AMERICAN OPPORTUNITY FRANCHISE FUND IV
This is the entity into which the investor pays the $500,000 which is held in an escrow account and then becomes the collateralized senior secured loan to the multi–unit Dunkin operators.
COLLATERALIZED LOAN
Collateralized Loan obligations (CLOs) are a form of securitization where payments from multiple middle sized and large business loans are pooled together and passed on to different classes of owners in various tranches.
ESCROW
An escrow is a financial instrument held by a third party on behalf of the other two parties in a transaction. The funds are held by the escrow service until it receives the appropriate written or oral instructions or until obligations have been fulfilled.
GREEN CARD
Greencards is a permit allowing a foreign national to live and work permanently in the US. Employment-Based fifth preference visa is also known as the Green Card.