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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 4

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935
or Section 30(h) of the Investment Company Act of 1940

o Check this box if no longer
subject to Section 16.
Form 4 or Form 5
obligations may continue.
See Instruction 1(b).
1. Name and Address of Reporting
Person* (Last, First, Middle)		 2. Issuer Name and Ticker or Trading Symbol 5. Relationship of Reporting Person(s) to Issuer
(Check All Applicable)
  Leu, Jeffery, D
  FirstCity Financial Corporation (FCFC)
  x  Director
o  10% Owner		 o  Officer (give title below)
o  Other (specify below)
  12700 Whitewater Drive
(Street)
 3. Date of Earliest Transaction
(MM/DD/YYYY)		   <%=formData.OfficerRelationshipDescription%><%=formData.OtherRelationshipDescription%>
    08/03/2006
6. Individual or Joint/Group Filing
(Check Applicable Line)
  Minnetonka, MN 55343-9439
(City)         (State)        (Zip)
 4. If Amendment, Date Original Filed
(MM/DD/YYYY)		  
x Form filed by One Reporting Person
o Form filed by More than One Reporting Person
   
     
                   
Reminder:   Report on a separate line for each class of securities beneficially owned directly or indirectly.
 
*   If the form is filed by more than one reporting person, see instruction 4(b)(v).
 

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security
(Instr. 3)		 2. Transaction
Date
(MM/DD/YYYY)		 2a. Deemed
Execution
Date, if any.
(MM/DD/YYYY)		 3. Transaction Code
(Instr. 8)		 4. Securities
Acquired (A) or
Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount
of Securities
Beneficially
Owned
Following
Reported
Transactions(s)
(Instr. 3 and 4)		 6. Ownership
Form:
Direct (D)
or
Indirect (I)
(Instr. 4)		 7. Nature of
Indirect
Beneficial
Ownership
(Instr. 4)
              Code V  Equity Swap   Amount (A)
or
(D)		 Price            

Page 2


Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
  (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative
Security
(Instr. 3)		 2. Conversion or Exercise
Price of Derivative
Security		    3. Transaction
Date
(MM/DD/YYYY)		 3a. Deemed Execution
Date, if any
(MM/DD/YYYY)		 4. Transaction
Code
(Instr. 8)		 5. Number of
Derivative Securities
Acquired (A)
or
Disposed of (D)
(Instr. 3, 4 and 5)
                      Code V Equity
Swap		   Amount (A)/(D)
  Option to Aquire Common Stock    $9.84    08/03/2006        A    No    5000  A 

Page 3
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned - Continued
(e.g., puts, calls, warrants, options, convertible securities)
6. Date Exercisable and
Expiration Date
(MM/DD/YYYY)		 7. Title and Amount
of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative
Security
(Instr. 5)		 9. Number of Derivative
Securities Beneficially Owned
Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of
Derivative Security:
Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of
Indirect
Beneficial
Ownership
(Instr. 4)
  Date
Exercisable		 Expiration
Date		   Title Amount or
Number of
Shares		                        
  08/03/2006  08/03/2016    Common Stock  5000    $0.00    0 (1)   D     

Explanation of Responses:

(1) An option for 5,000 shares of the Company's common stock was granted to Cargill Financial Services, Inc("Cargill")for their representation on the Company’s Board of Directors through Jeffrey Leu. Mr. Leu is an officer of Cargill and disclaims beneficial ownership of such option.

Remarks:

Richard J. Vander Woude
Attorney-in-fact for Jeffrey D. Leu 		  8/7/2006
**Signature of Reporting Person		  
Date

**   Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
 
 

Page 4

LIMITED POWER OF ATTORNEY FOR
SECTION 16 REPORTING OBLIGATIONS


    Know all by these presents, that the undersigned hereby constitutes and appoints each of Richard J. Vander Woude, Joe S. Greak and Suzy W. Taylor, signing singly, the undersigned's true and lawful attorney-in-fact to:

(1)    execute for and on behalf of the undersigned, in the undersigned's capacity as an officer and/or director of FirstCity Financial Corporation, a Delaware corporation (the "Company"), Forms 3, 4, and 5 in accordance with Section 16(a) of the Securities Exchange Act of 1934 and the rules thereunder;

(2)    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute any such Form 3, 4, or 5 and timely file such form with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

(3)    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

The undersigned hereby grants to each such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorneys-in-fact, in serving in such capacity at the request of the undersigned, are not assuming, nor is the Company assuming, any of the undersigned's responsibilities to comply with Section 16 of the Securities Exchange Act of 1934.

This Power of Attorney shall remain in full force and effect until the undersigned is no longer required to file Forms 3, 4, and 5 with respect to the undersigned's holdings of and transactions in securities issued by the Company, unless earlier revoked by the undersigned in a signed writing delivered to the foregoing attorneys-in-fact.

    IN WITNESS WHEREOF, the undersigned has caused this Power of Attorney to be executed as of this 13th day of May, 2004.




                                                
                                         /s/ Jeffrey D. Leu
                                         Jeffrey D. Leu