Filing 14

ORDER granting 12 Motion for Default Judgment; Plaintiff shall have judgment and recover from Defendant the sum of $175,339.79 and $15,994.00 is attorneys' fees and costs. Signed by Judge Renee Marie Bumb on 9/26/2017. (tf, )

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Sean C. Sheely Sean P. Barry HOLLAND & KMGHT LLP 3 1 West 52nd Street New York, New York 10019 Telephone: 212-513-3200 Telefax: 212-385-9010 Email: Attorneys for Plaint ‘if Producers Credit Corporation UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY PRODUCERS CREDIT CORPORATION, Civil Action No. 1 7-cv-02553-RMB-AMD Plaintiff, - against - MICHAEL A. FOOTE, Defendant. DEFAULT JUDGMENT Whereas, the Summons and Complaint of Plaintiff Producers Credit Corporation (“Plaintiff’) in this action have been duly served on defendant Michael A. Foote (“Defendant”). See Doc. # 8. Whereas, Defendant has failed to plead or otherwise defend this action within the time prescribed by the Federal Rules of Civil Procedure. See Does. # 11 at 2, 11-1 ¶2. Whereas, on or about June 26, 2017, the Clerk of Court entered a Clerk’s Entry of Default as to Michael A. Foote for failure to plead or otherwise defend. THIS MATTER having come before the Court upon the motion of Plaintiff Producers Credit Corporation (“Plaintiff’ or “Lender”) for default judgment against Defendant, and based on the Complaint and other papers filed in this action, It is onthis 2( dayof ORDERED that Plaintiffs Motion for Default Judgment is hereby GRANTED; and it is FURTHER ORDERED AND ADJUDGED that: 1. On Plaintiffs First and Second Claims, Plaintiff shall have judgment and recover from Defendant the sum of $175,339.79, which is comprised of principal and interest due and owing under the underlying loan agreements, plus -4—__—ifr interest from April 11, 2017 ath rae f4S6. 4—per day up to and until the date of entry ofjudgment,alLthsun—n&that— PlanE iff4hereEI c%S 2 bcj +he LuH 2. On Plaintiffs First and Second Claim, Plaintiff shall have judgment and recover from Defendant the sum of $15,994, which is comprised of Plaintiffs attorneys’ fees and costs associated with bringing this action. 3. This judgment will bear interest at the rate applicable to judgments issued by federal courts from the date of entry of judgment until the judgment is satisfied. 4. On Plaintiffs Third Claim, Robert D. Katz of Eisner Amper LLP (Katz and EisnerArnper referred to herein as “Receiver”) is hereby appointed by the Court to act as receiver of t4 epei&ena1 property pledged as security for repayment of the loans from Plaintiff to Defendant Michael A. Foote (“Defendant” or “Borrower”) 4ll-haveste&ereps; crops; 3 + aEnm-whth-m-crr-statr1cuffiTas, LIU All farm and business machinery, equipment and tools. (theErpertyi L ? wp nit- ( I r — 1 — h_ levet( b eud frH L’C Before performing its duties, the Receiver shall take a receiver’s oath 5. Li in a form acceptable to the Court. Unless agreed otherwise in writing by the Parties and filed under notice 6. with this Court, the Receiver shall obtain a surety bond in the amount of $10,000 to be provided by a corporate surety, guaranteeing the performance by him of the duties and obligation of the oath of receivership, the bond shall be payable to this Court in order to provide coverage to the Parties as their respective interests may appear for loss due to acts of all agents, servants, and/or employees of the Receiver, and the Bond shall be submitted to the Clerk of this Court for filing and approval by the Clerk of the Court within twenty (20) days from the date of this Order. Ic r Lid H t JL A 25 7çc1 J (f 4cc ‘ ) 4r ) - ( — ( cA Lt / . j jJ ‘ 7. The Receiver shall be and is hereby is empowered to take immediate possession and control of uJithe Property, 8. a (a’ 4 3 The Receiver shall prepare and file, within thirty (30) days from the date he takes possession ofthe Property, a fill and detailed inventory to the best of his knowledge, all the property and assets ofwhich he is hereby given custody. 9. The Receiver shall immediately take possession of the Property and shall retain custody of the Property until further order of this Court All persons or entities now or hereafter in possession of the Property, or any part thereof, or any other ofthe items entrusted to the Receiver shall forthwith surrender such possession to the Receiver and shall not interfere in any way with the Property or the Receiver’s efforts to safeguard or sell the Property. The Receiver is authorized to employ agents, servants and employees, and to otherwise contract as necessary, for the purpose of taking possession of; managing, and selling the Property, and carrying out the terms ofthis Order. 10. The Receiver shall use his best efforts to manage, preserve, protect and maintain the Property in a reasonable, prudent diligent and efficient manner, and may engage such employees or agents as are necessary or appropriate to accomplish the foregoing. Without limitation of this general duty, the Receiver shall have the following specific duties, rights and powers: 5 a. The Receiver shall not suffer, cause or permit: (i) any removal of any of the Property; or (ii) any waste of the Property except as necessary to cLlaid sell th ps-aiiether Property. b. Following entry of this Order and recovery of cash proceeds from the Property, the Receiver shall establish and maintain, at a bank or savings and loan association whose deposits are insured by the FDIC, a separate operating account (the “Operating Account”). The Receiver shall deposit all proceeds from the Property and all monies received in connection with the issuance of First Lien Certificates of Indebtedness provided for under Paragraph 8 of this Order into the Operating Account, from which the Receiver shall have the authority to withdraw funds for the purpose of managing, preserving, protecting, and maintaining the Receivership Property, and paying expenses pursuant to the terms of this Order. c. The Receiver is authorized to ia iideetaml sell the Property in a manner as the Receiver deems appropriate, to engage a broker or to serve as broker or as auctioneer for the sale of the Property, to advertise the sale of the Property and incur expenses the Receiver deems necessary and appropriate to market and sell the Property. Receiver 4i may otherwise sell cipan4-ether Property in the ordinary course of 6 ‘ u business. Unless otherwise ordered by this Court proceeds from the any sale of any of the Property shall be held by the Receiver in the Operating Account. 