PEFCO's SECONDARY LONG-TERM PROGRAM
Direct Long-Term Loan Program | Secondary Long-Term Program | Selection Chart

The PEFCO Secondary Long Term Loan Program also provides the originating party with the ability to offer a securitized type of fixed-rate loan without the front-end complexity and cost of standard bank securitizations; however, the interest rate may not be fixed until the last disbursement has occurred. The originating party can thus offer its customers fixed and floating rates, slightly higher than under PEFCO's Direct Long Term Loan Program, without carrying low-yielding assets on its books and can convert asset-based income into fee income, while still earning a spread from the loan.

Features:

• PEFCO may be a direct lender to a borrower, may participate without recourse in a loan made by an originating party or it may purchase, without recourse, and assume the original lender's role in such a loan.
• The interest rate may remain floating throughout the life of the loan.
• Once disbursements are finalized, PEFCO will, if requested, convert a floating-rate loan to a fixed-rate loan and will assume the original lender's role.
• PEFCO's fixed and floating interest rates are slightly higher than under its Primary Program.
• An additional spread over PEFCO's fixed or floating interest rate may be added for the originating party in all transactions.
• PEFCO charges no fees other then a commitment fee.
• The originating party may charge the borrower structuring and/or letter of credit fees.
• The originating party may have the opportunity to earn other income, such underwriting fees.

Secondary Long Term Loan Program Commitment Fees

PEFCO may charge a commitment fee for PEFCO's Secondary Long Term Loan Program.

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