Escolar Documentos
Profissional Documentos
Cultura Documentos
1 BUCHALTER NEMER
A Professional Corporation
2 JEFFREY B. KIRSCHENBAUM (SEN: 152290) 2009JUN-3 AMII: 10
NEIL J. RUBENSTEIN (SBN: 77975)
3 CRAIG C.CHIANG (SEN: 209602) . L-f .,•
333 Market Street, 25th Floor "' ' • ?*J
4 San Francisco, CA 94105-2126
Telephone: (415) 227-0900
5 Facsimile: (415) 227-0770
Email: jkirschenbaum@buchalter.com
6 Email: cchiang@buchalter.com
1 Genshlea Chediak appeared for defendant Michal T. Sahlbach, an individual. The Court, having
2 reviewed the Memorandum of Points and Authorities and Declarations filed in support thereof by
3 plaintiff First Bank, a Missouri banking corporation, in its individual capacity and as
4 Administrative Agent pursuant to that certain Credit Agreement, dated as of March 30, 2006
8 Ex Pane Application, and Defendants' objections to the Declaration of Liz Van De Vanter, the
9 pleadings filed in diis action, and good cause appearing:
10 ORDER APPOINTING RECEIVER
11 IT IS HEREBY ORDERED that pending the hearing of this Order to Show Cause, Robb
12 Evans & Associates LLC (ihe "Receiver") shall be appointed as receiver for National Credit
13 Acceptance, Inc. ("NCA") NCA Financial, Inc. ("NCA Financial"), Columbia Credit Services,
14 Inc. ("Columbia Credit") and any affiliates, subsidiaries, divisions, or field operations
15 (collectively, with NCA, NCA Financial and Columbia Credit the "Receivership Companies"),
16 wherever located, with the full, usual, and customary power of an equity receiver, including, but
17 not limited to, the powers set forth herein. The Receiver shall be solely the agent of this Court in
18 acting as receiver under this Order, shall be accountable directly to this Court, and shall comply
19 with all Local Rules of this Court governing receivers.
20 IT IS FURTHER ORDERED that:
21 1. Receiver's Oath and Bond. Before performing its duties, the Receiver shall
22 execute a receiver's oath and file a bond with surety thereon, approved by this Court in the sum of
23 $10,000, conditioned upon the faithful performance of the Receiver's duties; the Court will hear
24 and decide the Receivership Companies' objection to the amount of the bond at die hearing of
25 this Order to Show Cause.
26 2. Plaintiffs Undertaking. Plaintiff shall file an undertaking in the amount of
27 $10,000, pursuant to California Code of Civil Procedure Section 566; the Court will hear and
28 decide the Receivership Companies' objection to die amount of the undertaking at the hearing on
BUCIIALTEK NUMtirt BN 368363£>v2 2
ft CM .iu»M-.p.AL Ci.»r..i««1|iif
HAN Fl4,tNLIMI>
ORDER APPOINTING RECEIVER EX PARTE AND RELATED ORDERS
Jun-02-09 03:45pn From-Buchaltar Nemer SF T-636 P.004/014 F-049
1 the performance of duties and responsibilities under the authority granted by this Order;
2 (e) Make payments and disbursements from the receivership estate that are
3 necessary or advisable for carrying out the directions of, or exercising the authority granted by,
4 this Order, including payments for daily operating expenses and for pre-receivership liabilities;
5 (f) Institute, compromise, adjust, appear in, intervene in, or become party to
6 such actions or proceedings in state, federal or foreign courts that the Receiver deems necessary
7 and advisable 10 preserve or recover the Receivership Property or that the Receiver deems
8 necessary and advisable to carry out the Receiver's mandate under this Order;
9 (g) Defend any or all actions or proceedings arising out of or related to the
10 Receivership Property, instituted in the past or in the future against the Receiver in his role as
11 Receiver, or against the Receivership Companies that the Receiver deems necessary and
12 advisable to preserve the Receivership Property or that the Receiver deems necessary and
13 advisable to carry out the Receiver's mandate under this Order;
14 (h) Remove current authorized signors for all bank accounts and substitute
15 members of the Receiver as authorized signors for all open and future bank accounts; and
16 (i) Maintain accurate records of all receipts and expenditures that it makes as
