Complaint in Hawaii

Case 1:14-cv-00353-HG-BMK Document 1 Filed 08/06/14 Page 1 of 6 PageID #: 1
Of Counsel:
ALSTON HUNT FLOYD & ING
Attorneys at Law
A Law Corporation
JUDY A. TANAKA 5369-0

MALIA E. KAKOS 7410-0
MAILE OSIKA 9826-0
1001 Bishop Street, Suite 1800
Honolulu, Hawaiì 96813
Telephone: (808) 524-1800
Facsimile: (808) 524-4591
Attorneys for Defendant

PLAZA HOME MORTGAGE, INC.
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF HAWAI’I
JULIE BETH BEAN, CIVIL NO. ____________________
Plaintiff, DEFENDANT PLAZA HOME

MORTGAGE INC.’S NOTICE OF
vs. REMOVAL OF CIVIL ACTION;
DECLARATION OF MALIA E.
JAMES ALEXANDER KAKOS; EXHIBITS A-B;
WESTBROOK, PLAZA HOME CERTIFICATE OF SERVICE
MORTGAGE, INC., MORTGAGE
ELECTRONIC REGISTRATION
SYSTEMS, INC., (MERS), solely
as Nominee for Plaza Home
Mortgage, Inc. and its
Successors and Assigns,
SECRETARY OF THE U.S.
DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT;
JOHN DOES 1-10; JANE DOES
906495v1
1-10; DOE TRUST ENTITIES 1-

10; DOE CORPORATIONS 1-10;
DOE PARTNERSHIPS 1-10;
DOE ENTITIES 1-10; DOE
GOVERNMENTAL AGENCIES 1-
10,
Defendants.
DEFENDANT PLAZA HOME MORTGAGE INC.’S

NOTICE OF REMOVAL OF CIVIL ACTION
Defendant PLAZA HOME MORTGAGE INC. (“Plaza”), by
and through its attorneys, Alston Hunt Floyd & Ing, hereby file this
Notice of Removal pursuant to 28 U.S.C. §1446. Plaza has the right
to remove the action entitled Julie Beth Bean v. James Alexander
Westbrook, et al.; Civil No. 14-1-0399(2), filed in the Circuit Court of
the Second Circuit of the State of Hawaiì (“State Court”), to the
United States District Court for the District of Hawaiì pursuant to
28 U.S.C. §§ 1332, 1441, and 1446 based upon the following:
1. Plaintiff Julie Beth Bean (“Plaintiff”) filed the above-
referenced action on July 1, 2014, and served Plaza on July 7,
2014. (Kakos Decl. ¶ 5; Exs. A, B.)
906495v1 2
2. Defendant Secretary of the U.S. Department of
Housing and Urban Development (“HUD”) has also been served.
(Ex. B.)
3. It appears that Defendant Mortgage Electronic
Registration Systems (“MERS”) was served. (Ex. B.)
4. No defendant has filed a response to the Complaint.
(Ex. B.) Plaintiff agreed to extend the time for Plaza to file its
response. (Kakos Decl. ¶ 8.) Plaza’s response is due August 22,
2014. (Id.)
5. This Court has original jurisdiction over this action
pursuant to 28 U.S.C. § 1332 because there is complete diversity of
citizenship and the amount in controversy exceeds $75,000,
exclusive of interest and costs.
6. Specifically, diversity of citizenship exists because
Plaintiff is a resident of North Carolina and no Defendant is a
resident of North Carolina. Defendant James Alexander Westbrook
is a resident of California. Defendant Plaza is a California
corporation with its principal place of business in San Diego,
California. According to the Complaint, Defendant Mortgage
906495v1 3
Electronic Registration Systems, Inc. (“MERS”) is a wholly owned
subsidiary of MERSCORP Holdings, Inc., a Virginia corporation with
its corporate headquarters in Reston, Virginia. Defendant The
United States Department of Housing and Urban Development is an
executive agency of the federal government and headquartered in
Washington, D.C. (See Ex. A at Compl. ¶¶ 1-5.)
7. Plaintiff has brought several causes of action based
upon the alleged fraudulent transfer of a home owned by her
mother to her brother. According to Plaintiff, the amount in
controversy is at least the amount of mortgage on the subject
property. As of January 3, 2014, the loan amount was
$938,250.00, well over the $75,000 required for diversity
jurisdiction. (Ex. A at Compl. ¶¶ 8-11, 20, 23, 25 and Ex. 1.)
8. This Notice is timely filed pursuant to U.S.C.
§ 1446(b) because it is filed within thirty (30) days of the service of
the Complaint on Plaza. (Kakos Decl. ¶ 5; Ex. B.)
9. Plaza will promptly provide written notice of the
filing of this Notice of Removal to Plaintiff, HUD, and MERS, and file
a copy of the Notice of Removal with the Clerk of the Circuit Court
906495v1 4
of the Second Circuit, State of Hawaiì, pursuant to 28 U.S.C.
§1446(d).
10. This Notice is not intended and shall not be
construed to waive any defenses available to Plaza in this action,
and all such defenses are expressly preserved.
11. Venue is proper pursuant to 28 U.S.C. §1446(a)
because the State action is pending within the district and division
of the United States District Court for the District of Hawaiì.
12. Plaza has attempted to locate a person with
authority to consent to removal for the served Defendants HUD and
MERS, but has been unsuccessful. (Kakos Decl. ¶ 10.) Plaza will
inform this Court via an amended declaration as soon as it knows
whether or not HUD and/or MERS will consent to removal. (Id.)
13. Pursuant to Rule 7.1 of the Federal Rules of Civil
Procedure, Plaza is filing its Corporate Disclosure Statement
concurrently herewith.
WHEREFORE, Plaza respectfully requests that the action
be removed from the Circuit Court of the Second Circuit of the State
of Hawaiì, to this Court.
906495v1 5
DATED: Honolulu, Hawaiì, August 6, 2014.
/s/Malia E. Kakos
JUDY A. TANAKA
MALIA E. KAKOS
MAILE OSIKA

906495v1 6
Case 1:14-cv-00353-HG-BMK Document 1-1 Filed 08/06/14 Page 1 of 4 PageID #: 7
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF HAWAI’I
JULIE BETH BEAN, CIVIL NO. ____________________
Plaintiff, DECLARATION OF MALIA E.

KAKOS
vs.
JAMES ALEXANDER
WESTBROOK, PLAZA HOME
MORTGAGE, INC., MORTGAGE
ELECTRONIC REGISTRATION
SYSTEMS, INC., (MERS), solely
as Nominee for Plaza Home
Mortgage, Inc. and its
Successors and Assigns,
SECRETARY OF THE U.S.
DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT;
JOHN DOES 1-10; JANE DOES
1-10; DOE TRUST ENTITIES 1-
10; DOE CORPORATIONS 1-10;
DOE PARTNERSHIPS 1-10;
DOE ENTITIES 1-10; DOE
GOVERNMENTAL AGENCIES 1-
10,
Defendants.
DECLARATION OF MALIA E. KAKOS
Pursuant to 28 U.S.C. § 1746, I declare that:
906495v1 1
1. I am an attorney representing Defendant PLAZA
HOME MORTGAGE, INC. (“Plaza”) in this action. I have personal
knowledge of, and am competent to testify to, the matters set forth
below.
2. I make this declaration in support of Defendant
Plaza Home Mortgage Inc.’s Notice of Removal of Civil Action and
based upon my personal knowledge.
3. Attached hereto as Exhibit “A” is a true and correct
copy of the Complaint; Exhibits “1” to “4”; Summons, filed by
Plaintiff Julie Beth Bean on July 1, 2014 in the Circuit Court of the
Second Circuit, State of Hawaiì.
4. On July 1, 2014, Plaintiff filed a Notice of Pendency
of Action; Declaration of Douglas R. Wright; Exhibit “1.” This Notice
is part of Exhibit A, attached hereto.
5. Plaza was served with the Complaint on July 7,
2014. The Return and Acknowledgment of Service was filed on
July 10, 2014. (Ex. B).
6. Defendant Secretary of the U.S. Department of
Housing and Urban Development was served with the Complaint;
Exhibits “1” to “4”; Summons. Attached hereto as Exhibit B is a

906495v1 2
true and correct copy of the docket sheet in State Court for this
case showing the date of service.
7. A submission of original affidavit of service for
Defendant Mortgage Electronic Registration Systems (“MERS”),
solely as Nominee for Plaza Home Mortgage Inc., and its successors
and assigns, was filed on July 24, 2014. (Ex. B.)
8. According to the records from the Circuit Court of
the Second Circuit of the State of Hawaiì available as of the time of
this filing, there are no other documents filed in Civil No. 14-1-
0399(2). (Ex. B.)
9. No defendant has filed an answer or other response
to the Complaint. (Ex. B.) Plaintiff’s counsel agreed to extend the
time for Plaza to file its response. Plaza’s response is due
August 22, 2014.
10. This firm, on behalf of Plaza, has contacted
Defendant HUD and Defendant MERS to request their consent to
removal. We have, however, not been provided with the name and
contact information of a person with authority to make such
decision. We will continue to seek consent from Defendants HUD
906495v1 3
and MERS and will amend this declaration accordingly as soon as
possible.
I declare under penalty of perjury that the foregoing is
true and correct.
/s/ Malia E. Kakos

MALIA E. KAKOS
906495v1 4
{ì '?
FILET
WzuGHT & KIRSCHBRAUN
A Limited Liability Law Company
20lrr JUL
: I Pll 3¡ tr|
DEBORAH K. WRIGHT 4444-0
KEITH D. KIRSCITBRAUN 4971-0 I{. HAEDA, CLERK
DOUGLAS R, WRIGHT 9643 SECOHt) CIRCUIT TOURT
1885 Main Street, Suite 108 STAÏE OF HArt/AII
Wailuku, HI 96793
Telephone: 808-244-6644
Facsimile: 808-244- 1 0 I 3
Emai I : wrightkirsch@aol.com
Attorneys for Plaintiff

ruLIE BETH BEAN
IN THE CIRCUIT COURT OF THE SECOND CIRCUIT
STATE OF HAWAII
ir. r-fì399
- (\'-Z\
'JULIE
BETH BEAN, ) CIVIL NO. lq - r- - r
) (Other Civil Action)
Plaintiff, )
) COMPLAINT F'OR TEMPORARY AND
vs. ) PERMANENT INJUNCTION,
'" ) DECLARATORY RELIEF', BREACH OF'
JAMES ALEXANÐER wESTBRooK ) TRUST AND FIDUCIARY DUTY AND
;PLAZA HOME MORTGAGE, INC., ) OTHER RELIEF; EXHIBITS '(1" TO K4".
MORTGAGE ELECTRONIC ) STJMMONS
REGISTRATION SYSTEMS, INC. (MERS), )
solely as Nominee for Plaz¿lIome Mortgage, )
I¡lç., and its Successors ãnd Assignf- )
.I,SECRETARY OF THE U.S. DEPARTMENT
)
OF HOUSING AND URBAN )
DEVELOPMENT; JOHN DOES 1-i0, JANE )
DOES 1-10; DOE TRUSTENTITIES l-10; )
DOE CORPORATIONS 1-IO, DOE )
PARTNERSHIPS I.IO, DOE ENTITIES 1.10 )
DOE GOVERNMENTAL AGENCIES 1-10, )
)
Defendants. )
)
COMPLAINT F'OR TEMPORARY AND PERMANENT INJUNCTION,

DECLARATORY RELIEF, BREACH OF TRUST AND FIDUCIARY PUfV
AND OTHER RELIEF
I hereby certify that this and

correct
Clerk, Second Gìrcuit Court
EXHIBIT A
COMES NOW Plaintiff ruLIE BETH BEAN ("PLAINTIFF") by and through her
attorneys, WRiGHT & KIRSCHBRATN, a Limited Liability Law Company, and for Complaint for
Temporary and Permanent Injunctiorq Declaratory Relief Breach of Trust and Fiduciary Duty and
Other Relief against Defendant JAMES ALEXANDER WESTBROOK alleges and avers as
follows:
1. At all times relevant herein Plaintiff is a resident of North Carolina.
2. At all times relevant herein Defendanr JAMES ALEXANDER wESTBRooK
("DEFENDANT WESTBROOK") is a resident of California.
3. Plaintiff is informed and believes, and based thereon alleges, that Defendant plaza
Home Mortgage, lnc. ("DEFENDANT PLAZA'), a nationwide mortgage lender, was and is a
California cotporation, organized and existing under.the laws of the State of California with its
principal place of business in San Diego, California-
4. Plaintiff is informed and believes, and based thereon alleges, that Mortgage
Electronic Registration systems, lnc. ("MERS") is a whoily owned ,uorroi* of MERSCSRp

Holdings, Inc', which was ærd is a Virginia corporation, organized and existing under the laws of
the State ofVirginia with its corporate headquarters located in Reston, Virginia-
5. The United States Deparhnent of Housing and Urban Development
("DEFENDANT HUD') is an executive agency of the federal govemment and headquartered in
Washington, D'C. and is subjeet and amenable to the jurisd.iction and process of this court for the
purposes of this Complaint pursuant to 28 U.S.C. $ 2410. In Hawaii's jurisdiction the HUD
Honolulu Field Office is located at ll32 Bishop Streer, Suite 1400, Honolulu, HI 96g13-491g.
6. Defendants JOHN DOES t THROUGH 10; JANE DOES I TIIROUGH 10; DOE
TRUST ENTITIES I THRoucH l0; DoE CoRpoRATIoNS I THROUGH 10; DoE
2
I I
PARTNERSHIPS I THROUGH 10; DoE ENTITIES 1 THROUGH l0; and DoE

GOVERNMENTAL AGENCIES I THROUGH 10 (collectively "DOE DEFENDANTS") are
named herein under fictjtious names for fhe reasons that their narnes, identities, capacities, activities
and/or responsibilities are presently unknown to Plaintiff. Plaintiffs counsel has made a reasonable
inquiry into the facts as alleged in this Complaint; however there may be persons, entities and/or
govemmental agencies who have an interest in this action unknown to P1aintiffs, or who may claim
ownership of or lien righs in the property at issue and/or may in some manner presently unknown
to Plaintiff claim some other interest, including a possessory interest thereto, and may be or are
liable to Plaintiff because of said ownership, lien rights and/or other interesf or who are agents,
servants, employees, representatives, coventurers, associates and/or partners of the named

Defendants; and/or who are in some manner presently unknown to Plaintiffengaged in the activities
alleged in the complaint filed herein; and Plaintiffprays leave to insert herein their true names and
capacities, activities and/or responsibilities when the same are ascertained, In a diligent and good
faith effort to ascertain the true names, identities and capacities of Defendants herein, Plaintiff
researched County of Maui real property tax records and the State of Hawaii Bureau of
Conveyances records.
7. This court has jurisdiction over this action pursuant to Hawaii Revised Statutes
Sec. 603-21.5 and venue is proper pursuant to Hawaii Revised Statutes Sec. 603-36.
8. Linda Mishoe Petraitis, ("MRS. PETRAITIS"), now deceased, was the mother of
Plaintiff and Defendant TVestbrook. Mrs. Petraitis was a resident of the County of Maui, State of
Hawaii and the owner in fee simple of the real properly located at 79 Kulamanu Circle, Kul4 Maui,
Hawaii, more particularly identified as Tax Map Key Numbers: (2) 2-3-023-129 ("SUBJECT
PROPERTY'), and other personal property.
3
ì
9. Plaintiff is informed and believes, and based thereon alleges, that on or about
January 3,zl!4,lv1rs. Petraitis, as Borrower, entered into a Mortgage (Home Equity Conversion),
Adjustable Rate Reverse Mortgage Loan,'with Defendant Plaza, FFIA Case No. 141-162333j1962^
255, Loan Number 251312015, MIN 1001098-0000256955-7 ('FIRST MORTGAGE"), recorded
as Land Court Document No. T8775114 on Certificate No. 807977 on January 10,2014. The
First Mortgage designated MERS as Mortgagee, solely as nominee for lender, Defendant plaz4 and
its successors and assigns. A true and correct copy of the Mortgage is attached hereto as Exhibit
a(
I ,)
10. Piaintiff is informed and believes, and based thereon alleges, that on or about
January 3, 2014, Mrs. Petraitis, as Bonower, entered into a Second Mortgage (Home Equity
ConversioÐ, FIIA Case No, 141-16233331962-255, Loan Number 251312015, (,SECOND
MORTGAGE"). This Second Mortgage was given to the Secretary of Housing and Urban
Development, whose business and post offrce address is 451 Seventh Sheet, S.W., ïVashingtoa DC
20410.4 true and conect copy of the Mortgage is attached hereto as Exhibit,2".
11. On or about December 30, 2008, Plaintiff came to Maui at her mother's request to
assist after the death of Plaintiffs step father, Walter Petaitis. At that time, Mrs. Pehaitis informed
Plaintiff of revised estate plaruring and wanted Plaintiff and Plaintiff s husband, Jamie Bean, to be
the executors of her estate and, fiuther, that ttre Subject Property would be conveyed to plaintiff and
her husband.
12. In 2011 Mrs. Petaitis was admitted to the hoqpital with a heart attack. Defendant
Westbrook did not notify Plaintiff until more than 48 hours after their mother's hoqpitaiization.
Defendant Westbrook told both Plaintitrand Plaintiff s sister, Cheryl Westbrook, that their mother
was angry with them, did not want to see them, and they were to leave her alone. Plaintiffthereafter
4
I Case 1:14-cv-00353-HG-BMK Document 1-2 Filed 08/06/14 Page 5 of 58 PageID #: 15
attempted to ¡each her mother by telephone message and e-mail; however, Mrs, Petraitis never
replied.
13. On or about April 8,2014, Defendant Westb¡ook told Plaintiffthat their mother
had pneumonia and had been admitted into the hospital "over the weekend" but she had been
responding to medication and oxygen, which is the excuse he gave for not contacting Plaintiff
14. Plaintiff was later informed during a telephone call she made to the hospital that on
March 30,2014, Mrs. Petaitis wæ taken by ambulance to the hospital and admitted to the htensive
Care Unit at the Maui Memorial Medical Center with severe respiratory distress, pneumonia and
acute kidney failure, contrary to what Defendant Westbrook had told Plaintiff
i5. Plaintiff is informed and believes, and based thereon alleges, that on Friday, April
4,2014,while hospitalized lvfrs. Petraitis signed a Durable Power of Attorney, ("POA") naming
her son, Jarnes Alexander Westbrook as afforney-in-fact. A true and correct copy of the Durable
Power of Attorney recorded as Land Court Document No. T-887 I 1 20 on April I 6, 20 14, is
attached hereto as Exhibit "3".
16. As attorney-in-fact, Defendant V/estbrook owed good faith and a fiduciary duty to
Mrs. Petraítis to act in accordance with those powers expressly delineated within the four comers of
the empowering document.
17. The POA read, in relevant part, that:
1. GRANT OF POWERS: I, Linda Mishoe Petraitis, of Kula, MAUI, State of

