Risks include the following: (I) the debt instrument and associated security instrument are not insured by the FDIC or any other governmental agency; (ii) the value of the property is given by an appraiser reflecting his or her opinion of the value at a specific date. There is no assurance that the appraised value will reflect a fair market value, as general and local economic conditions may change; (iii) the Borrower’s ability to repay the loan will depend upon the Borrower’s financial conditions which could change over time; (iv) there are general risks associated with real estate investments including general or local economic conditions, neighborhood values, interest rates, real estate tax rates, the supply of and demand for properties of the type involved, the ability of the Borrower to obtain necessary alternative financing, governmental rules and acts of nature; (v) default by the Borrower could interrupt Lender’s monthly payments. Under extreme cases, it may be necessary to foreclose or take other actions to protect Lender’s investment. It is possible for the total amount recovered upon foreclosure to be less than the amount of the total Loan investment, with resulting loss of capital to the Lender; (vi) if Borrower files a reorganization or full insolvency bankruptcy, the foreclosure process could be stalled. Lender could incur significant legal fees and costs in attempting to obtain relief from the automatic freeze on collection proceedings provided by the Bankruptcy Code. Relief consists of obtaining court approval to release the property out of the bankruptcy so that the property can be foreclosed upon. Furthermore, the court could modify the terms of the Loan by extending the due date, changing the interest rate and payment structure, or causing the priority of the Loan to be subordinated to a bankruptcy court-approved financing plan; (vii) the Loan cannot readily be liquidated, transferred or sold; and (viii) challenges to the enforceability of the Loan Documents (including lender liability claims, claims of defective documentation and usury claims).