What does it mean when my investment's segregated security is for sale?

Full question:

I have a promissory note with an investment company in California and I opted for a 6 month payment penalty for early redemption. They replied that the segregated security regarding my investment has been submitted for sale and the proceeds awaited. What does this mean please?

  • Category: Debts and Credit
  • Subcategory: Promissory Notes
  • Date:
  • State: California

Answer:

Your investment is secured by a specific property, which is being sold. The company is trying to sell this property to generate funds to repay your loan. Once the sale is completed, they will use the proceeds to fulfill their obligations to you.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Yes, a promissory note can often be paid off early unless it contains specific terms that prohibit early repayment. However, if there are penalties for early redemption, like a payment penalty, you should be aware of those costs before proceeding.