On Development Tranches, the pari passu principle applies. This means that all lenders must share equally any proceeds from the sale or refinance of the property assets, in proportion to the debts due to each lender.
Order of Priority
Order of Priority, when capital and interest are repaid.
For Development tranche loans, repayment of capital and payment of interest will be applied on the following basis: All lenders in all tranches will share equally any proceeds received from the sale or refinance of the property assets, in proportion to the debts due to each lender.
When Lending in Tranche Loans, you and all lenders in all the Tranche Loans of the security charge are accepting the order of priority when you invest.
When a specific Tranche has been split into Tiers the specific Tranche Pari Passu split will then be prioritised by order of the Tiers in the specific Tranche. So, Lenders who have lent funds in Tranche 1 - Tier 1 will be paid first from the specific Tranche Pari Passu split, then Tier 2, then Tier 3, and then Tier 4.
When Lending in Tranche Loans, you and all lenders in all the Tranche Loans of the security charge are accepting the order of priority when you invest.
When a specific Tranche has been split into Tiers the specific Tranche Pari Passu split will then be prioritised by order of the Tiers in the specific Tranche. So, Lenders who have lent funds in Tranche 1 - Tier 1 will be paid first from the specific Tranche Pari Passu split, then Tier 2, then Tier 3, and then Tier 4.