Last update: August 13, 2020
Historically, an unaffiliated third party named Folio Investments, Inc. (Folio) has offered a secondary market where investors could buy and sell Notes*. LendingClub was recently notified that Folio is being acquired by another financial institution and, as a result, the secondary market for Notes will be discontinued effective August 28, 2020. LendingClub is not planning to replace Folio’s secondary market.
Due to current state restrictions, investors who reside in certain states (AK, FL, NC, NM, NY, PA) have limited investment access to Notes and can only purchase Notes through the secondary market. Once Folio discontinues the secondary platform, these investors will not be able to invest in Notes.
Please know that the closure of the secondary market will not affect the Note investments in your LendingClub account, and your account will continue to be serviced by LendingClub as usual. However, without a secondary market, investors should be prepared to buy and hold their Notes to maturity.
Should you wish to buy or sell Notes on the secondary market, please keep these key dates in mind:
- August 18, 2020: The last day you can open a Folio account to trade Notes.
- August 26, 2020: The last day you will be able to list a Note for sale. Any remaining Note listings on the trading platform at the end of the day will expire or terminate. Any trades executed on August 26, 2020 will settle in accordance with standard settlement procedures on August 27, 2020.
- August 28, 2020: Investor account(s) with Folio for trading Notes will be closed, after which you will be able to log in to view statements and legal agreements only.
Please email you have any additional questions.
*LendingClub Member Payment Dependent Notes (Notes) are offered by prospectus.