**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D. C. 20549**

**FORM      10-Q**

**For      the quarterly period ended June 30, 2007**

**001-33257**

**White      River Capital, Inc.**

| **Indiana**                                                                                             | **35-1908796**                                      |
|---------------------------------------------------------------------------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of  incorporation or                organization) | (I.R.S.                Employer Identification No.) |

**1445      Brookville Way, Suite I**

**Indianapolis,      Indiana 46239**

**(317)      806-2166**

----

**White      River Capital, Inc.**

**Form      10-Q for the Quarter Ended June 30, 2007**

**-      INDEX -**

|                               |                                                                                                                                                                          | PAGE   |
|------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART                I.             | FINANCIAL                INFORMATION                                                                                                                                          |   |
|                               |                                                                                                                                                                          |   |
| Item                1.   | Financial                Statements                                                                                                                                           |   |
|                               |                                                                                                                                                                          |   |
|                               | Unaudited                Condensed Consolidated Balance Sheets as of June 30, 2007 and December                31,                2006                                        | 1      |
|                               |                                                                                                                                                                          |   |
|                               | Unaudited                Condensed Consolidated Statements of Operations for the quarters                and six                months ended June 30, 2007 and 2006           | 2      |
|                               |                                                                                                                                                                          |   |
|                               | Unaudited                Condensed Consolidated Statements of Cash Flows for the six months                ended                June 30, 2007 and 2006                        | 3      |
|                               |                                                                                                                                                                          |   |
|                               | Unaudited                Condensed Consolidated Statements of Comprehensive Income for the                quarters                and six months ended June 30, 2007 and 2006 | 4      |
|                               |                                                                                                                                                                          |   |
|                               | Notes                to Unaudited Condensed Consolidated Financial Statements                                                                                                 | 5      |
|                               |                                                                                                                                                                          |   |
| Item                2.   | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations                                                     | 17     |
|                               |                                                                                                                                                                          |   |
| Item                4.   | Controls                and Procedures                                                                                                                                        | 35     |
|                               |                                                                                                                                                                          |   |
| PART                II.            | OTHER                INFORMATION                                                                                                                                              |   |
|                               |                                                                                                                                                                          |   |
| Item                4.   | Submission                of Matters to a Vote of Security Holders                                                                                                            | 36     |
|                               |                                                                                                                                                                          |   |
| Item                6.   | Exhibits                                                                                                                                                                      | 36     |
|                               |                                                                                                                                                                          |   |
| SIGNATURES                         | 37                                                                                                                                                                            |

----

**PART        I   FINANCIAL INFORMATION**

**PART        I**

----

**ITEM      1. FINANCIAL STATEMENTS.**

**(Dollars      in thousands)**

| **ASSETS**                                                                                                                                                                                                                     |   | **June                30, 2007** |    |   | **December                31, 2006** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|--------------------------------------|--------|
|                                                                                                                                                                                                                           |   |                             |    |   |                                 |   |
| Cash                and cash equivalents                                                                                                                                                                                       |   | $                                | 5,882   |   |                                 | $      | 6,958 |   |
| Restricted                cash                                                                                                                                                                                                 |   |                             | 6,737   |   |                                 |   | 13,618 |   |
| Securitized                finance receivables—net                                                                                                                                                                       |   |                             | 10,530  |   |                                 |   | 27,447 |   |
| Finance                receivables—net                                                                                                                                                                                   |   |                             | 81,460  |   |                                 |   | 78,693 |   |
| Beneficial                interest in Master Trust                                                                                                                                                                             |   |                             | 10,339  |   |                                 |   | 23,601 |   |
| Goodwill                                                                                                                                                                                                                       |   |                             | 34,698  |   |                                 |   | 34,698 |   |
| Deferred                tax assets—net                                                                                                                                                                                   |   |                             | 36,540  |   |                                 |   | 38,189 |   |
| Other                assets                                                                                                                                                                                                    |   |                             | 2,244   |   |                                 |   | 2,220 |   |
|                                                                                                                                                                                                                           |   |                             |    |   |                                 |   |   |   |
| TOTAL                                                                                                                                                                                                                          |   | $                                | 188,430 |   |                                 | $      | 225,424 |   |
|                                                                                                                                                                                                                           |   |                             |    |   |                                 |   |   |   |
|                                                                                                                                                                                                                           |   |                             |    |   |                                 |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                                                                                                                                                                  |   |                             |    |   |                                 |   |   |   |
|                                                                                                                                                                                                                           |   |                             |    |   |                                 |   |   |   |
| LIABILITIES:                                                                                                                                                                                                                   |   |                             |    |   |                                 |   |   |   |
| Collateralized                financings                                                                                                                                                                                       |   | $                                | 12,543  |   |                                 | $      | 32,368 |   |
| Line                of credit                                                                                                                                                                                                  |   |                             | 44,500  |   |                                 |   | 49,500 |   |
| Secured                note payable                                                                                                                                                                                            |   |                             | 11,250  |   |                                 |   | 13,125 |   |
| Subordinated                debentures                                                                                                                                                                                         |   |                             | -       |   |                                 |   | 7,700 |   |
| Accrued                interest                                                                                                                                                                                                |   |                             | 653     |   |                                 |   | 1,169 |   |
| Amounts                due to Master Trust                                                                                                                                                                                     |   |                             | 4,792   |   |                                 |   | 8,400 |   |
| Creditor                notes payable                                                                                                                                                                                          |   |                             | 1,053   |   |                                 |   | 1,392 |   |
| Other                payables and accrued expenses                                                                                                                                                                             |   |                             | 2,359   |   |                                 |   | 3,852 |   |
|                                                                                                                                                                                                                           |   |                             |    |   |                                 |   |   |   |
| Total                liabilities                                                                                                                                                                                               |   |                             | 77,150  |   |                                 |   | 117,506 |   |
|                                                                                                                                                                                                                           |   |                             |    |   |                                 |   |   |   |
| SHAREHOLDERS’                EQUITY:                                                                                                                                                                                     |   |                             |    |   |                                 |   |   |   |
|                                                                                                                                                                                                                           |   |                             |    |   |                                 |   |   |   |
| Preferred                Stock, without par value, authorized 3,000,000                shares; none issued and outstanding                                                                                                     |   |                             | -       |   |                                 |   | - |   |
| Common                Stock, without par value, authorized 20,000,000                shares; 3,842,287 and 3,813,155 issued and outstanding at June 30,                2007                and December 31, 2006, respectively |   |                             | 179,796 |   |                                 |   | 179,594 |   |
| Warrants,                150,000 outstanding at June 30, 2007 and December 31, 2006                                                                                                                                            |   |                             | 534     |   |                                 |   | 534 |   |
| Accumulated                other comprehensive income, net of taxes                                                                                                                                                            |   |                             | 6,228   |   |                                 |   | 11,107 |   |
| Accumulated                deficit                                                                                                                                                                                             |   |                             | (75,278 | )      |                                 |   | (83,317 | ) |
|                                                                                                                                                                                                                           |   |                             |    |   |                                 |   |   |   |
| Total                shareholders’ equity                                                                                                                                                                                |   |                             | 111,280 |   |                                 |   | 107,918 |   |
|                                                                                                                                                                                                                           |   |                             |    |   |                                 |   |   |   |
| TOTAL                                                                                                                                                                                                                          |   | $                                | 188,430 |   |                                 | $      | 225,424 |   |

----

**PART      I   FINANCIAL INFORMATION**

**WHITE      RIVER CAPITAL, INC. AND      SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF      OPERATIONS**

**(Unaudited)**

**(Dollars      in thousands, except per share      amounts)**

**                                             **

|                                                                                                     |   | **Quarters                Ended June                30,** |      |   | **Six                Months Ended June 30,** |   |
|----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|-----------|--------|----------------------------------------------|--------|
|                                                                                                     |   | **2007**                                                  |      |   | **2006**                                     |   |   | **2007** |   |   | **2006** |   |
| INTEREST:                                                                                                |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |
| Interest                on receivables                                                                   |   | $                                                         | 8,138     |   |                                         | $      | 9,577 |   |   | $ | 16,286 |   |   | $ | 19,609 |   |
| Accretion                and other interest                                                              |   |                                                      | 966       |   |                                         |   | 2,697 |   |   |   | 11,283 |   |   |   | 3,407 |   |
|                                                                                                     |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Total                interest income                                                                     |   |                                                      | 9,104     |   |                                         |   | 12,274 |   |   |   | 27,569 |   |   |   | 23,016 |   |
|                                                                                                     |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                                                                          |   |                                                      | (1,548    | )      |                                         |   | (3,082 | ) |   |   | (3,539 | ) |   |   | (6,423 | ) |
|                                                                                                     |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest margin                                                                       |   |                                                      | 7,556     |   |                                         |   | 9,192 |   |   |   | 24,030 |   |   |   | 16,593 |   |
|                                                                                                     |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                          |   |                                                      | (862      | )      |                                         |   | 523 |   |   |   | (1,500 | ) |   |   | 385 |   |
|                                                                                                     |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest margin after recovery (provision) for estimated credit                losses |   |                                                      | 6,694     |   |                                         |   | 9,715 |   |   |   | 22,530 |   |   |   | 16,978 |   |
|                                                                                                     |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                REVENUES (EXPENSES):                                                                |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                and benefits                                                                     |   |                                                      | (2,010    | )      |                                         |   | (2,127 | ) |   |   | (4,152 | ) |   |   | (4,123 | ) |
| Third                party servicing expense                                                             |   |                                                      | (136      | )      |                                         |   | (477 | ) |   |   | (354 | ) |   |   | (1,180 | ) |
| Other                operating expenses                                                                  |   |                                                      | (1,499    | )      |                                         |   | (1,611 | ) |   |   | (2,818 | ) |   |   | (3,217 | ) |
| Bankruptcy                costs                                                                          |   |                                                      | -         |   |                                         |   | (57 | ) |   |   | (6 | ) |   |   | (131 | ) |
| Charge                to Master Trust—net                                                          |   |                                                      | (429      | )      |                                         |   | (5,614 | ) |   |   | (1,490 | ) |   |   | (8,001 | ) |
| Change                in fair market valuation of creditor liabilities                                   |   |                                                      | 50        |   |                                         |   | - |   |   |   | (187 | ) |   |   | - |   |
| Gain                (loss) from extinguishment of debt                                                   |   |                                                      | -         |   |                                         |   | (202 | ) |   |   | - |   |   |   | (202 | ) |
| Gain                (loss) from deficiency sale                                                          |   |                                                      | (19       | )      |                                         |   | 3,663 |   |   |   | 22 |   |   |   | 3,709 |   |
| Other                income (expense)                                                                    |   |                                                      | (66       | )      |                                         |   | (100 | ) |   |   | 75 |   |   |   | (39 | ) |
|                                                                                                     |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Total                other revenues (expenses)                                                           |   |                                                      | (4,109    | )      |                                         |   | (6,525 | ) |   |   | (8,910 | ) |   |   | (13,184 | ) |
|                                                                                                     |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| INCOME                BEFORE INCOME TAXES                                                                |   |                                                      | 2,585     |   |                                         |   | 3,190 |   |   |   | 13,620 |   |   |   | 3,794 |   |
|                                                                                                     |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| INCOME                TAX BENEFIT (EXPENSE)                                                              |   |                                                      | (925      | )      |                                         |   | 439 |   |   |   | (4,949 | ) |   |   | 971 |   |
|                                                                                                     |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| NET                INCOME                                                                                |   | $                                                         | 1,660     |   |                                         | $      | 3,629 |   |   | $ | 8,671 |   |   | $ | 4,765 |   |
|                                                                                                     |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| NET                INCOME PER COMMON SHARE (BASIC)                                                       |   | $                                                         | 0.43      |   |                                         | $      | 0.95 |   |   | $ | 2.26 |   |   | $ | 1.25 |   |
|                                                                                                     |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| NET                INCOME PER COMMON SHARE (DILUTED)                                                     |   | $                                                         | 0.42      |   |                                         | $      | 0.94 |   |   | $ | 2.20 |   |   | $ | 1.23 |   |
|                                                                                                     |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| BASIC                WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                                |   |                                                      | 3,842,287 |   |                                         |   | 3,813,155 |   |   |   | 3,839,080 |   |   |   | 3,812,989 |   |
|                                                                                                     |   |                                                      |      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| DILUTED                WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                              |   |                                                      | 3,949,069 |   |                                         |   | 3,868,828 |   |   |   | 3,940,983 |   |   |   | 3,866,358 |   |

