Sunday, December 31, 2006

DETAIL STATEMENT FROM ANNUAL REPORT CONCERNING $350,000 LOAN



RIVEREDGE OWNERS, INC.
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2006

Note 3: LONG-TERM DEBT (continued) :

                   Certain stockholders agreed to lend the cooperative
Corporation a secured loan for a total amount of $350,000 as of
November 1, 2002.  The loan is secured by a 2nd mortgage (which
will be recorded at the time of any default) and an interest in
the assessment account. The loan matured and was paid in full
in 2006.

A special assessment in the amount of $4.50 per share was
charged in order to raise the funds to repay such loan.  The
assessment was charged at the rate of $0.1875 per share per
month starting September 1, 2002, for a period of four years.
The special assessment ceased in August, 2006.