Pending amendments to the pooling and servicing agreements of the transactions within which Shilo Inn loans were securitized should pacify servicers on those deals who were concerned over potential interest shortfalls, according to Standard & Poor's. The Shilo Inn loans entered bankruptcy in 2002.

"The amendment allows them to divert some of the principal to pay back the servicer advances so there will not be an interest shortfall," said Roy Chun, a managing director at S&P.

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