From: Hoeffel, Christopher [mailto:CHoeffel@Investcorp.

com]
Sent: Thursday, March 26, 2009 1:33 PM
To: LLPComments
Subject: Legacy Loan Program.

Thank you for the call and Q&A session today. A few questions that I was not able to ask:

• If a Participant Bank contributes assets to an auction, and subsequently decides not to

accept the highest bid, will the bid be used to value the asset on the bank’s balance
sheet? This may create a disincentive for banks to contribute assets to the program.
• Will there be representations and warranties made by the Selling bank or Loan Sale
Advisor related to the accuracy of information and the due diligence or credit work that
was conducted as part of the origination of the loan?
• Do you anticipate that FDIC insured loans secured by non cash-flow collateral (such as
construction loans or land loans) will be structured with capitalized interest or deferred
interest?
• How will UST’s warrants work related to a PPIF? Would this imply potential dilution of
the private partner equity?
• Will foreign investors be precluded from qualifying as Eligible Private Investors?

One additional comment: I believe it will be important to conduct auctions of varying size and
collateral to encourage the broadest participation from potential private investors. Very large
pools of assets, while efficient from distribution cost perspective, may only be viable investments
for the largest money managers or investment firms.

Thank you

J. Christopher Hoeffel
Managing Director
Investcorp International Inc.
280 Park Avenue | 36th Floor
New York, NY 10017
212-703-1147
choeffel@investcorp.com

"EMF <investcorp.com>" made the following annotations.

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