Residual Liabilities

A Liability Reserve will be established to cover residual or latent liabilities associated with onboarded assets equal to 10.00% of total liabilities identified and settled pursuant to the Liability Assessment. The borrower is entitled to the return of one-third of the remaining reserve amount on the first and second-anniversary date of the drawdown. Any remaining Liability Reserve will be applied to the outstanding principal of the Liquidity Facility on the maturity date.