Toyota ABS Trust Reports Clean Servicing, Trustees Face RMBS & Student Loan Suits

TL;DR

**Toyota's auto loan securitization is operationally sound, but watch the trustee lawsuits – they're a broader market signal.**

AI Summary

Toyota Auto Receivables 2025-B Owner Trust, a securitization entity, filed its 10-K for the fiscal year ended December 31, 2025, indicating no common equity outstanding and no single obligor representing 10% or more of its asset pool. The Trust reported no external credit enhancement or derivative instruments supporting its pool assets or notes. Key servicing participants, Toyota Motor Credit Corporation (TMCC) and U.S. Bank N.A., each submitted reports on assessment of compliance with servicing criteria for the 2025 reporting period, with neither identifying any material instances of noncompliance. However, U.S. Bank N.A. disclosed ongoing litigation related to its trustee roles in residential mortgage-backed securities (RMBS) and student loan trusts, including the NCMSLT Action filed on March 9, 2018. Wilmington Trust, National Association (WTNA), the owner trustee, also disclosed a civil complaint served on February 3, 2026, for alleged breaches of contract related to Tricolor Holdings, LLC asset-backed securitization transactions, though WTNA does not believe the resolution will be material to security holders.

Why It Matters

This 10-K provides crucial transparency for investors in Toyota Auto Receivables 2025-B Owner Trust, confirming the operational compliance of key servicers like Toyota Motor Credit Corporation and U.S. Bank N.A. The disclosed legal challenges faced by U.S. Bank N.A. and Wilmington Trust, National Association, while not directly impacting this specific Toyota trust, highlight broader systemic risks within the securitization market regarding trustee responsibilities and could influence investor confidence in other asset-backed securities where these entities serve. This competitive context means investors must scrutinize trustee disclosures across all their ABS holdings, not just the immediate issuer, to assess potential indirect reputational or operational risks.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant legal proceedings disclosed by U.S. Bank N.A. and Wilmington Trust, National Association, even though they are not directly related to the Toyota Auto Receivables 2025-B Owner Trust. U.S. Bank N.A. is involved in multiple lawsuits concerning its role as trustee for RMBS and student loan trusts, including the NCMSLT Action filed on March 9, 2018, alleging failures to enforce obligations. Wilmington Trust, National Association, was served with a civil complaint on February 3, 2026, for alleged breaches related to Tricolor Holdings, LLC ABS transactions. While both deny liability, these ongoing litigations could impact their operational capacity or reputation, indirectly affecting their ability to perform duties for the Toyota Trust.

Analyst Insight

Investors should maintain their position in Toyota Auto Receivables 2025-B Owner Trust given the clean servicing reports from TMCC and U.S. Bank N.A. However, they should closely monitor the outcomes of the legal proceedings involving U.S. Bank N.A. and Wilmington Trust, National Association, as these could signal broader systemic risks or reputational damage to key securitization participants, potentially impacting future ABS transactions.

Financial Highlights

debt To Equity

0.0

revenue

$0

operating Margin

N/A

total Assets

$0

total Debt

$0

net Income

$0

eps

$0

gross Margin

N/A

cash Position

$0

revenue Growth

N/A

Key Numbers

• December 31, 2025 — Fiscal Year End (The period covered by this 10-K filing.)
• March 24, 2026 — Filing Date (Date the 10-K was filed with the SEC.)
• 0002058316 — CIK Number (Central Index Key for Toyota Auto Receivables 2025-B Owner Trust.)
• 0001131131 — CIK Number (Central Index Key for Toyota Auto Finance Receivables LLC.)
• 0000834071 — CIK Number (Central Index Key for Toyota Motor Credit Corporation.)
• 10% — Obligor Concentration Threshold (No single obligor represents 10% or more of the asset pool.)
• April 30, 2025 — Agreement Date (Date of key agreements like the Amended and Restated Trust Agreement and Indenture.)
• March 9, 2018 — Lawsuit Filing Date (Date the NCMSLT Action was filed against U.S. Bank N.A.)
• February 3, 2026 — Lawsuit Service Date (Date Wilmington Trust, National Association was served with a civil complaint.)

