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Exhibit 10.7

AMENDMENT NO. 11 TO
LOAN FUNDING AND SERVICING AGREEMENT
(VFCC Transaction with ACS Funding Trust I)

        THIS AMENDMENT NO. 11 TO LOAN FUNDING AND SERVICING AGREEMENT, dated as
of December 30, 2002 (this "Amendment"), is entered into by and among ACS
FUNDING TRUST I, as the borrower (in such capacity, the "Borrower"), AMERICAN
CAPITAL STRATEGIES, LTD., as the servicer (in such capacity, the "Servicer"),
certain INVESTORS, VARIABLE FUNDING CAPITAL CORPORATION, as a lender (in such
capacity, a "Lender"), WACHOVIA SECURITIES, INC. (f/k/a First Union
Securities, Inc. and successor-in-interest to First Union Capital Markets
Corp.), as the deal agent (in such capacity, the "Deal Agent"), WACHOVIA BANK,
NATIONAL ASSOCIATION (f/k/a First Union National Bank) ("WBNA"), as a lender (in
such capacity, a "Lender") and as the liquidity agent (in such capacity, the
"Liquidity Agent"), WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION (f/k/a
Norwest Bank Minnesota, National Association), as the collateral custodian (in
such capacity, the "Collateral Custodian") and as the backup servicer (in such
capacity, the "Backup Servicer"), and is acknowledged and agreed to by WACHOVIA
BANK, NATIONAL ASSOCIATION (f/k/a First Union National Bank), as the hedge
counterparty (in such capacity, the "Hedge Counterparty"). Capitalized terms
used and not otherwise defined herein shall have the meanings given to such
terms in the Agreement (as defined below).

R E C I T A L S

        WHEREAS, the parties hereto entered into that certain Loan Funding and
Servicing Agreement, dated as of March 31, 1999, as amended by that Amendment
No. 1, dated as of June 30, 1999, Amendment No. 2, dated as of September 24,
1999, Amendment No. 3, dated as of December 14, 1999, Amendment No. 4, dated as
of June 16, 2000, Amendment No. 5, dated as of December 20, 2000, Amendment
No. 6, dated as of March 29, 2001, Amendment No. 7, dated as of April 19, 2001,
Amendment No. 8, dated as of January 15, 2002, Amendment No. 9, dated as of
March 29, 2002 and Amendment No. 10, dated as of June 24, 2002 (such agreement
as amended, modified, supplemented, waived or restated from time to time, the
"Agreement");

        WHEREAS, the parties hereto desire to amend the Agreement in certain
respects as provided herein;

        NOW, THEREFORE, based upon the above Recitals, the mutual premises and
agreements contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

        SECTION 1.    Amendments.    

        (a)  The following definitions in Section 1.1 of the Agreement are
hereby amended and restated in their entirety as follows:

        "Borrowing Base: On any date of determination, an amount equal to
(a) the sum of (i) the Aggregate Purchased Loan Balance on such date and
(ii) the Purchased Loan Balance of all Eligible Loans to become included as part
of the Collateral on such date minus (b) the Hedging Agreement Valuation
Differential."

        "Facility Amount: (a) prior to the Facility Increase Expiration Date,
$275,000,000; and (b) on and after the Facility Increase Expiration Date,
$225,000,000; provided, however, on and after the Termination Date, the Facility
Amount shall be zero."

        "Facility Increase Expiration Date: January 31, 2003."

        "Required Notional Amount: For any day, an amount equal to the product
of (a)(i) from December 1, 2002 through and including February 28, 2003, 60% and
(ii) on and after March 1, 2003, 75% and (b) the Advances Outstanding on such
day."

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        (b)  Section 1.1 of the Agreement is amended by adding the following new
definition:

        "Hedging Agreement Valuation Differential: As of each Determination
Date, an amount equal to the positive difference (if any) between (i) the
negative valuation of the Hedging Agreement (from the Borrower's perspective) as
of such Determination Date as determined on a "marked to market" basis by the
Hedge Counterparty and set forth in a written notice provided by such Hedge
Counterparty to the Borrower and the Deal Agent, minus (ii) $3,215,200."

