Your investment is in a secured loan. This means that the borrower has granted security to Lendy investors. If the borrower fails to repay their loan, we can seek to recover any outstanding amounts by taking possession of the property and enforcing the security. The amount which is due to you from any security proceeds will be paid into a segregated client account and, before being paid into that account, will be held on trust for you by Lendy.
During the term of your investment, you won’t have any recourse to the borrower or to the security. You will have recourse to Lendy, but only to the extent that Lendy receives payments from the borrower or recovers proceeds by taking possession of the property and enforcing the security.