Special Servicing

As Special Servicer, AMRESCO gets involved with the special servicing needs of a 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, AMRESCO will:

1) Restructure the loan or collateral position;

2) Start foreclosure proceedings;

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

4) Enter into other "workout" negotiations in an effort to maximize total recoveries on the loan.

AMRESCO's experienced team of Asset Managers develop a specific strategic action plan for each defaulted loan designed to maximize the recovery on that loan. Each action plan is documented in an Asset Review Report which is provided to the client monthly, or quarterly, as requested.