17 Receiver.
18 4. Delivery of Receivership Property. Immediately upon mailing or delivery of this
19 Order upon mem, or within such period as may be permitted by the Receiver, the Receivership
20 Companies, all defendants, and each of them, shall transfer or deliver possession, custody, and
21 control, and shall direct all third parties in possession thereof to transfer or deliver possession,
22 custody, and control, of the following, wherever located and in whichever mode maintained, to
23 the Receiver:
24 (a) All Receivership Property;
25 (b) All documents related to the Receivership Property, including, but not
26 limited to, books and records of debt accounts, all Financial and accounting records, leases,
27 licenses, permits, government approvals, bank records (including monthly statements, canceled
28 checks, records of wire transfers, and check registers) pertaining to all bank accounts currently
PN 3683639v2 4
SAN FKAMCi9c.il
ORDER APPOINTING RECEIVER EX PARTE AND RELATED ORDERS
Jun-02-09 03:45pm From-Buchalter Nemar SF T-636 P.006/014 F-049
1 used by the Receivership Companies, including First Bank Wire Acct. #XXX-XXX-1050, Bank
2 of America Wire Acci. XXXXX-X8247, First Bank Collection Deposit Acct. XXX-XXX-3074,
3 Bank of America Collection Deposit Acct. XXXXX-X8244, Bank of America Vendor Acct.
5 X2212, Bank of America Acct. XXXXX-X2680, Bank of America Acct. XXXXX-X9093, Bank
9 X8172, Bank of America Acct. XXXXX-X8178, Bank of the West account xxx-xx!016, Bank of
10 the West account Xxx-xxl008, Bank of the West account Xxx-xxl024, Bank of the West account
11 Xxx-xx0976, Bank of the West account Xxx-xx0984, Bank of the West account Xxx-xx0992;
13 (c) All keys, codes, and passwords necessary to gain or to secure access to any
14 Receivership Property, including, but not limited to, access to all business premises of the
17 (d) All codes, keys, books, records, documents, and information that may be
18 necessary or useful in connection with the use, operation or maintenance of any of the computer
19 systems, telephone systems, or property of the Receivership Companies, including, without
20 limitation, the Columbia Ultimate Business System ("CUBS") and the Peachtree Quantum
21 system.
22 5. In the event any person or entity fails to deliver or transfer any Receivership
23 Propeity, fails to identify the location of any Receivership Property, fails to identify any person
24 that may possess Receivership Property, or otherwise fails to comply with any provision of this
25 Order, the Receiver may file ex parte an Affidavit of Non-Compliance regarding the failure.
26 Upon filing of the affidavit, the Court may issue an order to show cause on shortened time re
27 turnover of said alleged Receivership Property to the person or entity accused of failing to deliver
28 or transfer alleged Receivership Property. Upon a finding of non-compliance after notice and
BuCl-IAL'IfiKNEMBR BN 3683639v2 5
SAN fBiMNfis™
ORDER APPOINTING RECEIVER £X PARTE ANT> RELATED ORDERS
Jun-02-09 03:45pm From-Buchaltar Nemer SF T-636 P.007/014 F-049
1 opponunity to be heard, the Court may issue, without additional process or demand, Writs of
2 Possession or Sequestration or other equitable writs requested by the Receiver. The writs shall
3 authorize and direct any sheriff or deputy sheriff of any county, or iiny other federal or state law
4 enforcement officer, to seize the Receivership Property, including documents, or other thing and
6 6. Receivership Fees and Costs. The Receiver may charge as interim fees its
7 standard hourly billing rate, which are currently $360 per hour for Mr, Robb Evans, $210 to $275
8 per hour for Other members of the firm, and $60 to $210 per hour for in-house CPAs, plus
9 reimbursement of costs for the Receiver's services. The Receiver may not increase the hourly
10 rates without prior approval of the Court. The Receiver is authorized to employ the services of
11 accountants, attorneys, computer consultants, property managers, and other professionals in
12 connection with its duties herein and to pay for those services in the amount of the normal fees
13 charged by those professionals.
14 7. Inventory. Within thirty (30) days after qualification hereunder, the Receiver shall
15 file an inventory of all of the Receivership Property of which it has taken possession pursuant to
16 this Order.
17 8. Statements. The Receiver shall prepare and serve monthly statements reflecting
18 the Receiver's fees and administrative expenses, including fees and costs of accountants and
19 attorneys and other professionals authorized by die Court, incurred for each monthly period in the
20 operation and administration of the receivership estate. Upon service of each statement, the
21 Receiver may disburse from receivership estate funds, if any, the amount of each statement.
22 Notwithstanding periodic payment of fees and expenses, all fees and expenses shall be submitted
23 to the Court for its approval and confirmation, in the form of either a properly noticed interim
24 request for fees, a stipulation of all parties, or in the Receiver's Final Account and Report.
25 9. Bank Accounts. The Receiver is empowered to establish bank accounts for the
26 deposit of monies and funds collected and received in connection with the receivership estate, at
27 federally insured banking institutions or savings associations which are not parties to this case.
