The Disbursement Notice is an essential tool for managing incoming funds within the system. This notice is automatically generated when an investment goes live, and all required funds have been received from the investor.

The disbursement notice allows for the prioritization of payments and facilitates sending payment instructions to the accounting team for final processing. Once the payments have been completed, the system will automatically update and mark them as finalized.

This documentation will guide you through the disbursement notice process and its key functionalities.

How to prioritize payments #

The Disbursement Notice Validator is the designated individual responsible for processing the disbursement notice. This role can be assigned by the account manager. For more information on setting up a disbursement notice validator, please visit this link to learn more about the account management settings.

When a new Disbursement Notice requires processing, you will receive a notification via your registered email. Additionally, a red notice will appear on your dashboard, indicating that action is required to process the Disbursement Notice.

1. Login to your InvestorDisplay account
2. Click “Process” on the red highlighted Disbursement Notice tab
3. Select and click “Process” on one of the Disbursement Notice’s

Payment Categories: #

Payments are categorized into 5 categories:

• “Rollover Fee Notes” – Are outstanding agent fees assigned to rollover investments
• “Outstanding Fee Notes” – Are outstanding agent fees assigned to cash investments
• “Noteholder Disbursements” – Are outstanding payments for investors, such as, interest payments, coupon payments, and principal redemptions
• “Delayed Noteholder Disbursements” – Are outstanding payments for investors that have been outstanding for more than 2 months.
• “Invoices” – Are outstanding invoice payments

Step 1: Modify Payment Category Percentages #

Each payment category is assigned a default percentage of the total Disbursement Notice amount to simplify the payment process and make it easy to allocate funds across categories. The default percentage is set to 20% for each category, but this can be adjusted to meet specific payment priorities.

To modify the default percentages:

1. Select the amount field within the category you wish to adjust.
2. Enter the desired amount for that category.
3. The percentage field will automatically update based on the new amount you have entered.

Important Notes:

• You cannot disburse more funds than the total amount stated in the Disbursement Notice. For example, if the Disbursement Notice is for USD 100,000, your payments cannot exceed this total.
• The total percentage across all categories cannot exceed 100%. If you need to increase the percentage for one category, you must reduce it from another.
• Any unused funds from the Disbursement Notice will automatically be added to the “Reserves” and can be utilized later through a manual Disbursement Notice, if needed.
• If you do not plan on paying funds for a specific category, change the category amount to “0”. This would mean that no funds will be allocated to that category.

This process allows flexibility while ensuring that disbursements remain within the set limits.

Step 2: Prioritize Payments #

Once you’ve adjusted the disbursement amounts for each payment category, you can proceed to prioritize the payments within those categories. Follow these steps:

1. Click “Prioritize Payments” for the selected category.
2. Select the payments you wish to pay out.
3. Click “Prioritize” to confirm the selected payments.
4. The category will turn Green, indicating that the prioritization of payments has been completed for that category.
5. Repeat the process for each category.

Once you have prioritized payments for all categories, click “Initiate” to send Payment Disbursement Instructions to the assigned accountant to finalize the payments.

Split Payments #

You have the option to split payments, allowing you to make partial payments as needed. This feature provides flexibility when managing payment disbursements within the allocated amounts for each category.

1. Hover & click on the amount field
2. Enter in the amount you want to pay for that payment
3. Ensure the entry has been selected with a “check mark”
4. The remaining amount of that payment will automatically be split, and can be processed later with a new Disbursement Notice.

Important Notes: #

• You cannot exceed the total amount allocated to that category. For example, if a category is assigned USD 20,000, you can only select payments within that category up to a maximum of USD 20,000.
• Payments in a different currency than the Disbursement Notice can still be selected. However, a general currency conversion will be applied. The platform accountant will review and update the exact amount disbursed for these payments.

Signing the Disbursement Notice #

Once thOnce the payments have been prioritized and initiated, the assigned accountant responsible for finalizing the payments will receive a DocuSign email to complete the signing process. The DocuSign will include the following details:

• A summary list of all payments prioritized within the Disbursement Notice
• Supporting documentation for each payment, including Payment Disbursement Instructions

Signing Process: #

1. Open the DocuSign email.
2. Enter the payment date for each payment listed in the document.
3. Sign the document to confirm.

Important: #

Completing the signing process is essential. Once the Disbursement Notice document has been signed and finalized, the system will automatically mark the payments as “Transacted.” This indicates that the payments have been successfully made, and the payment receivers will be notified that the payment has been initiated.