Ford 2009 Annual Report Download - page 138

Notes to the Financial Statements
136 Ford Motor Company | 2009 Annual Report
NOTE 19. DEBT AND COMMITMENTS (Continued)
Credit Facilities
At December 31, 2009, Ford Credit and its majority-owned subsidiaries, including FCE Bank, plc ("FCE"), had
$1.3 billion of contractually-committed unsecured credit facilities with financial institutions, of which $645 million were
available for use. Of the credit facilities available for use, $276 million, $308 million, and $61 million expire in 2010, 2011,
and 2012, respectively. Of the $1.3 billion of contractually-committed credit facilities, almost all are FCE worldwide credit
facilities. The FCE worldwide credit facilities may be used, at FCE's option, by any of FCE's direct or indirect, majority-
owned subsidiaries. FCE will guarantee any such borrowings. All of the worldwide credit facilities 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.
In addition, at December 31, 2009, Ford Credit had $9.3 billion of contractually-committed liquidity facilities provided by
banks to support its FCAR program. Of the $9.3 billion of contractually-committed liquidity facilities, $4.4 billion and
$4.9 billion expire in 2010 and 2012, respectively. Utilization of these facilities is subject to conditions specific to the
FCAR program and Ford Credit having a sufficient amount of eligible assets for securitization. The FCAR program must
be supported by liquidity facilities equal to at least 100% of its outstanding balance. At December 31, 2009, $9.3 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's asset-backed securities. At December 31, 2009, the outstanding commercial paper
balance for the FCAR program was $6.4 billion, of which $1 million was held by Ford Credit.
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 $23.2 billion at
December 31, 2009 ($10.8 billion retail, $8.1 billion wholesale and $4.3 billion supported by various retail, lease or
wholesale) of which $7.4 billion are commitments to FCE. These committed liquidity programs have varying maturity dates,
with $20.2 billion having maturities within the next twelve months (of which $6.7 billion relates to FCE commitments), and
the balance having maturities between March 2011 and December 2011. While there is a risk of non-renewal of some of
these committed liquidity programs, which could lead to a reduction in the size of these programs and/or higher costs, Ford
Credit's capacity in excess of eligible receivables would enable it to absorb some reductions. 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 the
ability to obtain interest rate hedging arrangements for securitizations. At December 31, 2009, $11.2 billion of these
commitments were in use. These programs are free of material adverse change clauses, restrictive financial covenants 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.