Document:

Exhibit 10.16

   Amended Loan and Security dated November 24, 2003, between the Company and
                           Israel Discount Bank of NY

                                                                       EXECUTION

AMENDMENT NO. 3 TO THE SECOND AMENDED

AND RESTATED LOAN AND SECURITY AGREEMENT

AMENDMENT NO. 3 TO THE SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT,
dated as of November 24, 2003 (this "Amendment No. 3"), by and among ASTA
FUNDING ACQUISITION II, LLC ("AFA") and PALISADES COLLECTION, L.L.C.
("Palisades," and together with AFA, the "Borrower"), ASTA FUNDING, INC. ("Asta
Funding"), ISRAEL DISCOUNT BANK OF NEW YORK ("Lender") and the Debtors.

RECITALS

         A. AFA, Palisades, Asta Funding and the Debtors entered into the Second
Amended and Restated Loan and Security Agreement, dated as of January 28, 2003,
as amended (the "Loan Agreement").

         B. The Borrower has requested that the Lender increase the New Line of
Credit from $25,000,000 to $35,000,000, which increase shall be evidenced by the
Second Grid Note of the Borrower in the amount of $10,000,000 in the form
annexed hereto as Exhibit A (the "Second Grid Note").

         C. These Recitals are incorporated and made a part of the Loan
Agreement.

         D. The parties have agreed to amend the Loan Agreement in accordance
with the terms hereof. All capitalized terms used in this Amendment No. 3 shall
have the meaning given each such term in the Loan Agreement. Accordingly, the
Borrower, Asta Funding, the Debtors and the Bank hereby agree that the Loan
Agreement is hereby amended as follows:

SECTION 1. Amendments.

                  (a) New Line of Credit. RECITAL B in the Loan Agreement is
hereby amended by deleting "$25,000,000" and inserting "$35,000,000" in lieu
thereof.

                  (b) Grid Note. The definition of "Grid Note" in Section 1 of
the Loan Agreement is hereby deleted in its entirety and the following
substituted in lieu thereof:

                                    ""Grid Note" means, collectively, each of
                           (i) the note executed by Borrower in the aggregate
                           principal amount of $25,000,000 in the form of
                           Exhibit B annexed hereto, as may be amended, renewed
                           or replaced from time to time and (ii) the Second
                           Grid Note."

<PAGE>

                  (c) Second Grid Note. Section 1 of the Loan Agreement is
hereby amended by adding the following definition:

                                    ""Second Grid Note" means the promissory
                           note executed by Borrower in the aggregate principal
                           amount of $10,000,000, as may be amended, renewed or
                           replaced from time to time."

                  (d) New Line Fee. Section 2.5 of the Loan Agreement is hereby
deleted in its entirety and the following substituted in lieu thereof:

                                    "2.5 New Line Fee. Commencing on November
                           ____, 2003, the Borrower shall pay the Bank a fee
                           each month (the "New Line Fee") equal to the lesser
                           of (a) $12,000 or (b) 1/4 of 1% of the average daily
                           amount outstanding under the Second Grid Note for
                           such month. The New Line Fee for each month shall be
                           paid in arrears and shall be due on the first
                           business day of the immediately succeeding month."

SECTION 2. Conditions to Effectiveness of Amendment.

This Amendment No. 3 shall become effective on the date (the "Amendment
Effective Date") on which the following conditions precedent shall have been
satisfied:

                  (a) The Lender shall have received this Amendment No. 3
executed and delivered by a duly authorized officer of the Borrower, Asta
Funding, each Debtor and the Lender;

                  (b) The Lender shall have received the Second Grid Note,
executed and delivered by the Borrower; and

                  (e) The Lender shall have received such other documents as the
Bank or its counsel may reasonably request.

SECTION 3. Limited Effect.

Except as expressly amended and modified by this Amendment No. 3, the Loan
Agreement shall continue to be, and shall remain, in full force and effect in
accordance with its terms.

SECTION 4. Representations and Warranties.

The Borrower, Asta Funding and each Debtor hereby (a) ratifies and confirms its
respective obligations under the Loan Agreement and each Loan Document to which
it is a party and (b) confirms and reaffirms the representations and warranties
contained in Section 17 of the Loan Agreement and in each of the Loan Documents;
provided, however, that reference therein to the "Loan Documents" shall be
deemed to include this Amendment No. 3 and the Second Grid Note. The Borrower,
Asta Funding and each Debtor hereby represents and warrants that as of the
Amendment Effective Date, after giving effect to this Amendment No. 3, no Event
of Default shall have occurred or be continuing.

