Funds received from lending companies during the recovery process are distributed according to part III, section 6.2 of the Terms and Conditions of Mintos in the following order:
1. Fees to Mintos
The first priority is covering any outstanding fees that the Lending Company owes to Mintos, as per the agreements between Mintos and the Lending Company.
2. Commission Fee for Servicing Claims
If Mintos or a third party has taken over the servicing of the Claims—either due to a default event or in an effort to recover funds for Investors—then a commission fee is deducted.
3. Reimbursement of Costs
Any reasonable costs that Mintos incurs in relation to servicing or recovering Claims are reimbursed next.
4. Payments to Investors
Funds are then allocated to Investors, covering:
- Borrower payments, such as principal, interest, late interest, or penalties, following the order set for each Claim.
- Repurchase prices.
- Buyback prices (unless re-prioritized, see next point).
Payments are processed from the oldest to the newest due.
5. Adjustment of Buyback Payments
If the Lending Company delays payments to Mintos for 14 days or another significant period, Mintos may decide to prioritize other payments (such as Borrower payments and repurchase prices) before settling buyback prices.
6. Late Interest on Overdue Payments
Pending payment interest (as published on the Mintos platform) that is owed by the Lending Company to Investors is then settled.
7. Late Interest or Penalty Fees to Mintos
Lastly, any late interest or penalty fees that the Lending Company owes to Mintos are covered.
If due to requirements of law we would be required to apply a different order, we will do so.