11. Without further order of this Court, the Receiver may, upon written agreement with Plaintiff; borrow up to $25,000 from Plaintiff for the performance of his duties hereunder, and may issue First Lien Certificates of Indebtedness in accordance with the provisions of this paragraph, the principal and interest evidenced by each Certificate shall be a first and prior lien and security interest upon the Property, and upon all monies generated by the Property. The lien of each Certificate shall be prior and superior to the rights, titles and interests in the Property of all parties to this action, as well as to the lien of Plaintiff (the “Security Documents”). The lien of each Certificate shall be prior and superior to the interest or lien or all judgment holders, mechanics’ lien claimants, stockholders and creditors of Defendant Nothing in this Order shall limit any right of Plaintiff to advance fluids under its Security Documents to the Receiver or other persons for the maintenance, preservation and/or protection of the Property, which advances shall be secured by Plaintiff’s existing liens. Nothing in this Order shall obligate Plaintiff to advance all or any part ofthe borrowings authorized herein. 12. The Receiver is directed to prepare on or before the 20th day of every third month, commencing on the 20th day ofthe third full calendar month beginning 7 after the date of this Order, so long as all or any portion of the Property shall remain in his possession, a full and complete report, under oath, setting forth all receipt and disbursements, cash flow, and reporting of all material changes in the Property during the period covered by the report. Each quarterly report shall include: (a) a summary of all monies collected in that month specifying the date, source, and amount of each payment received; (b) a monthly operating report showing all expenditures from each trust account for that month broken down into categories shown in the Budget; (c) a check listing showing all disbursements from each account for that month; and (d) copies of the most recent statements for the Operating Account. The Receiver is directed to serve a copy of each report on all counsel of record in this action. The first quarterly report shall include an accounting of receipts and disbursements related to the Property and a summary of disbursements to any insiders or affiliated persons or entities within the last two years that were not utilized for the operation or maintenance of the Property. 13. Nothing herein shall be deemed to authorize the Receiver to undertake any activity not specifically authorized in this Order, but if such activity is required or permitted to be undertaken pursuant to further order of this Court, the Receiver shall conduct such activity, in accordance with the terms of such further order. LApOVJ 91fiv O.(L +? (u+ $ i Lii ves. 15. Except as otherwise requested or authorized by the Receiver, Defendant Michael A. Foote, his agents, employees, and anyone else is hereby prohibited from interfering in any manner with the management of the Property by the Receiver. Defendant may, however, cooperate and assist the Receiver, if requested by the Receiver. jumewmaa4yac.tian or their duties an tuseetien%v) 9 tet to saiisW any1TNThy, anJ neiTher the Receiver norThis nysuuhbga. 17. The Receiver shall be entitled to collect a reasonable feejfor the time expended and services rendered in connection with this receivership as follows: thT The Receiver shall make application to this Court for payment of his fees. persons èxtent Such fees and costs may also be paid by Plaintiff and included under First Lien Certificates of Indebtedness under Paragraph 8 of this Order. If there is a timely written objection, then payment shall only be made upon Order of this Court after notice to all parties. 18. The Receiver is hereby empowered to employ independent legal counsel to furnish legal advice and provide representation to the Receiver for such purposes as may be necessary during the period of receivership. All the Receiver’s attorneys’ fees to be paid by the Receiver shall be by application to the Court Oder Alternatively, if appropriate, the Receiver may choose to use Plaintiffs counsel. 19. The Receiver may at any time upon notice to all parties, apply to this Court for further or other instructions or powers, whenever such instructions or additional powers shall be deemed necessary in order to enable him to perform properly and legally the duties of his Receivership and to maintain, operate, protect and preserve the Property. %QnEla-rtIr1ite4ater%han poif+hPropor+t&gne. Ii 22. This Court retains jurisdiction to resolve any controversy arising from or relating to the provisions of this Order. BY THE COURT: Hon. Renée Marie Bumb, U.S.D.J. 12

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