Loans to creators and projects are predominantly structured against contractual revenue streams.

Loans are secured through the Government Incentives, Completion Bonds, and Insurance Policies, with a UCC filing in senior position.

Investors are direct beneficiaries of these layered security structures (“security stack”).

• Structured Collateral Description: Borrower pledges all project revenue streams, including distribution agreements, tax credits, and pre-sales. Ownership of intellectual property rights may be included on a case-by-case basis.
  
  

• Asset Class: Accounts Receivable.
  
  

• Liquidity: Backed by contractual obligations from credible counterparties (not solely performance-based).
  
  

• Perfection of Lien: UCC-1 filing and assignment facilitated by a State legislated Federal Development Corporation (FDC).

• No sale, transfer, or assignment of contracts or IP rights.
  
  

• No additional liens allowed.
  
  

• All revenues must flow into bonded/project accounts.
  
  

• No amendments without lender approval.
  
  

• Compliance with all laws, taxes, and obligations tied to pledged collateral.

• Foreclosure/Collection: In the event of borrower default, lenders (via IWP) initiate a claim process as defined in the loan documents.
  
  

• Cross-Collateralization: IWP emphasizes slate structures to mitigate risk by cross-collateralizing projects.
  
  

• Payment Timeline: Typically, beneficiaries of the contracts, bonds, insurance, and state guarantee are paid within ~90 days after a default claim is processed by IWP.

Collateral pledge extends for the full loan term: can go out to 5–7 years depending on project financing needs.

1. Primary Backstop:

• Completion Bond – ensures production delivery.

• Keyman Insurance Policy – protects against talent-related risk.

• Binding Repayment Contracts – Contracted cash flows (presales, MGs, distribution/streaming agreements where applicable) totaling 140% of production & marketing costs.
  

2. Secondary Protections (required before guaranteed approval):

• Government Incentives – funded through $1B+ State-Backed Trust (Cash), independent of State fiscal budget nationwide. Upon project approval, the monies in the Trust are ear-marked for the project, ensuring investors are protected by a secured repayment obligation backed directly by the State.

• Senior Secured Position: Ensures investors are first in line through perfected UCC liens.
  
  

• Direct Beneficiaries: Investors benefit from the multi-layered security stack (contracts, bonds, insurance, and state guarantee).
  
  

• Streamlined Claims: In a default scenario, IWP manages the claim process, ensuring timely recovery from the State Trust.
  
  

• Risk Mitigation: Through rigorous underwriting, cross-collateralization, and State oversight, IWP minimizes exposure while enabling participation in high-value creative projects.