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Exhibit 10.30
First Union National Bank
One First Union Center
301 South College Street
Charlotte, North Carolina 28288-0610
NovaStar Financial, Inc.
NovaStar Capital, Inc.
NovaStar Mortgage, Inc.
1901 West 47/th/ Place, Suite 105
Westwood, Kansas 66205
As of July 28, 2000
Gentlemen
Reference is made to that certain Master Repurchase Agreement dated as of
February 12, 1999 (together with the Addendum to the Master Repurchase Agreement
dated as of February 12, 1999) among NovaStar Financial, Inc ("NFI"), NovaStar
Capital, Inc. ("NCI") and NovaStar Mortgage, Inc. ("NSM" and together with NFI
and NCI, each, individually and jointly and severally, "Seller") and First Union
National Bank ("Buyer") (as amended, modified, restated or supplemented from
time to time, the "Agreement").
Seller has requested that Buyer amend the Agreement as hereinafter set
forth and Buyer is willing to do so on the terms and conditions hereinafter set
forth.
Seller and Buyer agree that the following definitions set forth in Section
2 of the Agreement are hereby amended in their entirety as follows:
"Eligible Mortgage Loans" shall mean (a) Mortgage Loans with respect to
which each of the representations and warranties set out in Exhibit A hereto is
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accurate and complete as of the date of the related confirmation and on each day
thereafter (and the Seller by including any such Mortgage Loan in any such
transaction shall be deemed to so represent and warrant to Buyer at and as of
the date of such Transaction) and (b) solely for the period commencing on July
28, 2000 and ending September 30, 2000, the specific Mortgage Loans listed on
Exhibit A-1 hereto up to an aggregate sum of $3,200,000.
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"Term" shall mean the period commencing on February 12, 1999 and ending on
July 27, 2001.
Seller represents and warrants that (a) expect as specifically set forth
herein, the Agreement, and all other documents, instruments and agreements
executed and/or delivered in connection therewith, shall remain in full force
and effect, and are hereby ratified and confirmed, (b) this letter and the
Agreement, as amended hereby, constitute legal, valid and binding
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obligations of Seller and are enforceable against Seller in accordance with
their respective terms, (c) no Event of Default or Default has occurred and is
continuing or would exist after giving effect to this letter and (d) Seller has
no defense, counterclaim or offset with respect to the Agreement.
The execution, delivery and effectiveness of this letter shall not operate
as a waiver of any right, power or remedy of Buyer, nor constitute a waiver of
any provision of the Agreement, or any other documents, instruments or
agreements executed and/or delivered thereunder or in connection therewith.
This letter may be executed by the parties hereto in one or more
counterparts, each of which shall be deemed an original and all of which taken
together shall constitute one and the same agreement. Any signature delivered by
a party via telecopier shall be deemed an original signature hereto.
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If you are in agreement with the foregoing, kindly execute this letter
agreement ("Letter Agreement") in the space provided below and return same to
the undersigned. This Letter Agreement shall become effective upon Buyer's
receipt of four (4) copies of this Letter Agreement executed by each of the
undersigned.
Very truly yours,
FIRST UNION NATIONAL BANK
By: /s/ [SIGNATURE ILLEGIBLE]^^
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Name: [ILLEGIBLE]
Title Vice President
CONSENTED AND AGREED TO:
NOVASTAR FINANCIAL, INC., as a Seller
By: /s/ Rodney E. Schwatken
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Name: Rodney E. Schwatken
Title:__ Treasurer
NOVASTAR MORTGAGE, INC., as a Seller
By: /s/ Rodney E. Schwatken
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Name: Rodney E. Schwatken
Title:__ Treasurer
NOVASTAR CAPITAL, INC., as a Seller
By: /s/ Rodney E. Schwatken
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Name: Rodney E. Schwatken
Title:__ Treasurer
[SIGNATURES CONTINUED ON NEXT PAGE]
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NOVASTAR MORTGAGE, INC., as a Servicer
By: /s/ Rodney E. Schwatken
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Name: Rodney E. Schwatken
Title: Treasurer
NFI HOLDING CORPORATION, as Guarantor
By: /s/ Rodney E. Schwatken
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Name: Rodney E. Schwatken
Title: Treasurer
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