e Fund's internally imposed investment restrictions and asset allocation model incorporate various restrictions
and investment parameters to manage the risk profile of the mortgage loan investments. e investment
restrictions permit the Fund to use leverage to maintain liquidity, for general working capital purposes, and to
bridge the timing differences between loan advances, maturities and equity offerings. e aggregate amount of
borrowing by the Fund may not exceed 20% of the book value of the Fund's mortgage investment portfolio.
In addition, the asset allocation model dictates the allocation of the mortgage investments based upon geographical,
borrower, zoning, term, security position and loan-to-appraised value criteria. At February 28, 2015, the Fund did
not employ leverage and was in compliance with its investment restrictions and the allocation model parameters.
e Fund is not subject to externally imposed capital requirements.
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