The term "specificallyborrowed fund" refers to a fund which is borrowed specifically for the acquisition, construction orproduction activities for preparing an asseteligible for capitalization.
The facility may be expanded over time and eligibleasset classes may be expanded later to include other assets, such as commercial mortgage-backed securities, non-agency residential mortgage-backed securities or other asset classes.
For commercial loans, companies that are not bank eligible often turn to asset-backed lenders, pledging inventories and accounts receivable or leasing equipment rather than purchasing it.
Since 2009 Yorkville Advisors has been an eligible borrower under the Term Asset-Backed Loan Program, or TALF, created by the Federal Reserve to support the consumer loan market.