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Ford Interest Advantage
Application and Prospectus
Three easy steps to complete a Ford Interest Advantage Application.
Read the below prospectus and check the confirmation box.
The prospectus was filed with the Securities and Exchange Commission as part of an effective Registration Statement related to the offering of Ford Interest Advantage Notes. It contains detailed information about Ford Credit and the Ford Interest Advantage Note Program. All potential investors should read and understand the prospectus prior to completing the Ford Interest Advantage application.
Ford Motor Credit Company LLC
Ford Interest Advantage
FLOATING RATE DEMAND NOTES
Ford Motor Credit Company LLC offers its Ford Interest Advantage
Floating Rate Demand Notes, referred to hereafter as the Notes, as a
convenient means of investing directly in Ford Motor Credit Company LLC
(‘‘Ford Credit’’). The Notes pay interest at a floating rate. Ford Credit files
pricing supplements with the Securities and Exchange Commission (the
‘‘SEC’’) that disclose the then-current interest rate on the Notes.
Key aspects of the Ford Interest Advantage program are:
- The Notes will pay interest above the average rate of taxable U.S.
money market funds.
- You may redeem your Notes at any time.
- Your investment is recorded by an Agent Bank appointed by us.
- Interest payable on the Notes will accrue and be compounded
daily and be automatically reinvested in Notes on the last day of
Key factors to consider before investing include:
- The Notes are not equivalent to a deposit or other bank
account and are not insured by the Federal Deposit Insurance
Corporation or any other insurance.
- The Notes are not an investment in a money market mutual
fund, in which investors purchase an interest in a diversified
fund consisting of investments in short term debt securities of
many companies, and are not subject to the requirements of
the Investment Company Act of 1940 (including requirements
relating to diversification and quality of investments).
- The Notes are not obligations of or guaranteed by Ford Motor
Company, the Agent Bank, or anyone else.
- The Notes are unsecured obligations of Ford Credit and only
Ford Credit’s assets that have not been sold or securitized are
available to pay the principal of and interest on the Notes. It is
possible for you to lose some or all of your investment in the
Notes, including accrued interest, if Ford Credit is unable to
pay its debts, becomes bankrupt or seeks creditor protection.
- The Notes are not transferable.
Investment in the Notes involves certain risks. See ‘‘Risk Factors’’
beginning on Page 6 of this prospectus.
The Notes will rank equally and ratably with all other unsecured senior
indebtedness of Ford Motor Credit Company LLC (parent company only). At
September 30, 2018, Ford Credit had outstanding debt of $138 billion on a
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these securities
or determined if this prospectus is truthful or complete. Any
representation to the contrary is a criminal offense.
The date of this Prospectus is February 5, 2019
You should rely only on the information contained or incorporated by reference in this Prospectus (including any applicable pricing supplements). No one has been authorized to provide you with different information.
The Notes are not being offered in any jurisdiction where the offer is not permitted.
You should not assume that the information in this Prospectus is
accurate as of any date other than the date of this Prospectus.
This section summarizes the terms of the Notes that are described
in greater detail below under ‘‘Description of Notes.’’ You should read
this more detailed description together with the information contained
in other parts of this prospectus, as well as the applicable pricing
supplements relating to the Notes.
Ford Motor Credit Company LLC
Ford Interest Advantage Floating Rate Demand Notes
Up to $10,000,000,000 aggregate principal amount
The Notes are unsecured and unsubordinated obligations of Ford Credit and will rank equally and ratably with all other unsecured senior indebtedness of Ford Credit. Ford Credit had outstanding $138 billion in senior, unsecured debt obligations on a consolidated basis as of September 30, 2018.
The Notes have no stated maturity. The Notes are demand investments redeemable in whole or in part at any time at the option of the holder. Ford Credit reserves the right to redeem the Notes of any holder at any time for any reason at its option. Ford Credit will consider redeeming the Notes of any holder who is determined by Ford Credit in its sole discretion to have abused the redemption provisions or any other provisions of the Notes.
The Notes earn interest at a floating rate per annum equal to the sum of the most recent seven-day average yield (non-compounded) for all taxable money funds as reported weekly in Money Fund Report and at least 1⁄4 of one percentage point. In addition, Ford Credit may from time to time, at its sole discretion, increase the rate of interest payable on the Notes by adding to this base rate an incremental per annum rate. Different incremental rates may be payable to investors based on such factors as Ford Credit may determine, including, but not limited to, the aggregate principal amount of their investment in the Notes. The interest rate is subject to adjustment weekly. The interest rate applicable to the Notes and all subsequent changes to such interest rate will be disclosed in pricing supplements filed with the SEC. Interest on the Notes will accrue and be compounded daily. Accrued interest will be automatically reinvested on the last day of each calendar month. The Notes are not issued by, and do not constitute an investment in, a money marketmutual fund, which is a diversified fund consisting of investments in short-term debt securities of many different issuers.
Ford Credit may assess certain fees from time to time as determined by Ford Credit in its sole discretion, including, without limitation, for checks returned for insufficient funds, for redemption checks written for less than $250.00, for failure to maintain the minimum net aggregate principal amount of Notes (presently set at $1,000), for wire redemptions, for stop payment requests, and other unusual requests. Information on all fees charged with respect to the Notes is available on Ford Credit’s website https://www.ford.com/finance/investor-center/ford-interest-advantage. Any applicable fees will be directly deducted from the aggregate principal amount of your Notes.
|Form of Notes
The Notes are issued as one or more global securities held by the depositary, which is currently The Bank of New York Mellon. Book-entry records for each investor are maintained by the Agent Bank. See ‘‘Description of Notes—General.’’ The Notes are offered by prospectus and only to persons who have a registered permanent address in the United States. A valid U.S. address must be on record with the Agent Bank at all times. Notes will only be issued to investors who provide either a U.S. social security number or a U.S. tax identification number.
Interest earned on the Notes is reportable as taxable income for U.S. federal tax purposes and is subject to taxation regardless of whether such interest is reinvested. Back-up witholding and information reporting may apply to certain persons.
The Northern Trust Company
|The Bank of New York Mellon|
Your investment in the Notes involves certain risks. Before investing in
the Notes, in consultation with your own financial and legal advisers, you
should carefully consider, among other matters, the following discussion of
risks specific to an investment in the Notes, the risks described under ‘‘Risk
Factors’’ in Item 1A of our Annual Report on Form 10-K for the year ended
December 31, 2017 and in our First Quarter 2018 10-Q Report, Second
Quarter 2018 10-Q Report, and Third Quarter 2018 10-Q Report (as defined
herein) (which descriptions are incorporated by reference herein), as well as
the other information contained or incorporated by reference in this
prospectus or any prospectus supplement hereto, including fillings made by
Ford Credit with the SEC after the date of this prospectus. The Notes are not
an appropriate investment for you if you do not understand the terms of the
Notes or financial matters generally. In addition, certain factors that may
adversely affect the business of Ford Credit and Ford Motor Company,
referred to hereafter as Ford, are discussed in Ford Credit’s periodic reports
referred to in ‘‘Where You Can Find More Information,’’ below. You should not
purchase Notes unless you understand and know you can bear all of the
investment risks involving the Notes.
