Cash Collateral and Cosigner(s)

In addition to the requirement for ACH (Automatic Check Handling) for automatic loan payments, some
high risk clients, as a condition of loan approval, may be required to submit cash collateral and/or a
credit worthy cosigner(s). In some cases, there may be the additional requirements to have a cosigner
either become the primary and therefore the responsible party to pay the loan, or requirements to have
the loan payment be deducted from their account. These tools help SELF reduce the overall risk of
default and still provide access to capital for high risk clients.

• Cash Collateral Cash collateral (CC) is an added security measure for SELF’s unsecured consumer
loans. CC will be utilized one of two ways as long as the loan is paid successfully with no default.
SELF will monitor the loan balance and notify the client once the balance gets close to the cash
collateral amount that was submitted. Client(s) can choose to do one of the following:

o Pay off the loan with the cash collateral and the remaining amount, if applicable, will be
refunded, or
o Pay the loan in full by going to term and then the cash collateral will be refunded in full
once the loan has been satisfied.


o Cash collateral will be applied to the loan loss reserve, in SELF’s escrow account, and will
ONLY be used for the purpose of loan collateral only.

o This loan collateral does not constitute in any way a deposit.

o All or part of this cash collateral cannot be used in lieu of a payment or multiple
payments missed or planning to be missed.

o In the case of a bankruptcy, death, and/or default, all of the cash collateral submitted
will be utilized to reduce the loan principal balance, prior to legal action and/or charge-off of the loan.

o Cash collateral may be paid online at collateral-payment/ or by cashier’s check or money order sent to SELF at P.O. Box 5506, Fort Pierce, FL 34954.

We’ll be happy to answer any questions you may have. We also keep a copy of the cashier’s
check or money order(s) and the signed collateral form in your file.

• Cosigner(s) help reduce risk and increase the success of approval. SELF requires that ALL parties
listed on the title of the home, being improved, to cosign on the loan. Likewise, couples that
cohabitate should both be on the loan unless one of the parties does not appear on the title.
Keep in mind, since SELF uses budget-based financing criteria and proof of ability to repay, it is
beneficial to the overall application if all parties apply. As noted above, sometimes, additional
“credit worthy” cosigners may be required due to poor credit history or insufficient income.
“Credit worthy” cosigners have strong credit histories and sufficient income to pay the loan in
the event the applicant(s) cannot. Co-borrowers are equally responsible for all SELF loans as a
joint signer. Although SELF does not use credit score as one of its determining factors, based on
our experience, and as a guideline to help clients identify potential cosigners, “credit worthy”
cosigners usually have credit scores around 680 or abov