<SEC-DOCUMENT>0001096906-21-000252.txt : 20210205
<SEC-HEADER>0001096906-21-000252.hdr.sgml : 20210205
<ACCEPTANCE-DATETIME>20210204185600
ACCESSION NUMBER:		0001096906-21-000252
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20210201
ITEM INFORMATION:		Entry into a Material Definitive Agreement
FILED AS OF DATE:		20210205
DATE AS OF CHANGE:		20210204

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SECURITY NATIONAL FINANCIAL CORP
		CENTRAL INDEX KEY:			0000318673
		STANDARD INDUSTRIAL CLASSIFICATION:	FINANCE SERVICES [6199]
		IRS NUMBER:				870345941
		STATE OF INCORPORATION:			UT
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-09341
		FILM NUMBER:		21592703

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 57220
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84157
		BUSINESS PHONE:		8012641060

	MAIL ADDRESS:	
		STREET 1:		PO BOX 57220
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84157

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SNL FINANCIAL CORP
		DATE OF NAME CHANGE:	19910401
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>snfc_8k.htm
<DESCRIPTION>SECURITY NATIONAL 8-K
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<DIV style=margin-left:72pt;width:475.2pt><P style='font:12pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:12pt Times New Roman;margin:0'><B>UNITED STATES</B></P>
<P style='font:12pt Times New Roman;margin:0'><KBD style='position:absolute;text-align:center;font:12pt Times New Roman;width:496.8pt'><B>SECURITIES AND EXCHANGE COMMISSION</B></KBD>&nbsp;</P>
<P style='font:12pt Times New Roman;margin:0'><KBD style='position:absolute;text-align:center;font:12pt Times New Roman;width:496.8pt'>Washington, D.C. &nbsp;20549</KBD>&nbsp;</P>
<P style='font:12pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:12pt Times New Roman;margin:0'>__________________</P>
<P align=center style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:14pt Times New Roman;margin:0'><B>FORM 8-K</B></P>
<P align=center style='font:12pt Times New Roman;margin:0'>__________________</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;text-align:center;font:10pt Times New Roman;width:496.8pt'><B>CURRENT REPORT</B></KBD>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;text-align:center;font:10pt Times New Roman;width:496.8pt'><B>PURSUANT TO SECTION 13 OR 15(d) OF THE</B></KBD>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;text-align:center;font:10pt Times New Roman;width:496.8pt'><B>SECURITIES EXCHANGE ACT OF 1934</B></KBD>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>Date of Report (Date of earliest event reported): February 1, 2021</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:12pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'><B>SECURITY NATIONAL FINANCIAL CORPORATION</B></FONT></P>
<P align=center style='font:8pt Times New Roman;margin:0'>(Exact name of registrant as specified in this Charter)</P>
<P style='font:8pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:8pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE style=border-collapse:collapse;width:486pt><TR style=height:12.75pt><TD valign=middle style='width:166.5pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>Utah</P>
</TD><TD valign=middle style=width:13.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:121.5pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>000-09341</P>
</TD><TD valign=bottom style=width:22.5pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style='width:162pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>87-0345941</P>
</TD></TR>
<TR style=height:12.75pt><TD valign=top style=width:166.5pt><P align=center style='font:8pt Times New Roman;margin:0;color:#000000'>(State or other jurisdiction of incorporation)</P>
</TD><TD valign=top style=width:13.5pt><P align=center style='font:8pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=top style=width:121.5pt><P align=center style='font:8pt Times New Roman;margin:0;color:#000000'>(Commission File Number)</P>
</TD><TD valign=top style=width:22.5pt><P align=center style='font:8pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=top style=width:162pt><P align=center style='font:8pt Times New Roman;margin:0;color:#000000'>(IRS Employer Identification No.)</P>
</TD></TR>
</TABLE>
<P align=center style='font:8pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:8pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:8pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE align=center style=border-collapse:collapse;width:361.1pt><TR style=height:9.2pt><TD valign=middle style='width:279.4pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>121 West Election Road, Suite 100, Draper, Utah</P>
</TD><TD valign=bottom style=width:15.35pt><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style='width:66.35pt;border-bottom:0.5pt solid #000000'><P align=center style='font:10pt Times New Roman;margin:0;color:#000000'>84020</P>
</TD></TR>
<TR style=height:9.2pt><TD valign=middle style=width:279.4pt><P align=center style='font:8pt Times New Roman;margin:0;color:#000000'>(Address of principal executive offices)</P>
</TD><TD valign=bottom style=width:15.35pt><P align=center style='font:8pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:66.35pt><P align=center style='font:8pt Times New Roman;margin:0;color:#000000'>(Zip Code)</P>
</TD></TR>
</TABLE>
<P style='font:8pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:8pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'>Registrant's Telephone Number, Including Area Code: &nbsp;<FONT style='border-bottom:1px solid #000000'>(801) 264-1060</FONT></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><FONT style='border-bottom:1px solid #000000'>Does Not Apply</FONT></P>
<P align=center style='font:8pt Times New Roman;margin:0'>(Former name or former address, if changed since last report)</P>
<P style='font:8pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:8pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<FONT style='border-bottom:1px solid #000000'>see</FONT> General Instruction A.2 below):</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'>[ &nbsp;]</KBD><KBD style=margin-left:27pt></KBD>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'>[ &nbsp;]</KBD><KBD style=margin-left:27pt></KBD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'>[ &nbsp;]</KBD><KBD style=margin-left:27pt></KBD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style='position:absolute;font:10pt Times New Roman;margin-left:0pt'>[ &nbsp;]</KBD><KBD style=margin-left:27pt></KBD>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167;240.12b-2 of this chapter).</P>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:12pt Times New Roman;margin:0'>-<FONT style=font-size:10pt>1-</FONT></P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P style=line-height:0;margin:0></P>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P style='font:10pt Times New Roman;margin:0'>Emerging growth company &nbsp;&nbsp;[ &nbsp;&nbsp;]</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. &nbsp;&nbsp;&nbsp;&nbsp;[ &nbsp;&nbsp;]</P>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:10pt Times New Roman;margin:0'>-2-</P>
<HR style='page-break-after:always;border:0;height:3pt;background-color:#909090;margin:8pt 0'><P style=line-height:0;margin:0></P>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P style='font:10pt Times New Roman;margin:0'><B>Item 1.01. &nbsp;<I>Entry into a Material Definitive Agreement</I></B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>Settlement Agreement and Mutual Release with Lehman Brothers Holdings Inc.</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>From 2004 to early 2008, SecurityNational Mortgage Company (&#8220;SecurityNational Mortgage&#8221;), a wholly owned subsidiary of Security National Financial Corporation (&#8220;Registrant&#8221;), originated &#8220;limited documentation&#8221; or &#8220;reduced documentation&#8221; loans which were sold to certain affiliates of Lehman Brothers Holdings Inc. (&#8220;Lehman Holdings&#8221;).  Certain of these loans became the subject of disputes between SecurityNational Mortgage and Lehman Holdings and certain Lehman Holdings affiliates. Lehman Holdings filed a Petition for Relief under Chapter 11 of the United States Bankruptcy Code in 2008. In May of 2011, SecurityNational Mortgage filed a complaint in U.S. District Court against certain Lehman Holdings affiliates. &nbsp;In June of 2011, Lehman Holdings filed a complaint in Federal District Court against SecurityNational Mortgage, both of which were later resolved.  In 2016, certain other pending loan disputes between SecurityNational Mortgage and Lehman Holdings became the subject of an unsuccessful, non-binding alternate dispute resolution mediation proceeding. &nbsp;</P>
