Ford 2010 Annual Report Download - page 150

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Notes to the Financial Statements
148 Ford Motor Company | 2010 Annual Report
NOTE 19. DEBT AND COMMITMENTS (Continued)
The FCAR program must be supported by liquidity facilities equal to at least 100% of its outstanding balance. At
December 31, 2010, about $9 billion of FCAR’s bank liquidity facilities were available to support FCAR’s asset-backed
commercial paper, subordinated debt or FCAR’s purchase of Ford Credit asset-backed securities. At
December 31, 2010, the outstanding commercial paper balance for the FCAR program was $6.7 billion.
Committed Liquidity Programs
Ford Credit and its subsidiaries, including FCE, have entered into agreements with a number of bank-sponsored asset-
backed commercial paper conduits ("conduits") and other financial institutions whereby such parties are contractually
committed, at Ford Credit's option, to purchase from Ford Credit eligible retail or wholesale assets or to purchase or make
advances under asset-backed securities backed by retail, lease, or wholesale assets for proceeds of up to $24.2 billion at
December 31, 2010 ($12.5 billion retail, $9.4 billion wholesale, and $2.3 billion supported lease assets), of which
$7.5 billion are commitments to FCE. These committed liquidity programs have varying maturity dates, with $18.4 billion
having maturities within the next twelve months, of which about $3 billion relates to FCE commitments, and the remaining
balance having maturities between March 2012 and May 2015. Ford Credit plans to achieve capacity renewals to protect
its global funding needs, optimize capacity utilization and maintain sufficient liquidity. Ford Credit's ability to obtain
funding under these programs is subject to having a sufficient amount of assets eligible for these programs as well as its
ability to obtain interest rate hedging arrangements for certain securitization transactions. Ford Credit's capacity in excess
of eligible receivables would protect it against the risk of lower than planned renewal rates. At December 31, 2010,
$8.6 billion of these commitments were in use. These programs are free of material adverse change clauses, restrictive
financial covenants (for example, debt-to-equity limitations and minimum net worth requirements), and credit rating
triggers that could limit Ford Credit's ability to obtain funding. However, the unused portion of these commitments may be
terminated if the performance of the underlying assets deteriorates beyond specified levels. Based on Ford Credit's
experience and knowledge as servicer of the related assets, it does not expect any of these programs to be terminated
due to such events.