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Proc-Type: 2001,MIC-CLEAR
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MIC-Info: RSA-MD5,RSA,
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NISSAN AUTO RECEIVABLES 1999-A OWNER TRUST Financial Statements as of March 31, 2000, and for the Period August 6, 1999 (date of formation) through March 31, 2000 NISSAN AUTO RECEIVABLES 1999-A OWNER TRUST BALANCE SHEET March 31, 2000 (Dollars in Thousands) ASSETS: Cash and cash equivalents in collection account (Note 2) $ 28,637 Finance receivables (Notes 2, 4, 6 and 8) 524,273 Collections receivable from Servicer (Note 2) 1,405 Receivable from yield supplement account (Note 5) 946 TOTAL ASSETS $555,261 LIABILITIES: Servicing fee payable (Notes 2 and 3) $ 459 Distributions payable Class A-1 (Notes 3 and 4) 14,917 Distributions payable Class A-2 (Notes 3 and 4) 13,347 Distributions payable Class A-3 (Notes 3 and 4) 1,115 Excess amounts payable to Seller (Notes 3 and 4) 1,077 Reimbursement of advance (Note 3) 73 Total liabilities 30,988 NET ASSETS HELD IN TRUST: Asset backed certificates, Class A-1 (Notes 3, 4 and 6) 0 Asset backed certificates, Class A-2 (Notes 3, 4 and 6) 247,979 Asset backed certificates, Class A-3 (Notes 3, 4 and 6) 206,740 Asset backed certificates, Certificates (Notes 3, 4 and 6) 69,554 Total net assets held in trust 524,273 TOTAL LIABILITIES AND NET ASSETS HELD IN TRUST $555,261 See accompanying notes to financial statements. NISSAN AUTO RECEIVABLES 1999-A OWNER TRUST STATEMENT OF INCOME Period August 6, 1999 (date of formation) through March 31, 2000 (Dollars in Thousands) INCOME: Interest income on finance receivables (Notes 2 and 4) $38,321 Interest income from yield supplement account (Note 5) 418 Total income 38,739 EXPENSE: Servicing fee (Notes 2 and 4) 4,261 Reimbursement of advance (Note 2) 476 Excess amounts allocated to reimburse for principal losses (Note 3) 2,193 Excess amounts paid to Seller (Notes 3 and 4) 10,160 Total expense 17,090 NET INCOME $21,649 See accompanying notes to financial statements NISSAN AUTO RECEIVABLES 1999-A OWNER TRUST STATEMENT OF CHANGES IN NET ASSETS HELD IN TRUST Period August 6, 1999 (date of formation) through March 31, 2000 (Dollars in Thousands) See accompanying notes to financial statements. NISSAN AUTO RECEIVABLES 1999-A OWNER TRUST STATEMENT OF CASH FLOWS Period August 6, 1999 (date of formation) through March 31, 2000 (Dollars in Thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 21,649 Adjustments to reconcile net income to net cash provided by operating activities: Changes in operating assets and liabilities: Increase in collections receivable from Servicer (1,405) Increase in receivable from yield supplement account (946) Increase in servicing fee payable 459 Increase in payable to Seller 1,077 Increase in reimbursement of advance 73 Net cash provided by operating activities 20,907 CASH PROVIDED BY INVESTING ACTIVITIES principal payments received from finance receivables 207,871 CASH FLOWS FROM FINANCING ACTIVITIES: Trust distributions: Class A-1 noteholders (184,358) Class A-2 noteholders (8,575) Class A-3 noteholders (7,208) Net cash used in financing activities (200,141) CASH AND CASH EQUIVALENTS AT MARCH 31, 2000 $ 28,637 Supplemental disclosure of cash flow information Non-cash investing activities: Purchase of finance receivables in exchange for asset backed certificates $732,144 See accompanying notes to financial statements. NISSAN AUTO RECEIVABLES 1999-A OWNER TRUST NOTES TO FINANCIAL STATEMENTS PERIOD AUGUST 6, 1999 (DATE OF FORMATION) THROUGH MARCH 31, 2000 1. GENERAL INFORMATION The Nissan Auto Receivable 1999-A Owner Trust (the "Trust"), a Delaware business trust, was created pursuant to that certain Trust Agreement, dated as of August 6, 1999, as amended by the Amended and Restated Trust Agreement, dated
as of August 6, 1999, by and between Nissan Auto Receivables Corporation ("NARC"), as depositor, and Chase Manhattan Bank Delaware, as owner trustee. The Trust, NARC, as seller and Nissan Motor Acceptance Corporation ("NMAC" or the "Servicer"), as
servicer, entered into a Sale and Servicing Agreement, dated as of August 1, 1999 (the "Sale and Servicing Agreement"), pursuant to which the motor vehicle retail installment sales contracts ("Receivables") and related property were transferred to the
Trust. Also on August 1, 1999, the Trust caused the issuance, pursuant to an Indenture, dated August 1, 1999 (the "Indenture"), by and between the Trust, as issuer, and Norwest Bank Minnesota, National Association, as indenture trustee, and pursuant to
the Sale and Servicing Agreement, of the Notes, issued in the following classes: Class A-1, Class A-2 and Class A-3 (collectively, the "Notes"). The Notes with an aggregate principal balance of $662,590,000 were sold to Merrill Lynch, Pierce, Fenner &
Smith Incorporated, Chase Securities Inc., and J.P. Morgan Securities Inc., as underwriters (the "Underwriters"), pursuant to an Underwriting Agreement, dated August 25, 1999 (the "Underwriting Agreement"), by and among NARC, NMAC, Merrill Lynch, Pierce,
Fenner & Smith Incorporated, on behalf of itself and as representative of the Underwriters. The Notes have been registered pursuant to the Securities Act of 1933, as amended, under a Registration Statement on Form S-3. The parent of the Seller, NMAC, services the Receivables pursuant to the Sale and Servicing Agreement, dated as of August 1, 1999, and is compensated for acting as the Servicer. In order to facilitate its servicing functions and
minimize administrative burdens and expenses, the Servicer retains physical possession of the documents relating to the Receivables as custodian for the Trustee. The Trust has no employees. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation - The financial statements have been prepared on an accrual basis of accounting. The preparation of these financial statements requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and cash equivalents - The Trust considers investments purchased with a maturity of three months or less to be cash equivalents. Cash and cash equivalents in the collection account as of March 31, 2000 amounted to
