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296
May 2, 2018 15:46:37 GMT
Post by crabbyoldgit on May 2, 2018 15:46:37 GMT
Promises promises, no action, enough, voted A. Call in the recievers.
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cb25
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296
May 2, 2018 15:56:35 GMT
Post by cb25 on May 2, 2018 15:56:35 GMT
Promises promises, no action, enough, voted A. Call in the recievers. Do you understand the last sentence below (for Option A): "Voting for this option also commits lenders to accept any recommendations by the Receivers, including sales, without conducting a further lender vote. This is due to rejection of such recommendations could lead to all lenders involved in this loan being deemed mortgagee-in-possession and liable for the properties including costs and legal challenges"
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296
May 2, 2018 16:08:11 GMT
Post by nickdavies on May 2, 2018 16:08:11 GMT
Is that a normal legality when this happens, or is it peculiar to this case?
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Post by crabbyoldgit on May 2, 2018 16:27:17 GMT
Normal ,well it's the wording i have seen on every vote of this type. Understand what it says but to be honest I have no practice knowledge of its consequences in various outcomes in the real world. However unless we accept these terms we can never vote to call in a loan and what would borrowers do then!
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cb25
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296
May 2, 2018 16:28:40 GMT
dc848 likes this
Post by cb25 on May 2, 2018 16:28:40 GMT
I've opened a Q&A to AC asking them to explain the wording to thickos like me.
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296
May 2, 2018 17:15:08 GMT
cb25 likes this
Post by Ton ⓉⓞⓃ on May 2, 2018 17:15:08 GMT
I've opened a Q&A to AC asking them to explain the wording to thickos like me. AC are not licenced for resi mortages which is what they might be deemed to become if we voted against an option that the Receiver might put to us in a vote.
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jlend
Member of DD Central
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296
May 2, 2018 17:28:17 GMT
Post by jlend on May 2, 2018 17:28:17 GMT
I must admit I do get confused.
So on Moneything, Moneything discussed the various options around the Prestbury loan with the administrator and agreed the best way forward. Albeit lenders didn't get to vote, but MT did have a say in the matter by the sound of things.
With AC, it sounds like both AC and lenders don't get a say in this loan going forward if vote A is passed. Is that how it works?
I am not in this loan, just curious how these things work.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on May 2, 2018 17:52:59 GMT
The reason is that if the recommendation was put to a vote and rejected it is highly likely the receiver would resign with potentially detrimental effect on recovery. This happened before and AC had to introduce this clause. AC will still have input.
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cb25
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Post by cb25 on May 3, 2018 12:40:04 GMT
here are the questions I put on AC's Q&A for this loan, together with AC's responses
i) if the properties are sold and there is a shortfall, would use of the Provision Fund be ruled out as lenders had voted for an option that made this possible ?
A: Should lenders vote for Option A this would not rule out the Provision Fund covering any capital loss however payment from the Provision Fund is discretionary and wouldn’t cover manual investors in this loan.
ii) could you explain what "This is due to rejection of such recommendations could lead to all lenders involved in this loan being deemed mortgagee-in-possession and liable for the properties including costs and legal challenges" means for Lenders
A: Being deemed as mortgagee-in-possession puts the mortgagee as the manager of the property which brings with it a duty of care and responsibility for the property as well as ongoing costs and potential legal liabilities. To avoid lenders being put in this position, Receivers are appointed who make recommendations with regard to the strategy of the property. If the Receivers make a recommendation that is rejected, there is the danger of a lender (or in the peer-to-peer sphere, lenders) being deemed mortgagee-in-possession hence this being included in the lender vote.
(I voted A btw)
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