Document:

Substitute Revolving Credit Note

 Exhibit 4.1 
 SUBSTITUTE REVOLVING CREDIT NOTE 
  

			
	$20,000,000	 	As of February 2, 2009

 FOR VALUE RECEIVED, the undersigned, MEDALLION FINANCIAL CORP. a Delaware corporation (the
“Borrower”), hereby unconditionally promises to pay on or before July 1, 2009 (the “Revolving Credit Termination Date”), to the order of STERLING NATIONAL BANK (the “Bank”), at the office of the Bank located at 650
Fifth Avenue, New York, New York 10019, or at such other location as the Bank shall designate, in lawful money of the United States of America and in immediately available funds, the principal amount of the lesser of (i) $20,000,000, or
(ii) so much thereof as shall have been advanced (the “Advances”) by the Bank to the Borrower and remain outstanding pursuant to that certain Loan and Security Agreement dated April 26, 2004 by and between the Borrower and the
Bank, as amended by a First Amendment thereto dated July 28, 2005, a letter agreement dated June 15, 2006, a Second Amendment thereto dated August 14, 2006, a letter agreement dated June 27, 2007, a Third Amendment thereto dated
July 31, 2007, a Fourth Amendment thereto dated as of December 31, 2007, a letter agreement dated June 27, 2008, a Fifth Amendment thereto dated August 28, 2008, a Sixth Amendment thereto dated as of December 31, 2008 and a
Seventh Amendment thereto dated as of the date hereof (collectively, the “Agreement”). Terms used herein and not otherwise defined shall have the meanings ascribed to them in the Agreement. 
 The Borrower further agrees to pay interest in like money at such office on the unpaid principal amount hereof from time to time at a rate or rates per
annum and at such times as are provided in the Agreement. Interest shall be calculated on the basis of a 360-day year for the actual number of days elapsed. 
 All Advances made by the Bank to the Borrower hereunder may be noted by the Bank on any schedule or other record which may now or hereafter be annexed by the Bank hereto, and the Bank is authorized to make such
notations which shall be prima facie evidence of the principal amount outstanding hereunder at any time; provided, however, that any failure to make such a notation (or any error in notation) shall not limit or otherwise affect the obligation of the
Borrower hereunder, which is and shall remain absolute and unconditional. 
 This Note is secured by the Collateral, the Security Agreement
and other collateral described in the Agreement, and is guaranteed by Medallion Funding Corp. 
 The Borrower shall pay to the Bank a late
charge (the “Late Charge”) in an amount equal to five percent (5%) of any payment which is more than ten (10) days in arrears to cover the extra expense involved in handling delinquent payments. The term “payments”
shall be construed to include principal, interest, fees and any other amount due under the terms of this Note or any of the other Loan Documents. Acceptance by the Bank of payment of a Late Charge shall in no way be construed to be an election of
remedies or waiver by the Bank of any of its rights at law or under the terms of any of the Loan Documents. 

 This Note may be prepaid, in whole or in part, at any time or from time to time, in accordance with the
provisions of the Agreement. 
 All payments made hereunder shall be applied: first, to any fees or other charges owing to the Bank
hereunder; second, to accrued and unpaid interest; and third, to the outstanding principal balance hereof. Notwithstanding the foregoing, upon the occurrence of an Event of Default, the Bank may apply payments received hereunder in such manner as it
shall determine in its sole and absolute discretion. 
 The Bank may declare this Note to be immediately due and payable if any of the
following events shall have occurred and be continuing: 
 (1) Failure by the Borrower to make any payment of principal or interest under this
Note on any date when due; or 
 (2) An Event of Default shall have occurred under the Agreement or any of the other Loan Documents.