----

**PART      I   FINANCIAL INFORMATION**

**WHITE      RIVER CAPITAL, INC. AND      SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF      CASH FLOWS**

**(Unaudited)**

**(Dollars      in      thousands)**

|                                                                                                                                                                                             |   | **Six                Months Ended June                30,** |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|---------|
|                                                                                                                                                                                             |   | **2007**                                                    |    |   | **2006** |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                             |   |                                                        |    |   |   |   |
| Net                income (loss)                                                                                                                                                                 |   | $                                                           | 8,671   |   |   | $ | 4,765 |   |
| Adjustments                to reconcile net income to net cash provided by (used in) operating                activities:                                                                        |   |                                                        |    |   |   |   |   |   |
| Accretion                of beneficial interest in Master Trust                                                                                                                                  |   |                                                        | (10,961 | ) |   |   | (2,942 | ) |
| Provision                (recovery) for estimated credit losses                                                                                                                                  |   |                                                        | 1,500   |   |   |   | (385 | ) |
| Amortization                and depreciation                                                                                                                                                     |   |                                                        | 214     |   |   |   | 249 |   |
| Amortization                of discount and interest accrued on creditor notes payable                                                                                                           |   |                                                        | 186     |   |   |   | 630 |   |
| Gain                from disposition of equipment                                                                                                                                                |   |                                                        | (14     | ) |   |   | - |   |
| Loss                (gain) from extinguishment of debt                                                                                                                                           |   |                                                        | -       |   |   |   | 202 |   |
| Deferred                income taxes                                                                                                                                                             |   |                                                        | 4,816   |   |   |   | (1,049 | ) |
| Change                in fair value of creditor notes payable                                                                                                                                    |   |                                                        | 187     |   |   |   | - |   |
| Stock                based compensation expense                                                                                                                                                  |   |                                                        | 202     |   |   |   | 102 |   |
| Changes                in assets and liabilities:                                                                                                                                                |   |                                                        |    |   |   |   |   |   |
| Accrued                interest receivable and other assets                                                                                                                                      |   |                                                        | 390     |   |   |   | (1,231 | ) |
| Amounts                due to Master Trust                                                                                                                                                       |   |                                                        | (3,609  | ) |   |   | (103 | ) |
| Payment                of creditor notes payable accrued interest                                                                                                                                |   |                                                        | (137    | ) |   |   | (251 | ) |
| Other                payables and accrued expenses                                                                                                                                               |   |                                                        | (1,915  | ) |   |   | 791 |   |
| Net                cash provided by (used in) operating activities                                                                                                                               |   |                                                        | (470    | ) |   |   | 778 |   |
|                                                                                                                                                                                             |   |                                                        |    |   |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                             |   |                                                        |    |   |   |   |   |   |
| Payment                of Coastal Credit purchase holdback                                                                                                                                       |   |                                                        | -       |   |   |   | (3,840 | ) |
| Principal                collections and recoveries on securitized finance                receivables                                                                                            |   |                                                        | 17,477  |   |   |   | 53,466 |   |
| Purchase                of finance receivables                                                                                                                                                   |   |                                                        | (31,862 | ) |   |   | (34,288 | ) |
| Collections                on finance receivables                                                                                                                                                |   |                                                        | 25,961  |   |   |   | 25,210 |   |
| Principal                collections and recoveries on receivables held for                investment                                                                                            |   |                                                        | 654     |   |   |   | 1,967 |   |
| Collections                on beneficial interest in Master Trust                                                                                                                                |   |                                                        | 16,481  |   |   |   | 2,953 |   |
| Change                in restricted cash                                                                                                                                                         |   |                                                        | 6,881   |   |   |   | 4,657 |   |
| Proceeds                from sale of equipment                                                                                                                                                   |   |                                                        | 14      |   |   |   | - |   |
| Capital                expenditures                                                                                                                                                              |   |                                                        | (151    | ) |   |   | (31 | ) |
| Net                cash provided by (used in) investing activities                                                                                                                               |   |                                                        | 35,455  |   |   |   | 50,094 |   |
|                                                                                                                                                                                             |   |                                                        |    |   |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                             |   |                                                        |    |   |   |   |   |   |
| Principal                payments on collateralized financings                                                                                                                                   |   |                                                        | (19,825 | ) |   |   | (56,952 | ) |
| Principal                payments on secured note payable                                                                                                                                        |   |                                                        | (1,875  | ) |   |   | - |   |
| Principal                payments on creditor notes payable                                                                                                                                      |   |                                                        | (1,661  | ) |   |   | (389 | ) |
| Net                borrowing (repayment) in line of credit                                                                                                                                       |   |                                                        | (5,000  | ) |   |   | 6,000 |   |
| Principal                payments of subordinated debentures                                                                                                                                     |   |                                                        | (7,700  | ) |   |   | - |   |
| Net                cash provided by (used in) financing activities                                                                                                                               |   |                                                        | (36,061 | ) |   |   | (51,341 | ) |
|                                                                                                                                                                                             |   |                                                        |    |   |   |   |   |   |
| INCREASE                (DECREASE) IN CASH AND CASH EQUIVALENTS                                                                                                                                  |   |                                                        | (1,076  | ) |   |   | (469 | ) |
| CASH                AND CASH EQUIVALENTS—Beginning of year                                                                                                                                 |   |                                                        | 6,958   |   |   |   | 6,878 |   |
| CASH                AND CASH EQUIVALENTS—End of period                                                                                                                                     |   | $                                                           | 5,882   |   |   | $ | 6,409 |   |
|                                                                                                                                                                                             |   |                                                        |    |   |   |   |   |   |
| SUPPLEMENTAL                DISCLOSURES OF CASH FLOW INFORMATION:                                                                                                                                |   |                                                        |    |   |   |   |   |   |
| Income                tax refunds                                                                                                                                                                |   | $                                                           | 1       |   |   | $ | 2 |   |
| Interest                paid                                                                                                                                                                     |   | $                                                           | 3,705   |   |   | $ | 5,899 |   |
| Non                cash items:                                                                                                                                                                   |   |                                                        |    |   |   |   |   |   |
| Initial                fair value adjustment for creditor notes payable                                                                                                                          |   | $                                                           | 994     |   |   | $ | - |   |
| Transfer                of securitized finance receivables—net to other assets after the                collateralized financing for securitization 2003-A was paid in                full |   | $                                                           | -       |   |   | $ | 2,771 |   |

----

**PART      I   FINANCIAL INFORMATION**

**WHITE      RIVER CAPITAL, INC. AND      SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF      COMPREHENSIVE INCOME**

**(Unaudited)**

**(Dollars      in      thousands)**

|                                                                                   |   | **Quarters                Ended June                30,** |   |   | **Six                Months Ended June                30,** |   |
|----------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------------------------------|--------|
|                                                                                   |   | **2007**                                                  |   |   | **2006**                                                    |   |   | **2007** |   |   | **2006** |   |
|                                                                                   |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |
| NET                INCOME                                                              |   | $                                                         | 1,660  |   |                                                        | $      | 3,629 |   |   | $ | 8,671 |   |   | $ | 4,765 |   |
|                                                                                   |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                COMPREHENSIVE INCOME:                                             |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                gain on beneficial interest in Master Trust, net of tax      |   |                                                      | 534    |   |                                                        |   | 5,787 |   |   |   | 2,147 |   |   |   | 9,662 |   |
| Reclassification                adjustment for gain included in net income, net of tax |   |                                                      | (595   | )      |                                                        |   | (2,462 | ) |   |   | (7,026 | ) |   |   | (2,942 | ) |
| Net                other comprehensive income                                          |   |                                                      | (61    | )      |                                                        |   | 3,325 |   |   |   | (4,879 | ) |   |   | 6,720 |   |
|                                                                                   |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE                INCOME                                                    |   | $                                                         | 1,599  |   |                                                        | $      | 6,954 |   |   | $ | 3,792 |   |   | $ | 11,485 |   |

