CAPITAL ASSURANCES AND LIQUIDITY MAINTENANCE AGREEMENT
This Capital Assurances and Liquidity Maintenance Agreement ("Agreement") is entered into, and is effective as of, the 23rd day of May, 2001, by and between California First National Bank ("Bank") and California First National Bancorp ("Parent"), a California corporation.
The Bank is a national bank chartered by the Office of the Comptroller of the Currency ("OCC") and is authorized, pursuant to the Decision of the OCC on the Application to Charter the Bank dated April 3, 2001, to commence business as a national bank association on May 23, 2001; and
||The Parent has agreed to purchase shares of the Bank and will be controlling stockholder of the Bank; and |
||In consideration of the mutual covenants and promises set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is expressly acknowledged by both parties, the Bank and the Parent hereby enter into this Agreement setting forth the Parent's requirement to provide to the Bank any necessary capital and/or liquidity support, all in order to ensure that the Bank continues to operate in a safe and sound manner without need of recourse to external sources; and|
||For purposes of the OCC's regulations under 12 C.F.R., Part 6, this Agreement shall not be deemed to have been issued by the OCC; and|
||In consideration of the mutual covenants and conditions contained herein, the parties to this Agreement hereby agree as follows:|