Credit Rating Impact on Ford Credit’s Borrowing Costs. Ford Credit
has not requested, and does not anticipate receiving, a rating specific to the
Notes from any credit rating agency. Ford Credit’s short- and long-term debt
generally is rated by the following four credit rating agencies, designated as
nationally recognized statistical rating organizations by the SEC, and their
ratings of our debt as of the date of this prospectus are set forth below.
Because credit rating agencies can change their ratings at any time, you are
encouraged to consult our periodic reports filed with the SEC for any
updates to our credit ratings.
|Moody's Investors Service, Inc.
|Standard & Poor's Rating Service, a division of McGraw-Hill Companies, Inc.
A credit rating reflects an assessment by the rating agency of the credit
risk associated with Ford Credit or particular securities we issue, based on
information provided by Ford Credit, Ford, and other sources. Credit ratings
are not recommendations to buy, sell, or hold securities and are subject to
revision or withdrawal at any time by the assigning rating agency. Each rating
agency may have different criteria for evaluating company risk, and,
therefore, ratings should be evaluated independently for each rating agency.
Ford Credit’s credit ratings are closely associated with the rating agencies’
opinions of Ford. The credit ratings on Ford Credit may not reflect all risks
related to the Notes.
Lower credit ratings generally result in higher borrowing costs and
reduced access to capital markets and in the past we have been impacted by
this. In the event Ford Credit’s long and short-term debt ratings are further
downgraded, Ford Credit’s cost of borrowing may be adversely affected, and
it may have more limited access to the capital markets. This may require Ford
Credit to reduce the amount of receivables and operating leases it purchases
or originates, which would adversely affect its profitability and could
adversely affect its ability to support the sale of Ford vehicles.
The Interest Rate Paid on the Notes May Not Bear Any Relation to the Investment Risk. The interest rate on the Notes, which is the base rate
described below under ‘‘Description of Notes — Interest Rate Information’’
plus any incremental rate we may choose to pay in our sole discretion, does
not necessarily bear any relation to the risks associated with or change in the
creditworthiness, credit rating, or financial condition of either Ford or Ford
The Notes Are Not a Diversified Investment. The Notes are not an
investment in a money market mutual fund holding diversified investments in
the securities of many companies. Only the assets of Ford Credit that have
not been sold or securitized are available to pay the principal of and interest
on the Notes. Because the Notes are unsecured debt securities issued by a
single issuer, you will not have the benefits of diversification offered by
money market mutual funds or other investment companies. For this reason,
investors also will not have the protections provided to mutual fund investors
under the Investment Company Act of 1940.
Ford Credit Is Not a Bank, and Investments In the Notes Are Not
Insured by the Federal Deposit Insurance Corporation or Any Other
Source. Only Ford Credit is obligated to pay the principal of and interest on
the Notes, and only its assets are available for this purpose. If Ford Credit’s
assets are insufficient to pay the principal of and interest on the Notes, you
could lose some or all of your investment. No private or government source
guarantees return of your investment in the event of a failure of Ford Credit to
repay your investment. The Notes are not obligations of or guaranteed by
Ford Motor Company, the Agent Bank, or any other entity. No banking
relationship exists between investors and the Agent Bank.
The Notes Are Not Transferable. You may redeem your investment in
the Notes at any time in whole or in part as described in this prospectus.
However, you cannot transfer your investment in the Notes to someone else.
As a result, no secondary market for the Notes currently exists or will ever
exist, and, consequently, there is no public market valuation of the Notes to
assist investors in evaluating the Notes or their yield.
WHERE YOU CAN FIND MORE INFORMATION
The Notes are unsecured debt securities of Ford Credit, and only assets
of Ford Credit that have not been sold or securitized are available for
payments of principal and interest on the Notes. You can learn more about
Ford Credit’s business, financial results, and credit ratings by reading the
annual, quarterly, and current reports and other information Ford Credit files
with the SEC. You may read and copy any document Ford Credit files at the
SEC’s public reference room at 100 F Street, N.E., Washington D.C. 20549.
Please call the SEC at 1-800-SEC-0330 for further information on the public
reference room. The SEC filings of Ford Credit also are available to you at the
SEC’s web site at http://www.sec.gov.
The SEC allows Ford Credit to incorporate by reference the information it
files with the SEC, which means that Ford Credit can disclose important
information to you by referring you to those documents, which are
considered part of this prospectus. Information that Ford Credit files later
with the SEC will automatically update and supersede the previously filed
information. Ford Credit incorporates by reference the document listed
below and any future filings made with the SEC under Section 13(a), 13(c),
14 or 15(d) of the Securities Exchange Act of 1934 until the offering of all the
Notes has been completed.
- Annual Report of Ford Credit on Form 10-K for the year ended
December 31, 2017, which is referred to hereafter as the 2017 10-K
- Quarterly Report of Ford Credit on Form 10-Q for the quarter ended
March 31, 2018, which is referred to hereafter as the First Quarter 2018
- Quarterly Report of Ford Credit on Form 10-Q for the quarter ended
June 30, 2018, which is referred to hereafter as the Second Quarter
2018 10-Q Report.
- Quarterly Report of Ford Credit on Form 10-Q for the quarter ended
September 30, 2018, which is referred to hereafter as the Third Quarter
2018 10-Q Report.
- Current Reports of Ford Credit on Form 8-K filed in 2018 and 2019 on
January 3, 2018, January 16, 2018, January 24, 2018, February 1,
2018, February 7, 2018, February 22, 2018, March 1, 2018, March 5,
2018, March 23, 2018, March 28, 2018, April 3, 2018, April 25, 2018,
May 1, 2018, May 3, 2018, May 15, 2018, June 1, 2018, June 28, 2018,
July 3, 2018, July 25, 2018, August 1, 2018, August 9, 2018,
September 4, 2018, September 24, 2018, October 2, 2018,
October 24, 2018, November 1, 2018, December 3, 2018, January 3,
2019, January 7, 2019, January 16, 2019 and January 23, 2019.
These reports include information about Ford as well as information about Ford Credit.
You may request copies of these filings at no cost, by writing or
telephoning Ford Credit’s principal executive offices at the following
Ford Motor Credit Company LLC
One American Road
Dearborn, MI 48126
Attn: Corporate Secretary
INFORMATION CONCERNING FORD CREDIT
Ford Credit was incorporated in Delaware in 1959, was converted to a
Delaware limited liability company on May 1, 2007 and is an indirect, wholly
owned subsidiary of Ford. As used herein ‘‘Ford Credit’’ refers to Ford Motor
Credit Company LLC and its subsidiaries unless the context otherwise
Products and Services. Ford Credit offers a wide variety of automotive
financing products to and through automotive dealers throughout the world.
