Second Amendment to Short Term Investment Agreement between WFS Financial Inc and Western Financial Bank

Contract Categories: Business Finance › Modification Agreements
Summary

This amendment, effective May 1, 2004, updates the Short Term Investment Agreement between WFS Financial Inc and Western Financial Bank. It specifies that interest on investments will be paid monthly and at the agreement's termination. If the Bank fails to pay interest on time, the unpaid amount will be added to WFS's investment as an additional contribution. All other terms of the original agreement remain unchanged.

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EX-10.8.2 5 a06512exv10w8w2.txt EXHIBIT 10.8.2 EXHIBIT 10.8.2 SECOND AMENDMENT TO THE SHORT TERM INVESTMENT AGREEMENT This SECOND AMENDMENT ("Amendment") is dated as of May 1, 2004, 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 SHORT TERM INVESTMENT AGREEMENT ("Agreement") entered into by the parties on January 1, 1996, pursuant to certain short-term investment services provided by the Bank to WFS. RECITALS A. The Agreement is being amended as follows: 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. The following sentences are to be added to the end of Clause 3 of the Agreement: "Interest shall be due and payable (i) on the tenth calendar day of each month (or if such day is not a business day, on the next business day thereafter) for the preceding month, and (ii) at termination of this Agreement. In the event that the Bank fails to pay interest when due, the Bank will increase the investment of WFS by such amount, which amount shall be deemed an additional investment by WFS hereunder." 2. Except as specifically amended herein, all terms of the Agreement as previously amended by the First amendment to the Agreement 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 WESTERN FINANCIAL BANK _________________________________ _______________________________ Mark Olson, Senior Vice President Lee A. Whatcott, Senior Executive Vice President and Chief Financial Officer