Checks Mailed Aug. 31 for USA Capital First Trust Deed Fund, LLC Distributions

(Sept. 1) Checks representing distributions to members of the USA Capital First Trust Deed Fund, LLC (“FTDF”) were mailed August 31. The company cut and mailed 932 checks for a total of $1,175,000. The FTDF has approximately 1,200 member names, but many of them have a zero share balance so they did not get checks. The checks represent full distributions of Class A (9%), B (10%), and C (11%) shares for the months of April and May, and a fraction of June. There was not enough money in the Fund account to make a full June distribution. The balance of June will be paid in the next distribution in September.

The funds available for distribution represent money held in the USACM Collection Account. Pre-paid interest was “netted” out of this amount and a reserve of $1,011,198.45 was established in accordance with the Order approved by the Court.

It is important for FTDF members receiving checks to know that the funds they are receiving are 100 percent principal even though the funds are being distributed according to the interest distribution schedule. The members and legal counsel for the Official Committee of Equity Security Holders of USA Capital First Trust Deed Fund, LLC directed USACM to make the distribution in this manner. FTDF members need to be aware and consult with their tax advisors about the implications of this type of distribution. The funds are 100 percent principal, even though they are bring paid out to you as interest.

Any FTDF member who has a question or concern about why the distribution was made in this manner should contact the legal counsel and/or Committee members for this Committee. Contact information can be found on the Official Committees page of this website. Please do not call USACM