0000929638-18-000555.txt : 20180531 0000929638-18-000555.hdr.sgml : 20180531 20180531163649 ACCESSION NUMBER: 0000929638-18-000555 CONFORMED SUBMISSION TYPE: 10-D PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20180430 0001126530 0001541188 FILED AS OF DATE: 20180531 DATE AS OF CHANGE: 20180531 ABS ASSET CLASS: Auto leases FILER: COMPANY DATA: COMPANY CONFORMED NAME: BMW Vehicle Lease Trust 2016-1 CENTRAL INDEX KEY: 0001663274 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: 10-D SEC ACT: 1934 Act SEC FILE NUMBER: 333-205553-02 FILM NUMBER: 18872131 BUSINESS ADDRESS: STREET 1: 300 CHESTNUT RIDGE RD CITY: WOODCLIFF LAKE STATE: NJ ZIP: 07675 BUSINESS PHONE: 2013074000 MAIL ADDRESS: STREET 1: 300 CHESTNUT RIDGE RD CITY: WOODCLIFF LAKE STATE: NJ ZIP: 07675 10-D 1 form10d.htm ASSET-BACKED ISSUER DISTRIBUTION REPORT
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-D

ASSET-BACKED ISSUER
DISTRIBUTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
 THE SECURITIES EXCHANGE ACT OF 1934

For the monthly distribution period from April 1, 2018 to April 30, 2018
Commission File Number of issuing entity:  333-205553-02
Central Index Key Number of issuing entity:  0001663274

BMW VEHICLE LEASE TRUST 2016-1
(Exact name of issuing entity as specified in its charter)

Commission File Number of depositor:  333-205553
Central Index Key Number of depositor:  0001126530

BMW AUTO LEASING LLC
(Exact name of depositor as specified in its charter)

Central Index Key Number of sponsor (if applicable):  0001541188

BMW FINANCIAL SERVICES NA, LLC
(Exact name of sponsor as specified in its charter)
 
Mathew Morgenstern, (201) 307-4000
(Name and telephone number, including area code, of the person to contact in connection with this filing)

Delaware
 (State or other jurisdiction of incorporation or organization of the issuing entity)

22-2013053
(I.R.S. Employer Identification No.)

c/o BMW Financial Services NA, LLC
300 Chestnut Ridge Road
Woodcliff Lake, New Jersey
(Address of principal executive offices of the issuing entity)
 
 
07677
 (Zip Code)

201-307-4000
 (Telephone number including area code)

Not Applicable
 (Former name, former address, if changed since last report)

Registered/reporting pursuant to (check one)
               
Name of exchange
                 Title of class
  
Section 12(b)
  
Section 12(g)
  
Section 15(d)
  
(If Section 12(b))
Fixed Rate Class A-1 Notes
   ☐   ☐   ☒    
Fixed Rate Class A-2a Notes
   ☐   ☐   ☒    
Floating Rate Class A-2b Notes
   ☐   ☐   ☒    
Fixed Rate Class A-3 Notes
   ☐   ☐   ☒    
Fixed Rate Class A-4 Notes
   ☐   ☐   ☒    

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒  No ☐
 
PART I — DISTRIBUTION INFORMATION
 
Item 1.  Distribution and Pool Performance Information.
 
Distribution and pool performance information with respect to the assets of BMW Vehicle Lease Trust 2016-1 is set forth in the Statement relating to the May 21, 2018 distribution, which is attached as Exhibit 99.1.
 
There is no activity to report under Rule 15Ga-1(a) under the Securities Exchange Act of 1934 with respect to BMW Vehicle Lease Trust 2016-1 for the distribution period commencing on April 1, 2018 and ending on April 30, 2018.  BMW Financial Services NA, LLC (Central Index Key Number: 0001541188), as securitizer, most recently filed a Form ABS-15G on February 9, 2018 with respect to all asset-backed securities sponsored by it, including those securities issued by BMW Vehicle Lease Trust 2016-1.
 
