Administrative Lender / Mortgage Banker

The company that structures, underwrites, coordinates, administers, and oversees the mortgage loan from origination through payoff or other resolution.

Beneficial Interest

An economic interest in a mortgage loan or participation that does not necessarily give the holder direct title to the real estate.

Community Lending Partner

BCCG’s term for an approved investor who participates in a mortgage loan through one or more Loan Participation Notes.

Confidential Mortgage Note Investment Memorandum

The detailed disclosure document describing the borrower, properties, loan structure, collateral, underwriting, risks, projected returns, and participation process.

Investment Summary

A shorter executive overview of a specific mortgage note investment opportunity.

Investor Dictionary

A comprehensive educational reference explaining the terms commonly used in BCCG mortgage note investment offerings and loan administration.

Loan Participation Note (LPN)

A document or certificate representing a fractional beneficial participation in an underlying mortgage loan rather than direct ownership of the real estate.

BCCG Example: A $747,000 loan divided into 40 equal LPNs would create 40 participations of $18,675 each.

See also: Loan Participation Agreement; Loan Participation Note Serial Number; Loan Participation Note Holder ID (LPNHID); Registry of Loan Participants.

Loan Participation Unit

Another term for a fractional share of a syndicated mortgage loan.

Master Glossary

The controlling educational glossary used across BCCG investor materials. It does not override definitions contained in transaction-specific legal documents.

Mortgage Note

The borrower’s written promise to repay money under stated terms.

Mortgage Note Investment

An investment tied to the borrower’s repayment obligations under a promissory note secured by real estate.

Mortgage Note Investment Opportunity

A specific transaction through which approved investors may participate in a mortgage loan secured by real property.

Participant

An investor accepted into a loan participation transaction.

Participation Amount

The dollar amount a participant contributes toward the underlying mortgage loan.

Participation Percentage

The participant’s funded amount divided by the total funded participation amount.

Principal

The original amount of money loaned, excluding interest, fees, and other charges.

Promissory Note

The legal document that states the principal amount, interest, payment terms, maturity date, default provisions, and repayment obligations.

Underlying Loan

The actual mortgage loan made to the borrower in which investors hold participation interests.

Administrative Agent

The party authorized to administer the loan and communicate with the borrower on behalf of participants.

Assignment of Mortgage

A legal document transferring some or all rights in a mortgage to another party.

See also: Fractional Assignment of Mortgage Agreement; Security Instrument; Registry of Loan Participants.

Certificate Number

The unique number printed on an LPN certificate and recorded in the Certificate Register.

Certificate Register

The official log showing every Loan Participation Note certificate issued, transferred, replaced, cancelled, or retired. It helps BCCG and the servicer confirm which certificates remain active.

Co-Lender

A lender that holds a direct share of a loan alongside one or more other lenders.

Dilution

A reduction in a participant’s percentage or priority because the participant did not fund an approved protective advance or other required amount.

Fractional Assignment of Mortgage

An assignment of a proportional interest in a mortgage loan, subject to the structure approved by counsel and the governing documents.

Fractional Assignment of Mortgage Agreement

A transaction document tied to an LPN that evidences the assignment of a proportional beneficial interest in the underlying mortgage and related loan rights, subject to the Loan Participation Agreement, the lender-of-record structure, recording requirements, and applicable law.

BCCG Example: A participant holding 2.5% of the loan may receive an agreement documenting the related 2.5% beneficial mortgage interest, subject to the final legal structure.

See also: Loan Participation Note (LPN); Assignment of Mortgage; Participation Percentage; Registry of Loan Participants.

Fractional Participation

A proportional interest in a larger mortgage loan.

Investor Distribution Register

The official record of distributions made to each participant, including the payment date, gross amount, deductions, net amount, method of payment, and related loan or property event.

Investor Registry Administrator

The person or company designated to maintain the Registry of Loan Participants, Certificate Register, Transfer Register, ownership percentages, and related investor records.

Lead Lender

The lender of record that closes the underlying loan and administers it for itself and the participants.

Loan Participation Agreement

The contract defining the rights, obligations, distributions, voting rights, servicing arrangements, and transfer restrictions of the participants.

Loan Participation Certificate

A certificate acknowledging the amount and identity of a participant’s interest in the loan.

Loan Participation Letter of Intent

A preliminary, usually non-binding or conditionally binding statement that an investor intends to participate, subject to due diligence, acceptance, and final documents.

