Secured Loan Procedure

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When funding a secured or unsecured loan within your retirement Account, you should exercise the same due care and diligence as if you were lending it personally. PENSCO Trust acts only as a passive custodian and gives no investment advice. We require an independent escrow.

The Account Holder must read, approve and sign all documents before forwarding them to PENSCO Trust for the custodial signature. The signed documents will then be returned, along with the funds, to the identified escrow agent for closing.
All documents must be vested:
- For IRAs:
  
  PENSCO Trust Company Custodian F.B.O. + [Account Holder Name] + IRA + "PENSCO Account #"
- For Solo(k)s:
  
  PENSCO Trust Company Custodian of "Plan Name" F.B.O. + [Account Holder Name] + "PENSCO Account #"
PENSCO Trust Company's Tax ID: 02-0526633

Required Documentation and Other Information Needed

Secured Loan to an Individual:

Deed of Trust/Mortgage Direction Letter

Authorizes PENSCO Trust to fund the loan from your self-directed Account. Both the Account Holder and loan servicer must sign. Information requested applies to your portion of the loan.
Loan Servicing Agreement

PENSCO Trust does not service any loans (i.e., track loan payments, handle defaults, foreclosures, etc.). You may use either the loan servicer's own agreement or the Loan Servicing Agreement form provided by PENSCO Trust. Both Account Holder and the loan servicer must sign. Download PDF
Copy of Note and Deed of Trust/Mortgage

Make sure both are vested correctly (see #2 in the Overview). If it's a multi-beneficiary note (more than one lender) then the loan servicer keeps the original documents. If a sole beneficiary note (i.e., the Account is the sole lender), then PENSCO Trust keeps the original documents. IRA holders are not permitted by law to hold their IRA assets.
Payment and Funding Instructions

Funding can be made by either wire or check. Download PDF
Escrow Instructions

Either from the broker or escrow/title company.