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EXHIBIT 10.175
September 7, 1999
Xx. Xxx Xxxxxx
Preferred Equities Corporation
0000 Xxxxxxxx Xxxx
Xxx Xxxxx, Xxxxxx 00000-0000
Re: Second Amendment to Forbearance Agreement and Amendment No.7 to
Second Amended and Restated Consolidated Loan and Security
Agreement (the "Agreement") dated as December 23, 1998, by and
between Preferred Equities Corporation ("PEC") and FINOVA Capital
Corporation ("FINOVA")
Dear Xx. Xxxxxx:
The purpose of this letter is to confirm certain understandings and
additional agreements that PEC and FINOVA have reached concerning the Agreement.
Terms used in this letter which are defined in the Agreement shall have the same
meaning and definition when used in this Letter.
Notwithstanding contrary provisions that may be contained in the
Documents FINOVA has agreed to extend the Maturity Date of the Additional
Advance Note to October 1, 1999.
The terms of the Documents, as specifically supplemented by this letter,
remain in full force and effect. All provisions of the documents, including
without limitation, the time is of the essence provisions are hereby reiterated,
and if ever waived, reinstated.
Should the foregoing accurately reflect our agreements on the matters
set forth herein, please acknowledge your agreement to the same by signing the
enclosed copy of this letter and returning the same to the undersigned. It is
agreed that in the event of a conflict or inconsistency between the provisions
of this letter and the Agreement, this letter shall, as to the matters
specifically addressed herein, govern and control. It is acknowledged and agreed
that a default by the Borrower under this letter shall be an Event of Default.
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Xx. Xxx Xxxxxx
September 7, 1999
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FINOVA Capital Corporation,
a Delaware corporation
By: _____________________________
Its: ____________________________
The foregoing has been seen and agreed to this___day of September 1999.
Preferred Equities Corporation
By:____________________________
Its: __________________________
The undersigned, the Guarantor of the Borrower, hereby acknowledges receipt of
the foregoing and consents to the same, this___ day of September, 1999.
MEGO Financial Corp.
By:____________________________
Its: _______________________
