Does does FilmMoney protect their capital against the collateral? By David Brown
Investor Confidence: How FilmMoney & FM Lending LLC Protect Capital in Every Loan
For our capital partners and investors, the number one question is always the same:
“What happens if something goes wrong?”
At FilmMoney, founded by David Brown, we treat that question as our starting point—not an afterthought. Whether you’re participating in a fund, offering a line of credit, or co-lending with us, you deserve to know your capital is protected with the same legal rigor as a bank.
Here’s exactly how FM Lending LLC secures every loan we issue.
1. Copyright Mortgage – Our Industry-Specific Lien
Every film has what’s known as a Chain of Title (CoT) — a documented history of ownership covering the script and all rights assignments. Once a producer registers a film with the U.S. Library of Congress, FilmMoney files a Copyright Mortgage, which is the entertainment equivalent of placing a lien on a deed.
Why It Matters:
No other lender can skip the line.
The distributor’s legal team must clear our lien before delivering payment to the producer.
Our claim is legally embedded in the intellectual property itself.
Think of it like a title report in real estate — we make sure our name is on it before any money changes hands .
2. Security Agreement & UCC-1 Filing
In addition to copyright, we secure our loan with a Security Agreement and file a UCC-1 lien at the state level. This gives FM Lending LLC a first-position interest in:
The film’s assets (current and future)
Tax credits and incentives
All sales, licensing, and studio payments
If the borrower attempts to obtain new financing, our UCC lien is visible in any lender’s due diligence — preventing dilution of our secured position .
3. Completion Bond = Added Security Layer
For most projects, we also require a Completion Bond, issued by a trusted partner like Film Finances Inc.. The bond company becomes contractually obligated to:
Oversee production and ensure it stays on track
Facilitate delivery of the completed film to the buyer
Repay our loan in full if delivery fails
This means we’re not just relying on borrower promises — we’re backed by a licensed, bonded third party trained to manage risk and assure completion.
Final Layer: No Funds, No Film
Our documentation ensures that producers cannot release their film, access tax credits, or collect studio payments without satisfying our lien position first. These protections are why capital providers trust David Brown and the FilmMoneyplatform with tens of millions in annual lending volume.
Bottom Line for Investors
When you partner with FM Lending LLC, you’re not gambling on a creative dream — you’re participating in a secured, asset-backed loan model designed to prioritize capital protection and enforceability.
“Every dollar we deploy is secured by intellectual property, bonded delivery, and enforceable legal documentation. Our job is to deliver strong returns without surprises.” — David Brown, Founder of FilmMoney
Interested in investing alongside us or exploring capital participation?
Visit www.filmmoney.com or email us at: dbrown@filmmoney.com