Hawaii, do hereby constitute and appoint my son, Jarnes Alexander Westbrook, of Studio
City, California, with fi.rll power of substitution, my true and lawful attomey foi me and in
my name and for my use and benefit to perform and do all of the following:
3. DEAL WITH PROPERTY: to bargain, contrac! agree for, buy, lease, sell,
exchange, convey, demise, mortgage, hypothecate, and in any and every v/ay zurd manner
deal in and with lands, leaseholds, goods, me¡chandise, ohoses in action, and other property,
real or personal or mixed, of all kinds, in possession or in action, upon such terms,
covenants, and conditions as my atûcrney shall agree to; to release rnortgages, pledges, or
5
hypothecations on lands or chattels and to make, do, and transact business of every kind or
nature;
3. [sic] EXECUTE iNSTRUMENTS: for me and in my name and as my act and

deed, to sign, seal, execute, deliver, ærd acknowledge such checks, promissory notes, deeds,
leases and assignments of leases, covenants, indentures, agreements, mortgages,
hypothecations, bills of lading, bills, bonds, notes, receipts, evidence of debt, releases and
satisfactions of mortgage, judgments and other debts, and such other instruments in witing
of whatever kind or nature as may be necessary or proper in the premises; and also to
deposit and to withdraw and to bonow for me and on my account sums of money from time
to time; and for me and in my name to draw, accept, make, endorse, discount, or otherwise
deal with bills of exchange, checks, promissory notes, or other securities for the payrnent of
money;
l. GIFT: to make gifts of cash or propeffy, or the income thereof in fust or

outright, to family members, spouse, füends, and natural objects of my bounty and to make
contributions to charitable organizations, provided, however, that my attomey-in-fact shall
not have the power under the foregoing to use any asset of mine to satisff any legal
obligation of my attomey-in-fact or to provide for the support of any dependent of my
attomey-in-iact uriess such <Íependent shall inciude myself or those persons whom I am
legally obligated to support; nor shall this entitle my attomey-in-fact to transfer propøty to
my attomey-in-fact, except in a fiduciary relationship to me;
18. The POA does not provide for the agent to make self-serving gifts to himself, nor
does it provide for unlimited gifting power.
19. Plaintiff is informed and believes, and based thereon alleges, that N¿frs. Peüaitis
remained hospitalized and was taken off oxygen on April 7, 2014, three days after she signed the
POA.
20. Plaintiff is informed and believes, and based thereon alleges, that the same day on
April 7, 2014, Defendant Westbrook, as attorney ín fact for Mrs. Pehaitis, executed a Quitclaim
Deed, which was recorded on April 16, 2014, as Land Court Document No. T8871121 on
Certificate No, 807,977; Issuance of Certifica te 1076899 ("Quitclaim Deed") that improperly
transferred the Subject Property to himself. A true and conect copy of th€ Quitclaim Deed is
attached hereto as Exhibit "4".
6
2I. This conveyance was a direct transfer from Defenda¡rt 'Westbrook, as agent pursuant
to the POA, to himself and benefitted only himself.
22. Plaìntiff is informed and believes that on April 8, 2014, the day after Defendant
Westbrook executed Ure quitctaim Deed tlansferring the Subject Properry to himself, his mother,
Mrs. Petraitis, passed away. Defendant Westbrook notified Plaintiff later that evening.of our
mother's passing.
23. On April 9, 2014, r¡¡hile informing Defendant Westbrook of PlaintifPs plans to
come to Maui, Defenda¡rt Westbrook told Plaintiffthat he is in possession of an updated

'Will for
Mrs. Petraitis, which she purportedly changed in 2011, naming himself and his son, Taylor
'Westbrook ("TAYLOR"), as sole beneficiaries of alt of iv{rs. Petraitis'propefy and leaving nothing
to Plaintiff or their sister, Cheryl Westbrook, Defendant Westbrook süenuously objected to
Plaintiff coming to Maui.
24. Plaintiffis informed and believes that Taylor began residing on the Subject Property
in the fall of 2013, and Defendant 'Westbrook has permitted Taylor to continue to occupy and reside
on the Subject Properly without paying rent.
25. Plaintiff is informed and believes, and based thereon alleges, that Defendant
Westbrook has listed, or intends to imminently list, the Subject Property for sale.
26. Upon information and belie{ no will for Mrs, Petaitis has been produced and no
probate proceedings have been commenced for the Estate of I,ù¿a Mishoe Petraitis.
27, Upon information and belief Defendant Westbrook has begun removing items of
personal property from the home of \,{rs. Pehaitis, after her death, for his o\¡¡rl use and/or for
distribution among others.
7
28. Plaintiff is a descendant of lvlrs. Petraitis, in accordance with Hawaii's Uniform
Probate Code Section 560:2-103.
COT'NT I
(Injunctive Relief)
29. Plaintitr realleges the facts and ailegations contained in paragraphs I through 28
above as if set out in fi¡Il.
30. Upon information and belief Defendant Westbrook intends to list the Subject
Property for sale a¡id has distibuted other items of personal property owned by À{rs. Petraitis. The
wrongfrrl conduct of Defendant Westbrook in conveying the Subject Property into his name under
the POA anci mak:ing dsnibutions of personai properfy, as stateci above, uniess restrained and
enjoined by an order of this Court, will cause great and ineparable harm to Plaintiff in that Plaintiff
may be permanently deprived of her right and interest in said Subject Property should it be listed
and sold,
31. Defendant Westbrook has claimed that he and his son Taylor are the sole
beneficiaries under Mrs. Penaitis' Will; however, ttre purported 201 I Will of Mrs. Petaitis has not
been produced.
32. Unless injunctive relief is granted, Plaintiff has no adequate remedy of law to
prevent the ir:furies suffered and may continue to suffer in the future unless Defendant Westbrook's
wrongfirl conduct is restrained and enjoined because Plaintiff could forever lose her interesl in the
Subject Property in the event ofa sale and other personal property.
8
COTINT II
(Declaratory Relief forBreach of Trust and Fiduciary Duty)
33. Plaintiff realleges the faets and allegations contained in paragraphs 1 through 32
above as if set out in firll.
34. An actual controversy has arisen and now exists between Plaintiff and Defendant
Westbrook regarding the force and effect of the POA and the Quitclaim Deed.
35. Defendant Westbrook, as attorney-in-fact for Mrs. Petraitis, had no authority
under the POA to transfer the Subject Property to himself.
36. Plaintiffdesires a judicial determination as to the validþ of the POA as it relates to
Defendant Westbrook's conveyance of property (real or personal) ûom Defendant Westbrook to
irimseif pursuant to the aiiegeci authority of the POA.
37 , Plaintiffrequests a judicial determination that the transfer of the Subject Propertry by
Quitclaim Deed to James Alexander Westbrook was improper and fraudulent, a breach of trust and
fiduciary duty and/or in violation of the POA and as such, the Quitclaim Deed be deemed null and
void.
38, Unless a judicial determination is rendered, Defendant Westbrook will maintain
possession of the Subject Property and as the owner on title, sell or otherwise dispose of the Subject
Property without regard to Plaintiffs interest.
COUNT III
(Fraud)
39. Plaintiffrealleges the facts and allegations contained in paragraphs I through 38
o
40. On March 30,2014,1t¿frs. Peuaitis was admitted to the Intensive Care Unit at the
Maui Memorial Medical Center with severe respiratory distress, pneumonia and acute kidney
failure,
41. On April 4,2014, while in the hospital lvlrs. Petraitis signed the POA naming her
son, Defendant V/estbrook, as atürrney-in-fact. Upon inforrnation and belief, Defendant Westbrook
is the person that requested the preparation of the PoA for Mrs. Petaitis,
42. Upon information and beliefl tluee days later, on April 7, 2014, lr4rs. Petraitis was
taken offoxygen.
43. On April 7,zll4Defendant Westbrook, acting in his capacítyas attomey,in-fact
for M¡s. Pehaitìs, executed the Quitclaim Deed conveying the Subject Property to himself.
4. Defendant V/estbrook intended to execute the Quitclaim Deed title thereby
conveying the Subject Property from Mrs. Petraitis to himself. The conveyance of the Subject
Property to Defendant Westbrook was without consideration and done in anticipation of Mrs.
Petraitis' death.
45. Defendant Westbrook's conveyance to himself was intended to benefit only
himself.
46. The conveyance of the Subject Propefy to himself was not an authorized power
granted to him as the agent for M:s. Petraitis,
47. The day after Mrs. Petraitis was taken off oxygen, she passed away on April 8,
2014.
48. The toansfer of Mrs. Petraitis's property by Defendant Westbrook as attomey-in-fact
for l¡frs. Pet¡aitis to himself benefitted only himself and is an improper and fraudulent conveyance.
10
49. These actions were not disclosed by Defendant Westbrook and discovered only
tluough Plaintjffls efforts after M¡s. Petoaitis' death.
COTJNT IV
(Conversion)
50. Plaintiff realleges the facts and allegations contained in pæagraphs I through 49
above as if set out in fuIl.
51. Following tlie conveyance of title from his mother to himself, Defendant Westbrook
remains the sole fee owner of the Subject Properfy.
52. Defendant Westbrook's ownership has been to the exclusion of the descendants of
Mrs. Petraitis and her estate.
53. Defendant Westbrook has claimed exclusive ownership of and retained the right
and use of the Subject Property for himself.
54. As a direct and proximate result of Defendant Westbrooks's oonveyance of the
Subject Property to himself pursuant to an alleged authority which did not legally exist, Plaintiff
has suffered damages in an amount to be proven at trial.
COTINT V
(Unjust Enrichment)
55. Plaintiff realleges the facts and allegations contained in paragraphs I tlrough 54
above as if set out in fi.rll.
56. Defendant Westbrook received the benefit of the conveyance of the Subjeot Property
to himself, pursuant to his improper use of the Power of Attomey.
57. Defendant Westbrook's retention of this benefit is at the expense of the other
descendants of lv{rs, Petraitis.
11
58, The retention of this benefit by Defendant Westbrook is unjust and, as a direct and
proximate result of Defendant Westbrooks's actions, Plaintiffhas suffered damages in an amount
to be proven at trial.
COIJNT VT
(Undue Influence)
59. Plaintiff realleges the faøs and allegations contained in paragraphs I through 58
above as if set out in full.
60. Defendant Westb¡ook is the son of Mrs. Petraitis and, as her attomey-in-fact, was in
a confidential and/or fiduciary relationship with his mother and Plaintiff
61. In December, 2008 Mrs. Petraitis asked Plaintiffto help her with arrangements
following the death of her husband, Plaintiffs step-father.
62. During Plaintiffs December 2008 visit Mrs, Petraitis expressed a concem about
Defendant Westbrook's financial affairs, specifically that Defendant Westbrook had already taken
enough of her money and that he owed Mrs. Petaitis hundreds of thousands of dollars. During a
conversation between lln. Peftaitis and Plaintiff, it was infened that Mrs. Petraitis' estaúe planning
had recently been updated. Mrs. Petraitis also æked if it would be acceptable for Plaintiffand her
husband to be named as co-executors under the tacit estate plan.
63. Upon information and belief Defendant Westbrook unilaterally assumed the role as
the intermediary between Mrs. Petraitis and her other children in 201 L
64. Upon information and belief in 2011 Defendant Westb¡ook took control of IWs,
Petraitis' care, social activities and finances, to the exclusion of Ir4rs. Pehaitis' other children,
namely, Plaintiffand her sister.
12
65. From 20ll wrtil her death, the time period after Defendant Westbrook assumed
control of Mrs. Petraitis' care and activities, Plaintiffs attempts to contact her by telephone and e-
mail were never responded to.
66. Upon information and belief, Defendant Westbrook filtered any and all messages
between Plaintiffand her sister and Mrs. Petraitis.
67. Upon information and belie{ Defendant 'V/estbrook caused Mrs. Petraitis to cease
contact with her other children.
68. Defendant Westbrook's actions from 2011 through 2014 gave rise to an abuse of
confidential and/or fiduciary relationships which replaoed the free will of Mrs. Petraitis with his
own personal desires that resulted in a benefit to himself.
69. As a direct and proximate result of Defendant Westbrooks's undue influence,
Mrs, Petraitis was induced to sign the POA.
COTJNT VII
(Constructive Trust)
70. Plaintiff realleges the facts and allegations contained in paragraphs i tlrough 69
above as if set out in fi.rll.
71. Defendant Westbrook was ín a confidential or fiduciary relationship with Mrs.
Petraitis.
72. Upon information ærd belief, the POA was procured through the undue influence of
'Westbrook,
Defendant the result of repetitive negative comments about Plaintiff and ñltered
communication between Plaintiffand her Mother intended to manipulate Mrs, Petraitis.
73. Defendant V/estbrook used the guise of authority under the POA to gain benefit
for himself, inter alia, the fraudulent transfer of Subject Property to himself,
t.)
ì
74. If the Subject Property had not been conveyed to Defendant Westbrook, it would
have been under the control of the Estate of Linda Mishoe Penaitis.
75. The foregoing acts of Defendant Westbrook are an abuse of such confidential and
fiduciary relationships and warrant the imposition of a constructive trust for the benefit of the
Estate of Linda Mishoe Petraitis.
COTINT VIN
(Accounting and Surcharge)
76. Plaintiff realleges the facts and allegations contained in paragraphs I through 75
77. The foregoing acts of Defendant Westbrook constitute a failure to exercise his
Íìciuciary ciuties oi ivirs. Pehaitis' assets in accor<iance with a reasonabie standard of care anci is a
bre,ach of his fiduciary responsibilities as the agent for Mrs. Petraitis.
78. Upon information and belief, Mrs. Petraitis owned assets in addition to the Subject
Properly, including among other things net funds procured pursuant to the First Mortgage, having a
principal loan in the amount of $938,250.00.
79. Upon information and belief, Defendant Westbrook has also distributed items of
personal properly which are not presently accounted for belonging to the Estate of Linda Mishoe
Petraitis.
80. As a result of Defendant Westbrook's improper and wastefi;l actions, the Estate of
Linda Mishoe Petraitis and the beneficiaries thereto, of which Plaintiff is one, have suffered a
diminution of value.
81. Such conduct warants an accounting identifring all assets managed, conveyed, or
'Westbrook,
otherwise exerted control over by Defendant as well as the imposition of personal
14
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liability on Defendant Westbrook in the form of a surcharge in an amount to be determined by the
court.
COI.INT IX
(Iottious Interference with an Expected Inheritance and/or Prospective Economic
Advantage)
82. Plaintiff realleges the facts ærd allegations contained in paragraphs 1 through 8l
83. Defendant Westbrook abused his position of trust and responsibility in both his
confi dential and fi duciary relationships.
84. Defendant Westbrook never told Plaintiff that Mrs. Pehaitis had suffered another
heart attack, and he waited until after lvfrs. Petraitis' death, ten days after Mrs. Pehaitis was rushed
to the hospital with significant illness and life-threalening condition, to let Mrs. Peüaitis' daughters
know of the serious condition which resulted in her death. Defendant Westbrook's cavalier attitude
and inaction prevented Plaintiff from having the opportunity to visit or otherwise speak with Mrs.
Petraitis before her death.
85. Plaintiff, her sister and Defendant Westbrook are the only descendants of Mrs.
Petraitis,
86. During the ten days between March 30 and ,April 9, Defendant Westbrook obtained
the POA and conveyed at least one asset, what is believed to be her biggest asset which is the
Subject Properfy, fiom Mrs. Petraitis to himself.
87. Mrs. Petraitis signed the POA identifuing Defendant Westbrook as her agent, but
Mrs. Perraitis did not sign the Quitclaim Deed conveying her residence, the Subject Propeúy, to
him.
15
88, The conveyance of the Subject Property to Defendant Westbrook was without
consideration and done in anticipation of Mrs. Petraitis' death.
89. As a result of the wrongfrrl conveyance of the Subject Property to Defendant
Westbrook, the Subject Propefy cannot O..r*0, be included in the Estate of Linda Mishoe
Petaitis and the descendants would have no claim or interest therein.
90. Any üansfers of Mrs. Petraitis' properly which diverted assets out of lvfrs.
Peftaitis' estate to Defendant V/estbrook for his sole benefrt is a breach of his confîdential
relationship and fiduciary duty and constitutes Tortious Interference with an Expected
Inheritance and/or Prospective Economic Advantage.
9L As a direct and proximate result of Defendant Westbrooks's actions, Plaintiff has
suffered damages in an amount to be proven at hial.
COT]NT X
(Punitive Damages)
n' Phintiff realleges the facts and allegations contained in paragraphs i through 9l
93. The aforesaid activities and conduct of Defendant Westbrook were intentional,
\¡rilful, wanton and outrageous and entitle Plaintiffto recover punitive damages in an amount to be
proven at frial.
WHER-EFORE, Plaintiff prays for rhe following relief:
a- A declaration of the court that the Durable Power of Attorney dated April 4,2014
and recorded as Land Court DocumentNo. T,8871120 is null and void.
b. Should the Durable Power of Attorney be deemed valid, that ajudicial determination
be made that under Provision No. 7 of the Du¡able Power of Attomey, Defendant Westbrook was
not authorized in his capacity as attorney-in-fact to toarsfer the Subject Properfy to himself; that
16
I
such improper transfer was a breach of trust and fiduciary duty, and that the hansfer by Quitclaim
Deed dated April 7, 2014, recorded as Land Court Document No. T8871121 on Certificate No.
807,977; Issuance of Certifrcate 1076899 for the Subject Property is null and void.
d. That any order and judgment entered by the Court, setting aside the force and effect
of the Durable Power of Attorney dated April 4,2014, recorded as Land Court Document No. T-
8871120 and/or the properfy transfer by Quitclaim Deed dated April 7, 2014, recorded as Land
Court Document No. T8871121 on Certificate No, 807,977; Issuance of Certificate 1076899,
shali be recorded with the Bureau of Conveyances.
e. That the Court find Defendant Westbrook holds the Subject Property in a
constructive trust for the Estate of Linda Mishoe Petraitis, Plaintiff and/or for persons not yet
determined by the court, and that all items of personal property which have been distributed by
Defendant Westbrook be retumed and held by the consffuctive trust.
f. For an accounting by Defendant Westbrook for all matters over which he purported
to exercise authority as an agent for Linda Mishoe Pefraitis and/or as an agent for the Estate of
Linda Mishoe Petuaitis.
g. For a judgment against Defendant Westbrook and in favor of Plaintiff for special
damages in an amorurt to be proven at tial.
h. For a judgment against Defendant Westbrook and in favor of Plaintiff for general
damages, irtcluding, but not limited to, damages for conversion, unjust eruichment, suriharge,
emotional distress, and tofüous interference with an expected inheritance or prospective economic
advantage in an amount to be proven at trial.
i. For a judgment against Defendant Westbrook and in favor of Plaintiff for punitive
damages as applicable by law.
17
I
j That Plaintiff be awarded reasonable attomeys' fees and costs and such other relief
as this Court deems just and equitable under the circumstances and as allowed by law.
DATED: Wailuku, Maui, Hawaii, June 30,2014.
KEITH D. KIRSCHBRALIN
DOUGLAS R, TVRIGHT

JULIE BETH BEAN
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Case
ì
1:14-cv-00353-HG-BMK Document 1-2 Filed 08/06/14 Page 19 of 58 PageID #: 29
. STATE OF HAWAII
OFFICE OF ASSISTANT REGISTRAR
RËCORDED
January 10,2014 ô:01 AM
Doc No(s) 1-8775114
on Cert(s) 807977
lssuance of Cert(s)
1s/ NICKIANN THOMPSON

ASSISTANT REGISTRAR
ill lr llillllllllll lllllll lll
1 112 DML
B-3240074r
(AREA ABOVE R.ESERVFÞ FOR RECOBDING INFORMÁ,TION)
Äfter Recordation, Return by Mail To

