Esoteric Asset Loans are secured by moveable hard assets of high value such as art, gemstones, precious metals, and other collectibles. These loans are primarily underwritten based on the valuation of the esoteric asset, and in case of a default by the borrower, OBC has full recourse to liquidate the esoteric asset collateral to recover any loan amount outstanding.
Loan Amount: Minimum loan amount is $500,000 USD.
Currency: USD, CAD, EUR
Collateral: Esoteric assets such as gemstones, art, precious
and specialty metals and other collectibles for
which a wholesale market value can be
assessed, and which can be stored with a
third-party for the duration of the loan.
Loan Term: Maximum 1 year, subject to asset market
Interest 12% to 20%, payable upon loan disbursement.
Payment Terms Interest is deducted from loan
disbursement. Principal due in a single
lump sum upon loan maturity.
Extensions Extensions available by mutual agreement,
subject to extension of financial instrument.
The Esoteric Asset Loan is underwritten primarily based on the wholesale market value of the asset proffered as collateral. Borrower credit-worthiness and/or project feasibility take secondary importance. OBC will undertake customary legal and financial due diligence on all material aspects of the financing transaction including but not limited to the collateral, the borrower/project and the use of funds.
The most important aspect of underwriting is the appraisal process through which we arrive at wholesale market value. Based on the type of asset being analyzed and its location, AIF will engage the services of a qualified world-class appraiser. The appraiser will first perform a technical analysis of the asset to determine its exact specifications including the analysis of its physical, chemical, compositional, visual, and other characteristics.
After the technical analysis is completed, the appraiser will undertake a market study to determine the wholesale market value which is defined as the price at which all of the assets could be immediately sold to dealers in the marketplace. In arriving at wholesale value, the appraiser will study historic and recent sales of similar assets and will also contact market dealers.
WE LEND AGAINST ASSETS WORLDWIDE
STOCKS AND BONDS
FINE ART COLLECTIONS