Exhibit 10.1
 
OMNIBUS AMENDMENT NO. 2
TO
LOAN, SECURITY AND SERVICING AGREEMENT
AND
FEE AGREEMENT

THIS AMENDMENT (the “Amendment”) is entered into effective as of September 30,
2009, by and among, Ministry Partners Funding, LLC (the “Borrower”), Fairway
Finance Company, LLC (the “Lender”), Evangelical Christian Credit Union (the
“Servicer”), BMO Capital Markets Corp. (the “Agent”), U.S. Bank National
Association, and Lyon Financial Services, Inc. (d/b/a U.S. Bank Portfolio
Services).
 
WITNESSETH
 
WHEREAS, the parties hereto previously entered into that certain Loan, Security
and Servicing Agreement, dated as of October 30, 2007, as heretofore amended
(the “Original Loan Agreement”, the Original Loan Agreement, as amended by this
Amendment are herein collectively called the “Loan Agreement”);
 
WHEREAS, in connection with the Original Loan Agreement, the Borrower, the
Servicer and the Agent entered into that certain Fee Agreement, dated as of
October 30, 2007, as heretofore amended (the “Original Fee Agreement”, the
Original Fee Agreement, as amended by this Amendment are herein collectively
called the “Fee Agreement”);
 
WHEREAS, the Facility Termination Date occurred on October 31, 2008 and as a
result thereof, the Lenders’ obligations to make Loans under the Loan Agreement
have terminated and the outstanding Loans are amortizing in accordance with the
terms of the Loan Agreement;
 
WHEREAS, the parties hereto have agreed to amend the Original Loan Agreement and
the Original Fee Agreement on the terms and subject to the conditions set forth
herein;
 
NOW, THEREFORE, in consideration of the premises and mutual agreement contained
herein, the adequacy and sufficiency of which are hereby acknowledged, the
parties hereby agree as follows:
 
Section 1.  Defined Terms.
 
For purposes of this Amendment, unless the context clearly requires otherwise,
all capitalized terms which are used but not otherwise defined herein shall have
the respective meanings assigned to such terms in the Loan Agreement.
 
Section 2.  Amendment to Loan Agreement.
 
(a)           Clause ‘sixth’ of Section 1.4(e) of the Original Loan Agreement is
hereby amended in its entirety to read as follows:
 
“sixth, to the Agent, in payment of the sum of (i) the accrued and unpaid
Interest on the outstanding Loans, plus (ii) the accrued and unpaid Non-Usage
Fee, plus (iii) any losses or expenses incurred by the Agent or the Lender as a
result of any payment or prepayment of all or any portion of the Loan
(including, without limitations, as a result of clause (e) seventh below, plus
(iv) all reasonable costs, fees and expenses that Agent pays or incurs in
connection with the negotiation, preparation, administration, enforcement,
perfection, amendment and termination of this Agreement or any of the other
Transaction Documents (including, without limitation, the reasonable fees and
expenses of counsel to Agent actually incurred in connection therewith) (each,
as confirmed by the Agent);”

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(b)           Subsections (i), (ii) and (iii) to the definition of
“Concentration Limits” set forth in Exhibit I of the Original Loan Agreement are
hereby amended in their entirety to read as follows:
 
“(i)  The aggregate Outstanding Principal Balance of all Eligible Mortgage Loans
located in any single state (other than California, Texas and Florida) shall not
exceed 9% of the Eligible Pool Balance;
 
(ii)  The aggregate Outstanding Principal Balance of all Eligible Mortgage Loans
located in (a) Texas shall not exceed 19% of the Eligible Pool Balance, and (b)
Florida shall not exceed 12% of the Eligible Pool Balance;
 
(iii)  The aggregate Outstanding Principal Balance of all Eligible Mortgage
Loans located in California shall not exceed 15% of the Eligible Pool Balance;”
 
(c)           The definition of “Concentration Limits” set forth in Exhibit I of
the Original Loan Agreement is hereby amended by deleting the “and” following
subsection (x) and deleting the “.” following subsection (xi) and replacing it
with “;” and adding the following provisions as subsections (xii) and (xiii):
 
