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HomeMy WebLinkAbout962851SPECIAL WARRANTY DEED (IN LIEU OF FORECLOSURE) Donald F. King, Plan Administrator for the Bankruptcy Estate of North Shore Capital, Inc., a Virginia corporation, Grantor, for and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, grants' and conveys to Security National Bank of Omaha, a national banking association, Grantee, whose address is P. O. Box 31400, Omaha, NE 68131 -0400, the following described real estate, situated in Lincoln County, State of Wyoming (the "Property), to wit: Lot 44 of Alpine Meadows Subdivision, Lincoln County, Wyoming, according to that plat filed August 23, 2005 in the Office of the Lincoln County Clerk (the "Clerk's Office as Plat No. 206 -A. TOGETHER WITH all improvements and appurtenances thereunto belonging. SUBJECT to reservations and restrictions contained in the United States Patent Office and to easements and rights -of -way of record or in use. BUT IT IS HEREBY EXPRESSLY ACKNOWLEDGED AND AGREED that: A. This Special Warranty Deed and the conveyance being made hereby are being executed, delivered and accepted in lieu of foreclosure, and the same shall be interpreted and construed as an absolute conveyance to Grantee of all right, title and interest in the Property, including specifically, but without limitation, any equity or rights of redemption of Grantor therein or thereto. This conveyance is made pursuant to that certain Stipulation and Consent Order Authorizing Plan Administrator to Transfer Real Property by Deed in Lieu of Foreclosure entered January 5, 2012 in the United States Bankruptcy Court for the Eastern District of Virginia, Alexandria Division, a copy of which is attached hereto as Exhibit A and incorporated herein by this reference, which order authorized Grantor to convey the Property to Grantee. B. Grantor, for itself and its successors in interest, expressly limits the covenants of this Deed to those herein expressed, and excludes all covenants arising or to arise by statutory or other implication, and does hereby covenant that against all persons whomsoever lawfully claiming or to claim by, through or under Grantor and not otherwise, it will forever warrant and defend the Property. C. All of the liens and security interests (collectively, the "Liens that evidence or secure the payment of those certain promissory notes executed by Thomas G. Hotz, made payable to grantee, dated July 5, 2007, February 26, 2008, April 3, 2008 and September 30, 2008, including, without limitation, that certain Mortgage dated September 30, 2008, recorded November 7, 2008 in the Clerk's Office in Book 708, page 656, are not released or relinquished in any manner or respect whatsoever, and the Liens will not merge with the title acquired by Grantee hereunder, but shall remain valid and continuous and in full force and effect, unless and until so merged or released by written instrument executed by Grantee, or its successors and assigns, and recorded in the Clerk's Office, which instrument may be made as, if and when Grantee, or its successors and assigns, shall determine in the exercise of its sole discretion. RECEIVED 1/20/2012 at 2:21 PM RECEIVING 962851 4850- 4265- 52463 BOOK: 779 PAGE: 625 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY 00625 D. There shall not in any event be a merger of any of the Liens with the title or other interest of Grantee by virtue of this conveyance and the parties expressly provide that each such interest in the Lien on one hand and title on the other shall be and remain at all times separate and distinct. E. The title and other interest of Grantee in the Property conveyed hereunder shall not merge with the security interests of Grantee in the Property under the Liens and for purposes of priority as between (i) intervening or inferior liens, claims or encumbrances on or against the Property and (ii) the Liens, any and all rights of Grantee to exercise its remedies of foreclosure through a non judicial process or by judicial foreclosure of any of the Liens or any other remedies are expressly preserved hereby and for purposes of limitations and any other applicable time -bar defenses, the same are expressly extended as evidenced by this instrument. F. The priority of the Liens is intended to be and shall remain in full force and effect and nothing herein or in any instruments executed in connection herewith shall be construed to subordinate the priority of the Liens to any other liens or encumbrances whatsoever. WITNESS the hand of Grantor this /V day of January, 2012. Donald F. King, Plan Ad inistrator for the Bankruptcy Estate of North Shore Capital, Inc., a Virginia corporation COMMONWEALTH OF VIRGINIA AT LARGE, to wit: r1 The foregoing instrument was acknowledged before me in the City /County of Virginia this /9 day of January, 2012, by DONALD F. KING, Plan A ministrator for the Bankruptcy Estate of North Shore Capital, Inc. a Virginia corporation. p g My commission expires: 3/ r 610 43 Registration Number: a/ 85at 4850- 4265 5246.3 2 4 -46 y 41 otary Public vvv26 LESLEY BARBARA FINK Notary Public Commonwealth of Virginia 121844 My Commission Expires Jul 31, 2013 Case 10- 11564 -RGM Doc 110 Filed 01/05/12 Entered 01/05/12 08:48:54 Desc Main Document Page 1 of 6 In re: NORTH SHORE CAPITAL, INC., Debtor. 