United States of America v. Valley Capital Corporation

Filing 2

CONSENT ORDER OF RECEIVERSHIP re 1 Complaint filed by United States of America. Filed in the USDC Eastern District of Tennessee, Chattanooga Division, 1:10CV232. Signed by Chief United States District Judge Curtis C. Collier on September 8, 2010. (lw)

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U n i t e d States of America v. Valley Capital Corporation o' -"il'fi*oipftifrT'niil1'* s | s F P 5 ttll dlltH Doc. 2 IN THEuNrrEDsrATEsDrsrRrcr corJRT c'BlsR'i0fltlfl'N' : i " H, Ll FoRTrrE EASTERN DrSTffcT oJEfE C IIA T T AN O O G A DIVISION IJNITEN STATESO[' AMERICA, Pleintiff Y. i lii:,.;''i'''ii'liiiil' -*^* E't CLEi:r' *IEPT' ) 1 I uo" ] c * t * . , r . * i o o,tb-U/ VALLEY CAPITAL CORPORATION Defrndant i) ) - -A'"fre i't lu"- F5-lo-a 3 CONSENTORDER tT IS HEREBYORIIERED.AD.IUIIGEDAND DECRIEDT 1. Fursuant theprovisions l5 U.S.C.$ 687c, based uponthe to of and this oonsenofall parties, Coun shalllakeotclusivejurisdictionof Valley Capital t ("Valley") andall of its asscts properq,of whstcver kind andwhetevet and Corporation ("SBA") is hc,reby SmallBusiness Administmtion locatedandttreUnitedStatos , ("Reccivcr")of Valley to serve withoutbonduntil furtherorderof Recciver appoinred for ofmarshaling liquidatingin an and is this Corut. TheReceiver appointed thepurpose therefiomin ordetlymannet of Valley'snssets satisSingtheclaimsof oreditots all and by the orderofpnority asdetermined this Court 2. authorities, rightsandprivileges ThoReceiver shall hevoall powers, investnentadvisors, possessed theoffrccrs,dircctors, by Eustees, managets, herctofore stateandfederallaw,by thc Corporate andotheragents Valley underapplicable of Cherter,By-Laws, and ell othor goveming corpomtedocumcnts,in addition to all povucrs and authority ofa teceiver at equity, and all powers and authority confeted upon the 0 1 4 3 5 - 0 0 / 0 5 0 1 / J A YIt40_? .98 5 09/08/10Page1 of 6 C a s e1:10-cv-00232 Document Filed Dockets.Justia.com hy of Recciver theprovisions l5 U.S.C. 687cand28U.S.C'$ 754. Thecwrcnt $ ofValley archeteby directorr,trustecs,omployees, managers, agents and offrcers, or to shallhaw no authoritywilh respect Yallqy'soperations dismisscd,Suchpemons ganted by theReoeiver.The bc as8ets, excEpt the extentasrnayhercaftet expressly t0 all of Receiveshallassume conholthooperatron Valley andshallpreterve of its r and olaims, 3. tlan8gers, trustees, Thepastand/orprorentofficers,directors, agants, in actirrg theit placc' end attornoysacoountants, employees Valley,aswell asall those , of forthwithall books, arehercbyordered diretsd to tum overto the Reoeiver records, and to documenBaccounts all otherinstruments papus of a$drelating Vallcy andits , and nnd raal and whother or personal A assets all otherassets propcrtyofthe corporation, arrd within five (5) representative Valley,shallfurnisha written statement of duly authorieed valuoofall daysaftertheerrtryofthis Order,listingthc identity,locationandestimated of addmsses amorxrts claimrof all knolr,n and a.ssctof Valley asurll asthenames, s or conttol,custody pousrssion anyas$oft or of of havfurg crcditors Valley. AII porsons ptopcrtyof Valley arehetebydirectcd tum zuchassets ptopeftyovrto the to and Receiver. 