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the Property was vacant, condemned and without utility services. The Property remains vacant,
condemned, and without utility services. See the Denton Declaration at paragraph 29.
Debtor has no source of revenue related to the Property other than through the sale
contemplated under the Order Approving Sale. FourLeaf has borne all the costs of the
receivership. To date, FourLeaf has advanced significant funds to the Receiver to cover costs
relating to the receivership and the Property. Additionally, there are tens of thousands of dollars
of accrued fees for the Receiver鈥檚 counsel, Receiver鈥檚 fees, security services, etc. which will be
paid by FourLeaf. See the Denton Declaration at paragraph 31. The sale of the Property is the
only remedy available to FourLeaf through which some of these fees and expenses can be offset.
As such, FourLeaf and the Receiver should be excused from the provisions of 11 U.S.C. 搂543(a)
and (b).
E. The Receiver Has General Liability Coverage In Place
Prior to the appointment of the Receiver the Debtor failed and refused to provide proof of
insurance on the Property to FourLeaf. This refusal is a default under FourLeaf鈥檚 loan and was
one of the reasons for seeking a Receiver. The Receivership Order authorizes the Receiver to
procure property insurance. Such insurance would be directly for the benefit of FourLeaf.
The Receiver consulted with a commercial insurance broker with respect to property
coverage for the Property and determined that because the Property had been condemned, the
improvements at the Property were (and are) uninsurable. Nevertheless, the Receiver procured
general liability coverage for the Property. See the Denton Declaration at paragraph 34.
Case 25-23251-MEH Doc 18-20 Filed 12/22/25 Entered 12/22/25 20:08:18 Desc
Memorandum of Law Page 16 of 20
ANN public copy | complete ECF 18-20 | combined source PDF 471/478
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