----

**PART      I   FINANCIAL INFORMATION**

**WHITE      RIVER CAPITAL, INC. AND SUBSIDIARIES**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) QUARTERS AND SIX      MONTHS ENDED JUNE 30, 2007 AND 2006**

| **1.** | **BASIS                OF PRESENTATION** |
|--------|------------------------------------------|

**New      Accounting Pronouncements**

*Fair Value Measurements*
*,*

*The Fair Value Option for      Financial Assets and Financial Liabilities*

----

**PART      I   FINANCIAL INFORMATION**

| **2.** | **GENERAL                DISCUSSION** |
|--------|---------------------------------------|

| **3.** | **NET                ASSETS OF COLLATERALIZED                FINANCINGS** |
|--------|---------------------------------------------------------------------------|

|   |                                                             |   | **June                30,** |   |   | **December                31,** |   |
|--------|------------------------------------------------------------------|--------|-----------------------------|--------|--------|---------------------------------|--------|
|   |                                                             |   | **2007**                    |   |   | **2006**                        |   |
|   |                                                             |   |                        |   |   |                            |   |   |   |
|   | Securitized                finance receivables—net         |   | $                           | 10.5   |   |                            | $      | 27.4 |   |
|   | Restricted                cash                                   |   |                        | 6.7    |   |                            |   | 13.3 |   |
|   | Receivable                from servicer included in other assets |   |                        | 0.2    |   |                            |   | 0.3 |   |
|   | Collateralized                financings                         |   |                        | (12.5  | )      |                            |   | (32.4 | ) |
|   | Accrued                interest payable                          |   |                        | 0.0    |   |                            |   | (0.1 | ) |
|   | Other                payables and accrued expenses               |   |                        | (0.1   | )      |                            |   | (0.1 | ) |
|   |                                                             |   |                        |   |   |                            |   |   |   |
|   | Amounts                due to Master Trust                       |   | $                           | 4.8    |   |                            | $      | 8.4 |   |

----

**PART        I   FINANCIAL INFORMATION**

| **4.** | **SECURITIZED                FINANCE RECEIVABLES—NET** |
|--------|--------------------------------------------------------------|

|   |                                                                |   | **June                30,** |   |   | **December                31,** |   |
|--------|---------------------------------------------------------------------|--------|-----------------------------|--------|--------|---------------------------------|--------|
|   |                                                                |   | **2007**                    |   |   | **2006**                        |   |
|   |                                                                |   |                        |   |   |                            |   |   |   |
|   | Principal                balance of securitized finance receivables |   | $                           | 10,755 |   |                            | $      | 28,800 |   |
|   | Accrued                interest receivable                          |   |                        | 97     |   |                            |   | 264 |   |
|   | Allowance                for credit losses                          |   |                        | (322   | )      |                            |   | (1,617 | ) |
|   |                                                                |   |                        |   |   |                            |   |   |   |
|   | Securitized                finance receivables—net            |   | $                           | 10,530 |   |                            | $      | 27,447 |   |

|   |                                                            |   | **Quarters                Ended June                30,** |   |   | **Six                Months Ended June                30,** |   |
|--------|-----------------------------------------------------------------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------------------------------|--------|
|   |                                                            |   | **2007**                                                  |   |   | **2006**                                                    |   |   | **2007** |   |   | **2006** |   |
|   |                                                            |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |
|   | Balance                at the beginning of period               |   | $                                                         | 881    |   |                                                        | $      | 4,867 |   |   | $ | 1,617 |   |   | $ | 6,503 |   |
|   | Charge-offs                                                     |   |                                                      | (627   | )      |                                                        |   | (2,064 | ) |   |   | (1,714 | ) |   |   | (6,316 | ) |
|   | Recoveries                                                      |   |                                                      | 900    |   |                                                        |   | 2,842 |   |   |   | 2,054 |   |   |   | 6,391 |   |
|   | Provision                (recovery) for estimated credit losses |   |                                                      | (832   | )      |                                                        |   | (1,556 | ) |   |   | (1,635 | ) |   |   | (2,489 | ) |
|   |                                                            |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance                at the end of the period                 |   | $                                                         | 322    |   |                                                        | $      | 4,089 |   |   | $ | 322 |   |   | $ | 4,089 |   |

| **5.** | **COLLATERALIZED                FINANCINGS** |
|--------|----------------------------------------------|

----

**PART      I   FINANCIAL INFORMATION**

|                            |   | **Note**  |   | **Initial                Note** |   |   | **June                30,** |   |   | **December                31,** |   |
|---------------------------------|--------|----------------|--------|---------------------------------|--------|--------|-----------------------------|--------|--------|---------------------------------|--------|
| **Notes                Series** |   | **Rate**  |   | **Amount**                      |   |   | **2007**                    |   |   | **2006**                        |   |
|                            |   |           |   |                            |   |   |                        |   |   |                            |   |   |
| Series                2004-A1   |   |           | 4.15   | %                               |   | $      | 29,485                      |   |   | $                               | -      |   |   | $ | 425 |   |
| Series                2004-A2   |   |           | 4.55   |                            |   |   | 29,298                      |   |   |                            | -      |   |   |   | 764 |   |
| Series                2004-B    |   |           | 5.02   |                            |   |   | 25,896                      |   |   |                            | -      |   |   |   | 1,009 |   |
| Series                2004-C    |   |           | 4.89   |                            |   |   | 51,992                      |   |   |                            | 1,233  |   |   |   | 3,946 |   |
| Series                2005-A    |   |           | 4.49   |                            |   |   | 47,742                      |   |   |                            | 2,113  |   |   |   | 5,564 |   |
| Series                2005-B    |   |           | 4.69   |                            |   |   | 50,684                      |   |   |                            | 3,439  |   |   |   | 8,087 |   |
| Series                2005-C    |   |           | 5.40   |                            |   |   | 54,933                      |   |   |                            | 5,758  |   |   |   | 12,573 |   |
|                            |   |           |   |                            |   |   |                        |   |   |                            |   |   |   |   |   |   |
|                            |   |           |   |                            |   | $      | 290,030                     |   |   | $                               | 12,543 |   |   | $ | 32,368 |   |

| **6.** | **BENEFICIAL                INTEREST IN MASTER TRUST** |
|--------|--------------------------------------------------------|

|   | § | *Credit                Loss Assumptions—*Gross credit losses are calculated using the loss to                liquidation factor methodology. The loss to liquidation methodology                takes                into account the current loss level of each securitized pool and                its “pool                factor,” which is the percentage remaining of the original pool balance.                Dividing the current cumulative net loss for each pool by its                corresponding pool factor, future projected cumulative net losses                were                calculated. However, recovery cash flows from gross credit losses                are                estimated independently as two different cash flow streams. These                two                recovery cash flow streams are: |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | *Liquidation                recovery*– consists of net auction proceeds, deficiency recoveries by                the servicer, and scheduled payments from defaulted accounts. On                a monthly                basis for each pool, liquidation recovery cash dollars as a percentage                of                gross default dollars has been calculated based on a rolling twelve                month                average. This twelve month average for each pool is used to project                monthly liquidation recovery by multiplying this value by the monthly                estimated gross default dollars                projected. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART      I   FINANCIAL INFORMATION**

|   | o | *Bankruptcy                recovery*– consists of cash recovered from accounts charged off and in                bankruptcy status. Bankruptcy cash flows are somewhat independent                of                default rates due to bankruptcy court involvement and the latitude                allowed                debtors during the bankruptcy process. UAC has observed a reasonably                predictable cash flow stream from bankruptcy payments in each securitized                pool. This cash flow stream will, however, eventually expire as the                bankruptcy cases are dismissed from the various courts with either                a                successful or non-successful outcome. A previous twelve month average                of                bankruptcy cash flows is calculated for each pool. This value is                then                reduced on a straight line basis over either a 13 or 25 month period.                The                bankruptcy recovery has been adjusted to reflect the percentage of                accounts remaining after a significant portion of the Chapter 13                bankruptcy receivables were sold during June                2006. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | *Prepayment                Assumptions*—UAC estimates prepayments by evaluating the historical                prepayment performance of each pool of receivables. UAC used annual                prepayment rates ranging from 30.9% to 40.2% at June 30, 2007 as                compared                to 30.2% to 46.0% at December 31,                2006. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | *Discount                Rate Assumptions*—UAC determines the estimated fair value of its                beneficial interest in Master Trust by discounting the expected cash                flows                released from the Master Trust account (the cash out method) using                a                discount rate that UAC believes is commensurate with the risks involved.                UAC used a discount rate of 15% to value the beneficial interest                in Master                Trust at June 30, 2007 and December 31, 2006 to reflect current                market conditions. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                                         |   | **Quarter                EndedJune                30,                2007** |   |   | **Six                Months EndedJune                30,                2007** |   |
|--------|------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|
|   |                                                                         |   |                                                                        |   |   |                                                                           |   |
|   | Beginning                balance                                             |   | $                                                                           | 10,079 |   |                                                                           | $      | 23,601 |   |
|   | Total                unrealized gains included in other comprehensive income |   |                                                                        | 842    |   |                                                                           |   | 3,381 |   |
|   | Purchases,                issuances and settlements                          |   |                                                                        | (582   | )      |                                                                           |   | (16,643 | ) |
|   | Transfers                in and/or out of Level 3                            |   |                                                                        | -      |   |                                                                           |   | - |   |
|   | Ending                balance                                                |   | $                                                                           | 10,339 |   |                                                                           | $      | 10,339 |   |

