Credit Confirmation and Note Amendment No. 9 to First Amended and Restated Interim Warehouse and Security Agreement and Secured Note (Prudential Securities Credit Corp., LLC, American Business Credit, Inc., HomeAmerican Credit, Inc., New Jersey Mortgage and Investment Corp., and American Business Financial Services, Inc.)

Summary

This amendment updates the terms of a loan agreement between Prudential Securities Credit Corp., LLC (the lender) and three borrowers: American Business Credit, Inc., HomeAmerican Credit, Inc. (Upland Mortgage), and New Jersey Mortgage and Investment Corp., with American Business Financial Services, Inc. as guarantor. The amendment revises the maximum loan amount, clarifies default conditions, and adjusts the guarantor's obligations. All other terms of the original agreements remain in effect, and the parties reaffirm their commitments.

EX-10.69 7 0007.txt EXHIBIT 10.69 CREDIT CONFIRMATION AND NOTE AMENDMENT NO. 9 TO THE FIRST AMENDED AND RESTATED INTERIM WAREHOUSE AND SECURITY AGREEMENT AND SECURED NOTE Dated as of March 20, 2000 Reference is made to (x) the First Amended and Restated Interim Warehouse and Security Agreement, dated as of June 9, 1997 (the "Interim Warehouse Agreement") among Prudential Securities Credit Corporation (the "Lender") and HomeAmerican Credit, Inc. d/b/a Upland Mortgage ("Upland"), New Jersey Mortgage and Investment Corp. ("New Jersey Mortgage"), and American Business Credit, Inc. ("ABC", and together with Upland and New Jersey Mortgage, the "Borrowers"), as amended by Credit Increase Confirmation and Note Amendment No. 1, dated as of September 30, 1997, Credit Increase Confirmation and Note Amendment No. 2, dated as of December 22, 1997, Credit Increase Confirmation and Note Amendment No. 3, dated as of March 30, 1998, Credit Increase Confirmation and Note Amendment No. 4, dated May 29, 1998, Credit Increase Confirmation and Note Amendment No. 5, dated June 30, 1998, Credit Increase Confirmation and Note Amendment No. 6, dated July 31, 1998, Credit Increase Confirmation and Note Amendment No. 7, dated August 27, 1998 and Credit Increase Confirmation and Note Amendment No. 8, dated as of August 31, 1999, (y) the Secured Note, dated as of December 22, 1997 (the "Note"), from the Borrowers to the Lender, and (z) the Guaranty, dated as of June 9, 1997 (the "Guaranty"), from the Borrowers' ultimate parent, American Business Financial Services, Inc. ("ABFS" or the "Guarantor"), to the Lender. WHEREAS, the Lender and the Borrowers desire to amend the Interim Warehouse Agreement; NOW THEREFORE, the Lender, the Borrowers and the Guarantor hereby amend the Interim Warehouse Agreement, the Secured Note and the Guaranty as follows: Section 1 Amendment of the Interim Warehouse Agreement and Note. (a) The Introductory Clause of the Interim Warehouse Agreement is hereby deleted in its entirety and replaced with the following: This FIRST AMENDED AND RESTATED INTERIM WAREHOUSE AND SECURITY AGREEMENT, dated as of June 9, 1997 (as amended or otherwise modified from time to time, this "Agreement") among PRUDENTIAL SECURITIES CREDIT CORP., LLC, a Delaware limited liability company, having an office at 1220 N. Market Street, Wilmington, Delaware 19801 (the "Lender"), AMERICAN BUSINESS CREDIT, INC., a Pennsylvania corporation having its principal office at 111 Presidential Boulevard, Bala Cynwyd, Pennsylvania 19004 ("ABC"), NEW JERSEY MORTGAGE AND INVESTMENT CORP., a New Jersey corporation having its principal office at 111 Presidential Boulevard, Bala Cynwyd, Pennsylvania 19004 ("New Jersey Mortgage"), and HOMEAMERICAN CREDIT, INC. doing business as UPLAND MORTGAGE, a Pennsylvania corporation, having its principal office at 111 Presidential Boulevard, Bala Cynwyd, Pennsylvania 19004 ("Upland", and together with ABC and New Jersey Mortgage, the "Borrowers"). (b) The first sentence of Section I(A)(1) of the Interim Warehouse Agreement is hereby deleted in its entirety and replaced with the following: The Lender agrees to lend to the Borrowers an aggregate amount equal to the lesser of (i) $150,000,000 (such borrowing, the "Loan") to be made in one or more advances (each, an "Advance"); provided, however, that, in no event shall the outstanding debt owed to the Lender by the Borrowers or any of their Affiliates (including, without limitation, American Business Leasing, Inc. and Federal Leasing Corp.) under any loan agreement (including, without limitation, this Agreement) or in connection with any indenture (including, without limitation, the Indenture dated as of March 1, 2000 (the "MLWT 2000-1 Indenture") between ABFS Mortgage Loan Warehouse Trust 2000-1, as Issuer and The Chase Manhattan Bank, as Indenture Trustee) exceed an aggregate amount of $150,000,000 and (ii) at any time when funds are on deposit in a Pre-Funding Account (as defined herein), the amount on deposit in such Pre-Funding Account. (c) The following is hereby added as Section 10(J) of the Interim Warehouse Agreement: Any "Event of Default" or any "Amortization Event" shall have occurred under the MLWT 2000-1 Indenture, or any "Servicer Event of Default" shall have occurred under the Sale and Servicing Agreement dated as of March 1, 2000, by and among ABFS Millenium, Inc., as Depositor, the Borrowers, as Originators, ABFS, as Guarantor, ABFS Mortgage Loan Warehouse Trust 2000-1, as Issuer, ABC as Servicer and The Chase Manhattan Bank, as Indenture Trustee and Collateral Agent. Section 2 Amendment of the Guaranty. Section 9, clause (v) of the Guaranty is hereby deleted in its entirety and replaced with the following: The Guarantor shall at no time have guarantees outstanding in respect of obligations in excess of $325,000,000. Section 3 Confirmation of the Interim Warehouse Agreement, the Note and the Guaranty. As amended by Section 1 and Section 2 hereof, all provisions of the Interim Warehouse Agreement, the Note and the Guaranty, are reconfirmed as of the date hereof. Each of the Borrowers and the Guarantor, in addition, hereby reconfirms and remakes as of the date hereof each and every one of its representations, warranties and covenants as set forth in the Interim Warehouse Agreement, the Note or the Guaranty, as applicable. [Remainder of Page Intentionally Left Blank] IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. AMERICAN BUSINESS CREDIT, INC., as Borrower By: ---------------------------------- Name: Title: HOMEAMERICAN CREDIT, INC. D/B/A UPLAND MORTGAGE, as Borrower By: ---------------------------------- Name: Title: NEW JERSEY MORTGAGE AND INVESTMENT CORP., as Borrower By: ---------------------------------- Name: Title: AMERICAN BUSINESS FINANCIAL SERVICES, INC., as Guarantor By: ---------------------------------- Name: Title: PRUDENTIAL SECURITIES CREDIT CORP., LLC, as Lender By: ---------------------------------- Name: Title: