Answer: Amortizing collateral

## Explanation Credit card receivable ABS have specific structural features that differ from other types of ABS: **A. A lockout period** - This IS a feature of credit card ABS. During the lockout period, only interest payments are made to investors, and principal payments are used to purchase new receivables or held in a trust account. **B. Amortizing collateral** - This is LEAST LIKELY a feature of credit card ABS. Credit card receivables are revolving in nature, meaning they don't have a fixed amortization schedule like auto loans or mortgages. The principal is typically repaid through a controlled amortization or bullet payment structure rather than through amortizing collateral. **C. An early amortization provision** - This IS a feature of credit card ABS. These provisions are triggered by specific events (like poor portfolio performance or issuer insolvency) and cause the security to begin repaying principal earlier than scheduled. **Key Differences:** - **Credit card ABS**: Revolving period, controlled amortization, bullet payments - **Auto loan/Mortgage ABS**: Amortizing collateral with scheduled principal payments The correct answer is B because amortizing collateral is characteristic of auto loan or mortgage ABS, not credit card ABS.

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