FARMINGTON HILLS, Mich. – Chrysler Financial announced July 15 it has repaid in full the $1.5 billion of Troubled Asset Relief Program (TARP) government loans.

The company originally secured TARP funding in January of this year to support Chrysler LLC in its efforts to remain viable. Chrysler Financial used the TARP loans to fund more than 85,000 consumer loans to support the sale of Chrysler, Jeep and Dodge vehicles for Chrysler LLC.

The TARP funds were kept in a separate special purpose vehicle, and unlike other TARP recipients, those funds were never co-mingled with Chrysler Financial’s operating cash or balance sheet. This, and the quality of the assets in the portfolio, provided minimal risk exposure for the U.S. taxpayer during the six-month duration of the TARP loans.

Funds used to make the repayment of TARP were obtained through the completion of a AAA-rated automotive asset-backed securitization (ABS) through the Term Asset-Backed Securities Loan Facility (TALF). The original TARP loan contained provisions that increased Chrysler Financial’s costs over time, providing motivation for the company to pay off the loan as quickly as possible. As a result of this transaction, Chrysler Financial will have no further TARP loans outstanding.