PART II — OTHER INFORMATION
 
Item 2.  Legal Proceedings.
The following five paragraphs are disclosures received from Citibank, N.A. (“Citibank”), which serves as the indenture trustee, note registrar and paying agent under the indenture for the BMW Vehicle Lease Trust 2016-2 transaction.
In the ordinary course of business, Citibank is involved in a number of legal proceedings, including in connection with its role as trustee of certain residential mortgage backed securities (“RMBS”) transactions.  Certain of these Citibank as trustee-related matters are disclosed herein.
On June 18, 2014, a civil action was filed against Citibank in the Supreme Court of the State of New York by a group of investors in 48 private-label RMBS trusts for which Citibank allegedly serves or did serve as trustee, asserting claims for purported violations of the Trust Indenture Act of 1939 (the “Trust Indenture Act”), breach of contract, breach of fiduciary duty and negligence based on Citibank’s alleged failure to perform its duties as trustee for the 48 RMBS trusts.  On November 24, 2014, plaintiffs sought leave to withdraw this action.  On the same day, a smaller subset of similar plaintiff investors in 27 private-label RMBS trusts for which Citibank allegedly serves or did serve as trustee, filed a new civil action against Citibank in the United States District Court for the Southern District of New York asserting similar claims as the prior action filed in state court.  In January 2015, the court closed plaintiffs’ original state court action.  On September 8, 2015, the federal court dismissed all claims as to 24 of the 27 trusts and allowed certain of the claims to proceed as to the other three trusts.  Subsequently, plaintiffs voluntarily dismissed all claims with respect to two of the three trusts.  On April 7, 2017, Citibank filed a motion for summary judgment.  Plaintiffs filed its consolidated opposition brief and cross motion for partial summary judgment on May 22, 2017.  Briefing on those motions was completed on August 4, 2017.  On March 22, 2018, the court granted Citibank’s motion for summary judgment in its entirety, denied Plaintiffs’ motion for summary judgment and ordered the clerk to close the case.  On April 20, 2018, plaintiffs filed a notice of appeal.
On November 24, 2015, the same investors that brought the federal case brought a new civil action in the Supreme Court of the State of New York related to 25 private-label RMBS trusts for which Citibank allegedly serves or did serve as trustee.  This case includes the 24 trusts previously dismissed in the federal action, and one additional trust.  The investors assert claims for breach of contract, breach of fiduciary duty, breach of duty to avoid conflicts of interest, and violation of New York’s Streit Act (the “Streit Act”).  Following oral argument on Citibank’s motion to dismiss, Plaintiffs filed an amended complaint on August 5, 2016.  On June 27, 2017, the state court issued a decision, dismissing the Event of Default claims, mortgage-file-related claims, the fiduciary duty claims, and the conflict of interest claims.  The decision sustained certain breach of contract claims including the claim alleging discovery of breaches of representations and warranties, a claim related to robo signing, and the implied covenant of good faith claim.  Citibank appealed the lower court’s decision, and on January 16, 2018, the Appellate Division, First Department, dismissed the claims related to robo signing and the implied covenant of good faith, but allowed plaintiffs’ claim alleging discovery of breaches of representations and warranties to proceed.
On August 19, 2015, the Federal Deposit Insurance Corporation (“FDIC”) as Receiver for a failed financial institution filed a civil action against Citibank in the Southern District of New York.  This action relates to one private-label RMBS trust for which Citibank formerly served as trustee.  FDIC asserts claims for breach of contract, violation of the Streit Act, and violation of the Trust Indenture Act.  Citibank jointly briefed a motion to dismiss with The Bank of New York Mellon and U.S. Bank, N.A., entities that have also been sued by FDIC in their capacity as trustee, and these cases have all been consolidated in front of Judge Carter.  On September 30, 2016, the Court granted the motion to dismiss without prejudice for lack of subject matter jurisdiction.  On October 14, 2016, FDIC filed a motion for reargument or relief from judgment from the Court’s dismissal order.  On July 11, 2017, Judge Carter ruled on the motion for reconsideration regarding his dismissal of the action.  He denied reconsideration of his decision on standing, but granted leave to amend the complaint by October 9, 2017.  The FDIC subsequently requested an extension of time to file its amended complaint, which was granted.  The FDIC filed its amended complaint on December 8, 2017.  Defendants jointly filed a motion to dismiss the amended complaint on March 13, 2018.  On April 18, 2018, plaintiff filed its opposition.
There can be no assurances as to the outcome of litigation or the possible impact of litigation on the trustee or the RMBS trusts.  However, Citibank denies liability and continues to vigorously defend against these litigations.  Furthermore, it is Citibank’s belief that neither the above-disclosed litigations nor any other pending legal proceeding involving Citibank will materially affect Citibank’s ability to perform its duties as indenture trustee under the indenture for the BMW Vehicle Lease Trust 2016-2 transaction.
Item 10.  Exhibits.
 


SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
Dated:  May 31, 2018

BMW VEHICLE LEASE TRUST 2016-1
    (Issuing Entity)
 
By:  BMW Financial Services NA, LLC,
       solely as servicer
 
 
By:  /s/ Stefan Kramer                                      
       Name:    Stefan Kramer
       Title:         Vice President Finance & CFO
 
 
 
 
 
 
 
 EX-99.1 2 exhibit99-1.htm STATEMENT RELATING TO THE MAY 21, 2018 DISTRIBUTION exhibit99-1.htm
BMW Vehicle Lease Trust 2016-1
 
Collection Period Ending:
4/30/18
Previous Payment Date:
4/20/18
Current Payment Date:
5/21/18
Accrued Interest Days (30/360):  30
Accrued Interest Days (act/360):  31
 
Balances
                   
   
Initial
    
Beginning of Period
    
End of Period
  
Aggregate Securitization Value
   $
1,201,923,080.70
     $
376,776,387.22
     $
339,246,629.90
  
Aggregate Discounted ALG Residual Value
   $
754,508,558.93
     $
343,401,544.24
     $
313,505,887.25
  
Reserve Fund
   $
3,004,807.70
     $
3,004,807.70
     $
3,004,807.70
  
                         
Notes
                        
Class A-1 Notes
   $
183,000,000.00
      
-
      
-
  
Class A-2a Notes
   $
200,000,000.00
      
-
    
-
  
Class A-2b Notes
   $
200,000,000.00
      
-
    
-
  
Class A-3 Notes
   $
337,000,000.00
     $
81,031,194.23
     $
43,904,337.12
  
Class A-4 Notes
   $
80,000,000.00
     $
80,000,000.00
     $
80,000,000.00
    $
1,000,000,000.00
     $
161,031,194.23
     $
123,904,337.12
  
                         
Overcollateralization
   $
201,923,080.70
             $
215,342,292.78
  
 
Current Collection Period
               
Beginning Securitization Value
   $
376,776,387.22
          
Principal Reduction Amount
    
37,529,757.32
          
Ending Securitization Value
   $
339,246,629.90
          
                 
First Priority Principal
                
Aggregate Outstanding Note Balance (Beginning of Period)
   $
161,031,194.23
          
Aggregate Securitization Value (End of Period)
   $
339,246,629.90
          
First Priority Principal Distribution Amount
     -          
                 
Target Note Balance
   $
123,501,436.91
          
Target Overcollateralization Amount
   $
215,745,192.99
          
Target Overcollateralization Percentage
    
17.95
 %        
                 
                 
Determination of Available Funds
                
Collections
                
                 
Monthly Payments (net of Daily Advance Reimbursements)*
   $
7,385,797.13
          
Reallocation Payment
    
-
          
Sale Proceeds
    
8,558,888.40
        
Termination Proceeds
    
21,646,362.72
          
Recovery Proceeds
    
20,107.41
          
Total Collections
   $
37,611,155.66
          
                 
Advances
                
Monthly Payment Advance
   $
643,041.09
          
Sales Proceeds Advance
     -          
Total Advances
   $
643,041.09
          
Optional Purchase Price
     0.00          
Net Investment Earnings on SUBI Collection Account
     -          
Total Available Funds
   $
38,254,196.75
          
 
Collection Account
             
Total Available Funds
   $
38,254,196.75
        
Withdrawals from SUBI Collection Account
              
Payment Date Advance Reimbursement
    
622,207.82
        
Servicing Fees
    
313,980.32
        
Note Distribution Account (Interest Due)
    
191,151.50
        
Note Distribution Account (First Priority Principal Distribution Amount)
     -        
Reserve Fund Deposit
      -          
Note Distribution Account (Regular Principal Distribution Amount)
    
37,126,857.11
          
                        Amounts paid to Indenture Trustee, Owner Trustee and Asset Representations Reviewer (subject to annual cap)
    
-
          
Amounts paid to Indenture Trustee, Owner Trustee and Asset Representations Reviewer (not subject to annual cap)
     -          
Certificate Distribution Account (any remaining payments)
    
-
          
Total Distributions from SUBI Collection Account
   $
38,254,196.75
          
 
Servicer Advance Amounts
               
Beginning Period Unreimbursed Servicer Advance
   $
867,275.97
          
Current Period Monthly Payment Advance
    
643,041.09
          
Current Period Sales Proceeds Advance
     -          
Current Reimbursement of Previous Servicer Advance
    
