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Deut sche Bank Wasn't Cl eared To Forecl ose In Ark.

,
Sui t Says
By Kai t l i n Ugol i k
Law 360, New Yor k (Mar c h 26, 2012, 5:41 PM ET) -- Deutsche Bank National Trust Co. was hit Thursday
with a proposed class action in Arkansas seeking a declaration that the bank wasn't authorized to operate in the
state when it foreclosed on homes and transferred their titles in 2010.
Deutsche Bank, acting as trustee for Morgan Stanley ABS Capital I Inc. and other foreign and domestic
trusts, c onduc t ed many f or ec l osur es and f or ec l osur e sal es i n Ar k ansas w i t hout obt ai ni ng t he
pr oper c er t i f i c at es f r om t he sec r et ar y of st at e, i nval i dat i ng al l of t he r el at ed t i t l e t r ansf er s ,
according to the complaint..
Case Inf or mat i on
Case Ti t l e
Dial et al v. Deutsche Bank National Trust Company et al
Cour t
Arkansas Eastern
Nat ur e of Sui t
220(Real Property: Foreclosure)
Case Number
4:12-cv-00180
Dat e Fi l ed
March 21, 2012
State Case Number
Case ID: 60CV-11-5001

Phonet i c Sear c h: off Per son I D: 10286650
I D Names/Cor por at i on Case Desc r i pt i on Par t y Type
Fi l i ng
Dat e
J udge
10286650
ASSET-BACKED PASS
THROUGH
CERTFICIATES SERIES
ARSI 2006-M3
Case: 60CV-12-
1306 DEUTSCHE BANK
NATL TRUST CO V
HARVEY SIMS
PLAINTIFF 19-MAR-12
, HON. TIM
FOX - 6TH
DIVISION
PULASKI
CIRCUIT
COURT
10286650
ASSET-BACKED PASS
THROUGH
CERTFICIATES SERIES
ARSI 2006-M3
Case: 60CV-12-
1100 DEUTSCHE BANK
NATIONAL TR V GLENDA
C COOK ET AL
PLAINTIFF 06-MAR-12
, HON. TIM
FOX - 6TH
DIVISION
PULASKI
CIRCUIT
COURT
10286650
ASSET-BACKED PASS
THROUGH
CERTFICIATES SERIES
ARSI 2006-M3
Case: 60CV-11-
6253 DEUTSCHE BANK
NAT TRUST CO V
FREDERICK CHERRY ET
A
PLAINTIFF 30-DEC-11
, HON.
CHRIS
PIAZZA -
2ND
DIVISION
6TH
CIRCUIT
10286650
ASSET-BACKED PASS
THROUGH
CERTFICIATES SERIES
ARSI 2006-M3
Case: 60CV-11-
6003 DEUTSCHE BANK
NATIONAL V NAPOLEON
DICKERSON ET AL
PLAINTIFF 13-DEC-11
, HON.
WENDELL
GRIFFEN -
5TH
DIVISION
6TH
CIRCUIT
10286650
ASSET-BACKED PASS
THROUGH
CERTFICIATES SERIES
ARSI 2006-M3
Case: 60CV-11-
5496 DEUTSCHE BANK
NATL TRUST CO V CHUCK
GLOVER ET AL
PLAINTIFF 15-NOV-11
, HON.
MACKIE M.
PIERCE -
17TH
DIVISION
6TH
CIRCUIT
10286650
ASSET-BACKED PASS
THROUGH
CERTFICIATES SERIES
ARSI 2006-M3
Case: 60CV-11-
5363 DEUTSCHE BANK
NATIONAL TRUST V
LORENZO SMITH ET AL
PLAINTIFF 09-NOV-11
, HON. JAY
MOODY -
3RD
DIVISION
6TH
CIRCUIT
10286650
ASSET-BACKED PASS
THROUGH
CERTFICIATES SERIES
Case: 60CV-11-
5001 JOHNATHAN D DIAL
ET AL V DEUTSCHE BANK
DEFENDANT 17-OCT-11
, HON.
WENDELL
GRIFFEN -
5TH
DIVISION
ARSI 2006-M3 NAT ET AL
6TH
CIRCUIT
10286650
ASSET-BACKED PASS
THROUGH
CERTFICIATES SERIES
ARSI 2006-M3
Case: 60CV-11-
4384 DEUTSCHE BANK
NAT TRUST V SHARON
WALKER
PLAINTIFF 12-SEP-11
, HON.
MACKIE M.
PIERCE -
17TH
DIVISION
6TH
CIRCUIT
10286650
ASSET-BACKED PASS
THROUGH
CERTFICIATES SERIES
ARSI 2006-M3