        (c)  Paragraphs (g) and (h) of the definition of "Concentration Limits"
in Section 1.1 of the Agreement are hereby amended and restated in their
entirety as follows:

        "(g) the sum of the Outstanding Loan Balances of Eligible Loans that
have at least a portion of the monthly or quarterly interest that is due under
such Loans payable on a current basis by the Obligors thereof in cash (or such
Obligors shall have other Loans included as part of the Collateral that pay
monthly or quarterly interest on a current basis in cash) shall not be less than
100%; and

        (h)  the sum of the Outstanding Loan Balances of each Eligible Loan
which is a PIK Loan and which is either (a) a Fixed Rate Loan having a Loan Rate
of less than 12% per annum or (b) a Floating Rate Loan having a Loan Rate of
less than 9% per annum, shall not exceed 0%."

        (d)  Subsection 2.1(a) of the Agreement is hereby amended by adding the
following sentence to the end thereof.

        "Notwithstanding anything to the contrary contained herein or in the
other Transaction Documents, from and during the time that the Advances
Outstanding (after giving effect to any Advance requested on a Funding Date)
exceed $225,000,000, each Advance shall be made in the sole and absolute
discretion of the Deal Agent."

        (e)  Article II of the Agreement is hereby amended by amending and
restating the first sentence of Section 2.5(a) thereof as follows:

        "Section 2.5    The Structured Notes.    

        (a)  The Borrower shall deliver to the Deal Agent, on behalf of the
Lenders, at the applicable address set forth on the signature pages of this
Agreement, a duly executed structured note, in the form of Exhibit B-2 (the
"VFCC Structured Note"), dated as of the date of this Agreement, in a face
amount prior to the Facility Increase Expiration Date equal to $275,000,000 and
on and after the Facility Increase Expiration Date, $225,000,000, and otherwise
duly completed in the case of VFCC Advances and a duly executed structured note,
in the form of Exhibit B-1 (the "WBNA Structured Note") dated as of the date of
this Agreement, in a face amount equal to the $30,000,000, and otherwise duly
completed in the case of WBNA Advances (the VFCC Structured Note together with
the WBNA Structured Note, the "Notes"); provided, however, that notwithstanding
anything to the contrary contained herein or in any other Transaction Document,
the indebtedness of the Borrower evidenced by the Notes shall not in the
aggregate exceed the Facility Amount."

        (f)    Subsection 6.25(a)(x) of the Agreement is hereby amended and
restated in its entirety as follows:

        "(x) the Servicer fails to maintain a minimum Net Worth of at least
$500,000,000 plus seventy-five (75%) percent of any new equity and Subordinated
Debt issued after September 30, 2002; or"

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        (g)  Subsection 7.1(c) of the Agreement is hereby amended and restated
in its entirety as follows:

        "(c) the amount of Advances Outstanding shall exceed the lesser of
(i) the product of (A) the Borrowing Base on such date and (B) 75%, or (ii) the
Facility Amount, for more than three (3) Business Days; or"

        (h)  The Commitment of WBNA as an Investor set forth on the signature
pages of the Agreement is hereby amended and restated to be "(a) prior to the
Facility Increase Expiration Date, $275,000,000; and (b) on and after the
Facility Increase Expiration Date, $225,000,000; provided, however, that the sum
of the Commitments of the Investors and the Lender shall not exceed the Facility
Amount."

        SECTION 2.    Increase in Facility Amount and Amount of VFCC Structured
Note.    

        Effective on the date of this Amendment, the Facility Amount shall be
increased to $275,000,000 until the Facility Increase Expiration Date in
accordance with the definition of Facility Amount in Section 1.1 of the
Agreement; provided, that, the Deal Agent shall have first received an executed
version of the amended, restated and substituted VFCC Structured Note attached
to this Amendment as Annex A (the "New Note"). Such New Note shall replace and
supersede any VFCC Structured Note previously executed by the Borrower pursuant
to the Agreement (the "Replaced Note"). Such New Note evidences the same
indebtedness, and is secured by the same Collateral as the Replaced Note. The
Deal Agent shall return the Replaced Note to the Borrower.

