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  <p align="left" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
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  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED STATES</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">SECURITIES AND EXCHANGE
  COMMISSION</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">Washington, D.C.&#160; 20549</font></b></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM&nbsp;8-K</font></b></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT
  REPORT</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">PURSUANT TO SECTION&nbsp;13 OR 15(d)&nbsp;OF
  THE</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">SECURITIES
  EXCHANGE ACT OF 1934</font></b></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Report (Date of
  earliest event reported):<b> May&nbsp;9, 2008</b></font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FIRSTCITY FINANCIAL CORPORATION</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant as specified in its charter)</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="center">
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delaware</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">033-19694</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">76-0243729</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State of
    incorporation)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission File
    No.)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in .7pt 0in .7pt;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(IRS Employer
    Identification No.)</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6400 Imperial Drive</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Waco, Texas 76712</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of principal executive offices) (Zip Code)</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registrant&#146;s
  telephone number, including area code:<b>&#160; (254) 761-2800</b></font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the
  appropriate box below if the Form&nbsp;8-K filing is intended to simultaneously
  satisfy the filing obligations of the registrant under any of the following
  provisions:</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;"> Written communications pursuant to Rule&nbsp;425
  under the Securities Act (17 CFR 230.425)</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;"> Soliciting material pursuant to Rule&nbsp;14a-12
  under the Exchange Act (17 CFR 240.14a-12)</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;"> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under
  the Exchange Act (17 CFR 240.14d-2(b))</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;"> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under
  the Exchange Act (17 CFR 240.13e-4(c))</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0in 0in 0in 0in;">
  
  <p align="left" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  </div>
  
  <p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="left" style="margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
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  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section&nbsp;1 - Registrant&#146;s Business and
  Operations</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
  1.01 Entry into a Material Definitive Agreement.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Amendment to FirstCity Revolving Credit Agreement.</font></b></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May&nbsp;9, 2008, FirstCity Financial Corporation (&#147;FirstCity&#148;) and
  Bank of Scotland, as agent for the lenders and as lender, entered into
  Amendment and Consent No.&nbsp;21 dated May&nbsp;8, 2008, which amended the
  Revolving Credit Agreement dated November&nbsp;12, 2004 (the &#147;Credit Agreement&#148;)
  to delete Section&nbsp;8.18(a)(ii)&nbsp;of the Credit Agreement which required
  FirstCity and all other members of the consolidated group to maintain, on a
  consolidated basis, a ratio of EBITDA to interest coverage of not less than
  1.50 to 1.00 for the four fiscal quarters then ended at the end of each fiscal
  quarter.&#160; The amendment also provided for
  FirstCity to pay </font><font size="2" style="font-size:10.0pt;">an extension fee in the amount of $35,000.</font><font size="2" style="font-size:10.0pt;"> The foregoing description of Amendment
  and Consent No.&nbsp;21 is qualified in its entirety by reference to the full
  text of Amendment and Consent No.&nbsp;21 attached hereto as Exhibit&nbsp;10.1
  and is incorporated herein by this reference.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment and
  Consent No.&nbsp;21 also provided for the waiver of any events of default by
  FirstCity related to the failure to satisfy the terms of Section&nbsp;8.18(a)(ii)&nbsp;of
  the Credit Agreement for the fiscal quarter ended March&nbsp;31, 2008.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Amendment
  to FirstCity Subordinated Delayed Draw Credit Agreement</font></b><font size="2" style="font-size:10.0pt;">.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May&nbsp;9, 2008, FirstCity Financial Corporation (&#147;FirstCity&#148;) and
  BoS(USA) Inc., as agent for the lenders and as lender, entered into Amendment
  and Consent No.&nbsp;8 dated May&nbsp;8, 2008, which amended the Subordinated
  Delayed Draw Credit Agreement dated September&nbsp;5, 2007 (the &#147;Subordinated
  Credit Agreement&#148;) to delete Section&nbsp;8.18(a)(ii)&nbsp;of the Subordinated
  Credit Agreement which required FirstCity and all other members of the
