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Rule 15Ga-2 under the Exchange Act (17 CFR 240.15Ga-2)
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Exhibit No.
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Description
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Exhibit 99.1
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Independent Accountants’ Report on Applying Agreed-Upon Procedures, dated May 25, 2018.
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Name: |
Stefan Kramer
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Title: |
Vice President Finance & CFO
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Re: |
BMW Floorplan Master Owner Trust, Vehicle Loan-Backed Notes, Series 2018-1 – Data File Procedures
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(i) |
specified attributes identified by the Company in the electronic data file entitled “03-2018 Revised Proforma 2018-1 Potential Trust v3.xlsx” (the “Data File”) provided by the Company on May 8, 2018, containing information related to 178 revolving dealer floorplan financing receivables (the “Dealer Receivables”) as of March 31, 2018 (the “Preliminary Cutoff Date”),
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(ii) |
the Interest Due from the individual floorplan line totals on the Floorplan and Service Loaner Statement for each dealer within the Selected Dealer Group (defined below) as of the Preliminary Cutoff Date, and
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(iii) |
the Current Interest Charge on the Floorplan and Service Loaner Statements for the Selected Vehicles (defined below) as of the Preliminary Cutoff Date,
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The term “compared” means compared to the Source Documents indicated in the procedure and found it to be in agreement, unless otherwise stated. Such compared information was deemed to be in agreement if differences were attributable to rounding.
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The term “recomputed” means recalculated and compared the results to the information shown and found it to be in agreement, unless otherwise stated. Such recomputed information was deemed to be in agreement if differences were attributable to rounding.
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The term “rounding” means that dollar amounts were within $1.00.
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The term “Credit File Review Package” means the Financial Services Credit Committee and Loan Program Summary documentation.
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The term "Dealer Credit File" means any file containing some or all of the following documents: Original Contracts and amendments, Credit File Review Package, or other documentation comprising the overall credit file. The Dealer Credit File was maintained and furnished to us by the Company.
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The term “Mega Dealer Information” means information provided by the Company for the Dealer Group for Selected Dealer #12 set forth in Exhibit A.
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The term “Source Documents” means the Dealer Credit File, Company’s Equity Statement, Floorplan and Service Loaner Statement, Company's Monthly Billing Statement, Mega Dealer Information, and Credit File Review Package. The information from the Company's Equity Statement, Floorplan and Service Loaner Statement, and Company's Monthly Billing Statement were as of the Preliminary Cutoff Date unless otherwise noted.
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The term “Dealer Elected Credit Line Limit” means the dealer elected credit line limit which is less than the approved credit line limit set forth in Exhibit C.
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The term “Daily One-Month LIBOR Rate Schedule” means the daily one-month LIBOR rate for the month of March 2018 set forth in Exhibit D.
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The term “Provided Information” means the Data File, Source Documents, Dealer Elected Credit Line Limit, and Daily One-Month LIBOR Rate Schedule.
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I. |
Selected Dealers Procedures
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A. |
We randomly selected 25 Dealer Receivables from the Data File as instructed by the Company and listed in Exhibit A, attached hereto (the “Selected Dealers”). For the purpose of this procedure, the Company did not inform us as to the basis for how they selected the number of the Dealer Receivables that we were instructed to randomly select from the Data File.
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B. |
For each Selected Dealer, we compared or recomputed the specified attributes listed below in the Data File to the corresponding information appearing on or derived from the Source Documents, utilizing instructions provided by the Company (as applicable).
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Attribute (Field Name in the Data File)
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Source Document(s)/Instruction
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Cash Management (Cash Management)
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Company’s Equity Statement
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Ending Gross Balance (Gross Receivable)
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We recomputed the Ending Gross Balance as follows:
The Company instructed us to subtract the BMW and MINI Mobility Vehicles values and the Service Loaners value from the Ending Balance Grand Total on the Floorplan and Service Loaner Statement.
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Ending Net Balance (Net Balance)
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We recomputed the Ending Net Balance as follows:
The Company instructed us to subtract the following from the Ending Balance Grand Total on the Floorplan and Service Loaner Statement:
(i) BMW and MINI Mobility Vehicles value and the Service Loaners value; and
(ii) Cash Management on the Company’s Equity Statement.
