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): ~~July~~September 1625, 2009

NOVA BIOSOURCE FUELS, INC.

(Exact name of registrant as specified in its charter)

Nevada		000-32531		91-2028450
(State or other Jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification Number)

109 North Post Oak Lane, Suite 422, Houston, Texas 77024

(Address of Principal Executive Offices)

713-869-6682

(Registrant’s telephone number, including area code)

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 (see General Instruction A.2. below):

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 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

On July 16, 2009, pursuant to an order (the "DIP Order") granted on June 24, 2009 by the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"), Nova Biosource Fuels, Inc. (the "Company") and certain of its subsidiaries to entered into a Debtor-in-Possession Credit Agreement by and among (i) Nova Biofuels Senceca, LLC, the Company, Biosource America, Nova Biosource Technologies, LLC, Nova Biofuels Clinton County, ~~LLC~~Asset ~~and Nova Biofuels Trade Group, LLC, as borrowers~~Purchase (the "Borrowers"), (ii) Nova Holding Seneca, LLC, NBF Operations, LLC, Nova Holding Trade Group, LLC, and Nova Holding Clinton County, LLC, as guarantors (collectively, the "Guarantors"), (iii) West LB AG, New York Branch, as agent (the "DIP Agent"), (iv) Sterling Bank, as accounts bank, and (v) the lenders party thereto (the "DIP Credit Agreement~~").~~

~~The~~On ~~DIP~~September ~~Credit~~25, ~~Agreement~~2009, ~~provides~~the United States Bankruptcy Court for athe District of Delaware entered an order ~~senior~~authorizing the sale of assets by Nova Biofuels Clinton County, ~~secured~~LLC, ~~post-petition~~a ~~financing~~Delaware limited liability company and a subsidiary of upNova toBiosource $2Fuels,~~030~~ Inc. (the “Clinton County Seller”),~~000~~ to ~~finance~~Clinton County Bio Energy, LLC, an Iowa limited liability company (the “Clinton County Purchaser”), pursuant to the terms of an ~~ordinary~~Asset ~~costs~~Purchase Agreement, dated as of July 31, 2009 (the ~~Borrowers'~~“Clinton ~~operations~~County Asset Purchase Agreement”). Pursuant to the Clinton County Asset Purchase Agreement, ~~finance~~the aClinton ~~strategic~~County ~~asset~~Purchaser agreed to purchase substantially all of ~~disposition~~the ~~process~~Clinton County Seller’s assets, ~~make~~excluding ~~payroll~~certain specified assets, ~~conduct~~used in the ~~marketing~~manufacturing of biodiesel and ~~potential~~related ~~sale~~co-products out of the Clinton County ~~their~~Seller’s ~~assets~~production ~~and~~facilities, ~~satisfy~~including, ~~other~~without ~~working~~limitation, ~~capital~~the ~~operational~~biodiesel ~~needs. These~~refinery ~~borrowings~~in ~~are~~Clinton onCounty, Iowa, for a ~~term~~cash ~~basis~~purchase price of $1,200,000, plus certain pre-paid expenses and ~~borrowings~~taxes. The ~~repaid~~transaction is subject to the satisfaction or waiver of the closing condition that the representations and ~~prepaid~~warranties byof the ~~Borrowers~~parties ~~may~~must ~~not~~be true and correct in all material respects. Under the terms of the Clinton County Asset Purchase Agreement, the transaction is expected to close no later than October 6, 2009. There can be ~~reborrowed~~no assurances that the condition to closing will be met or waived or that the closing will occur as expected.

~~For~~Seneca ~~each~~Asset ~~request of funds, the~~Purchase ~~Borrowers may elect to receive either a Eurodollar Loan or a Base Rate Loan (as those terms are defined in the DIP Credit~~ Agreement). Outstanding borrowings under Eurodollar Loans accrue interest at a per annum rate equal to ten percent (10%) plus the greater of (a) four percent (4%) and (b) the rate obtained by dividing (x) the LIBOR rate for the one-month period since such funds were made available to the Borrowers, and each successive month thereafter (each, an "Interest Period"), by (y) a percentage equal to (i) 100% minus (ii) the reserve percentage, for any day during any Interest Period, in effect on that day under regulations issued by the Board of Governors of the Federal Reserve System for determining the maximum reserve requirement with respect to eurocurrency funding. In general, interest accrued on any Eurodollar Loan is due on the earlier of the last day of each Interest Period or the Maturity Date (as defined in the DIP Credit Agreement). Outstanding borrowings under Base Rate Loans accrue interest at rate equal to ten percent (10%) per annum plus, for any day, a fluctuating rate per annum equal to the greater of (a) the rate per annum equal to the weighted average of the rates on the overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day, plus one-half of one percent (0.50%) and (b) the rate of interest in effect for such day as publicly announced by the DIP Agent as its prime rate. In general, interest accrued on any Base Rate Loan is due on the earlier of the final day of the month, beginning in the month in which the Base Rate Loan is made, or the Maturity Date.

