A loan that has been paused is one where we feel that there is a measure of uncertainty and so the existence of a Loan Exchange may be unfair to some people. This may occur if a repayment is late or at risk. It may occur if we become aware of any change in the financial circumstances of a borrower or their client. It may occur if we feel that market activity is not normal in that loan and it may occur if the loan is a short term loan and we feel that it shouldn’t be traded (especially if we have been informed of early redemption of the loan).

Pausing a loan is done at the complete discretion of Ablrate, however, on payment date the loan is automatically paused. This is because, in the case of an amortising loan, if a lender has a certain amount of loan on offer and it is their entire holding, that offer will no longer be valid when they have been paid some capital back.

If we pause a loan it means that the Loan Exchange for that loan is closed temporarily. As soon as we pause the loan, all bids and offers will be cancelled immediately.

They can only be re-instated manually by lending members when we un-pause the loan.

It is policy for most Loans to be paused with one payment remaining although we may choose, at our discretion to allow trading in that Loan. You can see why a loan is paused by rolling your mouse over the ‘Is Paused’ green tick on Ablrate or checking the Admin Notes on Ablrate or the Loan Exchange. A popup will come on screen with the relevant information.

There is also functionality in place that restricts the prices at which loans can be traded in order to avoid a lender ‘buying a loss’ (i.e the remaining interest in the loan would not enough to cover any premium) .

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