The predominant share of our business consists of financing Ford and
Lincoln vehicles and supporting the dealers of those brands. We earn our
revenue primarily from:
- Payments made under retail installment sale and lease contracts that
we originate and purchase;
- Interest rate supplements and other support payments from Ford and
affiliated companies; and
- Payments made under dealer financing programs.
As a result of our financing activities, we have a large portfolio of
consumer and non-consumer finance receivables and operating leases.
Finance receivables and operating leases in the consumer portfolio
include products offered to individuals and businesses that finance the
acquisition of Ford and Lincoln vehicles from dealers for personal and
commercial use. Retail financing includes retail installment sale contracts for
new and used vehicles and direct financing leases for new vehicles to retail
and commercial customers including lease companies, government entities,
daily rental companies, and fleet customers.
Finance receivables in the non-consumer portfolio include products
offered to automotive dealers and receivables related to Ford and its
affiliates. Ford Credit makes wholesale loans to dealers to finance the
purchase of vehicle inventory, also known as floorplan financing, as well as
loans to dealers to finance working capital and improvements to dealership
facilities, finance the purchase of dealership real estate, and finance other
dealer vehicle programs. We also purchase receivables from Ford and its
affiliates, primarily related to the sale of parts and accessories to dealers and
certain used vehicles from daily rental fleet companies. In addition, we
provide financing to Ford for vehicles that Ford leases to its employees.
We also service the finance receivables and leases we originate and
purchase, make loans to Ford affiliates, and provide insurance services
related to our financing programs.
Geographic Scope of Operations and Segment Information. We
conduct our financing operations directly and indirectly through our
subsidiaries and affiliates. We offer substantially similar products and
services throughout many different regions, subject to local legal restrictions
and market conditions. We segment our business based on geographic
regions: the Americas, Europe, and Asia Pacific. Items excluded in assessing
segment performance because they are managed at the corporate level,
including market valuation adjustments to derivatives and exchange-rate
fluctuations on foreign currency-denominated transactions, are reflected in
Our Americas segment includes operations in the United States,
Canada, Mexico, Brazil, and Argentina. This segment represents 83% and
78% of total managed receivables at year-end 2016 and 2017, respectively.
Our United States operations account for 87% and 85% of Americas segment
total managed receivables at year-end 2016 and 2017, respectively, and our
Canadian operations account for 11% and 13% of Americas segment total
managed receivables at year-end 2016 and 2017, respectively. Managed
receivables equal net finance receivables and net investment in operating leases, excluding unearned interest supplements and residual support,
allowance for credit losses, and other (primarily accumulated supplemental
Under the Ford Credit and Lincoln Automotive Financial Services brand
names, we provide financing services to and through dealers of Ford and
Lincoln vehicles. Operations in some markets may also include joint
ventures with local financial institutions and other third parties. In addition,
other private label operations and alternative business arrangements exist in
Our Europe segment includes operations in the European region and a
joint venture in South Africa. This segment represents 14% and 17% of total
managed receivables at year-end 2016 and 2017, respectively. Our
operations in the European region are managed through a United Kingdom based subsidiary, FCE Bank plc (‘‘FCE’’), which operates in the United
Kingdom and has branches in 11 other European countries. FCE also has
operating subsidiaries in Switzerland, the Czech Republic, and Hungary that
provide a variety of retail and dealer financing. The United Kingdom and
Germany are our largest markets in Europe, representing 65% and 59% of
Europe segment finance receivables and operating leases at year-end 2016
and 2017, respectively. Customers and dealers in Italy, France, and Spain
are 22% and 23% of Europe segment finance receivables and operating
leases at year-end 2016 and 2017, respectively. FCE, through its Worldwide
Trade Financing (‘‘WWTF’’) division, provides financing to distributors and
importers in about 70 countries where Ford has no national sales company
presence. Our operations include joint ventures with local financial
institutions and other third parties in various locations. In addition, other
private label operations and alternative business arrangements exist in some
Asia Pacific Segment
Our Asia Pacific segment includes operations in China and India. This
segment represents 3% and 5% of total managed receivables at year-end
2016 and 2017, respectively. China operations account for 97% of Asia
Pacific segment total managed receivables at year-end 2016 and 2017. In
addition, other private label operations and alternative business
arrangements exist in some markets.
The mailing address of Ford Credit’s executive offices is One American
Road, Dearborn, Michigan 48126, United States of America. The telephone
number of such offices is (313) 322-3000.
USE OF PROCEEDS
The net proceeds from the sale of the Notes will be added to the general
funds of Ford Credit and will be available for the purchase of receivables, for
loans and for use in connection with the retirement of debt. Such proceeds
initially may be used to reduce short-term borrowings (commercial paper or
borrowings under bank lines of credit) or may be invested temporarily in
Ford Credit expects to issue additional long-term and short-term debt
from time to time. The nature and amount of Ford Credit’s long-term and
short-term debt and the proportionate amount of each can be expected to
vary from time to time, as a result of business requirements, market
conditions and other factors.
DESCRIPTION OF NOTES
Investments in the Notes are subject to the Ford Interest Advantage
Terms and Conditions, referred to hereafter as the Terms and Conditions.
The principal provisions of the Terms and Conditions are summarized in the
next few pages. This summary is subject to the detailed provisions of the
Terms and Conditions, which are controlling. A copy of the Terms and
Conditions has been filed with the SEC and is an exhibit to the registration
statement of which this prospectus is a part. A copy of the Terms and
Conditions is available to any investor upon written request.
A record of the amount invested in the Notes is maintained for each
investor. The net aggregate principal amount of your Notes (which at any
time equals all amounts you invested in the Notes, together with accrued
interest thereon, less your redemptions and fees, if any) is recorded on a
register maintained by The Northern Trust Company, acting as the Agent
An investment in the Notes does not constitute an investment in a deposit or other bank account and is not protected by the Federal
Deposit Insurance Corporation or any other insurance. The Notes are not guaranteed by Ford Motor Company or any third party. The Notes are not an investment in a money market mutual fund holding diversified investments in securities of many companies. Because the Notes are unsecured debt securities issued by a single issuer (Ford Credit), investors will not have the advantage of diversification offered by money market mutual funds and will not have the protection provided by the Investment Company Act of 1940.
The Notes will have no stated maturity. Investments in the Notes are
non-transferable. Ford Credit reserves the right to withdraw, cancel or modify
the offer of the Notes at any time. Ford Credit may reject any offer to
purchase Notes in whole or in part for any reason. In addition, Ford Credit
reserves the right to redeem the Notes of any holder at any time for any
reason at its option. Ford Credit will consider redeeming the Notes of any
holder who is determined by Ford Credit in its sole discretion to have abused
the redemption provisions or any other provision of the Notes.
