**LOAN      AND SECURITY AGREEMENT**

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**TABLE      OF CONTENTS**

|                                                                                           | **PAGE** |
|------------------------------------------------------------------------------------------------|----------|
| SECTION                  1. DEFINITIONS                  AND INTERPRETATION               | 1        |
|                                                                                           | 1.1      | Terms                  Defined | 1 |
|                                                                                           | 1.2      | Accounting                  Principles | 9 |
|                                                                                           | 1.3      | Construction | 9 |
|                                                                                           |     |   |   |
| SECTION                  2. THE                  LOANS                                    | 9        |
|                                                                                           | 2.1      | Revolving                  Credit | 9 |
|                                                                                           | 2.2      | Letter                  of Credit | 9 |
|                                                                                           | 2.3      | Advances,                  Conversions, Renewals and Payments | 13 |
|                                                                                           | 2.4      | Interest | 15 |
|                                                                                           | 2.5      | Additional                  Interest Provisions | 16 |
|                                                                                           | 2.6      | Fees | 17 |
|                                                                                           | 2.7      | Prepayments | 18 |
|                                                                                           | 2.8      | Use                  of Proceeds | 18 |
|                                                                                           | 2.9      | Indemnity/Loss                  of Margin | 18 |
|                                                                                           | 2.10     | Capital                  Adequacy | 19 |
|                                                                                           | 2.11     | Termination                  of Loans | 19 |
|                                                                                           |     |   |   |
| SECTION                  3. COLLATERAL                                                    | 19       |
|                                                                                           | 3.1      | Description | 19 |
|                                                                                           | 3.2      | Other                  Actions | 19 |
|                                                                                           | 3.3      | Filing                  Security Agreement | 20 |
|                                                                                           | 3.4      | Power                  of Attorney | 20 |
|                                                                                           |     |   |   |
| SECTION                  4. CLOSING                  AND CONDITIONS PRECEDENT TO ADVANCES | 20       |
|                                                                                           | 4.1      | Resolutions,                  Opinions, and Other Documents | 20 |
|                                                                                           | 4.2      | Absence                  of Certain Events | 21 |
|                                                                                           | 4.3      | Warranties                  and Representations at Closing | 21 |
|                                                                                           | 4.4      | Compliance                  with this Agreement | 21 |
|                                                                                           | 4.5      | Closing | 21 |
|                                                                                           | 4.6      | Non-Waiver                  of Rights | 21 |
|                                                                                           | 4.7      | Conditions                  to Advances | 22 |
|                                                                                           |     |   |   |
| SECTION                  5. REPRESENTATIONS                  AND WARRANTIES               | 22       |
|                                                                                           | 5.1      | Organization                  and Validity | 22 |
|                                                                                           | 5.2      | Places                  of Business | 23 |
|                                                                                           | 5.3      | Pending                  Litigation | 23 |
|                                                                                           | 5.4      | Title                  to Properties | 23 |
|                                                                                           | 5.5      | Consent | 23 |
|                                                                                           | 5.6      | Taxes | 23 |