        SECTION 3.    Waiver.    

        Pursuant to and in accordance with the provisions of Section 11.1 of the
Agreement, each of the undersigned hereby agrees to waive non-compliance with
the provisions of (i) subsection 5.3(a)(iii) of the Agreement with respect to
the Required Notional Amount for the month of November 2002, and (ii) subsection
6.25(a)(x) with respect to the minimum Net Worth of the Servicer for the months
of October 2002 and November 2002. This is a one-time waiver and shall not be
construed to be (i) a waiver as to non-compliance with the any other covenants
in subsection 5.3(a) or any other Servicer Termination Event that exists, (ii) a
waiver as to any future or other non-compliance with the covenants in subsection
5.3(a)(iii) or subsection 6.25(a)(x), other than as specifically set forth in
the preceding sentence, (iii) a waiver of any other or future Unmatured
Termination Event or Termination Event that may exist, other than as
specifically set forth in the preceding sentence, or (iv) an amendment or
modification of the Agreement. This limited waiver is expressly subject to the
terms of this Amendment.

        SECTION 4.    Agreement in Full Force and Effect as Amended and
Waived.    

        Except as specifically amended and waived hereby, all provisions of the
Agreement shall remain in full force and effect. After this Amendment becomes
effective, all references to the Agreement, the "Loan Funding and Servicing
Agreement," "hereof," "herein," or words of similar effect referring to the
Agreement shall be deemed to mean the Agreement as amended hereby. This
Amendment shall not constitute a novation of the Agreement, but shall constitute
an amendment and waiver thereof. This Amendment shall not be deemed to expressly
or impliedly waive, amend or supplement any provision of the Agreement other
than as expressly set forth herein.

        SECTION 5.    Representations.    

        Each of the Borrower and Servicer represent and warrant as of the date
of this Amendment as follows:

        (i)    it is duly incorporated or organized, validly existing and in
good standing under the laws of its jurisdiction of incorporation or
organization;

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        (ii)  the execution, delivery and performance by it of this Amendment
are within its powers, have been duly authorized, and do not contravene (A) its
charter, bylaws, or other organizational documents, or (B) any Applicable Law;

        (iii)  no consent, license, permit, approval or authorization of, or
registration, filing or declaration with any governmental authority, is required
in connection with the execution, delivery, performance, validity or
enforceability of this Amendment by or against it;

        (iv)  this Amendment has been duly executed and delivered by it;

        (v)  this Amendment constitutes its legal, valid and binding obligation
enforceable against it in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting the enforcement of creditors' rights generally or by
general principles of equity;

        (vi)  it is not in default under the Agreement; and

        (vii) there is no Termination Event, Unmatured Termination Event, or
Servicer Termination Event.

        SECTION 6.    Conditions to Effectiveness.    

        This effectiveness of this Amendment is conditioned upon the payment by
the Servicer of all fees and expenses set forth on the Facility Increase Fee
Letter Agreement dated as of the date hereof among the Borrower, the Servicer
and the Deal Agent.

        SECTION 7.    Miscellaneous.    

        (a)  This Amendment may be executed in any number of counterparts
(including by facsimile), and by the different parties hereto on the same or
separate counterparts, each of which shall be deemed to be an original
instrument but all of which together shall constitute one and the same
agreement.

        (b)  The descriptive headings of the various sections of this Amendment
are inserted for convenience of reference only and shall not be deemed to affect
the meaning or construction of any of the provisions hereof.

        (c)  This Amendment may not be amended or otherwise modified except as
provided in the Agreement.

        (d)  WBNA certifies by execution hereof that it is an Investor with
Commitments in excess of 662/3% of the Facility Amount, and therefore is a
Required Investor pursuant to the Agreement.

        (e)  The failure or unenforceability of any provision hereof shall not
affect the other provisions of this Amendment.

        (f)    Whenever the context and construction so require, all words used
in the singular number herein shall be deemed to have been used in the plural,
and vice versa, and the masculine gender shall include the feminine and neuter
and the neuter shall include the masculine and feminine.

        (g)  This Amendment represents the final agreement between the parties
and may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements between the parties. There are no unwritten oral agreements
between the parties.