The Notes are unsecured obligations of Ford Credit, will be issued in
registered form only, without coupons, and will be identical except for the
issue date. Ford Credit does not maintain reserves for its obligations under
the Notes and the Notes are not subject to any sinking fund. The Notes are
redeemable at the option of the holder thereof as described below. The
Notes rank equally and ratably with all other unsecured senior indebtedness
of Ford Motor Credit Company LLC (parent company only). At
September 30, 2018, Ford Credit had outstanding debt of $138 billion on a
The Notes will be issued in the form of one or more global certificates that
will be deposited with a depositary, referred to hereafter as the Depositary,
which at present is The Bank of New York Mellon. Beneficial interests in
global certificates will be shown on records maintained by the Depositary or
the Agent Bank. While the Notes are represented by one or more global
• You will not be able to have the Notes registered in your name.
• You will not be able to receive a physical certificate for the Notes.
• Our obligations under the Notes, as well as the obligations of the
Trustee, will run only to owners of beneficial interests in the Notes
as recorded in records maintained by the Depositary or the Agent
You can obtain current Note investment information by calling
toll-free 800-462-2614 or by visiting our website at
also may write to Ford Interest Advantage, The Northern Trust Company,
P.O. Box 75936, Chicago, Illinois 60675-5936 to obtain Note investment
information. Further information about the Notes and assistance in investing
is available on the web site or by calling the number or writing to the address
Information on all fees charged in connection with administration of Note
investments is available on our web site or from the Agent Bank.
Plan provisions summarized here may be modified for limited numbers
of investors who voluntarily participate in tests of new program features
evaluated by Ford Credit from time to time.
Interest Rate Information
Current interest rate information is available on our website
by calling toll-free 800-462-2614. In addition, we file pricing supplements with
the SEC that disclose the then-current interest rates on the Notes.
Base Rate. The Notes earn interest at a floating rate per annum equal to
the sum of the most recent seven-day average yield (non-compounded) for
all taxable money funds as reported weekly in Money Fund Report* and at
least 1⁄4 of one percentage point, referred to herein as the base rate. The base
rate is determined and becomes effective on the next following Monday each
time a new seven-day average yield (non-compounded) for all taxable
money funds reported in Money Fund Report® is available. Such new
seven-day average yield (non-compounded) plus 1⁄4 of one percentage point
becomes the base rate for the following seven-day period. If in any week
Money Fund Report® is not available, the base rate for the following calendar week will be the same as that for the previous calendar week. If Money Fund Report® ceases to be published, an approximately equivalent effective base rate for investments in the Notes will be determined on the basis of a formula established by Ford Credit.
Money Fund Report® is published weekly and includes yield statistics for
nearly all taxable money funds in operation. The reported yields are obtained
from the money funds themselves and are stated on a consistent simple
interest basis to represent the annualized total yield to the investor, after
deducting any management fees and expenses of each of the money funds.
While Money Fund Report® states that the yield information obtained from
money funds is screened by the publisher, no guarantee of the accuracy of
the information contained in Money Fund Report® is made by Ford Credit.
Incremental Rate. Ford Credit may from time to time, at its sole
discretion, increase the rate of interest payable on the Notes beyond the
base rate by adding to the base rate an incremental per annum rate. The
amount of the incremental per annum rate added to the base rate, if any,
shall be determined by Ford Credit in its sole discretion. Different incremental
rates may be payable to investors based on such factors as Ford Credit may
determine, including, but not limited to, the net aggregate principal amount
of their Notes. Payment of incremental rates may be discontinued at any
Interest Generally. Interest on Notes either at the base rate or an
incremental rate, as the case may be, accrues daily and is credited to each
investor and automatically reinvested as of the last day of each calendar
* Money Fund Report® is a registered trademark of iMoneyNet, Inc.
(formerly IBC Financial Data, Inc).
month. The weekly interest rate paid on investments in the Notes may not
provide a basis for comparison with other investments which use a different
method of calculating a variable yield or which pay a fixed yield for a stated
period of time. In addition, money market mutual funds subject to the
Investment Company Act of 1940 generally are required to maintain a
diversified portfolio of short-term investments, substantially all of which must
be assigned the highest short-term rating from at least two nationally
recognized statistical rating organizations.
Interest credited for any given past period on investments in the Notes is
not an indication or representation of future results. Because the weekly
interest rate applicable to investments in the Notes may fluctuate, such
information may not provide a basis for comparison with bank deposits,
other investments which pay a fixed yield for a stated period of time, or
investment companies, including money market mutual funds, which may
use a different method of calculating yield. Information on the current interest
rate applicable to investments in the Notes is available on our web site, or by
calling toll-free 800-462-2614. In addition, we file pricing supplements with
the SEC disclosing the current interest rates applicable to the Notes.
Ford Credit may from time to time offer marketing incentives to certain
investors, including but not limited to investors making an initial investment
in the Notes, existing investors who refer new investors, and/or investors who
enroll in an automatic investment option or certain payroll deduction
programs. These incentives, if offered, may include offers to issue additional
principal amount of Notes. Whether Ford Credit offers any marketing
incentives in the future and, if so, what form of incentive will be offered and to
whom will be decided by Ford Credit in its sole discretion and will be
disclosed on our website. Any such marketing incentive may be modified or
terminated at any time by Ford Credit in its sole discretion.
How to Open a Note
To open a Ford Interest Advantage Note, you must first read this entire
program prospectus. After reading this prospectus, you must complete and
execute an enrollment form. There are multiple options for completing and
executing the enrollment form.
To complete the enrollment form and enroll in the program, go to the following website: https://www.ford.com/finance/investor-center/ford-interest-advantage and click on ‘‘Three Easy Ways to Enroll.’’ You will have the following options for completing the enrollment form and enrolling in the Ford Interest AdvantageProgram:
1) Online: Apply online and submit your initial investment using an
electronic transfer from your bank account. Selecting this option will
allow you to complete an electronic enrollment form and submit it
online. You will be required to make your initial investment by
automated clearing house transfer from your existing bank account
at the time you submit the enrollment form.
2) By Mail: Print a copy of the enrollment form from the website.
Selecting this option will allow you to print the enrollment form, which
you can then complete, sign and mail to the Agent Bank with an initial
investment check for $1,000.
3) By Phone: Contact the customer service line at 800-462-2614 and
request an enrollment package to be mailed to you. The Enrollment
Package will include an enrollment form, which you can complete,
sign and mail to the Agent Bank with an initial investment check for
The properly completed and executed enrollment form must be delivered to
the Agent Bank, either by mail or online, and be accompanied by an initial
investment of at least $1,000 in U.S dollars.