Loan Participation Note Holder ID (LPNHID)

A unique identifier assigned to an approved Community Lending Partner. The LPNHID identifies the holder, while each individual LPN receives its own separate serial number.

BCCG Example: A participant might be assigned LPNHID-003, while the two LPNs owned by that participant might carry separate serial numbers such as LPN-021 and LPN-022.

See also: Loan Participation Note Serial Number; Registered Holder; Registry of Loan Participants.

Loan Participation Note Holder ID (LPN Holder ID)

A unique identification number assigned to each approved Community Lending Partner for administrative, reporting, servicing, and compliance purposes.

Loan Participation Note (LPN)

A fractional beneficial participation interest in an underlying mortgage loan rather than direct ownership of the real estate.

BCCG Example: A $747,000 loan divided into 40 equal LPNs would create 40 participations of $18,675 each.

See also: Loan Participation Agreement; Loan Participation Note Serial Number; Loan Participation Note Holder ID (LPNHID); Registry of Loan Participants.

Loan Participation Note Serial Number

The unique serial number assigned to a particular Loan Participation Note. It links the certificate to the holder, underlying loan, participation amount, ownership percentage, and Registry of Loan Participants.

BCCG Example: The serial number identifies the particular LPN, while the LPNHID identifies the person or entity that owns it.

See also: Certificate Register; Loan Participation Note Holder ID (LPNHID); Registry of Loan Participants.

Loan Participation Register

An administrative record listing participants and their interests. In BCCG materials, this may be maintained as part of the broader Registry of Loan Participants.

Loan Syndication

The process of funding one mortgage loan through multiple approved participants.

See also: Syndication; Loan Participation Agreement; Participation Percentage.

Major Decision

An important servicing or enforcement decision, such as a material modification, maturity extension, foreclosure, deed in lieu, or sale of acquired property.

Ownership Register

The official record showing the current beneficial ownership percentage held by each participant after issuances, transfers, repayments, cancellations, or adjustments.

Participant Ledger

The accounting record for an individual participant showing funded principal, accrued amounts, distributions, protective advances, transfers, adjustments, and remaining balance.

Participant of Record

The person or entity shown in the Registry of Loan Participants as the current holder of a participation interest.

Participant Record Date

The date used to determine which registered participants are entitled to receive a particular notice, distribution, report, consent request, or vote.

Participation Percentage

The percentage ownership represented by a participant’s funded interest.

Participation Sale

The transfer of a participation interest from the lead lender to an approved participant.

Protective Advance Contribution

A participant’s share of additional money needed to protect the collateral or enforce the loan.

Registered Holder

The participant whose ownership is officially recorded by the Registry Administrator.

Registry of Loan Participants

The controlling master record maintained by the Administrative Lender, Registry Administrator, or Loan Servicing Agent identifying every approved Community Lending Partner in a specific mortgage loan. The registry may include each participant’s legal name, contact information, participation amount, percentage ownership, LPNHID, LPN serial numbers, funding date, transfer history, distribution instructions, tax-reporting status, and current ownership balance.

BCCG Example: After closing, the registry should show every accepted participant, total funded amount, ownership percentage, certificate number, and current principal balance.

See also: Certificate Register; Ownership Register; Participant Ledger; Transfer Register.

Registry Reconciliation

The process of comparing the Registry of Loan Participants, Certificate Register, Participant Ledgers, escrow records, servicing ledger, and bank activity to confirm that all ownership and payment records agree.

Standby Participant

An investor who may step in if another committed participant withdraws before closing.

Syndication

The pooling of capital from multiple investors to fund a single loan or investment opportunity.

See also: Loan Syndication; Fractional Participation; Loan Participation Note (LPN).

Transfer Register

The official record of every approved assignment, sale, pledge, transfer, cancellation, or replacement of a Loan Participation Note.

Transfer Restriction

A rule limiting the sale, assignment, pledge, or transfer of an LPN without approval and legal compliance.

Voting Threshold

The percentage of participant interests required to approve specified major decisions.

Absorption Period

The estimated time required for the market to purchase the available properties.

Acquisition Loan

Financing used to purchase the property.

Borrower

The person or legal entity obligated to repay the mortgage loan.

Borrowing Entity

The LLC, corporation, partnership, or other entity that signs the loan documents and owns or acquires the property.

Bridge Loan

Short-term financing designed to bridge the period between acquisition and a future sale, refinance, or permanent loan.

Build-to-Sell

A strategy in which property is constructed or rehabilitated specifically for resale.

Days on Market (DOM)

The number of days a property has been listed for sale.