TGI àa t)ry6 ft
.L
c
Pla-za Home Mongagq Inc.
TGË: n,{t )Ô)llW

4820 Eastgate Matl, Suite 100
San Diegq CA 93121
Tar Ma¡i Key Ñumber; ffi
trHA Case Numben l4l -16233331962-255
@ v4,
I¡an Numben 251312015
MIN: I @1098-00002s69597
State of Eawaii
.. MORTGAGE
y':
THIS,MORTGAGE SEg.TIRES A¡i ADJUSTABLI RATE REVERSE MORTGAGT L9AN
THIS MORTCACE ('security lnstrument") is given on January 03, 201{.:The mor,tgagor is L.lnda Mshoe
.. Petraitis, os iee owùer, whose address is 79 Kulamanu Clrcle,. Kula, 8I.96790 '("Boú-owerï). This Secuiity /
Insüu¡neirt is glven tq Plara Home Mortgage, fnç., wþic[ is organized.a¡d existing under. the laws of Californià,
and wbose business and:post ófficæ address is -1820 Éa*gate MaU, SLtiè t00, San Djegri; CA 921.21. ("-Lender.). .
The mortgagjee uniler.thls Securþ Instntmcnl b Mór.lgage Electronic Regístratìon Sþrteira, Inc.. (iMERS')
þblelv as nom.inee for.'Leniler and I,ender's successòrs.anit cissiga|.and ilie iaccessors and assigns oÍMERS'. ' .
i/ERS is a separate corporation that is acting sglely $ à nomínee fo Lender anû Lcnder's successoi'Í antl assigns,. . '
illERS ¡b otgæized arul exlsling ttnder the lau,s of Delø+are, and þøs an àddress ød telephortàimnber.of.P.ô. Bax ' . .
.2036, Fti¡ìq, I,II J8501-J016,tet. P$8).679:I1ffi.'Bo¡rowa nas'ágrÊpd.to iepay to'Lendei autounts wn¡"¡ l,¿o¿.r
is obligated b advance, iricluding fqrturç advancdd, undgr the terurs bf a Ho¡ne Equit!.Convérsìòn Loan Âgreemént . '
datçd úe same date as this Eecurid Ins[runeint ('I-oan Agreementr')- The'agreement to repay is evideræed'by ,. '
Borrrìwet's Notc dâted lþe same.datc a$ thiö Sccuriþ lastrurnggt ('NbteìT. This Secur{ty.I¡strurne¡rt sècures.tb'i
. Lender: (a) the repayment of ihedebt.evidenpeC by thp'Note, inc{VÇinealtfuti¡r'e advances, with intèresi,at a.ra.tö.'. I
sqþject to.adjr¡sbnent, *d.._[ renewaLs, exíónsions anij'rnoOi¡cât¡õns of the'Noie., up.t'o a ingruplirrr,'prirciRel'"
' amount óf mìe'Ilu¡¿red ttrirfy-Eighi'rhousarrdTwo'Ifunrlr*d p¡d Oo¡rtiO poml'r.tU,È:'Srs8rzs0.00);
{ity
1b) tþè payment of all other'sums,. with inlciett advancbd undqr.puFgreø 5 tq protert thi] security of this secirri,ty ''
'
Htn, a i I ln ÄIERS f,¿cyrlty Instnffi en t t' Ba¡, D æs, i¡rc.'. 0il 0.
Pase 1 ofl? :
EXHIBIT filrl
Inshument or othenvise due under the ten¡s of this Secrnity Instument; and (c) the performance of Borrowefs
covenants and agreemenfs under this Security Instiuneût and the Note. The full debg .including all amounts
de.scribed in (a), (b), and (c) above, if not paid earlie,r, is due and pâyable on January 14, iog3. Foi ttris purpose,
Borrower does hereby mortgage, graut and convey to Lender, wìth power of sale, the following described propÊrty
located i¡ Maui County, Hawaii, which bas tbe adäress of:
79 Su.lamanu Clrcle, Kula, tr, 96790, and is described møe fully on Exhibit A att¿ched to and bereby
incorporated ínto this Mortgage ("Property Address;'),
TOGETHER 'WTIH all the improvements. now or hereafter erected'ot the property, and all easeraents, rights,
appurtenances, and fixü$æ now or hereafter a.part of the property. Âll replacements aad additions sball also be
covered by this Security Insür¡ment. AII of the forcgoing is refened to in this SÊcurity Instr¡ment as tbe "Property."
BORROWER COVENANTS tl,aì Bo.r.o*e, is lawfuily seised of the estatc hereby .conveyed and has tre right to
mortgage, graút and convey the koperty and that the Prqierry is unencunibered. Borrower wanarits and will ¿lfend
generally th€ title to the Propaty against all claims and demands, subject to any encumþrances of ¡ecord.
THIS SECLJRITY INSTRUMENT combines uniform covenants for nationaf use and non-unifbrm covenants with
limited variations bj,.jurisdiction to constitute a unif<rrm see,urity instnrnent coverlng real prop€q,
LiNIFORM'COVENANTS. borrower and Lender covenantand agre€ as follows:
1. Payment of Principal and Interest, Borrower shall pay when due the prinoipal of and intorest on, tbe debt
evidenced by tbe Note.
2' Payment of Property Charges. Borrorver shall pay all property chæges consisting of taxes, ground rents,
flood and hazard iruurance premiurns, and special assessmeits in a tirnely maruer, and sball provide evidence of
payment to Lender, unless Lender Þays poperty chæges'by withholding funds.ûom monthly pa¡rments due to the
Bor¡ower or by chargin! such payrnents to a line of credit as provided for in tbe Loan Agreement.
3. Fire, Flood anil Other Hqqard ï¡su¡ence. Bonower.shall,þsurq all.improvéménts on the Foperty, wtret¡er
now in exisûence or subsequently e,rected; against any hazards, casualties, and contingeäcies, including fi¡e, This
-Secrefary
insrn'ançe ¡hall be måiruained in the arnoun.ß, to tbe extent and for the periods r.4uirêd by Lender oi the of
'Bomower
Housing and Urban bevelopment ("Secretary"). shall also insure àt i*p.*toot" ni tn. p*p*tv,
whetber now i.n e¡stmce orsubsequortly ere$ed, against loss by floods to the extent requlTed by tbe Secretary. 'All
irsr¡anceshallbecarriedúiJh.companiesapþrovedb!Lender. Theinsurarbepoliciesandanyrenewalsshall ,be
.heid by Lendçr a4d sha.ll include loss payable clauses in
ftyor of, and.in a foim acceptab¡e to, fcnAer.
Iu the éveni gf losq ilor¡ower bhail give'Iænder.in¡mediate nétice by m¿il. Læ¡rder may make þtoof of loss iinot
madè.promptly by p.o.rrowq; Eacb insur'ìnpe comþany cos,i¿¡ne¿ is hereby åurhor¡zed and Airecte¿ to make
P9)ntenJ f.oi such löss to Lender, ìlstead of to Borrowerand tetraer joinUy. Insurance prqceeds shali be applied to
iesio¡aúoi'or fpair of the dar¡rage.d'Þopeaþ,. if'the rçstoration oi."prl ie iÈonondcåtÍy feøsibie and Lende,r,s
secirity is not ies¡engd. If thé restoration or rèpair is-not.economically ftbsible or.Lændeiis security wouta Ue
ftèssrfned" the insurance procedis shall be'applied first.to the reduction of any indebiedness ú¡ider a'second Note and
Second. Se{turtty Insfrun.rent held by the Secretary on the'Èqierúy snd.thãir to the reducribn:of ihe indebtedness
under the Notc and this Security Inqfument. ATy excess i¡rurance proceeds ovêr an amounl required to
'indebt€dneÈs þay all .
oútsta.nding unler tåe Note anìi'thii Securily tnstutnent shall be paid to the entity- Iegaliy entiiled
tlrlretO.
.
In'the lyept of foreclosur! of thií Seguiity IÐstrume,nt of çt}¡e,r tansfer of title tO the Property ttrgt:exiinguishes thà
indebtedness, all äght, titlè a¡d interest of-Bonower.i¡ and to insurance poticies in force siuttiuss to ih"
furchus*..
it ioo¡¡.1; Ugni
Sr;c1lrity lnifiù;1erlt Ð BlryDæi, Ini, ûú10
Page2oflÙ. ' ' .:. ,
t
l, ,'
4.. :Occupancy, Preservatlo¡, Maintenance and Prgúection of the Properfy; Borrower's

Ioan Application;
Leaseholds. Borrower shall occupy, establish, a¡d use the Property as Bono'weCs principal ¡esidence after the
execution of this Sect¡rity lnsFument and Bonôws (or at least one Bonower, if initiaily more than one pErson are
Bonowers) sball continue. to occupy the Property as Bonower's principal residence for the term of thi Secuity
lnstrument. I'Principal residence" shall bave the same meaning as in dhe Loan Agreement
Borrower shall not commit wasfe or desEoy, damagé or subskntially change the Propcrty or allow the property to
deteriorate, reasonable wear and tear excËped. Borowe¡ sball also ¡e in ¿efautt'if Éonower, d'ring the loao
application process, g'ave rnaterially false or inacct¡rate infcmation or statements ø Lender (or failed to provide
tender witlr any material information) in connection with the loan evidenced by tlæ Note, including, but not liû-rited
to, representations concerning Bónowds occupancy of the Propaiy as.a principal residence. -if this Secúrity.
I¡shr-rnent is on a leasebold, Bonower shall comply with tlre provisions of the lease. If Borrower acquircs fee tiüã
to the Property, the leasehold and fee title shall not be mergcd u¡less Lender agrees to thi merger in *iting.
'5. Charges to Bor¡ower ind Piotection of .I¡nder's Rights in the p¡operty, 'Borrower
sùall pay. all
governmental or municipal.char-ges, fines and impositions that,are not included in paragrapb 2. Borrowgr.
shall pay
these obligations on time directly to the entity which is owed tlie If failure to pay would adveisely.¿d'si
¡iayment.
r - I -t- i_-¡-..--.
¡¡¡ iitç .l''rupsîb/, upon Lencier's rcquest' Borrower shall promptly furnish to Lende¡ receipæ
ij€nciÉi's ¡t¡iei€si -.-- ¡t--, ñ._ .
evidencing these payments. Bo¡rower shall prompúy discharge any tien whicb bás priority'ou.i,fri, security'
-
Instrument in the manner provided rn Paragraph l2(c).
lf Bo¡rower fails to make these paymørts or the properly oharges ¡equired by Paragraph 2, or dls ûo perform any
other'covqrants.and agreements contained in this Seot¡rity lnsfument, or'there is a legal proceeding that may
sigrrificantly affect tær¡deds righs in'the Ptoperty (such as a proceeding in bankruptcy,-for condemnatior or to
enforce laws or regulations), then Lender may do and pay whatevet' is necessary to proteòt the value ofthe property
and Lendeds rigbts in the hoperty, inoluding paylîsnt of taxes, hazard i¡s¡.nance and oúrer items mentioned
in
Paragraph 2.
To þrotect'Lendø's securit¡r in the Property,. L.ender shall advance and charge fo Bor¡ower all amounts due to tbe
Sqcrqar-y for the Moitgage Tnsurance freniW ("MIP.) as d.efi+çd in ibe Loan egreemenr as well'as all sums.dup
to
the tosn servicer for servicing activities ("Servicing Fee") as ifefined in.tlæ t¿an Agreement. Any anöunts
disbursed by Lender t¡nder thls Paragrapb shall becóme an additional.debt of Boiower as-provided f", á th"
---, L";
Àgreement and shall be sesüed by this Secu¡jty.Instrument. ,1.
6, Inipebtion. Lendpr oi'its agent may enter on, irupect òr r¡ske appraisals of the pmperly in a reasopable
maüner ând:.at.rÉasonable times proüided that Lendei shdl give the Bonower noticæ prior to any inspecrion or
appraisal spêciÛing a purpose for the insfd'ction'or aÊpris;t w¡ich m,¡si;q *ùr.d'i; il"ãJr.*'*ä;î',h"
Property- Jf the Propøty is vacant or' abandoned or the ioan is in defau lt, Lender may râke reasonable .irtion iå
' :
.
protect and preserve suú vâcant or abandoned prope'ty witbout notìcb to the Borrower.
. 7, .Co¡demuatiop The pioc*ils of any awud. dr claim for damages, {irect oi consequential,.in con¡ection wltb
4[rv.conilernnation; br oiher taking óf aiìy pgt of the Property, or foi.co¡veyancd in ¡1"¿ e¡"J"*i"ti;;.rh"ll;;
paid toläder. The proceedq shall be appriêa ññ tò th; ti"øi* or.nv in¿tj¡i"¿ol*i "f
il.;;il;ïrîil; iiot];;
. .' Seconil S9Curity. Instnimer¡t'held by theSecretary on the Froperty, andiben to the reduction of the
-ã"OtørË-
uiider tÉeNote and'thÌs:Seor-aity l¡str¡mørt, Ani pro"r"¿"'*rr; ;äff*q;äi"î¡/rtu",äräjtË
"x""rs
. inilebtedntxg pniier tÀp'Note anã ilric Securiry Insrrqmqúr *,*
Ue paia .¡. áìfry i"eáüy *ii[ãìür***
..'........ "
' , .,8..
..Fees.
L,éndq rnay coÎlecrfees and cliarges authorÞed by the Seçretâry. .. : '.'
::
2. Gréunds fo'rAccéleration of Debt.

.:
-Hq*øll It MERß Seilrity lnstrumcnt
Psge 3 of 10.'
I Bay Docs, Inc. 0il10
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I
(a) Duc and layable. Lendcr mÊy requir€ immediate payment in fulI of all sums secured by this Security
Instniment if,
(i) ÀBorrower dies and the Prorperty is not the prirrcipal r€sidence of at least one surviving Bonower; or
(iÐ All of a Bonower's title h the Property (orhis or he¡ beneficiai ilrterest in a tustpwnlng all or part of
the Property) is sold or otherwise transfened a¡d oo other Boirower retains (a) title to the P:roperçy'in fec
simple' (b) a leasehold under a lease for not less tha¡i 99 years'wbich is rcr¡ewable or a leaip trãUng a
rernaining period ofnot less than 50 years beyond the date of the tfi)th birthday of the youngest'Bonow"er,
or (c) a life estate in the Property, (or retains a beneficial interest in ¿ bust with such an inærrst in the
Property).
(b) Due and Payable wifh Secretary .dpproval. Lender may re.quire immediate payme,trt in full of all.sums
secured by this Security Inslrrnnen! upon approval by an authorized rq¡esentdive of the Secretary, if:
. (i)
The ProP€rty ceases to be the principal residence of a Bonowø for reasons other tha¡r death and the
Prôperty is not the principal residence of at le¿st one other Borrower;.or
Gi) For a period of Ionger than twelve ( 1 2) consecutive montlm, a Borrower fails to physically occupy the
n_opry bæ4use of phybical or mental ill¡ess and the Pioperty is not the principal ruidãnce of at least one
^¿L^- D^r^.-.---
uu¡gt uurruwg, u¡--
(iiÐ An obligation of ths Bonowcr under this Security lnstn:rnent is noi pirformed.
(c) Notice to Lender. Borrower shall notifl lænder whenever any of the events lisred in paragraph 9(aXii)
and (b) occur,
(d) Notice to Secretary and Borrower. Lender shall notiÛ the Secretary and Borrower whenev€r the loan
bgcoùes due and payable under ParagraÉr g(aXii) and (b). Lender shall not have the right to commer¡ce
foreclosure untjl Borrower has had thirty (30) days.aftø notice to either:
. (Ð Corrcæt the mâtter whìch reiulted in..the Security lnsa¡ment corning due and payable; or
. (ii) Pay tlæ balance in full;.or
'
(üi) Selr the hoperty foi.thelesser ofthe balance or 9S%oof the appráised vaiue and apply theiet proceèds
of the sale loward tåe balance; or :.
. (iv) Provide the lænder with a deed in lieu of foreclosu¡e. . .
(e) trusts Conveyance ôf a Bonbwet's.interest in the Property'to a ûust which meets the rø¡uìremenb of the
Secretary, 9r conveyance.of a trust's intqrests in the Property to a Borrower,: sball irot.te conçidered a
óonveyurcefor purpoÄes of this Paragraph 9. 4 hust shall irot be considered arr åccupant oi ¡J."ì*ä"."¿ ,"
' hayfng ä
¡þcipal t'øsidence for ¡iurpixes of thìs Þaragraþh g. ì '.
':
, !Ð. ,
Mo{bugç llot InsuËe.d. Bonówuþgfws that should tnis Sec*rity Instument and the Notþ not be'eligible
foi i¡surånce tinder the National. Houling Act within eight (8) grontJæ from the Cate .ùereofl Learder máy, its
!1
.éptioq rëqqire imdeliate paym€nt in fr¡il of all.sumr rä,ioJuy tttis s"r*içy.
_inirt"i;f l-räiilà*rrn
o-fariy authoiized.agent of the Sècreta¡y dzrtéd subse4uent to eight (8) ¡n*tus ûãm tte date hereof, deciininþ to
rqsufe qhis Seciritty' Ins.truqient *9 thr Nofe, shall b€ deem€d .conclusive þioOf of such'irleligi6ifrry.
. Notwilh$trrnding the foregoing, thislôþtiól rhay iot be.exeicísed
þv.Lendq when tle ìrnavailability rif inirirance
i¡ þotgly due to Lend€ds failqr-e to rernit mðrrgage insuayè premi. qm t9 tbè
s.
Qeueçry,: .. . .,. .
:forrówer
Np Def¡cië¡W
f3dSmeqts,
shail haúe no nersonal ìiaUiUty øi'p"y.*qt of rhô debt æcured bi thi. 6
Høreari In lúÈRß Seadrilnst4iinen '

Page4ofl0' .
Seæurity lnstrument. Lend¿r may enforce the debt only through sale of the Property. Lender shall not be pennitæd
to obtain a deficiency judgrnent against Borrower'if the Secr¡rity Inshument is foreclosed, If this Security
Instrument is æsiped to the Secretary upon dønand by the Secretary, Borrower.shall not be liable for any
difference between the mortgage insu¡ancê benefits. paid to tænder and the outstanding indebtedness, includin!
accrued interesl owed by Borrower at the time of tlre assignmenl
11. Reinststement. Borrowdr has a ¡ight to be rcinstated if Lender has required imurediate pry*eni in n¡ll. fn¡s
rigbt applies even after foreclosure proceedings arc instituted. To reinstate this Security Inshr¡rnent, Bonower shall
corr€ct tlæ condition which resulted in the rcquirement for immediate payment in n¡n. Foreclosure cosfs a$d
reasonable and customary attorneys' fees and expenses properly associated with a forectosure proceeding shall.be
added to the principal.balance, Upon reinstatement by Borrower, this Security I¡stument aùd the obligations thai it
secures shalt re'main in effect as if Lerider had not required immediate payment in full. However, iender is not
'required
!o permit reinstatement ifi(i) Lender îæ accepæd reinstatemenì áfrer the commencement ¡;;;*;;
"f
proceedings within two (2) years immediately preceding the commencement of a cunerit foreclosure proceeding, (ii)
reinståte&ent will preclude foreclosu¡e on diffe¡ent grounds in tho future, oi (iii) reinstatement will advasety affeci
the priority of the Security Insl¡ume,nt.
12 First úen Sf afus.

