Implementation Contract

Loan Agreement: Key Components

This Gitbook section presents the main elements of a Loan Agreement, designed to manage the life cycle of loans effectively, support OTC loan sales, facilitate repayments, and adjust collateral, all while minimizing default risk via a mutual fund agreement.

1. Ownership 📝

Establishes loan ownership transfer conditions, enabling OTC trading and defining party rights.

2. Refinance 🔁

Allows loan restructuring based on market changes, providing new rates or terms, and reducing liquidation risk.

3. Settlement ⚖️

Outlines loan settlement, payment schedules, and interest, addressing potential liquidations.

4. Liquidation 🚫

Details collateral liquidation conditions and process, including fees and costs.