Exit Strategy

The planned method for repaying the loan, such as sale of the renovated property or refinance.

Fix-and-Flip

The purchase, rehabilitation, and resale of a residential property.

Guarantor

A person or entity that agrees to be responsible for specified loan obligations if the borrower does not perform.

Marketability

The likelihood that the completed property can be sold within the planned price range and timeframe.

Portfolio Collateral

Two or more properties pledged together to secure one loan.

Pre-Sale

A signed purchase contract obtained before or during completion of the rehabilitation project.

Project

The property acquisition, rehabilitation, completion, marketing, and sale financed by the loan.

Rehabilitation Proceeds

The portion of the loan budget designated for renovation work.

Residential Rehabilitation Loan

A short-term commercial mortgage loan used to acquire, renovate, and resell residential property.

Shell Property

A property requiring substantial interior and exterior rehabilitation before occupancy.

Sponsor

The principal, manager, developer, or controlling person behind the borrowing entity.

Subject Property

The property securing the mortgage loan.

Vacant Property

A property that is not occupied when the loan is made.

After-Repair Value (ARV)

The estimated value of a property after the planned renovations are completed.

As-Is Value

The estimated current value of the property before renovations.

Borrower Experience

The borrower’s history completing similar acquisition, rehabilitation, and resale projects.

BOV Affidavit

A sworn valuation affidavit in which a licensed broker certifies the broker’s professional opinion of value.

See also: Broker Opinion of Value (BOV); Broker Price Opinion (BPO); Comparative Market Analysis (CMA).

Broker Opinion of Value (BOV)

An independent written opinion of market value prepared by a licensed real estate broker.

Broker Price Opinion (BPO)

A value estimate prepared by a licensed broker or REALTOR based on comparable sales and market conditions.

Combined Loan-to-Value (CLTV)

For a BCCG multi-property transaction, the total loan amount divided by the combined supported value of all properties securing that loan.

BCCG Example: A $747,000 loan secured by three properties with a combined supported value of $996,000 has a 75% combined portfolio CLTV.

See also: Combined Supported Value; Loan-to-Value (LTV); Equity Cushion.

Combined Supported Value

The total supported value of all properties securing a multi-property loan.

Comparable Sale / Comp

A similar property used to support a value or resale-price estimate.

Comparative Market Analysis (CMA)

A REALTOR’s analysis of similar sold, active, and pending properties used to estimate market value or listing price.

Credit Profile

A summary of the borrower’s or guarantor’s credit history, payment record, debts, and overall creditworthiness.

Debt Yield

Net operating income divided by the loan amount; more common in income-producing property loans than fix-and-flip loans.

Due Diligence

The collection and review of information needed to evaluate the transaction before funding.

Equity Cushion

The difference between the supported collateral value and the loan balance, usually expressed as a percentage.

Feasibility Review

An analysis of whether the project budget, timeline, construction scope, market, and exit plan appear achievable.

Liquidity

Cash or assets that can be converted to cash quickly.

Loan-to-Cost (LTC)

The loan amount divided by the total approved project cost.

Loan-to-Value (LTV)

The loan amount divided by the value of the property securing the loan.

Net Worth

Total assets minus total liabilities.

Sensitivity Analysis

A review of how the transaction performs if costs rise, value falls, or the sale takes longer than expected.

Underwriting

The process of evaluating the borrower, property, budget, collateral, market, risks, and repayment strategy before approving a loan.

Valuation Date

The effective date as of which a value opinion applies.

Budget Reallocation

Movement of approved funds from one budget category to another.

Builder’s Risk Insurance

Insurance covering the property and construction-related risks during rehabilitation.

Certificate of Occupancy

Government confirmation that a property is legally approved for occupancy.

Change Order

A written modification to the approved scope, cost, materials, or schedule.

Conditional Lien Waiver

A waiver effective only after the related payment clears.

Construction and Rehabilitation Package

The collection of project documents covering the scope of work, contractor, budget, schedule, permits, inspections, draws, and completion requirements.

Construction Budget

The itemized estimate of hard costs, soft costs, fees, reserves, and contingencies.

Construction Draw

An approved release of rehabilitation money after work and documentation are reviewed.

BCCG Example: The borrower submits invoices, photographs, lien waivers, and an inspection report before the next rehabilitation disbursement is released.

See also: Draw Request; Draw Inspection; Construction Holdback; Lien Waiver.

Construction Holdback

Loan funds retained and released only after eligible work is verified.

