securitization and warehouse credit facilities throughout the periods for which information is presented in this report , we have purchased automobile contracts with the intention of financing them on a long-term basis through securitizations , and on an interim basis through warehouse credit facilities . all such financings have involved identification of specific automobile contracts , sale of those automobile contracts ( and associated rights ) to one of our special-purpose subsidiaries , and issuance of asset-backed securities to fund the transactions . depending on the structure , these transactions may be accounted for under generally accepted accounting principles as sales of the automobile contracts or as secured financings . when structured to be treated as a secured financing for accounting purposes , the subsidiary is consolidated with us . accordingly , the sold automobile contracts and the related debt appear as assets and liabilities , respectively , on our consolidated balance sheet . we then periodically : ( i ) recognize interest and fee income on the contracts , ( ii ) recognize interest expense on the securities issued in the transaction , and ( iii ) record as expense a provision for credit losses on the contracts . from july 2003 through april 2008 , all of our securitizations were structured in this manner . in september 2008 , we securitized automobile contracts in a transaction that was in substance a sale , that was treated as a sale for accounting purposes , and in which we retained a residual interest in the automobile contracts . the remaining receivables from that september 2008 securitization were re-securitized in september 2010 in a structure that maintained sale treatment for accounting purposes . during 2011 , we completed three securitizations of approximately $ 335.6 million in newly originated contracts . these securitizations were were all structured as secured financings and represented our first securitizations of new contracts since 2008 . 31 when structured to be treated as a sale for accounting purposes , the assets and liabilities of the special-purpose subsidiary are not consolidated with us . accordingly , the transaction removes the sold automobile contracts from our consolidated balance sheet , the related debt does not appear as our debt , and our consolidated balance sheet shows , as an asset , a retained residual interest in the sold automobile contracts . the residual interest represents the discounted value of what we expect will be the excess of future collections on the automobile contracts over principal and interest due on the asset-backed securities . that residual interest appears on our consolidated balance sheet as `` residual interest in securitizations , `` and the determination of its value is dependent on our estimates of the future performance of the sold automobile contracts . of our managed portfolio outstanding at december 31 , 2011 , only our september 2010 securitization was structured to be treated as a sale for accounting purposes . credit risk retained whether a sale of automobile contracts in connection with a securitization or warehouse credit facility is treated as a secured financing or as a sale for financial accounting purposes , the related special-purpose subsidiary may be unable to release excess cash to us if the credit performance of the related automobile contracts falls short of pre-determined standards . such releases represent a material portion of the cash that we use to fund our operations . an unexpected deterioration in the performance of such automobile contracts could therefore have a material adverse effect on both our liquidity and our results of operations , regardless of whether such automobile contracts are treated for financial accounting purposes as having been sold or as having been financed . for estimation of the magnitude of such risk , it may be appropriate to look to the size of our `` managed portfolio , `` which represents both financed and sold automobile contracts as to which such credit risk is retained . our managed portfolio as of december 31 , 2011 was approximately $ 794.6 million , which includes a third party servicing portfolio of $ 33.5 million on which we earn only servicing fees and have no credit risk . critical accounting policies we believe that our accounting policies related to ( a ) allowance for finance credit losses , ( b ) amortization of deferred originations costs and acquisition fees , ( c ) term securitizations , ( d ) finance receivables and related debt measured at fair value and ( e ) income taxes are the most critical to understanding and evaluating our reported financial results . such policies are described below . allowance for finance credit losses in order to estimate an appropriate allowance for losses to be incurred on finance receivables , we use a loss allowance methodology commonly referred to as `` static pooling , `` which stratifies our finance receivable portfolio into separately identified pools based on the period of origination . using analytical and formula driven techniques , we estimate an allowance for finance credit losses , which we believe is adequate for probable credit losses that can be reasonably estimated in our portfolio of automobile contracts . for each monthly pool of contracts that we purchase , we begin establishing the allowance in the month of acquisition and increase it over the subsequent eleven months , through a provision for losses charged to our consolidated statement of operations . net losses incurred on finance receivables are charged to the allowance . we evaluate the adequacy of the allowance by examining current delinquencies , the characteristics of the portfolio , prospective liquidation values of the underlying collateral and general economic and market conditions . as circumstances change , our level of provisioning and or allowance may change as well . story_separator_special_tag as a result of recent net losses , we are in a