Key Players & Entities

• Toyota Auto Receivables 2025-B Owner Trust (company) — issuing entity
• Toyota Auto Finance Receivables LLC (company) — depositor and registrant
• Toyota Motor Credit Corporation (company) — sponsor and servicer
• U.S. Bank National Association (company) — indenture trustee and servicing participant
• Wilmington Trust, National Association (company) — owner trustee
• Tellis Bethel (person) — Treasurer & Chief Financial Officer of Toyota Auto Finance Receivables LLC
• Clayton Fixed Income Services LLC (company) — asset representations reviewer
• PricewaterhouseCoopers LLP (company) — independent registered public accounting firm for TMCC
• Ernst & Young LLP (company) — independent registered public accounting firm for U.S. Bank N.A.
• Tricolor Holdings, LLC (company) — entity related to asset-backed securitization transactions where WTNA faces litigation

Forward-Looking Statements

• The trust will continue to demonstrate compliance with servicing criteria in future filings. (Toyota Auto Receivables 2025-B Owner Trust) — high confidence, target: 2027-03-31
• The asset-backed securities issued by this trust will maintain their current credit ratings due to consistent compliance. (asset-backed securities) — medium confidence, target: 2026-12-31

FAQ

Risk Factors

• Litigation Against Servicing Participants [medium — legal]: U.S. Bank N.A., the indenture trustee, is involved in ongoing litigation related to its trustee roles in RMBS and student loan trusts, including the NCMSLT Action filed on March 9, 2018. Wilmington Trust, National Association, the owner trustee, was served with a civil complaint on February 3, 2026, for alleged breaches of contract related to Tricolor Holdings, LLC ABS transactions. While WTNA does not believe the resolution will be material to security holders, these legal proceedings introduce potential operational and reputational risks.
• Servicing Compliance [low — operational]: Both Toyota Motor Credit Corporation (TMCC) and U.S. Bank N.A. submitted reports assessing compliance with servicing criteria for the 2025 period. Neither identified any material instances of noncompliance. However, the reliance on third-party servicers and trustees inherently carries operational risk, as any future noncompliance could impact the performance of the securitized assets.

Industry Context

The auto finance industry is characterized by intense competition among lenders, including captive finance companies like Toyota Motor Credit Corporation, banks, and independent finance companies. Key trends include evolving consumer preferences towards electric vehicles, increasing use of digital platforms for loan origination and servicing, and a dynamic regulatory environment impacting lending practices and data privacy.

Regulatory Implications

The trust operates within a framework governed by securities laws and regulations, including those related to disclosure and reporting. The ongoing litigation involving servicing participants, while not directly against the trust, could indirectly impact investor confidence or lead to increased scrutiny of operational controls within the securitization structure.

What Investors Should Do

1. Monitor litigation involving U.S. Bank N.A. and Wilmington Trust, National Association.
2. Review servicing reports for any future indications of noncompliance.
3. Assess the impact of broader auto industry trends on the underlying receivables.

Key Dates

• 2025-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2026-03-24: 10-K Filing Date — Indicates the timeliness of the company's financial reporting to the SEC.
• 2025-04-30: Amended and Restated Trust Agreement and Indenture Date — Establishes the governing documents for the trust and its notes, outlining the rights and obligations of parties involved.
• 2018-03-09: NCMSLT Action Lawsuit Filing Date — Represents a historical legal proceeding involving U.S. Bank N.A., a key trustee, highlighting potential ongoing risks.
• 2026-02-03: Wilmington Trust Civil Complaint Service Date — Indicates a recent legal challenge against the owner trustee, potentially impacting its operations or reputation.

Glossary

Owner Trustee

A trustee appointed to hold legal title to the assets of a trust for the benefit of the certificate holders. (Wilmington Trust, National Association serves as the owner trustee for the Toyota Auto Receivables 2025-B Owner Trust.)

Indenture Trustee

A trustee appointed to represent the interests of bondholders in a debt issuance, responsible for enforcing the terms of the indenture. (U.S. Bank N.A. acts as the indenture trustee for the notes issued by the trust.)

Securitization

The process of pooling various types of contractual debt, such as mortgages, auto loans, or credit card debt, and selling their related cash flows to third-party investors as securities. (The Toyota Auto Receivables 2025-B Owner Trust is a securitization entity that pools auto loan receivables.)

Servicer

An entity responsible for managing the collection of payments, customer service, and other administrative tasks related to the underlying assets in a securitization. (Toyota Motor Credit Corporation (TMCC) is the servicer for the auto loan receivables in this trust.)

Asset Representations Reviewer

An independent third party that reviews the underlying assets of a securitization to determine if they meet the representations and warranties made in the transaction documents. (Clayton Fixed Income Services LLC is the asset representations reviewer for this trust.)

