Document:

EXHIBIT 10(bl)

 January 23, 2002

 Dorinco Reinsurance Company
 1320 Waldo Avenue, Suite 200
 Midland, Michigan  48642

 Attention:  David E. Chamberlain

 RE:  Loan Agreement dated  March 10, 1997,  and amended by  Amendment No.  1
      executed August 14, 1998, Amendment No.  2 effective March 5, 1999  and
      Amendment No.  3 effective  November 19,  1999 (as  amended, the  "Loan
      Agreement") between Hallmark Financial Services, Inc. ("Borrower")  and
      Dorinco Reinsurance Company ("Lender")

 Dear Mr. Chamberlain:

 The purpose of this letter is  to obtain written acknowledgment of  Lender's
 waiver of the "triggering events" under Subsections 3.a and 3.b. of the Loan
 Agreement for the quarter ended December 31, 2001.

 As you  know,  effective  July 1,  2000,  Borrower's  insurance  subsidiary,
 American Hallmark  Insurance Company  of Texas  ("AH"), entered  into a  new
 reinsurance agreement  with  Lender  which  altered  several  terms  of  the
 previous reinsurance arrangement  between the parties.  Among other  things,
 the new reinsurance  agreement provides that  policy fees are  ceded on  the
 same basis as  premiums rather  than retained by  AH as  provided under  the
 prior arrangement. This change in treatment  of policy fees has  predictably
 had an adverse impact on AH's statutory accounting Loss Ratio (as defined in
 the  Loan  Agreement).  Effective  April 1,  2001,  AH and  Dorinco  further
 amended the reinsurance  agreement to include  a loss  corridor on  policies
 written effective April 1, 2001.  Thus, for losses that fall within the loss
 corridor AH assumes 100% of the  risk.  Additionally, during the year  ended
 December  31,  2001,  AH   incurred  extraordinary  weather-related   losses
 principally in  connection  with a  catastrophic  flood in  Houston,  Texas.
 Finally, although AH has implemented premium rate increases of approximately
 40% during  the last  twenty-four month  period,  a significant  portion  of
 earned premiums  as reflected  in financial  statements ended  December  31,
 2001, are still at depressed rates.

 The Combined Ratio and the Loss Ratio of AH for the year ended December  31,
 2001, exceeded  the respective  thresholds  of 83%  and  107% set  forth  in
 Subsections 3.a and 3.b.  of the Loan Agreement.  AH's Loss Ratio was  98.6%
 and the Combined Ratio was 114.4%. However, in the absence of the change  in
 treatment of policy  fees, the addition  of the loss  corridor and  weather-
 related claims (particularly the Houston flood which significantly  impacted
 the loss corridor), the Combined Ratio and

<PAGE>

 Dorinco Reinsurance Company
 January 23, 2001
 Page 2

 Loss Ratio for the year ended December  31, 2001, would have been 87.8%  and
 72.0%, respectively.    Further, the  change  in treatment  of  policy  fees
 favorably impacted AH's premium to surplus  ratio, as intended. The  premium
 to surplus ratio  was at an  acceptable 2.60:1 on  reported surplus of  $6.0
 million at December 31, 2001.   Therefore, Borrower requests a waiver of the
 "triggering events" under Subsections  3.a. and 3.b.  of the Loan  Agreement
 for the year ended December 31, 2001.

 Please acknowledge Lender's consent to the requested waiver by executing and
 returning to the undersigned the enclosed duplicate original of this letter.
 Thank you for your courtesy and cooperation in this matter.

 Very truly yours,

 Linda H. Sleeper
 President and CEO

 CONSENTED TO AND AGREED AS OF __________________, 2001:

 DORINCO REINSURANCE COMPANY

 By:  ______________________________

      Name:_________________________

      Title:__________________________EXHIBIT 10(bm)

                               AMENDMENT NO. 4

           Loan Agreement Between Hallmark Financial Services, Inc.
                       And Dorinco Reinsurance Company

    This Amendment No. 4  is made and entered  into effective as of  November
 8, 2001,  by  and  between  Hallmark  Financial  Services,  Inc.,  a  Nevada
 corporation (the "Borrower"),  and Dorinco Reinsurance  Company, a  Michigan
 corporation (the "Lender").

    WHEREAS, Borrower and  Lender have entered  into a  Loan Agreement  dated
 March 10,  1997, which  Loan Agreement  has previously  been amended  by  an
 Amendment No. 1  executed by  Borrower on  July 31,  1998 and  by Lender  on
 August 14, 1998; an Amendment No.  2 effective as of  March 5, 1999; and  an
 Amendment No.  3  effective  as  of  November  19,  1999  (as  amended,  the
 "Agreement");

    WHEREAS, Borrower has reduced  the original principal amount  outstanding
 pursuant to the Loan Agreement and  has executed a Third Renewal  Promissory
 Note of even date herewith reflecting the new principal balance and  certain
 revised payment terms;

    THEREFORE, in consideration of the mutual covenants contained herein  the
 parties hereby agree as set forth below.