three-year cumulative pretax loss position at december 31 , 2011. a cumulative loss position is considered significant negative evidence in assessing the realizability of a deferred tax asset . in determining the possible future realization of deferred tax assets , we have considered future taxable income from the following sources : ( a ) reversal of taxable temporary differences ; and ( b ) tax planning strategies available to us in accordance with ( asc 740 , “ income taxes ” ) that , if necessary , would be implemented to accelerate taxable income into years in which net operating losses might otherwise expire . our tax planning strategies include the prospective sale of certain assets such as finance receivables , residual interests in securitized finance receivables , charged off receivables and base servicing rights . the expected proceeds for such asset sales have been estimated based on our expectation of what buyers of the assets would consider to be reasonable assumptions for net cash flows and required rates of return for each of the various asset types . our estimates for net cash flows and required rates of return are subjective and inherently subject to future events which may significantly impact actual net proceeds we may receive from executing our tax planning strategies . nevertheless , we believe such asset sales can produce significant taxable income within the relevant carryforward period . such strategies could be implemented without significant impact on our core business or our ability to generate future growth . the costs related to the implementation of these tax strategies were considered in evaluating the amount of taxable income that could be generated in order to realize our deferred tax assets . 35 based upon the tax planning opportunities and other factors discussed below , we have concluded that the u.s. and state net operating loss carryforward periods provide enough time to utilize the deferred tax assets pertaining to the existing net operating loss carryforwards and any net operating loss that would be created by the reversal of the future net deductions which have not yet been taken on a tax return . although our core business has produced strong earnings in the past , even with intermittent loss periods resulting from economic cycles not unlike , although not as severe as , the current economic downturn , we have not used expected future taxable income in our evaluation of the value of our net deferred tax asset . we have taken steps to reduce our cost structure and have adjusted the contract interest rates and purchase prices applicable to our purchases of automobile contracts from dealers . we have been able to increase our acquisition fees and reduce our purchase prices because of lessened competition for our services . our estimates of taxable income that may be derived from the implementation of our tax planning strategies are forward-looking statements , and there can be no assurance that our estimates of such taxable income will be correct . factors discussed under `` risk factors , `` and in particular under the subheading `` risk factors forward-looking statements `` may affect whether such projections prove to be correct . we recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statement of operations . accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet . uncertainty of capital markets and general economic conditions we depend upon the availability of warehouse credit facilities and access to long-term financing through the issuance of asset-backed securities collateralized by our automobile contracts . since 1994 , we have completed 53 term securitizations of approximately $ 7.1 billion in contracts . we conducted four term securitizations in 2006 , four in 2007 , two 2008 , one in 2010 and three in 2011. from july 2003 through april 2008 all of our securitizations were structured as secured financings . the second of our two securitization transactions in 2008 ( completed in september 2008 ) and our securitization in september 2010 ( a re-securitization of the remaining receivables from the september 2008 transaction ) were each in substance a sale of the related contracts , and have been treated as sales for financial accounting purposes . during 2011 , we completed three securitizations of approximately $ 335.6 million in newly originated contracts . these securitizations were were all structured as secured financings and represented our first securitizations of new contracts since 2008. from the fourth quarter of 2007 through the end of 2009 , we observed unprecedented adverse changes in the market for securitized pools of automobile contracts . these changes included reduced liquidity , and reduced demand for asset-backed securities , particularly for securities carrying a financial guaranty and for securities backed by sub-prime automobile receivables . moreover , many of the firms that previously provided financial guarantees , which were an integral part of our securitizations , suspended offering such guarantees . the adverse changes that took place in the market from the fourth quarter of 2007 through the end of 2009 caused us to conserve liquidity by significantly reducing our purchases of automobile contracts . however , since october 2009 , we have gradually increased our contract purchases by utilizing one $ 50 million revolving credit facility that we established in september 2009 and another $ 50 million term funding facility that we established in march 2010. in september 2010 we took advantage of improvement in the market for asset-backed securities by re-securitizing the remaining underlying receivables from our unrated september 2008 securitization . by doing so we were able to pay off the bonds associated with the september 2008 transaction and issue rated bonds with a significantly lower weighted average coupon . the september 2010 transaction was our first rated term securitization since 1993 that did not utilize a financial guaranty .

