NATIONAL AUTO FINANCE FORMS AUTO FINANCING ALLIANCE WITH FIRST UNION.BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--May 8, 1996--Auto Credit Clearinghouse clearinghouse Institution established by firms engaged in similar activities to enable them to offset transactions with one another in order to limit payment settlements to net balances. L.P (ACCH ACCH Association for the Care of Children's Health ACCH Associated Control Channel ACCH American Car Club Hungary ACCH Albuquerque Christian Children's Home (Albuquerque, NM) ACCH Air Cooled Chiller (HVAC) ), a subsidiary of National Auto Finance Company L.P. (NAFCO), today announced that it has entered into its first exclusive referral arrangement for the underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. , financing and servicing of non-prime consumer auto loans with First Union Corporation's Sales Finance Group. First Union Corporation is the sixth largest bank holding company in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . NAFCO, which underwrites, finances and services non-prime consumer auto loans in eighteen states in the East and Southeast through its own client base of over 500 auto dealers, recognized the need to provide an outlet for banks and other large financial institutions to refer higher-risk, non-prime auto loan applications not otherwise underwritten or financed by such banks and institutions. ACCH was formed in September September: see month. 1995 specifically to act as the clearinghouse for such banks and financial institutions. Since its inception, ACCH has been test marketing its referral program with First Union's Sales Finance Group, which currently is in the business of underwriting and financing only prime consumer auto loans through a client network of over 3,300 auto dealers in twelve eastern states Eastern States can refer to several locations:
Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants extensions at the end of each year. "This alliance with First Union validates our `clearinghouse' concept for ACCH," said executive vice president Bill Magro. "Banks that are already active in the auto loan market are searching for opportunities to broaden their loan product offering to their dealership clients. Outright ownership of a non-prime lending subsidiary has not proven to be the answer for most banks. With the success of the First Union program, we anticipate other banks and financial institutions will seek participation in our clearinghouse program." NAFCO and ACCH anticipate significant annual growth over the next three years as the ACCH program rolls out to more customers. CONTACT: National Auto Finance Company L.P., Boca Raton Roy Tipton, 800/787-6232 |
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