Case: 60CV-11-
3340 ROBERT ALLEN
SPEARS ET AL V
RECONTRUST CO NA ET
AL
DEFENDANT 06-JUL-11
, HON. JAY
MOODY -
3RD
DIVISION
6TH
CIRCUIT
10286650
ASSET-BACKED PASS
THROUGH
CERTFICIATES SERIES
ARSI 2006-M3
Case: 60CV-11-
2965 ALAN WRAY ET AL V
DEUTSCHE BANK
NATIONAL ET AL
DEFENDANT 14-JUN-11
, HON.
ALICE S.
GRAY -
12TH
DIVISION
6TH
CIRCUIT
10286650
ASSET-BACKED PASS
THROUGH
CERTFICIATES SERIES
ARSI 2006-M3
Case: 60CV-11-
1782 EVELYN L TAYLOR
V DEUTSCHE BANK ET AL
DEFENDANT 13-APR-11
, HON. JAY
MOODY -
3RD
DIVISION
6TH
CIRCUIT
10286650
ASSET-BACKED PASS
THROUGH
CERTFICIATES SERIES
ARSI 2006-M3
Case: 60CV-11-
125 DEUTSCHE BANK V
ANGELA BALTIMORE ET
AL
PLAINTIFF 12-JAN-11
, HON.
MARY S.
MCGOWAN
- 9TH
DIVISION
6TH
CIRCUIT
10286650
ASSET-BACKED PASS
THROUGH
CERTFICIATES SERIES
ARSI 2006-M3
Case: 60CV-10-
1876 DEUTSCHE BANK
NAT TRUST CO V
CLARENCE TURNBO ET
AL
PLAINTIFF 13-APR-10
, HON. TIM
FOX - 6TH
DIVISION
PULASKI
CIRCUIT
COURT
10286650
ASSET-BACKED PASS
THROUGH
CERTFICIATES SERIES
ARSI 2006-M3
Case: 60CV-10-
850 DEUTSCHE BANK
NATIONAL TRUST CO V
OTHALENE DAVIS
PLAINTIFF 17-FEB-10
, HON. JAY
MOODY -
3RD
DIVISION
6TH
CIRCUIT
, HON. JAY
10286650
DEUTSCHE BANK
NATIONAL TRUST
COMPANY
Case: 60CV-12-
1340 DEUTSCHIE BANK
NATIONAL TRUST CO V
GLEN BUSH ET AL
PLAINTIFF 21-MAR-12
MOODY -
3RD
DIVISION
6TH
CIRCUIT
10286650
DEUTSCHE BANK
NATIONAL TRUST
COMPANY
Case: 60CV-12-
1341 DEUTSCHE BANK
NATL TRUST CO V MONA
PARTMAN ET AL
PLAINTIFF 21-MAR-12
, HON. JAY
MOODY -
3RD
DIVISION
6TH
CIRCUIT
10286650
DEUTSCHE BANK
NATIONAL TRUST
COMPANY
Case: 60CV-12-
1306 DEUTSCHE BANK
NATL TRUST CO V
HARVEY SIMS
PLAINTIFF 19-MAR-12
, HON. TIM
FOX - 6TH
DIVISION
PULASKI
CIRCUIT
COURT
10286650
DEUTSCHE BANK
NATIONAL TRUST
COMPANY
Case: 60CV-12-
1311 DEUTSCHE BANK
NATIONAL V BELINCIA
JONES ET AL
PLAINTIFF 19-MAR-12
, HON.
ALICE S.
GRAY -
12TH
DIVISION
6TH
CIRCUIT
10286650
DEUTSCHE BANK
NATIONAL TRUST
COMPANY
Case: 60CV-12-
1310 DEUTSCHE BANK
NATL TRUST CO V CHUCK
GLOVER ET AL
PLAINTIFF 19-MAR-12
, HON.
MACKIE M.
PIERCE -
17TH
DIVISION
6TH
CIRCUIT
10286650
DEUTSCHE BANK
NATIONAL TRUST
COMPANY
Case: 60CV-12-
1100 DEUTSCHE BANK
NATIONAL TR V GLENDA
C COOK ET AL
PLAINTIFF 06-MAR-12
, HON. TIM
FOX - 6TH
DIVISION
PULASKI
CIRCUIT
COURT
Page: 3 Rec or ds: 41 - 60
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S T A T E C A S E F I L E S
Doc k et Repor t
Doc k et Repor t Resul t s
Repor t Sel ec t i on Cr i t er i a
Case I D: 60CV-11-5001
Ci t at i on No:
Doc k et St ar t Dat e:
Doc k et Endi ng Dat e:
Case Desc r i pt i on
Case I D: 60CV-11-5001 - JOHNATHAN D DIAL ET AL V DEUTSCHE BANK NAT ET AL -NON-TRIAL
Fi l i ng Dat e: Monday , October 17th, 2011
Type: OC - OTHER-CIVIL CONTRACTS
St at us: none
I mages:

Case Event Sc hedul e
No case events were found.
Case Par t i es
Seq
#
Assoc
End
Dat e
Type I D Name
1 JUDGE 7965388 HON. WENDELL GRI FFEN - 5TH DI VI SI ON 6TH
CI RCUI T
(501)340-8550
Al i ases: GRIFFEN