        (h)  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER
THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT OF LAWS
PROVISIONS.

[Remainder of Page Intentionally Left Blank]

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        IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

THE BORROWER:   ACS FUNDING TRUST I
    By:  

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    Name:  

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    Title:  

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ACS Funding Trust I
c/o American Capital Strategies, Ltd.
2 Bethesda Metro Center, 14th Floor
Bethesda, Maryland 20814
Attention: Compliance Officer
Facsimile: (301) 654-6714
Telephone: (301) 951-6122
THE SERVICER:
 
AMERICAN CAPITAL STRATEGIES, LTD.
    By:  

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    Name:  

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    Title:  

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American Capital Strategies, Ltd.
2 Bethesda Metro Center, 10 Floor
Bethesda, Maryland 20814
Attention: Compliance Officer
Facsimile: (301) 654-6714
Telephone: (301) 951-6122

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

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THE INVESTORS:   WACHOVIA BANK, NATIONAL ASSOCIATION
(f/k/a First Union National Bank)
 
 
By:
 

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    Name:  

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    Title:  

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Commitment: (a) prior to the Facility Increase Expiration Date, $275,000,000;
and (b) on and after the Facility Increase Expiration Date, $225,000,000;
provided, however, that the sum of the Commitments of the Investors and the
Lender shall not exceed the Facility Amount.
 
 
Wachovia Bank, National Association
One Wachovia Center, Mail Code: NC0610
301 South College Street
Charlotte, North Carolina 28288
Attention: Raj Shah
Facsimile: (704) 383-4012
Telephone: (704) 374-6230

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

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LENDER:   VARIABLE FUNDING CAPITAL CORPORATION

 
 
By Wachovia Securities, Inc. (f/k/a First Union Securities, Inc. and
successor-in-interest to First Union Capital Markets Corp.), as attorney-in-fact
 
 
By:
 

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    Name:  

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    Title:  

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Variable Funding Capital Corporation
c/o Wachovia Securities, Inc.
One Wachovia Center, Mail Code: NC0610
301 South College Street
Charlotte, North Carolina 28288
Attention: Conduit Administration
Facsimile: (704) 383-6036
Telephone: (704) 383-9343
                with a copy to:
 
 
 
 
 
 
Lord Securities Corp.
2 Wall Street, 19th Floor
New York, New York 10005
Attention: Vice President
Facsimile: (212) 346-9012
Telephone: (212) 346-9008

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

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THE BACKUP SERVICER:   WELLS FARGO BANK MINNESOTA,
NATIONAL ASSOCIATION (f/k/a Norwest Bank Minnesota, National Association)
 
 
By:
 

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    Name:  

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    Title:  

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Wells Fargo Bank Minnesota, National Association
Sixth Street and Marquette, MAC: N9311-161
Minneapolis, Minnesota 55479
Attention: Corporate Trust Services
Asset-Backed Administration
Facsimile: (612) 667-3464
Telephone: (612) 667-8058
THE COLLATERAL CUSTODIAN:
 
WELLS FARGO BANK MINNESOTA,
NATIONAL ASSOCIATION (f/k/a Norwest Bank Minnesota, National Association)
 
 
By:
 

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    Name:  

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    Title:  

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Wells Fargo Bank Minnesota, National Association
Sixth Street and Marquette, MAC: N9311-161
Minneapolis, Minnesota 55479
Attention: Corporate Trust Services
Asset-Backed Administration
Facsimile: (612) 667-3464
Telephone: (612) 667-8058

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

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THE DEAL AGENT:   WACHOVIA SECURITIES, INC.
(f/k/a First Union Securities, Inc. successor-in-interest to First Union Capital
Markets Corp.)
 
