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Glossary


Account - the record LBT maintains of the funds that you lend and borrow, the interest you pay and receive, funds and Precious Metal that you hold in facilities provided through LBT, and fees charged to you. Customers select their security and notification settings in their Account. You can access your Account at any time by logging in through this Website.

Approved Vault - any secure vaulting facility operated directly or indirectly by a professional provider that is approved by LBT. Precious Metal held in each Approved Vault is insured for loss arising from theft and other commercial risks. Some Approved Vaults are not available to individual Customers. Approved professional providers are Goldmoney for:

Metal Location Vault Operator Business customer Individual customer
Gold England
  • Loomis International
  • Brinks
Switzerland
  • Loomis International
  • Brinks
  • Rhenus

Except individual
customers with
residency in Switzerland
Hong Kong
  • Loomis International
  • Brinks
  • G4S
Singapore
  • Brinks
  • Malca-Amit


Metal Location Vault Operator Business customer Individual customer
Silver England
  • Loomis International
Hong Kong
  • Loomis International
  • G4S
Singapore
  • Brinks
  • Malca-Amit


Auction - Customers initiate an Auction to lend or borrow funds using the online facilities provided in the Marketplace. Customers can also Bid to Lend or borrow funds in Auctions started by other Customers. Auctions are conducted in accordance with the Marketplace Terms.

Auction Closing Date - the Business Day on which the Auction ends at 12.00 noon United Kingdom time.

Available Assets - the portion of the funds and Precious Metal in your Account that are not locked or pledged. Available Assets are necessary to start or bid in an Auction.

Bid to Borrow - a bid submitted in an Auction started by a Customer who wants to lend funds. The minimum amount you can bid to borrow is £25,001 for businesses and £60,261 for individuals.

Bid to Lend - a bid submitted in an Auction started by a Customer who wants to borrow funds. The minimum amount you can bid to lend is £5,000, provided you are lending to a business.

Blended Interest Rate - the Interest Rate payable by a Borrower on a Loan that is funded by two or more Lenders. LBT combines the Interest Rate payable on the amount loaned by each Lender into a single Interest Rate. Each Lender receives the Interest Rate that is due to them while the Borrower pays the blended rate.

Borrower - a High Net Worth Borrower or business Customer who borrows funds from one or more Lenders using LBT's peer-to-peer platform.

Business Day - any day other than a Saturday, Sunday or bank holiday in England.

Chain of Integrity Standard - the minimum standard which Precious Metal must meet to be accepted by LBT as Collateral, which is (a) in the case of large gold and silver bars, the standard as set out in the London Good Delivery standards established by the LBMA, details of which can be obtained from lbma.org.uk/good-delivery-explained or (b) in the case of small gold bars, newly fabricated gold kilo bars produced by a member of the LBMA and delivered directly by the LBMA member to the Approved Vault.

Client Money - the money that you transfer to your Account which is to be used for lending through the Marketplace. The money can be British pound (GBP), Canadian dollar (CAD), euro (EUR), Swiss franc (CHF) and US dollar (USD). FCA regulations require that Client Money be held separately from Customer Funds in the Client Money Account.

Client Money Account - the segregated deposit account opened with Barclays Bank UK PLC in the name of LBT for holding Customer monies within the scope of Client Money rules of the FCA.

Collateral - Precious Metal in the Borrower's Account that is pledged as security for a Loan.

Customer - an individual, a partnership (with 4 or more partners) or a company whose Account application is accepted.

Customer Funds - the money that you transfer to your Account which is to be used for purposes other than lending through the Marketplace, for example to buy Precious Metal. The money can be British pound (GBP), Canadian dollar (CAD), euro (EUR), Swiss franc (CHF) and US dollar (USD). Customer Funds are held in the Customer Funds Account.

Customer Funds Account - Customer Funds connected to LBT's activities that do not fall within the scope of Client Money rules of the FCA are placed in the Customer Funds Account, which is a segregated deposit account opened with Barclays Bank PLC in the name of LBT for holding Customer monies.

Event of Default - as defined in the Standard Loan Terms and Conditions, any failure by the Borrower to pay interest or repay a Loan when due. In the Event of Default LBT sells a sufficient amount of the Borrower's Pledged Metal so that Lenders receive the interest payment due and/or repayment of the Loan.

High Net Worth Borrower (HNWB) - as defined in the Financial Services and Markets Act, an individual whose net income during the previous year ending 31st March was not less than £150,000 or throughout that year had net assets of not less than £500,000, where "net income" means the total income from all sources less the amount of income tax and national insurance contributions payable.

Interest Rate - the annual rate of interest, which may be a specified spread over a floating rate reference basis, applied to loans on an actual calendar day basis without compounding.

