The sole activities of the SPV relate to issuing Loan Notes to investing Members; making a Loan to an End Borrower; receiving interest and capital repayments on the Loan and paying the amount received to you, the Loan Note Holders. The SPV is obliged to pay 100% of such receipts to the Loan Note Holders, less, if applicable, any recovery costs.  

You should note that the SPV is not obliged to pay more to the Loan Note Holders than it receives after recovery expenses from the End Borrower. It is therefore improbable that it will default. Should it default, Loan Note Holders can exercise their rights under the terms of the debenture over the SPV’s assets, which include the Loan to the End Borrower.
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