"I think the 42% per annum is a lie."
You can think whatever you want, you know that your opinion is highly sought after around these parts and much appreciated. LOL
At least you didn't say that it was a 'factual fact'. That would be a repetitious redundantcy and just wrong.
Let's review the terms of the loan. There's two parts, a 12% per annum component and a 10% flat fee component for the duration of the loan which is a four month period. In order to combine the two components the 10% flat fee has to be converted to a per annum basis which makes it a 30% per annum flat fee.
They still can't really be combined because the 12% is a compounded APR and the 30% is a flat fee interest rate, but what the heck, saying it's like a 42% rate of interest loan is not 100% accurate, but it's close enough to gets the point across.
It shows what a sweet deal Bumfield made for himself and it provides plenty of motive for offering the loan. Is the loan secured? If CDEx defaults on the loan repayment can CDEx be taken over? Perhaps a further possibility as Crow has implied?
It seems like a COI for Bumfield to me.