Fixed, Level Payment Option 
While interest rates on Crown MAC Term Loans will float based on its cost of funds, your monthly payment will be level, allowing you to manage cash flow more effectively. Crown MAC offers two payment options:

• A level monthly payment for all 12 months, or

• A bi-level monthly payment that allows you to pay more in the months of increased cash flow (November to February) and less in the months of lower cash flow (March to October).

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On the 20th of each month, Term Loan payments are made directly to Crown MAC from your local bank account via Electronic Funds Transfers (EFT).

Term Loans are structured to a maturity of five years but not more than the remaining lease term of the store(s) pledged with an amortization of up to five years. Principal and interest components of the payment will be adjusted monthly to reflect Crown MAC's cost of funds. If interest rates decline, your loan may be paid off early. If interest rate increases, a balloon payment may be due at maturity.

For Term Loans with a tenor of 48 months or more, the monthly payment shall be reset at the mid term of the Retailer Term Loan maturity. Such reset shall take into account the remaining principal balance of the loan and the amortization interest rate then in effect. At reset your monthly payment option shall remain in effect as originally selected.

Prepayment Option
There are no restrictions or penalties on the prepayment of Crown MAC Term Loans after the first year.

Competitive Floating Rates
The historic financial performance of Hallmark Gold Crown retailers, Crown MAC's structure, and Crown MAC's ability to access low cost financial markets make it possible for Crown MAC to offer a competitive floating interest rate. Historically, Crown MAC’s interest rates have been below the prime rates of commercial banks and, therefore, should be competitive with interest rates available from your local lender.

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