Whilst we take investor security very seriously, like any type of investment, there is a level of risk involved. It is important to note that your capital and interest are at risk and are not covered by the Financial Services Compensation Scheme. The fact that the bond is asset backed secured against a legal charge on property does not guarantee that all capital would be repaid. This also means that there is a liquidity risk and there is likely to be a delay in repaying your capital should you request it. In the event that the Issuer becomes insolvent, you may lose some or all of your investment, including interest payments due. If you are in any doubt about making an investment, you are strongly recommended to consult a qualified financial adviser. Before you subscribe to the bonds, you should ensure that you fully understand the risks and determine whether the investment is suitable for you on the basis of all available information.     

Credit Risk
The net proceeds from bonds will be used by the Issuer to lend money to third party borrowers secured on property and there is credit risk inherent in these lending activities.  As such any adverse changes in credit quality and loan recoverability could affect the Issuer ability to satisfy its own payment obligations to the bondholders.

UK Based Assets
The borrowers’ assets, which will be subject to the borrower security will be located in the UK and as such the geographical concentration of credit risk is centred on the UK making the issuer sensitive to adverse changes in the UK economy, which could impact on the value of the security taken as part of borrower security. Such decreases in value of security may have an adverse impact on the Issuer’s ability to make payments to the Bondholders.

UK Lending Market
A substantial fall in the general cost of lending in the UK may adversely impact the issuers ability to find borrowers willing to take up loans.  This may affect the Issuers ability to make payments to bondholders.

Bonds Are Not Protected by The Financial Services Compensation Scheme (‘FSCS’)
The bonds are not protected by the Financial Services Compensation Scheme (the ‘FSCS’) or any other government savings or deposit protection scheme.  The FSCS will not pay compensation to an investor in the bonds upon the failure of the issuer. If, the issuer goes out of business or becomes insolvent, bondholders may lose all or part of their investment in the bonds.

No Secondary Market
Bonds may have no established trading market when issued, and one may never develop. If a market does develop, it may not be liquid. Investors may not be able to sell their Bonds easily or at prices that will provide them with a yield comparable to similar investments that have a developed secondary market.  If an investor chooses to sell prior to maturity of the Bonds, the investor may receive an amount less than the amount due to be repaid upon maturity.

Further Information
The risks described above are not exhaustive, and they do not purport to be a complete explanation of all the risks and significant considerations involved in investing in the bonds. The bonds may not be a suitable investment for all who review this document or the base prospectus. Investors are strongly advised to take their own tax and investment advice as to the consequences of owning the bonds.  Other than the obligations and other covenants on the part of the Issuer to pay interest on the bonds and repay the principal sum of the bonds when due and to perform the other obligations contained in the base prospectus, no representation or warranty, express or implied herein, is given to investors by the issuer or the directors and officers of the issuer. In particular, but without limitation, no representation or warranty is given by any such person as to: (i) the tax consequences; (ii) the regulatory consequences; or (iii) the business and investment risks associated with acquiring, owning or redeeming the bonds.

Important Notice
Capital at risk. The value of your investments can go down as well as up, so you could get back less than you invested.

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