Legal structure of new Notes?
I was surprised to see that loan originators just stop the transfer of borrower repayments when the originator company gets into financial trouble, even in the direct investment structure.
It was supposed to be a direct claim to the borrower. If the originator company cannot fulfill the buyback it is to be expected because this is a claim against the originator, but the repayments from the borrowers should not be allowed to be used for company funds of the loan originator in case of trouble in the company.
Because of this I would appreciate if you @... could explain in detail the legal structure of the new notes after the license is granted. Are they closer to the direct structure or the indirect structure? And are they better at protecting the investors rights than the current solution with the assignment agreements?
P.S. I have read the blog post related to the new Mintos notes but I need some further explanations if possible.
Notes set up transaction overview and applicable risks description (including items which you have addressed) will be available to investors in Notes issue prospectus and enclosed into the content of the mintos.com. Currently, we are finalizing the last points internally and with the Latvian regulator, so very soon we will post a relevant update on the IF license developments and a new setup in our blog. Stay tuned.0
It would be about time to explain the new notes setup. I received quite some e-mails regarding actions i have to take, but the information that is relevant for me is quite shallow. Last year there were a blog post regarding the note structures. it would be welcome to update that and inform us once again about the new setup. It also seems quite hard to find information about the prospectus, i a have searched for it on mintos.com but have not yet found it. @... Mintos Marketing
ps. Just a tip for the future; I have had a email that says I have 30 days to review the new terms and conditions. It would have been appropriate that the referred blog post about notes would be available beforehand.0
Hi Joshua, Dennis, please see the latest blog post here https://www.mintos.com/blog/coming-soon-notes-on-mintos/ and our discussion in the Community about Notes, we will answer all the questions regarding Notes here https://help.mintos.com/hc/en-us/community/posts/4406855945617-Notes-FAQ0
In the resent Mintos AMA it was mentioned that you are working on implementing a escrow/trust structure for more LOs and a pledge on assets.
I hope this is gonna be implemented for most LOs. It seems LOs being able to just stop forwarding borrower repayments was the weak point in the current legal setup.0
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