securitization trust debt . from july 2003 through april 2008 , we have , for financial accounting purposes , treated securitizations of automobile contracts as secured financings , and the asset-backed securities issued in such securitizations remain on our balance sheet as securitization trust debt . our september 2008 and the re-securitization of the remaining receivables from such transaction in september 2010 , were each structured as a sale for financial accounting purposes and the asset-backed securities issued in those transactions have not been and are not on our balance sheet . our three 2011 securitizations were all treated as secured financings . senior secured debt . from 1998 to 2005 , we entered into a series of financing transactions with levine leichtman capital partners ii , l.p. in july 2007 we repaid the final amounts due under these financing transactions . on june 30 , 2008 , we entered into a series of agreements pursuant to which a different but related lender levine leichtman capital partners iv , l.p. , purchased a $ 10 million five-year , fixed rate , senior secured note from us . the indebtedness is secured by substantially all of our assets , though not by the assets of our special-purpose financing subsidiaries . in july 2008 , in conjunction with the amendment of the combination term and revolving residual credit facility as discussed above , the lender purchased an additional $ 15 million note with substantially the same terms as the $ 10 million note . pursuant to the june 30 , 2008 securities purchase agreement , we issued to the lender 1,225,000 shares of common stock . in addition , we issued the lender two warrants : ( i ) warrants that we refer to as the fmv warrants , which are exercisable for 1,611,114 shares of our common stock , at an exercise price of $ 1.39818 per share , and ( ii ) warrants that we refer to as the n warrants , which are exercisable for 285,781 shares of our common stock , at a nominal exercise price .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```securitization trust debt . from july 2003 through april 2008 , we have , for financial accounting purposes , treated securitizations of automobile contracts as secured financings , and the asset-backed securities issued in such securitizations remain on our balance sheet as securitization trust debt . our september 2008 and the re-securitization of the remaining receivables from such transaction in september 2010 , were each structured as a sale for financial accounting purposes and the asset-backed securities issued in those transactions have not been and are not on our balance sheet . our three 2011 securitizations were all treated as secured financings . senior secured debt . from 1998 to 2005 , we entered into a series of financing transactions with levine leichtman capital partners ii , l.p. in july 2007 we repaid the final amounts due under these financing transactions . on june 30 , 2008 , we entered into a series of agreements pursuant to which a different but related lender levine leichtman capital partners iv , l.p. , purchased a $ 10 million five-year , fixed rate , senior secured note from us . the indebtedness is secured by substantially all of our assets , though not by the assets of our special-purpose financing subsidiaries . in july 2008 , in conjunction with the amendment of the combination term and revolving residual credit facility as discussed above , the lender purchased an additional $ 15 million note with substantially the same terms as the $ 10 million note . pursuant to the june 30 , 2008 securities purchase agreement , we issued to the lender 1,225,000 shares of common stock . in addition , we issued the lender two warrants : ( i ) warrants that we refer to as the fmv warrants , which are exercisable for 1,611,114 shares of our common stock , at an exercise price of $ 1.39818 per share , and ( ii ) warrants that we refer to as the n warrants , which are exercisable for 285,781 shares of our common stock , at a nominal exercise price .
