Property Loan 20 - Repaid in full after Default

This is a loan under the old terms and conditions, the primary debtor is Lendy but the wording is ambiguous saying something like you cannot sue Lendy Ltd until the security is realised, but fails to address whether Lendy Ltd is responsible for any shortfall in capital and/or interest once that has occurred.  Might be a lawyers field day if there is a shortfall large enough for someone to make an issue of it.

IMO if Lendy are on the hook use of the provision fund for what is effectively their loss is an egregious misuse and conflict of interest with the directors of Lendy being the same people as the directors of the provision fund.

But at least they'd be able to make the claim "Not a penny of interest ever lost"

Yes interest was paid in full, although it was SS paying the interest every month, so it wasn't accruing.  The asset covered the debt when it was sold and PBL20 is likely to have a shortfall, so differing situations as well. 

If I recall correctly, savingstream changed the rules on paying interest on defaulted loans just before PBL020 defaulted.

That was lucky wasn't it 

Again something that anyone with enough money at stake might care to test in court.

If you did you would probably be one of the very few people in the world who understood it, including SS themselves

As I see it the PF is paid for by the borrower using funds provided by you the lender, i.e. deducted from the advance at the start of the loan, although no-one outside of SS actually knows the mechanics of it.  As the web site maintains it is always 2% of the outstanding loan book one would assume 2% of any repaid loan is withdrawn from the PF and goes into the SS coffers, subject to the same caveat about no-one really knowing.  If this is actually the case then the PF is actually deferred fees of SS.