----

**PART        I   FINANCIAL INFORMATION**

| **7.** | **FINANCE                RECEIVABLES – NET** |
|--------|----------------------------------------------------|

|   |                                                                                                                           |   | **June                30,** |    |   | **December                31,** |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|---------------------------------|--------|
|   |                                                                                                                           |   | **2007**                    |    |   | **2006**                        |   |
|   |                                                                                                                           |   |                        |    |   |                            |   |
|   | Finance                receivables, gross                                                                                      |   | $                           | 106,027 |   |                            | $      | 104,399 |   |
|   | Unearned                interest                                                                                               |   |                        | (6,998  | )      |                            |   | (8,574 | ) |
|   | Finance                receivables, net of unearned finance charge income                                                      |   |                        | 99,029  |   |                            |   | 95,825 |   |
|   |                                                                                                                           |   |                        |    |   |                            |   |   |   |
|   | Accretable                unearned acquisition discounts and fees                                                              |   |                        | (11,785 | )      |                            |   | (11,438 | ) |
|   | Finance                receivables, net of unearned finance charge income and discounts                and                fees |   |                        | 87,244  |   |                            |   | 84,387 |   |
|   |                                                                                                                           |   |                        |    |   |                            |   |   |   |
|   | Allowance                for loan losses                                                                                       |   |                        | (5,784  | )      |                            |   | (5,694 | ) |
|   |                                                                                                                           |   |                        |    |   |                            |   |   |   |
|   | Finance                receivables, net                                                                                        |   | $                           | 81,460  |   |                            | $      | 78,693 |   |

|   |                                                 |   | **Quarters                Ended June                30,** |   |   | **Six                Months Ended June                30,** |   |
|--------|------------------------------------------------------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------------------------------|--------|
|   |                                                 |   | **2007**                                                  |   |   | **2006**                                                    |   |   | **2007** |   |   | **2006** |   |
|   |                                                 |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance                at beginning of period        |   | $                                                         | 5,694  |   |                                                        | $      | 5,916 |   |   | $ | 5,694 |   |   | $ | 6,031 |   |
|   | Charge-offs,                net of recoveries        |   |                                                      | (1,605 | )      |                                                        |   | (1,117 | ) |   |   | (3,045 | ) |   |   | (2,303 | ) |
|   | Provision                for estimated credit losses |   |                                                      | 1,695  |   |                                                        |   | 1,033 |   |   |   | 3,135 |   |   |   | 2,104 |   |
|   |                                                 |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance                at the end of the period      |   | $                                                         | 5,784  |   |                                                        | $      | 5,832 |   |   | $ | 5,784 |   |   | $ | 5,832 |   |

----

**PART      I   FINANCIAL INFORMATION**

| **8.** | **OTHER                ASSETS** |
|--------|---------------------------------|

|   |                                                               |   | **June                30,** |   |   | **December                31,** |   |
|--------|--------------------------------------------------------------------|--------|-----------------------------|--------|--------|---------------------------------|--------|
|   |                                                               |   | **2007**                    |   |   | **2006**                        |   |
|   |                                                               |   |                        |   |   |                            |   |
|   | Receivable                from servicer                            |   | $                           | 205    |   |                            | $      | 296 |   |
|   | Prepaid                expenses                                    |   |                        | 354    |   |                            |   | 408 |   |
|   | Property,                equipment and leasehold improvements, net |   |                        | 649    |   |                            |   | 609 |   |
|   | Receivables                held for investment, net                |   |                        | 635    |   |                            |   | 454 |   |
|   | Receivable                from Master Trust account                |   |                        | 283    |   |                            |   | 268 |   |
|   | Other                                                              |   |                        | 118    |   |                            |   | 185 |   |
|   | Total                other assets                                  |   | $                           | 2,244  |   |                            | $      | 2,220 |   |

| **9.** | **CREDITOR                NOTES PAYABLE** |
|--------|-------------------------------------------|

*Financial Reporting by Entities in Reorganization Under the Bankruptcy      Code*
*Accounting for Transfers and Servicing of Financial Assets and      Extinguishment of Liabilities*

----

**PART      I   FINANCIAL INFORMATION**

|   |                                                                                                 |   | **Quarter                EndedJune                30,                2007** |   |   | **Six                Months EndedJune                30,                2007** |   |
|--------|------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|
|   |                                                                                                 |   |                                                                        |   |   |                                                                           |   |
|   | Beginning                balance                                                                     |   | $                                                                           | 2,117  |   |                                                                           | $      | 2,478 |   |
|   | Total                losses (gains) included in earnings (recorded as other                revenues) |   |                                                                        | (50    | )      |                                                                           |   | 188 |   |
|   | Purchases,                issuances and settlements                                                  |   |                                                                        | (1,014 | )      |                                                                           |   | (1,613 | ) |
|   | Transfers                in and/or out of Level 3                                                    |   |                                                                        | -      |   |                                                                           |   | - |   |
|   | Ending                balance                                                                        |   | $                                                                           | 1,053  |   |                                                                           | $      | 1,053 |   |

| **10.** | **INCOME                TAXES** |
|---------|---------------------------------|

| **11.** | **BUSINESS                SEGMENT INFORMATION** |
|---------|-------------------------------------------------|

----

**PART      I   FINANCIAL INFORMATION**

----

**PART      I   FINANCIAL INFORMATION**

| **For                The Quarter Ended June 30, 2007**                                                                            |   | **UAC** |   |   | **Coastal                Credit** |   |   | **Corporate                and                Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|-----------------------------------|--------|--------|-------------------------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |
| Total                interest income                                                                                              |   | $       | 1,429  |   |                              | $      | 7,654  |                                                  |   | $      | 21               |   |   | $ | 9,104 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (279   | )      |                              |   | (952   | )                                                     |   |   | (317             | )      |   |   | (1,548 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 1,150  |   |                              |   | 6,702  |                                                  |   |   | (296             | )      |   |   | 7,556 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 833    |   |                              |   | (1,695 | )                                                     |   |   | -                |   |   |   | (862 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 1,983  |   |                              |   | 5,007  |                                                  |   |   | (296             | )      |   |   | 6,694 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Total                other revenues and (expenses)                                                                                |   |    | (9,939 | )      |                              |   | (2,833 | )                                                     |   |   | 8,663            |   |   |   | (4,109 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Income                (loss) before income taxes                                                                                  |   | $       | (7,956 | )      |                              | $      | 2,174  |                                                  |   | $      | 8,367            |   |   | $ | 2,585 |   |

| **For                The Quarter Ended June 30, 2006**                                                                            |   | **UAC** |   |   | **Coastal                Credit** |   |   | **Corporate                and                Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|-----------------------------------|--------|--------|-------------------------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |
| Total                interest income                                                                                              |   | $       | 5,052  |   |                              | $      | 7,208  |                                                  |   | $      | 14               |   |   | $ | 12,274 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (1,292 | )      |                              |   | (1,367 | )                                                     |   |   | (423             | )      |   |   | (3,082 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 3,760  |   |                              |   | 5,841  |                                                  |   |   | (409             | )      |   |   | 9,192 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 1,556  |   |                              |   | (1,033 | )                                                     |   |   | -                |   |   |   | 523 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 5,316  |   |                              |   | 4,808  |                                                  |   |   | (409             | )      |   |   | 9,715 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Total                other revenues and (expenses)                                                                                |   |    | (4,469 | )      |                              |   | (2,932 | )                                                     |   |   | 876              |   |   |   | (6,525 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Income                before income taxes                                                                                         |   | $       | 847    |   |                              | $      | 1,876  |                                                  |   | $      | 467              |   |   | $ | 3,190 |   |

| **For                The Six Months Ended June 30, 2007**                                                                         |   | **UAC** |    |   | **Coastal                Credit** |   |   | **Corporate                and                Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|---------|--------|-----------------------------------|--------|--------|-------------------------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |
| Total                interest income                                                                                              |   | $       | 12,479  |   |                              | $      | 15,041 |                                                  |   | $      | 49               |   |   | $ | 27,569 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (726    | )      |                              |   | (2,153 | )                                                     |   |   | (660             | )      |   |   | (3,539 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 11,753  |   |                              |   | 12,888 |                                                  |   |   | (611             | )      |   |   | 24,030 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 1,635   |   |                              |   | (3,135 | )                                                     |   |   | -                |   |   |   | (1,500 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 13,388  |   |                              |   | 9,753  |                                                  |   |   | (611             | )      |   |   | 22,530 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Total                other revenues and (expenses)                                                                                |   |    | (17,419 | )      |                              |   | (5,630 | )                                                     |   |   | 14,139           |   |   |   | (8,910 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Income                (loss) before income taxes                                                                                  |   | $       | (4,031  | )      |                              | $      | 4,123  |                                                  |   | $      | 13,528           |   |   | $ | 13,620 |   |

| **For                The Six Months Ended June 30, 2006**                                                                         |   | **UAC** |   |   | **Coastal                Credit** |   |   | **Corporate                and                Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|-----------------------------------|--------|--------|-------------------------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |
| Total                interest income                                                                                              |   | $       | 8,937  |   |                              | $      | 14,055 |                                                  |   | $      | 24               |   |   | $ | 23,016 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (2,917 | )      |                              |   | (2,565 | )                                                     |   |   | (941             | )      |   |   | (6,423 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 6,020  |   |                              |   | 11,490 |                                                  |   |   | (917             | )      |   |   | 16,593 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 2,489  |   |                              |   | (2,104 | )                                                     |   |   | -                |   |   |   | 385 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 8,509  |   |                              |   | 9,386  |                                                  |   |   | (917             | )      |   |   | 16,978 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Total                other revenues and (expenses)                                                                                |   |    | (7,936 | )      |                              |   | (5,629 | )                                                     |   |   | 381              |   |   |   | (13,184 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Income                (loss) before income taxes                                                                                  |   | $       | 573    |   |                              | $      | 3,757  |                                                  |   | $      | (536             | )      |   | $ | 3,794 |   |