  consolidated group to maintain, on a consolidated basis, a ratio of EBITDA to
  interest coverage of not less than 1.50 to 1.00 for the four fiscal quarters
  then ended at the end of each fiscal quarter. The amendment also provided for
  FirstCity to pay </font><font size="2" style="font-size:10.0pt;">an extension fee in the amount of $25,000.</font><font size="2" style="font-size:10.0pt;"> The foregoing description of Amendment
  and Consent No.&nbsp;8 is qualified in its entirety by reference to the full
  text of Amendment and Consent No.&nbsp;8 attached hereto as Exhibit&nbsp;10.2
  and is incorporated herein by this reference.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment and
  Consent No.&nbsp;8 also provided for the waiver of any events of default by
  FirstCity related to the failure to satisfy the terms of Section&nbsp;8.18(a)(ii)&nbsp;of
  the Subordinated Credit Agreement for the fiscal quarter ended March&nbsp;31,
  2008.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Amendment to FH Partners LLC Revolving Credit
  Agreement.</font></b></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May&nbsp;9, 2008, FH Partners LLC, an indirect wholly-owned
  subsidiary of FirstCity, and Bank of Scotland, as agent for the lenders and as
  lender, entered into Amendment and Consent No.&nbsp;5 dated May&nbsp;8, 2008,
  which amended the Revolving Credit Agreement dated </font><font size="2" style="font-size:10.0pt;">August&nbsp;26, 2005</font><font size="2" style="font-size:10.0pt;"> (the &#147;FH Partners Credit Agreement&#148;) to
  delete Section&nbsp;8A(a)(ii)&nbsp;of the FH Partners Credit Agreement which
  required FirstCity and all other members of the consolidated group to maintain,
  on a consolidated basis, a ratio of EBITDA to interest coverage of not less
  than 1.50 to 1.00 for the four fiscal quarters then ended at the end of each
  fiscal quarter. The foregoing description of Amendment and Consent No.&nbsp;5
  is qualified in its entirety by reference to the full text of Amendment and
  Consent No.&nbsp;5 attached hereto as Exhibit&nbsp;10.3 and is incorporated
  herein by this reference.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment and
  Consent No.&nbsp;5 also provided for the waiver of any events of default by FH
  Partners LLC related to the failure to satisfy the terms of Section&nbsp;8A(a)(ii)&nbsp;of
  the FH Partners Credit Agreement for the fiscal quarter ended March&nbsp;31,
  2008.</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  
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  </div>
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  <div>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Nature of
  Material Relationship with Bank of Scotland.</font></b></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FirstCity has had
  a significant relationship with Bank of Scotland and The Governor and The
  Company of the Bank of Scotland (&#147;BoS-UK&#148;) and their subsidiaries since September&nbsp;1997.
  FirstCity and its wholly-owned subsidiaries have entered into loan agreements
  with Bank of Scotland, BoS(USA) Inc. and BoS-UK from time to time since 1997.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Since December&nbsp;2002,
  Bank of Scotland has provided to FirstCity and its subsidiaries a loan facility
  under a revolving credit loan facility consisting of (i)&nbsp;a revolving
  acquisition loan facility providing for a maximum principal balance of loans
  outstanding at any time of $45,000,000, and (ii)&nbsp;a revolving loan facility
  in the maximum principal amount of $5,000,000 for corporate purposes. This
  facility is secured by all of the assets of FirstCity and certain of its
  wholly-owned subsidiaries and is guaranteed by certain of the wholly-owned
  subsidiaries. The outstanding balances under this facility were converted to
  loans under the revolving credit agreement between FirstCity and the Bank of Scotland
  dated November&nbsp;12, 2004, which amended and restated the revolving loan
  facility and increased the loan facility to a maximum loan amount of
  $96,000,000. This revolving facility was most recently amended on August&nbsp;22,
  2007, to increase the maximum available commitment under the revolving credit
  facility from $175,000,000 to $225,000,000.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On August&nbsp;26,
  2005, FH Partners LLC and Bank of Scotland entered into the FH Partners Credit
  Agreement which provided a $50,000,000 revolving loan facility to be used to
  finance portfolio and asset purchases made by FH Partners LLC. The FH Partners
  Credit Agreement was amended on August&nbsp;22, 2007, to increase the maximum
  loan amount under the revolving loan facility to $100,000,000. The FH Partners
  Credit Agreement is secured by all of the assets of FH Partners LLC. The
  obligations of FH Partners LLC under the FH Partners Credit Agreement are
  guaranteed by FirstCity and the primary wholly-owned subsidiaries of FirstCity.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On September&nbsp;5,
  2007, FirstCity and BoS(USA),&nbsp;Inc. entered into the Subordinated Credit
  Agreement which provides a $25,000,000 loan facility to FirstCity. This
  $25,000,000 loan facility can be used to finance equity investments in new
  ventures approved by BoS(USA) Inc. to be funded under the facility, the senior
  debt and equity portion of portfolio and asset purchases, to provide for the
  issuance of letters of credit and for working capital loans. The Subordinated
  Credit Agreement is secured by all of the assets of FirstCity and certain of
  its wholly-owned subsidiaries and is guaranteed by certain of the wholly-owned
