Enforcement

The enforceability of private bonds on our platform is built on a robust legal and operational framework. It starts with the creation of the Private Placement Memorandum (PPM), a detailed document in which the issuer lays out all the terms, conditions, and risks of the bond. Potential investors review the PPM as part of their purchase process, ensuring they fully understand what they are buying into before committing.

When an investor decides to proceed, they sign a Purchase Agreement that formalizes their rights and obligations, including payment schedules and default provisions. This agreement is signed electronically using a compliant digital signature process, adhering to international standards (i.e eIDAS). By doing so, the platform ensures that each signature is legally valid and secure, without sacrificing the efficiency and convenience of a fully online transaction.

Review

After the purchase is completed, the ownership is recorded securely. For tokenized bonds, a blockchain record can be employed to offer immutable proof of ownership and transaction history. Throughout this process, the documentation is structured to align with the legal requirements of the issuing jurisdiction, including clear clauses that specify governing law and mechanisms for resolving disputes. In the event of a default—such as missed payments—investors have explicit remedies, which may include collateral enforcement, legal action, or other recourse detailed within the bond’s contractual terms.

By following these steps, the platform provides private bonds that are both transparent and enforceable, giving professional and institutional investors confidence that their rights will be protected from issuance to maturity.

Debita is a technology solution designed to help issuers streamline their private debt issuance processes. We are not an exchange, regulated marketplace, or investment advisor. All aspects of the issuance—including regulatory compliance, due diligence, and private, bilateral agreements—are the sole responsibility of the issuer. Offerings on Debita are not public offerings, and investing in private debt involves risks such as potential default or loss. Each investor should carefully consider their own risk tolerance and seek independent professional advice as needed. Debita is not a party to any issuance and assumes no liability for the accuracy of information provided by issuers or for any outcomes related to the issuance process.