Frequently Asked Questions on CD Royalty Loan L.P.
Are there fees associated with a CD Royalty Loan?
Will I have any personal liability associated with the loan?
No. You have no personal liability with a CD Royalty Loan.
Can I still qualify for a CD Royalty Loan if I have a low credit score or poor credit history?
Your producing mineral interest is your credit. We do not factor your personal credit standing in our loan approval process.
What personal information does CD Royalty Loans L.P. need to process my loan application?
A copy of the two most recent monthly royalty check stubs or statements will start the process.
What are the terms of a CD Royalty Loan and how are my payments calculated?
Generally, loan terms range from five to seven years. Your loan payments will be calculated based on your monthly royalty check.
Is there a minimum loan amount?
Yes. The minimum loan amount is $15,000. In most situations, to be eligible for a loan with CD Royalty Loans L.P., your monthly royalty check from the production company should be a minimum of $500.
What determines the amount of loan I can receive?
Your loan amount will be determined primarily by two factors: the quality of the producing well and the amount of your monthly royalty payment.
What type of loan will I have and what will be the interest rate?
Your CD Royalty Loan is a collateral loan that is secured by your mineral ownership interest; the interest charge is generally calculated on a monthly basis and determined by the average daily balance of your loan amount. Interest rates are usually 10%. Know that interest rates can vary due to the rate environment. We are glad to answer current interest rate questions at any time.
How soon will I start receiving my royalty income again?
Once your loan is paid in full, CD Royalty Loans L.P. will re-direct the royalty payments back to you.
Who pays my ad valorem taxes on my royalty during the term of my loan?
CD Royalty Loans L.P. will pay the ad valorem taxes each January during the term of your loan. The ad valorem taxes are paid by CD Royalty Loans L.P. on your behalf. The are reimbursed from the monthly royalty check.
How will I make my payments to CD Royalty Loans L.P.?
Your loan payments will be directly sent to CD Royalty from the producing well operator. Your monthly royalty income payment represents your monthly loan payment. We will release all liens associated with your loan will be released when the balance is paid in full.
Is there a penalty if I pay off the loan early ?
No. There is absolutely no penalty. You may pay off the loan at any time!