(a) Modification' Bonower aBrees to exûcnd this Seeurity lrtstr:ment in accordance rvith this pa,agrcph
l2(a) If Lender.deierminès that the original tien status of the Security hsftuúrent is jeopardized under st¿tà
law (includiirg but not limited to situations where the amount secured by the Security l¡sÉr¡rnent equals or
exceeds the tnaximum principal aflount stated orthe maximr¡n period under'which loan advances retain the
same lie,n priority initially granted to loan advancæ has'expired) and state law permits the original liql stdus to
be maintained for fi.¡tr¡re loan advances througþ the execution and recordation of one ot tnorr documents, then
Lender shall obtain title evidence at Borrowet's exp€nse. . If tle title evidence indicates tbat the property is not
encurnbered by any liens (except this Security Instument, the Second Security Instrument ¿escriUe¿ in
Paragraph l3(a) and any subordinate liens that the Lender determines will also be suboldinaæ to any futue loan
advances), Lender shall request ttr Bor¡ower to eiecute any documents neces'sary tb pt'otect thd plority of the
lien status of futr¡re loan advairces. Bor¡ower agrces to e)iecut€ such documents. tf it"t. law does noi permit
ttrg origirial lien status to be extenôed to fi¡ture lpan advandes, borrq*.. will. be deemed to have failed tä have '
þerformed ù obtigatiort under this Security Instn¡menL.
(b) Tax Deferrat Piograms. Borrower shall not participate in a real estate tax deftrral piogram, if any liens
greatgd by.tbe tax
fefenirl are not subordinbte to this Security Instrr¡¡ent.
:
(c) Prior Lieng.Borrower shall promptly discharge my lien whþþ has prigrity over. this Security Instrument
, unleqs Bor-rowerr (a) agrees t4 writþg to the payment of the qbligation secured !v thç lieri io . *"*"i
aðcætåþle to L"eoder; (b) conæsts in good faith tt¡e lien by, br defends agairrst enforcement of the lien i¡\.iegal
p'totq|E!. wlich þ the.Lender's opinion operaþ to.prevent the ehforcriment. of thê lien orforfeitr¡r" of Ãy
part of the Frqperty;:or (c) s.ecuies from the holder ofthe'lien an agreenierit satisfactory to tendersulorOinátini
thg.]ig,n to ellannounts.secrqed by:tþjs.security hstument. If Lenãerdetermines tlat any p.art of th.e property is
fubjqct'to a lien which may attaín pribiity over this gecurity lnitruneirq t elrdef may þVe nooo*o u noíi.¿,
. .i.Oenti¡,ing i?te tien. ¡Borrowef shalisatisfo.the lien or tak" on" or morc of the abdorie set forth irii¡illd
. . (I0)'daysof thegir;ing ofnotiiir. "to;"
l
'
13. Relatiôn3lr¡jo SAon_q Security Instrunent. -. . . . .: . ,. . .:
(à) Se.cotrd Fecufity Iirstruinpnt - trt" cirder tç secure pãymenis whicb the Seoctary r4ay make to pr oil behalf
óf Ror¡ower nùnuani.tg Section 255(iXlXA) of-'tþe National 'Housing Act and the Loari Agreemenl tþç
'
, SeCretåry.hds required Bölr.ôwer to execüte, á Seco4d Npte and.a
Sec'snd Secirity lnstririre¡it on tfi fropøi.:l
(b) Relqtionship df Fiï1 and Securify Inòtfumenti. Paymeuts made þy ûe $åcretary shal'ntrt be
fecoird
j
.. :
{*lrl Ii#N seczuity !'rütrunenl'1 :: . :.
Pageåg{{o j.. . .. . ,'' ,:...' .

included in the debt undø the Note unle¡s:

(i)
This Seourity Instrument is assigned to tlre Secretary; or
(ii) The Secretary accepts reirnbursement by the Lender for all paymørts made by the Secteiary.
If the circumstqnces described in (i) or (ìi) occur, then ali payments: by the Secretary, including interrst on
the payrnents but excluding late charges paid by the Secretary, strall be inoluded in tbe debt u¡der tbe Note.
(c) EffecÉ oE Borrower. Wherr there is no assignment or reimbursement as described in (bxi) or 6¡ anO tne
Secretqry makes paymenfs to Borower, then Borrower shall nott
(i)
Be re4uired to pay smounts owed under the Note, or pøy âny renfs and revenues ofthe Property under
P¿ragraph 19toLenderorareceiveroftheProperty,untilthesecrdaryhære4uiredpaymentinfullofall
ou6tanding and accrued i¡terest under the Second Note; or
¡rinciRal
(ü) Be obligaæd to pay i:rterest qr shared.appreciatio,n under the Nste at any time, whether accrued before
oir after thg paymenþ by the Secretary, a¡d whether or not accrued i¡¡terest has been included in the
principal balance under the Note.
(d) No Duty of the Secretary. The Secretary has no duty to Lend'er to enforce covènalrts of the Second
Security Instrunre,rt or to take actions to preserve the vaiue of the Property, even thougir Lender may be unable
to colle¡f.amounfs owed undsr tfie Note because of restictions in this Paragrapb lJ.
14. tr'orbearance by Lender Not a Waiver. Aly forbearance by Lemder in exercísíng any right or remedy shall
not be a waiver of, or preclude the exercise of any right or rønedy.
15. Successors and Assigus Bound; Joint and [ìéveral Liability. Tbe covenants and agreements of this Security
Instrúreot shall bind and beneñt the successors and assigns.of Lender. Bor¡owermay not assign any rights or
obligations. under this Security Inshur¡ent or under the Note, exc€pt to a trust thât toe.t the requirernents of the
Secrefary. Bo'rrowet's covenanb and agreernents shalt be joint and several.
.1'6. Notices. Any notice to B. orrower provided for in this Securíty lnstrument shall be gven by. delivering jt or. by
mailing.it by first cfims mail unlesb applicabië law reqúes usé of another'rhethod. The i¡otice shall bé di¡ected tô
. the Property Address 9r gny othgr address atl Borrowers jointly designab. 'A|ry nolice to Lender shall be given by
.'lfirst c'iass mail to Lender's address .søted herein or any adùess Lender designaæs by notice to Borrowu, Any
l'noti"" p,rovided fur in this Security Instrument shall be dÊemed to bave been givèn
tó Borrower or Le¡rder,when
given âs providedin this Paragraph 16.
ï7. .Goveming Ltw; Severabiliúy. This Securiiy Ingúr-unent shall be govemed. þy Federal law andthe iaw of the
''' jurisdiction iirwhiôh'th'd Property is located. ln the evdnt thät ány'provisl'on or ciause 0f this Serurity Ilstqurnent oq
the N_ote confllcts lvitb applicable f aw, such conflict shail not affggt gtfrg provisioùs of rbis Sequrity Instrument'or
the Note which can be giveir effect withdut the'conflicting proviqiob. .fo tþis end tbe proVisions ãf tnis Secgrity
Instrrime¡t an the'Noteãe declared.to be sevdr¿ble, ' -
; ' ' , ':
18.' Bbrrower's Coþy., pbnowei sþIl be given one bonformed copy of the Note aurd tttit Sê¡rtrity lnsnurnent..
' .., .: .....
NON-UNIFORM.COVENAÌ{.[S. Borrower and tænder fi¡rther covenant and agree as follows:
tÞ' Assipment of Renti, Bono.wo uo.çondìtíonatiy assigrs and transfe¡s to l-sr¡der all the ¡ents and revenues. of
*re-Pioperty.'ggooyo autliorizçs Leqdq or [,end#s ugätr..tt, øti."t t¡" r*" *à ;;r;;;;d n*ü..dü;;
each ienant of iUe Properly to.pay the,reiæ.to tæhde¡ or.Làdet's agents Howdver, päor ïo rci¿e¡i iotice to
Borrovùer of Borrower'd-breach of arty coúäæt or agreemert in the Sebuiity Instn-uriarÇ Bonowe¡'.shali coliect,and
,:. :. . . ;
tlawaitt+-uensseÊülty!,tsÞ.am?1t .' .. g 1ørÐæs,Inê,06/lò

' Page 6.tf 10. .'
reçeive all rents and revenues ofthe Property as trustee for tbe benefit ofl¿nder a¡d Bo¡rower. This assigruneut of
rents constitutes an absolute assignment and nst an assignment for additional security only.
If Lender gives notice of breach to Borrower:. (a) all rents received by Bonoucr shall be held by Borrower as tustee
for beirefit of Læoder only, to be applied to the sums secr¡red by this Security Instument; þ) Lender shall be entítled
to collect and receive all of the rents of the Property; and (c) each tenant of the Property shall paj' all rents due and
unpaid to Lender or Lpnder's agent on Londer's written deqrand to the tenant.
Borrower has not executed any prior assignment of the rents aqd bas not and will not perfomr any act that.would
prevent Lender from exercising its rights under this Paragraph I 9.
fender sball not be re4uired to enter upon" take contol of or mair¡tain the Property before or after giving ncice of
breach to BonoweJ. Howeveri Lender o¡ a judicially appointed receiver may do so at any time tþre is a breach. Any
application of rqnts shall not oËe or waive any default or invalidate any other riglrt or remedy of tænder. This
æsignment of ænts of the P¡operty shall tennìnaæ whe¡i.the debt secured by this Security lnstru¡xent ls paid in full.
20. Foreclosure PrccedgÌe, If Iænder requires immediate payment ln full under Paragraph 9, Lcnder may
iuvoke the pover of sale and any other remedies pernitted. by npplicablc law. Lender sholl be enfitled to
.collect al! expenses lncurre.d in pursuing the rc$edies pnovitled ln thir Paragraph 20, ineluding, hut not
llmiúed to, reasouable attorneþt fets and costs of tiúle êvideuce.
If lænder invokes the power of sale, Lender shall glve Borrower ndtlce of sale ln the manner provided in
Paragraph 16, Iænder shall publish a notlce of sale and shall sell the Property af the time and place and
under the terms sþecilied ln the notice of sale. I¡nder or its designee may purchase the Prope¡ty at any sale.
The proceeds of the sale shall be applted.in the following order: (a) ûo all expenses of the sale, including, but
not limited to, reasonable attorneys'fees: (b) to oll sums secured by this Security Instrument; and (c) any
excess to the person or persons legally entltled to it
21. Llen Prlority. The firll amount secured by this Security lnstrument shall have the same priority over any other
liens o¡ the Proporty ab if the'fult amount had beÊn disbursed on the date the initiat disburseute,rrt waç made,
regardless of the actual dæe of.any disb¡¡'éement. The'amoLs¡t secured by this Security Instrument shall include alt
áirect payments by Lrüdbr to Boncirivor and all otlrer loan âdvaucès þermítted by this Sdurity l¡seunieóç for any
pu¡þose. This lien prio¡ity shali apply notwithsta¡ding any State constiü.rdoá, law ot rrgulaticm, except that $is lien
piiority ihaltnot'affe¡t the priority of any liens for unpaid State or local governaental unít specíal asiessmerns ör
tåxes.
'Under
21. .Adjustoble.Rate Í'eatu¡e. tbe Note, the initial stâûed interest rate of 'Tho and 169/1000's'percent
(2,t69%) which accrues on the unpaid principal þ.1?o* ("lnitial lnferest Raie") is iubject to chanlo, as desoribed
béior,v. When the inúerest ræe. changé, the qèw âdjustêd inter€st rate will be applied. to tho total outsbnding
princiial balauce. Each a justme¡rt'to the interêst r¿ite rryiit be ¡ase¿ upo-n the.One-Mónth London Intérbaûk Offôied
.Rate ('IrlBO$") as m4ile
availaþle in the "fvfoney Rates" sectim ofttre W¿ll SfteetJoufliâl ("Index") pius a ma¡gin..
If the Index is no lon-ger available,'l,ender will be reqùirèd to use any..ildex presöribed by the Deparhneirt of
Housing a¡d:Urban Óevelþment. The new i¡ldex will have a hþtorical rnoveine¡rt substaritiaþ similar to'the
o4ginal index,. âfirl'tlr6 new ibdex aad margi¡ will r,esult in an annual pgrc-€qtage ratê't¡at.is. substantially similar td
the râte in èffeEt at ttr time the oniginal þdek becoaes ùoavailable.
t¿'o¿ei wiit pèrfonn the caloulátiôns.described below.io detçnnine the new a justçd itrtêrest rate; The inter,est tatg
may changç o¡ th,e first'day ofMircË i, ZOr¿,'mA on ihat day óf each ru."ãrding ysa(, X
the firit day of each
súcde€ding nnntti (dChange Date") until the
-t':-
-
loan rþ repaid in : full... :
.r i- '.- ' ''.
, : t. l'
... . .: ..-t: ,.
'The
valûe'of tlæ Index witl be determine¿, uSing ihe most ieceot tndex fi!¡rre avaiìable thirty p0) days tefL" tn".
':
Ìlawa it ld ]vÍEtil Secrlity insinnent ñ Bav.Dæs.Inc..0ü10
Page 7 of l0 ' .:.
Change Date ("Curre,nt Index"). Before each Change Date, úe new interest rate will be calculated by ad.ding a
margin to tlæ Cur¡ent lndex. The sum of the margin plus the Cr¡rrent Index, subj'ect to tht rale limitations below,
will be called tbe í'Calculated lnterest Råte" for each Change Date. The Calcutated lnterest Rate will be cornpæed
to the interest rate in efilect imrnediately prior to the cur¡ent Change Date (tbe "Existing Int€rest Rate'):
Annuolly AdJusting Variable Rate Feature - The Calculaùed Interest R¡te will never inuease or
decrease by more tb¿n two percentage points (2.0%) on any single Cbange Date. The inte¡est rate
will never be more tban five percentage poiuts (5.0%) higher or lower tban the Initial Interest Rste
stated in Pæagraph 2 of the Note.
X Monfhly A'dJusfing Vaúable Rate I'eature - The Calculaþd f¡torest Raie will never ins€ase
above 12.169%.
The Calculated Intsrest Rate will be adjuste.d if necessary to comply witb tbe rate limitation(s) desmibcd above and
will be Ín eflect until tbe next Changp Date. At any Change Date, if the Calculâæd Interest Rate eqrrals tbe Existing
Literest Rate, tbe interest.râte will not cbange;
23. Release, Upon payment of all sums secured by tbis Security lnstunen! Lende¡ shall ietease this Security
I-"ç.---Ì Fln*rwæchr'llna.,onvr¡nne¡loiinn¡n¡ro
É? ¡vvv¡uuuv f Âñ¿lô?tuôr,nlra*naIlm..'æ^€-^S'¡-^f-^-i--+L¡.Q^^,.-:¿.,
rv¡ ¡ur@u¡Ë, $aù vuvqrùJ
Iirsfurnent, but oniy lf t¡e iee ¡s iaid to a ttrird party for services-ren¿ä¿ an¿ the chægÌng of tbe fee is pennitted
under applicable làw.
24. Oblþatory Loan Ädvances. Lender's rosponsibillty to make Loan Advances unde¡ the terms of the Loan
Agreement including Lo¿n Advances of principal to Borrorver as well as Loan Advances for isterest, MIP,
Servicing Fees, and other charges shalt be obligatory.
25. Waive¡s. Borrower relinquishes all right of dower and curtesy in the Pro'perty.
26. .Ñominee Capacity pf MERS. MËRS serves as mortgagee of record and secured party solely as norninee, í¡
'an administrative capacity for f¡nder and its successors and.assigns and holds.legal title to tbe inûeiests g¡¿nteC,
.assigned, add transferred berein. All payrnenfs. or deposits with respect to tbe Secu¡ed Oblþtions sball be madà io:
'Lender,
atl'advuices i¡nds the Loan Documents SháIl be made by tender, and all coris'ents, apþhovals, or óther
determinalions required or permitted óf Mortgagpeherein shall be made ùy Lender. MERS sball at all tímes.comply
with the instuctioúo of Lender and its successo,rs and assþs.. If necessary to comply with law or custcim,.lvßRs
(for the berieft of lænder and ils suocessors and assigns) máy be dircçted by.Lendei to exercìse any or all of tbose.
' intereslr, íncluding without linritation, the rigbt to foreclose and selt tbe Plooerty, ahd take any action required of
knder, including withoi¡t limitation, a release,.discharge of'recørveyancq of this Security Instn¡ment. Subject to
the foregoing all iefeie¡rces herein to 'Mortgagee" sball ínclude Lender and its suicessors and assips.
.. :
27. Ridets to this Seçurity Instrumeirt. .If oneer,mo¡e ride$ ae.execufed by Borr.owFr and recoided togetber
witb this $q"utit Instrurnø-tt, the covear'ants.and.agteements 9f rider shall.be incorporated into ând sbåll
eaob sucb
. a$end and Supp[ement tbe coven¿ints ánd agræmerits þf this Security Instrgrent ãs. if the riaerls¡ weie a part of thii
$ec urity Instruri.reot.
icükl"llrtd""tl*areapplicàblel '., ,
r .
.Condominìum Rider PUD Ricier :
Sba¡ed Appreciation Rider othèr
fl ow3il 1
d ÀlEÊß.Seilrlty Instñoneût Q Bay Docs,lnc. 0&10
PageSofl0
BY SiGNING BELOW, :Borrower accepts and agrees to the terms and còvenants contained in this Security
Inshument and in any rider(s) executed by Borrower and recsrded with it,
Wihesses:
.4;r, ,q/, 't'Æ-Þ,=ã-

LINDÀ lrdlsHoB PETR¡,rrIS (BoRROWER)
' Notarv Acknowledseme-n-t

State of Eawaii
.;;;w;;JILL-
On Janua¡¡-03. 2011. befcre me persooally appeared f,inCá.msloe Petraitis, to qq known to be the person(s)
l-^^-:L-¡ :- ^-l ...L^ ^1.^^.-¿^l
ûüsuäûiiii ¡¡ì.¡i¡iü idi¡ü üri€Cu-'Êû .L^
irìO ¡--^^^:-- t--L -- -' , -,i
ÌOÍêgOr-uB ir-rsï¡'i,t,ii6ni --r - r I r ,r . /ï'N,.
ailü aûiüiowir,rigeci iitai 'qSllyihey eXecUie<i the Same as
¡i¡vGDreir free act pind deed.
\-¿
Given under my official seal on J¡nutry 03, 2014.
Signature TSEAL]
Title of the Ofticen
My Commission Expires:
/ t.,
FE I .rÐ /o
.-'È:*#,?-?
PLt4E
=- :' i :
z- i.. cornir*tro' .i S
?,,
Haw àt I lt M ERS Seet lÍy Íw nnent ÐBayDæs, Inc.'Q&l0

Paþe9.of t 0
Case
I
E)ftIIBIT A
Exhibit A to the Mortgage givan on January 03, 2014, by Linda Mishoe Petraitls, as fee owner ("Borrower") to
Plæa Home Mo.ltgage, Inc. ("Lender"). The Property is located in the county of Maui, state of HI, and ìs
described as follows:
Descripticm of Property
Legal Desctiption attaohed hereto as 'ExhibitA' and by this ref-erence made a part hereof.
H(it)ra ti'td MERS Secllttty I n stnnøt " A BayDæs,|nc. 06/10