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|                                                                | 5.7    | Financial                  Statements                              | 24     |
|---------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|                                                                | 5.8    | Full                  Disclosure                                   | 24     |
|                                                                | 5.9    | Subsidiaries                                                       | 24     |
|                                                                | 5.10   | Guarantees,                  Contracts, etc.                       | 24     |
|                                                                | 5.11   | Government                  Regulations, etc.                      | 24     |
|                                                                | 5.12   | Names                                                              | 25     |
|                                                                | 5.13   | Other                  Associations                                | 26     |
|                                                                | 5.14   | Regulation                  O                                      | 26     |
|                                                                | 5.15   | Solvency                                                           | 26     |
|                                                                | 5.16   | Investment                  Company                                | 26     |
|                                                                | 5.17   | Anti-Terrorism                  Laws                               | 26     |
|                                                                | 5.18   | Bancorp                  Stock                                     | 27     |
|                                                                |   |                                                               |   |
| SECTION                  6. AFFIRMATIVE COVENANTS                   | 27     |
|                                                                | 6.1    | Payment                  of Taxes and Claims                       | 27     |
|                                                                | 6.2    | Maintenance                  of Properties and Corporate Existence | 28     |
|                                                                | 6.3    | Business                  Conducted                                | 28     |
|                                                                | 6.4    | Litigation                                                         | 29     |
|                                                                | 6.5    | Taxes                                                              | 29     |
|                                                                | 6.6    | Bank                  Accounts                                     | 29     |
|                                                                | 6.7    | Employee                  Benefit Plans                            | 29     |
|                                                                | 6.8    | Financial                  Covenants                               | 29     |
|                                                                | 6.9    | Financial                  and Business Information                | 30     |
|                                                                | 6.10   | Officers'                  Certificates                            | 31     |
|                                                                | 6.11   | Inspection                                                         | 31     |
|                                                                | 6.12   | Information                  to Participant                        | 32     |
|                                                                | 6.13   | Name                  Changes, Places of Business                  | 32     |
|                                                                | 6.14   | Bancorp                  Stock and Resource Capital Stock          | 32     |
|                                                                |   |                                                               |   |
| SECTION                  7. NEGATIVE                  COVENANT | 32     |
|                                                                | 7.1    | Merger,                  Consolidation, Dissolution or Liquidation | 32     |
|                                                                | 7.2    | Loans                  and Investments                             | 32     |
|                                                                | 7.3    | Liens                  and Encumbrances                            | 32     |
|                                                                | 7.4    | Guarantees                                                         | 32     |
|                                                                | 7.5    | Use                  of Lenders’ Name                        | 32     |
|                                                                | 7.6    | Miscellaneous                  Covenants                           | 33     |
|                                                                |   |
| SECTION                  8. DEFAULT                            | 33     |
|                                                                | 8.1    | Events                  of Default                                 | 33     |
|                                                                | 8.2    | Cure                                                               | 35     |
|                                                                | 8.3    | Rights                  and Remedies on Default                    | 35     |
|                                                                | 8.4    | Nature                  of Remedies                                | 36     |
|                                                                | 8.5    | Set-Off                                                            | 36     |

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| SECTION                  9. AGENT          | 36     |
|-------------------------------------------------|--------|
|                                            | 9.1    | Appointment                  and Authorization | 36 |
|                                            | 9.2    | General                  Immunity | 36 |
|                                            | 9.3    | Consultation                  with Counsel | 37 |
|                                            | 9.4    | Documents | 37 |
|                                            | 9.5    | Rights                  as a Lender | 37 |
|                                            | 9.6    | Responsibility                  of Agent | 37 |
|                                            | 9.7    | Collections                  and Disbursements | 37 |
|                                            | 9.8    | Indemnification | 38 |
|                                            | 9.9    | Expenses | 39 |
|                                            | 9.10   | No                  Reliance | 39 |
|                                            | 9.11   | Resignation                  of Agent | 39 |
|                                            | 9.12   | Action                  on Instructions of Lenders | 39 |
|                                            | 9.13   | Several                  Obligations | 39 |
|                                            |   |   |   |
| SECTION                  10. MISCELLANEOUS | 40     |
|                                            | 10.1   | Governing                  Law | 40 |
|                                            | 10.2   | Integrated                  Agreement | 40 |
|                                            | 10.3   | Waiver | 40 |
|                                            | 10.4   | Indemnity | 40 |
|                                            | 10.5   | Time | 41 |
|                                            | 10.6   | Expenses                  of Agent and Lenders | 41 |
|                                            | 10.7   | Brokerage | 41 |
|                                            | 10.8   | Notices | 42 |
|                                            | 10.9   | Headings | 42 |
|                                            | 10.10  | Survival | 43 |
|                                            | 10.11  | Amendments | 43 |
|                                            | 10.12  | Assignability | 44 |
|                                            | 10.13  | Successors                  and Assigns | 46 |
|                                            | 10.14  | Duplicate                  Originals | 46 |
|                                            | 10.15  | Modification | 46 |
|                                            | 10.16  | Signatories | 46 |
|                                            | 10.17  | Third                  Parties | 46 |
|                                            | 10.18  | Discharge                  of Taxes, Borrower’s Obligations, Etc. | 46 |
|                                            | 10.19  | Withholding                  and Other Tax Liabilities | 46 |
|                                            | 10.20  | Consent                  of Jurisdiction | 47 |
|                                            | 10.21  | Waiver                  of Jury Trail | 47 |

