Pirate Pass Through (PPT) BondsPirate rates for the small investor!
Each week we will issue up to 2000 bonds.
These bond auctions will take place every Saturday morning at 2 AM UTC.
That is every Friday evening at 7 PM PDT, 8 PM MDT, 9 PM CDT, 10 PM EDTThese bonds will have a face value of 1.00 BTC when purchased but will be bought back for 1.28 BTC exactly 28 days from purchase on Saturday morning at 12 AM UTC.
That is every Friday evening at 5 PM PDT, 6 PM MDT, 7 PM CDT, 8 PM EDT.
Doing it this way allows customers who wish to bid on the next auction two hours in which to place their bids and gives everyone two free hours of interest on their money.
The face value of all bonds sold will be deposited directly into a account at Bitcoin Savings and Trust (formerly First Pirate Savings and Trust)
We reserve the right to buy back the bonds at any time during the month for the 1% per day prorated daily rate. In other words if we buy back the bonds 15 days after purchase you will get 1.15 per bond. Further clarification of this point:
In the event that BS&T stops payments or changes its terms and conditions so that the intended pass through of interest is either stopped, pays lower interest or at a schedule that does not align with PPT bonds, PPT reserves the right to buy back the currently issued bonds by paying the coupon (currently 1% per day, accrued, simple interest) to current holders.
These bonds are partially insured and backed by a cartel of some of the most reputable and well known BTC lenders in the lending forums: BurtWagner, PatrickHarnett, dollartrader, hashking, imsaguy and ineededausername.
In the case of any default by BS&T you will receive at least 25% of the original face value of the bonds from the capital reserves of PPT. So PPT is basically stripping the interest from a Bitcoin Savings and Trust (BST) saving account and offering 2000 bonds per week with a
face value (the amount paid to the bondholder at maturity) of 1.28 BTC per bond that will be paid 28 days after they are released with 2 conditions.
1. 25% of the "face value" is covered by loss in case of a default and loss of principle from BST.
I have a question about this. You state that face value is the PPT bonds is 1.00 BTC, but the actual definition of face value for a bond is the amount paid to the bondholder at maturity, thus the actual face value of PPT.A bonds would be 1.28 BTC. Are you saying that in the event of a BST default and loss of 100% of principle that the bondholders would receive 0.32 BTC per bond (1.28 BTC X 25% = 0.32 BTC) or 0.25 BTC per bond (1.00 BTC X 25% = 0.25 BTC)?
2. In the event that interest payments from BST is below your expectations then PPT can buyback the bonds at 1% per day on the initial bond listing price of 1.00 BTC per bond.
Does that seem like an accurate understing of the contract?