LoanRenew Specification

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LoanRenew

Deterministic Refinancing With Renewable Capital

LoanRenew is an open source specification for a personally owned refinancing business built around deterministic loan repayment, renewable lending capital, transparent profit allocation, investor participation, mortgage documentation, and public-record transparency.

The specification defines a modular financial architecture in which deterministic interest generated through refinancing becomes the business’s profit. Thirty-three percent of realized profit is provisionally reserved for tax liabilities. The remaining profit is divided between renewable lending capital and an operating allocation that supports expenses, overhead, and investor dividends.

LoanRenew is designed to make the movement of capital independently understandable and auditable. Every major stage of the lending cycle can be represented through structured records, including capital contributions, refinancing transactions, mortgage records, deterministic repayment schedules, realized interest, tax reserves, reinvestment, investor capital growth, dividends, expenses, and public-record references.

Specification Goals

LoanRenew is designed around the following principles:

Deterministic refinancing economics
Renewable lending capital
Personally owned business architecture
Separation of company ownership from capital participation
Transparent investor accounting
Automatic reinvestment of the lending allocation
Optional reinvestment of investor dividends
Annual tax-reserve reconciliation
Mortgage and title transparency
Public-record verification
Immutable financial records
Auditable capital allocation
Modular architecture
Vendor-neutral implementation
Open source implementation under AGPL-3.0+
Human-readable and machine-readable reporting

Core Economic Model

LoanRenew begins with capital contributed by the principal owner and participating investors.

Capital is deployed into qualifying refinancing transactions using the LoanRenew refinancing and Solvra-based deterministic repayment model.

Loan repayments distinguish between:

Principal repayment
Deterministic interest repayment

Returned principal is capital recovery and is not treated as profit.

Deterministic interest that has been realized becomes business profit.

The basic allocation model is:

33% of realized profit is provisionally reserved for taxes.
67% remains available for business allocation.
60% of the remaining profit goes into the new-loan funding pool.
40% goes into the operating allocation.
10% of the operating allocation forms the investor dividend pool.
90% of the operating allocation is available for expenses, overhead, owner distributions, and tax-reserve shortfalls.

Capital Renewal

The 60% reinvestment allocation is automatically returned to the lending system.

Each participating investor receives an exact proportional increase in their capital account based on their applicable percentage of participating capital.

For example, if an investor represents 1% of participating capital and the reinvestment allocation is $10,000, that investor receives a $100 increase to their capital account.

The reinvestment amount is not treated as a cash dividend. It becomes additional lending capital attributable to the investor.

This creates a renewable capital cycle:

Capital → Refinancing → Repayment → Interest Profit → Reinvestment → New Loans

Investor Participation

Investor participation is based on capital contributed to the participating capital pool.

Investor participation percentage is calculated as:

Investor Capital ÷ Total Participating Capital

Capital participation does not automatically constitute ownership of the business.

Unless a separate agreement provides otherwise, participating investors do not receive company ownership, management control, intellectual property rights, or ownership of the underlying business.

Each investor maintains an individual capital ledger recording:

Original contribution
Additional contributions
Reinvestment allocations
Dividend reinvestments
Cash dividends
Withdrawals where permitted
Current capital
Current participation percentage
Historical capital balances

Investor Dividend Election

The investor’s proportional share of the 10% investor dividend pool is an earned dividend.

Each investor may elect to:

Receive the dividend as cash
Add the dividend to the refinancing funding pool

The election must be established before January 1 of the applicable calendar year.

The election applies to eligible dividends earned during that calendar year.

If an investor elects cash distribution, the dividend is paid according to the applicable distribution schedule.

If an investor elects dividend reinvestment, the dividend is added to the investor’s capital account and becomes additional lending capital.

The automatic 60% reinvestment allocation and the optional dividend reinvestment are tracked separately.

Core Modules

Capital Module

The Capital Module establishes the foundational capital accounting system.