4. to Thc Reccivetshallpromptlygive noticeofils appointnsnt all knouin partrcrs,truste$, managers, investment advisor$, agcnts, officer$,direttors,cmployees, ghareholdercrediton anddebtors Valley,astheReooiver s, of necsssary deems or to oflhe recciveithip. All pusonsandontitiesowing tho advisable effectuate operation anyobligations debt$ Valley shall,until fitthor ordcrcdby this Court,payall such or to 2 ot 13i-ot|/o5o)/JAY4B I i4o_l 09/0Bh Page of 6 0 C a s e1:10-cv-00232 Document Filed 2 5 for with and in obligations ancotdsnce fte tcnflsthereoftothe Receiver its receiPt such payments shallhavethc same forcoandeffeotaBif Valley rcceiwd suchpaymcrrts. 5. to at accounts is TheRescivor hercbyauthorized opensuchRccEiver'r crediton belulf of Valley,to utilieeSBA to banking otherfinanoialinstitutions oxtond or the personnelandto employsuchotherpersormel it maydeemnecessary offectuate , to as but aocou ants,ffid operatibfof therccoive*hip inoluding, not limitcd to, attomeys, l to fuirdsto compeffiate 6uch receivership and appraiscrs, is firther authorized cxpend rcasonable porsomelin suchomotmts uponsuchtmrsasthReceiver and shalldeem in ofsuch pcrsonncl.The light ofthe usualfeesandbilling prtcticesandptoccdures prior to thedisbursement of to fu Reccivcr not required obtainCourtapproval employed the Recciver fot expenses firndsfor paymcnts personnel to by or reoeivetship and to deems advanhgeous theorderlysdministratiotr opontionofthe thattheReceiver is the to receivuship. In addition,the Rocoiver authorized rcimburse SBA for tnvcl in and of oxpenseincurrcdby SBA petsonrrcl the establishbent administration the s The rcceivership. Receivet may,withoutfiuthcr orderofthis Court,transfsi, dispose anyarsct(includingwithoutlimitationanyclaim), or of compromise, otherwise othcrthanrealestatc. 6. Valley'spastond/orpre$nt officerr, directoft,employees, paf,tner3, and investment agents, slureholders, credrtots debtors, and mEflagers, advisofs, trrBtccs, (includingwithoutlimit{tion, Valley'bportfolioof small persons otherappropriate with Vsllry and/orValley's and doingbu*iness conccnrs fiaancialinstitutions business shallarrswer rrrderoarhnotheReceivet portfolio of smallbrrsiness conoems) all qucsflons with theFcdetdRulcsof whichthe Receiver mayputto themin compliancc 3 ol.tli_tryoiot/JAY-gl rl4o_z 5 C a s e 1:10-cv-00232 Document 10 Page3 of 6 Filed09/08i by a$ and therctoslull produce documents rcquired ihe any Civil Procedure, pursugflt or to the of Receiveregarding business Valley,or anyothermatterrelcvant theoperation r or of of administration therecelverehip the collection fundsdueto Valley, Inthe event to it ofthc aforcmentioned thatthc Receiver deems nooessary rcquircthe oppearonce the information, my otherdiscovery or conceming porsonsthc production dooumonts, , of to p'ropcrty, business of or operations Valloy,or anyothermatterrelcvant lllc assets, ot offinrds dueto Vallcy, of or operation administmtion thc tcceivership the collection law in receivership or rcquost(s) polnpl ss rfrr'i1h shallmakeits discovery the Receiver of Rr.rles Civil Procedure. wilh theFederal 7. or to Thepanies porpectivepartics anyandall civil legalFoccedings barkuptoyor located, but whorcvor including, not lirnitedto arbitationp'roceedings, ofany nature involvingthe defaultprocecdings, anyotheractions or actionE, fore+losuo and ofValley, includingsubsidiaries pamrerchips, Receivefor Valley,or anyasscls r the or whcrcvcrlocated, excluding insarrtproctcdirrg, involvingury of Valley's and agents, slrsneholdels for, or sucd companies, or maDflgement ofEctrs,dircctors, m8$sger8, whethcr sued as