Construction Manager

The party coordinating the construction schedule, contractors, budget, and project execution.

Contingency Reserve

Money set aside for unforeseen rehabilitation costs.

Contractor Affidavit

A contractor’s written certification regarding work completed, amounts owed, and subcontractors or suppliers.

Cost Overrun

Project expenses exceeding the approved budget.

Draw Inspection

An inspection used to verify completed work before funds are released.

Draw Request

The borrower’s formal request for a construction disbursement.

Draw Schedule

The planned timing and amount of construction disbursements.

Final Completion

Completion of all required work, corrections, inspections, waivers, and closeout documents.

General Contractor

The licensed contractor responsible for supervising and completing the rehabilitation work.

Hard Costs

Direct labor and material costs used to perform the renovation.

Mechanic’s Lien

A lien claimed by a contractor, subcontractor, or supplier for unpaid work or materials.

Percentage of Completion

The estimated portion of a budget line or project that has been completed.

Permit

Government approval allowing specified construction or rehabilitation work.

Punch List

A list of remaining minor items to be completed before final acceptance.

Retainage

A percentage of funds withheld until work is completed and accepted.

Scope of Work

The detailed description of all planned repairs and improvements.

Soft Costs

Non-construction costs such as permits, professional fees, insurance, inspections, and financing expenses.

Subcontractor

A specialized contractor hired by the general contractor or borrower.

Substantial Completion

The stage when the project is sufficiently complete for its intended use, subject to remaining minor items.

Unconditional Lien Waiver

A waiver confirming payment has been received and lien rights are released for the stated work.

Clear to Close

Confirmation that required closing conditions have been satisfied, subject to final verification.

Closing

The process in which documents are signed, funds are disbursed, and liens or ownership documents are recorded.

Closing Conditions

Requirements that must be satisfied before the transaction can fund.

Closing Date

The date the loan transaction is completed.

Closing Protection Letter

A title insurer’s limited protection regarding certain misconduct or errors by the settlement agent.

Closing Statement

The final accounting showing all sources, uses, fees, payoffs, reserves, and disbursements.

Escrow

Money or documents held by an independent third party until stated conditions are met.

Escrow Agent

The independent party responsible for holding and disbursing escrowed funds.

Escrow Instructions

Written directions explaining how funds and documents must be handled.

Funding Instructions

Directions explaining where, when, and how approved funds must be delivered.

Good Funds

Funds that are collected, verified, and available for disbursement.

Lender’s Title Policy

Title insurance protecting the mortgage lender’s lien.

Loan Participation Escrow

The escrow arrangement holding participant funds until loan closing conditions are satisfied.

BCCG Example: An investor wires funds to the independent title company, which holds them until the required LPNs are funded and closing conditions are satisfied.

See also: Escrow; Escrow Agent; Funding Instructions; Good Funds.

Post-Closing

The period after settlement when recorded documents, policies, assignments, and final items are completed.

Recordation

The filing of legal documents in public land records.

Recording Receipt

Evidence that a document was submitted or accepted for recording.

Settlement Agent

The title company or attorney coordinating the closing.

Sources and Uses of Funds

A schedule showing where transaction money comes from and how it will be spent.

Title Commitment

A preliminary commitment describing the conditions under which title insurance will be issued.

Title Company

The company examining title, issuing title insurance, holding escrow, and coordinating settlement.

Title Exception

A matter excluded from title insurance coverage.

Title Insurance

Insurance protecting against covered title defects.

Title Search

The examination of public records affecting ownership and liens.

Wire Instructions

Banking instructions used to transfer funds electronically.

Wire Verification

A callback or other independent process confirming that wire instructions are authentic.

Assignment of Rents

A security assignment of rent and lease income.

Collateral

Property or rights pledged to secure repayment of the loan.

Cross-Collateralization

Use of multiple properties to secure the same loan obligation.

Deed of Trust

A security instrument conveying an interest in property to trustees for the benefit of the lender.

First-Position Mortgage

The senior lien with priority over later or junior liens, subject to applicable law.

Fixture Filing

A filing covering goods that are or will become attached to real property.

Future Advance

Additional money advanced under documents that provide for later advances.

Junior Lien

A lien with lower repayment priority than a senior lien.

Lien Priority

The legal order in which liens are paid or enforced.

Mortgage

A recorded lien securing repayment of a debt.

Partial Release

Release of one property while the remaining properties continue to secure the loan.

BCCG Example: When one property in a three-property loan is sold, the settlement agent pays the required release price before the lien on that property is released.