----

**PART      I   FINANCIAL INFORMATION**

|   |                                              |   | **June                30,** |    |   | **December                31,** |   |
|--------|---------------------------------------------------|--------|-----------------------------|---------|--------|---------------------------------|--------|
|   |                                              |   | **2007**                    |    |   | **2006**                        |   |
|   |                                              |   |                        |    |   |                            |   |
|   | Corporate                and                other |   | $                           | 39,569  |   |                            | $      | 43,205 |   |
|   | Coastal                Credit                     |   |                        | 118,609 |   |                            |   | 114,900 |   |
|   | UAC                                               |   |                        | 30,252  |   |                            |   | 67,319 |   |
|   |                                              |   |                        |    |   |                            |   |   |   |
|   |                                              |   | $                           | 188,430 |   |                            | $      | 225,424 |   |

| **12.** | **STOCK                BASED COMPENSATION** |
|---------|---------------------------------------------|

*Share-Based Payment*

----

**PART      I   FINANCIAL INFORMATION**

| **13.** | **EARNINGS                PER SHARE** |
|---------|---------------------------------------|

|   |                                                                  |   | **Quarters                Ended June                30,** |      | **Six                Months Ended June                30,** |     |
|--------|-----------------------------------------------------------------------|--------|-----------------------------------------------------------|-----------|-------------------------------------------------------------|----------|
|   |                                                                  |   | **2007**                                                  |      |                                                        | **2006** |   |   | **2007** |   |   | **2006** |   |
|   |                                                                  |   |                                                      |      |                                                        |     |   |   |   |   |   |   |   |
|   | Net                income in thousands                                |   | $                                                         | 1,660     |                                                        |     | $ | 3,629 |   |   | $ | 8,671 |   |   | $ | 4,765 |   |
|   |                                                                  |   |                                                      |      |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |
|   | Weighted                average shares outstanding                    |   |                                                      | 3,842,287 |                                                        |     |   | 3,813,155 |   |   |   | 3,839,080 |   |   |   | 3,812,989 |   |
|   |                                                                  |   |                                                      |      |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |
|   | Incremental                shares from assumed conversions:           |   |
|   | Warrants                                                              |   |                                                      | 87,018    |                                                        |     |   | 51,321 |   |   |   | 85,096 |   |   |   | 51,197 |   |
|   | Stock                award plans                                      |   |                                                      | 19,764    |                                                        |     |   | 4,352 |   |   |   | 16,807 |   |   |   | 2,172 |   |
|   |                                                                  |   |                                                      |      |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |
|   | Weighted                average shares and assumed incremental shares |   |                                                      | 3,949,069 |                                                        |     |   | 3,868,828 |   |   |   | 3,940,983 |   |   |   | 3,866,358 |   |
|   |                                                                  |   |                                                      |      |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |
|   | Earnings                per share:                                    |   |
|   |                                                                  |   |                                                      |      |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |
|   | Basic                                                                 |   | $                                                         | 0.43      |                                                        |     | $ | 0.95 |   |   | $ | 2.26 |   |   | $ | 1.25 |   |
|   |                                                                  |   |                                                      |      |                                                        |     |   |   |   |   |   |   |   |   |   |   |   |
|   | Diluted                                                               |   | $                                                         | 0.42      |                                                        |     | $ | 0.94 |   |   | $ | 2.20 |   |   | $ | 1.23 |   |

| **14.** | **COMMITMENTS                AND CONTINGENCIES** |
|---------|--------------------------------------------------|

----

**PART          I   FINANCIAL INFORMATION**

**ITEM        2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF        OPERATIONS.**

**General**

**Critical      Accounting Policies**

***Net      Assets of Collateralized Financings***

----

**PART      I   FINANCIAL INFORMATION**

***Valuation      of Beneficial Interest in Master Trust***

***Allowance      for Loan Losses – Finance Receivables***

***Valuation      of Creditor Notes Payable***

***Income      Taxes***

*Accounting for Income Taxes*

----

**PART      I   FINANCIAL INFORMATION**

**New      Accounting Pronouncements**

*Fair Value Measurements*
*,*

*The Fair Value Option for      Financial Assets and Financial Liabilities*

**Results      of Operations**

*The      Quarter Ended June 30, 2007 Compared to the Quarter Ended June 30, 2006 –Overview*

|   | **§** | Interest                income for the quarter ended June 30, 2007 decreased $1.5 million                as a                result as a result of the continued liquidation of the UAC receivable                portfolio. |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | Accretion                and other income decreased $1.7 million to $1.0 million for the quarter                ended June 30, 2007 as compared to $2.7 million for the same period                during                2006. This decline is the result of the decline of accretion income                from                the beneficial interest in Master                Trust. |
|--------|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | A                provision for estimated credit losses of $(0.9) million was recognized                for                the quarter ended June 30, 2007 compared to a recovery of estimated                credit                losses of $0.5 million for the quarter ended June 30,                2006. |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | A                gain from deficiency sale of $3.7 million during the quarter ended                June                30, 2006, with no such gain occurring during the quarter ended June                30,                2007. |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | Income                tax expense was $(0.9) million for the quarter ended June 30, 2007                compared to an income tax benefit of $0.4 million for the quarter                ended                June 30, 2006. |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | Interest                expense for the quarter ended June 30, 2007 decreased $1.5 million                as the                result of the reductions of debt as compared to the quarter ended                June 30,                2007. |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | Charge                to master trust–net decreased $5.2 million during the quarter ended June                30, 2007 as compared to the quarter ended June 30, 2006 as a result                of the                reduction of the activity from UAC. |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART      I   FINANCIAL INFORMATION**

*The      Six Months Ended June 30, 2007 Compared to the Six Months Ended June30, 2006–Overview*

|   | **§** | Accretion                and other income increased $7.9 million during the six months ended                June                30, 2007 to $11.3 million as compared to $3.4 million for the same                period                during 2006. This increase is the result of the increase of accretion                income of the beneficial interest in Master                Trust. |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | Interest                expense for the six months ended June 30, 2007 decreased $2.9 million                as                the result of the reductions of debt as compared to the six months                ended                June 30, 2007. |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | Charge                to master trust–net decreased $6.5 million during the six months ended                June 30, 2007 as compared to the same period during 2006 as a result                of                the reduction of the activity from                UAC. |
|--------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | Interest                income for the six months ended June 30, 2007 decreased $3.3 million                as a                result as a result of the continued liquidation of the UAC receivable                portfolio. |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | A                provision for estimated credit losses of $(1.5) million was recognized                for                the six months ended June 30, 2007 compared to a recovery of estimated                credit losses of $0.4 million for the same period during                2006. |
|--------|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | A                gain from deficiency sale of $3.7 million during the six months ended                June                30, 2006, with no significant gain occurring during the six months                ended                June 30, 2007. |
|--------|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | Income                tax expense was $(4.9) million for the six months ended June 30,                2007                compared to an income tax benefit of $1.0 million for the six months                ended                June 30, 2006. |
|--------|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART      I   FINANCIAL INFORMATION**

**Discussion      of Results**

| **For                The Quarter Ended June 30,                2007**                                                             |   | **UAC** |   |   | **Coastal                Credit** |   |   | **Corporate                and                Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|-----------------------------------|--------|--------|-------------------------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |
| Interest                on receivables                                                                                            |   | $       | 484    |   |                              | $      | 7,654  |                                                  |   | $      | -                |   |   | $ | 8,138 |   |
| Accretion                and other interest                                                                                       |   |    | 945    |   |                              |   | -      |                                                  |   |   | 21               |   |   |   | 966 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Total                interest income                                                                                              |   |    | 1,429  |   |                              |   | 7,654  |                                                  |   |   | 21               |   |   |   | 9,104 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (279   | )      |                              |   | (952   | )                                                     |   |   | (317             | )      |   |   | (1,548 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 1,150  |   |                              |   | 6,702  |                                                  |   |   | (296             | )      |   |   | 7,556 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 833    |   |                              |   | (1,695 | )                                                     |   |   | -                |   |   |   | (862 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 1,983  |   |                              |   | 5,007  |                                                  |   |   | (296             | )      |   |   | 6,694 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| OTHER                REVENUES (EXPENSES):                                                                                         |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Salaries                and benefits                                                                                              |   |    | (64    | )      |                              |   | (1,797 | )                                                     |   |   | (149             | )      |   |   | (2,010 | ) |
| Operating                expenses                                                                                                 |   |    | (113   | )      |                              |   | (951   | )                                                     |   |   | (435             | )      |   |   | (1,499 | ) |
| Third                party servicing expense                                                                                      |   |    | (136   | )      |                              |   | -      |                                                  |   |   | -                |   |   |   | (136 | ) |
| Bankruptcy                costs                                                                                                   |   |    | -      |   |                              |   | -      |                                                  |   |   | -                |   |   |   | - |   |
| (Charge)                credit to master trust—net                                                                          |   |    | (429   | )      |                              |   | -      |                                                  |   |   | -                |   |   |   | (429 | ) |
| Change                in fair market valuation of creditor liabilities                                                            |   |    | 50     |   |                              |   | -      |                                                  |   |   | -                |   |   |   | 50 |   |
| Gain                from extinguishment of debt                                                                                   |   |    | (9,247 | )      |                              |   | -      |                                                  |   |   | 9,247            |   |   |   | - |   |
| Gain                (loss) from deficiency sale                                                                                   |   |    | (19    | )      |                              |   | -      |                                                  |   |   | -                |   |   |   | (19 | ) |
| Other                income (expense)                                                                                             |   |    | 19     |   |                              |   | (85    | )                                                     |   |   | -                |   |   |   | (66 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Total                other revenues (expenses)                                                                                    |   |    | (9,939 | )      |                              |   | (2,833 | )                                                     |   |   | 8,663            |   |   |   | (4,109 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Income                (loss) before income taxes                                                                                  |   |    | (7,956 | )      |                              |   | 2,174  |                                                  |   |   | 8,367            |   |   |   | 2,585 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Income                tax expense                                                                                                 |   |    | -      |   |                              |   | -      |                                                  |   |   | (925             | )      |   |   | (925 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                income (loss)                                                                                                  |   | $       | (7,956 | )      |                              | $      | 2,174  |                                                  |   | $      | 7,442            |   |   | $ | 1,660 |   |