2 PLAINTIFF 10950127 DI AL, J OHNATHAN D
Al i ases: none

3 PLAINTIFF 10950128 DI AL, LYDI A A
Al i ases: none

4 DEFENDANT 10286650 DEUTSCHE BANK NATI ONAL TRUST COMPANY
Al i ases: ASSET-BACKED PASS THROUGH CERTFICIATES
SERIES ARSI 2006-M3
AS TRUSTEEE FOR AMERIQUEST MORTGAGE
SECURITIES INC.,
AS TRUSTEE FOR SGH TRUST SERIES 2011-A

5 DEFENDANT 10950130 MORGAN STANLEY ABS CAPI TAL I I NC TRUST
2006-HE3
Al i ases: none

6 DEFENDANT 10335845 WI LSON & ASSOCI ATES
Al i ases: TRUSTEE FOR BANK OF NEW YORK MELLON
CORPORATION
TRUSTEE FOR CERTIFICATEHOLDERS OF THE
CWABS INC ASSET-BACKED

7 DEFENDANT 10950131 MORTON, THOMAS J
Al i ases: none

8 DEFENDANT 10950132 MORTON, WANNETTA Y
Al i ases: none

9 PLAINTIFF/PETITIONER
ATTORNEY
1004112 MANN, PETER DRAKE
Al i ases: MANN, PETER DRAKE
MANN, DRAKE

Doc k et Ent r i es
Fi l i ng
Dat e
Desc r i pt i on Name Monet ar y
10/17/2011
08:16 AM
COMPLAINT/PETITION FILED $
Ent r y: none.
I mages WEB

10/17/2011
04:13 PM
MOF ORIGINAL
Ent r y: none.
I mages No Images

10/18/2011
08:16 AM
SUMMONS ISSUED
Ent r y: none.
I mages No Images

10/18/2011
08:19 AM
PAYMENT RECEIVED
Ent r y: A Payment of -$165.00 was made on receipt 60CI68052.
I mages No Images

11/14/2011
04:22 PM
MOTION DISMISS DIAL, JOHNATHAN D
Ent r y: PLAINTIFFS' FIRST MOTION TO DISMISS ACTION AGAINST DEFENDANT WILSON & ASSOCIATES, PLLC
I mages WEB

11/22/2011
10:22 AM
LETTER TO COURT
Ent r y: TO: JUDGE GRIFFIN TO: DRAKE MANN
I mages WEB

11/22/2011
10:23 AM
JUDGMENT-DISMISS DIAL, JOHNATHAN D
Ent r y:
ORDER OF VOLUNTARY DISMISSAL OF ACTION AGAINST DEFENDANT WILSON AND ASSOCIATES, PLLC
DRAKE MANN CV.5.2011.1361
I mages CV.5.2011.1361

02/13/2012
10:59 AM
MOTION EXTEND SERVICE TIME DIAL, JOHNATHAN D
Ent r y: PLAINTIFFS FIRST MOTION FOR EXTENSION OF TIME TO SERVE DEFENDANTS
I mages WEB

02/14/2012 AMENDED COMPLAINT DIAL, JOHNATHAN D
02:54 PM
Ent r y: FIRST AMENDED AND SUBSTITUTED COMPLAINT
I mages WEB

02/14/2012
04:29 PM
SUMMONS ISSUED
Ent r y: none.
I mages No Images

02/21/2012
03:08 PM
ORDER EXTENSION OF TIME DIAL, JOHNATHAN D
Ent r y:
ORDER GRANTING PLAINTIFFS' FIRST MOTION FOR EXTENSION OF TIME TO SERVE DEFENDANTS
CV.5.2012.194
I mages CV.5.2012.194

02/29/2012
04:52 PM
MOTION EXTENSION OF TIME
Ent r y: DEFENDANTS' MOTION FOR EXTENSION OF TIME
I mages WEB

03/09/2012
03:04 PM
ORDER EXTENSION OF TIME
Ent r y: ORDER FOR EXTENSION OF TIME CV.5.2012.278
I mages CV.5.2012.278

03/19/2012
04:58 PM
MOTION EXTENSION OF TIME
Ent r y: MOTION TO EXTEND TIME TO RESPOND TO AMENDED COMPLAINT
I mages WEB

03/22/2012
04:51 PM
NOTICE REMOVED FEDERAL COURT
Ent r y: NOTICE TO STATE COURT AND PLAINTIFFS OF REMOVAL TO FEDERAL COURT
I mages WEB

03/23/2012
05:25 PM
RETURN OF SERVICE
Ent r y:
AMENDED CERTIFICATE OF SERVICE BY FIRST CLASS MAIL TO: DRANK MANN, PAUL SCHMIDT, SEAN
ROMMEL
I mages No Images

03/26/2012
04:45 PM
ORDER EXTENSION OF TIME DEUTSCHE BANK NATIONAL TRUST COMPANY,
Ent r y: ORDER EXTENDING TIME TO RESPOND TO AMENDED COMPLAINT
I mages WEB