Initial Investment If Enrolling by mail. If your enrollment form is delivered
in paper form through the mail, your initial investment must accompany the
enrollment form and must be made by check. All investments must be made
in U.S. dollars and drawn on a bank in the U.S. Cashier’s checks, third party
checks, starter checks, and money orders may not be used to establish your
initial investment. The amount of the initial investment must be at least
$1,000. Checks should be made payable to ‘‘Ford Interest Advantage.’’ The
completed and executed enrollment form and check should be mailed to
The Northern Trust Company, P.O. Box 75936, Chicago, Illinois 60675-5936.
The alternative methods of investment described below may be used for
subsequent investments once your initial Note investment is made. Initial
investment by check shall be invested in Notes, and will begin accruing
interest, as described below under ‘‘— Investments by Check.’’
Initial Investment if Enrolling Online. If your enrollment form is submitted
using the online enrollment form located on the Ford Interest Advantage website
at: https://www.ford.com/finance/investor-center/ford-interest-advantage, your
initial investment must be made at the time the enrollment form is submitted
through the website by automated clearing house transfer from your existing
bank account as discussed below under ‘‘How to Invest.’’ All investments must
be made in U.S. dollars. Please refer to the Ford Interest Advantage website for
instructions, requirements, and guidelines with respect to online enrollment and
Enrollment Eligibility. Investments in the Notes may be made
individually, jointly, or as custodial or trust investments and may be opened
by individuals, corporations, partnerships, limited liability companies, firms,
Certain eligibility rules may apply for electronically submitted enrollment
submitting your enrollment form online. Enrollments completed online may
be made individually, jointly, or as custodial by U.S. citizens only.
Any Note jointly owned by two or more investors will be deemed to be
owned by such investors as joint tenants with right of survivorship unless
otherwise indicated or instructed in writing.
Employees of Ford Credit, Ford and certain subsidiaries may invest in the
Notes through payroll deduction subject to limitations established from time
to time by Ford Credit.
How to Invest
General. You may purchase Notes at any time, without charge to you,
by check, by wire transfer, by automatic charge to your bank account, by
transfer from other Ford Interest Advantage Notes owned by you, or by such
other means as Ford Credit from time to time determines. The minimum
amount which you may invest after your initial investment is $50. A minimum
net aggregate principal amount of Notes (presently set at $1,000) must be
maintained at all times. If your net aggregate principal amount of Notes falls
below the minimum required, Ford Credit may redeem your Notes or deduct
a monthly maintenance fee from the net aggregate principal amount of your
Notes. Redemptions of Notes for this purpose will be effected by mailing a
check for the principal amount of the Notes, plus accrued and unpaid
interest, to the investor address of record. The investor will be notified in
advance if Notes are to be redeemed for this reason. If the net aggregate
principal amount of your Note falls below $0 as a result of maintenance or
other fees being deducted or due to redemptions requested that exceed the
net aggregate principal amount of your Note, Ford Credit reserves the right
to redeem your Note in full and close the Note without notice.
Investments by Check. Once your initial Note investment is made, you
may invest additional funds by sending a check. Investment checks may be
mailed to us or remotely captured on a mobile electronic device using the
Ford Interest Advantage Mobile App. If the investment check is mailed to us,
it should be sent to Ford Interest Advantage, The Northern Trust Company,
P.O. Box 75935, Chicago, Illinois 60675-5935. Checks mailed to any address
other than the address set forth in the proceeding sentence may result in a
delay in the processing of your investment. An investment check sent to Ford
Interest Advantage by remote capture on a mobile electronic device can be
transmitted to us through the Ford Interest Advantage Mobile App. Ford
Credit reserves the right to suspend or terminate the Ford Interest Advantage
Mobile App in its sole discretion at any time. Use of the Mobile App is subject
to the Ford Interest Advantage Mobile App Terms and Conditions found on
our website. Your personal check (whether mailed or remotely captured on a
mobile electronic device and sent via the mobile app), should be made
payable to ‘‘Ford Interest Advantage.’’ Third party checks made payable to
you must be endorsed and both sides of such third party check must be
captured on the mobile electronic device and sent to The Northern Trust
Company via the Mobile App. The endorsement should include the words
‘‘For Mobile Investment Only, Ford Interest Advantage.’’ For subsequent
investments, you should indicate your investment identification number (i.e.,
Note number) on the check and enclose an investment form which is
provided as a detachable stub on statements (whether paper or
eStatements) and investment confirmations mailed by the Agent Bank.
Check investments sent by regular mail and received by the Agent Bank prior
to 9:00 a.m. Eastern Time will be invested in Notes, and will begin accruing
interest, on the first business day following the business day on which the
check investment is received by the Agent Bank in proper form. Check
investments sent by remote capture on a mobile electronic device and
received by the Agent Bank prior to 9:00 a.m. Eastern Time will be invested in
Notes, and will begin accruing interest, on the business day on which it is
received by the Agent Bank in proper form. Check investments received by
the Agent Bank (whether by mail or remote capture) after that time on a
business day, or on a non-business day, will be invested in Notes, and will
begin accruing interest, on the day following the first business day after that
check investment is received. Checks are accepted subject to collection at
full face value in U.S. funds and must be drawn in U.S. dollars on a bank in
the U.S. Investments made by check may be redeemed after 5 business
days or any shorter time as determined from time to time by Ford Credit.
Investments by Electronic Transfer. Once your initial Note investment is
made either by check or by automated clearing house transfer from an
existing bank account, you may invest additional funds by wire transfer or
automated clearing house transfer of funds to Ford Interest Advantage, The
Northern Trust Company. The Routing Code of The Northern Trust Company
for such transfers is 0710-00152. For all investments through these electronic
transfers, the transfer instructions must include the name ‘‘Ford Interest
Advantage’’ and your name, address, and identification number (i.e., Note
number). Subsequent investments by electronic transfer after the initial
investment received by the Agent Bank prior to 2:00 p.m. Eastern Time will
be invested in Notes, and will begin accruing interest, on the business day
received. Investments by electronic transfer received after that time on a
business day, or on a non-business day, will be invested in Notes, and will
begin accruing interest, on the first business day after that transfer is
received. Transferring funds electronically by means other than wire transfer
or automated clearing house transfer to the Agent Bank may result in a delay
in crediting the investment to your Note investment. Neither Ford Credit nor
the Agent Bank will be responsible for delays in funds transfer systems.
Amounts invested by electronic transfer typically will be available for
redemption on the day of receipt in good order in the case of wire transfers,
and five business days after receipt in the case of automated clearing house
transfers, or such shorter time as Ford Credit may determine from time to
time. All investments received by electronic transfer will be acknowledged by
an investment confirmation sent by mail.
Investments by Automatic Monthly or Periodic Charge to Bank Accounts.