  subsidiaries.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In December&nbsp;2002,
  in connection with an exchange offer to the holders of FirstCity&#146;s New
  Preferred Stock, BoS-UK provided a non-recourse loan in the amount of
  $16,000,000 to FirstCity, which was used to pay the cash portion of the
  exchange offer to the holders of the New Preferred Stock, to pay expenses of
  the exchange offer and recapitalization, and to reduce FirstCity&#146;s debt to Bank
  of Scotland and BoS (USA) Inc. (the &#147;Senior Lenders&#148;). The $16,000,000 loan was
  secured by a 20% interest in Drive Financial Services LP (&#147;Drive&#148;) (64.51% of
  FirstCity&#146;s remaining 31% interest in Drive) and other assets of FirstCity
  Consumer Corporation (&#147;Consumer Corp.&#148;) as were necessary and only to the
  extent to allow BoS-UK to realize the security interest in the 20% interest in
  Drive. In connection with the $16,000,000 loan, FirstCity agreed to pay a
  contingent fee to BoS-UK equal to 20% of all amounts received by FirstCity and
  Consumer Corp. upon any sale of the 20% interest in Drive or any receipt of
  distributions from Drive related to the 20% ownership interest, once such
  payments exceeded $16,000,000 in the aggregate. The outstanding principal and
  accrued interest of $16,003,947 under the $16,000,000 loan was paid in full on November&nbsp;1,
  2004, in connection with the sale of the 31% beneficial interest in Drive.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On November&nbsp;1,
  2004, FirstCity and certain of its subsidiaries completed the sale of a 31%
  beneficial ownership interest in Drive and its general partner, Drive GP LLC,
  to IFA Drive GP Holdings LLC (&#147;IFA-GP&#148;), IFA Drive LP Holdings LLC (&#147;IFA-LP&#148;)
  and Drive Management LP (&#147;MG-LP&#148;) for a total purchase price of $108,478,300 in
  cash, which resulted in distributions and payments to FirstCity and Consumer
  Corp. in the aggregate amount of $86,800,000 in cash, from various sources. As
  is noted above, the proceeds of the sale were used in part to pay indebtedness
  owed to the Senior Lenders and BoS-UK.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  
  <div align="left" style="margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\105575\08-11690-2\task2940231\11690-2-bc.htm',USER='105575',CD='May 14 23:18 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">BoS(USA) Inc. has
  a warrant to purchase 425,000 shares of FirstCity&#146;s voting Common Stock at
  $2.3125 per share, which is subject to adjustment in the number of shares in
  the event of certain changes in the Common Stock, grants of options or issuance
  of convertible securities by FirstCity or certain corporate changes or
  reorganizations.&#160; The warrant will expire
  on August&nbsp;31, 2010, if it is not exercised prior to that date.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section&nbsp;9 &#151; Financial Statements and Exhibits</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
  9.01 Financial Statements and Exhibits.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Exhibits.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="99%" style="border-collapse:collapse;width:99.88%;">
   <tr>
    <td width="15%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:15.66%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.52%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font></p>
    </td>
    <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.82%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment and
    Consent No.&nbsp;21 dated May&nbsp;8, 2008 between FirstCity Financial
    Corporation and Bank of Scotland</font></p>
    </td>
   </tr>
   <tr>
    <td width="15%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:15.66%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.52%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.82%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="15%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:15.66%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.52%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font><font size="2" style="font-size:10.0pt;">.</font></p>
    </td>
    <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.82%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment and
    Consent No.&nbsp;8 dated May&nbsp;8, 2008 between FirstCity Financial
    Corporation and BoS (USA) Inc.</font></p>
    </td>
   </tr>
   <tr>
    <td width="15%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:15.66%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.52%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.82%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="15%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:15.66%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.52%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.3</font></p>
    </td>
    <td width="78%" valign="top" style="padding:0in .7pt 0in .7pt;width:78.82%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment and
    Consent No.&nbsp;5 dated May&nbsp;8, 2008 between FH Partners LLC and Bank of
    Scotland</font></p>
    </td>
   </tr>
  </table>
  
  <p align="left" style="margin:0in 0in .0001pt 99.0pt;text-align:left;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the
  requirements of the Securities Exchange Act of 1934, the registrant has duly
  caused this report to be signed on its behalf by the undersigned hereunto duly