Responsibilities include:

Recording principal owner capital
Recording investor capital
Maintaining total participating capital
Calculating participation percentages
Tracking capital balances
Recording capital additions
Recording permitted withdrawals
Maintaining historical capital states
Separating company ownership from capital participation
Providing capital data to allocation modules

The Capital Module is the authoritative source for participating capital balances.

Solvra Loan Module Specification

Solvra

The Solvra Loan Module provides the deterministic loan calculation framework used by LoanRenew.

Responsibilities include:

Establishing loan principal
Establishing deterministic interest
Establishing loan terms
Calculating scheduled payments
Separating principal from interest
Tracking payment history
Tracking outstanding principal
Calculating realized interest
Tracking delinquency and loan status
Providing repayment data to the Profit Allocation Module

The module must maintain a deterministic relationship between the original loan terms and the expected repayment schedule.

Refinancing Module

The Refinancing Module manages the deployment of renewable capital into refinancing transactions.

Responsibilities include:

Identifying eligible refinancing transactions
Determining available lending capital
Allocating lending capital
Creating refinancing records
Linking refinancing transactions to capital sources
Tracking deployed principal
Tracking recovered principal
Tracking realized interest
Returning recovered capital to the available funding pool
Feeding realized interest into the profit allocation system

Mortgage Module

The Mortgage Module manages the mortgage-backed structure of qualifying refinancing transactions.

Responsibilities include:

Property identification
Ownership verification
Mortgage documentation
Existing mortgage identification
Mortgage payoff tracking
Lien identification
Mortgage recording
Mortgage assignment tracking where applicable
Mortgage release and satisfaction tracking
Recording references
Mortgage status
Property-level loan relationships

The Mortgage Module connects the financial loan record with the legal mortgage record.

Magistrate Title Services Module

Magistrate Title Services

The Magistrate Title Services Module provides title-service integration for mortgage-backed refinancing.

Responsibilities include:

Title research
Chain-of-title verification
Ownership verification
Lien research
Judgment research
Tax-lien research
Existing mortgage research
Title exception tracking
Payoff verification
Closing documentation
Recording coordination
Recording verification
Public-record references

The module is designed around the principle that qualifying mortgage transactions should have verifiable title and recording information.

Public Record Module

The Public Record Module maintains references to legally recorded documents associated with each mortgage transaction.

Responsibilities include:

Recording jurisdiction
Recording date
Instrument type
Recording number
Mortgage recording references
Release references
Satisfaction references
Assignment references where applicable
Public-record verification
Document status
Public-record audit history

The module does not require unnecessary publication of private personal information.

Public-record transparency and personal privacy must be balanced according to applicable law.

Profit Allocation Module

The Profit Allocation Module applies the deterministic profit distribution rules.

For realized interest profit:

33% → provisional tax reserve
67% → distributable profit

The distributable profit is then divided:

60% → new-loan funding pool
40% → operating allocation

The module must record every allocation and provide sufficient information for independent recalculation.

Reinvestment Module

The Reinvestment Module manages the renewable capital system.

Responsibilities include:

Receiving the 60% funding allocation
Calculating each investor’s proportional allocation
Increasing investor capital accounts
Increasing available lending capital
Recording reinvestment transactions
Maintaining reinvestment history
Supporting compounding capital balances
Preventing reinvestment allocations from being treated as cash dividends

The reinvestment allocation is automatic according to the applicable participation rules.

Investor Participation Module

The Investor Participation Module determines each participant’s economic percentage.

Responsibilities include:

Calculating capital participation
Maintaining participation history
Applying capital changes
Calculating proportional reinvestment
Calculating proportional dividend entitlement
Maintaining investor capital records

Participation percentages must be reproducible from the underlying capital ledger.

Investor Dividend Module

The Investor Dividend Module calculates the investor dividend pool.

The investor dividend pool is:

Operating Allocation × 10%

Each participating investor receives their proportional share based on the applicable capital participation percentage.

