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my travel website: Vacation-Times.org.
"A vacation is what you take when you can no longer take what you’ve been taking."
~Earl Wilson -
It looks like Marriott bought its own paper - affiliates bought Vacation Club paper. -
I didn't see that anywhere... Are you referring to the phrase, "The notes were sold without recourse to Marriott or its affiliates."...
If so, that simply means that Marriott sold the loans without having to promise to pay for a portion of them if the individual borrowers default. This differs from the way other developers have been inking deals lately, which have often been "sold with recourse" or sold with the guaranteed backing of the developer.my travel website: Vacation-Times.org.
"A vacation is what you take when you can no longer take what you’ve been taking."
~Earl WilsonComment
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Disregard my last post! Sorry for questioning..
Somerville is right on target that Marriott simply sold itself paper and moved money from one pocket to another.. Perhaps an accountant can explain why?
I just found this which gives more info that the original press release... Marriott International, Inc. - On October 21, 2009, Marriott...
.........On October 21, 2009, Marriott International, Inc. (together with its subsidiaries, the "Company") sold a pool of approximately $380 million in timeshare mortgage loans (the "Mortgage Loans") to Marriott Vacation Club Owner Trust 2009-2 (the "2009-2 Trust"). Simultaneous with the sale of the timeshare mortgage loans to the 2009-2 Trust, investors purchased $317 million in 4.809% Timeshare Loan Backed Notes (the "Notes") from the 2009-2 Trust in a private placement........
I guess "trick or treat" came a little early this year!my travel website: Vacation-Times.org.
"A vacation is what you take when you can no longer take what you’ve been taking."
~Earl WilsonComment
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It appears that Marriott set-up a REIT (Real Estate Investment Trust) to hold the timeshare loans.
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