Exhibit 10.79

$19,000,000.00

AMENDMENT NO. 3

TO

LOAN AND SECURITY AGREEMENT

originally dated as of October 30, 2002

by and among

CORRECTIONAL SERVICES CORPORATION

CSC MANAGEMENT DE PUERTO RICO INC.

YOUTH SERVICES INTERNATIONAL HOLDINGS, INC.

YOUTH SERVICES INTERNATIONAL REAL PROPERTY PARTNERSHIP, LLP

YOUTH SERVICES INTERNATIONAL, INC.

YOUTH SERVICES INTERNATIONAL OF NORTHERN IOWA, INC.

YOUTH SERVICES INTERNATIONAL OF SOUTH DAKOTA, INC.

YOUTH SERVICES INTERNATIONAL OF MISSOURI, INC.

YOUTH SERVICES INTERNATIONAL OF TEXAS, INC.

YOUTH SERVICES INTERNATIONAL OF ILLINOIS, INC.

YOUTH SERVICES INTERNATIONAL OF MICHIGAN, INC.

and

GENERAL ELECTRIC CAPITAL CORPORATION

Amended as of November ______, 2004

AMENDMENT NO. 3 TO

LOAN AND SECURITY AGREEMENT

              THIS AMENDMENT NO. 3 TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is made as of this ____ day of November, 2004, by and among CORRECTIONAL SERVICES CORPORATION, a Delaware corporation, CSC MANAGEMENT DE PUERTO RICO INC., a Puerto Rico corporation, YOUTH SERVICES INTERNATIONAL HOLDINGS, INC., a Delaware corporation, YOUTH SERVICES INTERNATIONAL REAL PROPERTY PARTNERSHIP, LLP, a Maryland limited liability partnership, YOUTH SERVICES INTERNATIONAL, INC., a Maryland corporation, YOUTH SERVICES INTERNATIONAL OF NORTHERN IOWA, INC., an Iowa corporation, YOUTH SERVICES INTERNATIONAL OF SOUTH DAKOTA, INC., a South Dakota corporation, YOUTH SERVICES INTERNATIONAL OF MISSOURI, INC., a Missouri corporation, YOUTH SERVICES INTERNATIONAL OF TEXAS, INC., a Texas corporation, YOUTH SERVICES INTERNATIONAL OF ILLINOIS, INC., a Maryland corporation, and YOUTH SERVICES INTERNATIONAL OF MICHIGAN, INC., a Michigan corporation (collectively, “Borrower”), and GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (“Lender”).

RECITALS

A.           Pursuant to that certain Loan and Security Agreement dated as of October 30, 2002 by and between Borrower and Lender (as amended, modified and restated from time to time, the “Loan Agreement”), the parties have established certain financing arrangements that allow Borrower to borrow funds from Lender in accordance with the terms and conditions set forth in the Loan Agreement.

B.           The parties now desire to amend the Loan Agreement in accordance with the terms and conditions set forth below.

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained in this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lender and Borrower have agreed to the following amendments to the Loan Agreement. Capitalized terms used but not defined in this Amendment shall have the meanings that are set forth in the Loan Agreement.

1.           Amendment to Section 2.1C(a) of Loan Agreement. Subsection (a) of Section 2.1C of the Loan Agreement is hereby amended by deleting from the third (3^rd) line of such subsection (a) “$7,000,000” and by inserting in lieu thereof “$9,000,000”.

2.           Confirmation of Representations and Warranties.  Borrower hereby (a) confirms that all of the representations and warranties set forth in Article IV of the Loan Agreement are true and correct in all material respects, and (b) specifically represents and warrants to Lender that it has good and marketable title to all of its respective Collateral, free and clear of any lien or security interest in favor of any other person or entity.

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3. Updated Schedules. As a condition precedent to Lender’s agreement to enter into this Amendment, and in order for this Amendment to be effective, Borrower shall revise, update and deliver to Lender all Schedules to the Loan Agreement, to the extent necessary, (a) to reflect updated and accurate information with respect to Borrower, and (b) to update all other information as necessary to make the Schedules previously delivered correct. Borrower hereby represents and warrants that the information set forth on the Schedules attached to the Loan Agreement (as amended per the Schedules attached hereto, if any) is true and correct as of the date of this Amendment.

4. Costs and Expenses. Borrower agrees to pay all costs and expenses incurred by Lender in connection with this Amendment, including legal fees of Lender’s in-house counsel in the amount of $500, which amount shall be added to the balance of the Revolving Credit Loans on the date hereof.

5. Enforceability.  This Amendment constitutes the legal, valid and binding obligation of each Borrower and is enforceable against each such Borrower in accordance with its terms.

6. Reference to the Effect on the Loan Agreement.

(a)            Upon the effectiveness of this Amendment, each reference in the Loan Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of similar import shall mean and be a reference to the Loan Agreement as amended by this Amendment.

(b)            Except as specifically amended above, the Loan Agreement and all other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed.

(c)            The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided in this Amendment, operate as a waiver of any right, power or remedy of Lender, nor constitute a waiver of any provision of the Loan Agreement, or any other documents, instruments and agreements executed or delivered in connection with the Loan Agreement.

