Programs -Medium-Term Insured Note Facility-
PEFCO Medium-Term Insured Note Facility is a secondary market buyer of multi-year export loans that are insured against nonpayment by the Export-Import Bank of the United States ("Ex-Im Bank") under a medium-term comprehensive policy.
Eligible Loans
PEFCO will purchase any loan structure acceptable to Ex-Im Bank.
- Interest rates that can be floating or fixed
- New or existing loan (including partially repaid)
- Single loan 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)
Eligible Lenders
PEFCO will purchase Notes from any bank, finance company or lender with financial institution policy coverage and that is experienced in
structuring and financing Ex-Im Bank Loans. PEFCO does not purchase Notes directly from exporters.
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 policy coverage is lost or a claim denied.
PEFCO Purchase
PEFCO purchases the insured 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 policy premium has been paid.
Purchase Document
The PEFCO purchase document is a Master Insured Note Purchase Agreement that governs all purchases.
PEFCO requires the personal guarantee of majority owners of non-regulated and/or privately-held lenders.
Loan Servicing
Lender retains full control over Note servicing, documentation, the policy and claims. PEFCO holds the original Note. PEFCO will collect funds for a fee.
Interest & Fees
A schedule of standard interest rates and fees is available in a separate document.
Special Programs
PEFCO offers several programs to meet specific needs. (See Medium-Term Initiatives in the Small Business Initiative section.)