  authorized.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.4%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.52%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.88%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.26%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.26%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="54%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:54.68%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FIRSTCITY FINANCIAL CORPORATION</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.4%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.52%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.88%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.26%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.26%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="54%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:54.68%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.4%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.52%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.88%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.26%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.26%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="27%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:27.34%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="27%" valign="top" style="padding:0in .7pt 0in .7pt;width:27.34%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.4%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: May&nbsp;14, 2008</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.52%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.88%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.26%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.26%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.0%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
    </td>
    <td width="50%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:50.66%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ J. Bryan Baker</font></p>
    </td>
   </tr>
   <tr>
    <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.4%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.52%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.88%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.26%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.26%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.0%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.66%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">J. Bryan Baker</font></p>
    </td>
   </tr>
   <tr>
    <td width="17%" valign="top" style="padding:0in .7pt 0in .7pt;width:17.4%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.52%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.88%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.26%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.26%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.0%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.66%;">
    <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Senior Vice President and Chief Financial Officer</font></p>
    </td>
   </tr>
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  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  
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  <p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT INDEX</font></u></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt 27.0pt;text-align:left;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Amendment and Consent No.&nbsp;21 dated May&nbsp;8,
  2008 between FirstCity Financial Corporation and Bank of Scotland</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt 27.0pt;text-align:left;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt 27.0pt;text-align:left;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font><font size="2" style="font-size:10.0pt;">.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Amendment
  and Consent No.&nbsp;8 dated May&nbsp;8, 2008 between FirstCity Financial
  Corporation and BoS (USA) Inc.</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt 27.0pt;text-align:left;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt 27.0pt;text-align:left;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.3</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Amendment and Consent No.&nbsp;5 dated May&nbsp;8,
  2008 between FH Partners LLC and Bank of Scotland</font></p>
  
  <p align="left" style="margin:0in 0in .0001pt 27.0pt;text-align:left;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
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  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>
  
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "a08-11690_28k.htm", "description": "CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES", "secsgml_size_bytes": 48104}]
metadata_filer: {"company-data": {"conformed-name": "FIRSTCITY FINANCIAL CORP", "cik": "0000828678", "assigned-sic": "6153", "irs-number": "760243729", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "033-19694", "film-number": "08831361"}, "business-address": {"street1": "6400 IMPERIAL DRIVE", "city": "WACO", "state": "TX", "zip": "76712", "phone": "2547511750"}, "mail-address": {"street1": "6400 IMPERIAL DRIVE", "city": "WACO", "state": "TX", "zip": "76712"}, "former-company": [{"former-conformed-name": "FIRST CITY BANCORPORATION OF TEXAS INC/", "date-changed": "19920703"}, {"former-conformed-name": "FIRST CITY ACQUISITION CORP", "date-changed": "19880523"}]}
text: UNITED STATES
  SECURITIES AND EXCHANGE
  COMMISSION
  Washington, D.C.  20549
  FORM 8-K
  CURRENT
  REPORT
  PURSUANT TO SECTION 13 OR 15(d) OF
  THE
  SECURITIES
  EXCHANGE ACT OF 1934
  Date of Report (Date of
  earliest event reported):
  May 9, 2008
  FIRSTCITY FINANCIAL CORPORATION
  (Exact name of registrant as specified in its charter)
  Delaware
  033-19694
  76-0243729
  (State of
    incorporation)
  (Commission File
    No.)
