Updates
Having Direct Bitcoin Deposits added to they system.
Working on adding links to the site.
Investment club system has been worked out and will work as follows.
A person/persons form a investment club. They decided there terms what they are looking to lend in and the req's for the loan such
I.D., Paystubs or whatever they want. Its your money you choose what you require from the borrower!
After all this has been decided in the group they find an Agent, the agent can be a member of the group or be someone who is not affiliated with the group. The agent gets all this information from the group then searches our private offering sections of our website only visible to Agents. Anyone who is a member of Crypto Pal can make a loan request. The agent then begins work on finding the best fit for the borrower and the group.
Example:
The High Risk Investment Club, has 50BTC they are willing to lend at a minimum of 10% interest. They Hire Agent XY to find a borrower that meets there criteria. The Agent then goes through the system and browses the options, he finds Acme inc producing magic widget's is willing to pay 15% and will provide all I.D needed. The Agent the tells the group he found a loan that pays 15% interest he charges 2.5% and the group will get 12%. ".5% system fee. If the group agree's it is then the agents job to state the terms of the agreement and come up with a contract. " we may have a system implemented for this in the future".
When the group gives the ok the funds are released to the borrower, the borrowers account is then set up with a auto-debit system that will with draw the funds every period.
The agent only gets paid if the loan is repaid! This makes the agents work to get good loans that repay! There is also a agent reference system that allows Groups and Borrowers to rate them.
This all follows the U.S. Investment Club laws. Your club is responsible for complying with the laws!
http://www.sec.gov/investor/pubs/invclub.htm
Quote
When does an investment club have to register the offer and sale of its membership interests with the SEC under the Securities Act of 1933?
Since the Securities Act requires the registration of the offer and sale of most securities, the investment club must first decide if its membership interests are "securities." Generally, a membership interest is a security if it is an "investment contract."
Generally, a membership interest is an investment contract if members invest and expect to make a profit from the entrepreneurial and managerial efforts of others.
If every member in an investment club actively participates in deciding what investments to make, the membership interests in the club would probably not be considered securities. If the club has any passive members, it may be issuing securities.
Sometimes offers and sales of securities do not have to be registered because they are exempt under the law. For example, a non-public offering is exempt.
Since the Securities Act requires the registration of the offer and sale of most securities, the investment club must first decide if its membership interests are "securities." Generally, a membership interest is a security if it is an "investment contract."
Generally, a membership interest is an investment contract if members invest and expect to make a profit from the entrepreneurial and managerial efforts of others.
If every member in an investment club actively participates in deciding what investments to make, the membership interests in the club would probably not be considered securities. If the club has any passive members, it may be issuing securities.
Sometimes offers and sales of securities do not have to be registered because they are exempt under the law. For example, a non-public offering is exempt.