~~The~~On ~~principal~~September ~~amount~~29, of2009, ~~outstanding~~the United ~~loans~~States ~~under~~Bankruptcy ~~the~~Court ~~DIP~~for ~~Credit~~the ~~Agreement,~~District ~~together~~of ~~with~~Delaware ~~any~~entered ~~unpaid~~an ~~accrued interest~~order ~~thereon,~~authorizing ~~are~~the ~~payable~~sale inof ~~full~~assets ~~upon~~by ~~the~~Nova ~~Maturity~~Biofuels ~~Date. Subject~~Seneca, ~~to certain~~LLC ~~terms~~ and ~~conditions~~Nova inBiosource Technologies, ~~the DIP Credit Agreement~~LLC, aseach ~~modified~~a byDelaware ~~certain stipulations~~limited ~~between~~liability ~~Borrowers~~company and ~~the~~a ~~DIP~~subsidiary ~~Agent~~of Nova ~~amending~~Biosource ~~the~~Fuels, ~~DIP~~Inc. ~~Credit Agreement~~(either ~~and~~or ~~effective~~both, ~~pursuant to~~ the ~~DIP~~“Seneca ~~Order~~Sellers”), ~~the~~to ~~Maturity~~REG Seneca, ~~Date~~LLC, ~~will~~an ~~be either~~Iowa ~~October~~limited 2liability company, ~~2009~~or ifits adesignee ~~specified~~(the ~~sale~~“Seneca Purchaser”), ~~order~~pursuant isto ~~entered~~the byterms ~~the~~of ~~Bankruptcy Court~~an byAsset ~~September~~Purchase 14Agreement, ~~2009~~dated oras of September 1423, 2009 if(the ~~such~~“Seneca ~~sale~~Asset ~~order~~Purchase ~~is not~~Agreement”). Pursuant ~~entered~~to by the ~~Bankruptcy~~Seneca ~~Court~~Asset byPurchase ~~such date~~Agreement, orthe ifSeneca ~~earlier,~~Purchaser ~~upon~~agreed ~~the~~to ~~occurrence~~acquire ofsubstantially ~~certain~~all ~~events~~of ~~specified in~~ the ~~DIP~~Seneca ~~Credit~~Sellers’ ~~Agreement~~assets, ~~and~~excluding ~~the~~certain ~~DIP~~specified ~~Order. All~~assets, ~~obligations~~used ~~under~~in ~~the~~manufacturing ~~DIP~~ASTM ~~Credit~~D6751 ~~Agreement~~quality ~~are unconditionally~~biodiesel ~~guaranteed~~and byrelated co-products ~~the~~out ~~Guarantors. In~~of ~~general,~~its ~~subject~~production ~~to the~~facilities ~~requirements~~in toSeneca, ~~pay~~Illinois, ~~certain~~including ~~professional~~all patents and ~~court~~intellectual ~~fees~~property asrights ~~specified~~to inNova’s ~~the DIP~~process ~~Credit~~technology, ~~Agreement~~ and ~~certain~~to assume ~~specified~~bank ~~permitted~~term ~~liens,~~debt ~~the~~of ~~obligations under~~approximately ~~the~~$36,250,000. The ~~DIP~~transaction is ~~Credit~~subject ~~Agreement~~to ~~are~~the ~~secured~~satisfaction byor ~~either~~waiver aof ~~first~~certain ~~priority, priming~~closing ~~security~~conditions. Under ~~interest~~the orterms aof ~~first~~the ~~priority~~Seneca ~~security~~Asset ~~interest~~Purchase onAgreement, the ~~substantially~~transaction ~~all~~is ~~of the~~expected ~~assets~~to ofclose ~~the~~no ~~Borrowers~~later ~~and~~than ~~the~~October ~~Guarantors~~15, 2009. ~~Additionally,~~There ~~the~~can ~~DIP Credit~~be ~~Agreement~~no ~~provides~~assurances ~~for~~that ~~certain~~the ~~financial~~conditions ~~and~~to ~~other~~closing ~~covenants, various~~will ~~representations~~be ~~and~~met ~~warranties,~~or ~~and~~waived ~~events~~or ~~of default~~ that ~~are~~the ~~customary~~closing ~~for transactions~~will ofoccur ~~this~~as ~~nature~~expected.

ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT

The information provided above in Item 1.01 of this Current Report on Form 8-K regarding the DIP Credit Agreement is incorporated by reference to this Item 2.03.

Signature

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.

	NOVA BIOSOURCE FUELS, INC.
	By:	/s/ Kenneth T. Hern
		Kenneth T. Hern
		Chairman, Chief Executive Officer and Chief Financial Officer
Date: July 21, 2009
Date: September 30, 2009

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