4826 -4922- 0365.2 UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF VIRGINIA Alexandria Division EXHIBIT I A Case No. 10-11564-RGM Chapter 11 STIPULATION AND CONSENT ORDER AUTHORIZING PLAN ADMINISTRATOR TO TRANSFER REAL PROPERTY BY DEED IN LIEU OF FORECLOSE This Stipulation and Consent Order "Consent Order is made by and between Donald F. King, Plan Administrator "Plan Administrator Security National Bank of Omaha "SNBO and Prince George's Industrial Properties, LLC "PGI by counsel, to authorize the Plan Administrator to transfer certain real property known as 605 Aster Loop, Alpine, Wyoming (the "Property") to SNBO by deed in lieu of foreclosure; and upon good and sufficient cause appearing herein, IT IS HEREBY FOUND THAT: 1. On March 3, 2010 (the "Petition Date North Shore Capital, Inc. (the "Debtor filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code. 2. On March 10, 2011, the Court entered an order approving PGI's Second Amended Plan of Liquidation (the "Plan 3. Pursuant to Article IV, Section 4.2, the Plan Administrator has, since March 25, 2011, been marketing the Property for sale. 4. To date, the Plan Administrator has been unable to sell the Property and costs and taxes continue to accrue on the Property. 00627 Case iu- 11564 -RGM Doc 110 Filed 01/05/12 Entered 01/05/12 08:48:54 Desc Main Document Page 2 of 6 5. Pursuant to Article III, Section 3.5, after deducting for the costs and expenses of sale, SNBO is entitled to all proceeds generated from the sale of the Property to the extent and priority of its lien. 6. As of the Petition Date, SNBO's lien on the Property was no less than $618,773.57 (the "C aim 7. Neither the Plan Administrator, SNBO nor PGI anticipate that SNBO's lien will be reduced by the proceeds generated by the sale of the real property located at 2126 Wyoming Avenue, NW, Washington, D.C. 8. Therefore, SNBO will maintain a Claim in the amount of $618,773.57, which Claim will remain secured by the Property. 9. Should the Property go to an auction, SNBO would be likely purchaser by virtue of its credit bid, which auction would not produce any proceeds for the estate. 10. After extensive investigation and marketing, the Trustee has determined that based on the marketability of the Property, the anticipated proceeds to be received from the Property and the costs and expenses associated with continuing to market the Property, it is in the best interests of the estate and in furtherance of the purpose of the Plan, to transfer the Property to SNBO by deed in lieu of foreclosure. 11. Given that SNBO would be entitled to receive all the proceeds from the sale of the Property, all necessary parties have consented to this Order. 12.On December 7, 2011, SNBO filed a Motion to Authorize Plan Administrator to Transfer Real Property by Deed in Lieu of Foreclosure [Docket No. 108] (the "Motion The deadline for objecting to the Motion was January 3, 2012. No objections or responses were filed. 4826 -4922- 0365.2 2 00628 Case 10-1 1 564 -RGM Doc 110 Filed 01/05/12 Entered 01/05/12 08:48:54 Desc Main Document Page 3 of 6 00629 UPON DUE CONSIDERATION OF SUCH FINDINGS, IT IS ORDERED, ADJUDGED AND DECREED THAT: A. Good cause has been shown for the entry of this Consent Order. B. Entry of this Consent Order is in the best interests of the Debtor's estate and its creditors. C. The Plan Administrator is hereby authorized to transfer the Property to SNBO immediately by deed in lieu of foreclosure. D. Let the Clerk issue copies of this Consent Order to the parties endorsing the Order. /s/ Robert G. Mayer Dated: Jan 4 2012 Alexandria, VA ROBERT G. MAYER United States Bankruptcy Judge 4826 -4922- 0365.2 Entered on Docket: January 5, 2012 3 Case iu -11564-RGM Doc 110 Filed 01 /U5 /i1 Entered 01/05/12 08:48:54 Desc Main Document Page 4 of 6 We ask for this: /s/ Donald F. King Donald F. King, Esquire, VSB No. 23125 Counsel for Plan Administrator ODIN FELDMAN PITTLEMAN PC 9302 Lee Highway, Suite 1100 Fairfax, Virginia 22031 Direct: 703 218 -2116 Fax: 703 218 -2160 E -Mail: donking @ofplaw.com 4826 -4922- 03652 /s/ Jeremy S. Williams KUTAK ROCK LLP Loc Pfeiffer (Va. Bar No. 39632) Jeremy S. Williams (Va. Bar No. 77469) 1111 East Main Street, Suite 800 Richmond, Virginia 23219 -3500 Telephone: (804) 343 -5210 Facsimile: (804) 783 -6192 Loc. Pfeiffer @KutakRock.com Jeremy.Williams @KutakRock.com Counsel for Security National Bank of Omaha /s/ Mary Kim DICKSTEIN SHAPIRO LLP Jeffrey Rhodes (Admitted Pro Hac Vice) Mary Kim (Va. Bar No. 65629) 1825 Eye Street NW Washington, D.C. 20006 -5403 Telephone: (202) 420 -3150 rhodesjadicksteinshapiro.com kimmadicksteinshapiro.com Counsel for Prince George's Industrial Properties, LLC 4 00630 Case 10- 11564 -RGM Doc 110 Filed 01/05/12 Entered 01/05/12 08:48:54 Desc Main Document Page 5 of 6 CERTIFICATION OF ENDORSEMENT Pursuant to the Local Rules of this Court, I hereby certify under penalty of perjury that all necessary parties have endorsed this Order. 4826 -4922- 0365.2 5 /s /Jeremy S. Williams 00631 Case Iu -11564-RGM Doc 110 Filed 01iubi11 Entered 01/05/12 08:48:54 Desc Main Document Page 6 of 6 PARTIES TO RECEIVE COPIES Counsel for Plan Administrator To be served electronically Counsel for Debtor To be served electronically 4826 -4922- 0365.2 6 00632