MEDIUM-TERM GUARANTEED NOTE FACILITY
Medium-Term
Overview |
Insured
Note Facility
PEFCO Medium-Term Guaranteed Note Facility is a secondary
market buyer of multi-year export loans that are guaranteed
against nonpayment by the Export-Import Bank of the United
States ("Ex-Im Bank") under a medium-term comprehensive
guarantee.
| Eligible Notes |
PEFCO will purchase any note structure acceptable
to Ex-Im Bank.
- Interest rates that can be floating or fixed
- New or existing notes (including partially repaid)
- Single notes or portfolios
- Per-note $10,000,000 maximum (excluding Ex-Im bank
fees)
- Repayment up to 7 years (up to 15 years for environmental
exports)
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| Eligible Lenders |
PEFCO will purchase notes from any bank, finance company
or lender with a master guarantee and that is experienced
in structuring and financing Ex-Im Bank loans. PEFCO does
not purchase notes directly from exporters. |
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| The amount of notes
purchased from a lender will depend upon PEFCO's
evaluation of the lender's experience with
these loans and ability to indemnify
PEFCO if guarantee coverage is lost or a claim
denied. |
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| PEFCO Purchase |
PEFCO purchases the guaranteed principal amount of each
note (without discount or premium) without recourse to the lender. All purchases are
completed after the lender has disbursed and the guarantee
has been issued (i.e., "Approved" on the ECP
History page).
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| Purchase Document |
The PEFCO purchase document is a Master Guaranteed Note
Purchase Agreement that governs all purchases. |
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| PEFCO requires the
personal guarantee of majority owners of non-regulated
and/or privately-held lenders. |
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| Note Servicing |
Lender retains full control over note servicing,
documentation, the guarantee and claims. PEFCO holds
the original note.
PEFCO will collect funds for a fee.
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| Interest & Fees |
A schedule of interest rates and fees is
available from PEFCO.
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| Special Programs |
PEFCO offers several programs to meet specific needs. (See Medium-Term Initiatives in the Small
Business Initiative section.) |
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