ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

The registrant has previously reported, by a current report dated July 10, 2008,

(i) having amended and restated the terms of a note purchase facility, under which its wholly owned subsidiary Folio Funding II, LLC issued amended and restated Class A-1 and Class A-2 Term Notes;

(ii) that such Notes provided for minimum required levels of amortization, and were due in June 2009; and

(iii) that the registrant also received an option, if certain conditions were met, to extend the maturity of such Notes for an additional year, to June 2010.

Such conditions have been met and the maturity of such Notes has been extended to June 2010.