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The Company did not enter into any automobile loan securitization transactions during fiscal year2009. During fiscal year 2008, the Company sold automobile loans with an aggregate carrying value of$381.4 million for net sale proceeds of $381.9 million in a securitization transaction and recognized apre-tax gain of $0.5 million. During fiscal year 2007, the Company sold automobile loans with an aggregatecarrying value of $676.9 million for net sale proceeds of $682.1 million in a securitization transaction andrecognized a pre-tax gain of $5.2 million. The securitization transactions in which the Company entered intothrough September 30, 2008 were consistent in all material respects. As a result of a securitizationtransaction that the Company entered into in June 2008, it retained the subordinated securities in addition tothe residual interests. These retained subordinated securities had credit ratings from Standard & Poor’sranging from AA to BBB- at September 30, 2009.The fair value of the retained interests in securitized assets is generally estimated based on the presentvalue of future expected cash flows. The key assumptions used in the present value calculations at the dateof securitization were as follows:for the fiscal years ended September 30, 2009 2008 2007Excess cash flow discount rate (annual rate) 1 ..................... N/A 6.1% – 13.4% 12.0%Cumulative life loss rate ..................................... N/A 3.7% 3.9% – 4.1%Expected weighted-average life (years) ......................... N/A 3.6 4.0Pre-payment speed assumption (average monthly rate) ............. N/A 1.6% 1.6%1 The excess cash flow discount rate assumption for fiscal year 2008 includes retained subordinated securities.The Company determines the fair value of the retained interests in securitized assets at the date ofsecuritization and at the end of each period (see Note 1 – Significant Accounting Policies, Fair ValueMeasurements for a description of fair value methodologies used).The following table shows the sensitivity of the retained interests to hypothetical adverse changes inthe key economic assumptions used to measure fair value:(dollar amounts in thousands)for the fiscal years ended September 30, 2009 2008Fair value of retained interestsRetained subordinated securities .............................. $ 81,886 $ 81,825Residual interests ......................................... 28,714 29,782Total ................................................... $ 110,600 $ 111,607Excess cash flow discount rate (annual rate) ....................... 12.2% – 14.4% 9.6% – 19.8%Impact on fair value of 10% adverse change .................... $ (4,133) $ (3,865)Impact on fair value of 20% adverse change .................... (8,225) (7,713)Cumulative life loss rate ........................................ 7.4% 4.2%Impact on fair value of 10% adverse change .................... $ (2,376) $ (1,754)Impact on fair value of 20% adverse change .................... (4,763) (3,215)Expected weighted-average life (years) ............................ 2.2 2.7Prepayment speed (average monthly rate) .......................... 1.2% 1.5%Impact on fair value of 10% adverse change .................... $ (2,737) $ (1,645)Impact on fair value of 20% adverse change .................... (5,241) (3,054)Actual future market conditions may differ materially. Accordingly, this sensitivity analysis should notbe considered the Company’s projection of future events or losses. Subsequent to September 30, 2009, the91