Once your initial Note investment is made, you may invest additional funds
by authorizing the Agent Bank to make automatic monthly or periodic
charges of $50 or more to your bank account. Upon receipt of your
authorization, the Agent Bank will prepare an electronic funds transfer drawn
against your bank account for the prescribed amount and will invest the
proceeds in the Notes. The proceeds will accrue interest on the same
conditions as set forth under ‘‘— Investments by Check.’’ You may change
the amount of the automatic or periodic investment (subject to the
$50 monthly minimum) or terminate investments at any time by providing
notice to the Agent Bank. From time to time, Ford Credit may, in its sole
discretion, authorize the Agent Bank to accept deposits of less than the $50
minimum amount. The requested change or termination will be effective as
soon as practicable after receipt of notice by the Agent Bank. Investments
made by Automatic Monthly or Periodic Charge to bank accounts may be
redeemed after five business days or such shorter time as determined from
time to time by Ford Credit.
Investment by Transfer between FIA Notes. If you own more than one
Note, you may transfer funds from one Note to another Note owned by you.
Such a transfer will be accomplished by redeeming a portion of the Note
from which the transfer will originate and investing the proceeds of such
redemption in the Note to which the transfer is directed. Transfers between
Notes may only be made between Notes owned by the same investor,
including to or from an individual, joint, custodial, or trust investment Note of
which such investor is an owner, custodian, or trustee, as applicable. You
may submit a form available on our website to establish a recurring transfer
or a one-time transfer between your Notes or you may use our on-line service
at any time to establish such a transfer.Forms to establish the Automatic Monthly
or Periodic Charge to bank accounts are available from the Agent Bank or on-line via the FIA website.
Investment Information. The Agent Bank maintains a record of your
investments in the Notes. The net outstanding aggregate principal amount of
your Notes is equal to all amounts invested in the Notes, including Notes
purchased with reinvested interest, less redemptions and fees, if any. Shortly
after the end of each reporting period, the Agent Bank will send you, or make
available to you, a Note investment statement (via mail or electronically)
setting forth a summary of all transactions relating to your investment in the
Notes during the period, including beginning and ending aggregate
principal amounts and interest paid and reinvested for the period.
Statements are presently offered quarterly or, by special request to the Agent
Bank, monthly. This information is also available through our website.
Your Responsibility to Review Note Activity. You are responsible for
examining each statement or confirmation mailed or otherwise made
available to you promptly to determine the accuracy of all redemptions and
investments made to your Notes. Failure to promptly report to the Agent
Bank an unauthorized payment may impact your ability to recover such
unauthorized payment and neither Ford Credit nor the Agent Bank will be
liable for such loss.
Keeping Your Note Information Current. You must promptly provide the
Agent Bank with notice of any change to your address. The permanent
address on record must be a U.S address. Foreign addresses will not be
accepted, except as a mailing address for statements and correspondence.
If you are relocating out of the U.S and will no longer have a U.S. permanent
address, you may be asked to redeem your note in full.
If your permanent address is not kept up to date and mail is returned to
us by the United States Post Office and we cannot locate you using
commercially reasonable means, we may be required, after a specified time
period, to remit the net aggregate principal amount of your Note as
abandoned property as required by applicable state unclaimed property law.
The full amount of your taxable interest income reportable for Federal
income tax purposes for the year also will be provided annually.
How to Redeem Investments
General. You may redeem all or any part of your investment at any time.
Investments may be redeemed by writing a redemption check, by writing or
telephoning a request for redemption by bank check, and by electronic
transfer. We may also offer other methods of redemption from time to time, at
our option, including on-line bill pay features. Any on-line redemption
methods that Ford Credit may offer from time to time will be subject in all
respects to the Ford Credit On-line Terms and Conditions, which can be
found on our website. Any redemption method other than by redemption
check or by a written request for redemption by bank check or electronic
transfer that we may offer from time to time may be suspended or eliminated
at any time in Ford Credit’s sole discretion. If the amount to be redeemed
represents an investment made by check, the redemption request will not be
honored if made within 5 business days from the receipt of the related
investment check. If you need more immediate access to your funds, you
may avoid this delay by investing through one of the other available means of
investment such as by wire transfer. If the net aggregate principal amount of
your Note falls below $0 as a result of redemptions requested that exceed the
net aggregate principal amount of your Note, or otherwise, Ford Credit
reserves the right to redeem your Note in full and close the Note without
notice. Investors redeeming their Notes will receive all accrued and unpaid
interest. In addition, Ford Credit reserves the right to redeem the Notes of any
holder at any time at its option. Ford Credit will consider exercising this right
and redeeming the Notes of any holder who is determined by Ford Credit in
its sole discretion to have abused the redemption provisions or other
provisions of the Notes.
Redemption by Bank Check. You may redeem all or a portion of the net
aggregate principal amount of your Notes at any time by writing or
telephoning the Agent Bank requesting redemption. Redemptions will be
made by bank check ($250 minimum), mailed to your registered address.
Written requests for redemption by bank check should be sent to Ford
Interest Advantage, c/o The Northern Trust Company, P.O. Box 75936,
Chicago, Illinois 60675-5936. All written requests for redemption require a
signature of a Noteholder, signed exactly as the Noteholder’s name appears
on the investment enrollment form submitted to the Agent Bank or on the
signature card submitted to the Agent Bank if the enrollment form was
delivered electronically through the website. Failure to submit such signature
card will result in no redemption checks being issued with respect to such
Note. If the request in proper form for redemption by bank check is received
by the Agent Bank in its Ford Interest Advantage Servicing Area prior to
11:00 a.m. Eastern Time on a business day, the bank check normally will be
mailed on that business day. Bank checks normally will be mailed on the next
business day if the redemption request, in proper form, is received by the
Agent Bank after 11:00 a.m. Eastern Time on a business day. Interest will
accrue to but not including the business day the bank check is prepared.
Written and telephone redemption requests should not be made to Ford
or Ford Credit.
Check Redemption. You will be provided with a supply of redemption
checks free of charge following receipt by the Agent Bank of a properly
completed enrollment form. If the enrollment form is delivered electronically
from the Ford Interest Advantage website, you must complete the FIA Online
Application Signature Requirements Card and return it to the Agent Bank
before redemption checks will be provided. The FIA Online Application
Signature Requirements Card can be found under the ‘‘My Form’’ tab at the
following web address: https://www.ford.com/finance/investor-center/fordinterest-
advantage. After you receive your initial allotment of redemption
checks, you may order additional redemption checks by using the check
reorder form in your current checkbook, by telephoning The Northern Trust
Company toll-free at 800-462-2614, or through our web site. Redemption
checks will be sent only to the registered investment owners and only to the
registered investment address. Allowing redemption by check does not
create a checking or other bank account or a depositor or banking
relationship with the Agent Bank or Ford Credit.
You may make redemption checks payable to the order of anyone in any
amount not less than the minimum redemption amount (currently $250).
