EXHIBIT 10.40
[DYNEX CAPITAL, INC. LETTERHEAD]
June 30, 1998
Xx. Xxxxxxx X. Xxxxxxxx Xx. Xxxxxx Xxxx
Chairman & CEO Vice Chairman and COO
AutoBond Acceptance Corporation AutoBond Acceptance Corporation
000 Xxxxxxxx Xxxxxx 000 Xxxxxxxx Xxxxxx
Xxxxxx, XX 00000 Xxxxxx, XX 00000
Xx. Xxxx X. Xxxxxxxx
Director & Secretary
AutoBond Acceptance Corporation
000 Xxxxxxxx Xxxxxx
Xxxxxx, XX 00000
Gentlemen:
Pursuant to our discussions this morning outlined below are the adjusted terms
relating to the warehouse financing agreements between AutoBond Acceptance
Corporation ("AutoBond") and Dynex Capital, Inc. ("Dynex"). The modifications
to the financing terms outlined below shall apply retroactively to all prior
advances.
1. Advance rate on all financed contracts lowered from 105% to 104% of the
principal balance of all contracts financed.
2. Such financing shall be divided between the Class A and Class B Funding
Notes as follows:
Class A 94% of the balance of the contracts financed
Class B 10% of the balance of the contracts financed
3. The Interest rate on the Class A shall be lowered from 200 basis points
over the three year treasury note to 190 basis points over the three year
treasury note.
4. Dynex's funding obligations in any single month from July 1998 through
May 1999 (exclusive of loans at other warehouse lenders) shall be increased from
$20 million to $25 million.
Please acknowledge your agreement to these modified terms by signing below.
Sincerely,
/s/ Xxxxxxx X. Xxxx
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Xxxxxxx X. Xxxx, Xx., CPA
Executive Vice President
AGREED AND ACKNOWLEDGED
/s/ Xxxxxxx X. Xxxxxxxx /s/ Xxxx X. Xxxxxxxx /s/ Xxxxxx Xxxx
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Xxxxxxx X. Xxxxxxxx Xxxx X. Xxxxxxxx Xxxxxx Xxxx
