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(c) Failure to provide required financial reporting – Debtor has failed to provide certain
financial reporting information, specifically income tax returns of the Debtor and a guarantor for
the 2022 and 2023 tax years, as required by §3.1(o) of the Deed Of Trust;
(d) Debtor’s transfer of ownership interest – Upon information and belief, the Debtor has
transferred the ownership of interest(s) in the Debtor, in violation of §2.10 of the Deed Of Trust;
and
(e) Debtor’s commission of waste and nonoperation – Pursuant to paragraph 2.11 of the
Deed Of Trust Debtor agreed that it would not “permit any wasted to the Property”, “maintain
the Property in good operating order”, and that the improvements to the Property “shall not be …
permitted to deteriorate”.
In light of Debtor’s numerous defaults, the deteriorated condition of the Property, and to
protect, secure, and preserve the Property, on October 16, 2024, FourLeaf filed a Verified
Complaint (Petition For Appointment Of Receiver) in the Virginia Circuit Court (Case No.
CL2405300T-00), bearing the caption Bethpage Federal Credit Union v. Seaview Apartments
LLC, a Virginia limited liability company (“Verified Complaint”). Bethpage Federal Credit
Union is now known as FourLeaf Federal Credit Union.
D. Appointment of Receiver
On February 11, 2025, the Virginia Circuit Court found that grounds existed to appoint a
special Receiver for the Property, and it entered an Order Appointing Special Receiver
(“Receivership Order”). The Receivership Order grants, at paragraph 3(h), the Receiver
authority, with prior approval of the Court and FourLeaf, to sell the Property and other collateral
and execute on the owner’s behalf any necessary documents in connection with any sale.
Case 25-23251-MEH Doc 18-20 Filed 12/22/25 Entered 12/22/25 20:08:18 Desc
Memorandum of Law Page 7 of 20
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