Checks presented for less than the minimum redemption amount will not be
honored. No fee will be charged by Ford Credit to process checks payable in
amounts equal to or greater than the minimum redemption amount. Ford
Credit may modify the minimum redemption amount from time to time. Ford
Credit also may, at its sole discretion, elect to honor checks for less than the
minimum redemption amount and may charge a processing fee for such
checks which will be deducted from the net aggregate principal amount of
your Notes. The amount of the Notes to be redeemed by check will continue
accruing interest until the redemption check is presented for payment.
If the amount of a redemption check is greater than the net aggregate
principal amount of your Notes, the check will not be honored and will be
returned marked ‘‘insufficient funds’’ and you will be charged a fee in an
amount determined by Ford Credit. You also will be charged a fee to place a
stop order on a redemption check. Copies of redemption checks on which
payment has been made will be provided to you by the Agent Bank upon
your request, but a fee may be charged for this service. Ford Credit reserves
the right at any time to modify, terminate, or suspend the procedures
permitting check redemptions.
Redemption by Electronic Transfer. By selecting the Redemption by
Electronic Transfer Option on the investment enrollment form or in a
subsequent written request, you may arrange to have redemption proceeds
transferred by wire transfer or automated clearing house transfer to an
account at a bank or other financial institution. The minimum amounts for
such transfers are $500 for wire transfers and $50 for automated clearing
house transfers. By use of this redemption option, you authorize the Agent
Bank to act on telephone or written redemption instructions or instructions
transmitted through the Ford Interest Advantage Website, without signature
guarantees, from any person or persons representing themselves to be the
registered owners of your Notes. The Agent Bank’s records of such
instructions are binding. Wire transfers may only be initiated by written
request to the Agent Bank or by calling 1-800-462-2614. In order to be
eligible for redemption by electronic transfer, you must designate an account
number at a bank or other financial institution to receive electronic transfers
of redemption proceeds. The day and time at which a Redemption by
Electronic Transfer is received by the receiving financial institution will vary
based on the type of transfer selected and the time of day that complete
transfer instructions are received by the Agent Bank. Interest will accrue to
but not including the business day on which the redemption proceeds are
transferred. A fee may be charged for redemptions by electronic transfer.
If you have not selected the Redemption by Electronic Transfer Option on
the investment application or in a subsequent request, you may request
redemption by wire transfer subject to the conditions described in the
preceding and following paragraphs and such other conditions as Ford
Credit may determine in its sole discretion.
Electronic transfer redemption instructions must designate Ford Interest
Advantage, your name, the Note investment number, the name(s) of the
registered owner(s) submitting the electronic redemption request and the
routing code of the bank. Electronic transfer redemption instructions may be
effected by telephoning the Agent Bank toll-free at 800-462-2614, through
our web site or by such other means as Ford Credit may determine in its sole
discretion. The bank and account number may be changed only upon
written request to the Agent Bank with the signature of each registered
investment owner (including joint owners) of the Notes. Alternatively, Ford
Credit may allow such changes to be made on-line through its website or
otherwise as it determines in its sole discretion from time to time. Neither the
Agent Bank nor Ford Credit will be responsible for delays in the electronic
funds transfer system or the authenticity of withdrawal instructions.
Electronic transfer redemption proceeds will be wired to an account at a
bank that is a member of the Federal Reserve System, or to a correspondent
bank of the bank if the bank is not a member of the Federal Reserve System.
If the correspondent bank fails to notify the bank immediately, there may be a
delay in crediting the funds to the bank account. The procedures permitting
redemptions by electronic transfer may be modified, terminated, or
suspended at any time by Ford Credit.
Indenture and Trustee
The Notes are issuable under an Indenture dated as of July 1, 1985, as
supplemented, referred to hereafter as the Indenture, between Ford Credit
and The Bank of New York Mellon (The Bank of New York Mellon, in its
capacity as trustee under the Indenture, or any successor trustee is referred
to hereafter as the Trustee). A copy of the Indenture also is filed as an exhibit
to the registration statement filed with the SEC covering the offering of the
Notes, and statements in this prospectus relating to the Notes are subject to
the detailed provisions of the Indenture and the Ford Interest Advantage
Terms and Conditions. Whenever any particular section of the Indenture or
any term used in it is referred to, the statement in connection with which such
reference is made is qualified in its entirety by such reference.
The Bank of New York Mellon, the trustee under the Indenture, is also the
trustee under indentures covering a number of outstanding issues of notes
and debentures of Ford, is a depositary of Ford Credit and Ford, has from
time to time made loans to Ford Credit, Ford and its subsidiaries and has
performed other services for such companies in the normal course of its
Limitation on Liens
If Ford Credit or any Restricted Subsidiary (as defined in the Indenture)
shall pledge or otherwise subject to any lien (as defined in the Indenture as a
‘‘Mortgage’’) any of its property or assets, Ford Credit will secure or cause
such Restricted Subsidiary to secure the debt securities equally and ratably
with (or prior to) the indebtedness secured by such Mortgage. This
restriction does not apply to Mortgages securing such indebtedness which
shall not exceed $5 million in the aggregate at any one time outstanding and
does not apply to:
• certain Mortgages created or incurred to secure financing of the
export or marketing of goods outside the United States;
• Mortgages on accounts receivable payable in foreign currencies
securing indebtedness incurred and payable outside the United
• Mortgages in favor of Ford Credit or any Restricted Subsidiary;
• Mortgages in favor of governmental bodies to secure progress,
advance or other payments, or deposits with any governmental
body required in connection with the business of Ford Credit or a
• deposits made in connection with pending litigation;
• Mortgages existing at the time of acquisition of the assets secured
thereby (including acquisition through merger or consolidation)
and certain purchase money Mortgages; and
• any extension, renewal or replacement of any Mortgage or
Mortgages referred to in the foregoing clauses, inclusive.
(Section 5.05 in the Indenture.)
Merger and Consolidation
The Indenture provides that no consolidation or merger of Ford Credit
with or into any other corporation shall be permitted, and no sale or
conveyance of its property as an entirety, or substantially as an entirety, may
be made to another corporation, if, as a result thereof, any asset of Ford
Credit or a Restricted Subsidiary would become subject to a Mortgage,
unless the debt securities shall be equally and ratably secured with (or prior
to) the indebtedness secured by such Mortgage, or unless such Mortgage
could be created pursuant to Section 5.05 in the Indenture (summarized
under ‘‘— Limitation on Liens’’ above) without equally and ratably securing
the Indenture Securities. (Section 12.03 in the Indenture.)
Events of Default
The following events are defined in the Indenture as ‘‘Events of Default’’:
• failure to pay principal or interest when due;
• failure to perform any other covenants for 90 days after notice; and
• the bankruptcy, insolvency or related reorganization of Ford
Credit. (Section 7.01 in the Indenture.)