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**EXHIBITS        AND SCHEDULES**

| Exhibit                  A         | --  | Form                  of Authorization Certificate              |
|-----------------------------------------|----------|----------------------------------------------------------------------|
| Exhibit                  B         | --  | Form                  of Borrowing Request                      |
| Exhibit                  C         | --  | Form                  of Borrowing Base Certificate             |
| Exhibit                  D         | --  | Form                  of Compliance Certificate                 |
|                                    |     |                                                                 |
| Schedule                  A        | --  | Schedule                  of Lenders                            |
| Schedule                  B        | --  | Address                  of Lenders                             |
| Schedule                  1.1(b)   | --  | Permitted                  Liens                                |
| Schedule                  5.1      | --  | Borrower's                  States of Qualifications            |
| Schedule                  5.2      | --  | Places                  of Business                             |
| Schedule                  5.3      | --  | Judgments,                  Proceedings, Litigation and Orders  |
| Schedule                  5.7      | --  | Federal                  Tax Identification Numbers             |
| Schedule                  5.9      | --  | Subsidiary                  and Affiliates                      |
| Schedule                  5.11     | --  | Employee                  Benefit Plans                         |
| Schedule                  5.12(a)  | --  | Schedule                  of Names                              |
| Schedule                  5.13(b)  | --  | Trademarks,                  Patents and Copyrights             |
| Schedule                  5.13     | --  | Other                  Associations                             |
|                                    |     |                                                                 |
|                                    |     |                                                                 |
|                                    |     |                                                                 |

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**LOAN      AND SECURITY AGREEMENT**

**BACKGROUND**

**SECTION      1. **
**DEFINITIONS      AND INTERPRETATION**

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**SECTION      2. **
**THE      LOANS**

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**SECTION      3. **
**COLLATERAL**

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**SECTION      4. **
**CLOSING      AND CONDITIONS PRECEDENT TO ADVANCES**

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**SECTION      5. **
**REPRESENTATIONS      AND WARRANTIES**

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**SECTION      7. **
**NEGATIVE      COVENANTS:**

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**SECTION      8. **
**DEFAULT**

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**SECTION      9. **
**AGENT**

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**SECTION      10. **
**MISCELLANEOUS**

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| If                to Agent to: | Commerce                Bank, N.A.1701                  Route 70 EastCherry                  Hill, NJ 08034Attn:                  Mr. Gerard GradyTelecopy:                  (856) 751-6884 |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| With                copies to: | Blank                Rome LLPOne                Logan SquarePhiladelphia,                PA 19103Attn:                Robert I. Tuteur, EsquireTelecopy:                (215) 832-5687 |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| If                to Borrower to: | Resource                America, Inc.1845 Walnut Street, 10th FloorPhiladelphia,                PA 19103Attn:                  Steven J. KesslerTelecopy:                    (215) 546-4785 |
|-----------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| With                copies to: | Ledgwood,                a professional corporation |
|--------------------------------|-----------------------------------------------------|

|   | 1900                Market Street, Suite 750 |
|--------|----------------------------------------------|

|   | Philadelphia,                PA 19103 |
|--------|---------------------------------------|

|   | Attn:                Shelle Weisbaum, Esquire |
|--------|-----------------------------------------------|

|   | Telecopy:                (215) 735-2315 |
|--------|-----------------------------------------|

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| **BORROWER:**  |   | **RESOURCE                AMERICA, INC.**                                                                                                            |
|---------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                                                      |
|                |   | By:                 _____________________________ Name: _____________________________ Title: _____________________________  |
|                |   |                                                                                                                                                      |
| **AGENT:**     |   | **COMMERCE                BANK, N.A., as Agent**                                                                                                     |
|                |   | By:                 _____________________________ Name: _____________________________ Title: _____________________________  |
|                |   |                                                                                                                                                      |
| **LENDERS:**   |   | **COMMERCE                BANK, N.A., as Lender**                                                                                                    |
|                |   | By:                 _____________________________ Name: _____________________________ Title: _____________________________  |

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**Exhibit      A - Form of Authorization Certificate**

**Authorization      Certificate**

**Resource      America, Inc.**

**:**

**Commerce      Bank, N.A.**

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**Exhibit      B - Form of Borrowing **
**Request**

**Form      of Borrowing Request**

**RESOURCE      AMERICA, INC.**

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**Exhibit      C - Form of Borrowing Base Certificate**

**d.**
**Borrowing      Base - lesser of item (b) or      (c)                                      **
**$**

**h.**
**Excess      availability      /(overadvance)*                                                 **
**$**

***Calculated      by the Borrowing Base (d)**

**minus      item (g).**

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**Exhibit      D - Form of Compliance Certificate**

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**SCHEDULE      A**

| Lenders                            | Pro                Rata                Percentage |  Pro                Rata Share |
|------------------------------------|---------------------------------------------------|-------------------------------------|
|                               |                                              |                                |
| Commerce                Bank, N.A. | 100%                                              | 25,000,000                          |
|                               |                                              |                                |
|                               |                                              |                                |
|                               |                                              |                                |
|                               |                                              |                                |
|                               |                                              |                                |
|                               |                                              |                                |

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**SCHEDULE      B**

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