Citibank Credit Card Master Trust I (CCIMT) was launched in May 1991, and issued in the public markets from May 1991 through December 1999. In September 2000, Citibank Credit Card Issuance Trust (CCCIT) became the current issuance vehicle out of the Master Trust, built to incorporate several structural features described below. CCIMT owns the receivables supporting both CCIMT and CCCIT issuance.
CCIMT's securitizations are backed by credit card receivables originated and serviced by Citibank (South Dakota), N.A. (rated Moody's Aa1/ S&P AA/ Fitch AA). Both Citibank (South Dakota) and Citibank (Nevada) were sellers of receivables to the Master Trust prior to the merger of Citibank (Nevada) into Citibank (South Dakota) on October 1, 2006. As a result of that merger, Citibank (South Dakota) is now the sole seller of receivables to the Master Trust. Citibank (South Dakota) is also the Servicer of the Master Trust. The eligibility criteria for the receivables that can be sold to the Master Trust include the following: the receivables must be from accounts owned by Citibank (South Dakota) or an affiliate; the cardholders must not have been in a voluntary or involuntary bankruptcy proceeding; the receivables must be denominated in U.S. dollars.
CCCIT securities are issued in the form of notes, governed by New York law. CCCIT currently issues three classes of securities: Class A (rated Aaa/AAA/AAA), Class B (rated A2/A/A), and Class C (rated Baa2/BBB/BBB). Classes B and C are subordinated to Class A and are part of the credit enhancement structure. The issuance of CCCIT Class B and C securities is independent of the issuance of Class A securities, however, Class A and Class B securities cannot be issued if the required enhancement for that Class (Class B & C for A; Class C for B) is insufficient.
CCIMT securities were issued in the form of trust certificates, governed by New York law. CCIMT issued two classes of securities: Class A (rated Aaa/AAA/AAA), and Class B (currently rated A1/A/A+; originally rated A2/A/A+). Further credit enhancement is provided in the form of a cash collateral account or a letter of credit.
Following are the salient features common to both CCCIT and CCIMT securities (please see the applicable Prospectus for a full description of the securities' mechanics):
Issued classes (in the case of CCCIT) or series (CCIMT) are grouped together for the allocation of finance charge receivable cash flows. Thus, there is a single set of monthly cash flows that generates excess spread for each Group, rather than for individual securities. This is commonly referred to as a "socialized" trust structure. Please refer to the applicable Prospectus for the allocation order of finance charge receivables.
On an ongoing (monthly) basis, the Master Trust purchases credit card receivables to ensure that the face amount of securities remains outstanding until maturity, even though cardholders may pay any amount from the minimum up to the full amount owed.
Principal cash flows are shared across the two Groups. If any one Class (CCCIT) or Series (CCIMT) is set to repay principal but its pro-rata share of principal cash flows (from the underlying credit card receivables) is insufficient, that Class or Series can utilize principal from all other Classes and Series that are not likewise needed to repay principal.
Credit enhancement, along with excess spread and an early amortization feature, support the ratings of each class of security. The credit enhancement levels (for CCCIT, as a percentage of Class A Securities: Class B: 5.98291%, Class C: 7.97721%) are established by the rating agencies Moody's, Standard and Poor's, and Fitch.
Deutsche Bank Trust Company is the trustee for CCIMT and is the indenture trustee for CCCIT. Its principal corporate trust office is located at 60 Wall Street, Attention: Corporate Trust & Agency Services - Structured Finance Services, New York, New York 10005.
CCCIT Dakota Private Placement Program
CCCIT accesses the commercial paper market through privately placed Class 2001-A3 notes, a program known as "Dakota". Dakota notes can have an expected final payment date ranging from 1 to 124 days from date of issuance, however, the weighted average of these expected final payment dates cannot exceed 60 days. The legal final maturity date of each Dakota note is 390 calendar days from the date of issuance. Credit enhancement for Dakota notes is provided by Class C notes in an amount equal to 6.95187% of the outstanding Dakota notes. As of March 31, 2008, $9.0 billion of Dakota notes were outstanding.
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