What happens if the fund, its borrowers, or Doug Smith get sued?

 

The fund is a lender. Lenders are unlikely to get sued unless they are violating lending laws, which the fund does takes great care not to do.

 

In any case, the borrower would generally need to sue the lender, and Doug’s entities are the borrower. Doug has no reason to sue the fund he and his team created to serve as a “friendly lender.” In addition, any suit would almost certainly get tossed out and since his entity is managing the fund.

 

As with anyone or any company involved in a business undertaking, Hawthorne Land, Hawthorne Interests or Doug Smith could get sued. Innocence and/or insurance would protect us in most cases. Access to our own capital reserves would resolve the issue in other cases.

 

Regardless, the fund has first liens on our assets and would therefore be in a first position to get paid should assets need to be sold to resolve legal issues.

 

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