Page'l0ofl0 .
TMK 2 2-3-023-129
uffi.IBIlIr r'Àil
i'
All of that certain parcel oi land situate at Omaopio, Kula, District
of Makawao, Island and County,of Maui, State of Hawaií, described aq
follows:
Lor 204-?,,.äT"._0.503 acre, .4ìore or 'less, as. shown on Map !!!.r filed
Ín thè office of the Assistant Regístrar of the Land courtiE the
S'tate of Hawaii with Land Court Application No: 342 of Frank Gonsalves
Correai
Together viith access to Kulamanu circrer. a public highway, across Lo1
204-H, as shown on Map I4.? of Land Court.ð,pplication-No.-342, as set
forth by T,and'Court Order: No. 160596, filed March.2I.. 2005='
Being land(s) .described ín Transfer Certíficate of Title No. 907 ,9"77

issued To !{A],TER FRANK PETRATTTS and ],TNDA ¡irsHon PETR.ATTTS; husband
and wí.fe, as Tenant.s by the Entirety.
rÈ
BFING THE PREMISES ACQUTRED By I{ARRÀNTY .DEED Wirll COVENANTS,
COND]TTON S, RESTRTCTIONS ÃND RESER\TE.ö RIGHTS
.GRANTOR : RTDGELINE HOMES, INC., a Hawaii corporation

G'RANTEE 9TAI,TER FRANK PETR.A.ITIS and
LINÐA MISHOE PETR.AITIS,
husband and wifer.as Tenants 'by the Entífety
. DATED Jrine L, 2006
FIÏ,ED i""¿ ¿;";i õocum.nt,.No. ,343689G' :
-SubJect to 3ny and..afl liens and/or encumbÍánceç of record.
tl
t Case
t 1:14-cv-00353-HG-BMK Document 1-2 Filed 08/06/14 Page 30 of 58 PageID #: 40
Ì
.\¡ J
\\".
\^
STATE OF HAWAII
OFFICE OF ASSISTANT REGISTRAR
RECORDËD
January 10,2014 8:01 AM
Doc No(s) T-87751 1 5
on Cert(e) 807977
lsGuance of Cert(s)
/s/ NICKIANN IHoMPSoN

ASSISTANT REGISTRAR
ilr il illlllllllll ll lilll ill
1 212 DML
8.32400741
(A!EA AIOVE FôP ÞFl-ÔP DINII fNFôÞì,râ

Nt) ffçs7 *h
.{fter Recordation, Refurn by MaiI To:
PIaz¿. Home Mortgåge, Inc. P>úb) vlc
4820 Eastgate Mall, Suite 100
E, ö
San Diego, C^92121
Tax Map KrlyNumber: orp
['[IA Ca¡e Nr¡mber: 141-1623333196?-?,55
I¡an Number: 25f 3120f5
State of Hawaii
sËcoll{D MoRTcAcE
.; Grotl{E EQUTTY CONVERSTON MORTGA.GE)
.THISSECOND II{ORTGÁ,GE SECITRESANADJUSTADLER,I.TEREVERSE M'ORTGÄGE LOAN
. THIS MORTGAOE ('_!ecurity ¡rs6umeot", or "Seco¡d Security ihstrument") is give¡r oo January 03, 2014. The
" mortþagor ii.l-inda Mishoe Petraftls, as fCe owne¡ whose.address is 79 Kulamanu Circle,.Kuls, Ifl 96790
('ÌB.onower"),.This Sectrity Instrwíent iq gven to the.secretâry of Housin! and Urban Dèvelopment, whoie
busin'ess aod?ost gflìce address,is 45-l Severnth Street, $.W,Washingtop, Oõ 2b410 C'L€úder,'or.,iSecietåry,').
Borrower hai agreed to repay to Lende,l amo¡.nrts -which lændgr is obligâted to advance, iricluding firtur'e ádvanpes,
wÉpr the tbhnÀ of a Home Equity Conversicin Inan Agreeanent dat¡d the saine dàte Êq tnis Secuqity Ins¡¡¡¡¡1e¡1i
!"LoT Agreement'), The-agreement io repay is evidenced by þorrowds ñote daæd t¡e.åanç date as this Securíty
Instr.uinent ("SgconqNó,tei'). This Se*:r¡rity Instrqqre,ni securris to Lenden'(a)
¡ire repaymept of the debt evidenced by.
tþe.$econd Nôte,:irclúdiirg all fuh¡re advances, wí'th inte¡êst at ä r*e subjecqìo-gdjusir.neqt, and ¡ll.re¡¡ewalí
'pxtgtrÀions.and.mo,.dific*ìons oftlre
Seaoild Note, up to a maxigrum principal um¿uniof ¡t¡ne.Eundrcd Thirty-
.Eigh{ Thoutaq{ Twb llundred F¡try aüd 00/100 Dqllarr (U.S.$938,250,00);.(b) the.payment of,all'olher pums,
- r,vitn inærest, adii$ceC under Paraþaph 5 to'proæit thc òecurity of this Se¿uriiy fnrt *n*t or .ithowis, du"
thè teÈns 9{ùis Security Instrument;'arid (c) dre peiforûiance of Borrower's covenants anä aiye4ments under ";¿;
i:his
$ec.urjty Insf .tmrent and thc secðnd Note. Thp full debt including all amouhls tþscri.hed ì¡ tu),tUl, aild (c) dbove, ìf
. ' t1pt:paiä ea¡lièr, ís dud and paydble pn January t4, zós: ror tüs p*pÀ{ nrroierilritäúãortgage, grant
gnd convey 1o Lënder, with pòyvèr of.salø,{he foliowing describsd ffierty locaæd ín Maui Co¡mtv, .gai.Ïi,ïiU¡
j. . . : . :
llqva¡j 4 !?cltritylnttrunent.. '. -

'.ARarDæs,
Inè.06/tO
- .'Page I of l0 :
EXHIBIT ¡¡zrt
has the address of:
79 Krtlamanu Circle, Kula, HI 96790, and is descdbed more fully on Exhibit A attached to and hereby
incorporated into this Mortgage ("P¡opetty Address').
TOGETHER WITII all the improvements now or hercafter crected on the prop€rty, md all eascinents, rights,
appurtenances, and fixtures now or heteafter a part of the property. All replaðements ând additions shall also be
covered by this Security Instn¡n¡ent. All of the foregoing is referred to in this Security Insl¡ument as the rPrcperti."
BORROWER COVENANTS tlut Borrower is lawftdly seised of the estate hereby conveyed. md has tlre rigtrt to
mortgâge, grant and convey the Property and that the Property is only encurnbered by a First Security Instrunent
given by Borrower and dated the same date æ this Security Instrument ("First Security Inskument"). Bonower
waÍants a¡rd will defend generally the title to the Property agaÍnst all claims and deriunds, bubject to my
encumbrâflces of record.
THIS SECURITY INSTRUMENT combines uniform covenanÌs for national use and non-rmiform covenants with
limited variafio¡u by jurisdiction.to constih¡ta a unifonn security insbr¡ncnt covering real property,.
UNIFORM COVENANTS.' Bòrrower and Iænder covenait anil agr€€ as follows;
1. PaymentofPrincipalandlnterest. Bor¡owershallpaywhenduetheprincipalofandintereston,thedebt
evidenced by the Second Note. ' . '
2. Pa¡ment of Properfy Charges. Borrowçr shall pay all property charges consisting of taxes, ground rents,
flood and hazard iruurance premiuins, and special assessrnents in a tirnely mânner, and shall provide evidence of
payment to Lender, unless Lender pays prope,rty c.harges by wittiholding funds from montbly paymenfs due to thé
ilonower or by charging such payments to a line of credit as provided for in the Loan Agreement. Lender may
require Bomower to pay specified property charges directþ to the party owed payment even though Lmder pays
other propecty charges as provided in this Paragraph.
3. tr'ire, Flood and Other Hazard Insura¡ce, tlor¡ower shall iruqre all improvemenls. o¡r the Property, whether
now in existenbe or subsequently erected, against any hazards, casúalties, and contingencies, including fire. This
i¡sulaneæ shall be maintained in the amounts, to tÎre ex(ent Bnd for the periods required by L,ender. Bórrower shall
also insure,ail improvements on the Property, whether now in existe¡ce or.subsequently erected, against loss by
floods to the extent required by Lender. The insurance þoTcies and any renewals shall be beld by Linder ánd shall
ìnchde lois payable clauses in favor of and in a fonn acceptable to, Lrhde.r'. . ;
.ln the event of loss, Borrowêr shall give þnder imrnedia-te notÌce by rnail'. Løder may make proof of toss if not
mãde phomptly by.Borrower. Eachl iirstrance øimpany concemed is.høreby authorized'and.directed to make
pêyment for subh loss to tËirde¡, :mæad. bf to Bórro¡ver mrd Lender join$y. Insu¡ancè pioceeds shall be applied to .
iestoràtion or repair of the damaged'.P.roperty,.if the restoration or.repair is. econorjúcally ftäsible and Ledde/s
security is not lesséped. If 'the.restoratíon q repair is not êcono¡¡ically feasibte or Làder's sequrity would be
lessened; the inb¡¡rance procéeds shalï be applied fr¡st lo'the.reduction of æry indebtedness. urder.the second Noæ
and'tþi-s SeÆudty ksbument. Aly.e.xcess iasrgance Þrircpe4s.over arl amouut r.e,qu$ed to pby all::outstanding
indeåtednes$ iurder the Seconf Nqte a¡d this Security Instnrinent s.hall. be paid io the entity legally. entitled thereto. . ..
'..
In the eVent of foreolosure of this Secu¡ity Instrument cir othei tr'ansfer of title to the Þroperty that extinguishes the
indebiedness, all right title and intercst ofBonowcr in and to i¡rsr¡rãnce þoüöies in forcg siaiti*rto the purchqser¡
. :..
4. gccupaùcy, Preserúafion,.l\{¿intenance and Protdction of the Properfi.Borrower'g låan AþplÍcation;
:| _:
''
Ha\!)aít'Y .Sælrttl lrr:tnûnùrt Çt BayÐæs, Inc.O&fu
Poge2ofl0. t'
Case
'r
læasebolds. Bonower shall oCcupy, establish, and use the Property as Bonîwet's principal resídence after the
exe.cution of tNs Seaurity Instrrrnent and Bo¡rower (or at least one Borrower, if initiaily rnore than one person are
Bonowers) shall continue to occupy the Property as Boffowçr's principal resideince for the teIm of the Security
Instrrrnent, "Princþal residence" shall have thþ same meaning as in the loan A,greement.
Borrower shall inot ðommit waste or'destroy, damage or substantially change the Property oi allow the pl.operty to
deterioratç, reasonable wear and tear exceptd. Bo¡rower shall also be in default if Bon'ower, during the loan
applicatior process, gave materially false or inaccrrate information or statements.to lænder'(sr faitçd to provide
Lender with æry materiai information) in connection wiih the loan evidenced by the Note, includling, but not limited
tb, reprÊsentâtioas conceming Bormweds obcupancy of ttre Property aÈ a principal residenie. If this Security
Instnrment is on a leasehold, Borrower itralt comply with the provisions of tbe leaÉe. If Borrower acqirires fee title
tci the Froperly, tþe leasehold and f-e€ title shall not be merged unless Lender agrees to the merger in wríting.
I Cliarges to Borrower and Proúecfion of Lender's Rights in the Propert¡r. Borrower shall pay all
governmental or municipát c..harges, fines and impositions Urat are not included in Paragraph 2. Bormwer sþall pay
these obligations on time directly to the entity which is owed the payment. If faiture to pay would alvenely atreót
lænder's inter,eit ìn the ProperW, upon Lender's request Bô¡mwer shall promptly n *istr to Lender rcceipts
..,iá-ñ^¡hr !¡¡vw ñarñdtô
v f rsv¡rv4r6 +laÀê^ D^*^..,- .L^ît *-^--¡f,. ¿!:^^L^--^ ^--. r:^-
PeJ .t¡u¡Þ. uu¡¡vwe¡ oua¡r P¡urr¡PlrJ uÞç¡!ilË¡s 4tlJ wuJult L-^
uçl¡ -.4:^ù .! - ..¡
ilas pnunçy ovgr uus ù€gunty
Instrument-in the mannø provided in Paragrapb 12(c).
If Bo¡rowe¡ fails to rnake thesepayments or the property charges required by Paragraph 2, or fails to perfnrm äny
other covenants and agreernents conhined ix this Security Insfrunent, or tlrere is a legal proceeding that may
significantly affect LendeCs rights in the P.roperty.(such as a proceeding in bankruptcy, for condernnation or to
e¡rforce laws or regulations), then Lender may do and pay whatever is necessary to protect the value of the Property
and Lendels rights in the Proper{, including payment of taxes, hazard insrnance and other items mentioned in
Pa¡agraph 2,
. Tp protect Lender's secLriry in to Borrower all amounts due to the

thei Property, Le¡rder shatl advancæ and cbarge
Seôretary. for the Mortgaþe Insuranæ Þremium (':MlP") in the Loan Agreemeàt as well,as all sums due to
as defi¡ied
'..the loan. Sgrviçqr fpr.ç-e.rvìcing
F.c$vitiçs ("Servicing Ee-çl') as {efinèd in thç.I¿oan Agieement. Any..amç'rnts.
.' disbursed by Lender uniler this Paràgraph shall becone un.¡¡¿¿itidnat ¿ebt of Borrower as provided for i¡t ih" fo*
Agreement and súall be secuiel ty ttris Security'lnstrr-onent.
6..Ilspection, Lenderorits'agentmayeriteroqinsp€ctormake:.aþþraisalsoftheProrpertyina¡easonable
. m^r,te* aod at ressonable times þrovided ttrat L€.nd€r shall give the Bonower nofice prior.to any inspectioú or
ap¡iraisal specifying a pu¡pose fôr the inspebtior or aþpraisal which must be related toìLenrieis.interest in the
.
Ptop*qtY. If tbe Property is vacant or abandonêd orthe:loan is.in Cefault, I-,pnder may takr'reasonable action to.
protectend.prqserye *:h ol abandoteg Prope.ttywithgut ngige to tbe Borrowel ... .
l*qnt
7ì Co¡dcmnatign. The prooçedi of any. award-órrclaim for qa;nages, Arrect or conse,quential, in connectióh wi1þ
any côndenniraticn Or ôther taking of any part o! tbe Propert¡r, or for conveianbe in pla.ce of cond¿miration, Shall óe .
paid. fo L€qde¡. The prroceeds shall be applied first tci the reduction of lury ødeþtè¡ness under the Second Note and
' .thìs'security Inètrument: Any exc€ss proó;eds gver an erriciunt reguired to pay all ouÉstandingindebiedness undeir
'
.
ttie Seciul¿ Note and tbis Sequrity Instunent shall be paid t'o the eirtity. legäiiy enritled theretp. .
: ... ' ,':

' j , 8. Fee¡. Lender pay collect fte's and charges.authorized by the Sçreqry for the uome Ëqrity Cgnversiori
' :''.
..
t Mortgage lnsunncæ Piograqu r
'.'..,. .:.-.
"':,': '9.
flaaait 2ú Seawlt! Initrumøt A Bqy.Dæs,lnc;.0&1.0

Pagi: 3 of I0
Insm¡rnent if:
(i)
A Borrower dies and the Property ie not the prinoipal residence of af least one suwiving Borrower; or
(ü) All of a Borrou,e/s title in the Property (or þis or her benefioial interest in a trust owning all or prt of
the Property) is sold or otherwise transferred and no other Bonow.er retains (a) title to the Properry in fee
' simple, [b) a leasehold under a lease for not leis thân 99 years which is.re¡rewable or a lease baving a
rernaining period of not less than 50 years beyond the date oftne tOmn birthday of the youngest Bonower,
or (c) a life esate in the hop€rly, (orretains a bcneficial interest in a fust with such an.interest in the
Property); or
.
(iü) The Property ceases to b'eihe principal rqsidence ofa Borrower forreasons oiher than death and the
Property is not the prínoipat resideuce ofat least one other Borower; or
.
("1 For a period of longer than twelve (12) oonseoutive months, a Borrowe,r fails to physically óceupy tire
hope¡ty because of physical or mental illness and .the P¡operty is not tbri principal residence of at least one
' olher Bo¡Tower; or.
'.
(v) Ân obiigatiorr oithu Eorrower under ihis gecurity -tnstrument is not perfirrmed.
to Lender- Borrower shall notifli.the

!!) N.oAc!occur.
' 9(aXü)-(v)
tænde¡' whenever any of the events listed in paragraph
.(c) Nofice to Borrower. Lender shall notifr Bonower wheneve¡ the toan beçomes due and payable under this
Paragraph g(aXíi)'(v). Lender shall noi have the right to comÍrenoe foreclosure until Bonowå has had thirty
(30) days after notice to eíther:
(i) Cgrrect the nratter which resulted in the Securiiy Instrunent coming due and payable; or
(iÐ Pay the balance in full; or

:
. (iii)
Sell the Property Tor the lesser of.*re balancs or gilToof the appraiçgd v?t.ue and appìy rhe her proceeds
.
oftbe sale towa¡d the balance; or'
(iv) Provide the Lqrder with a deed in lieu of foreclosu¡e.. .
(d) Trusts. Conveyance of a Borrower's interest in the Property.to a Euit whióh meets the requirements of tbe
.the Properry ø a Bonolver; shàll not te conside¡ed' a
Secretary, or conveyance of a trust's interests in
ionveyance for pr-rposes oftliis Paràgraph 9, A tr,¡it shatl nc úe oonsidered an áccupant or ie considdred ai
háving a principal.residg¡roe {iir purposés of this p,a¡agaptr 9. .
10. No Deficiency Judguents. Borrówer sball have no personal iiit¡ititv for pajrrnent'of the debt r*cured by this
Security
instumedt.
I-ender nay enforce ttn debf cÀþ tbrougþ sale of thã
PtopSrty. Leuder rtratt not" tir pãittJ
!o obtain'a deficiency judgment against.Bonowèr.ifthe security initrumErtii forecioæd.
11. Rétnstatemenl Borrowgr has a right io,be rbiirstated if Lænder has.required immediáte
Éayn.tent jn fuì[. ThiS
right appliep. qvT."û* foreblosure pSo"a.aingr ap instituteii.. To reinsþL iil i;t*lt ñ,üäi-ä+¡**,¡ri
corieet tbe coitditioh. which resriltird in:the requiraneät for.imrnediatp paymer¡i in fuT[ Fo'replosu¡q.costs and
, ,reaso¡abie and customary aüomeys' fees and. expøôes.properly associated wi* ä toreptoi*r pm"*"¡ing stAf'b"
.'âdded to tbe principal balance. Upon reinstátetnøt Ov gonowei thiç Sèbririty Insfrument and the obligations.that it
geçurÈ s¡äl remain in effeol as if.L¿nder had riot ieqqired immediare.payment'in fdl ii;1vg"er,-i,*¿* i, ¡o,
required ro perrnit rsinsuæ'ment if; (i) Iændø hæ aobepæd.reinstaæment ån"t i¡r
. :,..-----:,...
""****Ã*ilJr¡oróto.*"
:
. ' 1 .,
Havtaii 24 Sec:øri.ty Initruneàt. A Bay Doos, Ina 0&10
Page 4 ofl0
p¡oceedings withia two (2) years immediately proceeding the commencement of â current foreclosure proceeding,
(ii) reinståtement wili preclude foreclosure on different gtounds in tbe future, or (ìii) reilstatemer¡f wjll ådversely
affect the pnorig of the'Security Instruner¡t.
12. Sêcond Lien Status.

