The initial audit of LifeNotes Fund I will commence by June with an audit date of 12/31/2023 followed by an interim unannounced audit in fiscal year 2024 and subsequent fiscal year audit for 12/31/2024. Each of these audits will be fully available to each Grantor once released.

The maximum size of LifeNotes Fund I is $500,000,000 in cash value. Once $500,000,000 is reached, LifeNotes Fund I will close new subscriptions and LifeNotes Fund II will be opened.

LifeNotes provides a monthly statement to each Grantor within 3 business days after month-end. LifeNotes also provides Quarterly asset valuation statements that look through to underlying life insurance values on a per policy basis). Fiscal year end reports include full audited financials.

LifeNotes is an exempt security under Regulation D and Section 4(6) and is subject to Rule 144a on transfers under the Securities Act, CIK (Filer ID Number) 1982668

The credit quality of Assets in LifeNotes Fund I is dependent on the Carriers that issue the Life Insurance Contracts. As Policies are added to LifeNotes Fund I, the limit on Carrier Credit is established in the Agreement as Carriers with a COMDEX score of 85 or greater (85th percentile by aggregate credit ratings or better) and credit agency ratings in the top 4 categories.

As of 4/30/2024, Life Notes Fund I

• 18 Total Insurance Carriers
• Weighted Average Comdex: 95.02

The values represented by such Policies have maturities ranging from 10 years to over 40 years and the COMDEX and credit ratings of Carriers are a point-in-time measurement that can change over the LifeNotes Fund I Duration. Rating agencies include the long-range viability of Carrier Issued Policies and the ability to pay death benefit obligations as well as bond issues, however, systemic factors remain outside the scope of such ratings.

Fund I pay an asset-based fee for the management and administration of the trust. The fee is paid from the securitized spread, so it doesn’t reduce the cash value yield and has no impact on benefit payments.

Capaxa, LLC is the trustee. Capaxa is a limited purpose entity formed for the sole purpose of providing trustee services for LifeNotes Statutory Trust including the series trust LifeNotes Fund I.

• Stearns Financial Group is the Fund Administrator and is responsible for life insurance asset administration and has more than 50 years of Life Insurance Management expertise.
• Juniper Square is the fund recordkeeper. They provide Grantors, as certificate holders, with statements, account details, transaction, and trust information through their online portal.
• Wilimington Trust Company is the custodian of record for Asset documents and is the backup Trustee.

Stearns Financial Group is the TPA and they have been providing TPA services for executive benefit plans at credit unions for over 30 years.

Angell Pension Group is an experienced Pension, 401(k), and Non-Qualified Deferred Compensation TPA and they are assigned as the back-up TPA should anything happen to Stearns Financial Group.

Yes. LifeNotes has a secure virtual data room that houses all our due diligence documents. We can provide access to the data room once an NDA has been executed.

The investments are limited to either Life Insurance (in applicable classes) and are applicable to 701.19 examination procedures, or if allocated as regularly permissible investments, examined under section 703.14 (in applicable classes). LifeNotes Fund I has an Investment Policy Statement (IPS) as part of the trust founding document (Pooling and Servicing Agreement, PSA) that enforce this restriction.

Institutional investors. To date all Grantors in LifeNotes Fund I have been non-profit institutions (primarily credit unions).

No. The key employee remains the owner of their Life Insurance and the arrangement set up between Employer and Employee via a Split Dollar Arrangement Agreement remains enforceable with all existing tax provisions in place.

LifeNotes certificates are backed by cash, cash value in life insurance policies and other assets limited to NCUA 703.14 permissible investments such as government receivables.