| **For                The Quarter Ended June 30,                2006**                                                             |   | **UAC** |   |   | **Coastal                Credit** |   |   | **Corporate                and                Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|-----------------------------------|--------|--------|-------------------------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |
| Interest                on receivables                                                                                            |   | $       | 2,369  |   |                              | $      | 7,208  |                                                  |   | $      | -                |   |   | $ | 9,577 |   |
| Accretion                and other interest                                                                                       |   |    | 2,683  |   |                              |   | -      |                                                  |   |   | 14               |   |   |   | 2,697 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Total                interest income                                                                                              |   |    | 5,052  |   |                              |   | 7,208  |                                                  |   |   | 14               |   |   |   | 12,274 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (1,292 | )      |                              |   | (1,367 | )                                                     |   |   | (423             | )      |   |   | (3,082 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 3,760  |   |                              |   | 5,841  |                                                  |   |   | (409             | )      |   |   | 9,192 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 1,556  |   |                              |   | (1,033 | )                                                     |   |   | -                |   |   |   | 523 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 5,316  |   |                              |   | 4,808  |                                                  |   |   | (409             | )      |   |   | 9,715 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| OTHER                REVENUES (EXPENSES):                                                                                         |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Salaries                and benefits                                                                                              |   |    | (52    | )      |                              |   | (1,942 | )                                                     |   |   | (133             | )      |   |   | (2,127 | ) |
| Operating                expenses                                                                                                 |   |    | (216   | )      |                              |   | (839   | )                                                     |   |   | (556             | )      |   |   | (1,611 | ) |
| Third                party servicing expense                                                                                      |   |    | (477   | )      |                              |   | -      |                                                  |   |   | -                |   |   |   | (477 | ) |
| Bankruptcy                costs                                                                                                   |   |    | (57    | )      |                              |   | -      |                                                  |   |   | -                |   |   |   | (57 | ) |
| (Charge)                credit to master trust—net                                                                          |   |    | (5,614 | )      |                              |   | -      |                                                  |   |   | -                |   |   |   | (5,614 | ) |
| Change                in fair market valuation of creditor liabilities                                                            |   |    | -      |   |                              |   | -      |                                                  |   |   | -                |   |   |   | - |   |
| Gain                from extinguishment of debt                                                                                   |   |    | (1,767 | )      |                              |   | -      |                                                  |   |   | 1,565            |   |   |   | (202 | ) |
| Gain                from deficiency sale                                                                                          |   |    | 3,663  |   |                              |   | -      |                                                  |   |   | -                |   |   |   | 3,663 |   |
| Other                income (expense)                                                                                             |   |    | 51     |   |                              |   | (151   | )                                                     |   |   | -                |   |   |   | (100 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Total                other revenues (expenses)                                                                                    |   |    | (4,469 | )      |                              |   | (2,932 | )                                                     |   |   | 876              |   |   |   | (6,525 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Income                before income taxes                                                                                         |   |    | 847    |   |                              |   | 1,876  |                                                  |   |   | 467              |   |   |   | 3,190 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Income                tax benefit                                                                                                 |   |    | -      |   |                              |   | -      |                                                  |   |   | 439              |   |   |   | 439 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                income                                                                                                         |   | $       | 847    |   |                              | $      | 1,876  |                                                  |   | $      | 906              |   |   | $ | 3,629 |   |

----

**PART      I   FINANCIAL INFORMATION**

| **For                The Six Months Ended                June 30,                2007**                                           |   | **UAC** |    |   | **Coastal                Credit** |   |   | **Corporate                and                Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|---------|--------|-----------------------------------|--------|--------|-------------------------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |
| Interest                on receivables                                                                                            |   | $       | 1,245   |   |                              | $      | 15,041 |                                                  |   | $      | -                |   |   | $ | 16,286 |   |
| Accretion                and other interest                                                                                       |   |    | 11,234  |   |                              |   | -      |                                                  |   |   | 49               |   |   |   | 11,283 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Total                interest income                                                                                              |   |    | 12,479  |   |                              |   | 15,041 |                                                  |   |   | 49               |   |   |   | 27,569 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (726    | )      |                              |   | (2,153 | )                                                     |   |   | (660             | )      |   |   | (3,539 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 11,753  |   |                              |   | 12,888 |                                                  |   |   | (611             | )      |   |   | 24,030 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 1,635   |   |                              |   | (3,135 | )                                                     |   |   | -                |   |   |   | (1,500 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 13,388  |   |                              |   | 9,753  |                                                  |   |   | (611             | )      |   |   | 22,530 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| OTHER                REVENUES (EXPENSES):                                                                                         |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Salaries                and benefits                                                                                              |   |    | (132    | )      |                              |   | (3,751 | )                                                     |   |   | (269             | )      |   |   | (4,152 | ) |
| Operating                expenses                                                                                                 |   |    | (252    | )      |                              |   | (1,712 | )                                                     |   |   | (854             | )      |   |   | (2,818 | ) |
| Third                party servicing expense                                                                                      |   |    | (354    | )      |                              |   | -      |                                                  |   |   | -                |   |   |   | (354 | ) |
| Bankruptcy                costs                                                                                                   |   |    | (6      | )      |                              |   | -      |                                                  |   |   | -                |   |   |   | (6 | ) |
| (Charge)                credit to master trust—net                                                                          |   |    | (1,490  | )      |                              |   | -      |                                                  |   |   | -                |   |   |   | (1,490 | ) |
| Change                in fair market valuation of creditor liabilities                                                            |   |    | (187    | )      |                              |   | -      |                                                  |   |   | -                |   |   |   | (187 | ) |
| Gain                from extinguishment of debt                                                                                   |   |    | (15,262 | )      |                              |   | -      |                                                  |   |   | 15,262           |   |   |   | - |   |
| Gain                from deficiency sale                                                                                          |   |    | 22      |   |                              |   | -      |                                                  |   |   | -                |   |   |   | 22 |   |
| Other                income (expense)                                                                                             |   |    | 242     |   |                              |   | (167   | )                                                     |   |   | -                |   |   |   | 75 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Total                other revenues (expenses)                                                                                    |   |    | (17,419 | )      |                              |   | (5,630 | )                                                     |   |   | 14,139           |   |   |   | (8,910 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Income                (loss) before income taxes                                                                                  |   |    | (4,031  | )      |                              |   | 4,123  |                                                  |   |   | 13,528           |   |   |   | 13,620 |   |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Income                tax expense                                                                                                 |   |    | -       |   |                              |   | -      |                                                  |   |   | (4,949           | )      |   |   | (4,949 | ) |
|                                                                                                                              |   |    |    |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                income (loss)                                                                                                  |   | $       | (4,031  | )      |                              | $      | 4,123  |                                                  |   | $      | 8,579            |   |   | $ | 8,671 |   |

| **For                The Six Months Ended                June 30,                2006**                                           |   | **UAC** |   |   | **Coastal                Credit** |   |   | **Corporate                and                Other** |   |   | **Consolidated** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|-----------------------------------|--------|--------|-------------------------------------------------------|--------|--------|------------------|--------|
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |
| Interest                on receivables                                                                                            |   | $       | 5,554  |   |                              | $      | 14,055 |                                                  |   | $      | -                |   |   | $ | 19,609 |   |
| Accretion                and other interest                                                                                       |   |    | 3,383  |   |                              |   | -      |                                                  |   |   | 24               |   |   |   | 3,407 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Total                interest income                                                                                              |   |    | 8,937  |   |                              |   | 14,055 |                                                  |   |   | 24               |   |   |   | 23,016 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Interest                expense                                                                                                   |   |    | (2,917 | )      |                              |   | (2,565 | )                                                     |   |   | (941             | )      |   |   | (6,423 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin                                                                                                |   |    | 6,020  |   |                              |   | 11,490 |                                                  |   |   | (917             | )      |   |   | 16,593 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Recovery                (provision) for estimated credit losses                                                                   |   |    | 2,489  |   |                              |   | (2,104 | )                                                     |   |   | -                |   |   |   | 385 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                interest margin (deficit) after recovery (provision) for estimated                credit                losses |   |    | 8,509  |   |                              |   | 9,386  |                                                  |   |   | (917             | )      |   |   | 16,978 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| OTHER                REVENUES (EXPENSES):                                                                                         |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Salaries                and benefits                                                                                              |   |    | (171   | )      |                              |   | (3,746 | )                                                     |   |   | (206             | )      |   |   | (4,123 | ) |
| Operating                expenses                                                                                                 |   |    | (601   | )      |                              |   | (1,638 | )                                                     |   |   | (978             | )      |   |   | (3,217 | ) |
| Third                party servicing expense                                                                                      |   |    | (1,180 | )      |                              |   | -      |                                                  |   |   | -                |   |   |   | (1,180 | ) |
| Bankruptcy                costs                                                                                                   |   |    | (131   | )      |                              |   | -      |                                                  |   |   | -                |   |   |   | (131 | ) |
| (Charge)                credit to master trust—net                                                                          |   |    | (8,001 | )      |                              |   | -      |                                                  |   |   | -                |   |   |   | (8,001 | ) |
| Change                in fair market valuation of creditor liabilities                                                            |   |    | -      |   |                              |   | -      |                                                  |   |   | -                |   |   |   | - |   |
| Gain                from extinguishment of debt                                                                                   |   |    | (1,767 | )      |                              |   | -      |                                                  |   |   | 1,565            |   |   |   | (202 | ) |
| Gain                from deficiency sale                                                                                          |   |    | 3,709  |   |                              |   | -      |                                                  |   |   | -                |   |   |   | 3,709 |   |
| Other                income (expense)                                                                                             |   |    | 206    |   |                              |   | (245   | )                                                     |   |   | -                |   |   |   | (39 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Total                other revenues (expenses)                                                                                    |   |    | (7,936 | )      |                              |   | (5,629 | )                                                     |   |   | 381              |   |   |   | (13,184 | ) |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Income                (loss) before income taxes                                                                                  |   |    | 573    |   |                              |   | 3,757  |                                                  |   |   | (536             | )      |   |   | 3,794 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Income                tax benefit                                                                                                 |   |    | -      |   |                              |   | -      |                                                  |   |   | 971              |   |   |   | 971 |   |
|                                                                                                                              |   |    |   |   |                              |   |   |                                                  |   |   |             |   |   |   |   |   |
| Net                income                                                                                                         |   | $       | 573    |   |                              | $      | 3,757  |                                                  |   | $      | 435              |   |   | $ | 4,765 |   |

