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[Urbi_et_Orbi]

*"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.

That's outrageous, but no longer surprising.

[xraider]

*"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.    

That's what it looks like to me.  Outrageous, isn't it??

ETA:  Good thing this thread is in the lobby.  It should be required reading for all potential lenders.

[Shenandoah]

*"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.   

I do believe that 3 years after the loan originates would be the correct definition of "maturity date."
I do not like what that implies, though.

[no-whammies]

This would apply to originations after October 2008, yes?

[112233]

*"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.

That's outrageous, but no longer surprising.

who receives the payments? are they contractually obligated to forward them to the debt buyers? (assuming the notes were sold)

[xraider]

This would apply to originations after October 2008, yes?

Unless Prosper declares these changes are retroactive, which they've done before.

[ira01]

This would apply to originations after October 2008, yes?

Or to originations after 7/10/09, depending on whether that language was in the legal agreements when prosper briefly reopened. 

Of course, we know that Prosper has violated the legal agreements in other ways, including the most recently exposed theft from lenders -- where Prosper admitted to reducing principal on existing loans despite the express prohibition on Prosper's doing that in the then-operative contracts between Prosper and the lenders.  http://www.prospers.org/forum/prosper_files_another_s1a_june_1_2009_and_again_june_26-t13926.0.html;msg251297#msg251297

[brianguy]

wow, just wow.  most unexpected.  even by me (who never expected the Prosper / SEC stuff to drag out forever).

[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.

That's outrageous, but no longer surprising.

who receives the payments? are they contractually obligated to forward them to the debt buyers? (assuming the notes were sold)

I don't think that selling to a JDB can be assumed:

We may, in our sole discretion and subject to our servicing standard, refer a borrower loan to a collection agency at any time, or elect to initiate legal action to collect a borrower loan or sell a borrower loan to a third party debt buyer at any time.

So as long as they act in "accordance with industry standards customary for servicing loans" - a phrase which I think is open to a wide range of interpretation - it's all up to Prosper's "discretion".

[NewHorizon]

What is the final maturity date?

Answer:

Prosper Borrower Notes currently have a term of three years, but Prosper anticipates in the near future extending available maturity dates to between three months to seven years.  If there are amounts owing to Prosper in respect of the corresponding borrower loan at the initial maturity of a Note, the term of the Note will be automatically extended by one year, which we refer to as the “final maturity,” to allow the Note holder to receive any payments that we receive on the corresponding borrower loan after the maturity of the corresponding borrower loan.  However, because we may, in our sole discretion and subject to our servicing standard, amend, modify, sell to a third-party debt purchaser or charge off the borrower loan at any time after the 31st day of its delinquency, and we generally will charge off a loan after it becomes more than 120 days past due, such borrower loan may never reach the final maturity date.  Following the final maturity of a Note, the holder of that Note will have no right to receive any further payments from Prosper even if the borrower under the corresponding borrower loan, or a bankruptcy trustee, subsequently remits payments to Prosper or the servicer of the borrower loan.

Separately, as I read it, a charged-off note never reaches final maturity.  So I think that means note holders ("lenders") would still receive their share of any post charge-off payments.
ETA: well, unless the loan has been sold - in which case it's just gone.

[onthefence]

This would apply to originations after October 2008, yes?

Not unless you accidentally agreed to one of the FuTOS agreements to access your money.

[no-whammies]

This would apply to originations after October 2008, yes?

Not unless you accidentally agreed to one of the FuTOS agreements to access your money.

How do you check for this?

[onthefence]

How do you check for this?

I don't know.  I guess you would have to contact their customer service representatives & ask which is the last agreement they claim you agreed to & the text it contained.

[mtnchickatstore]

How do you check for this?

I don't know.  I guess you would have to contact their customer service representatives & ask which is the last agreement they claim you agreed to & the text it contained.

When they "accidentally" upped the minimum transfer out for GA to $25 they also added a link to a new agreement. I didn't agree to it. I think the CA people were presented with that option too. I suspect they are taking advantage of the people who aren't reading everything

[dotk]

I just tried logging in.....
The site will be down 7/12 & 7/13

Think this is the beginning of a new phase?

Site is now back up. And it looks like they are ready to welcome back lenders.

http://blog.prosper.com/2009/07/13/welcome-back-lenders/

Not available in Oregon
Unfortunately, at this time lenders in Oregon are not able to bid or transfer money to Prosper. If you have portfolio plans, they have been paused. You may transfer money out of your Prosper account as they become available from loan payments.