Home
About CATD
About DCAT
Investor Info
Shareholders Only
Glossary of DCAT Terms
Contact CATD
CATD/DCAT Links

CATD
The Crescent Center
6075 Poplar Avenue
Suite 125
Memphis, TN 38119

(901) 333-8600

 


Glossary of DCAT Terms

Add-on - 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.
 

All-in Rate The interest rate necessary to amortize DCAT's Cost of Funds plus the Add-on over the life of the loan.


Approval Letter – 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.


Approved 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.


Basis Point(s) - A basis point (“bps”) is 0.01 percentage point.


Caterpillar Financial Services Corporation (“CFSC” or “CAT Finance”) A 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 program.

Credit 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").

Commercial Paper ("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 - A 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.

Dealer 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 Letter.

Face Amount– 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 – Annual distribution 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.

Rolling– The process of issuing new CP to repay maturing CP and refinance a maturing loan.

Standby 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.

The commercial paper program of the U.S. Caterpillar® dealers