<PAGE>

SECTION 5. Counterparts.

This Amendment No. 3 may be executed by the parties hereto on any number of
separate counterparts, each of which shall be an original and all of which taken
together shall constitute one and the same instrument.

SECTION 6. Governing Law.

THIS AMENDMENT NO. 3 SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAW OF THE STATE OF NEW YORK.

<PAGE>

         IN WITNESS WHEREOF, the Borrower, Asta Funding, the Debtors and the
Lender have caused this Amendment No. 3 to be duly executed by their duly
authorized officers, all as of the date first above written.

ASTA FUNDING ACQUISITION II, LLC

     By:  /S/ Gary Stern
          -------------------------
          Gary Stern
          Manager

     By:  /S/ Mitchell Herman
          -------------------------
          Mitchell Herman
          Manager

PALISADES COLLECTION, L.L.C.

     By:  /S/ Gary Stern
          -------------------------
          Gary Stern
          Manager

     By:  /S/ Mitchell Herman
          -------------------------
          Mitchell Herman
          Manager

ASTA FUNDING, INC.

     By:  /S/ Gary Stern
          -------------------------
          Gary Stern
          President

     By:  /S/ Mitchell Herman
          -------------------------
          Mitchell Herman
          Secretary and Chief Financial Officer

<PAGE>

ASTA FUNDING ACQUISITION I, LLC

     By:   /S/ Gary Stern
          -------------------------
          Gary Stern
          Manager

     By:   /S/ Mitchell Herman
          -------------------------
          Mitchell Herman
          Manager

E.R. RECEIVABLES CORP., L.L.C.

     By:   /S/ Gary Stern
          -------------------------
          Gary Stern
          Manager

     By:   /S/ Mitchell Herman
          -------------------------
          Mitchell Herman
          Manager

PALISADES ACQUISITION I, LLC

     By:   /S/ Gary Stern
          -------------------------
          Gary Stern
          Manager

     By:   /S/ Mitchell Herman
          -------------------------
          Mitchell Herman
          Manager

PALISADES ACQUISITION II, LLC

     By:   /S/ Gary Stern
          -------------------------
          Gary Stern
          Manager

     By:   /S/ Mitchell Herman
          -------------------------
          Mitchell Herman
          Manager

<PAGE>

ISRAEL DISCOUNT BANK OF NEW YORK

     By:   /S/ Kevin Lord
          -------------------------
          Kevin Lord
          Vice President

     By:   /S/ Jerry Hertzman
          -------------------------
          Jerry Hertzman
          Senior Vice PresidentMutual Rescission Agreement

MUTUAL RESCISSION OF 

SECURITIES EXCHANGE AGREEMENT 

This Mutual Rescission of Securities Exchange Agreement (the "Rescission Agreement") is entered into effective this 18th day of December, 2003 by and between Anza Capital, Inc., a Nevada corporation ("Anza"), American Residential Funding, Inc., a Nevada corporation ("AMRES"), and Sutter Holding Company, Inc., a Delaware corporation ("Sutter"). Each of Anza, AMRES, and Sutter shall be referred to as a "Party" and collectively as the "Parties." 

RECITALS 

WHEREAS, the Parties entered into that certain Securities Exchange Agreement dated July 18, 2003 (the "Exchange Agreement"); 

WHEREAS, Section 4 of the Exchange Agreement provides that any Party may rescind that agreement by giving advance written notice to the other Parties; 

WHEREAS, the Parties desire to waive any advance notice provisions in the Exchange Agreement and rescind the Exchange Agreement in its entirety, effective immediately. 

NOW, THEREFORE, for good and adequate consideration, the receipt of which is hereby acknowledged, the Parties covenant, promise and agree as follows: 

AGREEMENT 

1.   RESCISSION : Effective on the date hereof, the Exchange Agreement is hereby rescinded in its entirety, and upon the completion of the deliveries set forth in Section 2 below, the obligations of each Party to the other Parties shall be terminated. All agreements entered into as contemplated by the Exchange Agreement, including but not limited to the Irrevocable Proxy’s, are terminated effective on the date hereof. 

2.   DELIVERIES : Within five (5) business days of the execution of this Rescission Agreement, the following shall occur: 

(a)  AMRES shall deliver to Sutter Sixty Six Thousand Four Hundred Ninety Six (66,496) shares of Sutter common stock (the "Sutter Shares"), along with a medallion guaranteed stock power sufficient for Sutter to cancel the Sutter Shares; 

 

(b)  Sutter shall deliver to AMRES One Million (1,000,000) shares of Series A Preferred Stock of AMRES (the "AMRES Shares"), endorsed or accompanied by a stock power sufficient for AMRES to cancel the AMRES Shares; and 

	 
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(c)   Sutter shall deliver to ANZA warrants to acquire One Million (1,000,000) shares of Anza common stock, which Sutter hereby acknowledges will be terminated effective on the date hereof. 

