2. A lockout shifts to a support bond principal payments that otherwise might be used in a PAC schedule. The effect of a lockout is to push forward the beginning of the first PAC window to a specified date and to stabilize the support bond. Lockouts are normally applied to the first PAC for a period of 2 or 3 years, lending stability to the earliest support bond class.
3. Generic current coupon collateral is assumed.
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