“              (xii)  The aggregate Outstanding Principal Balance of all
Eligible Mortgage Loans that have a Mortgagor Debt Service ratio in excess of
30% shall not exceed 14% of the Eligible Pool Balance;
 
(xiii)  The aggregate Outstanding Principal Balance of all Eligible Mortgage
Loans that have an LTV in excess of 45% shall not exceed 69% of the Eligible
Pool Balance;”
 
(d)           The definition of “Eligible Mortgage Loan” set forth in Exhibit I
of the Original Loan Agreement is hereby amended by deleting clause (xxxv) in
its entirety and replacing it with the following:
 
“[Reserved];”
 
(e)           The definition of “Loan Limit” set forth in Exhibit I of the
Original Loan Agreement is hereby amended in its entirety to read as follows:
 
“ ‘Loan Limit’ means the amount set forth in the table below opposite the
corresponding date of determination:

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Date of Determination
Loan Limit
on and after September 30, 2009 and prior to October 14, 2009
$31,891,991
on and after October 14, 2009 and prior to November 14, 2009
$30,000,000
on and after November 14, 2009 and prior to December 14, 2009
$20,000,000
on and after December 14, 2009 and prior to January 14, 2010
$10,000,000
on and after January 14, 2010 and prior to February 14, 2010
$5,000,000
on and after February 14, 2010 and prior to March 14, 2010
$2,500,000
on and after March 14, 2010
$0.00

 
Section 3.  Amendment to Fee Agreement.
 
The second paragraph to the Original Fee Agreement is hereby amended and
restated in its entirety to read as follows:
 
“For purposes of the Loan Agreement, the term “Spread” means, (i) prior to the
occurrence and continuance of an Event of Default, and (A) prior to  January 1,
2010, 1.75%, or (B) on or after January 1, 2010, 3.00%, or (ii) following the
occurrence and during the continuance of an Event of Default, 2.00%.”
 
Section 4.  Conditions to Effectiveness.
 
This Amendment shall become effective as of the date first above written when
and only when:
 
(i)  the Agent shall have received a duly executed counterpart of this
Amendment,
 
(ii)  Borrower shall have paid all expenses of the Agent, including Agent’s
outside legal counsel, incurred and billed as of the date of this Amendment, in
connection with the transactions evidenced by this Amendment,
 
(iii)  Borrower shall have paid an amendment fee in the amount of $1,000.00 to
each of U.S. Bank National Association and Lyon Financial Services (d/b/a U.S.
Bank Portfolio Services), and

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(ii)  the Agent shall have received such other documents as the Agent may
request.
 
Section 5.  Waiver.  The Agent hereby irrevocably waives any breach or violation
of the Loan Agreement resulting solely from the Borrowing Base Deficit in
existence on or before the date hereof, which, for the avoidance of doubt, does
not include any Borrowing Base Deficit occurring on or after the date hereof.
 
Section 6.  Representations and Warranties.
 
In order to induce the parties to enter into this Amendment, Borrower represents
and warrants that:
 
(a)           The representations and warranties contained in Article II of the
Original Loan Agreement are true and correct at and as of the time of the
effectiveness hereof;
 
(b)           Borrower is duly authorized to execute and deliver this Amendment
and is and will continue to be duly authorized to perform its obligations under
the Loan Agreement.  Borrower has duly taken all action necessary to authorize
the execution and delivery of this Amendment and to authorize the performance of
the obligations of Borrower hereunder;
 
(c)           The execution and delivery by Borrower of this Amendment, the
performance by Borrower of its obligations hereunder and the consummation of the
transactions contemplated hereby do not and will not conflict with any provision
of law, statute, rule or regulation or of the certificate of formation and
operating agreement of Borrower, or of any material agreement, judgment,
license, order or permit applicable to or binding upon Borrower, or result in
the creation of any lien, charge or encumbrance upon any assets or properties of
Borrower.  Except for those which have been duly obtained, no consent, approval,
authorization or order of any court or governmental authority or third party is
required in connection with the execution and delivery by Borrower of this
Amendment or to consummate the transactions contemplated hereby; and
 
(d)           When duly executed and delivered this Amendment will be a legal
and binding instrument and agreement of Borrower, enforceable in accordance with
its terms, except as limited by bankruptcy, insolvency and similar laws applying
to creditors’ rights generally and by principles of equity applying to
creditors’ rights generally.
 
