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<div align="left" style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>2. Finance Receivables, net:</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company’s principal business consists of the acquisition and collection of pools of
accounts that have experienced deterioration of credit quality between origination and the
Company’s acquisition of the accounts. The amount paid for any pool reflects the Company’s
determination that it is probable the Company will be unable to
collect all amounts due according
to an account’s contractual terms. At acquisition, the Company reviews the portfolio both by
account and aggregate pool to determine whether there is evidence of deterioration of credit
quality since origination and if it is probable that the Company will be unable
to collect all
amounts due according to the account’s contractual terms. If both conditions exist, the Company
determines whether each such account is to be accounted for individually or whether such accounts
will be assembled into pools based on common risk characteristics. The Company considers expected
prepayments and estimates the amount and timing of undiscounted expected principal, interest and
other cash flows for each acquired portfolio and subsequently aggregates pools of accounts. The
Company determines the excess of the pool’s scheduled contractual principal and contractual
interest payments over all cash flows expected at acquisition as an amount that should not be
accreted (nonaccretable difference) based on the Company’s proprietary acquisition models. The
remaining amount, representing the excess of the pool’s cash flows expected to be collected over
the amount paid, is accreted into income recognized on finance receivables over the remaining life
of the pool (accretable yield).
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company accounts for its investment in finance receivables under the guidance of FASB ASC
Topic 310-30 “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC 310-30”).
Under ASC 310-30, static pools of accounts may be established. These pools are aggregated based on
certain common risk criteria. Each static pool is recorded at cost, which includes certain direct
costs of acquisition paid to third parties, and is accounted for as a single unit for the
recognition of income, principal payments and loss provision. Once a static pool is established
for a calendar quarter, individual receivable accounts are not added to the pool (unless replaced
by the seller) or removed from the pool (unless sold or returned to the seller). ASC 310-30
requires that the excess of the contractual cash flows over expected cash flows, based on the
Company’s estimates derived from its proprietary collection models, not be recognized as an
adjustment of revenue or expense or on the balance sheet. ASC 310-30, utilizing the interest
method, initially freezes the yield estimated when the accounts are purchased as the basis for
subsequent impairment testing. Significant increases in actual, or expected future cash flows may
be recognized prospectively through an upward adjustment of the yield over a portfolio’s remaining
life. Any increase to the yield then becomes the new benchmark for impairment testing. Under ASC
310-30, rather than lowering the estimated yield if the collection estimates are not received or
projected to be received, the carrying value of a pool would be written down to maintain the then
current yield and is shown as a reduction in revenue in the consolidated income statements with a
corresponding valuation allowance offsetting finance receivables, net, on the consolidated balance
sheet. Income on finance receivables is accrued quarterly based on each static pool’s effective
yield. Quarterly cash flows greater than the interest accrual will reduce the carrying value of the
static pool. This reduction in carrying value is defined as payments applied to principal (also
referred to as finance receivable amortization). Likewise, cash flows that are less than the
interest accrual will accrete the carrying balance. The Company generally does not allow accretion
in the first six to twelve months; accordingly, the Company utilizes either the cost recovery
method or cash method when necessary to prevent accretion as permitted by ASC 310-30. The yield is
estimated and periodically recalculated based on the timing and amount of anticipated cash flows
using the Company’s proprietary collection models. A pool can
become fully amortized
(zero carrying balance on the balance sheet) while still generating cash collections. In this
case, all cash collections are recognized as revenue when received. Under the cash method, revenue
is recognized as it would be under the interest method up to the amount of cash collections.