----

**PART      I   FINANCIAL INFORMATION**

***The      Quarter Ended June 30, 2007 Compared to the Quarter Ended June 30,      2006***

|   |                                                                          |   | **Quarters                Ended June                30,** |   |
|--------|-------------------------------------------------------------------------------|--------|-----------------------------------------------------------|--------|
|   |                                                                          |   | **2007**                                                  |   |   | **2006** |   |
|   |                                                                          |   |                                                      |   |   |   |   |
|   | UAC                discount accretion for beneficial interest in Master Trust |   | $                                                         | 834    |   |   | $ | 2,462 |   |
|   | Interest                on cash balances                                      |   |                                                      | 132    |   |   |   | 235 |   |
|   |                                                                          |   |                                                      |   |   |   |   |   |   |
|   | UAC                accretion and other interest income                        |   | $                                                         | 966    |   |   | $ | 2,697 |   |

----

**PART      I   FINANCIAL INFORMATION**

----

**PART      I   FINANCIAL INFORMATION**

***The      Six Months Ended June 30, 2007 Compared to the Six Months Ended June 30,      2006***

|   |                                                                          |   | **Six                Months Ended June                30,** |   |
|--------|-------------------------------------------------------------------------------|--------|-------------------------------------------------------------|--------|
|   |                                                                          |   | **2007**                                                    |   |   | **2006** |   |
|   |                                                                          |   |                                                        |   |   |   |   |
|   | UAC                discount accretion for beneficial interest in Master Trust |   | $                                                           | 10,961 |   |   | $ | 2,942 |   |
|   | Interest                on cash balances                                      |   |                                                        | 322    |   |   |   | 465 |   |
|   |                                                                          |   |                                                        |   |   |   |   |   |   |
|   | UAC                accretion and other interest income                        |   | $                                                           | 11,283 |   |   | $ | 3,407 |   |

----

**PART      I   FINANCIAL INFORMATION**

----

**PART      I   FINANCIAL INFORMATION**

**Financial      Condition as of June 30, 2007 and December 31, 2006**

***Securitized      Finance Receivables, Net***

|   |                                                                  |   | **June                30,** |   |   | **December                31,** |   |
|--------|-----------------------------------------------------------------------|--------|-----------------------------|--------|--------|---------------------------------|--------|
|   |                                                                  |   | **2007**                    |   |   | **2006**                        |   |
|   | **UAC                and Subsidiary Receivables Held for Investment** |   |                        |   |   |
|   | UAC                Owned (1)                                          |   | $                           | 112    |   |                            | $      | 188 |   |
|   | UACSC                Owned (2)                                        |   |                        | 538    |   |                            |   | 298 |   |
|   |                                                                  |   |                        | 650    |   |                            |   | 486 |   |
|   |                                                                  |   |                        |   |   |                            |   |   |   |
|   | **Securitized                Finance Receivables (3)**                |   |                        |   |   |                            |   |   |   |
|   | 2004-A1                                                               |   |                        | -      |   |                            |   | 414 |   |
|   | 2004-A2                                                               |   |                        | -      |   |                            |   | 637 |   |
|   | 2004-B                                                                |   |                        | -      |   |                            |   | 855 |   |
|   | 2004-C                                                                |   |                        | 1,015  |   |                            |   | 3,424 |   |
|   | 2005-A                                                                |   |                        | 1,730  |   |                            |   | 4,913 |   |
|   | 2005-B                                                                |   |                        | 2,974  |   |                            |   | 7,227 |   |
|   | 2005-C                                                                |   |                        | 5,036  |   |                            |   | 11,330 |   |
|   |                                                                  |   |                        | 10,755 |   |                            |   | 28,800 |   |
|   |                                                                  |   |                        |   |   |                            |   |   |   |
|   | **Off-Balance                Sheet Securitizations**                  |   |                        |   |   |                            |   |   |   |
|   | 2001-B                (4)                                             |   |                        | 2,400  |   |                            |   | 4,719 |   |
|   | 2001-C                                                                |   |                        | 7,698  |   |                            |   | 14,070 |   |
|   | 2002-A                                                                |   |                        | 8,208  |   |                            |   | 14,530 |   |
|   |                                                                  |   |                        | 18,306 |   |                            |   | 33,319 |   |
|   |                                                                  |   |                        |   |   |                            |   |   |   |
|   | Total                Portfolios                                       |   | $                           | 29,711 |   |                            | $      | 62,605 |   |

| (1) | Receivables                that are owned                directly by UAC and are not                leveraged. |
|-----|----------------------------------------------------------------------------------------------------------------|

| (2) | OnJune                8, 2007 the 2004-A1,                2004-A2 and 2004-B                notes were paid in full. The receivable portfolios are still owned                by                UACSC but are now recorded as held for                investment. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | On-balance                sheet portfolios held                by UACSC as collateral for non-recourse asset-backed                notes. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The                2001-B transaction represents                a separate issuance of notes, or a separate tranche, under the UACSC                1999                Master Owner Trust. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART      I   FINANCIAL INFORMATION**

***Finance      Receivables, Net***

***Beneficial      Interest in Master Trust***

***Collateralized      Financings***

----

**PART      I   FINANCIAL INFORMATION**

***Accrued      Interest Payable***

***Creditor      Notes Payable***

**Liquidity      and Capital Resources for the Six Months Ended June 30, 2007 and      2006**

----

**PART      I   FINANCIAL INFORMATION**

**Asset      Quality**

----

**PART      I   FINANCIAL INFORMATION**

***Securitized      Finance Receivables***

| **Current                Transaction**                                           |   | **Initial                Transaction** |   | **Original                Amount of Initial                Transaction** |      |   | **Remaining                Balance at June 30,                2007** |   |   | **Remaining                Balance as a Percentage                of Original Amount**  |   | **Net                Loss Incurred to Original                Amount at June 30,                2007**  |
|----------------------------------------------------------------------------------|--------|----------------------------------------|--------|--------------------------------------------------------------------------|-----------|--------|----------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|
|                                                                             |   |                                   |   |                                                                     |      |   |                                                                 |   |   |                                                                                         |   |                                                                                                         |   |   |
| On                Balance Sheet Securitized                Finance Receivables:  |   |                                   |   |                                                                     |      |   |                                                                 |   |   |                                                                                         |
| 2004-C                                                                           |   | 2000-B                                 |   | $                                                                        | 534,294   |   |                                                                 | $      | 1,015  |                                                                                         |   |                                                                                                         | 0.19 | % |   |   | 11.39 | % |
| 2005-A                                                                           |   | 2000-C                                 |   |                                                                     | 499,999   |   |                                                                 |   | 1,730  |                                                                                         |   |                                                                                                         | 0.35 | % |   |   | 9.44 | % |
| 2005-B                                                                           |   | 2000-D                                 |   |                                                                     | 510,000   |   |                                                                 |   | 2,974  |                                                                                         |   |                                                                                                         | 0.58 | % |   |   | 10.04 | % |
| 2005-C                                                                           |   | 2001-A                                 |   |                                                                     | 573,000   |   |                                                                 |   | 5,036  |                                                                                         |   |                                                                                                         | 0.88 | % |   |   | 9.20 | % |
|                                                                             |   |                                   |   |                                                                     | 2,117,293 |   |                                                                 |   | 10,755 |                                                                                         |   |                                                                                                         |   |   |   |   |   |   |
|                                                                             |   |                                   |   |                                                                     |      |   |                                                                 |   |   |                                                                                         |   |                                                                                                         |   |   |   |   |   |   |
| Off                Balance Sheet Securitized                Finance Receivables: |   |                                   |   |                                                                     |      |   |                                                                 |   |   |                                                                                         |   |                                                                                                         |   |
| 2001-B                                                                           |   |                                   |   |                                                                     | 150,002   |   |                                                                 |   | 2,400  |                                                                                         |   |                                                                                                         | 1.60 | % |   |   | 7.32 | % |
| 2001-C                                                                           |   |                                   |   |                                                                     | 330,000   |   |                                                                 |   | 7,698  |                                                                                         |   |                                                                                                         | 2.33 | % |   |   | 6.82 | % |
| 2002-A                                                                           |   |                                   |   |                                                                     | 300,000   |   |                                                                 |   | 8,208  |                                                                                         |   |                                                                                                         | 2.74 | % |   |   | 4.97 | % |
|                                                                             |   |                                   |   |                                                                     | 780,002   |   |                                                                 |   | 18,306 |                                                                                         |   |                                                                                                         |   |   |   |   |   |   |
|                                                                             |   |                                   |   |                                                                     |      |   |                                                                 |   |   |                                                                                         |   |                                                                                                         |   |   |   |   |   |   |
| Total                                                                            |   |                                   |   | $                                                                        | 2,897,295 |   |                                                                 | $      | 29,061 |                                                                                         |   |                                                                                                         | 1.00 | % |   |   | 8.55 | % |

----

**PART      I   FINANCIAL INFORMATION**

|   |                                                                                           |   | **June                30,                2007** |   |   | **December                31,                2006** |   |
|--------|------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
|   |                                                                                           |   |                                            |   |   |                                                |   |
|   | **Securitized                finance receivables                principal balance**            |   | $                                               | 10,755 |   |                                                | $      | 28,800 |   |
|   |                                                                                           |   |                                            |   |   |                                                |   |   |   |
|   | Delinquencies:                                                                                 |   |                                            |   |   |                                                |   |   |   |
|   | 30-59                days                                                                      |   | $                                               | 1,021  |   |                                                | $      | 2,812 |   |
|   | 60-89                days                                                                      |   |                                            | 283    |   |                                                |   | 748 |   |
|   | 90+                days                                                                        |   |                                            | 200    |   |                                                |   | 419 |   |
|   | Total                delinquencies                                                             |   | $                                               | 1,504  |   |                                                | $      | 3,979 |   |
|   |                                                                                           |   |                                            |   |   |                                                |   |   |   |
|   | Delinquencies                as a percentage of                securitized finance receivables |   |                                            | 14.0   | %      |                                                |   | 13.8 | % |
|   |                                                                                           |   |                                            |   |   |                                                |   |   |   |
|   | **Off-balance                sheet finance                receivables principal balance**      |   | $                                               | 18,306 |   |                                                | $      | 33,319 |   |
|   |                                                                                           |   |                                            |   |   |                                                |   |   |   |
|   | Delinquencies:                                                                                 |   |                                            |   |   |                                                |   |   |   |
|   | 30-59                days                                                                      |   | $                                               | 906    |   |                                                | $      | 1,929 |   |
|   | 60-89                days                                                                      |   |                                            | 223    |   |                                                |   | 544 |   |
|   | 90+                days                                                                        |   |                                            | 93     |   |                                                |   | 220 |   |
|   | Total                delinquencies                                                             |   | $                                               | 1,222  |   |                                                | $      | 2,693 |   |
|   |                                                                                           |   |                                            |   |   |                                                |   |   |   |
|   | Delinquencies                as a percentage of                securitized finance receivables |   |                                            | 6.7    | %      |                                                |   | 8.1 | % |