 Upon the occurrence of any Event of Default, the Bank may, in addition to such other and further rights and remedies as provided by law or
under any of the Loan Documents, (i) collect interest on such overdue amount from the date of such maturity until paid at a rate per annum equal to two percent (2%) in excess of the rate otherwise in effect hereunder, (ii) setoff such
amount against any deposit account maintained in the Bank by the Borrower, and such right of setoff shall be deemed to have been exercised immediately upon such stated or accelerated maturity even though such setoff is not noted on the records of
the Bank until a later time, and (iii) hold as security any property heretofore or hereafter delivered into the custody, control or possession of the Bank or any entity acting as agent for the Bank by any person liable for the payment of this
Note. 
 This Note may not be changed orally, but only by an agreement in writing, signed by the party against whom enforcement of any
waiver, change, modification or discharge is sought. 
 Should the indebtedness represented by this Note or any part hereof be collected at
law or in equity, or in bankruptcy, receivership, or any other court proceeding, or should this Note be placed in the hands of attorneys for collection upon default, the Borrower agrees to pay, in addition to the principal and interest due and
payable hereon, all reasonable costs and expenses of collecting or attempting to collect this Note, including reasonable attorneys’ fees and expenses. 
 This Note shall be and remain in full force and effect and in no way impaired until the actual payment thereof to the Bank, its successors or assigns. 
 Anything herein to the contrary notwithstanding, the obligations of the Borrower under this Note shall be subject to the limitation that payments of
interest shall not be required to the extent that receipt of any such payment by the Bank would be contrary to provisions of law applicable to the Bank limiting the maximum rate of interest which may be charged or collected by the Bank. 

 

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 The Borrower and all endorsers and guarantors of this Note hereby waive presentment, demand for payment,
protest and notice of dishonor of this Note. 
 This Note is binding upon the Borrower and its successors and permitted assigns and shall
inure to the benefit of the Bank and its successors and assigns. 
 This Note and the rights and obligations of the parties hereto shall be
subject to and governed by the laws of the State of New York without regard to any conflict of laws principles. 
 This Note is executed and
delivered by the Borrower in substitution for, but not in repayment of, the Substitute Revolving Credit Note dated as of December 31, 2008 from the Borrower to the Bank in the maximum principal amount of $20,000,000 (the “Prior
Note”); provided, however, that the execution and delivery by the Borrower of this Note shall not constitute a refinancing, repayment, accord and satisfaction or novation of the Prior Note or the indebtedness evidenced thereby. 
 IN WITNESS WHEREOF, the undersigned has caused this Note to be duly executed by its authorized officer as of the date set forth on the first page hereof.

  

			
	MEDALLION FINANCIAL CORP.
		
	By:	 	 /s/ Brian S. O’Leary

	Name:	 	Brian S. O’Leary
	Title:	 	Executive Vice President &
		 	Chief Operating Officer

  

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	STATE OF NEW YORK	 	)	  		  	
		 	:	  	ss.:	  	
	COUNTY OF NEW YORK	 	)	  		  	

 On the 2nd day of February, 2009, before me, the undersigned, personally appeared Brian
S. O’Leary, personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their capacity(ies), and that by his/her their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument. 
  

	
	 Marisa Silverman

	Notary Public
	
	MARISA SILVERMAN
	Notary Public, State of New York
	No. 02SI6123541
	Qualified in Kings County, NY
	Commission Expires 3/7/09Seventh Amendment to Loan and Security Agreement

 Exhibit 10.1 
 SEVENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT 
 THIS SEVENTH AMENDMENT TO LOAN AND SECURITY
AGREEMENT (the “Amendment”) is dated as of February 2, 2009 and is by and between MEDALLION FINANCIAL CORP., a Delaware corporation having an address of 437 Madison Avenue, New York, New York 10022 (the “Borrower”), and
STERLING NATIONAL BANK, a national banking association having an address of 650 Fifth Avenue, New York, New York 10019 (the “Bank”). 
 RECITALS 
 A. The Borrower and the Bank entered into a Loan and Security Agreement dated April 26, 2004 (the
“Original Loan Agreement”), pursuant to which the Bank has agreed to extend certain credit and make certain loans to the Borrower. 
 B. Pursuant to a First Amendment to Loan and Security Agreement dated July 28, 2005 (the “First Amendment”), the Borrower and the Bank amended the Original Loan Agreement by, among other things, extending the Revolving Credit
Termination Date (as defined therein) to June 30, 2006. 
 C. Pursuant to a letter agreement dated June 15, 2006 (the “First
Letter Extension”), the Borrower and the Bank further amended the Original Loan Agreement by, among other things, extending the Revolving Credit Termination Date (as defined therein) to August 31, 2006. 
 D. Pursuant to a Second Amendment to Loan and Security Agreement dated August 14, 2006 (the “Second Amendment”), the Borrower and the Bank
further amended the Original Loan Agreement by, among other things, extending the Revolving Credit Termination Date (as defined therein) to June 30, 2007. 
 E. Pursuant to a letter agreement dated June 27, 2007 (the “Second Letter Extension”), the Borrower and the Bank further amended the Original Loan Agreement by extending the Revolving Credit Termination
Date (as defined therein) to July 31, 2007. 
 F. Pursuant to a Third Amendment to Loan and Security Agreement dated July 31, 2007
(the “Third Amendment”), the Borrower and the Bank further amended the Original Loan Agreement by, among other things, extending the Revolving Credit Termination Date (as defined therein) to June 30, 2008 
 G. Pursuant to a Fourth Amendment to Loan and Security Agreement dated as of December 31, 2007 (the “Fourth Amendment”), the Borrower and
the Bank further amended the Original Loan Agreement. 
 H. Pursuant to a letter agreement dated June 27, 2008 (the “Third Letter
Extension”), the Borrower and the Bank further amended the Original Loan Agreement by extending the Revolving Credit Termination Date (as defined therein) to August 31, 2008. 