  (IRS Employer
    Identification No.)
  6400 Imperial Drive
  Waco, Texas 76712
  (Address of principal executive offices) (Zip Code)
  Registrant's
  telephone number, including area code:
  (254) 761-2800
  Check the
  appropriate box below if the Form 8-K filing is intended to simultaneously
  satisfy the filing obligations of the registrant under any of the following
  provisions:
  o
  Written communications pursuant to Rule 425
  under the Securities Act (17 CFR 230.425)
  o
  Soliciting material pursuant to Rule 14a-12
  under the Exchange Act (17 CFR 240.14a-12)
  o
  Pre-commencement communications pursuant to Rule 14d-2(b) under
  the Exchange Act (17 CFR 240.14d-2(b))
  o
  Pre-commencement communications pursuant to Rule 13e-4(c) under
  the Exchange Act (17 CFR 240.13e-4(c))
  Section 1 - Registrant's Business and
  Operations
  Item
  1.01 Entry into a Material Definitive Agreement.
  Amendment to FirstCity Revolving Credit Agreement.
  On May 9, 2008, FirstCity Financial Corporation ("FirstCity") and
  Bank of Scotland, as agent for the lenders and as lender, entered into
  Amendment and Consent No. 21 dated May 8, 2008, which amended the
  Revolving Credit Agreement dated November 12, 2004 (the "Credit Agreement")
  to delete Section 8.18(a)(ii) of the Credit Agreement which required
  FirstCity and all other members of the consolidated group to maintain, on a
  consolidated basis, a ratio of EBITDA to interest coverage of not less than
  1.50 to 1.00 for the four fiscal quarters then ended at the end of each fiscal
  quarter.  The amendment also provided for
  FirstCity to pay
  an extension fee in the amount of $35,000.
  The foregoing description of Amendment
  and Consent No. 21 is qualified in its entirety by reference to the full
  text of Amendment and Consent No. 21 attached hereto as Exhibit 10.1
  and is incorporated herein by this reference.
  Amendment and
  Consent No. 21 also provided for the waiver of any events of default by
  FirstCity related to the failure to satisfy the terms of Section 8.18(a)(ii) of
  the Credit Agreement for the fiscal quarter ended March 31, 2008.
  Amendment
  to FirstCity Subordinated Delayed Draw Credit Agreement
  .
  On May 9, 2008, FirstCity Financial Corporation ("FirstCity") and
  BoS(USA) Inc., as agent for the lenders and as lender, entered into Amendment
  and Consent No. 8 dated May 8, 2008, which amended the Subordinated
  Delayed Draw Credit Agreement dated September 5, 2007 (the "Subordinated
  Credit Agreement") to delete Section 8.18(a)(ii) of the Subordinated
  Credit Agreement which required FirstCity and all other members of the
  consolidated group to maintain, on a consolidated basis, a ratio of EBITDA to
  interest coverage of not less than 1.50 to 1.00 for the four fiscal quarters
  then ended at the end of each fiscal quarter. The amendment also provided for
  FirstCity to pay
  an extension fee in the amount of $25,000.
