What happens contractually and legally in a convertible loan?

Contractually, for investors who choose to convert their loan, the respective loan agreements will be settled for the converted amount. 

The loan payment plan for the non-converted portion will remain as originally settled. Investors will be referred to the promoter, who will include them as shareholders of their organization. 

In practical terms, the investor can find in his personal Goparity page, within the invested projects section, the confirmation that the loan was converted.

If the investor converts 100% of the borrowed debt, the total amount, shown in the progress bar, will correspond to the total amount invested and now considered settled, via conversion, plus the interest received to date. 

In the case of a partial debt conversion, the progress bar will be updated to the new total amount receivable, this is, the sum of non-converted invested capital and interest (received and receivable). Thus, the progress bar will not be at 100%, indicating that there is capital outstanding remaining. 

For example, in the Biovilla project, by investing 2.000€ at an interest of 4,75%, including 12-month grace period a loan term of 5 years, you can convert the debt into at least 4 shares worth 500€ each, after the established period of 12 months. In this case, you would see, in the progression bar of the example image above, a total amount earned of 2.000€, plus the net interest received during the first 12 months of the loan, and the indication that the investment is paid off or 100% paid. 

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