These loans are intended to finance purchases that will quickly and reliably generate cash.
I would like to develop this project further, make it easier to produce and super sustainable.
A type of short- or intermediate-term credit that is repaid with money generated by the assets it is used to purchase.
The repayment schedule and maturity of a self-liquidating loan are designed to coincide with the timing of the assets' income generation.
Update June 21, 2011: JP Morgan Chase has agreed to pay a 4 million penalty to settle SEC charges that the bank misled investors about a complex mortgage-securities deal during the waning days of the housing boom. The Federal Reserve had begun raising interest rates. Investors began to balk at buying complex mortgage securities.
The SEC charged that JP Morgan neglected to tell investors that the hedge fund Magnetar helped create the deal and was betting against it. The housing bubble, which had propelled a historic growth in home prices, seemed poised to deflate.