---
title: What is the pre-custody process for corporate debt/convertible note investments?
description: Overview of the pre-custody process for unsecured corporate debt/convertible note investments including required investor sponsor documentation, the private custody process timeline, how to title your investment, and where to submit your documents.
---
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# What is the pre-custody process for corporate debt/convertible note investments?
Prior to accepting custody of an investment, STRATA Trust Company (“STRATA”) completes a pre-custody check to make sure we can meet our custodial responsibilities and the administrative requirements of the investment.
---
**Quik Links**: [Self-check](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#selfcheck) | [Pre-custody documents](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#documents) | [Timeline](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#timeline) | [Next steps](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#steps)
---
### *Self-check*
Your STRATA self-directed retirement account may invest in many [types of private debt](https://www.stratatrust.com/investment-options/private-assets/private-debt/), provided the investment complies with IRS rules.
STRATA Trust does not evaluate or perform any due diligence or suitability reviews on any investment or investment sponsor.
STRATA is unable to process transactions involving prohibited transactions or disqualified persons, including, but not limited to:
- Investments that would be considered prohibited transactions (e.g., self-dealing) under IRC §4975
- Investments in entities owned 50% or more by you or disqualified persons (including family members)
- Transactions that provide a direct or indirect personal benefit to the IRA owner or disqualified persons
**Examples of prohibited transactions in private debt**
- Lending your IRA funds to yourself, a family member, or a business you or your family own or control
- Personally guaranteeing a loan made by your IRA to a borrower
- Using your IRA loan proceeds for personal benefit, directly or indirectly
- Receiving payments, fees, or other compensation tied to a loan your IRA issued
- Structuring a loan in a way that shifts personal expenses or liabilities to your IRA
- Using IRA-held loan collateral (such as real estate) for personal use or benefit
---
**Quik Links**: [Self-check](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#selfcheck) | [Pre-custody documents](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#documents) | [Timeline](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#timeline) | [Next steps](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#steps)
---
Pre-custody documents
To onboard your investment, the issuer will need to submit STRATA's Private Investment Issuer Representation Letter. Visit STRATA's [Investment Onboarding](https://www.stratatrust.com/resource-center/investment-hub/investment-onboarding/?tab-id=2#onboarding-steps-by-asset-type) page to get started.
During the form submission process, the investment issuer will need to provide the following documents that reflect the investment registered to your IRA:
- **Offering documents -** Private placement memorandum (PPM), offering circular, operating agreement, limited partnership agreement, bylaws, blank subscription documents, and/or any related materials
- **Company formation documents -** Provide a copy (with the filing stamp) of the Articles of Incorporation, Certificate of Limited Partnership, Articles of Organization, Certificate of Formation, or other similar corporate filings.
**Investment registration**
The STRATA account will own the investment and the individual. All investments must be registered in the name of the accountholder:
- STRATA Trust Company Custodian | FBO (Accountholder Name) Account (#)
- Using STRATA’s Tax ID (26-2637994) in place of your Social Security Number helps maintain the tax-advantaged status of your IRA investment.
---
**Quik Links**: [Self-check](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#selfcheck) | [Pre-custody documents](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#documents) | [Timeline](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#timeline) | [Next steps](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#steps)
---
### Timeline
Processing timelines are approximate and depend on receiving all required documents in good order.
- Pre-custody review typically takes 2–3 business days once documentation is complete
- Transfers or rollovers from another custodian may extend timelines based on third-party processing
STRATA may request additional documentation as needed to complete the review.
---
**Quik Links**: [Self-check](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#selfcheck) | [Pre-custody documents](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#documents) | [Timeline](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#timeline) | [Next steps](https://knowledge.stratatrust.com/what-is-the-pre-custody-process-for-private-debt-investments#steps)
---
### Next steps
Once your pre-custody documents have been submitted and your investment is approved, you’re ready to open and fund your STRATA account and move forward with your investment. Visit our [Get Started](https://www.stratatrust.com/get-started/) page to open and fund your account. You’ll be able to:
- Select the account type you want to invest with
- Assign beneficiaries
- Electronically sign and submit required forms
**Step-by-step guide:** Download STRATA's [Private Debt Investment Checklist](https://stratatrust.hflip.co/a849ffd4a7.html) for a guided, streamlined investing experience.
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STRATA Trust Company (“STRATA”) performs the duties of a directed (passive) custodian, and as such does not provide due diligence to third parties regarding prospective investments, platforms, sponsors, dealers or service providers. As a custodian, STRATA does not sponsor, endorse or sell any investment and is not affiliated with any investment sponsor, issuer or dealer. STRATA does not provide investment, legal or tax advice. Individuals should consult with their investment, legal or tax professionals for such services.