A renewable unsecured subordinated note is a promise to pay the principal and interest on the note to the holder by Consumer Porfolio Services, Inc. By purchasing a note, you are lending money to CPS. The note represents CPS ’s obligation to repay your loan with interest.

When the loan matures, you can elect repayment of the note and your investment will be returned to you along with any accrued but unpaid interest. However, if neither you nor CPS elect to repay it at maturity, the note automatically renews for another term and continues to earn interest.

CPS notes have terms to maturity ranging from three months to ten years. Depending on CPS’s capital needs, certain note terms may not always be available. 

Interest rates are determined at the time a note is purchased or renewed by its term to maturity and the aggregate principal amount of all CPS notes then owned by you and your immediate family members.

The notes earn incrementally higher interest rates when the aggregate principal amount reaches $25,000, $50,000, $75,000 and $100,000.

Immediate family members include parents, children, siblings, grandparents, and grandchildren. Members of sibling families are also considered immediate family members if the holder’s sibling is also a note holder. Please identify on the subscription agreement your immediate family members that currently own or are concurrently purchasing notes.