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PACE BONDS WITH PRIVATE CAPITAL<br />

The PACE structure uses government tax liens to<br />

create a security senior to any private mortgage<br />

Investor Tax Collector Real Estate<br />

Purchase<br />

Bond<br />

Bond<br />

Payment<br />

GOV.<br />

Upfront<br />

Financing<br />

Repaid on<br />

Tax Bill<br />

CRE<br />

A key financing hurtle is eliminated by providing<br />

collateral at the very top of the capital stack<br />

5

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