This excerpt taken from the CSE 10-K filed Mar 1, 2007.
We make loans to commercial real estate developers. These borrowers face a variety of risks relating to development, construction and renovation projects, any of which may negatively impact their results of operations and impair their ability to pay interest and principal on our loans to them.
We make loans to clients for development, construction and renovation projects. The ability of these clients to make required payments to us on these loans is subject to the risks associated with these projects.
If one of these projects is not successful, it could have a material adverse effect on the clients financial condition and results of operations, which could limit that clients ability to repay its obligations to us.