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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 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 25, 2005


                               REGAN HOLDING CORP.
             (Exact name of registrant as specified in its charter)

           California                   000-19704              68-0211359
(State or other jurisdiction of        (Commission          (I.R.S. Employer
         incorporation)                File Number)        Identification No.)

                               2090 Marina Avenue
                           Petaluma, California 94954
                    (Address of principal executive offices)

                                 (707) 778-8638
              (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 (see General Instruction A.2.):

[_]  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   communications  pursuant  to  Rule  13e-4(c)  under  the
     Exchange Act (17 CFR 240.13e-4(c))

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Item 1.01 Entry into a Material Definitive Agreement.

On  July  25,  2005,   Regan  Holding  Corp.  (the  "Seller")   entered  into  a
sale/leaseback  agreement (the  "Agreement")  with Basin Street  Properties (the
"Buyer").  Pursuant  to the terms of the  Agreement,  the  Seller  will sell its
office  building in Petaluma,  California  to the Buyer for a purchase  price of
$13.1 million.  Concurrently with the sale of the building, the Seller and Buyer
will enter into a ten year lease  agreement,  whereby the Seller will lease back
(i)  71,612  square  feet for a period  not to exceed  eighteen  months and (ii)
between  35,612 and 51,612 square feet for the remainder of the lease term.  The
monthly  base rent will be $1.30 per square foot and will  increase  annually by
three  percent  during the term of the lease,  in addition to monthly  taxes and
operating  expenses.  Pursuant to the terms of the lease, the Seller is required
to initiate a standby letter of credit in the amount of $1.0 million, naming the
Buyer as the  beneficiary.  The Buyer will be allowed to draw upon the letter of
credit to satisfy  the  Seller's  obligations  under the  Agreement,  subject to
certain terms and conditions in the Agreement.  Additionally,  the amount of the
letter of credit  will be  reduced  if the Seller  meets  certain  profitability
criteria as specified in the Agreement. The closing of the sale/leaseback of the
property is subject to the Buyer  obtaining a  financing  commitment,  within 45
days  from  the  date of the  Agreement,  from a  lender  with  terms  that  are
acceptable  to the Buyer.  The closing is also subject to a 30-day due diligence
period, during which time the Buyer will inspect certain documents pertaining to
the  property.  The Buyer has the right,  at any time  during the due  diligence
period,  to disapprove of the due diligence  materials or other matters relating
to the property and terminate the Agreement.

Item 2.03 Creation of a Direct  Financial  Obligation or an Obligation  under an
Off-Balance Sheet Arrangement of a Registrant.

See Item 1.01 above.

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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.


                                  REGAN HOLDING CORP.
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                                  (Registrant)


Date: July 29, 2005               /s/ R. Preston Pitts
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                                  R. Preston Pitts
                                  President, Chief Financial Officer
                                  and Chief Operating Officer