What happens if a borrower dies?

If a borrower dies while a borrower loan is in repayment, we require the executor or administrator of the estate to send a death certificate to us. Depending on the size of the estate and the other liabilities thereof, we may not be able to recover the outstanding amount of the loan. If the estate does not include sufficient assets to repay the outstanding borrower loan in full or the estate allocates its assets to other liabilities, we will treat the unsatisfied portion of that borrower loan as charged-off with zero value. In addition, if a borrower dies near the end of the term of a borrower loan, it is unlikely that any further payments will be made on any Notes corresponding to such borrower loan because the time required for the probate of the estate may extend beyond the final maturity date of the Notes corresponding to such borrower loan.

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