 I. Pursuant to a Fifth Amendment to Loan and Security Agreement dated August 28, 2008 (the
“Fifth Amendment”), the Borrower and the Bank further amended the Original Loan Agreement by extending the Revolving Credit Termination Date (as defined therein) to December 31, 2008. 
 J. Pursuant to a Sixth Amendment to Loan and Security Agreement dated as of December 31, 2008 (the “Sixth Amendment”) (the Original Loan
Agreement, as amended by the First Amendment, the First Letter Extension, the Second Amendment, the Second Letter Extension, the Third Amendment, the Fourth Amendment, the Third Letter Extension, the Fifth Amendment and the Sixth Amendment, is
collectively referred to herein as the “Loan Agreement”), the Borrower and the Bank further amended the Original Loan Agreement by extending the Revolving Credit Termination Date (as defined therein) to July 1, 2009. 
 K. The Borrower has requested, and the Bank has agreed to make, certain amendments to the Loan Agreement, all as more fully described herein. 

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows: 
 AGREEMENT 
 1. Defined Terms. Except as otherwise indicated herein, all words and terms defined in the Loan Agreement shall have the same meanings when used
herein. 
 2. Change in LIBOR Based Rate. The parties have agreed to place a “floor” of three (3%) percent per annum on
the LIBOR Based Rate. Accordingly, the definition of the term “LIBOR Based Rate” set forth in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety as follows: 
 “LIBOR Based Rate” shall mean the greater of (i) the LIBOR Rate plus 200 basis points or (ii) three (3.00%) percent per
annum. 
 3. Amendments to Other Loan Documents. Each of the other Loan Documents is hereby amended to the extent necessary to reflect
the amendments to the terms of the Loan Agreement effected by this Amendment. Without limiting the generality of the foregoing, each of the other Loan Documents shall secure the Revolving Credit Note (as defined below) to the same extent, and with
the same effect, as it secured the Prior Note (as defined below). The Borrower shall take or cause to be taken such actions, and shall execute, deliver, file and/or record or cause to be executed, delivered, filed and/or recorded such documents and
other instruments, as the Bank shall deem to be necessary or advisable in order to confirm, implement or perfect the amendments to the other Loan Documents effected by this Paragraph. 
 4. No Defenses. The Borrower acknowledges that, as of the date hereof, the aggregate outstanding principal balance under the Revolving Credit Loan
is $11,000,000. The Borrower acknowledges and agrees that, as of the date hereof, it has no offsets, counterclaims or defenses of any nature whatsoever to its Obligations to the Bank under the Loan Agreement or any of the other Loan
Documents, and hereby expressly waives and releases any and all claims against the Bank which exist on the date hereof with respect thereto. 
  

