LENDFORM BLOCKCHAIN LLC
LendForm Blockchain LLC is an entity, wholly owned and managed by PAF, that may purchase seasoned loans from the consumer-facing finance companies that are borrowing clients of PAIF2. It may also purchase seasoned loans from other, unrelated originators in the discretion of PAF.
LendForm Blockchain LLC will issue Payment Dependent Notes (PDN’s) that will allow sophisticated investors the opportunity to purchase PDNs backed by specific tranches of seasoned loans purchased from the consumer-facing finance companies.
In order to prevent concentration of investor risk, any one investor and its affiliates may purchase no more than 25% of the PDNs backed by a particular tranche of loans.
Investors who want to purchase PDN’s must also invest into PAIF2 an amount equal to at least 2% of the total anticipated annual loan origination volume purchased by LendForm Blockchain LLC. An investor in PAIF2 limited partnership interests is not required to purchase PDNs issued by LendForm Blockchain LLC, however, it may do so if it so desires and otherwise meets the applicable qualification standards.