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Subsequent Events
12 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  
Subsequent Events

NOTE 7 – SUBSEQUENT EVENTS

Extension of term of company and formation loan

In November of 2021, RMC submitted to a vote of the members a proposal to amend the RMI IX Operating Agreement to extend the term of the company and the term for the repayment of the formation loan to December 31, 2038. On March 11, 2022: (i) RMC's board of directors confirmed the approval of the amendments by members representing over 53% of the total outstanding membership interest; and (ii) adopted the Second Amendment to Ninth Amended and Restated Limited Liability Company Operating Agreement of Redwood Mortgage Investors IX, LLC incorporating the approved amendments into the company's Operating Agreement. As a result, the term of the Company will terminate on December 31, 2038 unless: (i) the term is extended by RMC with the affirmative consent of a majority interest of the members; or (ii) the Company is earlier terminated pursuant to the Operating Agreement or by operation of law.

Modification to credit agreement

On March 11, 2022, the company entered into a loan modification agreement amending and modifying the terms and conditions of the company's credit line loan documents. The modification agreement as entered into on March 11, 2022 and dated effective as of March 4, 2022 modified the terms of the company's line of credit by:

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extending the commitment term during which loan proceeds may be disbursed to the company from March 13, 2022 to March 13, 2024;
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extending the maturity date of the credit line from March 13, 2022 to March 13, 2024;
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extending the maturity date for the term loan for which the company has a conversion option at the end of the commitment term from March 13, 2023 to March 13, 2026; and
•
removing LIBOR as the reference rate and replacing it with Ameribor (i.e., the 30-day American Interbank Offered Rate Term -30 Index published for loans in United States Dollars by the American Financial Exchange), resulting in an annual interest rate under the credit line equal to the greater of: (i) the Ameribor Rate plus three and one-quarter percent (3.25%); and (ii) five percent (5.0%).

The manager evaluated events occurring subsequent to December 31, 2021 and determined that there were no other events or transactions occurring during this reporting period that require recognition or disclosure in the financial statements.