The Indenture provides that the Trustee shall, within 90 days after the
occurrence of a default, give the Noteholders notice of all uncured defaults
known to it (the term default to include the events specified above without
grace periods); provided that, except in the case of default in the payment of
principal or interest on any of the Notes, the Trustee shall be protected in
withholding such notice if it in good faith determines that the withholding of
such notice is in the interests of the Noteholders. (Section 7.07 in the
Ford Credit is required to furnish to the Trustee annually a statement of
certain officers of Ford Credit stating whether or not to the best of their
knowledge Ford Credit is in default in the performance and observance of
the terms of the Indenture and, if Ford Credit is in default, specifying such
default. (Section 5.06 in the Indenture.)
The holders of a majority in aggregate principal amount of all
outstanding Notes have the right to waive certain defaults and, subject to
certain limitations, to direct the time, method and place of conducting any
proceedings for any remedy available to the Trustee or exercising any trust or
power conferred on the Trustee. (Section 7.06 in the Indenture.) The
Indenture provides that, in case an Event of Default shall occur (which shall
not have been cured or waived), the Trustee is required to exercise such of its
rights and powers under the Indenture, and to use the degree of care and
skill in their exercise, that a prudent man would exercise or use in the
conduct of his own affairs, but otherwise need only perform such duties as
are specifically set forth in the Indenture. (Section 8.01 in the Indenture)
Subject to such provisions, the Trustee is under no obligation to exercise any
of its rights or powers under the Indenture at the request of any of the
Noteholders unless they shall have offered to the Trustee reasonable security
or indemnity. (Section 8.02 in the Indenture.)
Modification of the Indenture
With certain exceptions, under the Indenture, Ford Credit’s rights and
obligations, and the rights of the Noteholders may be modified by Ford
Credit with the consent of the holders of not less than 662⁄3% in aggregate
principal amount of the Notes then outstanding; but no such modifications
may be made which would (i) diminish the principal amount of any Note, or
accrued and unpaid interest thereon; or (ii) reduce the above-stated
percentage of Notes, the consent of the holders of which is required to
modify or alter the Indenture, without the consent of the holders of all Notes
then outstanding. (Section 11.02 in the Indenture.)
AGENT BANK AND ADMINISTRATION
Ford Credit employs an Agent Bank, currently The Northern Trust
Company, 50 South LaSalle Street, Chicago, Illinois 60603, to act as Ford
Credit’s agent for the Ford Interest Advantage. Services performed by the
Agent Bank and its affiliates include establishment and maintenance of Note
investment records, including transactions processing and accounting;
preparation of Note investment statements and other correspondence;
investor servicing; advice on the principal balance of Notes; accrual of interest
income and payment of interest earned; and required tax reporting and filings
with proper authorities. For these services, Ford Credit pays the Agent Bank an
agency and administrative fee monthly based on the number of Notes with
positive balances at the end of each month, as well as reasonable
out-of-pocket costs (such as, but not limited to, postage, forms, telephone and
wire expenses). These costs and all other costs incurred in connection with the
offering of the Notes are paid by Ford Credit. Investors may be charged
administrative service fees as described in this Prospectus. Also, investors
may incur charges in obtaining required signature guarantees.
Ford Credit has established a Ford Interest Advantage Committee, which
meets as needed to assist in the administration of the Terms and Conditions,
interpret their provisions, establish rules or procedures relating to the Notes,
or determine procedures to set rates of interest for the Notes. The members
of the committee are employees of Ford Credit or Ford.
The Notes are not qualified under Section 401(a) of the Internal Revenue
Code. Accordingly, all interest credited to the Notes or paid in any taxable
year is reportable by the investor, and other holders, as taxable income for
Federal income tax purposes. No part of the taxable interest is excludable
from taxable income. The statement sent to the investor or other holders by the Agent Bank (via
mail or electronically) covering the final reporting period of each year will state
the full amount reportable as taxable income. The Agent Bank also will file tax
information returns as required by law. State and local income taxes and
related tax reporting also may be applicable. Investors are individually
responsible for complying with applicable Federal, state and local tax laws and
should consult their individual tax advisors regarding any specific questions.
TERMINATION, SUSPENSION OR MODIFICATION
Ford Credit expects that Ford Interest Advantage will continue for some
time, but reserves the right at any time to terminate, to suspend or from time
to time to modify the program in part, or in its entirety, or in respect of
categories of investors, including, but not limited to, investors located in one
or more jurisdictions. Ford Credit may, in its discretion, temporarily suspend
the acceptance of new investments in Notes without such suspension
constituting a suspension or termination of the program. Any modification
that affects the rights or duties of the Trustee may be made only with the
consent of the Trustee. No termination, modification or suspension will affect
your right to redeem your Notes or diminish the net aggregate principal
amount of your Notes as of the effective date thereof.
RIGHTS NOT TRANSFERABLE
No right or interest in or to a Note is assignable or transferable in whole or
in part except for redemptions and no attempted assignment or transfer
otherwise will be effective. Except for redemptions, and except for the right to
correct any investments in Notes made in error, no right or interest of any
investor in a Note shall be liable for, or subject to, any obligation or liability of
PLAN OF DISTRIBUTION
The Notes are offered on a continuing basis by Ford Credit directly on its
behalf and no commissions will be paid. Ford Credit may from time to time
designate agents in certain jurisdictions through whom Notes may be
offered. Such agents shall receive no commissions but shall be reimbursed
for certain expenses incurred in connection with such efforts. Ford Credit has
the sole right to accept offers to purchase Notes and may reject any
proposed purchase of Notes in whole or in part.
David J. Witten, who is Ford Credit’s Assistant Secretary, has given an
opinion about the legality of the Notes. Mr. Witten owns shares of Ford
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The financial statements and management’s assessment of the
effectiveness of internal control over financial reporting (which is included in
Management’s Report on Internal Control over Financial Reporting)
incorporated in this prospectus supplement by reference to the Annual
Report on Form 10-K for the year ended December 31, 2017 have been so
incorporated in reliance on the report of PricewaterhouseCoopers LLP, an
independent registered public accounting firm, given on the authority of said
firm as experts in auditing and accounting.
With respect to the unaudited financial information of Ford Credit for the
three month periods ended March 31, 2018 and 2017, incorporated by
reference in this prospectus supplement, PricewaterhouseCoopers LLP
reported that it has applied limited procedures in accordance with
professional standards for a review of such information. However, its
separate report dated April 25, 2018, incorporated by reference herein,
states that PricewaterhouseCoopers LLP did not audit and does not express
an opinion on that unaudited financial information. Accordingly, the degree
of reliance on its report on such information should be restricted in light of the
limited nature of the review procedures applied.
PricewaterhouseCoopers LLP is not subject to the liability provisions of
Section 11 of the Securities Act of 1933, as amended (the ‘‘Act’’), for its report
on the unaudited financial information because that report is not a ‘‘report’’ or
a ‘‘part’’ of the registration statement prepared or certified by
PricewaterhouseCoopers LLP within the meaning of Sections 7 and 11 of the