Xxxxxxxx.Xxx, Inc.
July 9, 1999
Page 2
[Letterhead - GMAC RFC Worldwide Capital Partner]
July 9, 1999
Xxxxxxxx.Xxx, Inc.
0000 Xxxxxxx Xxxx., 0xx Xxxxx
Xxxxxxxxxx, XX 00000
Attention: Xxxxx Xxxxxxx, Chief Financial Officer
Re: First Amended and Restated Warehousing Credit and Security
Agreement dated as of June 8, 1998, as amended or supplemented
("Agreement") by and between RESIDENTIAL FUNDING CORPORATION
("Lender") and FIRST MORTGAGE NETWORK, INC. ("Company")
Dear Xx. Xxxxxxx:
Reference is made to the Agreement. All capitalized terms used herein
shall have the meanings ascribed to such terms in the Agreement.
The Company has requested the Lender to extend the Maturity Date of the
Agreement to August 30, 1999, and the Lender has agreed to such extension in
consideration of the mutual covenants, agreements and conditions set forth
herein and in the Agreement, and for other good and valuable consideration.
Except as hereby expressly modified, the Agreement shall be otherwise
unchanged and shall remain in full force and effect.
The Company has also requested that the Lender agree to allow for the
prepayment of a portion of the Advances outstanding pursuant to Section 2 of the
Agreement (any such prepayment is hereafter referred to as a "Buydown"). The
Lender agrees to permit Xxxxxxx subject to the following conditions:
1. The Company will provide RFC one (1) Business Day advance
notice of each Buydown;
2. Each request for a Buydown will be on the corporate letterhead
of the Company;
3. Each Buydown will be in an amount of not less than $1,000,000;
4. No more than one Buydown will occur in any one week period;
and
5. A Buydown will not entitle the Company to the release of any
Collateral.
Provided that no Default or Event of Default has occurred, all or any
portion of a Buydown may be reborrowed hereunder, upon written notice to the
Lender no later than 9:30 a.m. on the Business Day that the Company desires to
reborrow such amount. The Lender shall use its best efforts consistent with the
requirements of its operational systems, to apply
each Buydown to Advances outstanding at the time of such Buydown in descending
order of the interest rates applicable thereto. In the event the Lender receives
a payment of Advances that would, as a result of the Buydown, reduce the
outstanding principal balance of the Advances to an amount less than zero,
unless an Event of Default shall have occurred and be continuing, the Buydown,
or a portion thereof equal to such excess, shall be re-advanced to the Company.
The Lender reserves the right at any time, upon three Business Days' notice to
the Company, to terminate this letter agreement.
This extension of the Maturity Date and the terms of the Buydown shall
be effective only upon receipt by the Lender of a copy of this letter
acknowledged by the Company.
Very truly yours,
RESIDENTIAL FUNDING CORPORATION,
a Delaware corporation
By: /s/ Xxxxx Xxxxx
-----------------------------
Its: Director
ACKNOWLEDGED AND ACCEPTED
THIS DAY OF JULY, 1999
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XXXXXXXX.XXX, INC.
By:
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Its:
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