$28,637,000, which represents payments received by the Servicer during the period March 1, 2000 to March 31, 2000. Collections receivable from Servicer - Collections receivable from the Servicer amounted to $1,405,000 and are substantially comprised of collections received by the Servicer from the Receivables on March 31, 2000 and deposited
in a collection account on April 3, 2000. Finance Receivables - Interest income on the Receivables is calculated using the simple interest method and is recorded as earned. The finance receivables had a weighted average coupon rate of 7.23% and a weighted average
maturity of 37 months at March 31, 2000. Servicing Fee - The servicing fee is calculated as 1% of the beginning balance of finance receivables and is recorded on a monthly basis. The amount of servicing fee for the period ended March 31, 2000 amounted to $4,261,000, of
which $459,000 is included in servicing fee payable at March 31, 2000. Advance - The Servicer is required to advance monthly payment amounts that are delinquent but deemed collectable. 3. PRIORITIES OF DISTRIBUTIONS The total collections received by the Trust are distributed in the following priority: Unpaid Advance Reimbursement Servicing fee to Seller Class A-1 interest Class A-2 interest Class A-3 interest Class A-1 principal (all principal until paid in full, then class A-2) Class A-2 principal (all principal until paid in full, then class A-3) Class A-3 principal (all principal until paid in full, then Certificate Class) Reserve account Certificate Class principal Excess amounts to Seller If losses are greater than the excess amounts to Seller, the principal shortfall is carried over to future periods and is reduced by excess collections from future periods, if any.
Principal (including prepayments) is passed through on each distribution date commencing September 15, 1999, as defined in the Sales and Servicing Agreement. Principal consists of payments on the Receivables that are allocable to the repayment of the amount financed. Interest is passed through to noteholders on each distribution date, as defined in the Agreement, commencing September 15, 1999, at a rate of 5.619% per annum for Class A-1, at a rate of 6.120% for Class A-2 and at a rate of 6.470% per annum for Class A-3. Excess amounts, if any, which are the difference between the yield of the finance receivables and the sum of the servicing fee, note rates, principal payments and losses, are distributed to the Seller in accordance with the terms of the Agreement.
The "as-of" date of the finance receivables was July 31, 1999. Principal payments passed through on September 15, 1999 included principal payments for the period August 1, 1999 to August 31, 1999. Interest collected for the period prior to the date of formation of the Trust was distributed to the Seller.
Payments to the Servicer, Class A noteholders and Seller for the period ended March 31, 2000 are summarized as follows (dollars in thousands):
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5. YIELD SUPPLEMENT ACCOUNT
The Sales and Servicing Agreement requires the Seller to set up a Yield Supplement Account ("YSA Account"), which is a separate trust account for the benefit of all Class A noteholders. This account is used to adjust the yield to the Trust for all Receivables purchased by the Trust with a yield less than the A-3 rate of 6.470%, plus the 1% Servicing Rate and an additional 0.50% (the "Required Rate"). Amounts in the YSA Account, which are released to the Trust on a monthly basis, are c
6. CREDIT ENHANCEMENT
To protect all Class A noteholders, the Sales and Servicing Agreement requires the Seller to set up a reserve account, which is a separate trust account for the benefit of the Class A noteholders. The initial deposit required and made by the Seller amounted to $5,491,000. Additionally, if certain loss and/or delinquency ratios rise above set limits, the Seller is required to deposit in the reserve account all excess servicing amounts otherwise distributable to the Seller, until the re it of the Class A noteholders. The initial deposit required and made by the Seller amounted to $5,491,000. Additionally, if certain loss and/or delinquency ratios rise above set limits, the Seller is required to deposit in the reserve account all excess servicing amounts otherwise distributable to the Seller, until the rese specified in the Sales and Servicing Agreement. The required amount at March 31, 2000 was $5,491,000. The reserve account amounted to $5,491,000 at March 31, 2000. Such reserve account is held by the Seller as a restricted cash balance.
The Seller will receive no distributions while the loss and/or delinquency ratios continue to be above the set limits for three consecutive months and until the reserve account reaches the level specified.
As of March 31, 2000, the anticipated credit losses on the Receivables based on historical loss experience are estimated to be $7,165,000. Management believes that future receipts of excess servicing amounts will be adequate to repay all amounts due, as such, no allowance for bad debts has been established.
7. FEDERAL INCOME TAXES
The Trust is classified as an owner trust, and therefore is not taxable as a corporation for federal income tax purposes. Each noteholder is treated as the owner of a pro rata undivided interest in each of the Receivables in the Trust .
8. ESTIMATED FAIR VALUE OF FINANCE RECEIVABLES
As of March 31, 2000, the estimated fair value of the finance receivables was $510,081,000. Cash and cash equivalents in collection account, collections receivable from Servicer, receivable from yield supplement account, and all payables approximate fair value due to the short-term maturities of these instruments. The fair value of the finance receivables was estimated by discounting the future cash flows using current market discount rates, historical prepayment and credit loss histo
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