Referral Broker Application

By submitting this application and signing below, you are agreeing to the following in connection with information submitted by or on behalf of you to LBC Capital Income Fund, LLC (“LBC Capital”).

1. In connection with the submission of business purpose loans to LBC Capital, you (i) are registered, licensed, and in good standing with all applicable licensing and regulatory authorities. (ii) will maintain such registrations and / or licenses in good standing while submitting any loans to us, if applicable; and (iii) will not attempt to hold us responsible for any lack of licensing or registration you fail to obtain and / or maintain.
2. We have your permission to run a background check on you and/or the owners of your company who (i) have at least 20% interest in such company or (ii) are control persons for the company. We reserve the right to make decisions on your eligibility to submit commercial loans to us based on such findings.
3. You have permission from any and all applicants to submit their contact and/personal information to us for our use in considering such information in connection with a possible commercial loan in accordance with our underwriting guidelines and applicable law.
4. You will hold us harmless and fully indemnify us for any and all costs incurred and/or associated with any third-party claims (including reasonable attorneys’ fees) arising out of or relating to your submission of commercial loans to us in connection with this Application including but not limited to claims involving (i) the acts, errors, and/or omissions of you, your company, its employees, agents, directors, officers, and / or third-party contractors acting on your behalf; (ii) your failure to obtain proper licensing and / or registrations; and (iii) our reliance on and any of our lawful actions taken in connection with the information you submit to us; and
5. This Application is governed by and construed in accordance with the state of California. Any claims arising out of or relating to this Application shall be brought in any state or federal court located in California as the exclusive venue and you agree to waive any objections to jurisdiction you may have to appear in such courts.

By signing below on behalf of yourself or as a duly authorized representative of the company, you agree to have read, understood, and abide by the terms and conditions contained herein as of the Effective.

All Loan Brokers must be aware that the licensed Real Estate Broker or the licensed California Finance Lender Broker bears the responsibility for all actions of his or her Employees or Licensees. The Broker is responsible for the content and quality of each application taken and each loan submitted to LBC Capital Income Fund, LLC (“LBC Capital”). Submission of a loan application containing false information is a crime punishable by law.

Types of Loan Fraud:

1. Submission of inaccurate information including false statements on loan applications and falsification / forgery of documents purporting to substantiate credit, employment, deposit or asset information, personal information, including identity, ownership / non-ownership of real property.
2. Incorrect statements regarding current occupancy or intent to maintain minimum continuing occupancy as stated on the Security Instrument.
3. Lack of due diligence by Broker / Loan Officer / Interviewer / Processor, including failure to obtain all information required by the application and failure to request information as dictated by the Borrower’s responses to other questions.
4. Unquestioned acceptance of information or documentation that is known or should have been known or should be suspected to be inaccurate.
5. Allowing an applicant or interested third party to assist with the processing of the loan.
6. Broker’s non-disclosure of relevant information.

Consequences:

The effects of Loan Fraud are costly to all parties involved. LBC Capital stands behind the quality of its loan production. Fraudulent loans cannot be sold in the Secondary Market and if sold, will require repurchase. Fraudulent loans damage LBC Capital’s reputation within the Secondary Market and the price paid by those who participate in Loan Fraud is even more costly.

I have read the foregoing and fully understand LBC Capital’s position on Loan Fraud. Neither this Broker nor any party acting on this Broker’s behalf will knowingly and/or wilfully engage in the practice of Loan Fraud that results in the origination and subsequent submission of a fraudulent loan to LBC Capital.