IN TRADE For YOUR DEBT Guarantee 1

To time, the FDIC has involved two primary outdoors financial advisors to advertise the LLC membership interests to potential bidders, GlassRatner, and Keefe, Bruyette & Woods. The LLC that will keep loans the FDIC chooses to sell. The completely membership interest will be sold to a private customer. The sort of entity to be utilized by the public-private investment funds (“PPIFs”) has yet to be determined. Experienced bidders will need to have demonstrated financial capacity and the experience in disposing and handling of similar loan portfolios. Bidders must be eligible to purchase from the FDIC generally, as receiver.

The specific eligibility requirements for private traders have never been delineated, but the FDIC has indicated that potential bidders will need to qualify separately for each individual loan purchase transactions. Private investors are expected to include an array of different investors, including, however, not limited to, finance institutions, individuals, insurance firms, mutual funds, publicly managed investment funds, and pension funds, including private investor groups. The FDIC chairman recently indicated that banks might not be eligible to be purchasers in the Legacy Loans Program.

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Private investors might not participate in any PPIF that purchases assets from retailers that are affiliates of such traders or that represent 10 percent or more of the aggregate private capital in the PPIF. For the bid to be looked at in the auction process, the bid must be along with a refundable cash deposit for 5 percent of the bid value.

The LLC is obligated to service the loans by getting into a servicing agreement with a professional service and a custodian agreement with a record custodian for a regular monthly management charge. Servicing initially will be provided by the bank that markets the legacy loans to the PPIF, unless otherwise provided.

The PPIF will control servicing, subject to relevant contracts. The Private Purchaser will become the sole member and supervisor of the LLC and have full and exclusive power and discretion to manage the business and affairs of the LLC under an Operating Agreement. PPIFs will be handled (by the private customer or a supervisor retained by the private purchaser) within parameters to be founded by the FDIC and the Treasury, to confirm to the oversight and FDIC by FDIC.

The FDIC will be accountable for providing information required by the Treasury. The Treasury shall have a set collateral participation throughout the word of the PPIF. The Treasury will receive warrants as part of the PPIF transaction. The issuer and terms of the warrants have yet to be determined. Each Private Purchaser is accountable for making its independent investigation and evaluation of the LLC membership interest and the loans held by the LLC. Permissible leverage to be produced by the FDIC, based in part on the PPIP Legacy Loans Program. A third-party valuation firm selected by the FDIC provides unbiased valuation advice to the FDIC on each eligible asset pool.