b'dueandpayable(i.e.,mature).Promissorynotesmaybesecured (recordedagainstrealproperty)orunsecured(backedbyapersonal guarantee of the borrower). Required payments may be periodic or lump sum, and there are typically remedies that the lender may exercise if the payment terms arent met, such as foreclosure against the security, or a lawsuit to enforce a personal guarantee.Preferred Class A class of investors who are given distributions by the company before other classes of investors are paid. Private Equity Fund An investment strategy that involves forming a company with investors, which invests in other peoples investment opportunities rather than directly owning the investment property. Private equity funds can take a preferred equity position as a single investor in a specified offering or as a joint venture partner in a specific property.Private Placement Offering The sale of securities to a relatively small numbers of investors who must meet certain criteria. These types of securities offerings are exempt fromtheregistrationandregulationrequirementsoftheSecuritiesand ExchangeCommission,undervarioussectionsofRegulationDofThe Securities Act of 1933, but are generally subject to notice filings at the federal and state level. 307'