STATE OF ARKANSAS
CIRCUIT COURT
PULASKI COUNTY
Johnathan D. Dial and Lydia A. Dial, I'
husband and wife, individually, and on "II
behalf of similarly situated persons,
Plaintiffs,
versus
.
Deutsche Bank National Trust Company, as
Trustee for Morgan Stanley ABS Capital I
Inc. Trust 2006-HE3, individually, and as
representative of similarly situated persons;
Morgan Stanley ABS Capital I Inc. Trust
2006-HE3; Wilson & Associates, P.L.L.C.;
and Thomas J. Morton and Wannetta Y.
Morton.
Defendants.
FILED 10/17/11 16:13=30
Cranef'u! .. ki Cler,
COMPLAINT
1111111111 1111111111111 II 111111111111 1111111 11111
(
60CV-11-5001 601-60100032859-004
JOHNATHAN 0 DIAL ET AL V DE 12 Pages
PULASKI CO 10/17/2011 08:16 AM
CIRCUIT COURT CC05$
SUMMARY OF CASE
1. This case seeks to remedy Deutsche Bank: National Trust Company's,
Morgan Stanley ABS Capital I Inc. Trust 2006-HE3's, and all other similarly situated
mortgagees' and trustees' past and continuing violations of Arkansas's Statutory
Foreclosure Act, which is codified at Ark. Code Ann. 18-50-101- 117 (the "Statutory
Foreclosure Act").
2. Defendants Deutsche Bank: National Trust Company, Morgan Stanley
ABS Capital I Inc. Trust 2006-HE3, and all other similarly situated mortgagees and
trustees violated and continue to violate the Statutory Foreclosure Act by failing to be
"authorized to do business in Arkansas," prior to availing themselves of the remedies
provided by the Statutory Foreclosure Act.
3. Because Deutsche Bank: National Trust Company, Morgan Stanley ABS
Capital I Inc. Trust 2006-HE3, and all other similarly situated mortgagees and trustees
failed to comply with the requirements of the Statutory Foreclosure Act, all purported
foreclosure sales are invalid, and Deutsche Bank National Trust Company, Morgan
Stanley ABS Capital I Inc. Trust 2006-HE3, and all other similarly situated mortgagees
and trustees did not acquire title to the real property in which they purported to foreclose
their mortgage interest.
4. Any purchaser of real property from Deutsche Bank National Trust
Company, Morgan Stanley ABS Capital I Inc. Trust 2006-HE3, or any other similarly
situated mortgagee or trustee, consequently, did not acquire title. to that real property.
THE PARTIES, JURISDICTION, AND VENUE
5. Plaintiffs, Johnathan D. Dial and Lydia A. Dial, are residents of Pulaski
County, Arkansas; they have an interest which would be affected by the declaration of
rights sought in this action by virtue of their having purchased Lot 26, Block 17,
Overbook Addition to the City of Little Rock, Arkansas, more commonly known. as 52
Dove Creek Circle, North Little Rock, Arkansas, from Defendant Deutsche Bank
National Trust Company, which claimed title by having availed itself of the procedures of
the Statutory Foreclosure Act when it was not authorized to do business in Arkansas.
6. Defendant Deutsche Bank National Trust Company is a national banking
association; it is not authorized to do business in this state.
7. Morgan Stanley ABS Capital I Inc. Trust2006-HE3 is a foreign trust; it is
not authorized to do business in this state; it has an interest which would be affected by
the declaration of rights sought in this action. .
8. Wilson & Associates, P .L.L.c., is an Arkansas law firm based in Pulaski
County among whose members are included attorneys who are active licensed members
of the Bar of the Supreme Court of the State of Arkansas; Wilson & Associates has
interests which would be affected by the declaration of rights sought in this action by
virtue of its having served as attomey-in-fact in the relevant transactions.
9. Thomas J. Morton and Wannetta Y. Morton have an interest which would
be affected by the declaration of rights sought in this action by virtue of their having
mortgaged Lot 26, Block 17, Overbook Addition to the City of Little Rock, Pulaski
County, Arkansas, more commonly known as 52 Dove Creek Circle, North Little Rock,
Arkansas; they are individuals whose whereabouts are presently unknown.
10. This Court has personal jurisdiction over Defendants pursuant to Ark.
Code Ann. 16-13-201.
11. Venue is proper in this Court pursuant to Ark. Code Ann. 16-55-213.
OPERATIVE LAW
12. The Statutory Foreclosure Act states that no "person, firm, company,
association, fiduciary, or partnership, either domestic or foreign, shall avail themselves of
the procedures under this chapter unless authorized to do business in this state." Ark.
Code Ann. 18-50-117.
INTRODUCTION
Plaintiff Class Allegations
13. The Plaintiffs bring this state-wide class action on behalf of themselves
and all other persons similarly situated in relation to Deutsche Bank National Trust
Company, Morgan Stanley ABS Capital I Inc. Trust 2006-HE3, and all other similarly
situated mortgagees and trustees.
14. The proposed class (the Class) is defined as follows:
All persons who .purchased real property that had been the subject of a sale
purportedly made pursuant to the procedures under Chapter 50 of Title 18 of the
Arkansas Code by a mortgagee or trustee when the mortgagee or trustee was not
authorized to do business in the State of Arkansas.
Excluded from the class are the following individuals and/or entities:
a. Any and all federal, state, or local governments, including but not limited to