 
By:
 

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    Name:  

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    Title:  

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Wachovia Securities, Inc.
One Wachovia Center, Mail Code: NC0610
301 South College Street
Charlotte, North Carolina 28288
Attention: Mary K. Jett
Facsimile: (704) 383-4012
Telephone: (704) 383-0906
LENDER AND LIQUIDITY AGENT
 
WACHOVIA BANK, NATIONAL ASSOCIATION (f/k/a First Union National Bank)
 
 
By:
 

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    Name:  

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    Title:  

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Wachovia Bank, National Association
One Wachovia Center, Mail Code: NC0610
301 South College Street
Charlotte, North Carolina 28288
Attention: Raj Shah
Facsimile: (704) 383-4012
Telephone: (704) 374-6230
 
 
Lender Commitment: $30,000,000; provided, however, that the sum of the
Commitments of the Investors and the Lender shall not exceed the Facility
Amount.

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

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Acknowledged and Agreed to
this 27th day of December, 2002.
WACHOVIA BANK, NATIONAL ASSOCIATION
(f/k/a First Union National Bank), as the Hedge Counterparty By:  

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Name:  

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Title:  

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Wachovia Bank, National Association
One Wachovia Center, Mail Code: NC0610
Charlotte, North Carolina 28288
Attention: Raj Shah
Facsimile: (704) 383-4012
Telephone: (704) 374-6230

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ANNEX A

EXHIBIT B-2
To Loan Funding
and Servicing Agreement

(a) Prior to the Facility Increase Expiration
Date, $275,000,000, and (b) on and after the
Facility Increase Expiration
Date, $225,000,000; provided, however,
that the sum of the Commitments of
the Investors and the Lender shall not
exceed the Facility Amount.

March 31, 1999

AMENDED, RESTATED AND SUBSTITUTED
VFCC STRUCTURED NOTE

        THIS AMENDED, RESTATED AND SUBSTITUTED VFCC STRUCTURED NOTE (THE "VFCC
STRUCTURED NOTE") HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT") OR UNDER ANY STATE SECURITIES LAWS AND THE
BORROWER (AS DEFINED BELOW) HAS NOT BEEN REGISTERED UNDER THE INVESTMENT COMPANY
ACT OF 1940, AS AMENDED (THE "INVESTMENT COMPANY ACT"). THIS VFCC STRUCTURED
NOTE MAY NOT BE SOLD, OFFERED FOR SALE OR OTHERWISE TRANSFERRED WITHOUT
REGISTRATION UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS
EXCEPT IN A TRANSACTION THAT IS EXEMPTED UNDER THE SECURITIES ACT AND APPLICABLE
STATE SECURITIES LAWS.

        THIS VFCC STRUCTURED NOTE IS NOT PERMITTED TO BE TRANSFERRED, ASSIGNED,
EXCHANGED OR OTHERWISE PLEDGED OR CONVEYED EXCEPT IN COMPLIANCE WITH THE TERMS
OF THE LOAN FUNDING AND SERVICING AGREEMENT REFERRED TO HEREIN.

        IN NO EVENT SHALL THE BORROWER (DEFINED BELOW) BE ENTITLED TO HAVE
ADVANCES MADE TO IT UNDER THIS VFCC STRUCTURED NOTE AND THE WBNA STRUCTURED NOTE
IN AN AGGREGATE AMOUNT IN EXCESS OF THE FACILITY AMOUNT (AS DEFINED IN THE LOAN
FUNDING AND SERVICING AGREEMENT (AS DEFINED BELOW)).

        FOR VALUE RECEIVED, ACS FUNDING TRUST I, a Delaware business trust (the
"Borrower"), promises to pay to WACHOVIA SECURITIES, INC. (f/k/a First Union
Securities, Inc. and successor-in-interest to First Union Capital Markets
Corp.), as the deal agent for the Lenders (the "Deal Agent"), or the Lenders'
assigns, the principal sum of (a) prior to the Facility Increase Expiration
Date, TWO HUNDRED AND SEVENTY-FIVE MILLION DOLLARS ($275,000,000) and (b) on and
after the Facility Increase Expiration Date, TWO HUNDRED AND TWENTY-FIVE MILLION
DOLLARS ($225,000,000) or, if less, the unpaid principal amount of the aggregate
advances ("Advances") made by the Lenders (as defined below) to the Borrower
pursuant to the Loan Funding and Servicing Agreement (as defined below), as set
forth on the attached Schedule, on the dates specified in Section 2.6 of the
Loan Funding and Servicing Agreement, and to pay interest on the unpaid
principal amount of each Advance on each day that such unpaid principal amount
is outstanding at the Interest Rate related to such Advance as provided in the
Loan Funding and Servicing Agreement on each Payment Date and each other dates
specified in the Loan Funding and Servicing Agreement.

