The Meyer Trust adapts its PRI program terms to suit each transaction funded. The following represents the range of terms for Meyer Trust PRI investments, which to date have taken the form of loans:
- Loan duration: 1-7 years
- Repayment increments: Interest is repaid in quarterly installments, sometimes together with principal. Some loans feature a laddered principal payment that is paid annually. A few loans feature a balloon repayment of the entire principal at the end of the term.
- Interest rate: 2.5% annual interest (reviewed and reset, if needed, April 1)
- Securitization status: PRIs are secured whenever feasible.
- Recourse status: Full recourse to the borrower.
- Origination fees: MMT charges no origination fee.
- Other expenses: In instances when real property (i.e., land, buildings) is secured, the applicant typically pays expenses for the title search, lender's title insurance policy and recording/filing of the deed of trust. In instances when personal property is secured (i.e., equipment, other assets), the applicant typically pays the UCC (Uniform Commercial Code) filing fee. Additional expenses – such as legal, appraisal and consulting fees – are the applicant's responsibility. Depending on the loan, MMT may elect to secure both real and personal property.