622,207.82
          
Ending Period Unreimbursed Previous Servicer Advances
   $
888,109.24
          
 
Note Distribution Account
      
               
Amount Deposited from the Collection Account
   $
37,318,008.61
          
Amount Deposited from the Reserve Fund
     -          
Amount Paid to Noteholders
   $
37,318,008.61
          
 
Payments to Indenture Trustee, Owner Trustee and Asset Representations Reviewer
      
               
     Indenture Trustee                
Amount due and payable to Indenture Trustee before giving effect to payments on current Payment Date:
  
-
          
Amount due and payable to Indenture Trustee after giving effect to payments on current Payment Date:
    
-
          
                 
      Owner Trustee
                
            Amount due and payable to Owner Trustee before giving effect to payments on current Payment Date:   -          
                Amount due and payable to Owner Trustee after giving effect to payments on current Payment Date:     -          
                 
      Asset Representations Reviewer Trustee                
            Amount due and payable to Asset Representations Reviewer before giving effect to payments on current Payment Date:  
-
          
            Amount due and payable to Asset Representations Reviewer after giving effect to payments on current Payment Date:
     -          
 
Distributions
                                     
Priority Principal
                                    
Aggregate Outstanding Note Principal
   $
161,031,194.23
                                
                                       
Monthly Principal Distributable Amount
  
First Priority Principal
    
Current Payment
    
Total Payment
    
Ending Balance
    
Per $1,000
    
Note Factor
  
                                       
Class A-1 Notes
     -      
-
      
-
      
-
      
-
      
-
  
Class A-2a Notes
     -      
-
      
-
    
-
      
-
      
-
  
Class A-2b Notes
     -      
-
    
-
    
-
       -      
-
  
Class A-3 Notes
     -     $
37,126,857.11
     $
37,126,857.11
     $
43,904,337.12
      
110
       0.13  
Class A-4 Notes
     -       -       -     $
80,000,000.00
       -       1.00  
      -     $
37,126,857.11
     $
37,126,857.11
     $
123,904,337.12
                  
                                                 
                                                 
Interest Distributable Amount
        
Interest Rate
    
Current Payment
      
Per $1,000
                  
                                                 
Class A-1 Notes
            
0.63000
 %    
-
      
0.00
                  
Class A-2a Notes
            
1.17000
 %    
-
      
0.00
                  
Class A-2b Notes
            
0.00000
 %    
-
      
0.00
                  
Class A-3 Notes
            
1.34000
 %   $
90,484.83
      
0.27
                  
Class A-4 Notes
            
1.51000
 %   $
100,666.67
      
1.26
                  
             
 
     $
191,151.50
                          
 
Carryover Shortfalls
                   
   
Prior Period Carryover
    
Current Payment
    
Current Period Carryover
  
                   
Class A-1 Interest Carryover Shortfall
     -       -       -  
Class A-2a Interest Carryover Shortfall
     -       -       -  
Class A-2b Interest Carryover Shortfall
     -       -       -  
Class A-3 Interest Carryover Shortfall
     -       -       -  
Class A-4 Interest Carryover Shortfall
     -       -       -  
 
Reserve Fund
               
Beginning Period Required Amount
   $
3,004,807.70
          
Beginning Period Amount
    
3,004,807.70
          
Current Period Deposit
     -          
Net Investment Earnings
    
1,601.63
          
Reserve Fund Draw Amount
     -          
Release to Certificateholder
    
1,601.63
          
Ending Period Required Amount
    
3,004,807.70
          
Ending Period Amount
   $
3,004,807.70
          
 
Pool Characteristics
                         
   
Initial
    
End of Period
              
Number of Specified Leases
    
32,198
      
11,328
              
Weighted Average Remaining Term
    
25.00
      
4.73
              
Weighted Average Original Term
    
36.00
      
35.98
              
Weighted Average Seasoning
    
11.00
      
31.26
              
                             
   
Units
    
Securitization Value
              
                             
Early Terminations
    
96
     $
2,297,039.72
              
Scheduled Terminations
    
1,070
     $
29,505,831.14
              
                             
Residual Value Losses for the Current Period
  
Beginning
    
Current Period
    
Cumulative
          
Sales and Termination Proceeds
   $
504,742,666.84
     $
29,941,682.99
     $
534,684,349.83
          
ALG Residual Values
    
498,001,429.21
      
31,411,410.75
    
529,412,839.96
          
Residual Value Loss / (Gain)
    