(a) . Modificãtion. Bbrrower agrees to extend this Security Instn¡nent in accordance with this Paragraph
. 12(a). If Learder determines that the origiqal lien çtatus of the Security Insûúment iô jeopardized under srate
law (including but not limited to situations where tbe amount secured by the Security Irxtruurent equals or
etceeds the maximum principal âñounl stated or the maximurn period under which loan advances retain the
same lien priority initially granJed to loan advances has expired) and state law permits the original lien $atus to
be maint¿ined for futr.¡¡e loan advances through the execution and recødation of one or lnore documents, then
Lender sball obtain title evidence at Borrower's expense. If the title evidø¡ce indicates ïhat the Èoperty is not
encumbered by any tiens (except the Fint Security Ins'trument described in Paragraph l3(a), this Second
Security Instrument md any suliordinate liens tbat the Lender determines will also be subordinate to any future
. loan advances), Ls¡der shall reqúèst the Borrower to execute.an)¿ d&umens neceÊsary fo protect the priority of
' the lien satus of futuie loan advanqes, Borrower.agrees to execute,such docunenfs, lf state law does not
p€fttit the original lien status to be exterded to futu¡e loàn advances; Borrower will be deemed to have failed to
have perforrned an obligation under tbis Securiû insnuaent.
(b) Tax Deferral Proglams, Borrower sball not particiþate in a.real estate tax deferral program, if any iiens
cî€afed by the lax cleferral are not subordinate to this'security Instrument.
(c) Prior Llens. Borrower shall promptty dischæge any lien which hæ priority over this Secrnity Instumest
unless Borrower: (a) agrees in writing to the payrnent of the obligation secured by the lien in a manner.
acceptable co Lerrder; (b) contests in good faiih fhe lien by, or defends against enforcement of tbe lien in, legal
proceedinþs Which in the Lende¡'s opiniou opefi¡te to prevent the enforce¡nent of tbe lieri or forfÊiúure of any
þart oflhe Prpporty; or (c) iecures fro¡n tt¡e holder ofthe lien an agreernqrt satisfactøy to Lænder subordinating
. the lièn to all arnounts secured by.this $ecririty lustrument.. If Lender det€rmines that any part of rhe property is
subjeg to.4 lien which may attain priorÍ-ty ovèr this $ecurity Instument, Lender may give nonow.. ã *ti""
i{entifying flæ lien. Bprr-oWT shall sritisfy.the lien.br take one or morc of thç actions set forth,ebpyè within ten
(10) days ofthe giving ofnotice.
ip to Firet Security Instrùmenú.

(d Seton<ISecufity Instrumónt In o¡der to secure pay¡nents which the Secretary may make to or on bèhalf
of Bonower pursuánt to Section 255(Ð(1X¡') of the National Housing Äct aod th"-.Lbuo AgeernenÇ the.
Secretary has reqgqed Boûowcr to exècute a SecondNote and this..Second Segq¡ity Instn¡ment. Þorrower has',
also execuüed'â Fir.s'tNoæ.and First Secr-rity lrstru¡ent. .. , :.
' çb) Relotionshíp. of First and Second Si:curity Inst¡umebh. Payments madp by the Sbcref4qy sbali:oot. be
included in the debt.undér the First Nob.unlqss: i : . i '
(i)The First Secltr¡.iy Instrune¡ri is assigned
.Y. to the Secretary;br
(ii) Thê Secretary acc€Fki'reimbu¡sement by thé holOer of lhe 'First Noæ for all payrneirts made by tbe.
Sec¡eiary, .: . .
. , .:.
lf The præumstanbèç.described io 1ij gr:(ii) occui, then ait payurørùs uy Ae Søretary, includiag interesg on.the
PaymenJsr Þut excludinþ latb charges pAd liy the Secie¡a¡y,.shall be Ínctuded in tþç debr undei.tÉ Frrst Note. ' .
. tc) ;ff.ftøir¡ tsorroyer. Wbere ùerè is no asóignment or reimbu¡sernent as,described in (þXÐ t r iií¡:aoa
. tle'
.:.
.SeøgteV rylgs ncÉ:
paymeirts to Borrowpr, theri Bo¡rower shall
. :
H aw al i 24 Sèçuriti Insauiien't ' b nay.Docs,trto. gAtO

Page5ofl0 -
(Ð Be requíred to pay amounts owed under the Fint'Not¿, or pay any rÊnts and ¡evenues of the Properþ
under Para$aph 19 ûo tbe holder of the FirstNote or a receiver of the Property, until the Secretary has
required payorent in full of atl or¡tshnding priræipal a¡d accrued interest under the Second Note; or
iii) S" obligated to pay interdsl or shared appreciation under the Pi¡st Note at any time, wbether accrued
before or after the paymeils by the Secretary, and whether or not accrued interest has be¿n included in the
principal balanoe under the Fírst Note.
(d) No Duty of the Secretary, The Secretary has no duty to the holder of tlìe of the First Note to enforc€
covenants of the Second Secrnity I¡stumeht or to take actions tÒ preserve the value of the Property, even
though the holder of the First Note may be unable to collect amounts owed under tt¡c First Note bccause of
reshbtions in this Paragr-aph 13.
(e) Restrictions on'Enforctment. Notwitlutanding anyihing else in this Security lìstrument, the Borrower
shall not be obligated to comply with th.e cevenents hereo{, and Paragraph 19 sha.ll have no.force and effect,
whenever there is no. outslarding baiance under the Second Note.
lÁ E^-h-.x.nn- kv f ¿¡â¡-
Àt^t r^ IIrî.,^- Ä*.,3^-L^^-^--^
ru¡uEilcluE L., I ^-I--:- !¡t Þ¡\'Hu¡tillrg
^-.:-!-r-- -,- nBui oI lEmÕuy 6na¡l
'ùv vJ lvüsv¡
¡rv? rY B¡Ìq. rurJ uJ Ærrucr B¡ly
not bc a waiver Ò{ or pf€clt¡de the èxercise of any right or rernedy.
15. Successors and Ässigns Bound; Joint and Several LÍability. Borrower sui nor asSign any rights or
obligations under this Security Instrun¡ent or under the Second Note, except üo a hust that mesf.s the re{uirements of
the Secretary. Bor¡oweds covenfrlts and agreements shall be joint and several.
16. Notices. Any notíce to Bonower provided for in this Security Inskurner¡t shall be gÍven by delivering it or by
mailing it by firSt class mail unless apþlicable law requires use of another method. The notice shall be direcæd to
the Propoty Addrqss or any other'address all Bormwers jointly designate. Arry notice to the Secretary shall be
Clyel by fi¡st class maìl to the IIUD Field Office withjurisdictign overthe Property or any other addr. ess desþated
by the Secretary: Any notiç provided for in tbis Security.Instrurnent shall be deemed to have been given'to
Bpçroweg o¡ þ¡f,ei when given as provided þ this Paragraph I f .
17. Governi'ng Law; Severability. This Security Inst¡r¡ment shall be governed by Pederal law a¡d tlæ laiv ofthe
jurìsdiøion in which thê Propi:rty is located. In tbe eVent that any provision or Qlarise ofrhis Secu¡ity krsiniment or
the Second Note conflicts with applióáble law, such confliót Èhall not affect other proyisions of thís S."*lty
lnstrr¡neirt or,tlte Seconil Note which can be given effeçt without the conflicting ¡irouision. To.ihis erd the
provisions bf tilis ge¿urity h¡strumeni md the Se,cãnd Note arê declared to be seyerable, . ,
18. Borrowpr's çopy" lonpyer sh¿ll.'be given one conformêd copy of the Seooird Note aàd'this Security
Inshument.'..
NON-LINIFOR]\4 çOVENT\NTS. Borrower and Lender further covenant and agee æ t,llciwsi
t9.'.Àssipmènt of Rents. Bor¡owo ünconditionally. assigns and trançfers to Lendèr,ail the rsnt$ and *n*uot of
.tite nopetg. Bgpwer authorize.s Lende¡ ór leudøs ágecrts to,colleci fie renis and ¡Bvenues.anö UorUy oi.r"rs
each'ti:¡iant dfih; Pioperly'to p3y the
lenu to lænilerãr L,enáer's agentr. However; priþ to tendJs Ño{.rlo
Bonowèr of Borrower's bieach.of any cov'enaht or agreemènú in.the Secøty tnstrumeri! Borrowef shall collæt and
reve¡it¡es of the Property..iu trustee.fortlre bençfittof Lã¡dei and Bbmower..Thjç
¡ebeive dll rents and'absqlule
-
-.. -'-: æsigru¡entof
;-
renis co¡stiartes.ffi assignment and nof an assign!ûåut for additional s;;*tt-;",t .
Hawait 2à ie*rtty.t^t* *t Ð Baybæs,'Inc.0AlO

Page 6 ofl 0
t Case 1:14-cv-00353-HG-BMK Document 1-2 Filed 08/06/14 Page 36 of 58 PageID #: 46
for benefit of Lender onþ, ø be applied to the sums secured þ this Security Instrurrent; 1b) Lender shalt be entitled
to collost and receive all ofthe rents ofthe Property; and (c) each tenant ofthe Property shatl pay all reats due and
unpaid to Lendø or Lendet's âgent on lænder's written demand to the tenant.
Borrower has hot executed any prior assignment of the rents arid has not and will not perforrn any act that would
prevent Londer from exetcising its rights under this Pæagraph 19, except as provided in the First Security
lnstrument
Leoder shall not be required to enter upon, take control of or mai¡tain the Property before or after giving notice of
breach to Borrower. However, Leader or a judiciaÏly appointed receiver may do so at any time there ii a breach.. Aay
apþlication of renLs shalt not cure or waive any default or invafidate any other right or remedy of Lender. This
¿irssignrnent of rents of the Property shall terminaæ wbE¡ thB debt secured by this Sepurity Instnrment is paid in full.
20. Foreclosure Procedure. Il Leuder.requlres lmmedlate payment ln full under Paragraph 9, Lender may
invoke the power of eale a¡d any other remedies permittid by applicable law. Iænder shall be entitled to
çollect all expetrs€s incurred in pursuing the remedies provided in this Paraþraph 20, includþg, but not
limited tb, reasonable attorneys'fees and costs of úitle evidence.
.If Iænder invqkès the power of sale, Lender shall glve Borrower not¡ce of sale ln the mannei provi&d in
Paragraph' 16, Lender shall publlsh a noúlce of sale and shall sell the Property at the time and plac'e and
uider the terms specified in the notice of sale. Lender or its designee may purchase fhe Property at any sate.
The proceeds of the sale shall be applled in the following order: (a) to all erpenses of the sale, including but
not ltmitcd to, reasonablc attornelsr fecs; (b) to all sums secured by thti Security Instrument; and (c) any
excess t0 the person or persons legally entltled to iL
21. .Lien Prtortty. The fuil amount secured by this Security lnstrrmreat shall have a lien priority subordinaæ only
. to the. fi¡ll.amount secured by the Fint Security lnsbu¡nent.
.22 Ädjustable Rate.Featu.re. Under the Notg. the initiat étâted intercst rate of .T\yo.and 169i1000's percent
{J.169%) whicb a'ccruæ on'tho unpaid principal balance ("lnitial tnterest Rate") is subject to change,, ?g desorib€d
below. When the interBst rate changes, the nqw adjusted -will interest rate wilt be applied.to tb€ totâl.outstanding
' piincipal balance. 'Each adjustnent to-thc interesr rato be based upon the One.Ufltn fondon Uterta¡* Otrøed
Rate (':ÍrIBOR") as mádo availabtè io the "Money Ratés" sèction of the WêlI Street Jou¡nal ("Ind'ex") plus a margin..
If the Index is nô longer availablé, I-ender wilt bé required to use âny index prescribed by. ttre Ddpartmeni of
Housing an$ Urban Developme¡rt. The new index will havè'a historical movement substantiatty similar to the
original index, and the new inìex a¡d margin will ræult in an annual.percentâgê rate that is substantialty simrlar tci
ttre rate in effeot at fhe time the original index becomes unaviilabte.
Lender will perforU+ the.caLculations describeh below to determine the new adjusæd interæt iatç, Thè.interest rate
rnay chairge on the first dåy' of Märc.! 1;20i4, and on -that day of each ,uoåling year, X the ¡ust dry ôl*ú
.succeeding
month ("Chango Date"). until thè loan is repaid in full' : .
The val.ue õf the.Index will be deteflhin€d, using the móst recent Index figuro available tldfy (30) days before ihe
Change Date (ñCurrent Inde{'). Before eacb'Ctanþe Date, the 9g1,v intercst rate will be'calculated by addÍng g
marg.in to the Current l¡dex Tbe.sum of tho margin plus tho Cr¡nót tg{éx, qubjeci:to the rate limit¿tións betow,
.wilt bc called. the "qloi'lutqd Intérest..Rate¡'' fur each Changc Darc. The Calcuiate d Ir¡terest Rate wili be cpmpgred
1o. thê.interest t'-atqin effeçt immediately prior to the currràt Change Date (the "Eristing lnterestRate').
t
, : . .'
' ., : . ., . : .
. . _ ,,.
. . -- : . ,Annualþ Adjusting Vlri+Þle. Rate Featúre - The Caiculaæd htúest Raæ wiU never increase or
. . , ' :....'
.,, tlecreaie
þl tu* thãn two'percertâge poixts (2,0%)'on.any sing.le Chang.e
$1e. rtre inteiest rste
Ht*au 2ñ: Sàniity Insnunent Q8øyDæs,lno,O.Ql0 '.

Pase T ofl0
will never be more thán five percentage points (5.0%) higher or lower than the Initial Interest Rate
staûed in Paragaph 2 of the Note.
x Monthly Adjusting Varlable Rate Feature - The Calculated hterest Rate wiil never inçrease
abow l2,L69Vo
The Calculated Interest Rate will be adjusted if necessary to comply with the rate limìtâtion(s) described above and
will be in ef0ect until lhei next Cbange Date. At any Change Daúe, if ttre Calculated Interest Rate equals the Existing
lnterist Räte, the inte¡est rate will not cbange.
23. Release Upon payme*rt of all sums socured by this Security krstrumemt, Lender shall rolease this Security
Instrumeflt. Borrower sþall pay any recordæion costs.' L€nder mãy charge Borrower a fe¿ for releasing this Security
Inskument, but only ifihe fee is paid to a third party for services rendered and lhe charging of the fee is perrnitted
under applicable law.
24. Oblþatory Loan .{dyances. Iændcr's responsibility to ma.ke Loan Àdvances under the tenns of the Loan
Agreement .i¡cludìtlg Loan Àdvances of principal to Borrower as well as Loan Advances for interesl MIP,
õ-- -i--i--- I ^¿t--, L^ ^Lt:-^r---
ùçfvrvlltB fEçù, itllu uu¡çJ ^L---^-
u¡.ri1lËes sl¡a¡r
^L^tl utr uuuËalury..
25. Waivers. Borrower relinquishes all right of dower and curtesy in the Property
26. Rtders fo this Secqr¡ty Iustrument If one or moro riders a¡e executed by Borrower and rocorded together
with this Security Instnnnent, the covenants and agreements of each such ridff shall be incorporated inùo and shall
amend and supplemørt the covenanb and agreements of this Security Instoument as if the rideds) were a part of this
Security Instrumemt.
[Check all riders that are applicàble.]
Ctmdominium Rider PUD.fuder

Shared.Aup reci ation'Rider Other
BY SIGNINÇ'BELOIV, Bo¡rowe¡ accepts and' agrees to tlæ brms and covenanb conbined in this Securíty
Iiutiurnent and in any ride(s) executpd by Borrower and rccordcil with it.
lffiuresses:
' - mrnn nnsuop

ffi*ã
pETlRAITTs (BoRRowER)
II de.al i:31'S ecur t ty i71 strunent È Boy Dixi,Inc. Øil) 0

Pase Fo[10. "
Notarv Acknowledaement
State of Hawali
County of ,¡,ln lt)
On Januarv 03. 20ljl. before me personally appeared Linda Mtshoe Petraitis, to me. known to be the person(s)
in and who executed the foregoing insftument and acknowledged thar tr@lrev exècuted the same as
9:rglq¿
high-ert!Èeir free act and deed.
Given under my official seal on January 03,2014.
Signature tSEALI
.Name)
Titk of the úfiL
la-, - !--!--- É----r,

¿vly \Julrrrluüsr(,I]
^-,-- DÃprrc$
It
t-.
h. ø ,F /Ò
f¡¡rh
D¡.0Ërr
I/øh 0)/ '
.......'.-^l¡
' ..': ''.¡
il
Ljøa NI\ìÕh aa Qárdlis,' , a
"ìgb ?<vwn
Hdw a ¡i 2Å Se atr t ty..l ns trutii 6h I Ð Ba, DcÉs, Iho. 0ú!0

P.dee I of )0
I Case 1:14-cv-00353-HG-BMK Document 1-2 Filed 08/06/14 Page 39 of 58 PageID #: 49
EXHIBIT Ä
Exhibit A to the Mortgage givør on JanuatJ 03, 201.t, by Linda Mishoe Petraitís, as fee owner ("Borrower") to
the Stbretary of Housing and U¡ta¡i Development, and whose address is 45I Sevcnth Str€et, S.W., Washington,
D.C. 2M10, ("Iænderu or "Sectetar¡r"). The Property is located in the county of Maui, slaÈe of III, and is describe.d
as follows:
. Desøiption of P¡opedy
Legal Description attached hereto as 'Exhibit Â' and by this reference made a part hereof.
H¿*eali 2ú Secirñty lnswmerrt Ø Bay Dæs, Inc. 06/10

j
Pàge l0oflî r
TI.[K: (2) 2-.3-023-729

EXEIBLT rAil
.i
.4,1I of that certain parcel of Iand'situate at ûmaopJ-o, KuIa, District
of Makawao, Island and County of Maui, State of Hawâii, 'described
'{ as
follows:
LOT 204-D, are.a.0.503acre, qngre or less, as shown on Map L42, filed
in the Office of the Assistant.Registrar of the Land Court of the
State of Hawall wlth Land Court Application No. 34'2 of Frank Gonsalves
Correa;
Together with access to Kulamanu Circle, a public trighway, across Lot
2A4-H, as shown on.Map 142 ot': f.and Court App.licatíon No. -3.42, as set
forth hy Land Court Order No.. 160596, filed U.ar$r 2'J., 2005. . :
(.
Being land(s) described Ín Transfer Ce¡tificate of.Títle No. Bol,977

íssued to VíA.LTER FR.ê,NK PETRATTIS ANd I.TNDA MTSHOE PETRAITTS, husband
and wife, .as Tenants by the Entirety:
ì
BETNG THE PREMTSES ACQÛIRED BY WARBANTY DETID WITH COVENåNTS¡
CONDITTONS, RESTRICTIONS' .AND RESER\rED RTGHTS :
GRANTOR : RIDGELINE HOMES, ïNC., a HawaIS- corporation:

G.R.ANfEE WALTER FRANK PETRATTTS àûd ].INDA MÍSHOE.PETRATTTS,
husband and, wifé, as .Tenantç by .the nntírety
DATEq ,June 1t 2006 i
FÏLED T,and Court Doêument.No.
' 3436896
-_:-+ :l
Subject to ariy and alt'ltens andi/or'e'ncr¡mbqanies of n.ecord.