LBT - Lend & Borrow Trust Company Limited, a company registered in England and Wales, which is authorised and regulated by the Financial Conduct Authority (709373) to operate an electronic system in relation to lending and is permitted to hold and/or control Client Money.

Loan-To-Value (LTV) - the Loan amount divided by the market value of the Precious Metal securing the Loan. For example, if a Loan of £70,000 is secured by gold with a market value of £140,000, the LTV is 50%.

London Bullion Market Association (LBMA) - a trade association of participants in the London market for gold and silver bullion. Its members include central banks, private sector investors, mining companies, producers, refiners and fabricators. View the LBMA's website: lbma.org.uk

LBMA Gold Price - the gold price at the conclusion of a process which settles trades of London good delivery bars that begins at 10:30am and again at 3:00pm London time on each Business Day by market-making members of the LBMA.

LBMA Silver Price - the silver price at the conclusion of a process which settles trades of London good delivery silver bars that begins at 12:00 noon London time on each Business Day by market-making members of the LBMA.

Lender - a customer who lends funds through the peer-to-peer platform available at the LBT Website to a Borrower.

Loan Agreement - the agreement between the Lender, the Borrower and the Agent (as Agent for the Lender) comprising the Loan Particulars and the Standard Loan Terms and Conditions, which together constitute the terms upon which a Loan is advanced by a Lender to a Borrower.

London Good Delivery bars - bars of gold and silver that meet the Chain of Integrity Standards and size requirements of the LBMA.

Locked Assets - When you participate in an Auction to lend, the amount of funds you intend to lend is locked in your Account. When you participate in an Auction to borrow, an amount of Precious Metal is locked in your Account so that the LTV of the resulting Loan is not greater than the Maximum Initial LTV. Locked Assets cannot be used in other Auctions.

Marketplace - the on-line facility provided by LBT for Customers to start and bid in Auctions to lend and borrow funds. View the P2P Marketplace.

Margin Warning - the notice we issue to a Borrower when the value of Pledged Metal has fallen, causing the LTV to rise above the Maximum Initial LTV, stating that a Margin Call will be issued if the LTV rises to the Margin Call LTV.

LTV Type Gold Silver
Maximum Initial LTV 75% 65%
Margin Call LTV 85% 75%
Metal Sale LTV 90% 85%

Margin Call - the notice we issue to a Borrower when the value of Pledged Metal has fallen, causing the LTV to rise to the Margin Call LTV. The Borrower has five Business Days to either provide additional Pledged Metal and/or partially prepay the Loan so that the LTV is reduced to the Maximum Initial LTV or less.

Nominated Bank Account - the bank account held in your name for which you have provided details when creating your Account to be used for remitting funds to / from your Account. You may choose one bank account for each of the different currencies accepted by LBT: British pound (GBP), Canadian dollar (CAD), euro (EUR), Swiss franc (CHF) and US dollar (USD).

Peer-to-Peer (P2P) - the network LBT operates in which one peer (an individual or business) lends money to another peer who borrows money using their investment-grade gold or silver as Collateral at a mutually agreed Interest Rate and maturity determined through an online Auction.

Pledge Agreement - the agreement between the Borrower and the Agent (as Agent for the Lender) comprising the Pledgor Particulars and the Pledge Terms and Conditions, which together constitute the terms upon the metal is pledged and the conditions to guarantee the liabilities of the Borrower in respect of a Loan.

Pledged Metal - the Precious Metal pledged as security for a Loan that is subject to a signed Pledge Agreement. All Loans concluded in the Marketplace are collateralised by Pledged Metal of sufficient value to ensure each Loan has an LTV equal to the Maximum Initial LTV or less at commencement of the Loan.

Precious Metal - bars of gold and silver that meet the Chain of Integrity Standard and are stored in an Approved Vault.

Proposal to Lend - an Auction a Customer starts to lend funds. Potential borrowers bid in this Auction. The minimum amount a Customer can lend via a Proposal to Lend is £25,001.

Proposal to Borrow - an Auction a Customer starts to borrow funds. Potential Lenders bid in this Auction. The minimum amount a Customer can borrow via a Proposal to Borrow is £25,001 for a business and £60,261 for an individual.

Source of Funds - the description in the Account application of the activities that have generated the funds and Precious Metal that you transfer to your Account. LBT is required to have a Source of Funds declaration from each Customer.

Term - the duration of a Loan, which can be from 3 to 60 months.

Terms & Conditions - the terms to which a Customer must agree before participating in the Marketplace. The Terms & Conditions comprise the Customer Agreement, the Standard Loan Terms and Conditions, the Pledge Terms and Conditions, the Marketplace Terms and the Terms of Website Use.

This Glossary is provided for convenience only and is not intended to alter or override the definitions in the Customer Agreement.