Cdex, Inc. (fka CDEX)

[d4diddy]

The loan or revolving line of credit secured by CDEx is at an interest rate of 12% per annum with any repayment on the principal subject to an additional 10% fee:

"The Borrower may prepay any part of the principal of this line of credit at any time before maturity; provided, however, that any such prepayment must be in the amount of 110% of the portion of principal intended to be satisfied by such prepayment."

So it's basically a 22% interst loan, but only 12% accrues interest during the 4 month loan period while the remaing 10% is due on any repayment of principal.

A 10% interest over a 4 month period is almost like a 30% APR. Add on the additional 12% and it becomes better than the Griffin/Brumfield loan deal of a few years ago!

Of course this one is a Brumfiel/Brumfield deal which might be why it is the governed under the laws of the State of Ohio without regards to its conflict-of-law provisions.

http://en.wikipedia.org/wiki/Conflict_of_laws_in_the_United_States