A charge to the borrower at loan inception to cover the direct and
indirect costs of operating the DCAT loan program (including the DCAT management fee and the Standby Fees). The Add-On is a component of the All-In Rate.
Rate – The interest rate necessary to amortize DCAT's Cost of Funds plus
the Add-on over the life of the
– A letter from
CFSC to DCAT and a borrower agreeing to purchase any loan(s) to the
borrower which is in default, up to the Approved Amount.
Amount – The maximum amount of loans to a borrower
which CFSC is obligated to purchase under the Dealer Loan Purchase
Agreement. The sum of the Face Amounts of all outstanding DCAT loans
to a borrower cannot exceed the Approved Amount.
Point(s) - A basis point (“bps”) is 0.01 percentage
Financial Services Corporation (“CFSC” or “CAT Finance”)
Delaware corporation which is a subsidiary of Caterpillar Inc. and
is headquartered in Nashville, Tennessee. CFSC provides Credit
Enhancement and liquidity support for the DCAT CP
Enhancement - When repayment of a
debt (or recovery of the lender’s principal and interest) has been
assured by a third party (the "Credit Enhancer").
("CP") - a short-term
unsecured debt of a borrower with a maximum maturity of 270 days.
Cooperative Association of Tractor Dealers, Inc. or CATD
A Michigan cooperative corporation formed in 1980. CATD is owned by 51 Caterpillar dealers (including all 49 US dealers) and is the sole-owner and member-manager of DCAT, LLC. and CATD Exchange Services, LLC, both of which are Delaware limited liability companies.
DCAT's Cost of Funds
The excess of the Face Amount of a CP obligation issued by DCAT to fund a loan(s) over the proceeds received by DCAT at funding.
Dealers Capital Access Trust, Inc. or DCAT, Inc.Commercial Paper
Tennessee corporation formed in 1992 and managed by CATD, Inc. DCAT,
Inc. was the predecessor lender to DCAT, LLC. It merged into DCAT,
LLC on July 10, 2012.
Loan Purchase Agreement
The agreement between DCAT and CFSC pursuant to which CFSC is
obligated to purchase any defaulted loan from DCAT, subject to the
Approved Amount set forth in the Approval
The total dollar amount due at the maturity date of CP or a loan. CP and loans are
funded on a discount basis, with a single payment of the Face Amount due on the maturity date.
Maximum DCAT Program Amount
The maximum aggregate amount of commercial paper (based on Face Amount) that DCAT may have outstanding at any time, as agreed upon by DCAT and CFSC under the terms of the DLPA, as amended from time to time.
Patronage Dividends –
to DCAT patrons from CATD based on the relative percentage of
DCAT management fees paid during the fiscal year. Patronage dividends distributed by CATD to
DCAT patrons are limited to the lower of GAAP or federal taxable
patronage source net income attributable to DCAT.
Placement Agent –
A broker-dealer with whom DCAT has entered into a placement agent agreement for the private sale or placement of DCAT CP by the agent.
The process of issuing new CP to repay maturing CP and refinance a
Fees - Fees
paid by DCAT to CFSC under the terms of the Dealer Loan Purchase
Agreement. Standby fees represent part of the Add-On and are applied
to each outstanding match-funded loan.