EXHIBIT 10.3
CONSUMER PORTFOLIO SERVICES, INC.
Revolving Credit and Term Note
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$16,666,666.50 Boston, Massachusetts
April 30, 1998
Consumer Portfolio Services, Inc., a California corporation (the
"Company"), for value received, hereby promises to pay to State Street Bank and
Trust Company (the "Lender"), or order, on or before April 30, 2003, the
principal amount of Sixteen Million Six Hundred and Sixty-Six Thousand Six
Hundred and Sixty-Six Dollars and Fifty Cents ($16,666,666.50), or such lesser
amount as may at the maturity hereof, whether by acceleration or otherwise, be
the aggregate unpaid principal amount of all Revolving Credit Loans which,
subject to the terms and conditions of the Loan Agreement referred to below, may
convert to Term Loans on the Conversion Date, made by the Lender to the Company
pursuant to such Loan Agreement. Prior to the Conversion Date, and subject to
applicable mandatory prepayment provisions set forth in the Loan Agreement,
interest only (computed on the basis of the actual number of days elapsed over a
360-day year) shall be due on the unpaid principal amount hereof at the rates
per annum set forth in the Loan Agreement, payable monthly in arrears on the
fifteenth (15th) day of each month, commencing on the first such date next
succeeding the date hereof and continuing through maturity, whether by
acceleration or otherwise. From and after the Conversion Date, interest shall
be due on the unpaid principal amount from time to time outstanding hereunder.
The principal amount outstanding on the Conversion Date shall be payable in no
more than forty-eight (48) consecutive monthly installments of principal, each
in an amount equal to the greater of (i) the aggregate amount transferred or
released to each of the Company's Eligible Subsidiaries from all Spread Accounts
or otherwise in connection with each Eligible Securitization Transaction since
the fifteenth day of the previous month and (ii) one forty-eighth of the
principal amount outstanding on the Conversion Date, provided that, in the event
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of any Default or Event of Default under the Loan Agreement, the Company shall
pay to the holder of this Note on demand, interest on the full outstanding
balance of unpaid principal and (to the extent permitted by law) on such unpaid
interest from the date due until
paid in full at a rate per annum equal to two percent (2%) above the rate
otherwise applicable hereunder. In no event shall the amount contracted for and
agreed to be paid by the Company as interest on this Note exceed the highest
lawful rate permissible under any law applicable hereto. For all Prime Rate-
based Loans each change in the rate of interest payable shall take effect
simultaneously with the corresponding change in the Prime Rate.
This Note evidences a loan or loans under, and is subject to the provisions
of, a certain Residual Interest in Securitizations Revolving Credit and Term
Loan Agreement dated as of the date hereof, (as amended and/or extended from
time to time, the "Loan Agreement") by and among the Company and the Lenders
(including the original payee of this Note) named therein. The holder of this
Note is entitled to the benefits of the Loan Agreement and to the benefits of
the Security Documents and other Loan Documents referred to therein. Neither
this reference to such Loan Agreement, Security Documents or other Loan
Documents, nor any provisions thereof shall affect or impair the absolute and
unconditional obligation of the Company to pay the principal of and interest on
this Note as provided herein. All payments of principal of and interest on this
Note shall be payable in immediately available funds at the address of the Agent
set forth in the Loan Agreement. This Note is subject to prepayment in whole or
in part, and to acceleration on default, in both instances at the times and in
the manner specified in the Loan Agreement. The maker and all endorsers of this
Note hereby waive presentment, demand, notice, protest and all other demands and
notices in connection with the delivery, acceptance, performance or enforcement
of this Note.
This Note is governed by the laws of The Commonwealth of Massachusetts and
is executed as a sealed instrument as of the date first above written.
CONSUMER PORTFOLIO SERVICES, INC.
By_________________________________
(Title)
Schedule to Revolving Credit and Term Note filed as exhibit 10.3 to report on
Form 10-Q of registrant Consumer Portfolio Services, Inc. for quarter ended
March 31, 1998.
Such note is one of three executed under a single line of credit. The other two
such notes are omitted from this filing pursuant to instruction 2 to Item 601 of
Regulation S-K. The documents omitted are two notes substantially identical to
the note filed, except as follows:
Amount: $5,000,000.00 $11,666,666.50
Payee: The Structured Finance The Prudential Insurance
High Yield Fund, LLC Company of America