(d)            This Amendment (together with any other document executed in connection herewith) is not intended to be, nor shall it be construed as, a novation of the Loan Agreement.

7.             Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of Maryland.

              8.             Headings.  Section headings in this Amendment are included for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

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9. Counterparts. This Amendment may be executed in counterparts, and such counterparts taken together shall be deemed to constitute one and the same instrument.

[SIGNATURES FOLLOW]

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IN WITNESS WHEREOF, intending to be legally bound, the parties have caused this Amendment to be executed as of the date first written above.

LENDER:

GENERAL ELECTRIC CAPITAL CORPORATION

a Delaware corporation

By: /s/                                              

Name:

Title:

BORROWER:

CORRECTIONAL SERVICES CORPORATION

a Delaware corporation

By: /s/ Bernard A. Wagner             (SEAL)

Name: Bernard A. Wagner

Title: Senior Vice President and Chief Financial Officer

CSC MANAGEMENT DE PUERTO RICO INC.

a Puerto Rico corporation

By: /s/ Bernard A. Wagner             (SEAL)

Name: Bernard A. Wagner

Title: Senior Vice President and Chief Financial Officer

YOUTH SERVICES INTERNATIONAL HOLDINGS,   INC.

a Delaware corporation

By: /s/ Bernard A. Wagner             (SEAL)

Name: Bernard A. Wagner

Title: Senior Vice President and Chief Financial Officer

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YOUTH SERVICES INTERNATIONAL REAL

   PROPERTY PARTNERSHIP, LLP

              a Maryland limited liability partnership

By: Youth Services International, Inc.

       a Maryland corporation

       its Managing Partner

By: /s/ Bernard A. Wagner             (SEAL)

Name: Bernard A. Wagner

Title: Senior Vice President and Chief Financial Officer

YOUTH SERVICES INTERNATIONAL, INC.

a Maryland corporation

By: /s/ Bernard A. Wagner             (SEAL)

Name: Bernard A. Wagner

Title: Senior Vice President and Chief Financial Officer

YOUTH SERVICES INTERNATIONAL OF

   NORTHERN IOWA, INC.

 an Iowa corporation

By: /s/ Bernard A. Wagner             (SEAL)

Name: Bernard A. Wagner

Title: Senior Vice President and Chief Financial Officer

YOUTH SERVICES INTERNATIONAL OF SOUTH

   DAKOTA, INC.

a South Dakota corporation

By: /s/ Bernard A. Wagner             (SEAL)

Name: Bernard A. Wagner

Title: Senior Vice President and Chief Financial Officer

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YOUTH SERVICES INTERNATIONAL OF

MISSOURI, INC.

a Missouri corporation

By: /s/ Bernard A. Wagner             (SEAL)

Name: Bernard A. Wagner

Title: Senior Vice President and Chief Financial Officer

YOUTH SERVICES INTERNATIONAL OF TEXAS,
INC.

a Texas corporation

By: /s/ Bernard A. Wagner             (SEAL)

Name: Bernard A. Wagner

Title: Senior Vice President and Chief Financial Officer

YOUTH SERVICES INTERNATIONAL OF
ILLINOIS, INC.

a Maryland corporation

By: /s/ Bernard A. Wagner             (SEAL)

Name: Bernard A. Wagner

Title: Senior Vice President and Chief Financial Officer

YOUTH SERVICES INTERNATIONAL OF
MICHIGAN, INC.

a Michigan corporation

By: /s/ Bernard A. Wagner             (SEAL)

Name: Bernard A. Wagner

Title: Senior Vice President and Chief Financial Officer

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LIST OF SCHEDULES
Schedule 1.41	-	Mortgages
Schedule 1.45	-	Permitted Liens
Schedule 3.6	-	Officers with Power of Attorney
Schedule 4.1	-	Subsidiaries
Schedule 4.2	-	State of Organization
Schedule 4.5	-	Litigation
Schedule 4.7	-	Tax Identification Numbers; Fiscal Years
Schedule 4.9	-	Exceptions to Ownership
Schedule 4.10	-	Tax Liability
Schedule 4.14	-	Environmental Matters
Schedule 4.15	-	Places of Business; Record Owner; Chief Executive Office
Schedule 4.16	-	Intellectual Property
Schedule 4.17	-	Capitalization; Ownership
Schedule 4.19	-	Borrowings and Guarantees
Schedule 4.20	-	Business Interruptions
Schedule 4.21	-	Trade Names
Schedule 4.22	-	Joint Ventures
Schedule 4.27	-	Funds from Restricted Grants
Schedule 4.29	-	Assignment of Claims Laws
Schedule 4.30	-	Unrecorded Leases
Schedule 4.35	-	Unrecorded Contracts

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Schedule 4.42	-	Other Liens
Schedule 4.43	-	Agreements to Transfer Title
Schedule 6.7	-	Insurance
Schedule 6.24	-	Post-Closing Obligations
Schedule 6.38	-	Operating Accounts

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