Torque Securitisation (RF) Limited (Torque) was established as a funding initiative by iMasFinance in 2012 and is a special purpose vehicle which bought certain participating assets that complied with the eligibility criteria and portfolio covenants from iMasFinance. Torque funds the purchase of the participating assets by issuing unsubordinated, secured compulsory redeemable asset-backed notes to investors.
These notes were issued to various investors as class A, class B, class C and class D notes. The class B, class C and class D notes are subordinated in favour of the class A notes, the class C and class D notes are subordinated in favour of the class B notes and the class D notes are subordinated in favour of the class C notes.
The Security SPV has been established for the purpose of guaranteeing the performance by Torque of its obligations to the secured creditors set out in the Priority of Payments. The Security SPV has accordingly issued the guarantee to the secured creditors on the basis that they will only proceed against the Security SPV under the guarantee in the event of Torque failing to meet its obligations to them.
Torque has provided the Security SPV with an indemnity in terms of which it indemnifies the Security SPV against all claims made under the guarantee. Torque’s obligations to the Security SPV under this indemnity are secured by a cession and pledge of all Torque’s assets to the Security SPV.
Torque has appointed iMasFinance as the servicer in respect of the participating assets and iMasFinance will continue, inter alia, to collect payments and administer and manage the portfolio of participating assets on an ongoing basis as set out in the servicing agreement.