The module tracks:

Dividend earned
Dividend election
Cash distribution
Dividend reinvestment
Distribution date
Capital impact
Historical dividend records

Investor Election Module

The Investor Election Module records annual investor dividend preferences.

Each investor must establish their election before January 1 of the applicable calendar year.

Supported elections include:

Cash Distribution
Dividend Reinvestment

The election applies to eligible dividends generated during that calendar year.

The module maintains an auditable history of elections and their effective periods.

Tax Reserve Module

The Tax Reserve Module establishes a provisional reserve equal to 33% of realized profit.

The reserve is reconciled annually in January for the preceding fiscal year.

If the actual tax liability is less than the reserve:

The remaining balance is transferred into the new-loan funding pool.

The surplus becomes additional renewable capital and is allocated according to applicable capital participation percentages.

If the actual tax liability exceeds the reserve:

The shortfall is paid from the 90% portion of the operating allocation.

Tax reconciliation must not reduce an investor’s earned 60% reinvestment allocation.

The module records:

Provisional tax reserve
Actual tax liability
Taxes paid
Reserve surplus
Reserve shortfall
Funding-pool adjustment
Operating-allocation adjustment
Annual reconciliation

The 33% reserve is a specification-level allocation rule and does not determine the actual legal tax liability of a business.

Expense and Overhead Module

The Expense and Overhead Module manages the 90% portion of the operating allocation.

Eligible categories may include:

Business expenses
Administrative expenses
Servicing costs
Professional services
Insurance
Technology
Marketing
Compliance
Infrastructure
Permitted owner distributions
Tax-reserve shortfalls

Every transaction should contain sufficient information for reconciliation and audit.

Transparency Reporting Module

The Transparency Reporting Module is a mandatory core component.

It provides visibility into the financial, lending, capital, mortgage, investor, and operational aspects of LoanRenew.

Business-level reporting may include:

Total participating capital
Owner capital
Investor capital
Loans originated
Loans outstanding
Principal outstanding
Principal recovered
Interest realized
Profit allocations
Tax reserve
Reinvestment
Operating allocation
Investor dividend pool
Expenses
Overhead
Distributions

Investor reporting may include:

Original investment
Current capital
Capital participation percentage
Reinvestment earned
Dividend earned
Dividend paid
Dividend reinvested
Historical transactions

Mortgage reporting may include:

Property identifier
Mortgage status
Recording jurisdiction
Recording date
Instrument type
Recording reference
Title status
Lien status
Release status

Personally identifying information must not be unnecessarily exposed through public transparency systems.

Capital Ledger Module

The Capital Ledger Module maintains the authoritative transaction history for participating capital.

Every capital event should be recorded.

Examples include:

Initial capital contribution
Investor contribution
Additional capital contribution
Automatic reinvestment
Dividend reinvestment
Permitted withdrawal
Capital adjustment
Annual tax-reserve surplus allocation

The ledger should permit reconstruction of historical capital balances and participation percentages.

Audit Module

The Audit Module independently verifies the economic calculations.

It should be capable of recalculating:

Loan principal
Deterministic interest
Realized profit
Tax reserve
Remaining profit
Reinvestment allocation
Operating allocation
Investor dividend pool
Investor reinvestment
Investor dividends
Annual tax reconciliation
Capital balances

The audit system should identify:

Missing transactions
Incorrect allocations
Capital discrepancies
Dividend calculation errors
Reinvestment discrepancies
Tax reserve discrepancies
Loan accounting discrepancies
Unauthorized capital movements

Governance Module

The Governance Module defines ownership, participation, permissions, decision rights, and specification governance.

It establishes the distinction between:

Business ownership
Capital participation
Investor economic participation
Management authority
Loan ownership
Intellectual property rights

Unless separately established by agreement, investor participation does not create company ownership.

Annual Accounting Cycle

LoanRenew operates on a recurring annual cycle.

