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First Trust Deed Fund Checks Mailed Out
UPDATE (Nov. 2) Checks for the current round of distributions to members of the USA Capital First Trust Deed Fund, LLC were mailed today via USPS. A total of 932 checks totaling $1.06 million were issued. The distribution amounts to the remaining June distribution plus all of July's distribution for Class A share members, and for Class B and C members the checks cover the remainder of June plus a portion of July.
(Oct. 20) Checks and statements of account activity for the period July 1 through Aug. 31, 2006 were mailed out of Las Vegas, via U.S. Postal Service, to investors on Friday, Oct. 20. This mailing did not include checks and statements of account activity for members of the First Trust Deed Fund or the Diversified Trust Deed Fund. Details for checks and statements for members of the First Trust Deed Fund is scheduled to be sent to the creditor committees by Nov. 3.
These statements reflect the calculation of the potential distribution due to investors based on the principal and interest that has been collected from the Borrowers by USACM on their investment notes during this period. The statements do not show the historical records of investors’ legal vesting accounts. The statements only show what money USACM has collected during this period and what is being paid to investors, if they are due to receive any distribution.
Investor History Reports, a complete transactional history on each loan from the time an investor joined the loan, will be prepared and sent in a separate mailing. The target date for this mailing is Nov. 6.
(Oct. 12): USACM yesterday delivered to the creditor committees the payment information for the next round of checks and statements. Assuming the committees use the entire 10-day comment period, and there are no material changes that need to be addressed, checks as well as new and expanded statements should be in the mail between Oct. 23 and Oct. 31. That “window” of time is required to accommodate the fact that checks and statements are printed, folded, stuffed and posted in-house, and we are limited by the equipment and staff available. If the committees finish their comments in less than 10 days, it may be possible to issues checks earlier than Oct. 23.
(Sept. 27): USACM is planning on delivering payment information for the next round of checks and statements to the creditor committees either Friday, Sept. 29 or Monday, Oct. 2. Once the committees receive the information they have a ten-day comment period to review the material. Assuming the committees use the entire ten-day comment period and there are no major issues that need to be resolved, checks and statements would be mailed out the week of Oct. 16.
(Sept. 14) USACM disclosed that the next distribution of funds to Direct Lenders and Fund members is tentatively scheduled for early October. Distributions to Direct Lenders will include interest and principal payments received into USACM in July and August.
Loans that paid off in July and August are:
- Midvale Marketplace, LLC
- Fiesta/Beaumont $2.4M
- Roam Development Group, LP
- Glendale Tower Partners, LP
- Urban Housing Alliance – 435 Lofts
- Boise/Gowen 93, LLC
- J. Jireh's Corporation
USACM is required to submit information about the proposed distribution of funds to the Committees by Sept. 29 for review. The Committees have 10 days to review the proposed distribution and respond with comments. Once approved, USACM will require a few days to implement any systems changes required before printing and mailing checks. Only physical checks will be sent, no direct deposit, ACH or EFT payments will be made.
Due to overwhelming response from USACM’s direct lenders, we are working on a substantial redesign of the Statements that will be mailed out in October. Our goal is to include in the statement the history of all transactions by the Direct Lender in each loan.
“The entire USACM/Mesirow team want all of our investors to know that we appreciate and listen to their feedback about the documentation we send them and are working hard to improve it to make it more easily understandable,” said Mark L. Olson, chief operating officer for USACM. “We have met and spoken with hundreds of investors and tried to offer on the website an interim explanation of the statements they have received so far. We ask that investors who have not yet had their questions answered please wait until the new statements are published in October before making further inquiries of the Company.”
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