28 Monies coming into the possession of the Receiver and not expended for any purposes herein
cHALTPit NEMI-K BN 3683fi39v2 £
A l>nilipn|n**i Cnil t'^CA I '"^
SAN hi/iNCItiC"
ORDER APPOINTING RECEIVER EXPARTE AND RELATED ORDERS
Jun-02-0 03:45pm From-Buchalter Nemer SF T-636 P.008/014 F-049
16. Transfer of Funds. Upon presentation of a copy of this Order, all banks, savings
and loan associations, credit unions, depository institutions, finance companies, commercial
lending companies, credit card processing agents or agents providing electronic funds transfer
services or automated dealing house processing, brokerage houses, escrow agents, money market
or mutual funds, title companies, commodity futures merchants, commodity trading companies,
precious metal dealers, trustees, or other financial institutions or depositories of any kind, shall
cooperate with all reasonable requests of the Receiver specifically relating to implementation of
this Order, including removing and replacing authorized signers, transferring funds at its direction
and producing records related to Receivership Property.
10 17. Delivery of Revenues. The Receivership Companies, on receipt of a copy of this
11 Order, shall deliver to the Receiver immediate possession of all revenues and income generated
12 from the businesses of the Receivership Companies. This delivery to the Receiver shall be
13 completed within forty-eight (48) hours of receipt of the above-described documents.
14 18. Plaintiffs Notice to Receivej. Plaintiff shall promptly notify the Receiver in
15 writing of the names, addresses, and telephone numbers of all parties who appear in the action
16 and their counsel. The parties to this action shall give notice to the Receiver and of all events that
17 affect the receivership, including all court proceedings in this action.
18 19. Bankruptcy - Plaintiff's Duty to Give Notice. If a defendant files a bankruptcy
19 case during the receivership, Plaintiff shall give notice of the bankruptcy case to the Court, to all
20 parties, and to the Receiver by the close of the next business day after the day on which Plaintiff
21 receives notice of the bankruptcy filing.
22 20. Bankruptcy - Receiver's Duties. If die Receiver receives notice that a bankruptcy
23 has been filed and part of the bankruptcy estate includes property that is the subject of this order,
24 the Receiver shall have the following duties:
25 (a) The Receiver shall immediately contact the party who obtained the
26 appointment of the Receiver and determine whether that party intends to move in the bankruptcy
27 court for an order for (1) relief from the automatic stay, and (2) relief from the Receiver's
28 obligation to turn over the property (1 1 U.S.C. § 543).
EN 3683G39v2 8
(b) If the party who obtained the receivership intends to seek relief
2 immediately from both the automatic stay and the Receiver's obligation to turn over the property,
3 the Receiver may remain in possession and preserve the property pending the ruling on those
4 motions (11 U.S.C. § 543(a)). The Receiver's authority to preserve the property shall be limited
5 as follows:
6 (i) The Receiver may continue to collect rents and other income;
7 (ii) The Receiver may make only those disbursements necessary to
8 preserve and protect the property;
9 (iii) The Receiver shall not execute any new leases or other long-term
10 contracts; and
11 (iv) The Receiver shall do nothing that would effect a material change
12 in the circumstances of the Receivership Property.
]3 (c) If the party who obtained the receivership fails to file a motion within 15
14 court days after its receipt of notice of the bankruptcy filing, the Receiver shall immediately turn
15 over the Receivership Property to comply with 11 United States Code section 543.
16 (d) The Receiver may petition the Court to retain legal counsel to assist the
17 Receiver with issues arising out of the bankruptcy proceedings that affect the receivership.
18 21. Receiver Certificates. The Receiver may issue Receivership Certificates in
19 increments of at least $5,000 bearing interest at eight percent (8%) per annum for up to $100,000
20 to any person or parties. All funds loaned to the Receiver pursuant to such Receivership
21 Certificate^) shall be deemed to be a lien of first priority which shall be repaid prior to all other
22 encumbrances and claims, other than costs of administration.
23 TEMPORARY RESTRAINING ORDER
24 IT IS FURTHER ORDERED that:
25 22. Pending further Order of this Court, NCA, NCA Financial, Columbia Credit,
26 Sahlbach and its officers, directors, agents, partners, property managers and employees, and all
27 other persons acting under, in concert with, or for them who have actual or constructive
28 knowledge of this Order, and their agents and employees shall not in any manner, directly or
DUCI-lALTCRNCMRP liN 3683639v2 9
indirectly:
(a) Commit or permit any waste of ihe Receivership Property or any pan
3 thereof, or suffer or commit or permit any act on the Receivership Property or any part thereof in
4 violation of law, or remove, transfer, encumber or otherwise dispose of any of the property or of
7 Receiver's duties under this Order or the Receiver's possession of and operation or management
27 show-how that may be necessary or useful in connection with the use, operation or maintenance
28 of any of the computer systems, telephone systems, or intellectual property of the Receivership
BUCl-lALTORNBMER BN 36S3639v2 10
1 Companies, including, without limitation, the Columbia Ultimate Business System (CUBS) and
3 (c) Advising all persons who owe money to the Receivership Companies that
4 all debts should be paid directly to the Receiver, if and when so directed by the Receiver.