their department, agencies, divisions, bureaus,. boards, sections, groups,
counsels, and/or subdivisions;
b. Individuals or entities, if any, who timely opt out of this proceeding using the
correct protocol for opting out;
c. Individuals or entities, if any, who have previously settled or compromised
claims( s) as identified herein for the class; and
d. Any currently sitting circuit judge and/or person within the third degree of
consanguinity to any circuit judge.
15. The plaintiffs will fairly and adequately protect the interest of the class,
and are adequate. representatives of the class of persons defined herein. The plaintiffs are
interested in the outcome of this lawsuit and understand the importance of adequately
representing every member of the classes described herein.
Numerosity
16. On information and belief, Deutsche Bank National Trust Company has
availed itself of the procedures under Chapter 50 of Title 18 when it was not authorized
to do business in this state on more than two hundred and twenty occasions in Pulaski
County alone.
17. As a result, the parties are so numerous that it is impracticable to bring all
before the Court within a reasonable time, and a class action is therefore superior to other
methods for the fair and efficient adjudication of this controversy.
Commonality
18. There are common questions of law and fact affecting the members of the
class. Such common questions predominate over any questions affecting only individual
class members.
19. These questions include, but are not limited to:
a. Whether Deutsche Bank National Trust Company violated Ark. Code
Ann. 18-50-118;
b. Whether Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 violated
Ark. Code Ann. 18-50-118;
c. Whether Deutsche Bank as Trustee violated Ark. Code Ann. 18-50-
118;
d. Whether Wilson & Associates violated Ark. Code Ann. 18-50-118;
e. Whether Plaintiffs and the Class are entitled to declaratory relief;
f. Whether Defendantsbreached contracts of sale to the Plaintiffs and the
Class;
g. Whether Plaintiffs and the Class are entitled to injunctive relief;
h. Whether Plaintiffs and the Class are entitled to specific performance;
and
i. Whether Plaintiffs and the Class are entitled to attorneys fees and
costs.
Typicality
20. Claims of the named Plaintiffs are typical of the claims of other members
of the class in that they all arise from Deutsche Bank National Trust Company's, Morgan
Stanley ABS Capital I Inc. Trust 2006-HE3's, and all other similarly situated
mortgagees' and trustees' normal business practice of utilizing the Statutory Foreclosure
Act's procedures when Deutsche Bank National Trust Company, Morgan Stanley ABS
Capital I Inc. Trust 2006-HE3, or other similarly situated mortgagees and trustees were
not authorized to do business in the state.
Adequacy of Representation
21. Plaintiffs will fairly and adequately protect the interests. of the Class.
Plaintiffs' interests do not conflict with the interests of the Class members. Furthermore,
Plaintiffs have retained competent counsel experienced in class action litigation.
Plaintiffs' counsel will fairly and adequately protect and represent the interests of the
Class.
22. In addition, Deutsche Bank National Trust Company, Deutsche Bank as
Trustee have acted on grounds that apply generally to the class, so that fmal injunctive
relief or corresponding declaratory relief is appropriate respecting the Class as a whole.
23. In addition, questions of law or fact common to the Class members
predominate over any questions affecting only individual members, and that a class
action is superior to other available methods for fairly and efficiently adjudicating the
controversy.
24. Jurisdiction and venue are proper in Pulaski County, Arkansas.
FACTS
25. On January 23, 2006, Thomas J. Morton and Wannetta Y. Morton
executed and delivered a mortgage, recorded on February 17, 2006, as Instrument No.
2006012916 in the real estate records of Pulaski County, Arkansas, to Lot 26, Block 17,
Overbook Addition to the City of Little Rock, Pulaski County, Arkansas (the "Property").
Exhibit A.
26. In January 2010, Wilson & Associates, P.L.L.C., was a law finn among
whose members was included Matthew Smith, Esquire, an attorney who was an active
licensed member of the Bar of the Supreme Court ofthe State of Arkansas.
27. On January 12, 2010, Wilson & Associates, P.L.L.C., acting as attorney-
in-fact for Defendant Deutsche Bank National Trust Company, as Trustee for Defendant
Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 ("Deutsche Bank as Trustee"),
proceeded to sell the Property at public auction, pursuant to Arkansas's Statutory
Foreclosure Act (the "Auction").
28. At the Auction, the Property was purportedly sold to Deutsche Bank as
Trustee.
29. Thereafter, Wilson & Associates, P.L.L.c. prepared a Mortgagee's Deed
purportedly granting, selling, and conveying the Property to Deutsche Bank as Trustee.
The Mortgagee's Deed was filed and recorded in the real estate records of Pulaski
County, Arkansas, on January 22, 201 O. Exhibit B.
30. On January 22,2010 Morgan Stanley ABS Capital I Inc. Trust 2006-HE3
was not "authorized to do business in this state," as that phrase is used in Ark. Code Ann.
18-50-117, and, therefore, Morgan .stanley ABS Capital I Inc. Trust 2006-HE3could