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 5. Substitute Note. Concurrently herewith, the Borrower is executing and delivering to the Bank a
Substitute Revolving Credit Note in the maximum principal amount of $20,000,000 (the “Revolving Credit Note”) in substitution for, but not in repayment of, the Substitute Revolving Credit Note dated as of December 31, 2008 in the
maximum principal amount of $20,000,000 previously issued by the Borrower to the Bank (the “Prior Note”). The execution and delivery by the Borrower of the Revolving Credit Note pursuant to the provisions hereof shall not constitute a
refinancing, repayment, accord and satisfaction or novation of the Prior Note or the indebtedness evidenced thereby. 
 6. Reaffirmation
of Guaranty Agreement and Security Agreement. In order to induce the Bank to enter into this Amendment and to amend the Loan Agreement as provided herein, the Borrower is causing Medallion Funding Corp. to execute and deliver to the Bank
concurrently herewith a Reaffirmation of Guaranty and Security Agreement. 
 7. Representations and Warranties. In order to induce the
Bank to enter into this Amendment and to amend the Loan Agreement as provided herein, the Borrower hereby represents and warrants to the Bank that: 
 (a) All of the representations and warranties of the Borrower set forth in the Loan Agreement are true, complete and correct in all material respects on and as of the date hereof with the same force and effect as if made on and as of the
date hereof and as if set forth at length herein. 
 (b) After giving effect to this Amendment, no Event of Default presently exists and is
continuing on and as of the date hereof. 
 (c) Since the date of the Borrower’s most recent financial statements delivered to the Bank,
the Borrower has not experienced a material adverse effect in its business, operations or financial condition. 
 (d) The Borrower has full
power and authority to execute, deliver and perform any action or step which may be necessary to carry out the terms of this Amendment and this Amendment has been duly executed and delivered by the Borrower and is the legal, valid and binding
obligation of the Borrower enforceable in accordance with its terms, subject to any applicable bankruptcy, insolvency, general equity principles or other similar laws affecting the enforcement of creditors’ rights generally. 
 (e) The execution, delivery and performance of this Amendment will not (i) violate any provision of any existing law, statute, rule, regulation or
ordinance, (ii) conflict with, result in a breach of, or constitute a default under (A) the certificate of incorporation or by-laws of the Borrower, (B) any order, judgment, award or decree of any court, governmental authority, bureau
or agency, or (C) any mortgage, indenture, lease, contract or other material agreement or undertaking to which the Borrower is a party or by which the Borrower or any of its properties or assets may be bound, or (iii) result in the
creation or imposition of any lien or other encumbrance upon or with respect to any property or asset now owned or hereafter acquired by the Borrower, 

  

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other than liens in favor of the Bank, except, in the case of clauses (ii) and (iii) above, for any deviation from the foregoing which would not
reasonably be expected to have a Material Adverse Effect. 
 (f) No consent, license, permit, approval or authorization of, exemption by,
notice to, report to, or registration, filing or declaration with any person is required in connection with the execution, delivery and performance by the Borrower of this Amendment or the validity thereof or the transactions contemplated thereby,
other than (i) filing or recordation of financing statements and like documents in connection with the Liens granted in favor of the Bank, (ii) those consents, if they were not obtained or made, which would not reasonably be expected to
have a Material Adverse Effect and (iii) filings which the Borrower may be obligated to make with the Securities and Exchange Commission. 
 8. Bank Costs. The Borrower shall reimburse the Bank on demand for all costs, including reasonable legal fees and expenses and recording fees, incurred by the Bank in connection with this Amendment and the transactions referenced
herein. If payment of such costs is not made within ten (10) days of the Bank’s demand therefor, the Bank may, and the Borrower irrevocably authorizes the Bank to, charge the Borrower’s account with the Bank or make an Advance under
the Revolving Credit Loan in order to satisfy such obligation of the Borrower. 
 9. Counterparts. This Amendment may be signed in
several counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. 
 10. No
Change. Except as expressly set forth herein, all of the terms and provisions of the Loan Agreement shall continue in full force and effect. 
 11. Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York. 
 [Signatures on next page] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by
their proper and duly authorized officers as of the date set forth on the first page hereof. 
  

			
	MEDALLION FINANCIAL CORP.
		
	By:	 	 /s/ Brian S. O’Leary

	Name:	 	Brian S. O’Leary
	Title:	 	Executive Vice President &
		 	Chief Operating Officer
	
	STERLING NATIONAL BANK
		
	By:	 	 /s/ Thomas Braunstein

	Name:	 	Thomas Braunstein
	Title:	 	First Vice President

  

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