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  "documentTitle": "Sunrun Inc. (RUN)",
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  "authorName": "Carson C. Block",
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  "notes": "The slide discusses the mechanics of Partnership Flips, Warehouse Lines, and ABS, as well as the role of Tax Equity Investors.",
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      "text": "It is possible that RUN intends its financings to transfer this obligation to ABS investors or, failing recoverability there, the unsuspecting homeowner.",
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      "text": "Key Financing Transactions: Partnership Flip, Asset-Backed Warehouse Line, Asset-Backed Securitization (ABS)",
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      "text": "Key Financing Partners: Tax Equity Investor - A Tax Equity Investor purchases a partnership interest that is entitled to the ITC, depreciation and certain negotiated cashflows thereby providing cash RUN needs to fund its operations.",
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      "text": "obligations include the expense of removing the PV system, which we estimate to be $1,700 (undiscounted) per system. It is possible that RUN intends its financings to transfer this obligation to ABS investors or, failing recoverability there, the unsuspecting homeowner.",
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      "text": "If RUN declares bankruptcy, there could be a larger liability for the ABS holders comprising servicing costs of the rooftop systems as well as removal.46",
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      "text": "The Sponsor Equity that RUN pledges to secure a warehouse line is ultimately refinanced into an ABS. The ABS is designed to pay the bondholders until they are paid off, by which time we believe that the vast majority of customer value will have been distributed. The ABS investors receive the cashflows from the underlying PPAs or leases, leaving the homeowner with no recourse if cashflows do not the cover removal costs.",
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      "text": "46 KBRA Rating Report for RUN Xanadu Issuer 2019-1, LLC, p. 13",
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      "text": "Key Players in RUN's Financing Model and their Economic Interests",
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