<P align=justify style='font:12pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0;text-indent:36pt'>Thereafter, in 2016, <A name=_Hlk63256142 />Lehman Holdings filed an adversary proceeding complaint against approximately 150 mortgage loan originators, including <A name=_Hlk63256233 />SecurityNational Mortgage, in the U.S. Bankruptcy Court of the Southern District of New York, which included seeking damages relating to the alleged obligations of the defendants under indemnification provisions of alleged agreements, in amounts to be determined at trial, including interest, attorneys&#8217; fees and costs incurred by Lehman Holdings in enforcing the obligations of the defendants. The complaint was later amended with the latest amended complaint filed against SecurityNational Mortgage on December 27, 2016, seeking damages to be determined at trial, including interest, attorneys&#8217; fees and costs. This complaint involved approximately 135 mortgage loans, there being millions of dollars allegedly in dispute. These claims against SecurityNational Mortgage were asserted as a result of Lehman Holdings&#8217; earlier settlements with the Federal National Mortgage Association (&#8220;Fannie Mae&#8221;) and the Federal Home Loan Corporation (&#8220;Freddie Mac&#8221;).</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><KBD style=margin-left:36pt></KBD>In 2018, Lehman Holdings filed a separate adversary proceeding complaint against SecurityNational Mortgage. This adversary proceeding allegedly involved approximately 577 mortgage loans relative to private securitization trusts (&#8220;RMBS Loans&#8221;) and millions of dollars in damages. Thereafter, Lehman Holdings made a filing that effectively reduced the number of RMBS Loans to 248. This proceeding was in addition to the above-referenced proceeding involving the Fannie Mae and Freddie Mac mortgage loans. As with the above-referenced proceeding, damages were sought including interest, costs, and attorneys&#8217; fees.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><KBD style=margin-left:36pt></KBD>SecurityNational Mortgage, as well as other defendants, have been involved in written discovery, and production of documents relative to the cases, and the filing of motions. The deposition phase of the cases was yet to begin, as well as the later expert witness phase. Those phases would require substantial expenditures of legal fees and costs.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><KBD style=margin-left:36pt></KBD> On February 1, 2021, SecurityNational Mortgage executed a settlement agreement with Lehman Holdings in relation to these two adversary proceedings wherein all mortgage loan related claims were resolved, thereby ending all liabilities asserted by Lehman Holdings and conclusively ending all proceedings between SecurityNational Mortgage and Lehman Holdings. In accordance with Generally Accepted Accounting Principles (GAAP), the full amount of SecurityNational Mortgage&#8217;s settlement payment will be accounted for in the Registrant&#8217;s 2020 yearend financial reports.&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=center style='font:10pt Times New Roman;margin:0'><B>SIGNATURES</B></P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P align=justify style='font:10pt Times New Roman;margin:0'><KBD style=margin-left:36pt></KBD>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.&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style=margin-left:198pt></KBD><B>SECURITY NATIONAL FINANCIAL CORPORATION</B>&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'><KBD style=margin-left:279pt></KBD>(Registrant)&nbsp;</P>
<P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
<TABLE style=border-collapse:collapse;width:450pt><TR style=height:15pt><TD valign=middle style=width:177.95pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Date: February 4, 2021</P>
</TD><TD valign=middle style=width:12.05pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=middle style=width:25.25pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>By:</P>
</TD><TD valign=middle style='width:234.75pt;border-bottom:0.5pt solid #000000'><P style='font:10pt Times New Roman;margin:0;color:#000000'>/s/ Scott M. Quist</P>
</TD></TR>
<TR style=height:15pt><TD valign=bottom style=width:177.95pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:12.05pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:25.25pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:234.75pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>Scott M. Quist, Chairman, President and</P>
</TD></TR>
<TR style=height:15pt><TD valign=bottom style=width:177.95pt><P style='font:10pt Times New Roman;margin:0;color:#000000'>&nbsp;</P>
</TD><TD valign=bottom style=width:12.05pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=bottom style=width:25.25pt><P style='font:10pt Times New Roman;margin:0'>&nbsp;</P>
</TD><TD valign=middle style=width:234.75pt><P style='font:10pt Times New Roman;margin:0;color:#000000'> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer</P>
</TD></TR>
</TABLE>
<HR style='border:0;height:0;width:0;margin:14pt 0 0 0'><P align=center style='font:12pt Times New Roman;margin:0'>-<FONT style=font-size:10pt>3-</FONT></P>
<P style='font:7pt Times New Roman;margin:0'>&nbsp;</P>
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