3.    REPRESENTATIONS AND WARRANTIES : Each of the Parties hereby represents, warrants and agrees as follows: 

(a)   Each Party has all requisite corporate power and authority to enter into and perform this Rescission Agreement and to consummate the transactions contemplated hereby. 

(b)   Each Party hereby agrees to indemnify and defend the other Parties and their directors and officers and hold them harmless from and against any and all liability, damage, cost or expense incurred on account of or arising out of the actions of an indemnifying party for: 

 

(i)    Any breach of or inaccuracy in representations, warranties or agreements herein; 

 

(ii)   Any action, suit or proceeding based on a claim that any of said representations, warranties or agreements were inaccurate or misleading or otherwise cause for obtaining damages or redress from an indemnifying party or any of its directors or officers. 

(c)   The representations, warranties and agreements contained in this Rescission Agreement shall be binding on each Parties’ successors, assigns, heirs and legal representatives and shall inure to the benefit of the respective successors and assigns of the other Parties. 

4.  This Rescission Agreement may not be amended, canceled, revoked or otherwise modified except by written agreement subscribed by all of the Parties to be charged with such modification. 

5.  All Parties hereto agree to pay their own costs and attorneys' fees except as follows: 

(a)  In the event of any action, suit or other proceeding instituted to remedy, prevent or obtain relief from a breach of this Agreement, arising out of a breach of this Agreement, involving claims within the scope of the releases contained in this Agreement, or pertaining to a declaration of rights under this Agreement, the prevailing Party shall recover all of such Party's attorneys' fees and costs incurred in each and every such action, suit or other proceeding, including any and all appeals or petitions therefrom. 

(b)   As used herein, attorneys' fees shall be deemed to mean the full and actual costs of any legal services actually performed in connection with the matters involved, calculated on the basis of the usual fee charged by the attorneys performing such services. 

	 
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6.    This Agreement and the rights of the parties hereunder shall be governed by and construed in accordance with the laws of the State of California including all matters of construction, validity, performance, and enforcement and without giving effect to the principles of conflict of laws. Venue for any action brought under this Agreement shall be in the appropriate court in either Orange County or San Francisco County, California, at the discretion of the Party first bringing the action. 

7.    The Parties agree and stipulate that each and every term and condition contained in this Agreement is material, and that each and every term and condition may be reasonably accomplished within the time limitations, and in the manner set forth in this Agreement. 

8.    The Parties agree and stipulate that time is of the essence with respect to compliance with each and every item set forth in this Agreement. 

9.    This Agreement, along with the exhibits hereto, sets forth the entire agreement and understanding of the Parties hereto and supersedes any and all prior agreements, arrangements and understandings related to the subject matter hereof. No understanding, promise, inducement, statement of intention, representation, warranty, covenant or condition, written or oral, express or implied, whether by statute or otherwise, has been made by any party hereto which is not embodied in this Agreement or the written statements, certificates, or other documents delivered pursuant hereto or in connection with the transactions contemplated hereby, and no Party hereto shall be bound by or liable for any alleged understanding, promise, inducement, statement, representation, warranty, covenant or condition not so set forth. 

10.  This Agreement may be executed in one or more counterparts, each of which when executed and delivered shall be an original, and all of which when executed shall constitute one and the same instrument. 

[remainder of page intentionally left blank] 

	

   

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IN WITNESS WHEREOF, the Parties hereto, agreeing to be bound hereby, execute this Agreement upon the date first set forth above. 

	
"AMRES" 
	
 
	
"Anza" 

	
 
	
 
	
 

	
 
	
 
	
 

	
American Residential Funding, Inc. 
	
 
	
Anza Capital, Inc. 

	
 
	
 
	
 

	
 
	
 
	
 

	
/s/ Vincent Rinehart
	
 
	
/s/ Vincent Rinehart

	

		

	
By: Vincent Rinehart 
	
 
	
By: Vincent Rinehart 

	
Its: President 
	
 
	
Its: President 

	
"Sutter" 
	
 

	
 
	
 

	
 
	
 

	
Sutter Holding Company, Inc. 
	
 

	
 
	
 

	
 
	
 

	
/s/ Robert E. Dixon
	
 

	

	
	
By: Robert E. Dixon 
	
 

	
Its: Co-CEO and President 
	
 

	

 

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