Issue link: http://e-delivery.uberflip.com/i/539452
2015 ANNUAL REPORT FINANCING ADVANCED BY KV PROVIDED THE IMMEDIATE CAPITAL NEEDED BY THIS BORROWER TO PAY OUT A VENDOR TAKE BACK ON THIS 1.56 ACRE COMMERCIAL LOT WITHIN CALGARY. THE LOAN IS SECURED BY FIRST MORTGAGES ON BOTH THE COMMERCIAL LOT AND A 0.41 ACRE RESIDENTIAL LOT THAT IS ALSO IN CALGARY. CALGARY COMMERCIAL LAND Total Principal Outstanding $1,495,000 KV Mortgage Fund Principal $445,000 Mortgage Position First Loan to Value 51.55% Interest Rate 10.50% per annum Mortgage Term Remaining 10 months EDMONTON OFFICE Total Principal Outstanding $7,500,000 ($6,000,000 A Piece & $1,500,000 B Piece) KV Mortgage Fund Principal $3,000,000 A Piece $500,000 B Piece Mortgage Position A Position in First B Position in First Loan to Value 33.00% 42.00% Interest Rate 10.00% per annum 10.00% per annum + monthly supplemental fee of 25 basis points Mortgage Term Remaining 5 months 5 months EDMONTON AREA RESIDENTIAL CONSTRUCTION Total Principal Outstanding $2,008,342 $1,731,770 KV Mortgage Fund Principal $908,729 $831,770 Mortgage Position First First Loan to Value 66.49% 63.97% Interest Rate 10.50% per annum 10.50% per annum Mortgage Term Remaining 4 months 4 months KV'S MORTGAGE ALLOWED THE BORROWER TO COMPLETE CONSTRUCTION OF THIS 40,000+ SQUARE FOOT BUILDING AND UNDERGROUND PARKADE IN EDMONTON WHILE LONG TERM FINANCING IS ARRANGED. THE PROJECT WAS 80% COMPLETE WHEN THE LOAN WAS ORIGINATED DURING THE THIRD QUARTER OF FISCAL 2015 AND CONSTRUCTION WAS COMPLETED BY YEAR END. THE CREATIVITY OF KV RESULTED IN A FINANCING SOLUTION THAT CAN KEEP PACE WITH THE VELOCITY OF THIS BORROWER'S SINGLE FAMILY HOME CONSTRUCTION, AND SIMPLIFY THE MANAGEMENT OF CAPITAL WITHIN THE MULTI-ENTITY STRUCTURE. THE MORTGAGES OPERATE SIMILAR TO A LINE OF CREDIT WITH CROSS COLLATERALIZATION FEATURES THAT SPAN TWO SEPARATE LEGAL ENTITIES AND 14 INDIVIDUAL PROPERTIES AT YEAR END. 8