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                                                                    EXHIBIT 10.1



                 THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT
                             THOUSAND TRAILS, INC.



         This Third Amendment to Loan and Security Agreement ("the Amendment")
is entered into as of January 5, 1998 by and between FOOTHILL CAPITAL
CORPORATION, a California corporation ("Foothill"), with an office located
11111 Santa Monica Boulevard, Suite 1500, Los Angeles, California 90025-3333,
on the one hand, and NATIONAL AMERICAN CORPORATION, a Nevada corporation
("National American"), THOUSAND TRAILS, INC., a Delaware corporation ("Thousand
Trails"), and the other party borrowers signatory hereto (each, together with
National American and Thousand Trails, individually a "Borrower" and
collectively, jointly and severally, "Borrowers"), on the other hand, in light
of the following facts:

                                     FACTS

         FACT ONE:  Foothill and Borrowers have previously entered into that
certain Loan and Security Agreement, dated as of July 10, 1996 (as amended and
supplemented, the "Agreement").

         FACT TWO:  Foothill and borrowers have agreed to amend the Agreement
as provided herein.

         NOW, THEREFORE, Foothill and borrower hereby amend and supplement the
Agreement as follows:


         1.    Schedule 5.4 (5/97) of the Agreement is amended by deleting "Palm
Springs Acreage* $1,800,000" in its entirety and substituting "Palm Springs
Acreage* $760,000" in lieu thereof.


         2.     In the event of a conflict between the terms and provisions of
this Amendment and the terms and provisions of the Agreement, the terms of this
Amendment shall govern.  In all other respects, the Agreement, as amended and
supplemented hereby, shall remain in full force and effect.

         IN WITNESS WHEREOF, Foothill and Borrower have executed this Amendment
as of the date first written above.


                                           
                                 "Foothill"
                                 
                                 FOOTHILL CAPITAL CORPORATION,
                                 a California corporation
                                 
                                 
                                 By:  /s/ Lisa M. Gonzales                 
                                    ---------------------------------------
                                         Lisa M. Gonzales
                                         Assistant Vice President
                                 
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                                 "Borrowers"
                                 
                                 NATIONAL AMERICAN CORPORATION,
                                 a Nevada corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 THOUSAND TRAILS, INC.,
                                 a Delaware corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 THOUSAND TRAILS (CANADA) INC.,
                                 a British Columbian corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 TT OFFSHORE, LTD,
                                 a Virginia corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 BEECH MOUNTAIN LAKES CORPORATION,
                                 a Pennsylvania corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 



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                                 CAROLINA LANDING CORPORATION,
                                 a South Carolina corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard      
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 CARRIAGE MANOR CORPORATION,
                                 a North Carolina corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 CB RESORT CORPORATION,
                                 a Massachusetts corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 CHEROKEE LANDING CORPORATION,
                                 a Tennessee corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 CHIEF CREEK CORPORATION,
                                 a Tennessee corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 
                                 
                                 

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                                 COAST FINANCIAL SERVICES, INC.,
                                 a Delaware corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 DIXIE RESORT CORPORATION,
                                 a Mississippi corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 FOXWOOD CORPORATION,
                                 a South Carolina corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 GL LAND DEVELOPMENT CORPORATION,
                                 an Oklahoma corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 LAKE ROYALE CORPORATION,
                                 a North Carolina corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 
                                 


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                                 LAKE TANSI VILLAGE, INC.,
                                 a Tennessee corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 LML RESORT CORPORATION,
                                 an Alabama corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 NATCHEZ TRACE WILDERNESS PRESERVE 
                                 CORPORATION, a Tennessee corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 QUAIL HOLLOW PLANTATION CORPORATION, a 
                                 Tennessee corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 QUAIL HOLLOW VILLAGE, INC.,
                                 a Pennsylvania corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 
                                 
                                 
                                 
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                                 RECREATION LAND CORPORATION,
                                 a Pennsylvania corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 RECREATION PROPERTIES, INC.,
                                 a Mississippi corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 RESORT LAND CORPORATION,
                                 an Arkansas corporation
                                 
                                                                           
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 RESORT PARKS INTERNATIONAL, INC.,
                                 a Georgia corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 TANSI RESORT, INC.,
                                 a Tennessee corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard          
                                         Title:  Vice President
                                 
                                 




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                                 THE KINSTON CORPORATION,
                                 a South Carolina corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 THE VILLAS OF HICKORY HILLS, INC.,
                                 a Mississippi corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 WESTERN FUN CORPORATION,
                                 a Texas corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 WESTWIND MANOR CORPORATION,
                                 a Texas corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 WOLF RUN MANOR CORPORATION,
                                 a Pennsylvania corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                
                                    ---------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 
                                 
                                 
                                 
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                                 UST WILDERNESS MANAGEMENT CORPORATION, a 
                                 Nevada corporation
                                 
                                 
                                 By:  /s/ Walter B. Jaccard                 
                                    ----------------------------------------
                                         Name:  Walter B. Jaccard
                                         Title:  Vice President
                                 
                                 
                                 
                                 
                                 

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