Given the fragility of the financial markets at that time, we were concerned about the potential for a strong, adverse market reaction to the reports of significant losses at Merrill Lynch. If federal assistance to stabilize these companies were to be effective, the necessary facilities would have to be in place as of the disclosure date.
For example, there could be a substantial increase in the monthly payment, or "payment shock" that could occur when the loan's interest rate increases after a low "teaser-rate" period and if the market interest rate index rises through the term of the loan.