HUBUS133 Alpha Group Capital of its affiliates) to damages and administrative enforcement and could result in the borrowers rescinding such loans against either the HB Fund, as the issuing entity, or subsequent holders of such loans. The lending and servicing business involves the collection of numerous accounts and compliance with various federal, state and local laws that regulate consumer lending. Lenders and servicers may be subject from time to time to various types of claims, legal actions (including class action lawsuits), investigations, subpoenas and inquiries in the course of their business. It is impossible to predict the outcome of any particular actions, investigations or inquiries or the resulting legal and financial liability. If any such proceeding were determined adversely to the lender (&t, the HB Fund or any of its affiliates) or any other servicer and were to have a material adverse effect on its financial condition, the ability of such servicer to service the loans could be impaired. A number of federal, state and/or local regulatory changes, designed to prevent lending abuses, may limit the flexibility to offer lending products such as the loans. Some states have enacted, or may enact, laws or regulations that prohibit inclusion of some provisions in loans that have loan rates or origination costs in excess of prescribed levels, and require that borrowers be given certain disclosures prior to the consummation of such loans. Failure to comply with these laws could result in monetary penalties and in the borrowers rescinding loans against either the HB Fund, as the issuing entity, or subsequent holders of the loans. In addition, the loans may need to be altered in order to comply with any such federal, state and/or local regulatory changes. The regulatory compliance requirements associated with this activity are detailed and complex, and if such requirements are not complied with, the Underlying Funds could suffer losses.