witlr, anyactiontakenby themwhile actingin suchcapacity, in connection are plaintiff, ddendant, thid-pafty plshtitr, tlkd-puty dcfendant, otherwise, urjoined or or from commoncing oontinuing suchlegalpoceoding fromtakingattyactionin or any with or cormection anysuchproceeding asset. of All civil legalprocoedings anynmure, includingbutnotlimitedto proceedings, fortclosue actions, default hnkuptcy F,rcceedings, artitmtionproceedings, of involvirg lhe Reoeiver Valley,or anyasses Valley, for or otheractionof sny nature thc and whercver located, excluding instant includbg srrbaidiaries partoerships, and 4 ol6s_ooi VJAY 4813,{o_z oto 5 C a s e1:10-cv-00232 Document Filed 09/08/10Page4 ofG officors, comPanies, m8nagement mansgeru, p'roceeding, anyof Vallds pastor Prcscnt or by witl" anyactiontaken themwhilc acting srrcd or in cnnnection for, dirtctors,or qgeflts, lhitd'partypldrrtitr' third"psty defcrdsnt" whether plaintffi dsfendanL as in suchcapacity, havinganyjuridiction thereofart in urd arc or otherwise, stayed theirentircty, all Courts any or ftom talcing permitting actionuntil fixther Ordcrofthis Court. enjoined 9. in as F'urthet, to a cause ofaction accrued accruing ftvor ofValley or statutE limitationis tolledduringthe periodin which of aggrnst thifd party,anyappliaable a of is against oflegElproFeeditrgsin effett asto thdtcause commeDct'IncDl thisinjunction aotion. I0. sgcnts, mfliagers, Valley andits pastand/orprcsenloflicers"dirpctors, or aotingin concert participating employees, othorpersons and invostnrcnadvisors, t from eitherdircctly or indiroctlytakingany thercwithbe,andtheyhercbyare,enjoined actions causing suchactionto bc takenwhichwoulddi*tipatetht ascts and/or any or includingbut in appointed this oause, propffty of Valley to the dctiment of theRooeiver records, whichwouldviolstoUreSmallBusiness of or to flot lfunited destruction corporate Act l5 Inve s tme n t of 1958, arnurdcd, U.S.C. 661et.sm.,or thercgulations as $ ("Regulations"), C.F.R. 107.1*egq. (1958). l3 promulgated thereunder, $ I l. to TheReceiver authorized bonowon behalfof Valley, fton the SBA, is of Cedifioats* Valley to issue Recoivet's to and up to $500,000.00 is authorized causc u"ill whichccrtificfites bosr oftho su$s bortowed, in Indebtedness theprincipalamounts pcr and at interest or about10percent arrnum wrll havea maftrity dateno laterthan lE of shall Cenificates Indcbtedness be affcr thedsteofissue. SaidReceivefs months to expenses theRoccivership. of dcemed headrninistmtive 5 ol{ls_oo/oso l /JAv-981340_2 5 Document C a s e1:10-cv-00232 09/08/10 Page5 of6 Filed 12. that This Courtdctermines adjudicates Valley is CapitallyImpaired and as in filed has andthereforc violatedthc Act andtheRegulations alleged theComplaint thc activitiesarecomplcteA Valley in the irstant action. After theforegoing against be that Receivemaysubmita reFortto this Courtrocofirrncnding Valley'slicense r rcvoked. ACKNOWLEDGED AND AGAEED TO BY VALLEY CAPITAL CORFONATION,AND TIIE SMALL BUSINES$ADMINISTNATION, TIIROUGH TIIEIR DULY ATITHORIZEDREPRE$ENTA.TIVESI VAILEY CAPITAL CORPORATION \ l,a By' Nsfiiol hrn- lru d., L^q.-r, h.,r. :*fl{(rLt T itle: t P R e s Ft'tr U,S .SMALLBUSINESS ADMINISTRATION By: -7Ea 4 O f f i c e of SBIC Liquidgtion L. C U R T I S GOLLIER JUDGE DTSTRICT STATES UNITED CHIEF, 6 or4!i-ooi r/tAY+tI i{o_l oSo 6 5 09/08/10Page of 6 C a s e1:10-cv-00232 Document Filed

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