Matured Note

Information to Address Your Matured Note

If a promissory note/loan held within your account reaches its maturity date as outlined in the terms of the note, and your account has not received a full payoff of the loan, Equity Trust will provide a notice regarding your options for managing your asset.

First Notice
You will receive the first notice informing you that our records indicate you have a matured note.
Second Notice
If no action has been taken, you will receive a second notice reminding you that action is required.
Third Notice
If no action has been taken, you will receive a third notice reminding you that action is required.
Fourth Notice & Fee
If no action has been taken, your account will be assessed a non-refundable Matured Note Fee of $75 for each unresolved note.
Distribution
- You will also receive a notice informing you when to expect the investment distribution if you do not take immediate action to resolve the matured note.
- Your investment will be distributed at the last known value and reported to the IRS as taxable income. This may result in 10% tax penalty if you are under the age of 59½.

If you require further assistance, you may contact our office via email at [email protected].

Seize the Collateral

If the loan is secured by collateral, you may have the option to seize the collateral and replace the loan with the asset within your Equity Trust account.

To do this, complete a Direction of Investment to add the seized asset to your account.

Direction of Investment to add asset seized:

Real Estate – Real Estate Buy DOI Form
Mobile Home or other collateral – General Buy DOI Form
Interest in an LLC, C-Corporation, Joint Venture, Land Trust, or Limited Partnership – Entity Buy DOI Form

Extend the Terms of the Loan

If you and the borrower agree to extend or modify the terms of the original note, your asset must be updated within your Equity Trust account to reflect these changes.

By keeping us timely informed about any changes on your note, you’ll avoid unexpected distributions, potential tax consequences, and matured note related fees.

*Please note that the maturity date will not be updated with only our Promissory Note Status form. This internal document is used only to route your submission to the appropriate department for processing.

To complete this transaction:

1. Gather supporting documentation, such as an amended note or note extension signed by both parties, along with our Equity Trust Promissory Note Status form. Failing to provide the required supporting documents will result in the maturity date not getting updated.
2. Submit the note status form and the supporting documentation to 440-365-1444 or email to [email protected]

Deem the Loan Uncollectible

If the borrower is unable/unwilling to pay back the loan, the loan can be deemed uncollectible.

In order to complete this transaction:

Complete the Fair Market Valuation form
Send the completed form, along with evidence that the note is uncollectible to Equity Trust
If the loan is secured by collateral, supporting documentation must be provided to show why the collateral is not being seized

Seize the Collateral

If the loan is secured by collateral, you may have the option to seize the collateral and replace the loan with the asset within your Equity Trust account.

To do this, complete a Direction of Investment to add the seized asset to your account.

Direction of Investment to add asset seized:

Real Estate – Real Estate Buy DOI Form
Mobile Home or other collateral – General Buy DOI Form
Interest in an LLC, C-Corporation, Joint Venture, Land Trust, or Limited Partnership – Entity Buy DOI Form

Extend the Terms of the Loan

If you and the borrower agree to extend or modify the terms of the original note, your asset must be updated within your Equity Trust account to reflect these changes.

By keeping us timely informed about any changes on your note, you’ll avoid unexpected distributions, potential tax consequences, and matured note related fees.

To complete this transaction:

1. Gather supporting documentation, such as an amended note or note extension signed by both parties, along with our Equity Trust Promissory Note Status form. Failing to provide the required supporting documents will result in the maturity date not getting updated.
2. Submit the note status form and the supporting documentation to 440-365-1444 or email to [email protected]

Deem the Loan Uncollectible

If the borrower is unable/unwilling to pay back the loan, the loan can be deemed uncollectible.

In order to complete this transaction:

Complete the Fair Market Valuation form
Send the completed form, along with evidence that the note is uncollectible to Equity Trust
If the loan is secured by collateral, supporting documentation must be provided to show why the collateral is not being seized

Matured Promissory Note FAQs

Q: I received an expired promissory note notice, what do I need to do?
A: Review the possible circumstances that apply to your account on this page and follow the directions to resolve. If a scenario doesn’t apply to your situation, please contact Equity Trust by email at [email protected].

Q: What should I do if the promissory note was paid off but it is still showing in my account?
A: Provide Equity Trust Company with the Promissory Note Satisfaction Direction of Investment Form indicating the date and amount of the payoff. Please remember that any return on your investments must be deposited into your account.

Q: Why must the borrower sign if I choose to extend or modify the terms of the promissory note?
A: The original promissory note requires the borrower’s signature acknowledging the terms of the loan. Any modification made to the terms of the existing note should also be acknowledged by the borrower to ensure he or she are in agreement.

Q: What if I cannot contact the borrower?
A: You may choose to deem the promissory note uncollectible. In order to do this you must provide sufficient evidence that you have attempted to contact the borrower. Supporting documents are required in order to allow Equity Trust Company to reduce the value of the promissory note.

Q: How long do I have to submit required paperwork for my matured promissory note?
A: You should submit paperwork upon learning of your matured investment. Once we receive the paperwork, you will be contacted if additional information or clarification is needed.