UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of ~~The~~the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): ~~July~~August 2320, 2010

Community Valley Bancorp

(Exact name of registrant as specified in its charter)

California		0-51678		68-0479553
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

1360 E. Lassen Avenue, Chico, California		95973
(Address of principal executive offices)		(Zip Code)

(530) 899-2344

(Registrant’s telephone number, including area code)

n/a

(Former name or former address, if changed since last report.)

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

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))

Item 1.~~01.~~03 ~~Entry~~– ~~Into~~Bankruptcy ~~Material~~or ~~Definitive Agreement~~Receivership.

~~Effective~~On ~~July~~August 2320, 2010, ~~the Company entered into an agreement with the Federal Reserve Bank of San Francisco. The agreement is equivalent to the Consent Order issued to~~ Butte Community Bank ~~effective~~(the ~~May 18~~“Bank”), ~~2010 and is routinely requested by~~ the ~~FRB~~principal ~~following the issuance of such an order relating to a~~operating ~~holding company’s~~ subsidiary ~~bank. The~~of ~~agreement,~~Community ~~among~~Valley ~~other requirements,~~Bancorp ~~provides that~~ (the “Company”), ~~will:~~was ~~provide~~closed ~~quarterly~~by ~~progress reports; take steps to ensure that~~ the ~~Bank complies with the Consent Order;~~ ~~seek~~California ~~regulatory~~Department ~~consent~~of toFinancial ~~pay cash dividends or to incur~~Institutions, ~~increase~~and ~~or guarantee any debt; secure prior approval for~~ the ~~appointment~~Federal ~~of any new~~Deposit ~~director~~Insurance orCorporation ~~senior~~(“FDIC”) ~~executive~~was ~~officer;~~appointed ~~submit annual cash flow projections; and submit for approval a capital plan to maintain sufficient capital on a consolidated basis. A full copy of the Written Agreement is attached~~ as an ~~exhibit~~receiver ~~to this report and incorporated herein by reference. The above description~~ of the ~~Written Agreement is qualified by reference to the full text of the Written Agreement filed herewith~~Bank.

~~Item~~As indicated 9in the FDIC press release dated August 20, 2010, subsequent to the closure, Rabobank, N.01A., ~~Exhibit~~CA assumed all of the deposits of the Bank, and purchased essentially all of the Bank’s assets in a transaction facilitated by the FDIC.

~~Exhibit~~On August 23, 2010, the 14 branch offices of the Bank reopened as branches of Rabobank, N. ~~The~~A.. ~~following~~Customers ~~exhibit~~who ishave ~~being~~questions ~~filed~~about the foregoing matters, or ~~herewith~~who would like more information about the closure of the Bank, can visit the FDIC’s Internet website located at http://www.fdic.gov/bank/individual/failed/1stpacific.html or call the FDIC toll-free at 1-866-674-8944.

Exhibit No.		Description
10.1		Written Agreement issued by the Federal Reserve Bank of San Francisco to Community Valley Bancorp entered into on July 23, 2010.

As a result of the FDIC being appointed receiver of the Bank, the Company has ceased virtually all business activity and operations (since the Bank was the Company’s only source of revenue) and the Company will be considering whether to file a petition in Bankruptcy Court.

Item 2.04 - Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

~~Signature~~In March 2010, the Company exercised its right to defer interest payments under certain junior subordinated debentures (the “Debentures”) with a total principal balance of $8.0 million, which it may do for up to 20 consecutive quarters. However, as a result of the appointment of the FDIC as receiver for the Bank, an event of default has occurred under the Debentures, and the entire outstanding balance plus accrued interest has become ipso facto immediately due and payable.

~~Pursuant~~Item to8.01 ~~the~~– ~~requirements of~~Other ~~the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized~~Events.

		Community Valley Bancorp
Date:	July 23, 2010	By:	/s/ John F. Coger
		John F. Coger
		President
		Chief Executive Officer

As of August 20, 2010: (i) the Company’s primary assets, excluding its investment in the Bank and its investment in Community Valley Bancorp Trust II, which investments are expected to be written off completely, consisted primarily of cash and cash equivalents of approximately $539,000 and an investment in Butte Community Insurance Agency, LLC and (ii) the Company’s principal liabilities are $8.0 million of principal and accrued interest on the Debentures issued to the Trust and $1.0 million for an ESOP loan obligation. As noted in Item 1.03 – Bankruptcy and Receivership, which is incorporated herein, the Company has ceased operations and will be considering whether to file a petition in Bankruptcy Court.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This Current Report on Form 8-K, including the exhibits hereto, may contain forward-looking statements that are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this Current Report on Form 8-K are not historical facts, do not constitute guarantees of future performance and are based on numerous assumptions which, while believed to be reasonable, may not prove to be accurate. These forward-looking statements include, but are not limited to, the effect of interest rate and currency exchange fluctuations; competition in the financial services market for both deposits and loans; the effect of regulatory and legislative action; regional and general economic conditions; and certain assumptions upon which such forward-looking statements are based. The forward-looking statements in this Current Report on Form 8-K do not constitute guarantees of future performance and involve a number of factors that could cause actual results to differ materially, including risks more fully described in Community Valley Bancorp’s previous SEC filings. Community Valley Bancorp assumes no obligation to update any forward-looking information contained in this Current Report or with respect to the announcements described herein.

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.

Signature

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		Community Valley Bancorp

Date:	August 20, 2010	By:	/s/ John F. Coger
		John F. Coger
		President
		Chief Executive Officer

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