 
   $
1,469,727.76
   $
(5,271,509.87
 )         
                                 
Cumulative Residual Value Loss / (Gain) as of the end of the prior period
     $
(6,741,237.63
 )        
Cumulative Residual Value Loss / (Gain) as of the end of the 2nd preceding period
     $
(7,775,452.22
 )        
Cumulative Residual Value Loss / (Gain) as of the end of the 3rd preceding period
     $
(8,005,143.60
 )        
                                 
Delinquencies as of the end of the current period
  
Units
    
Securitization Value
    
Percentage
          
31-60 Days Delinquent
    
64
      
1,893,199.97
      
0.56
 %        
61-90 Days Delinquent
    
22
      
614,763.46
      
0.18
 %        
91-120 Days Delinquent
     9      
259,989.93
      
0.08
 %        
121 - 150 Days Delinquent
     4      
102,582.77
      
0.03
 %        
151 Days or More Delinquent
     2      
47,938.06
      
0.01
 %        
                                 
Total 30+ Days Past Due as of the end of the current period
     101     $
2,918,474.19
      
0.86
 %        
                        Total 60+ Days Past Due as of the end of the current period     37     $
1,025,274.22
      
0.30
 %         
                                 
Delinquencies as of the end of prior periods
                                
Total 30+ Days Past Due as of the end of the prior period
      
0.75
 %        
Total 30+ Days Past Due as of the end of the 2nd preceding period
      
0.76
 %        
Total 30+ Days Past Due as of the end of the 3rd preceding period
        
0.82
 %        
                                 
Credit Losses as of the end of the current period
    
Units
      
Dollar Amount
                  
Gross Credit Losses
     9      
58,303.29
                  
Recoveries
     8      
5,174.11
                  
                                 
Net Credit Losses
            
53,129.18
                
Cumulative Net Credit Losses
     200     $
1,014,439.71
                
Ratio of Cumulative Net Credit Losses to Aggregate Securitization Value **
            
0.28
 %                
Charge Off Rate ***
            
0.08
 %                
                                 
Average of Net Credit Losses ****
           $
5,072.20
                  
                                 
                                 
Historical Loss Information                                
Credit Losses as of the end of the prior period
    
Units
      
Dollar Amount
                  
Gross Credit Losses
     11      
85,427.93
                  
Recoveries
     10      
9,018.15
                  
Net Credit Losses
            
76,409.78
                  
Cumulative Net Credit Losses
     191     $
961,310.53
                  
Ratio of Cumulative Net Credit Losses to Aggregate Securitization Value **
            
0.24
 %                
Charge Off Rate ***
            
0.08
 %                
Average of Net Credit Losses ****
            
5,033.04
                  
                                 
Credit Losses as of the end of the 2nd preceding period
    
Units
      
Dollar Amount
                  
Gross Credit Losses
     5      
26,687.03
                  
Recoveries
     8      
19,481.08
                  
Net Credit Losses
            
7,205.95
                  
Cumulative Net Credit Losses
     180     $
884,900.75
                  
Ratio of Cumulative Net Credit Losses to Aggregate Securitization Value **
            
0.21
 %                
Charge Off Rate ***
            
0.07
 %                
Average of Net Credit Losses ****
            
4,916.12
                  
                                 
Credit Losses as of the end of the 3rd preceding period
    
Units
      
Dollar Amount
                  
Gross Credit Losses
     6      
47,077.47
                  
Recoveries
     11      
11,169.81
                  
Net Credit Losses
            
35,907.66
                
Cumulative Net Credit Losses
     175     $
877,694.80
                  
Ratio of Cumulative Net Credit Losses to Aggregate Securitization Value **
            
0.19
 %                
Charge Off Rate ***
            
0.07
 %                
Average of Net Credit Losses ****
            
5,015.40
                  
 
* Includes Pull Ahead amounts
** Ratio of Cumulative Net Credit Losses to Aggregate Securitization Value is calculated by dividing the Cumulative Net Credit Losses by the Avg Aggregate Sec Value for the period.
Avg Aggregate Sec Value for a period is equal to the average of the Beginning Securitization Value and the Ending Securitization Value for such period.
*** Charge Off Rate is calculated by dividing Cumulative Net Credit Losses by Initial Aggregate Securitization Value as of the Cut-off date.
**** Average of Net Credit Losses is calculated by dividing Cumulative Net Credit Losses by the aggregate number of Leases that have experienced a net credit loss.