Revised Loan Credit Status Codes

Yes they are tradeable by default during the first 60 days unless there is a monitoring event and/or lender vote when the loan would suspended due to information that we have received and/or a vote is in progress.

Interest continues to accrue as per the terms of the loan.

It would depend on the circumstances and timing.  If it were an earlier payment in the loan then I'd expect interest to continue to accrue.  If the borrower was fully up to date on principal repayments and the loan was paid off but an interest payment was still outstanding then interest doesn't accrue on that interest.  So I can't give a definitive "yes" even if that's usually the case, I have to say "it depends".

Reasons fo loans entering monitoring status are listed as follows:

The loan is up to a maximum of 60 days past due and/or up to two payments in arrears (including part-payments), or;
There has been a covenant breach or;
 There has been breach of a term / condition e.g. late submission of monthly business accounts
.

In the case of any Development Loan, where notification / information received around cost over-runs / delays / construction issues / build schedule that may give cause for concern around the ability of the Borrower to perform in line with the loan agreement.


One missed payment (including part-payments).


Breach of loan covenant.



Breach condition subsequent.



Duration of the period where lenders have accepted an amendment to the loan within term plus a 2-month period after expiry of amendment if applicable.



Any extension to a loan where the Borrower proposes an increased interest rate and extension is formally documented i.e lenders are getting something extra for the forbearance – other lenders, therefore, may wish to buy units for the potential benefit.



Any material news that falls outside of the reasons resulting in a Credit Event Suspended i.e. doesn’t directly affect the terms or repayment of a particular loan.



For example: Insolvency of a company connected to a Borrower (by common Directorship, principals) but not connected by way of security.



Reasons for suspending a loan in Monitoring would be as follows :

When Assetz receives information that may lead to a lender vote and during the duration of the vote.



(The subsequent status will be dependent on the result of such vote)


I hope this helps.