LONG TERM STANDBY COMMITMENT TO PURCHASE AMENDMENT NO. 1
Exhibit
10.16.1
AMENDMENT
NO. 1
This
Amendment
No. 1 by
and between the Federal Agricultural Mortgage Corporation (“Xxxxxx Mac”), a
corporation organized and existing under the laws of the United States of
America, and Farm Credit Bank of Texas, an institution of the Farm Credit System
organized and existing under the laws of the United States of America (“Seller”)
to the Long Term Standby Commitment to Purchase
No. TM1032 (Full-time Farm) dated
as of June 1, 2003 (the “Commitment”) is made and entered into as of the 8th day
of December 2006.
WHEREAS,
consistent with Xxxxxx Mac’s revised pricing policy, Xxxxxx Mac and Seller wish
to provide more granularity in the pricing of the Standby Purchase Commitment
Fee for Full-time Farm Loans under the Commitment;
WHEREAS,
capitalized terms used but not defined herein have the meanings given to them
in
the Commitment.
NOW,
THEREFORE, in consideration of the mutual covenants and undertakings set forth
in this Commitment, and other good and valuable consideration, the receipt
and
sufficiency of which are hereby acknowledged, Xxxxxx Mac and the Seller agree
as
follows:
Section
1.
The definition of Standby Purchase Commitment Fee in Article I of the Commitment
shall read as follows:
“Standby
Purchase Commitment Fee:
The periodic amount due Xxxxxx Mac from the Seller for this Commitment. Such
amount with respect to any Qualified Loan included in the Portfolio prior to
November 1, 2006 shall be paid in monthly payments in arrears in an amount
equal
to 1/12th of [material
omitted pursuant to a request for confidential treatment and filed separately
with the SEC],
times the unpaid principal balance of such Qualified Loan, as reported monthly
by the Seller in accordance with Section 4.04.
Effective
November 1, 2006, for any Qualified Loan accepted in the Portfolio by Xxxxxx
Mac
based on the Seller’s classification of the Qualified Loan under the 14-point
Uniform Classification System (UCS), such amount with respect to the Qualified
Loan shall be paid in monthly payments in arrears in an amount equal to 1/12th
of the applicable fee based on the fee guidelines below multiplied by the unpaid
principal balance of such Qualified Loan, as reported monthly by the Seller
in
accordance with Section 4.04.
[material
omitted pursuant to a request for confidential treatment and filed separately
with the SEC]
The
applicable fee for any particular Qualified Loan shall be determined as of
the
date the Qualified Loan Schedule is delivered to Xxxxxx Mac which lists the
particular loan. Notwithstanding the fee guidelines set forth above, the Standby
Purchase Commitment Fee with respect to any Qualified Loan identified in Pool
TM1032 or any additional Pool added to the Portfolio under this Commitment
shall
be as agreed upon between the parties and reflected in a Qualified Loan Schedule
signed by the parties.
The
applicable Standby Purchase Commitment Fee will be increased by 5 basis
points for so long as the aggregate unpaid principal balance of the Qualified
Loans in the Portfolio is less than $100 million. Once the aggregate unpaid
principal balance of the Qualified Loans in the Portfolio equals or exceeds
$100 million, this 5 basis point increase shall no longer be applicable,
even if the aggregate unpaid principal balance subsequently decreases to below
$100 million.
Solely
for purposes of this definition of Standby Purchase Commitment Fee, the term
“unpaid principal balance of such Qualified Loan” shall mean the unpaid
principal balance of such Qualified Loan less any outstanding borrower stock
that may be retired and applied to the Qualified Loan, to the extent such
outstanding borrower stock is in excess of the minimum amount of such stock
required by federal law or regulation, calculated as of the first day of the
month prior to the month in which the Standby Purchase Commitment Fee is to
be
paid.”
Section
2.
In Section 4.02(b), delete “December 31, 2006” and insert in lieu thereof
“December 31, 2009.”
IN
WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to the
Commitment to be duly executed by their duly authorized officers or
representatives as of the date above first written.
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By:
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/s/
Xxx X. Xxxxxxx
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Name:
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Xxx
X. Xxxxxxx
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Title:
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Vice
President - Agricultural Finance
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Farm
Credit Bank of Texas
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By:
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/s/
Xxxx Xxxxxx
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Name:
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Xxxx
Xxxxxx
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Title:
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Vice
President & Unit Manager
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Association
Direct Lending Unit
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