The goal of the general partnership is to make money. The partnership
will loan money to borrowers and will receive a monthly loan payment.
Each loan is secured by collateral in the form of financial instruments
that will be hedged, traded, or collared to ensure that the collateral
is available upon repayment of the loan. If the borrower breaches the
terms of the loan, the collateral is sold and the proceeds are
disbursed equally to the members of the partnership.
The following lists ways the partnership will generate revenue:
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The partnership receives interest on money loaned to borrowers.
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The partnership generates revenue by hedging or trading collateral.
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The partnership profits from the sale of collateral if borrower defaults.
Members
of the partnership will have the option to exit the partnership and
receive a full refund of their initial contribution. Members who choose
to exit the partnership will forfit any proft or gains realized by the
partnership. |
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