Loss Reserve – Designed to add further protection for investors against borrowers late payments or defaults on an ongoing basis.
The money in the Loss Reserve comes from additional charges to the borrowers. For the Income Trust each month Thinktank will allocate 0.15% per annum of the total outstanding principal amount of all loans in this Trust, with a maximum of 1% of the total outstanding principal in the Income Trust.
For the High Yield Trust Thinktank will allocate 0.30% per annum, each month, of the total outstanding principal amount of all loans in the Trust. The maximum Loss Reserve held for the High Yield Trust is equal to 2% of the total outstanding loans in the Trust. For more information please review the Information Memorandum.