not avail itself of the procedures of Statutory Foreclosure Act.
31. On January 22,2010, Defendant Deutsche Bank National Trust Company
and Deutsche Bank as Trustee were not "authorized to do business in this state," as that
phrase is used in Ark. Code Ann. 18-50-117, and,therefore, neither Defendant
Deutsche Bank National Trust Company nor Deutsche Bank as Trustee could avail itself
ofthe procedures of Statutory Foreclosure Act.
32. The Auction failed to effect a sale of the Property under the Statutory
Foreclosure Act.
33. In March 2010, Deutsche Bank as Trustee entered a contract to sell the
Property to the plaintiffs. The plaintiffs paid Deutsche Bank as Trustee the purchase
price and did all other acts required under the contract.
34. On or about March 22, 2010, Deutsche Bank as Trustee executed and
delivered to Plaintiffs Jonathan D. Dial and Lydia A. Dial a Special Warranty Deed
purportedly conveying fee simple title to the Property, and Deutsche Bank as Trustee
bound itself to warrant and defend the title to the Property. Exhibit C. All terms and
conditions ofthe contract merged into the Special Warranty Deed by operation oflaw.
35. The March 22, 2010 Special Warranty Deed failed to.effect a transfer of
fee simple title to the Property because Deutsche Bank as Trustee had not acquired any
title to transfer.
COUNT ONE-DECLARATORY JUDGMENT
36. Plaintiffs incorporate into this Count all preceding paragraphs of this
complaint.
37. The Arkansas Declaratory Judgments Act is remedial; its purpose is to
settle and to afford relief from uncertainty and insecurity with respect to rights, status,
and other legal relations; it is to be liberally construed and administered. Ark. Code Ann.
16-11-102.
38. Courts of record have the power to declare rights, status, and other legal
relations; the declaration may be affirmative or negative in form and effect and
declarations shall have the force and effect of a final judgment or decree. Ark. Code Ann.
16-111-103.
39. Any person interested under a deed, written contract, or other writings
constituting a contract or whose rights or other legal relations are affected by a statute or
contract may have determined any question of construction or validity arising under the
instrument, statute, or contract and obtain a declaration of rights or other legal relations
thereunder. Ark. Code Ann. 16-111-104.
40. Plaintiffs seek a declaration that, having failed to obtain a certificate from
the Arkansas Secretary of State, or otherwise failing to be authorized to do business in
this state, neither Deutsche Bank National Trust Company nor Deutsche Bank as Trustee
was qualified to do business in this state and, therefore, neither Deutsche Bank National
Trust Company nor Deutsche Bank as Trustee could lawfully avail itself of the Statutory
Foreclosure Act's procedures; therefore, Deutsche Bank National Trust Company and
Deutsche Bank as Trustee failed to foreclose Thomas J. Morton and Wannetta Y.
Morton's interest in the Property at the Auction; .and Deutsche Bank National Trust
Company and Deutsche Bank as Trustee failed to convey fee simple title to the Property
when they executed and delivered the Special Warranty Deed to Plaintiffs.
41. In addition to the foregoing declaration, Plaintiffs reserve the right to
apply for further relief based ona declaratory judgment or decree herein.
COUNT TWO - BREACH OF CONTRACT
42. Plaintiffs incorporate into this Count all preceding paragraphs of this
complaint.
43. Plaintiffs and Deutsche Bank as Trustee entered a contract, which was
merged into the Special Warranty Deed.
44. The contract and the Special Warranty Deed required Deutsche. Bank as
Trustee to convey fee simple title to the Property.
45. The plaintiffs paid Deutsche Bank as Trustee the purchase price for the
Property, as required under the contract and the Special Warranty Deed.
46. Deutsche Bank as Trustee failed to convey simple title to the Property.
47. Deutsche Bank as Trustee breached its contract and the Special Warranty
Deed with the plaintiffs.
48. The plaintiffs are entitled to a reasonable attorney's fee, pursuant to Ark.
Code Ann. 16-22-308, assessed by the Court and collected as costs.
RELIEF REQUESTED
49. Plaintiffs, on behalf of themselves and all Class members, demand
judgment be entered against Defendant and that the Court grant the following:
a. A jury trial of all issues triable by right by a jury;
b. An order certifying the Class and appointing Plaintiffs and their
counsel to represent the Class;
c. Judgment against Defendant for Plaintiffs and the Class's asserted
causes of action;
d. Preliminary injunctive relief prohibiting Defendants from taking action
to deprive Plaintiffs of possession of the Property;
e. Positive injunctive relief compelling Defendants to take all steps
necessary to effect delivery of fee simple title to the Property to
Plaintiffs;
f. Specific performance of the contract and the Special Warranty Deed;
g. An award of reasonable attorneys' fees and other litigation costs
reasonably incurred; and
h. Any and all other relief to which the Plaintiff and the Class may be
entitled.
Respectfully submitted,
GILL ELROD RAGON OWEN & SHERMAN, P.A.
425 West Capitol Avenue, Suite 3801
Little Rock, Arkansas 72201
(501) 376-3800