1.,¡ Case 1:14-cv-00353-HG-BMK Document 1-2 Filed 08/06/14 Page 41 of 58 PageID #: 51
hPA:
STATE OF HAWAII
oFFtcE oÈ Ássrsrnur REGISTRAR
RECORDED
APril 18, 2014 8:0'l AM
Doc No(s) T'8871120
on Cert(s)
lssuance of Cert(s)
.ÍHOMPSON
,s/ NICKI ANN
ASSISÎANT REGISTRAR
illlillffiililillillill
1 1tz KLA
B-32447562
LAND COURT SYSTEM SYSTEM

AFTER RECORDA TION, RETURN BY: [X] MAIL [ ] PrcKr.rP
R. CLAY SUTHERLAND, ESQ.
TGACCOM ,AqaqqRq
Attorney at Law, A Law Coqporation
24 N. Church Street, Süite 408
Wailuku, Hawaii 96793
ovo
Total Number of Pages: 4
DURABLE GENERAL POWER OF ATTORNEY
\
l. GRANT OF POWERS: I, Linda Mishoe Petraitis, of Kula, MAUI, State of
Haw-aii, do hereby constitute and appoint my son, James Alexander Westbrook, of Studio City,
California; with full power of substitution, my. true and lawful attorney for me and in nro" *y
and for my use and benefit to perform and do all.of the following:
2. COLLECT ASSETS: to ask, demand, sue for, collect, recover, and receive all
sums of money, debts, dues, accounts,'legacies, bequests, interest, diviilends, annuities, and
demands whatsoeve¡, as are now or shall hereafter become'due, owing, payable, or belonging to
me, and to haVe, use, and take all lawful ways and means in my ;Å" or oiherwise for the
recovery thereof by suits, attachments, or otherwise, and to compromise and agree for the same
and grant releæes and discharges for the same;
3. DEAL WIIH PROPERTY: to bargain, contract, agree for, buy, lease, sell,
exchange, convey, denrise, mortgage, hypothecate, and in any and eveiy way and manneÌ deal
in
and.witli lands, Ieaseholds, goods, merchandise, choses in action, and otúer property, real or
person4l or mixed, of all kinds, in possession or in action, upon such terms, covenants, and
conditions as my attorney shall agree to; to release mortgages-, pledgès, or hypothecations on
lands or chattels and to make, do, and transact my business of every tcin¿ or nature;
IBIT
3. EXECUTE INSTRUMENTS: forme and in mynrime and as my act and deed, to

sien, seal, execrrûe, deliver, and acknowledge zuch checks, promissory notes, deeds, leases and
assignments of leases, covenants, inde,ntures, agreements, mortgages, h¡rpothecation¡, bills of
lacling, bills, bonds, notes, receipts, evidences of debt, releases and satisfactions of mortgage,
judgmenß and other debts, aüd such other instn¡ne,nts in writing of uåatever kind or nature as
may be nec€ssary or proper in the premises; aod also to deposit ad to withd¡aw and to borro¡v
for me and on my account sums of money from time to time; and for me and in my aame to
draw, accept make, eûdorse, discount, or otherwise deal with bills of exchangg checls,
promissory notes, or other securities for the pa¡ment of mone56
4. ACCESS TO SAFE DEPOSIT BOXES: to have accesÊ to, and remove the
contents ûom,.or add to the conteats of, any and all safe deposit boxes standing in my name;
5. VOTE SIIARES: to exercise the voting privileges of any sbares of stock or other
voting interest of which I am the owner, and to do all other things respecting such sha¡es of stock
or interests, including the callftig of meetinç of direstors or stockholders, and any other act or
thing thal t might or could do if personalþpresent at any such meeting as ovfirer of zuch sha¡es
or voting interests;
6. HOLD INSURANCE: to carry inswance as my attorney-in-fact deems advisable

to protect my a.ssets against any hazard, to claim the benefits or proceeds of such insuÍrnce on
my behal{, to purchnse medical benefits d palment options, ûo tenninate e¡ chnnge beneficiaries
or ownership, úo assign rights, aûd to borrow or receive cash value with reqpect to any life
insuranoe, annuity, mutual fund" or retirement benefit that I may orv:r; provided, however, that
my attorney-in-fact shall not be authorized under tbe foregoing to exercise any incidenb of
ownership over any policy or policies of life insurance insuring the life of my atüorney-in-fact
and ofwhicb I am the'owneç
7. GIFT: to make giffs of cash or properly, or the income thereof, in trust or

outrighq to family mernb€re, spouse, friends, and natural objects of my bounty and to make
conEibutions to cha¡itable organizations, provided, howeve'r, that my attomey-in-fact shall not
have the power under the foregoing to use any asset sf mine to satisff any legal obligation of my
attomey-in-'fact or to provide for the support of any dependent of my attorney-in-fact unless zuch
dependent shall iticlude myself or those pertons whom I am legally obligated to support; nor
shall this entitle my attomey-in-fact to transfer properlry to my attomey-in-fact except in a
fiduciary relationship to me;
8. ESTABLISH TRUSTS: to create for my beneñt and/or for tbe benefit of others
who are the natural objects of my bounty revocable or irrevocable tusts, which fiusß may
extend beyoud my disability or lifetime; to transfer to any such trust any of my assets or my
interest in such assets; a¡d to amend aoy such revocable tn¡st from time to time, but not so as ûo
increase the share of sUch trust thåt would thereafrer pass to my attorney-in-ftct or such person's
spouse or children;
2
ttrë Case 1:14-cv-00353-HG-BMK Document 1-2 Filed 08/06/14 Page 43 of 58 PageID #: 53
9, PURCHASE FLOWER BONDS: to purchase for me certain Uniæd States

Treasury bonds, commonly known a! "Flqwer Bonds,l to bonow money and obtain credit in úy
nârne, and to pledge, mortgage, and assign any of my property for the purpose of purcåasing said
Flower Bonds and ûo mnke necessary arraügemenb for the safekeeping of sucb bonds;
10. EXERCISE RIGHTS: to exercise or release any po$/ers of appointnent, special

or ge'nera! inter vivos or testamentar)! ûo renounce or disclaim any interest acquired by me
through þstaþ or iutestate sùccession or by iqter vivog tramfer, including the right to revoke a
revocable tnrst;
ll. REPRESENT IN Tå.X MATTERS: to prrepare, sign, certi$, and swear ûo tax
rctums of all kinds, to agr€e upon, settle, and compromise the âmouût of taxes pa¡able by me
and for that purpose to appear before the Commissioner and the District Direcüor of Internal
Reverile or either of them, or any of his or their deputies, and to appeal and prosecute to final
conclusions appeals from assessments; and to do all õr any of the foregoing ac-ts 6¡ things either
fot me alone or jointty wiù oüers; to exercise ary tä( elections available to me under the
Internal Revenue Code, fuicluding hrt not timit€d to the allocation of my GST exemption under
Chapta 13 of the Intemal Reve¡rue Code to properfy conve¡æd by me or by my attorney-in-åct
during my lifetime; and to disclaim any inter vivos or.testnmstrtâry transfers of aoy ptoperty to
me, in accoridance with the Inte,mal Revenue Code and applicable Hawaü iaw;
12. HEALTH CARE MATIERS: to receive ûom physicians, sÌugeons, hospitals,

other medical or nursing care providers, or their employe€s or agenb, any privileged or
confidential medical doctme,nts and information regarding me; ûo grant releases fof zuch
documonb and information; and to waive on my behalf any physician-patient or other privilege,
if my atùorney-in-fact deems it advisable for any reason; to sign any documents, waivers, or
releases relating to my health cme, medical records or medical insurance including, but mt
limited to, a waiver or releæe from liability required by a hospital, physician or other heatth care
provider and any documert related ùo decisions to refi¡se Fea,hent or leave a hospital o¡ other
facility against medical advice; to give or withhold consent to my placement in a hospital,
nursing home or other health care facility; to employ and discharge medical posonnel; to give or
withhold consent üo the administration of medication, surgicat procedures or other proftssional
care, couûsel, fr€ehent or services, and to withdraw such consent whether initially granæd by
me or by my aftorney-in-facq to give or wíttrhold consent üo speciñc medical or surgical
measuros; to commence and conduct legal process to enforce the authority of my attorney-in-frct
under this durable power of attorney.
GIVING AND GRANTING unto my said attonrey-in-frct ful! power and authority to do
and perbrm all or every act and thing whatsoever requisite or necessa¡y to be done in aud about
the pndrísæ as fully to all intents and pu¡poses as I might or could do if personally presen! and I
her,eby ratiff and confirm all that my said attorney-in-fact and any substitute or substitutes
lawfully does or causes to be done by virtue of these presents;
This power of attomey shall take efîect immediately and shall not be affected by the
disability of the principal.
3
Case
a9 1:14-cv-00353-HG-BMK Document 1-2 Filed 08/06/14 Page 44 of 58 PageID #: 54
a
ry
I have hereunto set my hand this 4t4 day of
Linda
STATE OFHA\ryAII )
) ss.
COUNTY OFMAUI )
9UT
c ¡oTA¡¡ I
Notary State of Hawaii

Type or NameofNotary: Þ,. cl f*tfrnoto,¿
Mycommission
\
HAWAII CERTIFICATION
Date of docr¡ment: Þu ç 4.? ú # Pages: -M-
Nane of Norary: V,. Utwrsrila4^,x1, ttt Ð\4 Circuit
Docume,nt Description: Durable Geoeral Power of Atûonrey
tu
5uT
4
iur Case
i t 1:14-cv-00353-HG-BMK Document 1-2 Filed 08/06/14 Page 45 of 58 PageID #: 55
7øb' t
1øØ .l
i
STATE OF HAWAII
OFFICË OF ASSISTANT REGISTRAR
RECORDED
\
APril 16, 2014 8:01 Ali{
Doc No(s) T'8871121
on Cert(s) E07e77
lssuanoe of Cert(s) 107089S
/s/ NICKI ANN lHOMPSON

ASSISTANT REGISTRAR
illllillffilillTlllllllilt conveyance Tæ<: $0.00

I 212 KLA
B-32447562
LAND COTJRT REGULAR SYSTEM

AFIER RECORDATION, RETURN BY: [X] MAIL I I PIcIflJP
TGACCOM M-.1oø24
R Clay Sutlierland
A Law Corporation Vu
rã^ ïr
i73 Hoohana Sheei, Suire iûi
Wailuku, Maui, Hawaii 96793
l?
TAX KEY NO.: (2) 2-3-023-129 Total Number of Pages: 4
OUTTCLAIM DEED
KNOW ALL MEN BY THESE PRESENTS:
-/
LINDA MISHOE PETRAITIS, widow, whose post office address is 79 Kulamanu
Circle, Kula, Maui, Hawaii gíTg\,hereinafter called the "Giantor", in consideration of the sum of.
Ten Dollars ($10.00) and other good and valuable consideration ro rhe Grantor paid by JAMES ./
ALEXANDER WESTBROOK, whose address is 440 Vantage Avenqe, Rpt. pH2, Siudio City, /
CA 916M, hereinafter called the "Grantee", the receipt of which is.hereby-acknowledged, doðs
hereby remise, release and quitclaim unto the Grantee, as a Tenant in Severalry (in Tryst), all the /
property described in Exhibit "4" affached hereto and incorþorated herein by reference.'
AND the reversions, remainders, rents, issues and profits thereof, and all of the
right, title and interest of the Grantor, both at law and in equity, therein and thereto. "rrur",
EXHIB¡T ¡¡4'I
) 1:14-cv-00353-HG-BMK Document 1-2 Filed 08/06/14 Page 46 of 58
Case PageID #: 56
1
TO HAVE AND TO HOLD the same, together with the improvements rhereon and all
rights, easements, privileges and appurtenances thereunto belonging or appertairting, unto the
Grantee, according to the tenancy herein set forth, forever.
This conveyance and the covenants of the Grantor shall be jointly and severally binding
upon the person oi persons identified above as "Grantor" and tñe Grãntor's successors and
assigns, and'shall run in favor of and inure to the benefit of the porson or persons identified
above as "Grantee" and the Grantee's heirs, successors and assignsãnd the heirs and assigns of
the survivor of them. The use herein of the singular in ¡eference to a party shall include the
plural and the use of a pronoun of any gender shall include all genders. The term "person', shall
mean and include an individual, partnership, association or corporation, as the ìont"*t *uy
require.
IN WITNESS the Grantor has caused these presdnts to be duly executed this
'1+¿"
day of ,201,4.
Linda Mishoe Petraitis
\By J der Westbrook, attom ey-in-fact for

Mishoe Petraitis
Grantor
a
l¡
ir 1:14-cv-00353-HG-BMK Document 1-2 Filed 08/06/14 Page 47 of 58
Case
|
PageID #: 57
STATE OF HAWAII )
) SS
COI.INTY OF MAUI )
on this T +¿rday of n'l 2014, before me personally appeared \

JAMES ALEXANDER WFSTBROOK, Attorney-in-Facr for LINDA MISHOE pETRAftIS,
to me known to be the person described in and who executed the foregoing instrument, and
acknowledged that he executed the same as $,ttomey-in-Fact for sai¿ IINOA MISHOE
PETRATTIS
q
b a I Public, tate of Hawaii
iuauc or Name: R. ClA,u .Sr,¡*h eriand
expires: Ouq l, I notE
tlF
J
AII NOTARY CERTIFICATION
Date of d,ocument; n 1 ?ot+ # Pages:
Name of.Notary: R- Ci^q S,,ttnpnta"l Stc;øna Circuit
Document Description; e
çoTAR Y
Notary
4 7 t( tr @
{FÞ e
Pueu\G
OF
ili
-3-
r.'.i Case
t 1:14-cv-00353-HG-BMK Document 1-2 Filed 08/06/14 Page 48 of 58 PageID #: 58
1 l; I
EXIüBfr "A"
AII of that certain parce.l of'land situate .at Omagpis, Kula, District of Makawao, Island
and County of Maui, State of Hawaii, described as follows:
t/'/
LOT 204-D, area 0.503 aøe, more or liss, as shown on Map i42, filed in the Office of
the Assistant Registrar of the Land Court of the State of Hawaii with Land Court Application
No. 342 of Frank Gonsalves Correa;
/ Together with, access to Kulamanu Circle, a pubüð highway, across Lot 204-H, as shown
on Map I42 of Land Court Application No. 342, as set forth by Iand Couft Order No. 160596,
filed March 21,2005,
\
. Being the property described in Transfer Cerrificare,of Title No. 807,977 and being rhe
premises acquirqd by.Wananty Deed dated June 1, 2006, from Ridgeline Homes, Inc., a Hawaii
Corporation, æ Grantor, to W.alter Frank Pet¡aitis and Linda Mishoã Petaitis, husband and wife,
as Grantee, filed in. the State of Hawaii Office of Assistant Registrar recorded on June 6, 2006, as
Document No. 3436896.
¡(
Tax Map Key No, (2) 129
-4-
^ .tl3
IN THE CIRCTIIT COURT OF THE SECOND CIRCUIT
STATE OF HAWAII
JULIE BETH BEAN, ) CIVIL NO

Plaintiff, )
)
vs )
)
JAMES ATEXANDER WESTBROOK, )
PLAZA HOME MORTGAGE, N{C., )
MORTGAGE ELECTROMC )
solely as Nominee for Plaza Home Mortgage, )
Inc., and its Successors and Assigns, )
SECRETARY OF THE U.S. DEPARTMENT )
DEVELOPMENT; JOHN DOES l-10, JANE )
DOES l-10; DOE TRUST ENTITIES l-10; )
DOE CORPORATIONS 1.I0, DOE )
PARTNERSHIPS I-IO, DOE ENTITIES 1-10 )
DOE GOVERNMENTAL AGENCIES I-IO, )
)
Defend¿nts.
SUMMONS
TO: DEFENDANT JAMES ALEXANDER WESTBROOK

DEFENDANT PLAZA HOME MORTGAGE, INC.
DEFENDANT MORTGAGE ELECTRONIC REGISTRATION SYSTEMS,
INC. (MERS), solely as Nominee for Plaza Home Mortgage, Inc., and ité
Successors and Assigns
DEFENDANTS JOHN DOES 1-10, JANE DOES l-10; DOE TRUST ENTITIES
1-10; DOE CORPORATIONS l-10, DOE PARTNERSHIPS t-10, DOE
ENTITIES I-10, DOE GOVERNMENTAL AGENCIES I.IO
You are hereby summoned and required to file with the couf and serye upon
WRIGHT & KIRSCHBRALIN, A Limited Liability Law Company, 1885 Main Street, Suire 108,
Wailuku, HI 96793, Telephone Number 808-244-6644, an answer to the Complaint, which is
attached hereto. This action must be taken by you within twenty (20) days after service of this
Sumrnons upon you, exclusive of the day of service.

el,
If you fail to make your answer within the twenty (20) day time limit, judgment
by default will be taken against you for the relief demanded in said Complaint. If you fail to
obey this summons this may result in an entry of default and default judgment.
TO: DEFENDANT SECRETARY OF THE U.S. DEPARTMENT oF HOUSING

AND URBAN DEVELOPMENT
You are hereby summoned and required to frle with the court and serve upon
V/RIGHT & KIRSCHBRALIN, A Limited Liability Law Company, 1885 Main Srreet, Suite 108,
Wailuku, HI 96793, Telephone Number 808-244-6644, an answer to the Complaint, which is
attached hereto, This action must be taken by you within sixt6y (60) days after service of this
Summons upon you, exclusive of the day of service.
If you faii to make yow answer within the sixty (60) day time limit, judgment by
default will be taken against you for the relief demanded in said Complaint. If you fail to obey
this summons this may result in an entry of default and default judgment.
Pursuant to Rule aft) of the Hawaii Rules of Civil Procedure, this summons shall
not be delivered between the hours of 10;00 p.m. and 6:00 a^m. on premises not open to the
public, unless a judge of the Second Circuit Court permits, in writing on the Summons, personal
delivery during those hours.
JUL - 1 2014
DATE ISSUED: Wailuku, Maui, Hawaii;
Clerk
2
WzuGHT & KIRSCHBRAL|N .FILED

A Limited Liabiliry Law Company
20llrJtL:l Pil St,t
DEBORAH K, WRIGHT 4444-0
KEITH D. KIRSCHBRAI.IN 497r-0
DOUGLAS R. WRIGHT 9643 K. HAE 04. tLfiRH
SE c0H0 c ,#o'Hll'Tllrut
i885 Main Street, Suite 108
SÏAÏT
Wailuku, HI 96793
Telephone: 808-244-6644
Facsimile: 808-244- 101 3
Email : wrightkirsch@aol. com

JULIE BETH BEAN
IN TFIE CIRCTIIT COURT OF THE SECOND CIRCUIT
STATE OF HAWAII
JULIE BETH BEAN, ) lq- rr- ATOQ

CIVILNO. ^t, v ¿ " /"\
V¡-- ¡
Plaintiff, )
) NOTICE OF' PENDENCY OF' ACTION;
vs. ) DECLARATION OF DOUGLAS R.
) WRIGHT; AND EXHIBIT "I',
JAMES ALEXANDER WESTBROOK, )
PLAZA HOME MORTGAGE, INC., )
MORTGAGE ELECTRONIC )
REGISTRAÏON SYSTEMS, fNC. (MERS), )
solely as Nominee forPlazaHome Mortgage, )
Inc,, and its Successors and Assigns, )
SECRETARY OF T}IE U.S. DEPARTMENT )
DEVELOPMENT; JOHN DOES 1-10, JANE )
DOES 1-10; DOE TRUST ENTITIES 1-10; )
DOE CORPORATIONS 1-10, DOE )
PARTNERSHIPS 1- 10, DOE ENTITIES 1-10, )
DOE GOVERNMENTAL AGENCIES 1-IO, )
)
Defendants.
NOTICE OF PpNDENCY OF ACTTON
lhe certlfy that thls true and
Glerk, Seccnd Circuit Courf

