Defaults and Enforcements

Default Loan Management Process

Depending on the type of deal, PropertyShares has a number of defaults and enforcement policies in place to respond in the event of default. Example overviews can be seen below:

  • 0 - 30 Days

    Engage with Borrower / Sponsor to require remediation of default

    Responsible Person

    In-House Legal Counsel

  • 0 - 60 Days

    Assess whether Borrower / Sponsor’s remediation actions adequately remedy default and if further action is required to secure against further defaults.

    Responsible Person

    Credit Team

  • 60 Days

    If default is not adequately remedied, issue default notice with requirement to pay out loan and prepare plan of action for event of loan not being paid out.

    Advise unit holders of default and proposed plan of action.

    Responsible Person

    In-House Legal Counsel

  • 90 Days

    If no payment or contact from Borrower / Sponsor take action in accordance with action plan including without limitation:

    • appointment of external lawyers;
    • commencement of legal proceedings;
    • appointment of receiver; and or
    • take possession of property;

    Responsible Person

    In-House Legal Counsel

  • Monthly

    After the commencement of formal action, a monthly update is provided to unit holders.

    Responsible Person

    In-House Legal Counsel

  • 0 - 30 Days

    Engage with Borrower / Sponsor to require remediation of default

    Responsible Person

    In-House Legal Counsel

  • 0 - 60 Days

    Assess whether:

    • Borrower / Sponsor’s remediation actions adequately remedy default and if further action is required to secure against further defaults;
    • The default is caused by the Borrower / Sponsor or Builder;
    • The Lender should look to exercise step rights pursuant to the tripartite agreement and costs of doing such.

    Responsible Person

    Credit Team

  • 60 Days

    Advise unit holders of default and proposed plan of action.

    Responsible Person

    In-House Legal Counsel

  • 90 Days

    If adequate remediation of the default is not provided by the Borrower / Sponsor take action in accordance with action plan including without limitation:

    • appointment of external lawyers;
    • commencement of legal proceedings;
    • appointment of receiver;
    • appointment of project manager / builder to complete works; and or
    • take possession of property;

    Responsible Person

    In-House Legal Counsel

  • Monthly

    After the commencement of formal action, a monthly update is provided to unit holders.

    Responsible Person

    In-House Legal Counsel

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