It is important to us that our investors do not have to bear LEND's counterparty risk.
We have therefore chosen a legal structure that would allow investors to enforce their investments against borrowers even without LEND. Technically, investors purchase a (partial) loan claim from LEND and receive it by assignment. This gives them an independent claim against the borrowers. LEND's bankruptcy does not change this.
An investor could therefore collect its (partial) loan claim directly from the borrower. This is of course not the aim and, as long as LEND is responsible for administration, this is contractually excluded.
We assume that even if LEND were to cease business operations, the management and settlement of current loans would be covered by the ongoing fees until the end of their individual terms. This should enable management within LEND or a rescue company.