  The foregoing description of Amendment
  and Consent No. 8 is qualified in its entirety by reference to the full
  text of Amendment and Consent No. 8 attached hereto as Exhibit 10.2
  and is incorporated herein by this reference.
  Amendment and
  Consent No. 8 also provided for the waiver of any events of default by
  FirstCity related to the failure to satisfy the terms of Section 8.18(a)(ii) of
  the Subordinated Credit Agreement for the fiscal quarter ended March 31,
  2008.
  Amendment to FH Partners LLC Revolving Credit
  Agreement.
  On May 9, 2008, FH Partners LLC, an indirect wholly-owned
  subsidiary of FirstCity, and Bank of Scotland, as agent for the lenders and as
  lender, entered into Amendment and Consent No. 5 dated May 8, 2008,
  which amended the Revolving Credit Agreement dated
  August 26, 2005
  (the "FH Partners Credit Agreement") to
  delete Section 8A(a)(ii) of the FH Partners Credit Agreement which
  required FirstCity and all other members of the consolidated group to maintain,
  on a consolidated basis, a ratio of EBITDA to interest coverage of not less
  than 1.50 to 1.00 for the four fiscal quarters then ended at the end of each
  fiscal quarter. The foregoing description of Amendment and Consent No. 5
  is qualified in its entirety by reference to the full text of Amendment and
  Consent No. 5 attached hereto as Exhibit 10.3 and is incorporated
  herein by this reference.
  Amendment and
  Consent No. 5 also provided for the waiver of any events of default by FH
  Partners LLC related to the failure to satisfy the terms of Section 8A(a)(ii) of
  the FH Partners Credit Agreement for the fiscal quarter ended March 31,
  2008.
  2
  Nature of
  Material Relationship with Bank of Scotland.
  FirstCity has had
  a significant relationship with Bank of Scotland and The Governor and The
  Company of the Bank of Scotland ("BoS-UK") and their subsidiaries since September 1997.
  FirstCity and its wholly-owned subsidiaries have entered into loan agreements
  with Bank of Scotland, BoS(USA) Inc. and BoS-UK from time to time since 1997.
  Since December 2002,
  Bank of Scotland has provided to FirstCity and its subsidiaries a loan facility
  under a revolving credit loan facility consisting of (i) a revolving
  acquisition loan facility providing for a maximum principal balance of loans
  outstanding at any time of $45,000,000, and (ii) a revolving loan facility
  in the maximum principal amount of $5,000,000 for corporate purposes. This
  facility is secured by all of the assets of FirstCity and certain of its
  wholly-owned subsidiaries and is guaranteed by certain of the wholly-owned
  subsidiaries. The outstanding balances under this facility were converted to
  loans under the revolving credit agreement between FirstCity and the Bank of Scotland
  dated November 12, 2004, which amended and restated the revolving loan
  facility and increased the loan facility to a maximum loan amount of
  $96,000,000. This revolving facility was most recently amended on August 22,
  2007, to increase the maximum available commitment under the revolving credit
  facility from $175,000,000 to $225,000,000.
  On August 26,
  2005, FH Partners LLC and Bank of Scotland entered into the FH Partners Credit
  Agreement which provided a $50,000,000 revolving loan facility to be used to
  finance portfolio and asset purchases made by FH Partners LLC. The FH Partners
  Credit Agreement was amended on August 22, 2007, to increase the maximum
  loan amount under the revolving loan facility to $100,000,000. The FH Partners
  Credit Agreement is secured by all of the assets of FH Partners LLC. The
  obligations of FH Partners LLC under the FH Partners Credit Agreement are
  guaranteed by FirstCity and the primary wholly-owned subsidiaries of FirstCity.
  On September 5,
  2007, FirstCity and BoS(USA), Inc. entered into the Subordinated Credit
  Agreement which provides a $25,000,000 loan facility to FirstCity. This
  $25,000,000 loan facility can be used to finance equity investments in new
  ventures approved by BoS(USA) Inc. to be funded under the facility, the senior
  debt and equity portion of portfolio and asset purchases, to provide for the
  issuance of letters of credit and for working capital loans. The Subordinated
  Credit Agreement is secured by all of the assets of FirstCity and certain of
  its wholly-owned subsidiaries and is guaranteed by certain of the wholly-owned
  subsidiaries.