    A.   Subsection 1.ac. of the Agreement is hereby deleted in its  entirety
 and the following Subsection 1.ac. is substituted in its place:

             "ac.'Promissory  Note' means  the Third  Renewal Promissory
    Note dated  November 8, 2001,  in the  original principal  amount of
    $1,719,331.00 from  Borrower,  as maker,  payable  to  the order  of
    Lender,   and   all   extensions,    renewals,   substitutions   and
    modifications thereof."

    B.   Section 2 of  the Agreement is  hereby deleted in  its entirety  and
 the following Section 2 is substituted in its place:

             "2. Promissory  Note  Commitment.    Lender  will  loan  to
    Borrower the sum of $1,719,311.00 upon  the terms and conditions set
    forth in this Agreement and the Promissory Note for the purposes set
    forth in Subsection 6.k. of this Agreement."

    C.          Except as expressly amended hereby, all terms and  conditions
 of the Agreement shall remain in full force and effect.

    IN WITNESS WHEREOF, the parties  hereto have executed this Amendment  No.
 4 to be effective as of the date set forth above.

 BORROWER:

 HALLMARK FINANCIAL SERVICES, INC.

 By:________________________________________
 Name:     Linda H. Sleeper
 Title:    President

 LENDER:

 DORINCO REINSURANCE COMPANY

 By:________________________________________

 Name:______________________________________

 Title:_______________________________________EXHIBIT 10(bn)

                        SECOND MODIFICATION AGREEMENT

 This SECOND  MODIFICATION AGREEMENT  ("Modification") is  entered into  this
 11th day of  December, 2001  by and  among Hallmark  Finance Corporation  as
 seller (the "Seller"), and FPF, Inc. ("FPF").

 WITNESSETH;

      WHEREAS, pursuant to that certain  Sale and Assignment Agreement  dated
 as of November 18, 1999 and as amended or modified by and among the FPF  and
 the Seller (the "Agreement"), FPF agrees  to purchase, and Seller agrees  to
 sell Eligible Premium; and

      WHEREAS, all capitalized terms used herein and not otherwise defined in
 the Agreement shall have the meaning set forth herein; and

      WHEREAS, Seller and  FPF desire to  modify and amend  the Agreement  as
 hereinafter set forth.

      NOW, THEREFORE,  in  consideration  of the  covenants,  conditions  and
 agreements contained in the  Documents, the parties  hereto intending to  be
 legally bound, hereby agree as follows:

 1) Maximum  Purchase Commitment.  The  term "Maximum Purchase Commitment" as
   defined in  the Agreement is  hereby amended in  its entirety  to read  as
   follows:

                "Maximum Purchase Commitment" means $13,500,000.00.

 2) Advance  Rate.  The  term "Advance Rate"  as defined in  Exhibit A of the
   Agreement is hereby amended in its entirety to read as follows:

                "Advance Rate"  shall mean  a percentage  from time  to  time
 specified by Seller in writing to FPF but in no event to exceed  ninety-four
 percent (94.00%) reduced by the Reserve Percentage.

 3) Interest Rate.   The term  "Interest Rate" as defined in Exhibit A of the
   Agreement is hereby amended in its entirety to read as follows

                "Interest Rate"  shall  be  the  Prime  Rate  plus  a  spread
 ("Spread") shown below, based on an actual/360 day year.

      a)   From the  Closing and  for each  day in  which the  prior  month's
           average daily FPF principal balance   is $5,000,000 or below,  the
           Spread shall be  one percent (1.00%);  subject to  the floor  rate
           described below; and

      b)   For any day in which the prior month's average daily FPF principal
           balance is  greater  than $5,000,000,  then  the Spread  shall  be
           three-quarter percent (0.750%) subject to the floor rate described
           below; and

      c)   The Interest Rate shall  be subject to  a minimum rate  (combining
           the Prime Rate and applicable Spread) of 5.75%.

 4) Option to  Revert to Prior Definitions:  Seller shall retain the one-time
   right  to  revert back  to  the  Interest Rate  definition  which  existed
   immediately prior  to this  Second Modification,  and which  right may  be
   realized by  Seller upon  delivery of written  notice to  FPF stating  its
   request to revert to the  prior Interest Rate definition.  Such  reversion
   to the prior Interest Rate definition will cause a simultaneous  reversion
   of the Advance Rate to its prior definition of ninety percent (90.0%).

 5) Agreement  Ratification.  All terms, conditions  and covenants of the not
   otherwise  modified herein  are hereby  ratified  and confirmed  and  this
   Second Modification, when executed  by the parties hereto, shall become  a
   part of the Agreement and shall  have the same force and effect as if  the
   terms and conditions hereof were originally incorporated in the  Agreement
   prior to the execution thereof.

 IN WITNESS WHEREOF, this  Second Modification Agreement  is executed by  the
 undersigned parties as of the day and year first set forth above.

                               FPF, Inc.

                               By:_______________________________
                                    Bruce I. Lundy
                                    President

                               SELLER:

                               Hallmark Finance Corporation

                               By:_______________________________

                               Printed Name:  Linda H. Sleeper
                                      Title:  President & CEO

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