Christopher L. Travis, Arkansas Bar No. 97093
and
Sean F. Rommel
Arkansas Bar No. 94158
srommel@wylyrommel.com
James C. Wyly
Arkansas Bar No. 90158
jwyly@wylyromme1.com
WYL Y PLLC
2311 Moores Lane
Texarkana, Texas 75503
(903) 334-8646 (Telephone)
(903) 334-8645 (Fax)
COVER SHEET 4t
STATE OF ARKANSAS
CIRCUIT COURT: CIVIL
The civil reporting form and the information contained herein shall not be admissible as evidence in any court proceeding or replace or
supplement thefllingand service of pleadings, orders, or other papers as required by law or Supreme Court Rule. This form is
required pursuant to Administrative Order Number 8. Instructions are located on the back of the form.
County: Pulaski
Judge:
....
Fll.,ING INFORMATION
<0+'"-
District:
S+-'-'
Division:
Docket Number: CIV-1 \ =so e, \
Filing Date: , (i II g I 1\
Plaintiff: Johnathan D. Dial and Lydia A. Dial, husband and
Wife, individually, et al
Defendant: Deutsche Bank National Trust Company as Trustee
For Morgan Stanley ABS Capital I Inc. Trust
2006-H3, et al
Attorney Providing Information-Drake Mann
Plaintiff 0 Defendant GILL ELROD RAGON
425 W. Capitol, Suite 3801
Little Rock, AR 72201
(501) 376-3800
Litigant, if Pro Se:
Type of Case:
Torts
o (NM) Negligence: Motor Vehicle
o (NO) Negligence: Other
o (BF) Bad Faith
Equity
o (FC) Foreclosure
o (QT) Quiet Title
o (IJ) Injunction
Miscellaneous
o (CD) Condemnation
o (RE) Replevin
o (DJ) Declaratory Judgment
o (UD) Unlawful Detainer o (FR) Fraud
D(Mp) Malpractice
o (PL) Products Liability
o (PT) Partition
o (OT) Other -'--_____ _
o (IN) Incorporation
o (EL) Election
o (OD) Other
Contracts
o (IS) Insurance
o (DO) Debt: Open Account
o (PN) Debt: Promissory Note
o (EM) Employment
l&J (OC) Other Breach ofwarrantv
Jury Trial Requested: [RI Yes D No Manner of Filing:
DISPOSITION INFORMATION
o (FJ) Foreign Judgment
o (WT) Writs_---
o (AA) Administrative Appeal
o (CF) Property Forfeiture
o (RD) Remove Disabilities
o (NC) Name Change
o (OM) Other
[RI Original 0 Re-open 0 Transfer
o Retur11 from FederallBankruptcy Court
Disposition Date: o Bench Trial 0 Non Trial 0 . Jury Trial
Judgment Type:
o (DJ) Default Judgment
o (SJ) Summary Judgment
o (CJ) Consent Judgment
o (TJ) Trial Judgment
o (OJ) Other Judgment
o (pG) Petition Granted
o (PD) Petition Denied
o (DF) Decree of Foreclosure
Judgment For:
DPlaintiff D . Defendant
Clerk's Signature
AOC23 10-01
625 Marshall Street
Little Rock, AR72201
Dismissal Type:
o (DW) Dismissed with Prejudice
o (DN) Dismissed without Prejudice
o Both Judgment Amount: $
Date
Other:
o (TR) Transferred to Another Jurisdiction
D(RB) Removed to Bankruptcy Court
o (RF) Removed to Federal Court
o (AR) Arbitration
GILL ELROD RAGON OWEN & SHERMAN, P.A.
STEPHEN K. COFFMAN, P.A.
MArnmw B. FINCH
ROGER H. FITZGIBBON, JR.
JOHNP. GILL, P.A.
T. DANIEL GOODWIN
DRAKE MANN
KELLYW. MCNULTY
KELLyM. McQUEEN, P.A.
CHARLES C. OWEN, P.A.
DYLAN H. POTTS
HEARTSlLLRAGON III, P.A.
W. BRADFORD SHERMAN
CHRISTOPHER L. TRAVIS, P.A.
ATIORNEYS
METROPOLITAN TOWER
425 WEST CAPITOL A VENUE, SUITE 3801
LITTLE ROCK, ARKANSAS 72201
(501)376-3800 FAX (501) 372-3359
www.gill-Iaw.com
November 11, 2011
The Honorable Wendell L. Griffen
Pulaski County Circuit Judge, 5
th
Division
401 West Markham Street, Room 410
Little Rock, Arkansas 72201
Re: Dial, et aI., v. Deutsche Bank National Trust Company
Pulaski County Circuit Court Civil Action ~ 60CV20 11-500 1
Dear Judge Griffen:
JUDY P. McNEIL
JENNY HOLT TEETER
CHAo L. CUMMING, JR.
KATIE A. MIDDLETON
DANIELLE M. WHITEHOUSE
CHAoL.WOOD
ROBERT B.BEACH
BETII EcHOLS, COUNSEL
JOHN A. FOGLEMAN
OF CoUNSEL (1911-2004)
W. W. ELROD II (1950-2005)
FILED 11/22/11 10:22:01
L.:1t" t"'::I Cr afle Pl.,.Il aski f'i rill l' t r:l'::'t,j,
r1C oJ - ~ . '" -
1111111111 1111111111 II 11111111 11,1 III 1111 II 111111 .
60CV-11-5001 601-60100034638-032
JOHNATHAN D DIAL ET AL ~ DEUT 1 Page
PULASKI CO 11/22/2011 10:22 AM
GIRCUIT COURT FI74
I have enclosed a file-marked copy of the plaintiffs' motion to dismiss Wilson & Associates,
PLLC. This is a motion for voluntary non-suit, pursuant to Ark. R. Civ. P. 41. The defendants
have not been served.
I have enclosed a proposed order of dismissal, which I respectfully request that, if the order
meets with your approval, you sign it and ask your staff to deliver it to the clerk for filing.
/
STATE OF ARKANSAS
CIRCUIT COURT
PULASKI COUNTY
FIFTH DIVISION
Johnathan D. Dial and Lydia A. Dial,
husband and wife, individually, and on
behalf of similarly situated persons,
Plaintiffs,
versus
Deutsche Bank National Trust Company, as
Trustee for Morgan Stanley ABS Capital I
Inc. Trust 2006-HE3, individually, and as
representative of similarly situated persons;
Morgan Stanley ABS Capital I Inc. Trust
2006-HE3, individually, and as representative
of similarly situated persons; and
Thomas J. Morton and Wannetta Y. Morton.
Defendants.
FILED 02/14/12 14:54:14 .A-rL
L.3P":I Cr.:tne Ci felJ it CLerk

