Amended Loan and Security Agreement dated January 28, 2003, between the Company and Israel Discount
Bank of NY.
SECOND AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT
THIS SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this "Agreement")
is executed and entered into as of January 28, 2003 by and among ASTA FUNDING ACQUISITION II, LLC,
a Delaware limited liability company and PALISADES COLLECTION, L.L.C., a Delaware limited liability
company (together, "Borrower"), ASTA FUNDING, INC., a Delaware corporation ("Asta Funding") and
ISRAEL DISCOUNT BANK OF NEW YORK, a New York banking corporation ("Lender").
A. The Borrower, Asta Funding and Lender are parties to an Amended and Restated Loan and Security
Agreement dated as of November 15, 2001 (the "Original Restated Agreement") pursuant to which Lender
established a $20,000,000 discretionary Line of Credit (the "Original Line of Credit") for the purpose of financing
the acquisition of portfolios of consumer loans and/or receivables, which Original Line of Credit was guaranteed
by the Original Guarantors and secured by certain assets of the Borrower and the Original Guarantors. As of the
date of this Agreement the outstanding principal obligations of the Borrower under the Original Line of Credit are
$0.00 (the "Existing Debt").
B. The Borrower and Asta Funding have requested that Lender amend and restate the Original Restated
Agreement and Original Line of Credit so as to have available a revolving line of credit on the terms and
conditions set forth herein, in an amount not to exceed $25,000,000 at any one time outstanding, but in no event
shall the outstanding Advances (including, any Advance then being requested) exceed the then effective
Borrowing Base (the "New Line of Credit"). This Agreement is an amendment and restatement of the terms and
conditions of the lending relationship between the parties as previously set forth in the Original Restated
Agreement and any amendments or supplements thereto,