How does your collective feel about good-faith loans toward this deposit?
Yet to be determined by consensus. Some folks are strongly opposed to loans, while others feel small or good-faith loans (interest-free, no set timeline to pay back by though concerted effort made to pay back over time) are acceptable.
- The priority for fundraising at this point should be donations and contributions from memeber collectives
- The terms of any loan must be consented on by the collectives. If loans require payments to be made then an opperating agreement must be in place to clearly describe how money will flow through the collectives and back to creditors.
Provisional Loan language (Unsecured Promissary Note)
- Any loan and its terms must be agreed to by all collectives.
- The following document contains the language we would use to contractually represent the loan.
- The main aspects are:
- A 2-year, no-interest, unsecured loan (the prospective duration of the lease)
- after 2 years, an interest rate of 6% levied on any amount unpaid. This aspect is up to us - we can set it to whatever we want - lawyers have advised us that this aspect is normally written into these documents in order to provide an obvious motivation for the borrower to pay the loan back.
UNSECURED PROMISSORY NOTE