TO WHOM IT MAY CONCERN:
Plaintiff ruLIE BETH BEAN ("PLAINTIFF"), by and through her counsel,
'Wright & Kirschbraun, A Limited Liability Law Company, pursuant to $634-51 of the
Hawaii Revised Statutes ("HRS"), entitled Recording of Notice of Pendency of Action,
does hereby gives notice of the pendency of the above-entitled action.
Plaintiff commenced in the Circuit Court of the Second Circuit, State of Hawaii,
an action against JAMES ALEXANDER V/ESTBROOK ("wESTBRooK"), whereby
Plaintiff prays for, ínter alia, injunctive and declaratory relief for Breach of Trust and
Fiduciary Duty to set aside (1) the Power of Attorney dated April 4,2014, executed by
Linda Mishoe Petraitis improperly obtained by James Alexander'Westbrook and recorded
as Land Court Document No. T-8871120 on April 14, 2014 and (2) the improper transfer
of real property (owned by Linda Mishoe Penaitis) to Westbrook, by Westbrook in
breach of his fiduciary duty as attorney-in-fact for Linda Mishoe petraitis, deceased, by
Quitclaim Deed dated April 7, 2014 and, recorded as Doc. No. T-8871121 on Cert(s)
807977' Issuance of Cert(s) 1076899 onApril 16,2014.
The Complaint filed in this action will affect the title or rights to possession of the
property located at 79 Kulamanu Circle, Kula, Maui, Hawaii, more particularly identified
as TMK No' (2) 2-3-023-129 (hereinafter "SUBJECT PROPERTY") and rhe rights of all
persons claiming or having an interest in said Subjeot Property. The action and the
properties that will be affected by the action are more particularly described in the
Declaration of Douglas R 'Wright and Exhibit "1", which are att¿ched and incorporated
herein by reference.
2
DATED: Wailuku, Maui, Hawaii,

jo JÐ
D K.
KEITH D. KIRSCHBRALTN
DOUGLAS R, WzuGHT

JULIE BETH BEAN
3
IN THE CIRCUIT COURT OF THE SECOND CIRCUIT
STATE OF HAWA]I
JULIE BETH BEAN, ) CIVIL NO

) (Other Ci Action)
Plaintiff, )
) DECLARATION OF DOUGLAS R.
vs. ) WRIGHT
)
JAMES ALEXANDER WESTBROOKi )
PLAZA HOME MORTGAGE, NC., )
MORTGAGE ELECTRONIC )
solely as Nominee for Plaza Home Mortgage, )
Inc., and its Successors and Assigns, )
SECRETARY OF THE U.S. DEPARTMENT )
DEVELOPMENT;JOHN DOES 1-10, JANE )
DOES 1-10;DOE TRUST ENTITIES 1-10; )
DOE CORPORATIONS 1-10, DOE )
PARTNERSHIPS 1-IO, DOE ENTITIES 1-IO )
DOE GOVERNMENTAL AGENCIES 1-10, )
)
Defendants )
)
DECLARATION OF DOUGLAS R. \ryRIGHT
STATE OF HAWAII )
)SS
COUNTY OF MAUI )
DOUGLAS R. V/zuGHT declares that:
1. I have been licensed to practice in all state courts in the State of Hawaii and have
been in practice in this jurisdiction since January of 2012.I am in all respects qualified and
authorized to make this DeclaratiÔn, which is based upon personal knowledge except where
noted to be upon information and belief. The facts set forth herein are true and correct to the best
of my knowledge, information and belief.

2. I represent Julie Beth Bean (hereinafter "PLAINTFF"). Plaintiff filed the above-
entitled action against her brother, James Alexader Westbrook, ("V/ESTBROOK,') who was the
attomey-in-fact for their mother, Linda Mishoe Petraitis, now deceased. The Complaint prays
for, inter aliq iniunctive and declaratory relief and alleges breach of trust and fiduciary duty,
fraud, undue influence, convetsion, unjust enrichment, constructive trust, accounting and
surcharge, tortious interference with an expected inheritance and/o¡ prospective economic

advantage, and in particular, that Westbrook improperly obtained and/or abused his agency
pursuant to a du¡able power of attorney, ("POA") signed by Linda Mishoe Petraitis (hereinafter
"MRS. PETRAITS") on April 4,2014, while Mrs. Petraitis was admitted io the lntensive Care
Unjt at the Maui Memorial Medical Center with severe respiratory disfress, pneumonia ând acute
kidney failure' The Durable Powe¡ of Attomey was recorded as Land Court Document No.
T-
8871120 on April 14,2014.
3' Upon information and belie{ on April 7,2014 Mrs. Petraitis was taken offoxygen
three days after she signed the Durable Power of Attomey in favor of her soq Jarnes
Alexander
Westbrook' On April 7,2014, the third day after obtaining the power of aftorney, Westbrook
executed a Quitclaim Deed, transferring his mother's real property located at 79

Kulamanu
Circle, Kula, Maui, Hawaii, more particularly identified as TMK No. (Z) Z-3-023-lZg
(hereinafter "SUBJECT PROPERTY") to himself in breach of his trust and fiduciary

duties as
well as his authority pursuant to the POA. On April 16, 2014 the
euitclaim Deed was recorded
as Land Court Doo. No. T-8871121 on Cert(s) 807,977 Issuance of Cert(s) 1076899.
Mrs.
Petraitis passed a\¡/ay on April 8, 2014.
4' The Subject Properfy at issue in this action, as desøibed in the Complaint filed
herein, is that property identified as Tax Map Key No, (2) 2-3-023-l¡g, consisting
2
of approximately .503 acre of land, located in Kula, County of Maui, State of llawaii,
more particularly described in Exhibit "1", attached hereto and made aparthereof.
5. Plaintiffintends that all purchasers and encumbrances of the Property have
constructive notice of this action and be bound by all judgments entered in this action.
6. This declaration is made in support of the foregoing Notice of Pendency of
Action and in accordance with Hawaii Revised Statutes $634-51 and the Court
procedures .i ssued thereunder.
7 . The facts set forth herein are true and correct to the best of my knowledge,
information and belief.
I, DOUGLAS R. 'WRIGHT, DO DECLARE LINDER PENALTY OF LAW
THAT THE FOREGOING IS TRUE AND CORRECT
DATED: Wailuku, Maui, Hawaii; .)on{- 3t, d¡ l4
R, WRIGHT
3
!:
TMK: (21 2-3-023-129
Èïnrlitt Êi "
All of that certaÍn parcel oi land sítuate at Onaopio, Kula, District

of Makawao, fsland and Co¡:nty.o{ Mauí, State of Hawaii, described aq
follotgs:
LoT 2ó4-D, a{pa q.503 acrer.{n9re or less¡ âs.shovrn on Map 142, filed
Ìn thê Office of the Assj-stant Regístrar of the Land Court of the
S'tate.of Har+aii with Land, Court Applícation No. 3A2 of Frank'Gonsalves
Correa;
Together With ac.cess to Kula¡ranu Circ1e, a publÍc.híghwayr'across LoC
204-Ht as shown on Map l!2 of Land Court Applicatiori No. 342,'ås set
forth.by Land Court Order:No. 1q0596, filed March 21., 2Q05.'
Being land(s) ,described in Transfer CertÍficate of litle No. 807,977

iSSUEd tO TIA],ÎER FRANK PETR.ATTIS ANd I.INDA ¡iTSgOT PETRAITIS; husband
and wife, as Tenants by the Entirety.
BETNG THE PREMISES ACQUTRED. BY WARRÁNTY ÐEED WIÎH COVENATITS,

CoNDITTONS, RESTRICTTONS .AND RESERVED RTGHTS
..GRANIOR : RIDGELINE HO¡iES, INC., â Hawaíi corporation

GRANTEE VTA.LTER FRANK PETR.ê.TTTS and T,TNDA MISHOE PETRATTTS¿.
husband and'wife, . a" ienants 'by the Entirety
DATED rlune i- ,' 2006
. FTLED I¡-and Couit Document:.No. 34:ì68 96
,
EÑD OF EXHTBIT 'I1 '!
tl
Case 1:14-cv-00353-HG-BMK Document 1-2 Filed 08/06/14 Pageþ+ta/^
58 of 58
P PageID #: 68
&ç/3 /Ð,0t5'
NATIONAL REGISTERED AGENTS OF HT,INC,
SERWCE OF PROCESS SUMMARY TRANSMITTAL FORM
To: SCOTT DENIKE, GENERAL COUNSEL

PLAZA HOME MORTGAGE, INC. SoP rransmitøt # 5252821 30
4820 EASTGATE MALL
SUITE 1OO
SAN DIEGO,CA92121 80G592-9023 - Telephone
Entity Served: PLAZA HOME MORTGAGE, INC. (Domestic Staæ: CALIFORMA)
Bnclosed herewith are legal documents received on behalf of the above captioned entity by National RegisteredAgenb of HI,Inc. or its
Affliate in the State of IIAW¡\II on this 07 day ofJuly,2014. The following is a summary of the document(s) received:
t. fitleofAction: JulieBethBean,Pltf,.vs.JamesAlexanderWesbroolqetaì.ìncludìngPlazaHomeMortgage, Inc.,Dffs.

2, Documen(r)Serred; COMPLAINT
Other: Exhibi(s)/Sumrn6¡srNotice/Declaration
3. Court of Jurisdiction/Case Number: Circuit Court of the Second Chcuit, HI

Cæe # 14103992
4. AmountClaimed, if any: N/A
5. Method of Service:
'!¿ D^-^--11., dôÊ,ô,.t L.,. \¿ rr- ^--- a^-,^- l1 õ lf---l-^tt
_ Deputy Sheriff Lr. ù ¡vla¡s[ull
_Delivered Via: _ Certified Mail _ Regular Mail Facsimile
_ Other @xplain):
6. Date and TTme of Receipt; 07t0712014 11:40:00 AM CST

7. Appearence/Answer I)ate: Within 20 days after seffic€ of thìs summons on you, exclusive of day of senrice
8. RecæÍvedFrom: DeborahlCWright 9. FederalBxpressAlrbin#770556025782

1885 Main Steet
Suit€ 108 10. CallMade to: Notrequired
Wailuku" 1n96793
11. Spccial Commenb:
SOP Papers with Tlmsmiüa[ via Fed Ex 2 Day
Image SOP
Email Notifi cation, SCOTI DENItr(E SDENIKE(@PLIIZAHOMEMORTC}AGE.COM
Email Notiñcation, KATI{Y CLARK kathy,clarrk@lazahomemofgôge.com
REMARKS : Please note the prì)cess server und€dined and/or highlighted the entity being served prior to receipt by
cr.
NÄTIONAL REGISTERED AGENTS OF m,rNC. CopfesTo:
Transmitted by Amy Mclaren
The information containcd in this Srmm¡'y Tisumittal Form is provided by Nariønl Regirtered Agents of HI,Inc. for informational purposes only and should
not be con¡idered a legal opinion, It is the responsibility of ths parties recciving this form to reviow the legal docunents foriuarded and to take appmpriate
action.
ORIGINAL
8/6/2014 Hawaiì
Case 1:14-cv-00353-HG-BMK Document 1-3State Judiciary: Hoòhiki
Filed 08/06/14 Page 1 of 2 PageID #: 69
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Non-Criminal Case Information Screen
2CC14-1-000399
Case Title: JULIE BETH BEAN VS JAMES A WESTBROOK ETAL
Initiation Date: 07-01-2014 Initiation Type: P Confidential Code: N
Initiator I.D.: A4971 Division: 2C02 Court: C
Cause of Action: OTHR CIVL ACTN Nature of Action: 02599
Section Code:
Trial Type: Trial Judge: Court Costs: 0000000000
Consolidation Code:
Case Disposition: Case Termination: Case Termination Date: 00-00-0000
Orig. Agency: Lower Court Case:
Taxation Dist.: Tax Appeal Source:
Gen. Ex. Tax Amt.: 0000000000 Gen. Ex. Tax No.: Tax Key:
Property Location:
Comments:
EXHIBIT B
http://hoohiki1.courts.state.hi.us/jud/Hoohiki/JSAPM51F1.jsp 1/1
8/6/2014 Hawaiì
Case 1:14-cv-00353-HG-BMK Document 1-3State Judiciary: Hoòhiki
Filed 08/06/14 Page 2 of 2 PageID #: 70
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JULIE BETH BEAN VS JAMES A WESTBROOK ETAL 2CC14-1-000399

Doc
Seq. Document Title Date/Time Filing Party
Type
COMPLAINT FOR TEMPORARY AND PERMANENT
INJUNCTION, DECLARATION RELIEF, BREACH OF 07/01/2014 KIRSCHBRAUN,
0000001
TRUST AND FIDUCIARY DUTY AND OTHER RELIEF; 15:47 KEITH DONALD
EXHIBITS "1" TO "4"; SUMMONS
NOTICE OF PENDENCY OF ACTION; DECLARATION OF 07/01/2014 KIRSCHBRAUN,
0000002
DOUGLAS R. WRIGHT; AND EXHIBIT "1" 15:48 KEITH DONALD
RETURN AND ACKNOWLEDGMENT OF SERVICE
07/10/2014 WRIGHT, DOUGLAS
0000003 RAS (SERVED - SECRETARY OF THE U.S. DEPARTMENT
14:54 RUSSELL
THRU ANN YUUKI)
RETURN AND ACKNOWLEDGMENT OF SERVICE
07/10/2014 WRIGHT, DOUGLAS
0000004 RAS (SERVED - PLAZA HOME MORTGAGE THRU JO KAMAE
14:54 RUSSELL
BRYNE)
SUBMISSION OF ORIGINAL AFFIDAVIT OF SERVICE
FOR MORTGAGE ELECTRONIC REGISTRATION
SYSTEMS, INC. SOLELY AS NOMINEE FOR PLAZA
HOME MORTGAGE, INC., AND ITS SUCCESSORS AND
ASSIGNS RA: SHARON HOSTKAMP OR ANY 07/24/2014 WRIGHT, DEBORAH
0000005
DESIGNATED AGENT (RE: COMPLAINT FOR 15:04 K.
TEMPORARY AND PERMANENT INJUNCTION,
DECLARATORY RELIEF, BREACH OF TRUST AND
FIDUCIARY DUTY AND OTHER RELIEF; EXHIBITS 1-
4;ETC..........
<Previous | Next> Page Number: 1 of 1
http://hoohiki1.courts.state.hi.us/jud/Hoohiki/JSAPM51F5.jsp?startseq=1 1/1
CERTIFICATE OF SERVICE
I hereby certify that, on the dates and by the methods of

service noted below, a true and correct copy of DEFENDANT PLAZA
HOME MORTGAGE INC.’S NOTICE OF REMOVAL OF CIVIL

ACTION was served on the following at their last known addresses:
Served Electronically Mailed

through CM/ECF
DEBORAH K. WRIGHT 8/6/14
KEITH D. KIRSCHBRAUN
DOUGLAS R. WRIGHT
Wright & Kirschbraun
1885 Main Street, Suite 108
Wailuku HI 96793
Mortgage Electronic 8/6/14

Registration Systems, Inc.
1818 Library Street, #300
Reston, Virginia 20190
U.S. Department of Housing 8/6/14

and Urban Development
Associate General Counsel
for Litigation
451 7th Street S.W., Rm.
10258
Washington, DC 20410
906495v1 1
/s/ Malia E. Kakos

JUDY A. TANAKA
MALIA E. KAKOS
MAILE OSIKA

906495v1 2

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Case 1:14-cv-00353-HG-BMK Document 1 Filed 08/06/14 Page 1 of 6 PageID #: 1

JUDY A. TANAKA 5369-0

Attorneys for Defendant

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF HAWAI’I

JULIE BETH BEAN, CIVIL NO. ____________________

Plaintiff, DEFENDANT PLAZA HOME

1-10; DOE TRUST ENTITIES 1-

DEFENDANT PLAZA HOME MORTGAGE INC.’S

Defendant PLAZA HOME MORTGAGE INC. (“Plaza”), by

Notice of Removal pursuant to 28 U.S.C. §1446. Plaza has the right

to remove the action entitled Julie Beth Bean v. James Alexander

Westbrook, et al.; Civil No. 14-1-0399(2), filed in the Circuit Court of

the Second Circuit of the State of Hawai`i (“State Court”), to the

United States District Court for the District of Hawai`i pursuant to

28 U.S.C. §§ 1332, 1441, and 1446 based upon the following:

1. Plaintiff Julie Beth Bean (“Plaintiff”) filed the above-

referenced action on July 1, 2014, and served Plaza on July 7,

2014. (Kakos Decl. ¶ 5; Exs. A, B.)

2. Defendant Secretary of the U.S. Department of

Housing and Urban Development (“HUD”) has also been served.

3. It appears that Defendant Mortgage Electronic

Registration Systems (“MERS”) was served. (Ex. B.)

4. No defendant has filed a response to the Complaint.

response. (Kakos Decl. ¶ 8.) Plaza’s response is due August 22,

5. This Court has original jurisdiction over this action

pursuant to 28 U.S.C. § 1332 because there is complete diversity of

citizenship and the amount in controversy exceeds $75,000,

exclusive of interest and costs.

6. Specifically, diversity of citizenship exists because

Plaintiff is a resident of North Carolina and no Defendant is a

resident of North Carolina. Defendant James Alexander Westbrook

is a resident of California. Defendant Plaza is a California

corporation with its principal place of business in San Diego,

California. According to the Complaint, Defendant Mortgage

Electronic Registration Systems, Inc. (“MERS”) is a wholly owned

subsidiary of MERSCORP Holdings, Inc., a Virginia corporation with

its corporate headquarters in Reston, Virginia. Defendant The

United States Department of Housing and Urban Development is an

executive agency of the federal government and headquartered in

Washington, D.C. (See Ex. A at Compl. ¶¶ 1-5.)

7. Plaintiff has brought several causes of action based

upon the alleged fraudulent transfer of a home owned by her

mother to her brother. According to Plaintiff, the amount in

controversy is at least the amount of mortgage on the subject

property. As of January 3, 2014, the loan amount was

$938,250.00, well over the $75,000 required for diversity

jurisdiction. (Ex. A at Compl. ¶¶ 8-11, 20, 23, 25 and Ex. 1.)

8. This Notice is timely filed pursuant to U.S.C.

§ 1446(b) because it is filed within thirty (30) days of the service of

the Complaint on Plaza. (Kakos Decl. ¶ 5; Ex. B.)

9. Plaza will promptly provide written notice of the

of the Second Circuit, State of Hawai`i, pursuant to 28 U.S.C.

10. This Notice is not intended and shall not be

construed to waive any defenses available to Plaza in this action,

and all such defenses are expressly preserved.

11. Venue is proper pursuant to 28 U.S.C. §1446(a)

of the United States District Court for the District of Hawai`i.