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USA COMMERCIAL MORTGAGE CO. SECURITY AGREEMENT WITH USA INVESTMENT PARTNERS, LLC APPROVED


LAS VEGAS, June 26, 2006 — USA Commercial Mortgage Company (USACM) today announced that its security agreement and promissory note with USA Investment Partners, LLC (USAIP) was approved at the June 21, 2006 hearing by the United States Bankruptcy Court.

USACM had requested an order of the Court approving the security agreement and promissory note given by USAIP to document a $58.3 million obligation owed by USAIP and to provide collateral for that obligation. The agreement converts the obligation into a loan with an interest rate, maturity date and default provisions. The agreement also secures an obligation owed to the USA Capital Diversified Trust Deed Fund, LLC also known as the "10-90 Loan," as well as all other obligations owed to USACM and the other debtors.

The Court approved the motion with certain conditions including primarily that the agreement does not constitute a release by USACM and the other debtors of future claims against USAIP, and that any and all funds received into USACM resulting from the agreement be held in escrow pending a determination of which debtor or debtors should receive the funds.

The security agreement grants the debtors a security interest in USAIP's equity interests as part-owner in the following entities:

  • Capital Land Investors, LLC, which owns the land portion of the Fiesta USA/Stoneridge project, a master planned development on 640 acres located in Riverside County near Perris, Calif. (also collateral for 10-90 loan)
  • Random Developments, LLC, which owns the development portion of the Fiesta USA/Stoneridge project. (also collateral for 10-90 loan)
  • Ashby USA, LLC, which owns a portion of the Roripaugh Ranch project, an 800 acre master-planned community consisting of approximately 1,700 lots in Temecula, Calif. (also collateral for 10-90 loan)
  • Placer County Land Investors, LLC (f/k/a Placer County Land Speculators, LLC), which owns a project called Placer Vineyards, 338 acres of a master-planned community about 20 miles northeast of Sacramento, Calif.
  • Oak Mesa Investors, LLC, which owns the land portion of the Fiesta Oak Valley project, a more than 1,500 acre master-planned development along Interstate 10 east of Interstate 215 in Calimesa, Calif.
  • Buffalo Land Developments, LLC, which owns the development portion of the Fiesta Oak Valley project.
  • HMA Sales, LLC, which owns the Royal Resort, a 191-room boutique hotel and timeshare on Convention Center Drive in Las Vegas.
  • Tanamera Properties, LLC, which owns an interest in residential and commercial real estate developments, mainly in Northern Nevada, including Cabernet Highlands, LLC.

USA Commercial Mortgage Company
USA Commercial Mortgage Company and certain of its affiliates filed on April 13, 2006 voluntary petitions for reorganization under Chapter 11 with the U.S. Bankruptcy Court for the Southern District of Nevada. The company also does business under the name USA Capital.

Filings for Chapter 11 were made for USA Commercial Mortgage Company; USA Capital Realty Advisors, LLC; USA Securities, LLC; USA Capital First Trust Deed Fund, LLC; and, USA Capital Diversified Trust Deed Fund, LLC.

USA Commercial Mortgage Company, a privately-held company, is one of the nation's leading real estate lenders. Since 1989, USA Commercial Mortgage Company has provided more than $1 billion in short-term and permanent financing to homebuilders, commercial developers, apartment owners and institutions nationwide. The company is licensed by the State of Nevada Mortgage Lending Division (NV MBR #333) and has its headquarters at 4484 South Pecos Road, Las Vegas, Nevada, 89121.


MEDIA CONTACTS:

COMPANY
Mark L. Olson
USA Commercial Mortgage Co.
702.734.2400
702.353.6540 cell
molson@usacapitalcorp.com

PR AGENCY
Rob Santwer
Purdue Marion & Associates
702.734.2400 option 4
rob@purduemarion.com

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