What happens if RFFI cannot pay back its loan?

To meet its conservation objectives while remaining in compliance with the financing package, RFFI sold the conservation easement, and will sell carbon credits and/or other ecosystem services at a value that reflects the difference between the property’s market value (industrial timber harvest, development and land appreciation) and the conservation value of the property based on its forest conservation and management approaches – the latter of which does not allow fragmentation and implements a property-wide forest restoration strategy. If despite all of these efforts, RFFI were to be unable to meet its debt service obligations, RFFI would be in violation of certain loan covenants which would allow the Bank of America to foreclosure on the property and find new ownership. If that were to happen, RFFI has achieved significant protection of these resources by the placement of a conservation easement on the forest which assures it will remain an intact forest that can never be subdivided or fragmented. In fact, RFFI is making good progress on meeting its financial obligations.