Wall Street Compañía Hipotecaria, S. A. (today La Hipotecaria, S. A.) acting as trustee, according to the terms and conditions of the First Mortgage Trust, incorporated March 1, 1999 by Wall Street Securities, S. A. as Trustee and Beneficiary.
MBS Characteristics
MBS (Mortgage-Backed Securities) are issue in two (2) series in denominations of $1,000 each.
Issue Amount
$15,000,000: Series A for the sum of $13,500,000 and Series B for the sum of $1,500,000.
Maturity Date
The maturity date of both series is February 22, 2029 or when the last mortgage loan in the trust is cancelled in full, whichever occurs last.
Repayment of Capital
In the case of Series A, the issuer will make partial quarterly repayments of capital, and the case of Series B, repayments of capital will be annual.
Interest Rate, Series A
The interest rate of Series A is indexed to 1.75% below the Reference Rate published quarterly by the Banking Superintendent of Panama.
Interest Rate, Series B
The interest rate of Series B is fixed annually based on the balance in the interest account of the trust, after debiting the account according to the terms and conditions of the Administration Agreement and Trust Agreements, but prior to debiting the account for payment of interest to the holders of the Series B. The maximum rate permitted is Reference Rate, plus 5.5%
Extraordinary Interest
If the trustee determines that it is advantageous to sell one or more of the mortgages credit owned by the trust and such a sale results in a profit for the trust, said profit will be divided in equal parts between the registered owners of the Series A and Series B.
Base for Interest Calculation
365 calendar days
Frequency of Interest Payments
The Series A will pay interest four times per year on January 1, April 1, July 1 and October 1. Series B will pay interest once per year on January 10.
Guarantee
Both series are guaranteed solely by the general credit of the trust and the assets that comprise the trust.
Use of Funds
The trustee will use the funds from this MBS issue to purchase a defined portfolio of mortgage loans.
Prior Redemption
Holders of both series will receive partial and periodic payments of capital approximately equivalent to the amortization of capital of the mortgages that comprise the trust.
Fiscal Treatment
Interest payments are exempt from local income taxes as per Panamanian law.
Subscriber
Wall Street Securities, S.A.
Trustee and Administrator
Wall Street Compañia Hipotecaria, S.A. (today La Hipotecaria)
