GLOSSARY OF TERMS

The following is a listing of terms used primarily in the Loan Status Report spreadsheet along with plain english definitions.

Performing

The Borrower has paid the loan interest due to USACM in full and on time, and is in good standing with USACM.

Non-Performing

USACM uses a bank definition of non-performing. This means payment of the interest could be late only one day as of the date the Report was published. In some cases, interest is paid soon thereafter, thereby returning it to Performing status. In other cases, the interest payments are months or years in arrears.

Repaid

The loan has been repaid in full to USACM. For loans that have been repaid since April 13, 2006, those funds are being held by USACM in it’s Collection Trust Account pending a decision by the Court at the Aug. 4, 2006 hearing on a motion USACM filed for resumption of appropriate payments to investors.

Four loans – Beastar, Freeway 101, Universal Hawaii and Beau Rivage – were repaid in full by the Borrowers before the Chapter 11 filing and the principal payments were diverted by USACM for use as interest payments to all investors. In addition, several other loans were partially paid off and that principal was diverted for use as interest. USACM and Mesirow Financial estimate the amount of principal diverted to be approximately $46 million.

Special Situation

The loan has an undetermined amount outstanding due to bankruptcy, foreclosure, change of ownership, etc.

Loan Name

USACM refers to its loans by this name. In parentheses is the name of the Borrowing entity. For a table that shows primary and alternate names for USACM loans, click here.

Origination Date

This is the date the loan was first made. In many loans, USACM’s agreement with the Borrower was based on a budget for the entire project, but USACM raised the funds in separate offerings. Each new offering raised additional funds for the same Borrower through amendments to the loan agreement. Investors may have taken positions in a loan at different dates.

Loan Outstanding

This is the amount of principal outstanding as of the Report date. This amount may be different for Investors and Borrowers than the paperwork they have on certain loans. USACM has revisited all loan agreements and payments from Borrowers to enforce agreements strictly as written. In some cases, payments made by Borrowers needed to be applied first to fees, then interest, then principal. This could change the principal outstanding.

Interest Outstanding

This is the amount of interest USACM believes it is owed by the Borrower as of the report date. This amount may be different for Borrowers and Investors than the paperwork they have on certain loans. USACM has revisited all loan agreements and payments from Borrowers to enforce agreements strictly as written. In some cases, calculation of interest on a compounding basis, and enforcement of default interest rates, can affect the total interest outstanding.

Interest Prepaid to Investors

This is the total amount of interest paid out by USACM to investors in excess of the amount of interest paid to USACM by the Borrower as of the report date. Mesirow has discovered that USACM paid interest to investors on non-performing as well as performing loans. USACM expects certain loans to be brought current with the amount of interest paid by the Borrower to meet or exceed the amount pre-paid by USACM to investors. In other cases, USACM may not be able to recover the full amount of the pre-paid interest from the Borrower, which means the investors have an obligation to USACM.

Collection Account

USACM receives principal and interest payments from Borrowers into a secure Collection Trust Account. It is from this account that USACM issues payments to investors of principal and interest due them.

Interest

This is the amount of interest collected from Borrowers that has not been paid to investors and is currently being held in the Collection Trust Account pending approval of the Bankruptcy Court of USACM’s proposal to distribute funds.

Principal

This is the amount of principal paid off or paid down from Borrowers that has not been repaid to Investors and is currently being held in the Collection Trust Account pending approval of the Bankruptcy Court of USACM’s proposal to distribute funds.

Service Fee

This is the amount of fees, such as loan servicing fees, USACM has a contractual right to collect. These fees are currently being held in the Collection Trust Account pending approval of the Bankruptcy Court for USACM to use them.

Due to

This section shows Mesirow’s calculations of which group is due money currently being held in the Collection Trust Account as of the report date. It is not the number Mesirow and USACM are using in USACM’s motion proposing resumption of appropriate distributions to investors.

DIV Fund

Due to the USA Capital Diversified Trust Deed Fund, LLC

First Trust

Due to the USA Capital First Trust Deed Fund, LLC

Director Investors

Due to Direct Lenders

No. of Investors

This is the number of investors or Direct Lenders presently recorded on the Deed of Trust for each loan.

TBD

To Be Determined. This means the Mesirow team has not completed its reconciliations for this loan and is not yet prepared to disclose a number.

DTF

USA Capital Diversified Trust Deed Fund, LLC

CFT

USA Capital First Trust Deed Fund, LLC

CM

USA Commercial Mortgage Company