See also: Release Price; Payoff Statement; Mandatory Paydown.

Power of Sale

Authority allowing foreclosure through a process stated in the security instrument and applicable law.

Protective Advance

Money advanced by the lender to protect the collateral, such as taxes, insurance, security, emergency repairs, or lien payments.

See also: Protective Advance Contribution; Distribution Waterfall; Workout.

Receiver

A court-appointed or contract-authorized party that may control and preserve property or income after default.

Release Price

The amount required to release a specific property from a multi-property mortgage.

Satisfaction / Release of Mortgage

The document confirming that the secured obligation has been paid and the lien is released.

Security Agreement

The agreement creating a security interest in personal property and other non-real-estate collateral.

Security Instrument

The mortgage or deed of trust creating a lien against the property.

UCC Financing Statement

A public filing used to perfect a security interest in personal property.

Accrued Interest

Interest earned or owed but not yet paid.

Annual Percentage Yield (APY)

A stated annualized yield measure. The exact meaning and compounding treatment must be confirmed in the governing documents.

Balloon Payment

A large final payment due at maturity.

Default Interest

A higher interest rate that may apply after default.

Distribution

Money paid to participants from actual loan collections or recoveries.

Distribution Waterfall

The order in which collected money is applied to costs, advances, interest, returns, principal, and other obligations.

Due-on-Sale Return (DOSR)

A contractual return payable when collateral is sold and the loan is paid, subject to the governing documents.

BCCG Example: The DOSR is calculated and paid according to the governing documents when an approved property sale triggers payoff or partial payoff.

See also: Exit Fee; Distribution Waterfall; Payoff.

Exit Fee

A fee or return payable at loan payoff, sale, or maturity as described in the loan documents.

Extension Fee

A fee charged for an approved maturity extension.

Interest-Only Payment

A payment covering interest without reducing principal.

Interest Reserve

Funds set aside to make scheduled interest payments or accruals during the loan term.

Interim Interest

Interest paid or accrued during the loan term before final payoff.

Late Charge

A charge imposed when a payment is not made on time, subject to the documents and applicable law.

Mandatory Paydown

A required principal payment triggered by a sale, refinance, or other event.

Net Recovery

Money remaining after enforcement, preservation, legal, servicing, and sale expenses are deducted.

Origination Fee

A fee charged for arranging, underwriting, and closing the loan.

Payoff

Full payment of the amount required to satisfy the loan.

Payoff Statement

An official statement showing the amount required to pay the loan through a stated date.

Prepayment

Payment of all or part of the loan before maturity.

Principal Distribution

Return of invested principal from loan repayments or recoveries.

Pro Rata

Allocated in proportion to each participant’s ownership percentage.

Servicing Fee

Compensation paid to the loan servicer for administration and reporting.

Targeted Return

A projected or stated objective that is not guaranteed.

Borrower Report

Information the borrower is required to provide regarding construction, budget, permits, insurance, sales, and financial condition.

Compliance Monitoring

Review of whether the borrower continues to follow the loan documents.

Construction Monitoring

Ongoing review of project progress, budget, inspections, draws, and completion status.

Investor Portal

A secure online location where registered participants may receive reports, statements, notices, documents, and transaction updates.

Investor Report

A periodic report describing collections, distributions, loan balance, project status, reserves, and material events.

Investor Statement

A statement showing a participant’s principal balance, accrued or paid amounts, distributions, fees, protective advances, and other account activity.

Loan Boarding

The process of setting up a newly closed loan in the servicer’s system.

Loan Servicer / Loan Servicing Agent

The company responsible for collecting payments, maintaining records, issuing statements, processing payoffs, and reporting.

See also: Loan Boarding; Payment Ledger; Investor Report; Registry of Loan Participants.

Material Adverse Change

A significant negative development affecting the borrower, project, collateral, or repayment prospects.

Partial Release Request

A request to release one property after the required payment and conditions are met.

Payment Ledger

The record of principal, interest, fees, advances, and payments.

Payoff Request

A formal request for the amount needed to pay off the loan.

Remittance

Money collected and forwarded to the party entitled to receive it.

Reporting Period

The time covered by a servicing or investor report.

Reserve Ledger

The record of amounts deposited into and withdrawn from a reserve account.

Risk Rating

An internal assessment of the loan’s current level of risk.

Servicing Transfer

The replacement of one loan servicer with another.

Tax Reporting Record

The information maintained for preparing any required tax forms or investor tax reports.

Watch List

A list of loans requiring increased monitoring.

