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1. How does the LenderProtector© increase the banks asset value? (What is the benefit to this?)
2. How could this program help Banks sell their loans to THE SECONDARY MARKET?
3. How will using the LenderProtector© leave assets available for customers that normally would be tied up?
4. Could the LenderProtector© be able to cut the banks workload and how do you forsee that happening using this program?
5. How Can the Bank LenderProtector© to turn larger loans in shorter period of time?
6. Is there a business deduction for the borrower on the money going into the trust part?
7. Can a bank, Institutional Investor or Private Investor use the LenderProtector programs to guarantee their EQUITY investment in company or project?

How does the LenderProtector© increase the banks asset value? (What is the benefit to this?)

The larger the banks total assets the larger their access to federal funds - plus as the bank security increases and the loan defaults decreases the bank has more access to federal funds and their ability to loan money grows.

How could this program help Banks sell their loans to THE SECONDARY MARKET?

Large banks have not been able to sell their loans on the secondary market for fear of default of loans. With the LenderProtector program they could sell these loans easier (because of no risk) and the beneficiary CAN be changed (one of the benefits of the trust) that way, the banks can sell the loans to the secondary market and the company buying them picks up the benefits. It helps the big banks who are being forced to raise their rates so high that they can’t get attract new loans to unload the current loans which will be able to help them bring in more loans through a decrease of interest rates.

How will using the LenderProtector© leave assets available for customers that normally would be tied up?

There would be lower demand for security from the borrower. They would have the net value available to use for leverage. There would be no after tax principal payments and so the income tax cost to businesses would be reduced in this model as well - payments would be fully tax deductible because they are only paying interest. Another value to the business owner.

Could the LenderProtector© be able to cut the banks workload and how do you forsee that happening using this program?

Remember that the bank’s business is investing in loans - other companies’ activities. This process mitigates the amount of work they do by 50% and increases their income per loan while eliminating risk. They do not have the burden of securing the principal of loans and secondly they no longer have to make collection of principal payments. They are also lending double their normal amount to each borrower and are receiving double the income per loan. Therefore they receive double the amount of income per loan and reduce their workload by up to 50%.

How Can the Bank LenderProtector© to turn larger loans in shorter period of time?

They use their own money to secure the loans being issued and have no risk in those loans.

Is there a business deduction for the borrower on the money going into the trust part?

The borrower might receive a deduction on the loan amount that goes to the trust since it isn’t income they are not using. (Borrower needs to talk to their accountant).

Can a bank, Institutional Investor or Private Investor use the LenderProtector programs to guarantee their EQUITY investment in company or project?

Absolutely. In fact, these strategies were first developed for Equity investments in companies, especially start ups. Benefits include:

1. The investments can be structured so that the investor never loses an amount equal to their principal investment (no capital risk)
2. They are guaranteed to receive equity and their investment back in 6 years or less whether the client succeeds or not
3. If the client succeeds, the investor can have potentially high returns plus an amount equal to their original investment back in 6 years or less … guaranteed
4. The programs can be set up so that the investor has an option of using the money in the trust to buy back in at the original share price after say 3 years (must be agreed upon in advance by entrepreneur and investor) if it looks like the company will succeed providing the ultimate in security and upside. If this option is used, the benefit for the entrepreneur is that the trust money can be used as a deferred compensation program … everybody wins!

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