UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(Dd) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): ~~August 4~~October 12, 2005

COMMUNITY BANCSHARES, INC.

(Exact Name of Registrant as Specified in Charter)

Delaware

0-16461

63-0868361

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

68149 Main Street, Blountsville, Alabama 35031

(Address of Principal Executive Offices, including Zip Code)

(205) 429-1000

(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:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communication 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 ~~August 4~~October 12, 2005, Community Bank, aand Community Funding Corporation, wholly owned ~~subsidiary~~subsidiaries of Community Bancshares, Inc. (the “Company”), entered into ana ~~Acquisition~~Real ~~Agreement~~Property Sales Contract (the “Agreement”) with ~~First~~Salvatore ~~National~~Cangiano ~~Bank,~~(the ~~Hamilton~~“Purchaser”), ~~Alabama,~~ pursuant to which ~~First~~the ~~National~~Purchaser ~~Bank~~ will purchase ~~acquire~~from ~~certain~~the ~~assets~~Company ~~and~~Heritage ~~assume~~Valley ~~certain liabilities~~Ranch, ofapproximately ~~Community~~900 ~~Bank’s~~acres ~~branch~~of ~~office~~property innear ~~Double Springs~~Blountsville, Alabama, (acquired by the ~~“Branch”)~~Company in connection with mortgage foreclosures in December 2004.

Under the terms of the Agreement ~~First~~the ~~National~~Purchaser ~~Bank~~ will ~~acquire~~pay ~~substantially~~to ~~all of~~ the ~~fixed~~Company ~~assets of the Branch, approximately~~ $2 10 million in ~~loans and~~cash, ~~approximately~~contingent ~~$7.9~~upon ~~million~~an ininspection ~~deposit~~of ~~liabilities.~~the Asproperty ~~consideration~~being ~~for~~satisfactory to the ~~purchase,~~Purchaser ~~First~~in ~~National~~the ~~Bank~~Purchaser’s ~~will~~sole ~~pay~~discretion. ~~the~~The ~~net~~Agreement ~~book~~provides ~~value~~for of the ~~fixed~~inspection ~~assets~~to ~~and~~be ~~loans~~completed aswithin ~~well~~30 asdays afollowing ~~two~~the ~~percent~~date ~~premium~~of on the ~~loans acquired~~ Agreement and athe ~~five~~closing ~~percent~~of ~~premium on~~ the ~~deposits~~sale ~~assumed~~to ~~based~~occur onwithin a15 ~~30-day~~days ~~average~~following the completion of the ~~account balances~~inspection.

~~The~~Neither ~~transaction,~~the ~~which~~Company isnor ~~subject~~the toCompany’s ~~regulatory~~officers, ~~approval~~directors, ~~and~~or other ~~conditions~~affiliates, isnor ~~anticipated~~those topersons’ berespective ~~completed~~affiliates inhad ~~the~~any ~~third~~prior ormaterial relationship ~~fourth~~with ~~quarter~~the ~~of 2005~~Purchaser.

Neither the Company nor the Company’s officers, directors, or other affiliates, nor those persons’ respective affiliates had any prior material relationship with First National Bank.

On August 4, 2005, the Company and Marion County Bancshares, parent company of First National Bank, issued a joint press release (the “Press Release”) announcing the proposed sale of the Branch. Pursuant to General Instruction F to Form 8-K, the Press Release is attached hereto as Exhibit 99.1 and is incorporated by reference.

Item 9.01. Financial Statements and Exhibits.

The following exhibits are filed herewith:

Exhibit No.		Description
99.1		Press Release, dated August 4, 2005, of Community Bancshares, Inc. and Marion County Bancshares

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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.

COMMUNITY BANCSHARES, INC.

/s/ Patrick M. Frawley

Patrick M. Frawley

Chairman, Chief Executive Officer and

President

Date: ~~August 5~~October 18, 2005

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INDEX TO EXHIBITS

Exhibit No.		Description
99.1		Press Release, dated August 4, 2005, of Community Bancshares, Inc. and Marion County Bancshares

Filing Compare · COMMUNITY BANCSHARES INC /DE/