EXHIBIT 10.41
[DYNEX CAPITAL, INC. LETTERHEAD]
October 20, 1998
Xx. Xxxxxx Xxxx
Vice Chairman and COO
AutoBond Acceptance Corporation
000 Xxxxxxxx Xxxxxx
Xxxxxx, XX 00000
Dear Xxxxxx:
Pursuant to our discussions outlined below are adjusted terms relating to the
warehouse financing agreements between AutoBond Acceptance Corporation
("AutoBond") and Dynex Capital, Inc. ("Dynex"). All existing agreements between
AutoBond and Dynex remain in force with the exception of the modifications in
this letter.
1. The advance rate on all financed contracts will be lowered from 104% to
88% of the principal balance of all contracts through a period ending the
earlier of the settlement date of a securitization by Dynex of any of the
AutoBond originated finance contracts or December 31, 1998 (the "Period
Terminate Date"). The advance rate will retroactively revert to 104% at the
Period Termination Date less any amounts that would otherwise have been paid as
principal on the Funding Notes during such time period.
2. The financing costs through the Period Termination Date will be LIBOR
plus 150 basis points (1.5%), consistent with the Dynex/Daiwa Securities
financing rate. The financing costs will revert to the rates in the June 30,
1998 financing modification agreement at the Period Termination Date.
3. The "Commitment Termination Date" as defined and applicable in the June
9, 1998 Credit Agreement shall be modified to mean (a) July 31, 1999, upon 90
days' prior written notice from the Lender, or (b) if such notice is not given,
July 31, 2000, Dynex management has also agreed to request the Dynex board of
directors before the end of October, 1998 to extend the Commitment Termination
Date an additional four months to November 30, 1999 and November 30, 2000.
Please acknowledge your agreement to these modified terms by signing below.
Sincerely,
/s/ Xxxx X. Xxxxx
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Xxxx X. Xxxxx
Vice President
AGREED AND ACKNOWLEDGED
/s/ Xxxxxx Xxxx
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Xxxxxx Xxxx
