1
EXHIBIT 10.10
THIRD AMENDMENT TO THE
REVOLVING LINE OF CREDIT AGREEMENT
This THIRD AMENDMENT ("Amendment") is dated as of October 1, 1998, by and
between WFS FINANCIAL INC, a California corporation ("WFS"), and WESTERN
FINANCIAL BANK, a federally-chartered savings bank (fka Western Financial
Savings Bank, F.S.B.) (the "Bank"), and amends the REVOLVING LINE OF CREDIT
AGREEMENT ("Agreement"), as amended, entered into by the parties on May 1, 1995,
pursuant to the transfer of certain assets of the Bank to WFS.
RECITALS
A. The Agreement is being amended to reflect differing interest spreads.
AGREEMENT
In consideration of the mutual promises set forth herein, and in
reliance upon the recitals set forth above, the parties agree as follows:
1. CERTAIN DEFINITIONS
The definition of "INTEREST SPREAD" is hereby deleted and
replaced with the following:
"INTEREST SPREAD" shall mean
(I) for the first $600 million Obligation (a)
one-half percent (.5%) with respect to any Obligations not
secured by Collateral acceptable to the Bank in its sole
discretion, and (b) one-tenth of one percent (.1%) with
respect to any Obligations secured by Collateral acceptable to
the Bank in its sole discretion, and
(II) for the next $300 million Obligation (a) eight
tenths of one percent (.8%) with respect to any Obligations
not secured by Collateral acceptable to the Bank in its sole
discretion, and (b) four-tenths of one percent (.4%) with
respect to any Obligations secured by Collateral acceptable to
the Bank in its sole discretion.
Except as specifically amended herein, all terms of the Agreement as
previously amended shall remain in full force and effect. Wherefore, the
undersigned have executed this Amendment on the date set forth below to be
effective as of the date first set forth above.
WFS FINANCIAL INC
---------------------------- October 9, 1998
Xxx Xxxxxxxx, President
WESTERN FINANCIAL BANK
---------------------------- October 9, 1998
Xxx X. Xxxxxxxx, Executive Vice President
and Chief Financial Officer