The Buyback Obligation is a contractual obligation of the relevant Loan Originator. If a payment is delayed for more than 60 calendar days, the Loan Originator is obliged to repurchase the investment together with all accrued interest in accordance with the Investment Agreement. Interest continues to accrue during the 60-day overdue period. The Buyback process is automatic and no action is required from the investor. The Buyback Obligation is not a deposit guarantee or state-backed compensation scheme and depends on the Loan Originator’s ability to meet its contractual obligations.
What is the Buyback Obligation?
In case the payments are delayed for more than 60 calendar days, the Loan Originator is obliged to redeem the investment with all accrued interest in accordance with the Investment Agreement.
During the 60-day Buyback period, the interest is calculated under the same conditions as the loan period. When the loan is bought back, these earnings are credited to your balance along with the principal and the interest earned for the all period.
