We may offer tranched loans. It means that a loan that is secured by a first or a second legal charge over a property(ies) (along with any other loan security), may be offered in two separate tranches to lenders on the lending platform: (1) a senior (tranche) loan and (2) a junior (tranche) loan.

The senior loan will have a lower loan-to-value (LTV) ratio and interest rate payable to lenders than the junior loan. The senior loan could therefore be considered to be less risky than the junior loan.

Further, the loan repayment priorities between the two tranches are as follows (which you unconditionally agree to when making loan investment(s) into either or both tranches): Following the full settlement of the Security Agent’s fees (if any) and as set out in Clause 11.5, all monies received shall first be applied towards discharge of the senior loan principal balance and, second, once the senior loan’s principal balance has been discharged in full, towards discharge of the junior loan’s principal balance. The remaining balance, if any, shall be applied towards the repayment of all accrued and unpaid interest due to the senior loan and second, once all accrued and unpaid interest due to the senior loan has been repaid in full, towards all accrued and unpaid interest due to the junior loan.