USACM Checks Mailed On August 26th per August 4th Ruling

UPDATE (Sept. 5): Statements for the period ended June 30 that were mailed last week to USACM Direct Lenders with their checks contain incorrect Client ID numbers. The numbers printed on the statements that are labeled “Client ID” are actually the Account ID number used internally by USACM to identify the person associated with each Legal Vesting Account. The error does not in any way affect any of the 2,300 checks or statements mailed on August 26, but it may cause some confusion when Direct Lenders ask USACM to research questions about checks or statements. USACM apologizes for the error and any confusion it may have caused.

USACM investors typically established Legal Vesting Accounts with specific legal structures, trustees and beneficiaries, and then invested in loans under those accounts. USACM identifies each legal Vesting Account by a unique four-digit Client ID number. One person, however, may establish multiple Legal Vesting Accounts, and USACM identified each person by a unique four-digit Account ID number, no matter how many Legal Vesting Accounts he or she established.

Future statements will contain the Legal Vesting Account Name, Client ID and Account ID.

UPDATE (Aug. 29; 4:45pm PDT): USACM mailed out almost 2,300 checks for $65 million to investors via U.S. Postal Service First Class mail at 10 p.m. on Saturday, August 26, 2006. Please give the Post Office a few days to deliver these checks before contacting USACM to report any delay. USACM is not responsible for the performance of the USPS and we do not have any way to know exactly where any of these 2,300 checks are until they reach your mailbox or are returned to USACM as undeliverable.

UPDATE (Aug. 25; 4:45pm PDT): USACM now forecasts it will print checks and statements this afternoon and tonight, and will put the distribution in the mail in Las Vegas late Saturday afternoon. USACM received the signed Order late Thursday night. The specific provisions of the Order require custom modifications to the USACM account management and payments system, and USACM is making every effort to ensure the accuracy of the distribution.

UPDATE (Aug. 24; 5:00pm PDT): Enclosed with this paragraph is the Order approving the Interim Distribution of Funds (and related matters) entered today with the Court. USACM was required to have this Order before USACM could print and mail checks for the funds approved for distribution at the Aug. 4 hearing. USACM is making every best effort to get the checks out by the close of business Friday. USACM will work through the weekend, if necessary, to complete whatever is needed to get the checks out.

UPDATE (Aug. 22): The document linked here is the final draft of the Order required to be signed by all parties, the US Trustee and the Judge before USACM can distribute the funds from the Aug. 4 hearing. The Order is not yet signed and is posted here for informational purposes only.

(Aug. 22): Approximately 2,500 checks representing the interim distribution of more than $65 million of principal and interest held in the USACM Collection Account that was approved by Bankruptcy Court Judge Riegle on August 4, 2006 should be printed and in the mail by Friday, August 25th, according to USACM Chief Operating Officer Mark Olson.

The Court Order authorizing the distribution of funds is still being edited by the Committees. A final version was not available as of 10 AM Pacific Time today for USACM to circulate for signatures from the Committees, US Trustee and the Judge.

USACM requires the final order to have the specific instructions regarding exactly how much of the funds is to be paid to exactly which investors. Because this check run is outside the normal operation of the USACM payment system, specific instructions need to be coded into the system to enable the correct payments.

Because this interim distribution will be handled outside the normal operation of the USACM payment system, only physical checks will be produced and mailed. USACM will be unable to distribute funds via direct deposit, ACH or EFT.