Additionally, the Company uses the cost recovery method when collections on a particular pool of
accounts cannot be reasonably predicted. These cost recovery pools are not aggregated with other
portfolios. Under the cost recovery method, no revenue is recognized until the Company has fully
collected the cost of the portfolio, or until such time that the Company considers the collections
to be probable and estimable and begins to recognize income based on the interest method as
described above. At June 30, 2010 and December 31, 2009, the Company had unamortized purchased
principal (purchase price) in pools accounted for under the cost recovery method of $2.1 million
and $2.9 million, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company establishes valuation allowances for all acquired accounts subject to ASC 310-30
to reflect only those losses incurred after acquisition (that is, the present value of cash flows
initially expected at acquisition that are no longer expected to be collected). Valuation
allowances are established only subsequent to acquisition of the
accounts. At June 30, 2010 and December 31, 2009, the Company had an allowance against its
finance receivables of $64,445,000 and $51,255,000, respectively.
</div>
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</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company implements the accounting for income recognized on finance receivables under ASC
310-30 as follows. The Company creates each accounting pool using its projections of estimated
cash flows and expected economic life. The Company then computes the effective yield that fully
amortizes the pool to the end of its expected economic life based on the current projections of
estimated cash flows using the interest method. As actual cash flow results are recorded, the
Company balances those results to the data contained in its proprietary models to ensure accuracy,
then reviews each accounting pool watching for trends, actual performance versus projections and
curve shape, sometimes re-forecasting future cash flows utilizing the Company’s statistical models.
The review process is primarily performed by the Company’s finance staff; however, the Company’s
operational and statistical staffs may also be involved depending upon actual cash flow results
achieved. To the extent there is overperformance, the Company will either increase the yield or
release the allowance and consider increasing future cash projections, if persuasive evidence
indicates that the overperformance is considered to be a significant betterment. If the
overperformance is considered more of an acceleration of cash flows (a timing difference), the
Company will adjust estimated future cash flows downward which effectively extends the amortization
period, or take no action at all if the amortization period is reasonable and falls within the
pool’s expected economic life. In either case, yield may or may not be increased due to the time
value of money (accelerated cash collections). To the extent there is underperformance, the
Company will record an allowance if the underperformance is significant and will also consider
revising estimated future cash flows based on current period information, or take no action if the
pool’s amortization period is reasonable and falls within the currently projected economic life.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company capitalizes certain fees paid to third parties related to the direct acquisition
of a portfolio of accounts. These fees are added to the acquisition cost of the portfolio and
accordingly are amortized over the life of the portfolio using the interest method. The balance of
the unamortized capitalized fees at June 30, 2010 and 2009 was $3,161,505 and $3,312,951,
respectively. During the three and six months ended June 30, 2010, the Company capitalized
$285,210 and $446,831, respectively, of these direct acquisition fees. During the three and six
months ended June 30, 2009 the Company capitalized $485,508 and $649,714, respectively, of these
direct acquisition fees. During the three and six months ended June 30, 2010, the Company amortized
$246,305 and $517,252, respectively, of these direct acquisition fees. During the three and six
months ended June 30, 2009 the Company amortized $203,289 and $415,323, respectively, of these
direct acquisition fees.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The agreements to purchase the aforementioned receivables include general representations and
warranties from the sellers covering account holder death or bankruptcy and accounts settled or
disputed prior to sale. The representation and warranty period permitting the return of these
accounts from the Company to the seller is typically 90 to 180 days. Any funds received from the
seller of finance receivables as a return of purchase price are referred to as buybacks. Buyback
funds are applied against the finance receivable balance received and are not included in the
Company’s cash collections from operations. In some cases, the seller will replace the returned
accounts with new accounts in lieu of returning the purchase price. In that case, the old account
is removed from the pool and the new account is added.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Changes in finance receivables, net for the three and six months ended June 30, 2010 and 2009
are as follows (amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at beginning of period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">742,484</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">576,600</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">693,462</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">563,830</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Acquisitions of finance receivables, net of buybacks
</div></td>
<td> </td>
<td> </td>
<td align="right">84,608</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">84,433</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">184,874</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">135,798</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash collections
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(128,406</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(90,479</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(247,601</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(180,350</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income recognized on finance receivables, net
</div></td>
<td> </td>
<td> </td>
<td align="right">76,920</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">54,038</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">144,871</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">105,314</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash collections applied to principal
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(51,486</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(36,441</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(102,730</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(75,036</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at end of period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">775,606</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">624,592</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">775,606</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">624,592</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At the time of acquisition, the life of each pool is generally estimated to be between 84
