Michelex Corp (fka MLXO)

[rpt]

investo...
I believe that MLXOe would have still paid a CD to Cornell just to set up the loan.
It's like the discount fee you pay your local bank for setting up a Line of Credit type loan...You pay the fee if you use the funds or not. Non-Refundable.
Normal fee is between 1/2% and 1%... That's what I pay for mine and the interest rate is tied to the Prime rate.
Cornell is able to get away with charging 'Mafia Rates' because the companies they do business with are High Risk that the normal lenders/ banks won't do business with.

Haven't taken the time to look it up in the filings of MLXO yet, but in GCCPe's case, Cornell charged them a 5% fee.
Just assuming that MLXO paid some where around the same rate.

RPT