Form 15 - 8.3.2011


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 15

CERTIFICATE AND NOTICE OF TERMINATION OF REGISTRATION UNDER SECTION 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR SUSPENSION OF DUTY TO FILE REPORTS UNDER SECTIONS 13 AND 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

Commission File Number 001-13533


NovaStar Financial, Inc.
(Exact name of registrant as specified in its charter)

2114 Central, Suite 600 Kansas City, MO 64108
(816) 237-7000
(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

8.9% Series C Cumulative Redeemable Preferred Stock, $0.01 par value
(Title of each class of securities covered by this Form)

Common Stock, $0.01 par value
(Titles of all other classes of securities for which a duty to file reports under section 13(a) or 15(d) remains)

Please place an X in the box(es) to designate the appropriate rule provision(s) relied upon to terminate or suspend the duty to file reports:

Rule 12g-4(a)(1)
x
Rule 12g-4(a)(2)
o
Rule 12h-3(b)(1)(i)
x
Rule 12h-3(b)(1)(ii)
o
Rule 15d-6
o


Approximate number of holders of record as of the certification or notice date:        None        

Pursuant to the requirements of the Securities Exchange Act of 1934, NovaStar Financial, Inc. has caused this certification/notice to be signed on its behalf by the undersigned duly authorized person.


Date:     August 4, 2011         By:    /s/ Rodney E. Schwatken                
Rodney E. Schwatken, Chief Financial Officer