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Nick H
Nick H, Solicitor
Category: UK Law
Satisfied Customers: 62
Experience:  Ten year qualified Solicitor
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A Developer seeks a number of large loans in the form of

Customer Question

A Developer seeks a number of large loans in the form of loan notes that pay interest at 6 monthly periods or at annual compound rates on better terms depending on the 2 or 4 years when they will be repaid. Even better interest rates are offered on those repaid on the 4 year compound. The various residential units that have been converted and furnished into flats and apartments and lettings to provide the interest to the investors of the loans and further funds for get the commercial ground floor value development and necessary bank loans. The trustee the developer uses holds the first and only legal on behalf of the investors so do they then have complete security in the case that the developer fails to repay the interest and premium?
JA: Since laws vary from place to place, what state is this in?
Customer: UK
JA: What action has been taken so far? What's your ideal outcome?
Customer: Well as an investor I would hope the cash invested is returned at the end of the agreed number of years including the interest that was due after say the four years
JA: Anything else you want the lawyer to know before I connect you?
Customer: Not really thank you. I have not madw the inveatment so far but the agent says the trustee is a well known one based in Ediburgh Scotland and they hold the rights for the investors and issue the loan notes and it should be as secure as possible
Submitted: 2 months ago.
Category: UK Law
Expert:  Nick H replied 2 months ago.

Hello - this is probably a Scots Law issue, however there are many 'Trustees' that proclaim that they are secure.

Until they fail and the investment money is gone. I would research your trustee and look to see if government will

aid you if it all fails. Caution first!