Structural Overview

Liberty Street was established in 1997 to securitize a broad range of consumer and commercial assets originated by corporate and financial institution sellers, and is administered (although not owned) by Scotia Capital. It funds the purchase of financial assets through the issuance of A-1/P-1 rated commercial paper. For structured transactions funded by Liberty Street, Scotia Capital generally provides the majority of liquidity for each transaction and places the remaining required liquidity with one or more 3rd party banks. Commercial paper issued by Liberty Street is not directly guaranteed or supported by the client's credit. The commercial paper investor must rely on the quality of the underlying assets, Liberty Street's capital structure and Scotia Capital, as administrator for Liberty Street.

Management Overview

Liberty Street can issue up to US$15 billion of 4(2) commercial paper notes to purchase ABS and undivided interests in receivables pools originated by commercial and industrial companies and financial institutions. Liberty Street targets existing Scotia Capital clients.

Most receivable sales are affected through an intermediate special-purpose bankruptcy-remote subsidiary of an originator of the receivables. Liberty Street will maintain liquidity and credit support facilities provided by banks rated at least 'A-1'.

Liberty Street can fund both revolving and liquidating pools of assets on a committed or uncommitted basis. Liberty Street's credit and investment policy sets forth the terms and conditions for each asset purchase, and only those receivables that meet the credit standards are purchased. Most purchases are made on a revolving basis and collections are reinvested in new receivables of the seller. Generally, each receivables pool must have the required level of credit support needed to achieve at least an 'A' rating level.