am
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Post by am on Apr 1, 2015 10:59:35 GMT
"3.2 If the Loan is not repaid in full on its contractual repayment date, interest shall continue to accrue on the Loan at the agreed interest rate and be immediately due and payable as it accrues."
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len
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Post by len on Apr 1, 2015 13:15:26 GMT
It is a new set of conditions. You'll see that it actually protects us slightly more.
Len
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blender
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Post by blender on Apr 1, 2015 13:29:30 GMT
It's not in bold and so I think that means it is pre-existing. Has it not applied since loans were taken which were not amortised over the term of the loan? Surely FC would not seek to arbitrarily and unilaterally alter the contracts between lenders and borrowers retroactively? No, Never. Otherwise a property developer half way through a development may find, by a knock on the door, that he is required to give up his youngest daughter (or son if you wish) as hostage for surety against the future return of the funds on the due date. The hostages could do account reconciliations or learn to code.
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baldpate
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Post by baldpate on Apr 1, 2015 13:50:36 GMT
Hostage taking - excellent idea, blender! On that theme, for some defaulters I would be happy to see the restoration of Debtors Prison and the Pillory.
EDIT: afterthought - is hostage taking the ultimate form of Personal Guarantee ?
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adrianc
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Post by adrianc on Apr 1, 2015 16:18:12 GMT
It rather depends on how attached you are to the offsprogs in question. I rather suspect that, given a choice, your average property developer would choose the money.
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am
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Post by am on Apr 1, 2015 16:45:21 GMT
The reason I ask is that I unintentionally acquired a loan on the secondary market (I'd set up autobid to catch really early A+/A grade closers) which repaid late, but I didn't get any additional interest. (I haven't done the calculations to exclude the possibility that is was rounded down to £0.00.) So I was wondering how old this part of the terms was.
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blender
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Post by blender on Apr 1, 2015 17:26:02 GMT
The reason I ask is that I unintentionally acquired a loan on the secondary market (I'd set up autobid to catch really early A+/A grade closers) which repaid late, but I didn't get any additional interest. (I haven't done the calculations to exclude the possibility that is was rounded down to £0.00.) So I was wondering how old this part of the terms was. I see. This does not relate to late repayments during the term of a normal business loan, where you get no extra interest, but to loans such as the interest only property loans, where the principal is all paid at the end of the term, or sooner. Or the commercial mortgages. (FC are always changing the T&C's to apply retroactively to existing loan contracts - I do not know when this change was made but I think not this time).
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Post by GSV3MIaC on Apr 1, 2015 21:07:57 GMT
Yep, that is my understanding too. Asking the abacus to recalculate all the loan part values to take account of the interest on the bit which was not repaid until X days after it should have been would surely result in complete collapse.
I'd still like to see property / bullet loans have an AC type agreement where the interest rate hikes up by 50% for some overrun period (after which the cleaners are called in).
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blender
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Post by blender on Apr 1, 2015 22:17:04 GMT
Yes we know that they could not do it. If the complete schedule of monthly payments for every loan part - principal, interest and fees - is calculated up front and just applied each month then there is no way that this could be varied to take account of a late payment. It's the repayment, the whole repayment and nothing but the repayment.
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