The Borrower Will not Pay Back Loan and I Can't Collect the Collateral
An unsecured uncollectible note requires an uncollectible promissory note form to be completed. However, if the note is secured and uncollectible, a fair market value form must be submitted for the securing collateral.
For Unsecured Uncollectible Promissory Note:
For Secured Uncollectible Promissory Note:
Fair Market Value Form
(Must be remitted via mail or overnight delivery)
Send Information to Equity Trust Company
Please remit forms by one of the methods found below. Once received, our knowledgeable staff will review the paperwork and contact you should there be any information that is further required. Your investment will then be updated based upon the information you provided.
If you require further assistance, you may contact our office via email at firstname.lastname@example.org
You will receive the first notice informing you that our records indicate you have a matured note.
If no action has been taken, you will receive a second notice reminding you that action is required.
If no action has been taken, you will receive a third notice reminding you that action is required.
Fourth Notice & Fee
If no action has been taken, your account will be assessed a non-refundable Matured Note Fee of $75 for each unresolved note. You will also receive a notice informing you when to expect the investment distribution if you do not take immediate action to resolve the matured note.
Your investment will be distributed at the last known value and reported to the IRS as taxable income. This may result in 10% tax penalty if you are under the age of 59½.
Q: I received an expired promissory note notice, what do I need to do?
Matured Promissory Note FAQ
A: Review the possible circumstances that apply to your account on this page and follow the directions to resolve. If a scenario doesn’t apply to your situation, please contact Equity Trust by email at email@example.com.
Q: What should I do if the promissory note was paid off but it is still showing in my account?
A: Provide Equity Trust Company with the Promissory Note Satisfaction direction of investment form indicating the date and amount of the payoff. Please remember that any return on your investments must be deposited into your account.
Q: Why must the borrower sign if I choose to extend or modify the terms of the promissory note?
A: The original promissory note requires the borrower’s signature acknowledging the terms of the loan. Any modification made to the terms of the existing note should also be acknowledged by the borrower to ensure he or she are in agreement.
Q: What if I cannot contact the borrower?
A: You may choose to deem the promissory note uncollectible. In order to do this you must provide sufficient evidence that you have attempted to contact the borrower. Supporting documents are required in order to allow Equity Trust Company to reduce the value of the promissory note.
Q: How long do I have to submit required paperwork for my matured promissory note?
A: You should submit paperwork upon learning of your matured investment. Once we receive the paperwork, you will be contacted if additional information or clarification is needed.