Understanding Funding Contracts

The software can generate funding contracts for Plaintiff Funders. The template/s to be used should be provided by the users and it will be uploaded by Justice Bolt for the users to use. The information will be pulled from what’s being input onto the software. 

The payoff period and its value are based on what the organization provides to Justice Bolt as well. They can be set into 3-month, 6-month, or 12-month increments (or more). The interest rate will be provided by the organization as well. It’s important to know that the software doesn’t do its own calculations but just bases it on the information set up.

What are the steps to use and generate the contract?

1. Once an application is approved, the Generate Contract button will be highlighted so that the user can generate it.
   
   
2. After clicking the Generate Contract button, this interface will pop up on the software.
   
   
3. Choose which contract template will be used for the contract. The default selection is the first on the list. Each template is set up based on the provided rates and time-based settings by the organization.
   
   
4. Under the Principal section, it’s necessary to input the total amount of funding. From here, the amount granted to the plaintiff, a buyout amount, and other capitalized fees can be added if needed.
   • Buyout - Add a new Funder Name, Buyout Amount, and Expiry Date (Expiry Date is optional)
     
     
   • Fees - There are 5 types of fees available in the dropdown menu. These options are not customizable. We understand that some fees may be labelled differently in your contract templates - these labels are just internal in the software. Our Data Team will still map these fees to the correct field in your template. This will be discussed with you prior to your contract being coded in the software.
     
5. Under Flat Fees, users can add flat fees to their contracts. The only difference between putting the fees under Principal and putting it under Flat fees is that fees put under Flat Fees don’t accrue interest.
   
   
6. The user should input the contract dates so that the payoff period is set up correctly. There are two date fields under this section - Agreement Date and Interest Start Date.
   
   
7. To complete the contract, users should check the terms set up for the contract template chosen to be used. By default, the Rate of Return cannot be edited, however, this can be requested to be editable from the Justice Bolt Support Team via email ([e-mail]).