Need help with below clause in private lending agreement in NJ.

[Raj G.]

What are pros and cons of below clause in private lending agreement from Lender's point of view.

I never saw such clause before. Thanks

10 new Development LLC, A new jersey limited liability company.

This certifies that Borrower Name1 is a member of the above-named limited liability company and is the owner of Fifty (50) units and is entitled to the full benefits and privileges of such membership, subject to the duties and obligations, as more fully set forth in the Limited Liability Company Operating Agreement.

Whereas, Borrower Name1, hereby sells, assigns, and transfers unto Lender Name, successors and/or assigns as their interest may appear his Fifty (50) units Membership Interest in consideration for a loan in the amount of $Amount.00.

IN WITNESS WHEREOF, the Limited Liability Company has caused this Certificate to be executed by its duly authorized members this Date 2024.