Monday, March 31, 2008

One clause that disappeared

Here's one clause that disappeared from Prosper's Lender Agreement in Section 5.

Notwithstanding the foregoing, in the event Prosper reasonably determines that a borrower committed fraud or made a material misrepresentation in connection with a Loan, Prosper may exercise any remedies authorized or permitted under the promissory note and applicable law on your behalf.
There are a whole bunch of new sections that were added, so I've not yet had time to see if this has been replaced by more comprehensive language on the issue. In the light of Prosper's "New Agency Test" where they repurchased some loans from lenders, I'd hazard a guess that there might indeed be some other language in the newer contract, right?

This clause disappeared somewhere between the original I received on May 5th, 2006 and the current agreement on their website.

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