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Attribute (Field Name in the Data File)
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Source Document(s)/Instruction
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Credit Line Limit (Revised Credit Limit)
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Credit File Review Package
We recomputed the Credit Line Limit as follows:
The Company instructed us to subtract the following from the approved Credit Line Limit in the Credit File Review Package:
(i) BMW and MINI Mobility Vehicles credit line limit in the Credit File Review Package; and
(ii) Service Loaners credit line limit in the Credit File Review Package.
For Selected Dealers #2, #4, #6, #12, and #24, the Company instructed us to use the Dealer Elected Credit Line Limit instead of the credit line limit stated in the Credit File Review Package for the specific credit lines set forth in Exhibit C.
For Selected Dealer #13, the Company instructed us to subtract the following items from the Credit Line Limit in the Credit File Review Package:
(i) BMW and MINI Mobility Vehicles credit line limit in the Credit File Review Package;
(ii) Service Loaners credit line limit in the Credit File Review Package; and
(iii) New and Used MINI credit line limit in the Credit File Review Package.
We found one exception that is listed in Exhibit B.
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C. |
For each Selected Dealer, we compared the dollar amount of the Ending Net Balance recomputed above in procedure B. to the dollar amount of the Credit Line Limit in the Dealer Credit File, and observed that such Ending Net Balance amount was less than the Credit Line Limit. For Selected Dealer #12, the Company instructed us to aggregate the ending net balance (Net Balance) and credit line limit (CRD_LIM_AMT) for each dealer comprising the dealer group using the Mega Dealer Information. We found that the aggregate ending net balance (Net Balance) was less than the aggregate credit line limit (CRD_LIM_AMT).
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II. |
Selected Dealer Groups Procedures
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A. |
We randomly selected 5 dealer groups from the Data File as instructed by the Company and listed in Exhibit A, attached hereto (the “Selected Dealer Groups”). For the purpose of this procedure, the Company did not inform us as to the basis for how they selected the number of dealer groups that we were instructed to randomly select from the Data File.
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B. |
For each dealer within the Selected Dealer Groups, we compared or recomputed the attributes listed below in the Data File to the corresponding information appearing on or derived from the Source Documents, utilizing instructions provided by the Company (as applicable).
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Attribute (Field Name in the Data File)
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Source Document(s)/Instruction
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Cash Management (Cash Management)
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Company’s Equity Statement
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Ending Net Balance (Net Balance)
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We recomputed the Ending Net Balance as follows:
The Company instructed us to subtract the following from the Ending Balance Grand Total on the Floorplan and Service Loaner Statement:
(i) BMW and MINI Mobility Vehicles value and the Service Loaners value; and
(ii) Cash Management on the Company’s Equity Statement.
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Ending Net Balances of new vehicles (New Units)
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We recomputed the Ending Net Balances of new vehicles as follows:
The Company instructed us to sum the Ending Balances for all subtotals of new vehicles on the Floorplan and Service Loaner Statement.
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Ending Net Balances of used vehicles (Used Units)
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We recomputed the Ending Net Balances of used vehicles as follows:
The Company instructed us to sum the Ending Balances for all subtotals of used vehicles on the Floorplan and Service Loaner Statement.
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C. |
We compared the Interest Due from the individual floorplan line totals on the Floorplan and Service Loaner Statement for each dealer within the Selected Dealer Group to the corresponding amounts on the Company’s Monthly Billing Statement sent to the Dealer.
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D. |
We summed the interest due for all the individual line totals listed on the Floorplan and Service Loaner Statement (“Total Interest Due”) for each dealer within the Dealer Group and compared this value to the Interest Due Grand Total on the summary on the Company’s Monthly Billing Statement.
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III. |
Selected Vehicles Procedures
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A. |
We randomly selected 10 vehicles for each of the 5 Selected Dealer Groups from the Floorplan and Service Loaner Statements as instructed by the Company (the “Selected Vehicles”). For the purpose of this procedure, the Company did not inform us as to the basis for how they selected the number of vehicles that we were instructed to randomly select from the Floorplan and Service Loaner Statements.
