Terms & Conditions - Proseed Development Loan Bonds

Development Loan Bond - Terms & Conditions

1. You acknowledge and agree that your investment in this London House Exchange Development Loan (your “Investment”) will be via bonds issued by London House Exchange’s lending partner, Proseed Basildon Limited (“Proseed”).
2. For the purposes of your Investment in a Development Loan, you will be deemed a bondholder (“Bondholder”) and referred to as such under applicable investment documentation.
3. The developer to which this Development Loan relates is London Green (Basildon) Limited (“Developer”).
4. You hereby acknowledge and authorise London House Exchange, and appoint London House Exchange on your behalf, as your agent, to engage with Proseed and any other applicable third parties in relation to the administration of your Investment and to make decisions relating to your Investment in common with all Bondholders.
5. London House Exchange hereby agrees to act, at all times, in the best interests of the Bondholders in relation to their Investments.
6. The bonds to which your Investment relates are secured. A security trustee has been appointed to hold the benefit of the rights and interests created by the Bondholders’ security on trust for the Bondholders. Your security package includes an indirect legal charge over the development site. Your recourse in relation to the Development Loan is against Proseed, and indirectly, the Developer.
7. The Developer has granted security to Proseed. If the Developer fails to repay its loan, Proseed will seek to recover any outstanding amounts by enforcing its security. The security trustee will in turn enforce the Bondholders’ security over Proseed (such security includes the underlying loan with the Developer).
8. You understand that your security is subordinated. A senior lender has a first priority charge over the development site. In the event that security is enforced against the Developer, you acknowledge that the senior lender will take priority in relation to any outstanding amounts recovered from the Developer.
9. When you invest, you are committing to your Investment for the duration of the term of the loan to which your Investment relates. The Development Loan may be repaid early, on time or late and the duration of your Investment will reflect the underlying timing of repayment of the loan by the Developer.
10. You acknowledge that you will not be able to withdraw your Investment before the Developer repays its loan.
11. You acknowledge that you will not be able to sell your bonds on our Exchange.
12. Your Investment may be paid to you earlier than you had expected if the Developer repays the loan early.
13. It is your responsibility to keep your financial circumstances, objectives and appetite for risk under review and to ensure that the Investment meets your investment needs.
14. You confirm that you have read and understood London House Exchange’s Development Loan Key Risks.
15. Neither London House Exchange nor Proseed are responsible for the tax consequences of a client’s participation in the investment.
16. Any payments that you are entitled to receive in respect of your Investment will be made from funds received by London House Exchange from Proseed as a result of payments made by the Developer under the terms of the Developer loan. London House Exchange will manage the distribution of these funds to Bondholders.
17. Proseed may, in certain circumstances, agree with the Developer to extend the expiry date of the Developer loan. London House Exchange will notify the Bondholders of any extension to the term of the Developer loan.
18. You agree not to contact or otherwise approach the Developer in relation to the Development Loan, your bonds or otherwise.
19. You acknowledge and agree that London House Exchange will share your name with Proseed in their role as a data processor in connection with the performance by Proseed of the issuing of the Bonds and the servicing of their obligations in relation to your Investment.

Read Key Risks document here

General Terms:

1. You must, if you haven’t already, complete our customer registration process suitability requirements so as to qualify as a person to whom our forms of investment are appropriate.
2. Under applicable money laundering regulations, London House Exchange is required to check the identity of its clients. The client acknowledges and agrees that London House Exchange may undertake an electronic search for the purposes of verifying a client’s identity.
3. We reserve the right to suspend an investment at any time if we believe there may be fraud, money laundering or any other illegal activity connected with the relevant account or an issue with the legality of promotions in the jurisdiction in which the customer is based.
4. If any provision of these terms, or any part of a provision of these terms, is found to be illegal, invalid or unenforceable the remaining provisions, or the remainder of the provision concerned, shall continue in effect.
5. A failure or delay in enforcing compliance with any term of these terms shall not be a waiver of that or any other term of these terms.
6. Customer data shall be collected, stored and processed in accordance with our Privacy Policy.
7. We reserve the right to amend/vary these terms from time to time. Your continued use of this service shall constitute your acceptance of any such amendments or variation to these terms.
8. The laws of England shall govern these terms and the parties submit to the exclusive jurisdiction of the Courts of England & Wales.

IMPORTANT

Capital at risk.​ The value of your investment can go down as well as up. The Financial Services Compensation Scheme (FSCS) protects the cash held in your London House Exchange account, however, the investments that you make through London House Exchange are not protected by the FSCS in the event that you do not receive back the amount that you have invested. Past performance is not a reliable indicator of future performance. Interest and capital returned may be lower than expected. London House Exchange does not provide tax or investment advice and any general information is provided to help you make your own informed decisions. Customers are advised to obtain appropriate tax or investment advice where necessary. Please read Key Risks before investing.

Financial promotion by London House Exchange Limited (No. 8820870); authorised and regulated by the Financial Conduct Authority (No. 613499).

By making an investment you confirm that you have read the Key Risks and agree to our Terms & Conditions. As with all investments there are risks. It’s important to understand the specific risks of development loan investments.