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        This VFCC Structured Note is issued pursuant to the Loan Funding and
Servicing Agreement, dated as of March 31, 1999, as amended by Amendment No. 1,
dated as of June 30, 1999, Amendment No. 2, dated as of September 24, 1999,
Amendment No. 3, dated as of December 14, 1999, Amendment No. 4, dated as of
June 16, 2000, Amendment No. 5, dated as of December 20, 2000, Amendment No. 6,
dated as of March 29, 200 1, Amendment No. 7, dated as of April 19, 200 1,
Amendment No. 8, dated as of January 15, 2002, Amendment No. 9, dated as of
March 29, 2002, Amendment No. 10, dated as of June 24, 2002 and Amendment
No. 11, dated as of December 30, 2002 (as amended, modified, waived,
supplemented, or restated from time to time, the "Loan Funding and Servicing
Agreement"), by and among the Borrower, American Capital Strategies, Ltd., as
servicer, Variable Funding Capital Corporation, as a lender, the Investors named
therein, Wells Fargo Bank Minnesota, National Association (f/k/a Norwest Bank
Minnesota, National Association), as backup servicer and as collateral
custodian, the Deal Agent, and Wachovia Bank, National Association (f/k/a First
Union National Bank), as a lender and as liquidity agent. Capitalized terms used
but not defined in this VFCC Structured Note are used with the meanings ascribed
to them in the Loan Funding and Servicing Agreement.

        Notwithstanding any other provisions contained in this VFCC Structured
Note, if at any time the Interest Rate payable by the Paying Agent on behalf of
the Borrower under this VFCC Structured Note, when combined with any and all
other charges provided for in this VFCC Structured Note, in the Loan Funding and
Servicing Agreement or in any other document (to the extent such other charges
would constitute interest for the purpose of any applicable law limiting
interest that may be charged on this VFCC Structured Note), exceeds the highest
rate of interest permissible under applicable law (the "Maximum Lawful Rate"),
then so long as the Maximum Lawful Rate would be exceeded the Interest Rate
under this VFCC Structured Note shall be equal to the Maximum Lawful Rate. If at
any time thereafter the Interest Rate payable under this VFCC Structured Note is
less than the Maximum Lawful Rate, the Paying Agent on behalf of the Borrower
shall continue to pay Interest under this VFCC Structured Note at the Maximum
Lawful Rate until such time as the total Interest paid by the Paying Agent on
behalf of the Borrower is equal to the total Interest that would have been paid
had applicable law not limited the Interest Rate payable under this VFCC
Structured Note. In no event shall the total Interest received by the Lenders
under this VFCC Structured Note exceed the amount which such Lenders could
lawfully have received had the Interest due under this VFCC Structured Note been
calculated since the date of this VFCC Structured Note at the Maximum Lawful
Rate.

        Payments of the principal of, and Interest on, the Advances by the
Lenders and represented by this VFCC Structured Note shall be made by the Paying
Agent on behalf of the Borrower to the holder or holders hereof by wire transfer
of immediately available funds in the manner and at the address specified for
such purpose as provided in the Loan Funding and Servicing Agreement, or in such
manner or at such other address as the holder or holders of this VFCC Structured
Note shall have specified in writing to the Borrower for such purpose, without
the presentation or surrender of this VFCC Structured Note or the making of any
notation on this VFCC Structured Note.

        If any payment under this VFCC Structured Note falls due on a day that
is not a Business Day, then such due date shall be extended to the next
succeeding Business Day and Interest shall be payable on any principal so
extended at the applicable Interest Rate.

        If all or a portion of (i) the principal amount hereof or (ii) any
Interest payable thereon or (iii) any other amounts payable hereunder shall not
be paid when due (whether at maturity, by acceleration or otherwise), such
overdue amount shall bear Interest at a rate per annum that is equal to the Base
Rate plus 1.0%, in each case from the date of such non-payment to (but
excluding) the date such amount is paid in full.

