If the owner of the BorrowerNote does not pay the principal and interest in full before the loan has expired, the lender has the ability to claim the underlying collateral. In this case, the lender forfeits their ability to recover any portion of the principal and interest amounts.The loan claim process must be initiated by the holder of LenderNote.
For single payment loans, this transaction can only proceed if called after the loan's due date has passed and if the borrower has not completely repaid the principal and interest amount agreed upon in the loan terms.
- Lender creates a transaction that initiates a claim on an Vault via the RepaymentController providing the loanId.
- The RepaymentController calls LoanCore to validate that the loan is in a defaulted state.
- LoanCore then burns both PromissoryNotes (LenderNote and BorrowerNote).
- The lender is then transferred the underlying assets stipulated in loan terms.
Updated about 2 months ago