On August 4, 2016, United Development Funding IV and the Lenders entered into Amendment No. 1 (the ‘Amendment’) to the Forbearance Agreement to extend the Forbearance Period from August 4, 2016 to September 30, 2016. The Forbearance Period will earlier terminate if the Loan is repaid, if an event of default occurs, or if the Trust fails to meet or maintain certain representations, warranties, terms, conditions or covenants contained in the Forbearance Agreement. Other than the modified terms described above, the material terms of the Forbearance Agreement remain unchanged. The balance of the Loan as of August 4, 2016 is approximately $15.6 million. On July 9, 2014, United Development Funding IV entered into a loan agreement (the ‘Loan Agreement’) on July 2, 2014 with Waterfall Finance 4, LLC for a $35 million term loan (the ‘Loan’). On May 23, 2016, the Trust and Waterfall Eden Master Fund Ltd., Waterfall Sandstone Fund, LP and HEDCO ABS Ltd. (collectively, the ‘Lenders’), as successors-in-interest to Waterfall Finance 4, LLC under the Loan Agreement, entered into a Forbearance Agreement on May 17, 2016, effective as of March 4, 2016, pursuant to which the Trust acknowledged the occurrence of certain events of default and the Lenders agreed to forbear from exercising any of their default-related rights against the Trust until August 4, 2016 (the ‘Forbearance Period’).