rates Arkansas Student Loan Revenue Bonds, Series 2006.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch has assigned ratings to the following student loan revenue bonds issued by the Arkansas Student Loan Authority: -- $44,000,000 senior series 2006A-1 (35-day auction rate securities)'AAA'; -- $58,500,000 senior series 2006A-2 (35-day auction rate securities) 'AAA'; -- $61,100,000 senior series 2006A-3 (35-day auction rate securities) 'AAA'; -- $25,000,000 senior series 2006A-4 (28-day auction rate securities) 'AAA'; -- $15,000,000 subordinate series 2006B-1 (35-day auction rate securities) 'A'. The ratings on the series 2006 bonds as listed above are based on the quality of the student loan portfolio, the credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing provided, and the sound legal structure of the trust. The collateral consists entirely of Federal Family Education Loan Program The Federal Family Education Loan Program (FFELP) is a United States Department of Education program that provides for private organizations to market, originate, and service federally guaranteed loans, such as Stafford and PLUS loans to students and their parents. (FFELP FFELP Federal Family Education Loan Program ) student loans. In addition, the ratings on the senior bonds benefit from the subordination provided by the subordinate bonds. The ratings address the ability of the trust to pay bond principal at maturity and pay timely interest. The ratings do not address the ability of the trust to pay carry-over interest, nor do they address the ability of the auction-rate bondholders to successfully remarket their bonds at an auction now or in the future. The senior series 2006A-1, 2006A-2, 2006A-3, 2006A-4 bonds and the subordinate series 2006B bonds are issued pursuant to an Indenture of Trust, dated as of Nov. 15, 1994, as amended and restated by the Amended and Restated Indenture of Trust, dated as of Sept. 1, 2000, as previously, as further supplemented by the Fourth Supplemental indenture of Trust, dated as of March 1, 2005, and as further supplemented by the Fifth Supplemental indenture of Trust, dated as of June 1, 2006. The bond proceeds will be deposited to the acquisition account and be used to acquire or originate FFELP student loans, and pay costs of issuance. The senior series 2006A-1, 2006A-2, 2006A-3, and subordinate series 2006B-1 bonds are tax-exempt, 35-day auction-rate securities. Interest on the tax-exempt bonds is payable semiannually beginning Dec. 1, 2006. The senior series 2006A-4 bonds are taxable, 28-day auction-rate securities. Interest on the taxable bonds is payable on the first business day following the end of each auction period. The legal final maturity date for the series 2006 bonds as listed above is Dec. 1, 2040. Arkansas Student Loan Authority (ASLA ASLA American Society of Landscape Architects ASLA Australian School Library Association ASLA Anti-Saloon League of America ASLA American Seminar Leader's Association ASLA Assistance to State and Local Authorities ASLA Arrayed-Segment Loop Antenna ), a body politic BODY POLITIC, government, corporations. When applied to the government this phrase signifies the state. 2. As to the persons who compose the body politic, they take collectively the name, of people, or nation; and individually they are citizens, when considered and corporate and an instrumentality Instrumentality Notes issued by a federal agency whose obligations are guaranteed by the full-faith-and-credit of the government, even though the agency's responsibilities are not necessarily those of the US government. of the state of AR, was established in 1977 under Act 873 of the Acts of Arkansas. ASLA was created for the purpose of acquiring qualified student loans on the secondary market and making direct loans to eligible borrowers. The loan portfolio is serviced by Educational Services of America, Inc., and Nelnet, Inc. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, 'www.fitchratings.com'. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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