5 24. The Receivership Companies, and their officers, agents, directors, servants,
7 successors, and assigns, and all other persons or entities in active concert or participation with
8 them, who receive actual notice of this Order by personal service or otherwise, whether acting
9 directly or through any trust, corporation, subsidiary, division, or other device, or any of them, are
10 hereby restrained and enjoined from directly or indirectly:
II (a) Transacting any of the business of the Receivership Companies that in any
12 way relates or pertains to the Receivership Property;
13 (b) Destroying, secreting, defacing, transferring, or otherwise altering or
14 disposing of any document of the Receivership Companies, including, but not limited to, books,
15 records, accounts, writings, drawings, graphs, charts, photographs, audio and video recordings,
16 computer records, and other data compilations, electronically-stored records, or any other records
17 of any kind or nature;
18 (c) Transferring, receiving, altering, selling, encumbering, pledging,
19 assigning, liquidating, or otherwise disposing of any Receivership Property owned, controlled, or
20 in the possession or custody of, or in which an interest is held or claimed by, the Receiver;
21 (d) Excusing debts owed to the Receivership Companies;
22 (e) Failing to notify the Receiver of any Receivership Property, including
23 accounts, whether or not held in the name of NCA or any other Receivership Company, or by any
24 person or entity, or failing to provide any assistance or information requested by the Receiver in
25 connection with obtaining possession, custody, or control of such Receivership Property;
26 (f) Doing any act or refraining from any act whatsoever to interfere with the
27 Receiver's taking custody, control, possession, or managing of Receivership Property; or to
28 harass or interfere with the Receiver in any way; or to interfere in any manner with the exclusive
T*UCHAUTF,R BN 3683639v2 11
ft iTki>l>PI>k«rit*AI C.\
SAN FuANC
ORDER APPOINTING RECEIVER EXPARTE AND RELATED ORDERS
Jun-02-0 03:46pn From-Buchaltar Nemar SF T-636 P.013/014 F-049
1 jurisdiction of this Court over the Receivership Property; or to refuse to cooperate with the
2 Receiver or the Receiver's duly authorized agents in the exercise of their duties or authority under
4 (g) Defendants, and each of them, and their directors, officers, agents,
5 employees, attorneys, and representatives are not enjoined from defending or resolving pending
6 any defensive litigation, including the present action and any other pending litigation not arising
7 out of or relating to the Receivership Property, provided that defendants do not offer or settle such
8 defensive litigation via payment of Receivership Property without prior written consent of the
9 Receiver.
10 SERVICE AND BRIEFING SCHEDULE
11 The Summons and Complaint, Plaintiff's ex parte Application, Memorandum of Points
12 and Authorities, this Order and all declarations and supporting papers are to be personally served
13 on each of the Receivership Companies no later than June 5, 2009, with proof of service to be
14 filed no later than 4:00 p.m. on June 9,2009.
15 Plaintiff shall file and serve supplemental pleadings in support of this Order to Show
16 Cause no later than June 10, 2009.
17 Defendants Shall file and serve supplemental pleadings in opposition to this Order to
19 Any reply papers shall be filed by Plaintiff no later than June 23, 2009.
20 All pleadings shall be served by email or fax and by regular mail, with chambers copies
21 delivered to Department 54.
22
23
24
25
26
27
28
BUCHALTKIlNtMER BN3683639v2 12
ORDER APPOINTING RECEIVER EX PARTE AND RELATED ORDERS
Jun-02-09 03:47pn From-Buchalter Nemsr SF T-636 P.014/014 F-049
1 A hearing on this Order to Show Cause is set for June 26, 2009, at 9:00 a.m. in Department 54 of
2 the above-entitled Court. Pursuant to Local Rule 3.04, the Court will males a tentative ruling on
3 the merits the court day before the hearing. If no party calls the Court and the opposing party by
4 4:00 p.m. the court day before the hearing, no hearing will be held.
5 IT IS SO ORDERED.
6 Dated- JUN -3 2009
7
8 Judge of the Supewor Court
9 Approved as to form: SHELLEYANNEWb
10 BENJAMIN LAW OFFICES
11
By:
12 Steven Benjamin
Attorneys for Defendants
13 National Credit Acceptance, Inc.,
NCA Financial Services, Inc. and
14 Columbia Credit Services, Inc.
15
16
17
18
19
20
21
22
23
24
25
26
27
28
BlICHALTRP NfeMER BN 3683639v2 13
A I'kklrl kfcjll/XHI, LUhPk flj»Jl'!N