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 Suspicious Activity Report : securitization and warehouse credit facilities throughout the periods for which information is presented in this report , we have purchased automobile contracts with the intention of financing them on a long-term basis through securitizations , and on an interim basis through warehouse credit facilities . all such financings have involved identification of specific automobile contracts , sale of those automobile contracts ( and associated rights ) to one of our special-purpose subsidiaries , and issuance of asset-backed securities to fund the transactions . depending on the structure , these transactions may be accounted for under generally accepted accounting principles as sales of the automobile contracts or as secured financings . when structured to be treated as a secured financing for accounting purposes , the subsidiary is consolidated with us . accordingly , the sold automobile contracts and the related debt appear as assets and liabilities , respectively , on our consolidated balance sheet . we then periodically : ( i ) recognize interest and fee income on the contracts , ( ii ) recognize interest expense on the securities issued in the transaction , and ( iii ) record as expense a provision for credit losses on the contracts . from july 2003 through april 2008 , all of our securitizations were structured in this manner . in september 2008 , we securitized automobile contracts in a transaction that was in substance a sale , that was treated as a sale for accounting purposes , and in which we retained a residual interest in the automobile contracts . the remaining receivables from that september 2008 securitization were re-securitized in september 2010 in a structure that maintained sale treatment for accounting purposes . during 2011 , we completed three securitizations of approximately $ 335.6 million in newly originated contracts . these securitizations were were all structured as secured financings and represented our first securitizations of new contracts since 2008 . 31 when structured to be treated as a sale for accounting purposes , the assets and liabilities of the special-purpose subsidiary are not consolidated with us . accordingly , the transaction removes the sold automobile contracts from our consolidated balance sheet , the related debt does not appear as our debt , and our consolidated balance sheet shows , as an asset , a retained residual interest in the sold automobile contracts . the residual interest represents the discounted value of what we expect will be the excess of future collections on the automobile contracts over principal and interest due on the asset-backed securities . that residual interest appears on our consolidated balance sheet as `` residual interest in securitizations , `` and the determination of its value is dependent on our estimates of the future performance of the sold automobile contracts . of our managed portfolio outstanding at december 31 , 2011 , only our september 2010 securitization was structured to be treated as a sale for accounting purposes . credit risk retained whether a sale of automobile contracts in connection with a securitization or warehouse credit facility is treated as a secured financing or as a sale for financial accounting purposes , the related special-purpose subsidiary may be unable to release excess cash to us if the credit performance of the related automobile contracts falls short of pre-determined standards . such releases represent a material portion of the cash that we use to fund our operations . an unexpected deterioration in the performance of such automobile contracts could therefore have a material adverse effect on both our liquidity and our results of operations , regardless of whether such automobile contracts are treated for financial accounting purposes as having been sold or as having been financed . for estimation of the magnitude of such risk , it may be appropriate to look to the size of our `` managed portfolio , `` which represents both financed and sold automobile contracts as to which such credit risk is retained . our managed portfolio as of december 31 , 2011 was approximately $ 794.6 million , which includes a third party servicing portfolio of $ 33.5 million on which we earn only servicing fees and have no credit risk . critical accounting policies we believe that our accounting policies related to ( a ) allowance for finance credit losses , ( b ) amortization of deferred originations costs and acquisition fees , ( c ) term securitizations , ( d ) finance receivables and related debt measured at fair value and ( e ) income taxes are the most critical to understanding and evaluating our reported financial results . such policies are described below . allowance for finance credit losses in order to estimate an appropriate allowance for losses to be incurred on finance receivables , we use a loss allowance methodology commonly referred to as `` static pooling , `` which stratifies our finance receivable portfolio into separately identified pools based on the period of origination . using analytical and formula driven techniques , we estimate an allowance for finance credit losses , which we believe is adequate for probable credit losses that can be reasonably estimated in our portfolio of automobile contracts . for each monthly pool of contracts that we purchase , we begin establishing the allowance in the month of acquisition and increase it over the subsequent eleven months , through a provision for losses charged to our consolidated statement of operations . net losses incurred on finance receivables are charged to the allowance . we evaluate the adequacy of the allowance by examining current delinquencies , the characteristics of the portfolio , prospective liquidation values of the underlying collateral and general economic and market conditions . as circumstances change , our level of provisioning and or allowance may change as well . story_separator_special_tag as a