WHAT ARE PRIME CERTIFICATES OF PARTICIPATION?

Prime Certificates of Participation are income producing certificates that  participate in the income from Sherbourne's investment portfolio and are designed to yield higher interest returns than Savings Accounts, Certificates of Deposit, Money Market Accounts or Mutual Funds.

Prime Certificates of Participation are available in two denominations – Principal Secured and Principal Guaranteed.

Principal Secured Prime Certificates of Participation

Principal Secured Certificates pay the highest interest rate with an initial rate of 7.50%, which automatically increases annually over the next five years to 8.50%. The interest rate is based upon the length of the holding period. The longer your holding period, the higher the interest rate. For example, for the first year interest is paid at the initial rate of 7.50%. For each of the next four years, the interest rate for each year increases by .25% for a maximum return of 8.50%, and if you compound your income your earnings are even higher.

Funds invested in Principal Secured Certificates are invested by Sherbourne in securities designed to insure principal repayment which provides principal security.  These investments include, but are not limited to, private placement debt, high grade corporate bonds and preferred stock.

Principal Guaranteed Prime Certificates of Participation

Principal Guaranteed Certificates pay a higher rate than Money Market, Savings Accounts and CDs with a return set at 1.25% over the Federal Fund Rate and with a minimum rate of 4.91%.  This rate will fluctuate up or down periodically as the Federal Reserve re-sets the Federal Fund Rate.  Principal Guaranteed Certificates currently pay 4.91%.

Funds invested in Principal Guaranteed Certificates are invested by Sherbourne in government securities (federal, state and municipal) that are either government guaranteed, FDIC Insured or insured through Triple A rated bond insurers Municipal Bond Insurance Association (MBIA) and American Municipal Bond Assurance Corporation (AMBAC).

Two Unique Advantages of Prime Certificates of Participation

Unlike certificates of deposit, Prime Certificates can be redeemed at any time on fifteen days notice, and unlike common stocks and mutual funds, they are redeemed at face value, with no fees or service charges of any kind. Interest is paid monthly or quarterly or may be compounded semi-annually and deferred until redemption.

Redemption at Face Value

Unlike investments in Money Market and Bond Funds all Prime Certificates of Participation are redeemed at face value in United States Dollars. Principal invested in Money Market or Bond Funds are actually invested in "shares" that can fluctuate up and down based upon earnings, interest rates and other market factors. When you go to redeem these "shares" their value may be lower than the amount invested. Funds also carry fees and maintenance charges that continually eat into your principal.

NO COMMISSIONS OR FEES:

There are no management fees of any kind because Prime Certificates of Participation are not sold through dealers or brokers. Therefore there are no charges, commissions or fees for either purchase or redemption.

NO EARLY WITHDRAWL PENALTIES:

Prime Certificates of Participation can be redeemed for full face value plus accrued interest at any time on fifteen days prior notice without penalty of any kind.

WHO SHOULD INVEST IN PRIME CERTIFICATES OF PARTICIPATION:

If you are concerned with today's highly volatile stock market, you should seriously consider Prime Certificates of Participation as a wealth enhancing strategy for growing cash for tomorrows needs - whether for retirement, college education, or any other worthwhile investment goal. Prime Certificates of Participation allow you to know precisely what your savings investment is worth at any time - especially when you need it. This is simply not an option with Mutual Funds or Annuities.

HOW CAN I INVEST IN PRIME CERTIFICATES OF PARTICIPATION:

Prime Certificates of Participation can only be purchased directly from Sherbourne Financial Ltd. and are only issued after Sherbourne Financial, Ltd. has received your offer to buy and has accepted your offer.

To purchase a Prime Certificate of Participation just register your offer with Sherbourne Financial by clicking here.

For a comprehensive review of today's Investment Options click here.

To contact us click here.

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