XTRM Financial Assurance

At all times, the regulated entities maintain permissible investments that have an aggregate market value computed in accordance with generally accepted accounting principles of not less than the aggregate amount of all its outstanding payment instruments and other transfers. Corpay and its subsidiary and affiliated entities (collectively “Corpay”) are regulated in over fifty global jurisdictions. The legislation and regulation governing its payment activity varies from jurisdiction-to-jurisdiction. However, one of the commonalities among all jurisdictions is the legislative intent to ensure the pecuniary safety of customers. This is accomplished through two general tranches of legislative protections.

The first tranche involves protection afforded to mitigate the occurrence of an insolvency event. Many jurisdictions stipulate that Corpay maintains certain capital requirements. These provisions help to ensure that Corpay operates under sound financial health. Another legislative tool to help​ ​mitigate the occurrence of an insolvency event is the requirement to safeguard funds. Numerous jurisdictions require Corpay to maintain certain eligible assets to cover the funds it receives from its customers for payment activity. The aforesaid requirements are scrutinized with regularity through examinations, audits, and periodic reporting obligations.

The second tranche involves the protection afforded in the occurrence of an insolvency event. In the event of insolvency, many of Corpay’s regulatory authorities have certain legislative tools to help ensure the customer is made financially whole. Many jurisdictions stipulate that customers receive a senior debt preference. That is, obligations owed to customers are paid prior to obligations owed to non-customer creditors (i.e., junior debt holders). Additionally, Corpay is required to maintain surety bond coverage in certain jurisdictions within the United States. These United States customers are entitled to a claim on the surety bond for damages incurred by Corpay’s failure to perform a contractual obligation. Finally, many regulatory authorities have the ability to place Corpay in receivership. In this event, a receiver is appointed to run the company and manage the distribution of assets. The receiver would adhere to the above stated debt preference hierarchy.