Year-Over-Year Comparison

This 10-K filing for the Toyota Auto Receivables 2025-B Owner Trust does not provide comparative financial data from a prior year's 10-K within the provided text. The filing focuses on the current fiscal year ended December 31, 2025, and references key agreements dated April 30, 2025. Therefore, a direct comparison of revenue growth, margin changes, or new risks relative to a previous filing cannot be made based on this excerpt.

Filing Documents

• form10k.htm (10-K) — 63KB
• exhibit31-1.htm (EX-31.1) — 8KB
• exhibit33-1.htm (EX-33.1) — 84KB
• exhibit33-2.htm (EX-33.2) — 63KB
• exhibit34-1.htm (EX-34.1) — 8KB
• exhibit34-2.htm (EX-34.2) — 5KB
• exhibit35-1.htm (EX-35.1) — 3KB
• logo_ey.jpg (GRAPHIC) — 6KB
• logo_pwc.jpg (GRAPHIC) — 4KB
• 0000929638-26-001137.txt ( ) — 249KB

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments. None.

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. Not applicable. The following substitute information is provided in accordance with General Instruction J to Form 10-K:

(b) of Regulation AB. Significant Obligors of Pool Assets

Item 1112(b) of Regulation AB. Significant Obligors of Pool Assets. No single obligor represents 10% or more of the asset pool owned by Toyota Auto Receivables 2025-B Owner Trust (the "Trust").

(b)(2) of Regulation AB. Credit Enhancement and Other Support, Except for Certain Derivatives Instruments

Item 1114(b)(2) of Regulation AB. Credit Enhancement and Other Support, Except for Certain Derivatives Instruments. No entity or group of affiliated entities provides any external credit enhancement or other support with respect to either payment on the pool assets owned by the Trust or payments on the notes (the "Notes") or the certificate (the "Certificate") issued by the Trust.

(b) of Regulation AB. Certain Derivatives Instruments

Item 1115(b) of Regulation AB. Certain Derivatives Instruments. No entity or group of affiliated entities provides any external derivative instruments to either payment on the pool assets owned by the Trust or payments on the Notes or the Certificate.

of Regulation AB. Legal Proceedings

Item 1117 of Regulation AB. Legal Proceedings. The following five paragraphs are disclosures received from U.S. Bank National Association ("U.S. Bank N.A."), which serves as the indenture trustee (the "Indenture Trustee") under the indenture for the Toyota Auto Receivables 2025-B Owner Trust transaction. U.S. Bank N.A. and other large financial institutions have been sued in their capacity as trustee or successor trustee for certain residential mortgage-backed securities ("RMBS") trusts. The complaints, primarily filed by investors or investor groups against U.S. Bank N.A. and similar institutions, allege the trustees caused losses to investors as a result of alleged failures by the sponsors, mortgage loan sellers and servicers to comply with the governing agreements for these RMBS trusts. Plaintiffs generally assert causes of action based upon the trustees' purported failures to enforce repurchase obligations of mortgage loan sellers for alleged breaches of representations and warranties, notify securityholders of purported events of default allegedly caused by breaches of servicing standards by mortgage loan servicers and abide by a heightened standard of care following alleged events of default. U.S. Bank N.A. denies liability and believes that it has performed its obligations under the RMBS trusts in good faith, that its actions were not the cause of losses to investors, that it has meritorious defenses, and it has contested and intends to continue contesting the plaintiffs' claims vigorously. However, U.S. Bank N.A. cannot assure you as to the outcome of any of the litigation, or the possible impact of these litigations on the trustee or the RMBS trusts. On March 9, 2018, a law firm purporting to represent fifteen Delaware statutory trusts (the "DSTs") that issued securities backed by student loans (the "Student Loans") filed a lawsuit in the Delaware Court of Chancery against U.S. Bank N.A. in its capacities as indenture trustee and successor special servi

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. Item 9A.

Controls and Procedures

Controls and Procedures.

Other Information

Item 9B. Other Information. Nothing to report.

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not applicable. PART III The following Items have been omitted in accordance with General Instruction J to Form 10-K: Item 10. Directors, Executive Officers and Corporate Governance. Item 11.

