Special Servicing:

As Special Servicer, ACFI gets involved with the special servicing needs of loan when the obligor:

a) Indicates that it will have difficulty paying its debts;

b) Declares bankruptcy;

c) Becomes more than 15 days past due;

d) Has its franchise or lease rights terminated;

e) Has substantial other liabilities past due; or

f) Has its loan collateral materially damaged or impaired.

When a loan enters special servicing, ACFI will:

1) Restructure the loan or collateral position;

2) Start foreclosure proceedings;

3) Aggresively pursue all creditor's rights in bankruptcy proceedings; or

4) Enter into other “work-out” negotiations in an effort to maximize total recoveries on the loan.