DEFINITION of 'Member Payment Dependent Note'

A note that is issued by Lending Club. The income from these notes is used to make loans to club members. Member Payment Dependent Notes, issued in 2008, had an initial maturity of just three years and four business days and accrued interest from the date of their issuance. Payments are made monthly, and the loans have no underwriters and therefore no discounts from underwriters.

BREAKING DOWN 'Member Payment Dependent Note'

Member Payment Dependent Notes are highly speculative in nature and should only be purchased by aggressive investors who can absorb the loss of their entire investment. However, these notes also pay a very high rate of interest, ranging from about 7% to nearly 20%, depending upon various factors. Because of the lack of market for these notes during 2009, many investors purchasing this note were expected to hold the note to maturity.

RELATED TERMS
  1. Investment Club

    A group of people who pool their money to make investments. Usually, ...
  2. Note

    A note is a financial security that generally has a longer term ...
  3. Savings Club

    A non-incorporated group that has opened some type of savings ...
  4. Construction Loan Note - CLN

    A short-term obligation in the form of a note, used for the funding ...
  5. Paris Club

    An informal group of creditor nations whose objective is to find ...
  6. Senior Notes

    A debt security, or bond, that takes precedence over other unsecured ...
Related Articles
  1. Investing

    Benefit From A Winning Investment Club

    Joining an investment club isn't a get-rich-quick scheme, but it can help you learn the ropes or sharpen your investing skills.
  2. Investing

    What You Learn at University Investment Clubs

    University investment clubs are where Wall Street and the classroom intersect.
  3. Investing

    The Benefits Of An Investment Club

    Don't want to be a passive investor? Discover how investment clubs allow you to take control of your portfolio.
  4. Investing

    Lending Club to Announce Earnings Oct. 27 (LC, GS)

    Lending Club enters its second year as a publicly trading company, adjusting its risk management to stem losses.
  5. Financial Advisor

    The Best Yacht Clubs in New York

    A manifest of the best gathering places for the maritime crowd in New York.
  6. Managing Wealth

    5 of the Best Yacht Clubs in San Francisco

    There are lots of avid sailors in the City by the Bay and plenty of clubs where they can gather, berth their yachts and participate in races.
  7. Managing Wealth

    Principal-Protected Investments: Risks, Fees And Regulations

    Discover if these investment instruments hit the right note for you.
  8. Investing

    What's a 10-Year Treasury Note?

    A 10-year Treasury note is an intermediate debt obligation issued by the United States government, and with a ten-year maturity date.
  9. Investing

    The Differences Between Bills, Notes And Bonds

    Treasury bills, notes and bonds are all marketable securities sold by the U.S. government to pay off debts and to raise cash.
  10. Investing

    Now You Can Trade P2P Loans with Folio Investing

    A drawback of investing in peer-to-peer (P2P) loans was that you were stuck with them for the entire term. Now you can trade them with Folio Investing.
RELATED FAQS
  1. How can I find an investment club in my area?

    Investment clubs have been around for several decades and are simply groups of people who get together to invest. While the ... Read Answer >>
Trading Center