Executive Compensation

Executive Compensation. Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. Item 13. Certain Relationships and Related Transactions, and Director Independence. Item 14. Principal Accountant Fees and Services. The following substitute information is provided in accordance with General Instruction J to Form 10-K:

of Regulation AB. Affiliations and Certain Relationships and Related Transactions

Item 1119 of Regulation AB. Affiliations and Certain Relationships and Related Transactions. Information required by Item 1119 of Regulation AB has been omitted from this report on Form 10-K in reliance on the Instruction to Item 1119.

of Regulation AB. Compliance with Applicable Servicing Criteria

Item 1122 of Regulation AB. Compliance with Applicable Servicing Criteria. Each of TMCC and U.S. Bank N.A. (each, a "Servicing Participant") has been identified by the registrant as a party participating in the servicing function during the year ended December 31, 2025 (the "2025 Reporting Period") with respect to the pool assets owned by the Trust. Each Servicing Participant has completed a report on an assessment of compliance with the servicing criteria applicable to such Servicing Participant (each, a "Report on Assessment") as of December 31, 2025, and for the 2025 Reporting Period. In addition, each Servicing Participant has provided an attestation report (each, an "Attestation Report") by a registered public accounting firm regarding its Report on Assessment. Each Report on Assessment and Attestation Report is attached as an exhibit to this Form 10-K. Neither the Report on Assessment nor the Attestation Report for TMCC has identified any material instance of noncompliance with the servicing criteria described in such Report on Assessment as being applicable to TMCC. Neither the Report on Assessment nor the Attestation Report for U.S. Bank N.A. has identified any material instance of noncompliance with the servicing criteria described in such Report on Assessment as being applicable to U.S. Bank N.A.

of Regulation AB. Servicer Compliance Statement

Item 1123 of Regulation AB. Servicer Compliance Statement. TMCC has been identified by the registrant as a servicer during the 2025 Reporting Period with respect to the pool assets owned by the Trust. TMCC has provided a statement of compliance for the 2025 Reporting Period, signed by an authorized officer, and such compliance statement is attached as an exhibit to this Form 10-K. PART IV

Exhibit and Financial Statement Schedules

Item 15. Exhibit and Financial Statement Schedules. (a) The following documents are filed as part of this report: (1) Not applicable. (2) Not applicable. (3) See Item 15(b) below. (b) Exhibits Required by Item 601 of Regulation S-K. Exhibit Number Description 3.1 Certificate of Formation of Toyota Auto Finance Receivables LLC ("TAFR LLC") (included in Exhibit 3.1 to Amendment No. 1 to Registration Statement on Form S-3 (333-159170), as filed by the registrant with the Commission on May 28, 2009, which is incorporated herein by reference). 3.2 Limited Liability Company Agreement of TAFR LLC (included in Exhibit 3.2 to Amendment No. 1 to Registration Statement on Form S-3 (333-159170), as filed by the registrant with the Commission on May 28, 2009, which is incorporated herein by reference). 4.1 Amended and Restated Trust Agreement, dated as of April 30, 2025, between TAFR LLC and Wilmington Trust, National Association, as owner trustee (included in Exhibit 4.1 to the Trust's Form 8-K, as filed with the Commission on April 30, 2025, which is incorporated herein by reference). 4.2 Indenture, dated as of April 30, 2025, between the Trust and U.S. Bank N.A., as indenture trustee (the "Indenture Trustee") and as securities intermediary (included in Exhibit 4.2 to the Trust's Form 8-K, as filed with the Commission on April 30, 2025, which is incorporated herein by reference). 4.3 Sale and Servicing Agreement, dated as of April 30, 2025, among TAFR LLC, as seller, TMCC, as servicer and sponsor, and the Trust, as issuer (included in Exhibit 4.3 to the Trust's Form 8-K, as filed with the Commission on April 30, 2025, which is incorporated herein by reference). 4.4 Receivables Purchase Agreement, dated as of April 30, 2025, between TAFR LLC, as purchaser, and TMCC, as seller (included in Exhibit 4.4 to the Trust's Form 8-K, as filed with the Commission on April 30, 2025, which is incorporated herein by reference). 4.5 Administration

SIGNATURES

SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Toyota Auto Finance Receivables LLC (Depositor) Date: March 24, 2026 By: /s/ Tellis Bethel Tellis Bethel Treasurer & Chief Financial Officer (Senior officer in charge of securitization of the depositor) SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO SECTION 15(d) OF THE ACT BY REGISTRANTS WHICH HAVE NOT REGISTERED SECURITIES PURSUANT TO SECTION 12 OF THE ACT No annual report to security holders, proxy statement, form of proxy or other proxy soliciting material has been sent to security holders or is anticipated to be furnished to security holders subsequent to the filing of this annual report on Form 10-K.

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