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Exhibit 10.50
July 1, 1997
The First National Bank of Chicago
Xxx Xxxxx Xxxxxxxx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxxxx X. Power
Bank United
000 Xxxxxx Xxxxxx, Xxxxx 000
Xxxxxxx, Xxxxxxx 00000
Attention: Xxxx X. Xxxx
Re: CREDIT AGREEMENT DATED JUNE 20, 1997
Gentlemen:
This letter will confirm our request for an amendment to the above
Credit Agreement to accommodate our sales of Qualifying Loans to Greenwich
Capital in the two following respects:
(1) In the paragraph of the definition of "Borrowing Base" authorizing
the Agent to grant temporary waivers, the amount of $200,000 will be increased
to $2,000,000 from the date hereof through October 31, 1997; and
(2) In clause (vi)(2) of the definition of "Eligible Qualifying Loan"
the following phrase will be added at the end thereof "and, if the Borrower has
subsequently delivered possession of such Required Qualifying Loan Documents and
Additional Required Qualifying Loan Documents to a third party, such third party
has been approved by the Agent and has executed a bailee letter satisfactory to
the Agent acknowledging the security interest therein held by the Collateral
Agent for the benefit of the Lenders".
All capitalized terms used herein and not otherwise defined shall have
the meaning given to them in the Credit Agreement referenced above. A form of
the bailee letter referred to in item (2) above is attached to this letter.
If these modifications are acceptable, please execute and return a copy
of this letter.
Very truly yours,
MEGO MORTGAGE CORPORATION
By:
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Its:
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APPROVED:
THE FIRST NATIONAL BANK OF CHICAGO,
individually as a Lender and as Agent
By:
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Title:
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BANK UNITED, as a Lender
By:
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Title:
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July 1, 1997
FIRST CHICAGO NATIONAL PROCESSING
CORPORATION, as Collateral Agent
0000 Xxxxxx Xxxxxxx, Xxxxx 000
Xxxxxxxx, Xxxxxxxxxx 00000
Attention: Manager
Re: MEGO MORTGAGE CORPORATION
This letter will evidence our agreement to forward to you from time to
time schedules of loan numbers listing loans delivered to the undersigned by
MEGO MORTGAGE CORPORATION (the "Borrower") which are being held by the
undersigned pending their sale to Greenwich Capital Markets, Inc. Nothing herein
shall be deemed to be an undertaking that the undersigned has reviewed any of
the loan documents for completeness or compliance with your credit facility.
The undersigned acknowledges that you as "Collateral Agent" and the
Borrower have advised the undersigned that such loans comprise a portion of the
collateral under that certain Credit Agreement dated as of June 20, 1997 by and
among the Borrower, The First National Bank of Chicago (the "Agent") and the
lenders thereunder, as amended from time to time and that each of the loans is
subject to a security interest in favor of the undersigned on behalf of the
lenders under such Credit Agreement which security interest shall be
automatically released upon your remittance of the full amount of the purchase
price of such loan (as set forth on the schedule attached hereto) by wire
transfer to the following account of the Borrower.
WIRE INSTRUCTIONS TO SETTLEMENT ACCOUNT
The First National Bank of Chicago, ABA No.
000000000,
for the account of Mego Mortgage Corporation, Account No. 19-29623,
Cash Collateral Account
Pending the purchase of each loan and until payment therefor is
received, the aforesaid security interest therein will remain in full force and
effect, and the undersigned shall hold possession of such loans and the
documentation evidencing same as custodian, agent and bailee for and on behalf
of the Collateral Agent for the benefit of the Lenders. In no event shall any
loan be returned or sales proceeds remitted to the Borrower.
Sincerely,
FIRST TRUST NATIONAL ASSOCIATION
By:
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Title:
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Address:
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The undersigned Borrower agrees to and acknowledges the terms of this
letter. The instructions set forth in this letter cannot be altered except by
written instructions executed by Collateral Agent.
MEGO MORTGAGE CORPORATION
By:
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Title:
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Address:
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