What happens if a Loan goes into default?

If a Loan goes into default, we increase our level of management of the Loan and Mortgage and take steps to have the Borrower rectify the default.  If the default results in a loss or is considered by us as being likely to realise a potential loss on realisation, that loss or potential loss of capital is shared by all investors in the Pooled Option sub-scheme. We also report quarterly on this website in respect of the level of loans in default by more than 30 days. For more information regarding the impact of a loss on your investment please refer to the PDS (Section 4: How do I invest in the Fund – To Invest in a Pooled Option Mortgage Investment)