result of recent net losses , we are in a three-year cumulative pretax loss position at december 31 , 2011. a cumulative loss position is considered significant negative evidence in assessing the realizability of a deferred tax asset . in determining the possible future realization of deferred tax assets , we have considered future taxable income from the following sources : ( a ) reversal of taxable temporary differences ; and ( b ) tax planning strategies available to us in accordance with ( asc 740 , “ income taxes ” ) that , if necessary , would be implemented to accelerate taxable income into years in which net operating losses might otherwise expire . our tax planning strategies include the prospective sale of certain assets such as finance receivables , residual interests in securitized finance receivables , charged off receivables and base servicing rights . the expected proceeds for such asset sales have been estimated based on our expectation of what buyers of the assets would consider to be reasonable assumptions for net cash flows and required rates of return for each of the various asset types . our estimates for net cash flows and required rates of return are subjective and inherently subject to future events which may significantly impact actual net proceeds we may receive from executing our tax planning strategies . nevertheless , we believe such asset sales can produce significant taxable income within the relevant carryforward period . such strategies could be implemented without significant impact on our core business or our ability to generate future growth . the costs related to the implementation of these tax strategies were considered in evaluating the amount of taxable income that could be generated in order to realize our deferred tax assets . 35 based upon the tax planning opportunities and other factors discussed below , we have concluded that the u.s. and state net operating loss carryforward periods provide enough time to utilize the deferred tax assets pertaining to the existing net operating loss carryforwards and any net operating loss that would be created by the reversal of the future net deductions which have not yet been taken on a tax return . although our core business has produced strong earnings in the past , even with intermittent loss periods resulting from economic cycles not unlike , although not as severe as , the current economic downturn , we have not used expected future taxable income in our evaluation of the value of our net deferred tax asset . we have taken steps to reduce our cost structure and have adjusted the contract interest rates and purchase prices applicable to our purchases of automobile contracts from dealers . we have been able to increase our acquisition fees and reduce our purchase prices because of lessened competition for our services . our estimates of taxable income that may be derived from the implementation of our tax planning strategies are forward-looking statements , and there can be no assurance that our estimates of such taxable income will be correct . factors discussed under `` risk factors , `` and in particular under the subheading `` risk factors forward-looking statements `` may affect whether such projections prove to be correct . we recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statement of operations . accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet . uncertainty of capital markets and general economic conditions we depend upon the availability of warehouse credit facilities and access to long-term financing through the issuance of asset-backed securities collateralized by our automobile contracts . since 1994 , we have completed 53 term securitizations of approximately $ 7.1 billion in contracts . we conducted four term securitizations in 2006 , four in 2007 , two 2008 , one in 2010 and three in 2011. from july 2003 through april 2008 all of our securitizations were structured as secured financings . the second of our two securitization transactions in 2008 ( completed in september 2008 ) and our securitization in september 2010 ( a re-securitization of the remaining receivables from the september 2008 transaction ) were each in substance a sale of the related contracts , and have been treated as sales for financial accounting purposes . during 2011 , we completed three securitizations of approximately $ 335.6 million in newly originated contracts . these securitizations were were all structured as secured financings and represented our first securitizations of new contracts since 2008. from the fourth quarter of 2007 through the end of 2009 , we observed unprecedented adverse changes in the market for securitized pools of automobile contracts . these changes included reduced liquidity , and reduced demand for asset-backed securities , particularly for securities carrying a financial guaranty and for securities backed by sub-prime automobile receivables . moreover , many of the firms that previously provided financial guarantees , which were an integral part of our securitizations , suspended offering such guarantees . the adverse changes that took place in the market from the fourth quarter of 2007 through the end of 2009 caused us to conserve liquidity by significantly reducing our purchases of automobile contracts . however , since october 2009 , we have gradually increased our contract purchases by utilizing one $ 50 million revolving credit facility that we established in september 2009 and another $ 50 million term funding facility that we established in march 2010. in september 2010 we took advantage of improvement in the market for asset-backed securities by re-securitizing the remaining underlying receivables from our unrated september 2008 securitization . by doing so we were able to pay off the bonds associated with the september 2008 transaction and issue rated bonds with a significantly lower weighted average coupon . the september 2010 transaction was our first rated term securitization since 1993 that did not utilize a financial guaranty .

