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27.
With a borrower who essentially abandoned the Property and allowed it to be
overrun with and damaged by squatters, rodents, insects, water, and mold, FourLeaf had no choice
but to seek appointment of a special receiver to take possession and control of its collateral.
28.
The Debtor was served with process and engaged local Virginia counsel to
represent it in the Receivership Proceeding. Through its Virginia counsel, the Debtor filed a
technical response to the Receivership Complaint which asserted no defenses to the appointment
of a receiver. My recollection is that at the hearing before the Virginia Circuit Court on the
appointment of a receiver, the Debtor offered little or no resistance to appointment, and it offered
no witnesses or evidence in opposition to the appointment.
FourLeaf has Paid all of the Costs of the Receivership
29.
At the time of the appointment of the Receiver, the Property was vacant,
condemned, and without utility services. It remains vacant, condemned, and without utility
services, and there is no source of revenue now with respect to the Property other than by a sale of
the Property.
30.
All of the costs of the receivership have been paid by FourLeaf because there is no
other source of payment.
31.
FourLeaf has advanced and will advance funds to the Receiver to cover all of the
costs relating to the receivership and the Property.
The Improvements at the Property are not Insurable
32.
Prior to the filing of the Receivership Proceeding the Debtor failed and refused to
provide proof of insurance on the Property demanded by FourLeaf prior to its seeking a
receivership, and that failure was alleged in the Receivership Complaint as a default under the loan
documents.
Case 25-23251-MEH Doc 18-13 Filed 12/22/25 Entered 12/22/25 20:08:18 Desc
Affidavit Page 6 of 16
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