California Offering Circular for Fractional Loan

Use this downloadable template to create a Loan Servicing and Tenancy in Common Agreement as part of an offering of fractional undivided interests in a promissory note, secured by a first mortgage.

• The agreement is between the investors (lenders) and a loan servicer who has arranged the loan between the lenders and the borrower.
• The servicer is acting as agent for the investors with respect to the promissory note, and no other relationship exists between the parties.
• The borrower will make all payments on the note to the servicer.
• The servicer will provide each lender with monthly statements and with the appropriate tax forms at the end of each year.
• The servicing fees will be paid monthly and will be calculated as a percentage of the principal balance outstanding at that date.
• If a foreclosure of the property is necessary and the servicer is required to manage the property, an additional property management fee will be charged.
• The servicer has the right to hold back a reserve sufficient to pay two months interest payments.
• If an investor fails to pay its pro rata share of any assessment within 10 days of request, that investor's right to receive principal and interest payments will be subordinated to the rights of all investors who have paid their share.
• This is a comprehensive legal form that you can tailor to your specific requirements.
• Intended to be used only in the State of California.

The Investor Subscription Agreement with Rescission Notice should be given to each party interested in purchasing shares of stock in a U.S. corporation as part of a private placement.

• The Subscription Agreement must be signed by an investor who wants to purchase shares under the offering, and sent to the corporation with the investor's payment for the shares.
• Once accepted by the issuing corporation, the subscription becomes irrevocable.
• The subscriber acknowledges that he/she has sufficient means to be able to bear any financial risks of the investment.
• The subscriber also acknowledges having examined the corporation's documents and has determined that the shares are a suitable investment.
• This template includes a Notice of Rescission, which the investor can use to withdraw from the offering within 72 hours after submitting the subscription.

Download the Investor Subscription Agreement with Rescission Notice by first purchasing the document, then clicking on the Download button.