Introduction to Structured Finance

APPENDIX I

Parties to Transaction

Sponsor/Originator: CNH Capital America LLC.

Servicer: New Holland Credit Company, LLC.

Backup Servicer: Systems & Services Technologies, Inc.

Indenture Trustee: JP Morgan Chase Bank.

Trustee: The Bank of New York.

■ Noteworthy Changes

• Decline in Enhancement Levels: Initial enhancement has been reduced by 65 basis points (bps) for the class A notes and 125 bps for the class B notes from the closing levels in the CNH 2005-B transaction. The 2006-A transaction will not include a class C tranche, which provided subordination for the class A and B notes in the prior transactions. These reductions in enhancement are the net result of changes in the size of the class B notes (decrease of 60 bps), removal of class C notes (decline of 100 bps) and a reduction in the reserve account of 25 bps. When sizing enhancement levels, Fitch took into consideration, among other things, the continually improving static-loss performance of both new and used agricultural and construction equipment, the collateral characteristics and certain structural features of the 2006-A transaction. These features include a $387 million prefunding amount (approximately 33.6% of initial receivables). Fitch notes that, given the size of the prefunding amount, the addition of new loans should not significantly affect closing date pool characteristics and concentrations.
• Shifting Payment ...