The recent downturn in the real estate market has impaired the value and performance of development projects across the country, including many of the geographic markets in which MKA operates. As a result, many of MKA's borrowers are facing market challenges that have affected their ability to repay MKA's loans as originally structured. To maximize the performance of its loan portfolio, MKA has taken significant steps to increase its in-house loan monitoring and workout capabilities, including entering into a partnership with DCC, an established real estate developer and construction management company with a 25+ year track record of acquiring, managing, and developing real estate owned (REO) and development properties in MKA's geographic markets. MKA closely and aggressively tracks the progress and performance of its projects. Site visits are typically made monthly by MKA professionals to track progress, and senior lenders are contacted at least weekly so MKA can be involved in their decision making processes. Upon completion of a thorough assessment of each project and property, the Company moves to employ the following options to maximize its investment return: