Recipient Requirements:

 

Recipient must have a specific theatrical production, as above for Lending Fund.

 

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Terms of Loan:

 

Lender will make assessment of lendable value based on the following factors:

• Tangible but at-risk assets (i.e. deposits, advances, etc.)

• Advanced ticket sales if available

• Equivalent productions’ data to assess likelihood of return

• Producer’s track record, production history, etc.

• Other relevant information as determined by Lender at time of assessment

 

Recipient must submit a budget, using template from Lender. Recipient must submit income potential from production, including all assumptions and all royalties, or equivalent, other deductions, including priority funds due to participants, lenders, or other investors.

 

Lender will lend if it assesses odds of 80% or greater return of the total loan plus the fee.

 

Lender will receive a fee of up to 25% of the lent funds (lower fees available at the discretion of the Lender).

At the outset, the maximum Mezzanine loan available will be £450,000.

 

As with the Lending Fund, Lender will receive priority on production operating profit and any other net income arising in relation to the production (subject to deductions agreed upon in advance, such as royalties) up to the point at which the principal and the fee/interest have been repaid. No investors may be repaid any capital before the principal and fee/interest have been repaid unless agreed in writing at the point of loan.

 

Should such income from a planned production not reach the level of repayment, additional funds from the borrower shall not be required.

 

Interest shall be calculated on any unpaid funds (including the fee) from one year after the date of withdrawal at Bank of England base rate plus 5%. This shall only be payable from income relating to the production in question.

 

For any further income arising in relation with the production in the future (e.g. licensing): the Lender shall have first priority to be repaid from such income before other equity participants, unless agreed at the point of loan. Producers or creators may receive a royalty from such income before payment to Lender, provided those payments are detailed in the initial list of deductions.