to 96 months based on projected amounts and timing of future cash collections using the proprietary
models of the Company. As of June 30, 2010, the Company had $775.6 million in net finance
receivables. Based upon current projections, cash collections applied to principal are estimated
to be as follows for the twelve months in the periods ending (amounts in thousands):
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-top: 6pt; margin-left:15px; text-indent:-15px">June 30, 2011
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">168,367</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">June 30, 2012
</div></td>
<td> </td>
<td> </td>
<td align="right">188,304</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">June 30, 2013
</div></td>
<td> </td>
<td> </td>
<td align="right">191,834</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">June 30, 2014
</div></td>
<td> </td>
<td> </td>
<td align="right">149,028</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">June 30, 2015
</div></td>
<td> </td>
<td> </td>
<td align="right">63,583</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">June 30, 2016
</div></td>
<td> </td>
<td> </td>
<td align="right">13,367</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">June 30, 2017
</div></td>
<td> </td>
<td> </td>
<td align="right">1,123</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">775,606</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During the three and six months ended June 30, 2010, the Company purchased
approximately $1.67 billion and $3.56 billion, respectively, in face value of charged-off consumer
receivables.
During the three and six months ended June 30, 2009, the Company purchased approximately $3.38 billion and $4.35 billion, respectively, in face value of
charged-off consumer receivables.
At June 30, 2010, the estimated remaining collections (“ERC”) on the receivables
purchased in the three and six months ended June 30, 2010 were $183.6 million and $384.7 million,
respectively. At June 30, 2010, ERC on the receivables purchased in the three and six months ended
June 30, 2009 were $162.4 million and $248.7 million, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Accretable yield represents the amount of income recognized on finance receivables the Company
can expect to generate over the remaining life of its existing portfolios based on estimated future
cash flows as of June 30, 2010 and 2009. Reclassifications from nonaccretable difference to
accretable yield primarily result from the Company’s increase in its estimate of future cash flows.
Reclassifications to nonaccretable difference from accretable yield result from the Company’s
decrease in its estimates of future cash flows and allowance charges that exceed the Company’s
increase in its estimate of future cash flows. Changes in accretable yield for the three and six
months ended June 30, 2010 and 2009 were as follows (amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at beginning of period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">793,645</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">549,826</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">721,984</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">551,735</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income recognized on finance receivables, net
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(76,920</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(54,038</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(144,871</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(105,314</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Additions
</div></td>
<td> </td>
<td> </td>
<td align="right">105,365</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">129,658</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">227,875</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">196,836</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Reclassifications from/(to) nonaccretable difference
</div></td>
<td> </td>
<td> </td>
<td align="right">13,813</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,054</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">30,915</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(29,865</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at end of period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">835,903</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">613,392</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">835,903</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">613,392</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company maintains a valuation allowance on pools that had underperformed the
Company’s most recent expectations during the three and six months ended June 30, 2010 and 2009.
The following is a summary of activity, including allowance charges recorded, within the Company’s
valuation allowance account (amounts in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six Months Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Six Months Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at beginning of period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">58,125</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">29,840</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">51,255</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">23,620</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Allowance charges recorded
</div></td>
<td> </td>
<td> </td>
<td align="right">6,425</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,465</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13,300</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,910</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Reversal of previously recorded allowance charges
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(105</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(545</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(110</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(770</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net allowance charge
</div></td>
<td> </td>
<td> </td>
<td align="right">6,320</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,920</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13,190</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,140</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance at end of period
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">64,445</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">33,760</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">64,445</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">33,760</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Notefalsefalsefalseus-types:textBlockItemTypetextblockFinance Receivables, net.No authoritative reference available.false12falseUnKnownUnKnownUnKnownfalsetrue