        Portions or all of the principal amount of the VFCC Structured Note
shall become due and payable at the time or times set forth in the Loan Funding
and Servicing Agreement. Any portion or

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all of the principal amount of this VFCC Structured Note may be prepaid,
together with Interest thereon (and, as set forth in the Loan Funding and
Servicing Agreement, certain costs and expenses of the Lenders) at the time and
in the manner set forth in, but subject to the provisions of, the Loan Funding
and Servicing Agreement.

        The Borrower expressly waives presentment, demand, diligence, protest
and all notices of any kind whatsoever with respect to this VFCC Structured
Note.

        All amounts evidenced by this VFCC Structured Note, the Advances,
Advances Outstanding and all payments and prepayments of the principal hereof
and the respective dates and maturity dates thereof shall be endorsed by the
Deal Agent, as agent for the Lenders, on the Schedule attached hereto and made a
part hereof or on a continuation thereof, which shall be attached hereto and
made a part hereof or otherwise recorded in its internal books or records or
computer system; provided, however, that the failure of the Deal Agent to make
such a notation or recordation shall not in any way limit or otherwise affect
the obligations of the Borrower under this VFCC Structured Note as provided in
the Loan Funding and Servicing Agreement.

        The holder or holders hereof may sell, assign, transfer, negotiate,
grant participations in or otherwise dispose of all or any portion of any
Advance, Advances Outstanding or the Commitment represented by this VFCC
Structured Note. All transfers and pledges of this VFCC Structured Note must be
done in compliance with the Securities Act, applicable state securities laws and
Article 8 of the UCC.

        This VFCC Structured Note is secured by the security interests granted
pursuant to Section 2.9 of the Loan Funding and Servicing Agreement. The holder
or holders of this VFCC Structured Note are entitled to the benefits of the Loan
Funding and Servicing Agreement and may enforce the agreements of the Borrower
contained in the Loan Funding and Servicing Agreement and exercise the remedies
provided for by, or otherwise available in respect of, the Loan Funding and
Servicing Agreement, all in accordance with, and subject to the restrictions
contained in, the terms of the Loan Funding and Servicing Agreement. If a
Termination Event shall occur and the Termination Date has been declared or has
otherwise occurred, the unpaid balance of the principal of all Advances,
together with accrued Interest thereon, shall be accelerated and become
immediately due and payable.

        This VFCC Structured Note is one of the "Structured Notes" referred to
in Section 2.5 of the Loan Funding and Servicing Agreement. THIS VFCC STRUCTURED
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE
OF NEW YORK.

        This VFCC Structured Note is intended to be and is a replacement of the
VFCC Structured Note, dated March 31, 1999, in the maximum principal amount of,
prior to the Facility Increase Expiration Date, $275,000,000, and on and after
the Facility Increase Expiration Date, $225,000,000 (the "Replaced Note"). This
VFCC Structured Note evidences the same indebtedness and is secured by the same
Collateral securing the Replaced Note and is not intended to constitute a
novation in any manner.

[Remainder of Page Intentionally Left Blank]

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        IN WITNESS WHEREOF, the undersigned has executed this VFCC Structured
Note as on the date first written above.

    ACS FUNDING TRUST I

 
 
By:
 

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    Name:  

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    Title:  

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Schedule attached to Amended, Restated and Substituted VFCC Structured Note
dated March 31, 1999 of ACS Funding Trust I payable to the order of Wachovia
Securities, Inc., as the Deal Agent

Advances Outstanding as of December 30, 2002
(Date of Amendment No. 11)
  $

Date of
Advance or
Repayment

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Principal
Amount of
Advance

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Principal
Amount of
Repayment

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Advances
Outstanding

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QuickLinks

Exhibit 10.7

AMENDMENT NO. 11 TO LOAN FUNDING AND SERVICING AGREEMENT (VFCC Transaction with
ACS Funding Trust I)
R E C I T A L S

ANNEX A

AMENDED, RESTATED AND SUBSTITUTED VFCC STRUCTURED NOTE