----

**PART      I   FINANCIAL INFORMATION**

|   |                                                                                                                  |   | **Quarters                Ended June                30,** |   |   | **Six                Months Ended June                30,** |   |
|--------|-----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------------------------------|--------|
|   |                                                                                                                  |   | **2007**                                                  |   |   | **2006**                                                    |   |   | **2007** |   |   | **2006** |   |
|   |                                                                                                                  |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |
|   | Balance                at the beginning of period                                                                     |   | $                                                         | 881    |   |                                                        | $      | 4,867 |   |   | $ | 1,617 |   |   | $ | 6,503 |   |
|   | Charge-offs                                                                                                           |   |                                                      | (627   | )      |                                                        |   | (2,064 | ) |   |   | (1,714 | ) |   |   | (6,316 | ) |
|   | Recoveries                                                                                                            |   |                                                      | 900    |   |                                                        |   | 2,842 |   |   |   | 2,054 |   |   |   | 6,391 |   |
|   | Provision                (recovery) for estimated credit losses                                                       |   |                                                      | (832   | )      |                                                        |   | (1,556 | ) |   |   | (1,635 | ) |   |   | (2,489 | ) |
|   |                                                                                                                  |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance                at the end of the period                                                                       |   | $                                                         | 322    |   |                                                        | $      | 4,089 |   |   | $ | 322 |   |   | $ | 4,089 |   |
|   |                                                                                                                  |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |
|   | Net                charge-offs (recoveries)                                                                           |   | $                                                         | (273   | )      |                                                        | $      | (778 | ) |   | $ | (340 | ) |   | $ | (75 | ) |
|   | Securitized                finance receivables                                                                        |   | $                                                         | 10,755 |   |                                                        | $      | 58,710 |   |   | $ | 10,755 |   |   | $ | 58,710 |   |
|   |                                                                                                                  |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |
|   | Allowance                for loan losses as a percent of securitized finance                receivables               |   |                                                      | 2.99   | %      |                                                        |   | 6.96 | % |   |   | 2.99 | % |   |   | 6.96 | % |
|   |                                                                                                                  |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |
|   | Annualized                net-charge offs (recoveries) as a percent of securitized finance                receivables |   |                                                      | (10.15 | )%     |                                                        |   | (5.30 | )% |   |   | (6.32 | )% |   |   | (0.26 | )% |

***Finance      Receivables***

|   |                                                                                |   | **June                30,** |    |   | **December                31,** |   |
|--------|-------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|---------------------------------|--------|
|   |                                                                                |   | **2007**                    |    |   | **2006**                        |   |
|   |                                                                                |   |                        |    |   |                            |   |
|   | Finance                receivables - gross balance                                  |   | $                           | 106,027 |   |                            | $      | 104,399 |   |
|   |                                                                                |   |                        |    |   |                            |   |   |   |
|   | Delinquencies:                                                                      |   |                        |    |   |                            |   |   |   |
|   | 30-59                days                                                           |   | $                           | 1,500   |   |                            | $      | 1,261 |   |
|   | 60-89                days                                                           |   |                        | 876     |   |                            |   | 898 |   |
|   | 90+                days                                                             |   |                        | 1,322   |   |                            |   | 1,208 |   |
|   | Total                delinquencies                                                  |   | $                           | 3,698   |   |                            | $      | 3,367 |   |
|   |                                                                                |   |                        |    |   |                            |   |   |   |
|   | Delinquencies                as a percentage of finance receivables - gross balance |   |                        | 3.5     | %      |                            |   | 3.2 | % |

----

**PART      I   FINANCIAL INFORMATION**

|   |                                                                                                                          |   | **Quarters                Ended June                30,** |   |   | **Six                Months Ended June                30,** |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------------------------------|--------|
|   |                                                                                                                          |   | **2007**                                                  |   |   | **2006**                                                    |   |   | **2007** |   |   | **2006** |   |
|   |                                                                                                                          |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |
|   | Balance                at beginning of period                                                                                 |   | $                                                         | 5,694  |   |                                                        | $      | 5,916 |   |   | $ | 5,694 |   |   | $ | 6,031 |   |
|   | Charge-offs,                net of recoveries                                                                                 |   |                                                      | (1,605 | )      |                                                        |   | (1,117 | ) |   |   | (3,045 | ) |   |   | (2,303 | ) |
|   | Provision                for estimated credit losses                                                                          |   |                                                      | 1,695  |   |                                                        |   | 1,033 |   |   |   | 3,135 |   |   |   | 2,104 |   |
|   |                                                                                                                          |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |
|   | Balance                at the end of the period                                                                               |   | $                                                         | 5,784  |   |                                                        | $      | 5,832 |   |   | $ | 5,784 |   |   | $ | 5,832 |   |
|   |                                                                                                                          |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |
|   | Net                charge-offs                                                                                                |   | $                                                         | 1,605  |   |                                                        | $      | 1,117 |   |   | $ | 3,045 |   |   | $ | 2,303 |   |
|   | Finance                receivables, net of unearned finance charges                                                           |   | $                                                         | 99,029 |   |                                                        | $      | 95,598 |   |   | $ | 99,029 |   |   | $ | 95,598 |   |
|   |                                                                                                                          |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |
|   | Allowance                for loan losses as a percent of finance receivables, net of unearned                finance charges  |   |                                                      | 5.84   | %      |                                                        |   | 6.10 | % |   |   | 5.84 | % |   |   | 6.10 | % |
|   |                                                                                                                          |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |
|   | Annualized                net charge-offs as a percent of finance receivables, net of unearned                finance charges |   |                                                      | 6.48   | %      |                                                        |   | 4.67 | % |   |   | 6.15 | % |   |   | 4.82 | % |
|   |                                                                                                                          |   |                                                      |   |   |                                                        |   |   |   |   |   |   |   |   |   |   |   |
|   | Allowance                for loan losses as a percent of annualized net charge-offs                                           |   |                                                      | 90.09  | %      |                                                        |   | 130.53 | % |   |   | 94.98 | % |   |   | 126.62 | % |

**Discussion      of Forward-Looking Statements**

|   | **§** | the                risks and uncertainties discussed in White River’s 2006 Annual Report on                Form 10-K; |
|--------|------------|-----------------------------------------------------------------------------------------------------------------------------|

|   | **§** | general                economic, market, or business                conditions; |
|--------|------------|---------------------------------------------------------------------------------|

----

**PART      I   FINANCIAL INFORMATION**

|   | **§** | changes                in interest rates, the cost of funds, and demand for White River’s                financial services; |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------------|

|   | **§** | changes                in White River’s competitive                position; |
|--------|------------|------------------------------------------------------------------------------------|

|   | **§** | White                River’s ability to manage growth; |
|--------|------------|--------------------------------------------------------------|

|   | **§** | the                opportunities that may be presented to and pursued by White                River; |
|--------|------------|------------------------------------------------------------------------------------------------------|

|   | **§** | competitive                actions by other companies; |
|--------|------------|--------------------------------------------------------|

|   | **§** | changes                in laws or regulations; |
|--------|------------|------------------------------------------------|

|   | **§** | changes                in the policies of federal or state regulators and agencies;                and |
|--------|------------|--------------------------------------------------------------------------------------------------------|

|   | **§** | other                circumstances, many of which are beyond White River’s                control. |
|--------|------------|----------------------------------------------------------------------------------------------------------|

**ITEM      4. CONTROLS AND PROCEDURES.**

**Evaluation      of disclosure controls and procedures**

**Changes      in internal control over financial reporting**

----

**Part I I  OTHER      INFORMATION**

----

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**

|   | **Nominee**                                         |   | **Votes                For**  |      | **Votes                Withheld**  |
|--------|-----------------------------------------------------|--------|------------------------------------|-----------|-----------------------------------------|
|   | John                M.                Eggemeyer     |   |                               | 3,600,781 |                                    |   |   | 2 |   |
|   | Thomas                C.                Heagy       |   |                               | 3,600,781 |                                    |   |   | 2 |   |
|   | William                E.                McKnight   |   |                               | 3,230,781 |                                    |   |   | 370,002 |   |
|   | Daniel                W.                Porter      |   |                               | 3,540,781 |                                    |   |   | 60,002 |   |
|   | John                W.                Rose          |   |                               | 3,230,781 |                                    |   |   | 370,002 |   |
|   | Mark                R. Ruh                          |   |                               | 3,600,781 |                                    |   |   | 2 |   |
|   | Richard                D.                Waterfield |   |                               | 3,574,505 |                                    |   |   | 26,278 |   |

**ITEM      6. EXHIBITS.**

| 31.1 | Certification                by Chief Executive Officer required by Rule 13a-14(a) or 15d-14(a)                of the                Exchange Act |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification                by Chief Financial Officer required by Rule 13a-14(a) or 15d-14(a)                of the                Exchange Act |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| 32 | Section                1350 Certifications |
|----|--------------------------------------------|

----

**SIGNATURES**

|                          | **White                River Capital, Inc.** |
|-------------------------------|----------------------------------------------|
|                          | (Registrant)                                 |
|                          |                                         |   |
| August                8, 2007 | By:                                          | /s/              Martin              J. Szumski |
|                          |                                         | Martin                J. Szumski |
|                          |                                         | Chief                Financial Officer |
|                          |                                         | (Signing                on behalf of the registrant as Principal Financial                Officer) |