Another common credit enhancement found in many securitization is having a side pocket of cash held in a bank account for the benefit of investors who have purchased the debt instrument to cover any underperformance from the distinct asset pool. Following with our example, if the $1,000,000 principal value of the debt instrument also had the benefit of a $100,000 cash reserve, then that would provide additional cushion to service interest and principal payments on the debt instrument. This would equate to a 10% cash reserve. The cash reserve is generally funded by the proceeds of the debt instrument itself. In this example, if the $1,000,000 debt instrument was issued on January 31, 2022, $900,000 of proceeds less transaction expenses would be wired to the originator and/or its SPV and $100,000 would be withheld in account not accessible by the originator and/or its SPV.