Bond Account
An Alternative Opportunity to Invest in Larger Local Community Development using a digital liability account for community investment bondholders.
Bondholders
Debt and surety investors who provides capital, signature guarantee or both for community investment funds.
- $5000 min. investment
- .05% Annual Yield
- Redemption starting at $1,000,000
- Off-ledger Storage
- Certificate Tokenization
- QRC Linkage
Netting and Government Guarantee is available for qualified bonds.
Q&A
Bondholders
Bondholders are HSC’s corporate trustees that invests in bond issuers as community developers as corporations and governments offers. HSC Bondholders essentially grant money to bond issuers by giving them capital by purchasing bond issuers bonds. In return, bondholder receive their principal, periodic interest payment, or initial investment back when the bonds mature with a guarantor
How does Bondholders Benefit?
HSC Bondholders are first round investors within community programs that has priority over all other investors, which mean they are compensated first before any other investors outside the guarantors. They are rewarded investment dividend based on the following dividends chart below:
| Investment Duration | Investment Under $100,000 | Investment over $100,000 & up |
| 3 Years | 5.45% | 5.75% |
| 5 Years | 5.47% | 5.78% |
| 6-10 Years | 5.50% | 5.80% |
| Processing Rate | 0.3% | 0.5% |
What is a Guarantor
“Guarantor” is a financial term describing a HSC non-affiliates or accredited investor who promises to honor an investment stock grant margin or bond obligation if stockholder or bondholder defaults on their obligated amount that was granted. Guarantors can pledge their own intangibles or tangible assets as collateral against the grant allocation for compensation.
The term “guarantor” is often interchanged with the term “surety.”
Unlike a co-signer, a guarantor has no claim to the asset purchased by the borrower.
Understanding a Guarantor
A guarantor is typically an HSC investment creditor over the age of 18 and resides in the country where the grant allocation agreement occurs. Guarantors generally exhibit exemplary credit histories and sufficient income to cover the grant allocation amount if and it defaults, at which time the guarantor’s assets may be seized by the lender. And if the borrower chronically makes payments late, the guarantor may be on the hook for additional interest owed or penalty costs.
Guarantor Requirement
All Guarantors must have the following:
- Consent to regular dividends coupons from grant investment income.
- An asset or equity that can leverage investment
- Willingness to be an individual surety
- Minimum Qualified household income of $250,000
What Happens If a Guarantor Defaults?
If a guarantor cannot pay, both the guarantor and the issuer are liable for the obligations. The Servicer will begin collection proceedings against both the guarantor and the issuer.
Related Community Investment Accounts
Marging Account
Stock Account
