Ann: Operational and Commercial Update, page-32

Which is what I said originally. They could have used alternative terms that prevent additional accumulated debt and only permit lower ranking security. This would protect them but still allow TBA to pay the loan with new finance. For example, TBA may make half the repayment with GAM proceeds and find new funding on much better terms to pay out the other half of the loan by the due date.
If you are purely interested in receiving your principal and interest repayment, receiving it through new debt would be preferable to having to recoup the money through asset sales following default.
I'm fairly certain that this is the approach that your car financer takes when it lends you 10k. There is nothing stopping you taking out a new loan using the car as collateral to pay out the existing loan.

However, if you thought receiving the assets provided a superior outcome to repayment, then you may be happy to place more restrictive terms and limit the borrower's ability to repay the loan.