A Pass-Through Certificate (PTC) transaction is a formal securitization process where an originator pools financial assets—such as retail auto loans, residential mortgages, or corporate receivables—and sells them to an intermediary special purpose vehicle or trust. The vehicle finances this acquisition by issuing PTCs to institutional investors, who then hold an undivided beneficial interest in the underlying cash flows. These transactions enable banks to free up regulatory capital, diversify funding sources, and transfer specific credit risks to capital market participants while ensuring transparent cash flow distributions.