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Lender: |
First National Acceptance of North America, LC ("Lender") |
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Borrower: |
Qualified Land Developers |
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Size of Line: |
$100,000 - $2,000,000 (first year) |
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Collateral: |
Real estate notes; with payments being made by the land puchaser |
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Term: |
One year revolving line of credit with interest-only payments (principal
remains outstanding and is paid down as the Borrower determines or as the Advance Rate
formula requires) |
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Rate of Interest: |
Variable (see Appendix A); rates are fixed for a one-year period and will
adjust with movements in the prime rate at each renewal date |
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Advance Rate: |
Approximately 50 to 70% of balance due (See Schedule B); 0% of note if
underlying obligors are more than 120 days delinquent |
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Maximum Size: |
$75,000 per note; no more than 30% of line in any one transaction |
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Term-Out: |
If loan is not renewed and is not in default, then the remaining balance
on line is fully amortized (instead of being interest only) as follows: 36 months
amortizing (P/I) at the then-effective weighted average rate, interest is adjustable every
quarter (prime +3.75%), with a floor of 12%; new P/I established with every rate change |
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Guarantor: |
Principal's personal guarantee |
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Right of Refusal: |
Lender has three days to match written offers for notes being sold out of
portfolio |
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Fees:
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The following fees and expenses apply:
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3% to 5% origination fee based on the maximum size of the
line; this fee can be set up on the line and amortized throughout the 12 months and
serviced like the rest of the line |
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1% renewal fee charged each year based on the maximum size of
the line |
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$100 set up fee to add a note to the collateral pool and $100
for the release of each note from the collateral pool |
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$6 per payment servicing fee; we provide daily payment
transaction data via the web and send out monthly statements to the obligors on your
notes; Borrower maintains client contact for collections, and yield-enhancing note
modifications |
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Advantages Definitions and Terms Guarantee LandLine Schedule
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