Section 7.  Ratification of Agreement.
 
Each of the Original Loan Agreement and the Original Fee Agreement as hereby
amended  are hereby ratified and confirmed in all respects.  Any reference to
the Loan Agreement or Fee Agreement in any Transaction Document shall be deemed
to refer to this Amendment also.  The execution, delivery and effectiveness of
this Amendment shall not, except as expressly provided herein, operate as a
waiver of any right, power or remedy of Agent or Lender under the Loan
Agreement, the Fee Agreement or any other Transaction Document nor constitute a
waiver of any provision of the Loan Agreement, the Fee Agreement or any other
Transaction Document.

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Section 8.  Facility Termination Date.
 
The Borrower, Servicer, Lender and Agent hereby confirm and agree that the
Facility Termination Date has heretofore occurred.
 
Section 9.  Survival of Agreements.
 
All representations, warranties, covenants and agreements of Borrower herein
shall survive the execution and delivery of this Amendment and the performance
hereof, and shall further survive until all of the Obligations are paid in
full.  All statements and agreements contained in any certificate or instrument
delivered by Borrower hereunder or under the Loan Agreement to the Agent or the
Lender shall be deemed to constitute representations and warranties by, or
agreements and covenants of, Borrower under this Amendment and under the Loan
Agreement.
 
Section 10.  Binding Effect.
 
The provisions of this Amendment shall be binding upon and shall be enforceable
by the parties hereto and their respective successors and assigns.
 
Section 11.  Governing Law.
 
This Amendment shall be construed in accordance with the substantive laws of the
State of New York (without regard to conflict of law principles, other than
Section 5-1401 of the New York General Obligations Law) and the obligations,
rights and remedies of the parties hereto shall be determined in accordance with
such laws.
 
Section 12.  Severability of Provisions.
 
If any one or more of the provisions or terms of this Amendment shall be for any
reason whatsoever held invalid, then such provisions or terms shall be deemed
severable from the remaining provisions or terms of this Amendment and shall in
no way affect the validity or enforceability of the other provisions or terms of
this Amendment.
 
Section 13.  Transaction Document.
 
This Amendment is a Transaction Document, and all provisions in the Loan
Agreement pertaining to Transaction Documents apply hereto and thereto.
 
Section 14.  Counterparts.
 
This Amendment may be separately executed in counterparts and by the different
parties hereto in separate counterparts, each of which when so executed shall be
deemed to constitute one and the same Amendment.  This Amendment may be duly
executed by facsimile or other electronic transmission.

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THIS AMENDMENT AND THE OTHER TRANSACTION DOCUMENTS REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
 
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by their duly authorized representatives on the date first written above.
 

 
MINISTRY PARTNERS FUNDING, LLC, as Borrower
         
By:_________________________________
 
Name: Billy M. Dodson
 
Title: President
         
EVANGELICAL CHRISTIAN CREDIT UNION, as Servicer
         
By:_________________________________
 
Name: Terry L. Donnelly
 
Title: Executive Vice President/ Credit Manager

 
 
 
 
 
 

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BMO CAPITAL MARKETS CORP., as Agent
         
By:_________________________________
 
Name: Matthew Peters
 
Title: Managing Director

 
 
 
 
 
 
 
 
 
 
 

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FAIRWAY FINANCE COMPANY, LLC, as Lender
         
By:_________________________________
 
Name: Philip A. Martone
 
Title: Vice President

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

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U.S. BANK NATIONAL ASSOCIATION, as Account Bank and Custodian
         
By:_________________________________
 
Name: David Duclos
 
Title: Vice President

 
 
 
 
 
 
 

 

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LYON FINANCIAL SERVICES, INC.
 
(d/b/a U.S. Bank Portfolio Services),
 
as Back-Up Servicer
         
By:_________________________________
 
Name: Joseph Andries
 
Title: Senior Vice President

 

 
 
 

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