Acceleration

Declaration that the entire unpaid loan balance is immediately due.

Bankruptcy Stay

The automatic legal stay that may temporarily stop collection or foreclosure after a bankruptcy filing.

Cure Period

The time allowed to correct a default, when provided by the documents or law.

Deed in Lieu of Foreclosure

A transfer of the property to the lender or its designee instead of completing foreclosure.

Default

Failure to perform an obligation under the loan documents.

Deficiency

The unpaid balance remaining after collateral proceeds are applied, subject to law and the loan structure.

Event of Default

A default or other event that gives the lender contractual enforcement rights.

Forbearance Agreement

An agreement under which the lender temporarily delays enforcement while the borrower follows a cure plan.

Foreclosure

The legal process used to enforce the mortgage lien and sell the collateral.

Judicial Foreclosure

Foreclosure conducted through a court action.

Liquidation

Conversion of collateral into cash through sale or enforcement.

Maturity Extension

An approved change extending the final due date.

Modification

A written change to the loan terms.

Nonjudicial Foreclosure

Foreclosure conducted under a power of sale or similar procedure without a traditional lawsuit, where permitted.

Notice of Default

Written notice describing the default and any required cure.

Protective Advance

Money spent by the lender to protect collateral or lien priority.

See also: Protective Advance Contribution; Distribution Waterfall; Workout.

Real Estate Owned (REO)

Property acquired by the lender or its designee through foreclosure, deed in lieu, or similar enforcement.

Recovery

Money obtained from repayment, settlement, insurance, foreclosure, guaranties, or collateral sale.

Workout

A negotiated plan to resolve a troubled loan without immediate foreclosure.

Workout Fee

A fee charged for administering a default or restructuring, if authorized.

Accredited Investor

A person or entity meeting financial or professional criteria under applicable securities law.

Bad-Boy Carve-Out

A provision making the borrower or guarantor responsible for specified misconduct such as fraud, misuse of funds, or prohibited transfers.

Borrower Credit Risk

The possibility that the borrower will not repay or perform.

Collateral Risk

The possibility that collateral value or sale proceeds will be insufficient.

Completion Guaranty

A guaranty requiring completion of the project and payment of certain cost overruns.

Concentration Risk

The risk of investing too much capital in one loan, borrower, property type, or market.

Confidentiality Agreement

An agreement restricting use or disclosure of non-public transaction information.

Conflict of Interest

A situation in which a party’s interests may differ from those of investors or another transaction party.

Construction Risk

The possibility of delays, defects, contractor failure, or cost overruns.

Environmental Indemnity

An agreement requiring specified parties to cover environmental liabilities.

Extension Risk

The possibility that repayment will take longer than expected.

Fiduciary Duty

A heightened legal duty to act for another party’s benefit. Whether a fiduciary duty exists depends on the relationship and governing law.

Foreclosure Risk

The possibility that enforcement will be required and may be costly or delayed.

Illiquidity

The risk that an investment cannot be sold or converted to cash quickly.

Independent Adviser

An attorney, accountant, tax adviser, or financial adviser who is not controlled by BCCG and advises the investor independently.

Investor Suitability

The determination of whether an investment is appropriate for a prospective investor’s experience, finances, liquidity, and risk tolerance.

Market Risk

The possibility that property values, buyer demand, or sale timing may worsen.

Non-Recourse Loan

A loan in which recovery is generally limited to collateral, subject to stated exceptions.

Offering Documents

The memorandum, participation agreement, subscription materials, disclosures, and related documents governing the offering.

Principal Risk

The possibility of losing some or all invested principal.

Private Placement

A non-public offering made under an available securities-law exemption.

Regulatory Risk

The possibility that laws, regulations, or legal interpretations affect the transaction.

Risk Acknowledgment

The investor’s written confirmation that the investment risks have been reviewed and understood.

Securities Law

The laws regulating offers and sales of investment interests.

Subscription

The process by which an investor applies and agrees to purchase a participation interest.

Subscription Agreement

The agreement containing the investor’s purchase commitment and eligibility representations.

Tenant in Common (TIC)

A form of direct real-estate co-ownership. A TIC owner owns the property itself, unlike an LPN investor who participates in the mortgage loan.

BCCG Example: A TIC investor directly owns a percentage of the real estate; an LPN investor generally owns a contractual beneficial participation in the mortgage loan instead.

See also: Beneficial Interest; Loan Participation Note (LPN).

Title Risk

The possibility of defects, liens, or ownership issues affecting collateral.