  In December 2002,
  in connection with an exchange offer to the holders of FirstCity's New
  Preferred Stock, BoS-UK provided a non-recourse loan in the amount of
  $16,000,000 to FirstCity, which was used to pay the cash portion of the
  exchange offer to the holders of the New Preferred Stock, to pay expenses of
  the exchange offer and recapitalization, and to reduce FirstCity's debt to Bank
  of Scotland and BoS (USA) Inc. (the "Senior Lenders"). The $16,000,000 loan was
  secured by a 20% interest in Drive Financial Services LP ("Drive") (64.51% of
  FirstCity's remaining 31% interest in Drive) and other assets of FirstCity
  Consumer Corporation ("Consumer Corp.") as were necessary and only to the
  extent to allow BoS-UK to realize the security interest in the 20% interest in
  Drive. In connection with the $16,000,000 loan, FirstCity agreed to pay a
  contingent fee to BoS-UK equal to 20% of all amounts received by FirstCity and
  Consumer Corp. upon any sale of the 20% interest in Drive or any receipt of
  distributions from Drive related to the 20% ownership interest, once such
  payments exceeded $16,000,000 in the aggregate. The outstanding principal and
  accrued interest of $16,003,947 under the $16,000,000 loan was paid in full on November 1,
  2004, in connection with the sale of the 31% beneficial interest in Drive.
  On November 1,
  2004, FirstCity and certain of its subsidiaries completed the sale of a 31%
  beneficial ownership interest in Drive and its general partner, Drive GP LLC,
  to IFA Drive GP Holdings LLC ("IFA-GP"), IFA Drive LP Holdings LLC ("IFA-LP")
  and Drive Management LP ("MG-LP") for a total purchase price of $108,478,300 in
  cash, which resulted in distributions and payments to FirstCity and Consumer
  Corp. in the aggregate amount of $86,800,000 in cash, from various sources. As
  is noted above, the proceeds of the sale were used in part to pay indebtedness
  owed to the Senior Lenders and BoS-UK.
  3
  BoS(USA) Inc. has
  a warrant to purchase 425,000 shares of FirstCity's voting Common Stock at
  $2.3125 per share, which is subject to adjustment in the number of shares in
  the event of certain changes in the Common Stock, grants of options or issuance
  of convertible securities by FirstCity or certain corporate changes or
  reorganizations.  The warrant will expire
  on August 31, 2010, if it is not exercised prior to that date.
  Section 9 — Financial Statements and Exhibits
  Item
  9.01 Financial Statements and Exhibits.
  (d)           Exhibits.
  10.1
  Amendment and
    Consent No. 21 dated May 8, 2008 between FirstCity Financial
    Corporation and Bank of Scotland
  10.2
  .
  Amendment and
    Consent No. 8 dated May 8, 2008 between FirstCity Financial
    Corporation and BoS (USA) Inc.
  10.3
  Amendment and
    Consent No. 5 dated May 8, 2008 between FH Partners LLC and Bank of
    Scotland
  SIGNATURES
  Pursuant to the
  requirements of the Securities Exchange Act of 1934, the registrant has duly
  caused this report to be signed on its behalf by the undersigned hereunto duly
  authorized.
  FIRSTCITY FINANCIAL CORPORATION
  Date: May 14, 2008
  By:
  /s/ J. Bryan Baker
  J. Bryan Baker
  Senior Vice President and Chief Financial Officer
  4
  EXHIBIT INDEX
  10.1
  Amendment and Consent No. 21 dated May 8,
  2008 between FirstCity Financial Corporation and Bank of Scotland
  10.2
  .
  Amendment
  and Consent No. 8 dated May 8, 2008 between FirstCity Financial
  Corporation and BoS (USA) Inc.
  10.3
  Amendment and Consent No. 5 dated May 8,
  2008 between FH Partners LLC and Bank of Scotland
  5