Before January 1

Investors establish their dividend election for the upcoming calendar year.

During the Year

The system:

Originates qualifying refinancing transactions
Tracks deterministic repayments
Records realized interest
Reserves 33% for taxes
Allocates 60% of remaining profit to new lending
Allocates 40% to operations
Calculates investor dividends
Applies investor dividend elections
Records all transactions

January Reconciliation

The preceding year’s financial records are reconciled.

The system:

Determines actual tax liability
Compares actual taxes with the provisional reserve
Transfers tax-reserve surplus to the funding pool
Applies tax shortfalls to the 90% operating allocation
Updates investor capital where applicable
Reconciles all capital accounts
Produces the annual transparency report
Produces the annual audit record

Public Transparency Architecture

LoanRenew is designed around a layered transparency model.

Public Layer

Provides aggregated and legally permissible information such as:

Capital totals
Loan totals
Aggregate repayment information
Interest totals
Reinvestment totals
Tax-reserve totals
Operating allocations
Investor dividend pool
Aggregate expenses
Mortgage recording references
Public-record references

Investor Layer

Provides an investor with their own:

Capital account
Participation percentage
Reinvestment
Dividend history
Election history
Capital transactions

Management Layer

Provides authorized operators with complete operational information necessary to manage the business.

Public Record Layer

Links mortgage and title records to their applicable governmental recording references.

Optional Plugin Modules

LoanRenew’s core modules define the financial and transparency architecture without requiring a specific technology vendor.

Optional plugins can extend the specification.

Payment Processing Plugin

Provides integrations for:

Electronic payments
ACH processing
Payment reconciliation
Automated repayment collection
Payment status updates

Banking Integration Plugin

Provides integrations for:

Bank accounts
Transaction feeds
Capital transfers
Reconciliation
Funding accounts

Accounting Integration Plugin

Provides integrations for:

General ledgers
Journal entries
Expense management
Financial statements
Account reconciliation

Tax Reporting Plugin

Provides integrations for:

Tax preparation
Tax reporting
Tax-document generation
Tax liability calculations
Annual reconciliation

Credit Assessment Plugin

Provides optional underwriting functionality for evaluating refinancing eligibility.

Loan Servicing Plugin

Provides:

Automated payment processing
Borrower communications
Delinquency tracking
Payment schedules
Servicing records

Investor Portal Plugin

Provides investors with access to:

Capital balances
Reinvestment history
Dividend history
Election settings
Annual statements
Transaction records

Public Transparency Portal Plugin

Provides a public-facing interface for:

Aggregate financial reporting
Loan statistics
Capital statistics
Reinvestment statistics
Annual reconciliation reports
Public-record references

Document Generation Plugin

Provides automated generation of:

Loan documents
Mortgage documents
Notices
Statements
Investor reports
Audit reports

Notification Plugin

Provides notifications for:

Loan events
Payment events
Investor distributions
Election deadlines
Annual reconciliation
Recording events

Regulatory Compliance Plugin

Provides configurable compliance functionality for applicable jurisdictions and business structures.

Data Integrity

LoanRenew implementations should preserve the integrity of financial and public-record data.

Core requirements include:

Immutable transaction identifiers
Timestamped records
Transaction provenance
Versioned records
Reproducible calculations
Audit trails
Capital reconciliation
Loan reconciliation
Mortgage-record reconciliation
Investor-account reconciliation

Any modification to a material financial record should preserve the original record and document the reason for the change.

Deterministic Calculation Principle

A central requirement of LoanRenew is that financial outcomes must be reproducible.

Given the same:

Loan terms
Payment history
Capital ledger
Profit records
Participation percentages
Allocation rules
Investor elections
Tax reconciliation data

an independent implementation should produce the same:

Profit
Tax reserve
Reinvestment
Operating allocation
Investor dividend
Investor capital balance
Annual reconciliation

This principle allows the financial model to be independently audited and implemented by multiple systems.

