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[Capital_Finance_Group]

I was looking to see what the minimum transfer out will be tomorrow - has anyonw found it in their latest filing of 07/09/2009? TIA

[onthefence]

Prosper
Is Back In Business

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Notice of Effectiveness

Effectiveness Date:   July 10, 2009 3:30 P.M.
Form: S-1
CIK:   0001416265
Company Name: PROSPER MARKETPLACE INC
File Number: 333-147019
Prosper's File: http://www.sec.gov/cgi-bin/browse-edgar?NONOaction=getcompany&CIK=0001416265

Nominate for lobby... or if not, a new thread with this post in it.

[112233]

prosper is down for 2 days. as usual, prosper has all this properly planned out.

[xraider]

I hope "investors" carefully read the S-1.

*We don't verify information.

*You assume the risk that information provided by borrowers may be intentionally false.

*Status information given on loans between inception and March 31, 2009 shows 31.3% of loans had been at least 15 days late at least once, and 20% had defaulted.

*"Some borrowers may use our platform to defraud lender members"

*"The fact that Prosper will have the exclusive right and ability to investigate claims of identity theft in the origination of loans creates a significant conflict of interest between Prosper and the lender members."  

*"In the unlikely event that we receive payments on the corresponding borrower loans relating to your Notes after the final maturity date, you will not receive payments on your Notes after maturity."

*"Our platform may fail to comply with borrower protection laws such as state lending laws, or federal consumer protection laws such as the Truth in Lending Act, the Equal Credit Opportunity Act and the Fair Credit Reporting Act.  Borrowers may make counterclaims against us, any collection agency or you after collection actions have commenced."  - OK.  I have to comment on this one.  What collection efforts???

*Regarding the lawsuit:  "We face a contingent liability for securities law violations in respect of loans sold to our lender members from inception until October 16, 2008.  This contingent liability may impair our ability to operate our platform and service the borrower loans that correspond to your Notes. . . . As a result of our prior operations, our lender members who hold these loans may be entitled to rescind their purchase and be paid their unpaid principal amount of the borrower loans plus statutory interest.  In addition, since our inception, the aggregate principal amount of loans purchased through our platform by purchasers not affiliated with Prosper was $177.6 million, of which $30.4 million had defaulted, $5.9 million were more than 30 days past due, $81.3 million of principal had been repaid and $66.9 remains outstanding.  Prosper is potentially liable for the remaining outstanding principal amount if the current borrowers stop making payments."  

I could keep going but this post is long enough.  

[xraider]

Second nomination for lobby

[MsTabbyKats]

For the lobby 

[112233]

*We don't provide lube

[Investar]

Nominate for lobby... or if not, a new thread with this post in it.

+1 w/Moderator request/suggest: Split Topic and Rename
ETA because there are some important warnings/considerations brought to bear that should follow along!

[NewHorizon]

I could keep going but this post is long enough.  

Who says?  Not me!   

[moremoneymarc]

I am surprised that the SEC allowed Prosper to sell cash flow on securities for which the security holders have no claim on the underlying asset without requiring Prosper to be bonded for each security.

 It seems a third party would have to back them up or this is an invitation to disaster and fraud.  My understanding is they would own all assets the new investors purchase and can borrow against those securities up to 100% as long as they intend to make a profit in the future to pay back the loans.

I think we will have to be very careful when the new site opens up such that we do not inadvertently agree to new terms based on use only in withdrawing our money.

[xraider]

I am surprised that the SEC allowed Prosper to sell cash flow on securities for which the security holders have no claim on the underlying asset without requiring Prosper to be bonded for each security.

 It seems a third party would have to back them up or this is an invitation to disaster and fraud.  My understanding is they would own all assets the new investors purchase and can borrow against those securities up to 100% as long as they intend to make a profit in the future to pay back the loans.

I think we will have to be very careful when the new site opens up such that we do not inadvertently agree to new terms based on use only in withdrawing our money.

M3k, there are so many things right with your post I have to save it for posterity.

This clearly is an invitation to disaster and fraud.  Prosper is saying so:  We know people will use our platform to defraud lenders but it is not in OUR interest (although it may be in the lenders' interest) to detect and prevent this.

I don't intend to do anything to approve any new TOS.  Back on the old boards, I advised Prosper that I would not agree to any new TOS, and that continues to apply.

I truly hope that Prosper has to repurchase all of our loans plus pay interest at the legal rate. 

[Cushie]

This line in the maintenance notice doesn't sit well with me, "While the site is under maintenance, none of your information will be lost or forgotten."

Seems like Prosper has lost or forgotten a lot of things, if you ask me.

[NewHorizon]

This line in the maintenance notice doesn't sit well with me, "While the site is under maintenance, none of your information will be lost or forgotten."

Seems like Prosper has lost or forgotten a lot of things, if you ask me.

I've seen that line in their past maintenance messages.

[ira01]

*"In the unlikely event that we receive payments on the corresponding borrower loans relating to your Notes after the final maturity date, you will not receive payments on your Notes after maturity."

WTF does this mean?  What is the final maturity date?  Knowing how Prosper does things, it is probably 3 years after the loan originates.  That would mean that if the borrower pays the final payment one day late, Prosper, not the lenders, would get the money.   

[NewHorizon]

*"In the unlikely event that we receive payments on the corresponding borrower loans relating to your Notes after the final maturity date, you will not receive payments on your Notes after maturity."

WTF does this mean?  ...

It means that Prosper is disincentivised from performing any collections until after the note matures whereupon Prosper retains those post-maturity payments.

ETA: 2-cents.