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B. |
We recomputed the Current Interest Charge for each Selected Vehicle listed on the Floorplan and Service Loaner Statements using (i) the Ending Balance, Number of Days Outstanding (using instructions below),
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and Interest Rate (based on a 360 day year and instructions below) obtained from the Company’s Monthly Billing Statement sent to the Dealer, less (ii) the Free Interest/Rebate Amount on the Floorplan and Service Loaner Statements, if any, as instructed by the Company (the “Recomputed Current Interest Charges”).
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If the Note Date was prior to the Preliminary Cutoff Date month and there was no payment date in the Preliminary Cutoff Date month, the Number of Days Outstanding was 31 days (number of days in the Preliminary Cutoff Date month).
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If the Note Date was prior to the Preliminary Cutoff Date month, there was a payment date in the Preliminary Cutoff Date month, and the Ending Balance was $0.00; the Number of Days Outstanding was the number of days from the first day of the month to the payment date including the first day of the month, but not the payment date.
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If the Note Date was prior to the Preliminary Cutoff Date month, there was a payment date in the Preliminary Cutoff Date month, and the Ending Balance was not equal to $0.00, the Number of Days Outstanding was 31 days (number of days in the Preliminary Cutoff Date month).
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If the Note Date was in the Preliminary Cutoff Date month and there was no payment date in the Preliminary Cutoff Date month, the Number of Days Outstanding was the number of days from the Note Date and the Preliminary Cutoff Date, including both the Note Date and the Preliminary Cutoff Date.
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If the Note Date was in the Preliminary Cutoff Date month and there was a payment date in the Preliminary Cutoff Date month, the Number of Days Outstanding was the days from the Note Date to the payment date, including the Note Date, but not the payment date.
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Selected Dealer Number
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Dealer Number
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1
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21851L
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2
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26200
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3
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40808
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4
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16418
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5
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46786
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6
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25522
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7
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23200
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8
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76431
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9
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76504
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10
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22006
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11
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21183
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12
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020219
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13
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42868
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14
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21851
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15
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26701
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16
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30414
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17
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21293
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18
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45289
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19
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00291
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20
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35023
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21
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26598
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22
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30956
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23
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22819
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24
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40335I
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25
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45051
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Selected Dealer Group Number
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Dealer Group
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1
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CENTR
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2
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SCHERER
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3
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PEABD
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4
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BRAMN
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5
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SEURO
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Selected Dealer Number
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Dealer Account Number
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Attribute
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Per Data File
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Per Source Document(s)/
Instruction
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19
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00291
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Credit Line Limit
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$10,500,000
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$10,000,000
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Selected Dealer Number
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Dealer Number
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Credit Line Limit Description
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Dealer Elected Credit Line Limit ($)
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2
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26200
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Used Other
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300,000
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2
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26200
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Used BMW
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2,450,000
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2
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26200
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Used MINI
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1,750,000
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2
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26200
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Used MINI
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500,000
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4
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16418
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Used Other
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300,000
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6
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25522
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New MINI
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3,000,000
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12
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020219
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New Subaru
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6,267,000
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12
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020219
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Used Other
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2,050,000
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24
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40335I
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Used Other
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1,700,000
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Date
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Daily One-Month LIBOR (%)
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3/1/2018
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1.686
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3/2/2018
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1.691
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3/3/2018
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1.691
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3/4/2018
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1.691
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3/5/2018
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1.702
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3/6/2018
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1.711
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3/7/2018
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1.718
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3/8/2018
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1.740
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3/9/2018
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1.750
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3/10/2018
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1.750
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3/11/2018
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1.750
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3/12/2018
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1.765
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3/13/2018
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1.770
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3/14/2018
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1.786
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3/15/2018
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1.808
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3/16/2018
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1.822
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3/17/2018
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1.822
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3/18/2018
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1.822
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3/19/2018
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1.841
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3/20/2018
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1.854
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3/21/2018
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1.861
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3/22/2018
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1.872
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3/23/2018
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1.875
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3/24/2018
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1.875
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3/25/2018
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1.875
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3/26/2018
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1.877
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3/27/2018
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1.877
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3/28/2018
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1.887
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3/29/2018
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1.883
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3/30/2018
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1.883
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3/31/2018
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1.883
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