Patch of Land Offerings v 2.0
Patch of Land has devoted significant time and resources over the past two months to do a complete review and restructuring of legal documents for both borrowers and investors. This includes the restructuring of our notes so that they are directly secured. There are a number of ways to achieve this goal, and we are creating a corporate and note structure to be rolled out in coming months that we feel will give investors greater confidence in their investment.
Patch of Land is creating a new series limited liability company structure that will be a special purpose vehicle (“SPV”) designed to be bankruptcy remote. Additionally, we contemplate that there will be certain provisions in the governing documentation of the SPV to decrease the likelihood of the SPV becoming a bankruptcy debtor. Note that despite these provisions designed to promote bankruptcy remoteness, recent case law has taught us that there can be no assurance that any SPV will be bankruptcy-proof. Patch of Land is committed to instilling the maximum about of protection for our investors and ensuring that the company has the proper control mechanisms. The point here is that, while structured to be bankruptcy remote, other factors such as corporate governance may not necessarily ensure that the SPV is bankruptcy proof.
Possible risks are outlined in our new Private Placement Memorandum, which we anticipate will debut before the end of the year. We are excited to unveil this new note structure soon.
Please stay tuned for Part 3 of this series, and as always we'd love to hear your thoughts so please leave a comment and tell us what you think.