Example

Assume:

Principal owner capital: $100,000
Investor capital: $1,000
Total participating capital: $101,000
Realized interest profit: $20,000

The investor’s initial participation percentage is:

$1,000 ÷ $101,000 = 0.990099%

Profit Allocation

Tax reserve:

$20,000 × 33% = $6,600

Remaining profit:

$20,000 × 67% = $13,400

New-loan funding:

$13,400 × 60% = $8,040

Operating allocation:

$13,400 × 40% = $5,360

Investor dividend pool:

$5,360 × 10% = $536

Investor reinvestment from the 60% allocation:

$8,040 × 0.990099% = $79.60

Investor dividend:

$536 × 0.990099% = $5.31

If the investor elected cash dividends, their capital becomes:

$1,000 + $79.60 = $1,079.60

and they receive:

$5.31 cash

If the investor elected dividend reinvestment, their capital becomes:

$1,000 + $79.60 + $5.31 = $1,084.91

and no cash dividend is distributed.

Tax Reconciliation Example

Assume the provisional tax reserve is $6,600.

If actual annual tax liability is $5,000:

Tax reserve surplus:

$6,600 – $5,000 = $1,600

The $1,600 is transferred to the new-loan funding pool and allocated according to the applicable capital participation rules.

If actual annual tax liability is $7,500:

Tax shortfall:

$7,500 – $6,600 = $900

The $900 is taken from the 90% operating allocation.

The investor’s earned 60% reinvestment allocation remains unchanged.

Specification Branding License (SBL)

Standard

Fully AGPL-3.0+ compliant system
Copyleft enforced for network deployments
Required attribution:
- Roxanne Ardary
- https://www.roxanneardary.com/

Optional

Specification Branding License (SBL)
- Attribution-free commercial deployment
- Pricing based on scale, usage, and deployment scope
- https://roxanneardary.com/loanrenew/

License & Notice Requirements

LoanRenew is released under the GNU Affero General Public License v3.0 or later (AGPL-3.0+).

By contributing to any Open Arsenal project, you agree that your contributions will also be released under this license.

Please note the following:

All contributions must comply with the AGPL-3.0+ terms.
Under Section 7 of the license, all redistributions, forks, and derivative works must preserve attribution to: Roxanne Ardary and roxanneardary.com.
LoanRenew specifications are free to use with attribution. A Specification Branding License can be negotiated upon request.
The project’s notice.md file tracks attribution requirements and contributor acknowledgments. Any update that adds new contributors or modifies attribution should also update notice.md.
When submitting a pull request, ensure that any new files maintain the attribution headers where applicable.
Network-deployed versions of this software must also remain fully AGPL-3.0+ compliant, including exposure of source code modifications when applicable under the license.

For full legal details, please refer to the AGPL-3.0+ license and the project’s notice.md file.

Notice – LoanRenew

Attribution Requirement: Under Section 7 of the AGPL 3.0+ license, all redistributions, forks, and derivative works, including network-deployed versions of this project, must provide attribution to Roxanne Ardary and roxanneardary.com.

Contributors

This file tracks contributors and their specific contributions to the project.

Roxanne Ardary, roxanneardary.com – August 9, 2026
Created the repository for LoanRenew. Developed the specification for deterministic refinancing with renewable capital, including modular lending, mortgage and title services, public-record transparency, capital reinvestment, investor participation, dividend elections, tax reserves, and transparent profit allocation.
Add other contributors here – [Date]
[Describe contribution in one sentence]

License – LoanRenew

This repository is licensed under the GNU Affero General Public License v3.0 or later (AGPL-3.0+).

Key Points

You are free to use, modify, and distribute the code.
All redistributions, forks, and derivative works or network-deployed versions must also be licensed under AGPL-3.0+ and provide attribution to Roxanne Ardary and roxanneardary.com as required under Section 7 of the license.
The software is provided “as is,” without warranty of any kind.

For the full license text, see GNU AGPL-3.0 License.