Monestro has voluntarily created a monetary reserve to reimburse, to the extent of available funds and subject to other conditions of this Policy, the Investors by acquiring their Claims in the event that any Loan Originator does not comply with its Buyback obligation and other conditions of this Policy are met. The Reserve does not guarantee recovery of the Investor’s investment in full or in part.
We make monthly contributions to the Reserve from our own funds. The amount of contributions is determined by us depending on the risk assessment. Typically, the monthly contribution to the Reserve is 0,35% – 0,55% of the outstanding principal amounts of all Claims. In the event that any Loan Originator does not comply with its Buyback obligation, the Voluntary Reserve is used to acquire the Claims from the Investors and make other pay-outs to investors.