[sudo-discuss] Re: [omni-consensus] proposal: lawyer help to create LLC structure for lending

Sudo Room has been discussing the possibility of securing the $876k by pursuing multiple lenders, rather than just one. The idea proposed is below, but the proposal for the delegates is to ask our lawyer to help us write up some sort of structure like this, to present to potential lenders. LLC idea We create an LLC who's charter says it exists solely to buy this building with the money of its lenders, and collect interest on that loan. We try and get enough people to buy in, before Omni's foreclosure begins. Right now, Jake says they knows of 5 people interested in putting up 5 digits amounts, so in the $50k range. Proposed would be to have a minimum $10k requirement to join LLC, with option for individuals to join together and pool money to get a share. If all goes well and Omni pays off the full loan + interest, those who are part of the LLC will have received back the money they put towards paying off the mortgage, along with interest (and then the LLC would dissolve?). But if the borrower (Omni) fails to pay, then the LLC forecloses on the property, and the LLC can then choose to liquidate the property to pay back members or do something else with the building. If some but not all LLC members decide to do something else other than liquidating, they have ability to buy out other members. One concern is our lawyer would say that it would be inappropriate for them to create an org that would then lend to Omni (should have more separation). Another idea proposed to get around this was to issue bonds instead, since this would not require a separate entity, and we could work with our current lawyer on setting that up. Another concern is potential sabotage of the system, by getting overwhelmed with lenders wanting and working to get Omni to foreclose, in order to get control of the building. To work around that we might require anonymous lenders to be vetted by known trusted lenders. There is more discussion on this idea in sudo room's meeting notes: https://sudoroom.org/wiki/Meeting_Notes_2023-12-13 Paige _______________________________________________ consensus mailing list consensus(a)lists.omnicommons.org https://omnicommons.org/lists/listinfo/consensus