USA Capital

Refund of 2% Service Fees

Investors who have Loan Servicing Agreements that provide for a 1% Service Fee will receive a refund of the 2% Service Fees held back during the bankruptcy by a ruling of the bankruptcy court and shown on their statements under “Court Required Holdbacks.” The refund will become effective as of the Effective Date of the Reorganization Plan which is forecasted to be the end of February. USACM estimates it would issue the refund checks within 30 days of the Effective Date.

Loan servicing agreements that were signed by each investor can vary from 1% to 3%, depending on the agreement made between the direct lender and USACMC. All amounts from April to date have been calculated using a 1% service fee, however, in some cases, up to 3% should have been collected. Therefore, in order to adjust each payment for the service fees, there has been an additional 2% holdback on all collections. In accordance with the bankruptcy court ruling with regard to service fees, the April, May & June collections only reflected holdbacks on the 9 loans that were repaid in full during the 3 month period. However, the bankruptcy court subsequently allowed USACMC to hold back funds on all collections to date, therefore, the November and December statements reflect the true-up in holdbacks for previously uncollected amounts from April to date.

Future statements will reflect an additional 2% service fee holdback on all amounts collected during the month, pending the implementation of the Loan Servicing Agreement rates pursuant to the Plan of Reorganization. Also, pursuant to the Plan of Reorganization, on or soon after the Effective Date, the service fees will be reconciled and those Direct Lenders with 1% LSA contracts will receive a refund of over held service fees minus the assessment for the Direct Lenders Committee. Direct Lenders with 3% services fees will have the holdback amounts applied to the additional service fee charges, but will not be assessed an amount for the Direct Lenders Committee fees.

info@usacapitalcorp.com

USA Capital - Las Vegas · 4484 South Pecos Road · Las Vegas, NV 89121
NV MBR 333 · Phone 702.734.2400 · Fax 702.734.0163



Refund of 2% Service Fees Investors who have Loan Servicing Agreements that provide for a 1% Service Fee will receive a refund of the 2% Service Fees held back during the bankruptcy by a ruling of the bankruptcy court and shown on their statements under “Court Required Holdbacks.” The refund will become effective as of the Effective Date of the Reorganization Plan which is forecasted to be the end of February. USACM estimates it would issue the refund checks within 30 days of the Effective Date. Loan servicing agreements that were signed by each investor can vary from 1% to 3%, depending on the agreement made between the direct lender and USACMC. All amounts from April to date have been calculated using a 1% service fee, however, in some cases, up to 3% should have been collected. Therefore, in order to adjust each payment for the service fees, there has been an additional 2% holdback on all collections. In accordance with the bankruptcy court ruling with regard to service fees, the April, May & June collections only reflected holdbacks on the 9 loans that were repaid in full during the 3 month period. However, the bankruptcy court subsequently allowed USACMC to hold back funds on all collections to date, therefore, the November and December statements reflect the true-up in holdbacks for previously uncollected amounts from April to date. Future statements will reflect an additional 2% service fee holdback on all amounts collected during the month, pending the implementation of the Loan Servicing Agreement rates pursuant to the Plan of Reorganization. Also, pursuant to the Plan of Reorganization, on or soon after the Effective Date, the service fees will be reconciled and those Direct Lenders with 1% LSA contracts will receive a refund of over held service fees minus the assessment for the Direct Lenders Committee. Direct Lenders with 3% services fees will have the holdback amounts applied to the additional service fee charges, but will not be assessed an amount for the Direct Lenders Committee fees.
Copyright © 2006 USA Commercial Mortgage Company info@usacapitalcorp.com USA Capital - Las Vegas · 4484 South Pecos Road · Las Vegas, NV 89121 NV MBR 333 · Phone 702.734.2400 · Fax 702.734.0163