Products tagged with 'fractional ownership of promissory note'

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California Offering Circular for Fractional Loan

The promissory note is secured by either a first mortgage or by other promissory notes secured by other collateral.
The circular should be provided to any potential investors who may want to purchase interests.
The document describes the fractional interests, the particulars of the loan and the loan servicing.
The compensation being paid to the loan servicer and affiliates is disclosed, as are any conflicts of interest.
The issuer must disclose any risks, ERISA and federal tax considerations with respect to the investment.
Available in MS Word format.
Intended to be used only in the State of California.

$35.00

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.

$29.99