Civil Action N 60 - CV- 20U-5001
FIRST AMENDED AND SUBSTITUTED
COMPLAINT 1111111111 11111111111 11111 1II11 1111111111 11111111
60CV-11-5001 601-60100038383-026
JOHNATHAN D DIAL ET AL V DE 40 Pages
SUMMARY OF CASE
PULASKI CO 02/1412012 02:54 PM
CIRCUIT COURT FI40
I, Plaintiffs bring this complaint for declaratory judgment pursuant to Ark.
R. Civ. P. 57 and Ark. Code Ann. 16-111-101 - 16-111-111 to determine the rights
and status of the parties with regard to Plaintiffs' contract to purchase land and the deed
into which the contract merged. Pursuant to Ark. R. Civ. P. 57, Plaintiffs respectfully
request a speedy hearing.
2. This action also seeks to remedy any past and continuing violations of
Arkansas's Statutory Foreclosure Act, which is codified at Ark. Code Ann. 18-50-101
- 117 (the "SF A").
3. Defendant Deutsche Bank National Trust Company, as Trustee for
Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 ("DB, as Trustee") and similarly
situated entities violated, and may continue to violate, the SF A by failing to be
"authorized to do business in Arkansas," prior to availing themselves of the remedies
provided by the SF A.
4. Because DB, as Trustee, and other similarly situated entities failed to
comply with the requirements of the SF A, all purported statutory foreclosures they
conducted are invalid, and DB, as Trustee, and the other similarly situated entities never
acquired title to the real properties in which they purported to foreclose their mortgage
interests.
5. Defendant Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 ("Trust
2006-HE3"), and similarly situated trusts, also violated the SFA by failing to be
"authorized to do business in Arkansas," prior to availing themselves of the remedies
provided by the SF A; because they failed to comply with the requirements of the SF A,
purported statutory foreclosures they conducted are invalid, and they did not acquire title
to the real property in which they purported to foreclose their mortgage interests.
6. As a result, entities that failed to be "authorized to do business m
Arkansas," before availing themselves of the remedies provided by the SF A failed to
convey fee title to anyone who purchased real property that had been foreclosed through
the SFA.
7. These entities breached their covenants to warrant and defend the title
against all their own acts.
8. In addition, any owners of real property who purportedly had their
interests in real property foreclosed did not.
9. DB, as Trustee, is only one of dozens of mortgagees who have violated the
SF A by failing to be "authorized to do business in Arkansas," prior to availing
themselves of the remedies provided by the SF A.
THE PARTIES, JURISDICTION, AND VENUE
10. Plaintiffs, Johnathan D. Dial and Lydia A. Dial, are residents of Pulaski
County, Arkansas; they have an interest which would be affected by the declaration of
rights sought in this action by virtue of their having purchased Lot 26, Block 17,
Overbook Addition to the City of Little Rock, Arkansas, more commonly known as 52
Dove Creek Circle, North Little Rock, Arkansas (the "Property"), from Defendant DB, as
Trustee, on or about March 22,2010.
11. Deutsche Bank National Trust Company is a foreign corporation; it is a
non-depository trust company, and a member of the Federal Reserve. Deutsche Bank
National Trust Company has acted as trustee for various trusts that are "mortgagees" as
that term is used in the SFA, and, acting in that capacity, Deutsche Bank National Trust
Company has conducted numerous statutory foreclosure sales within and outside Pulaski
County, Arkansas.
12. Thomas J. Morton and Wannetta Y. Morton ("the Mortons") have an
interest which would be affected by the declaration of rights sought in this action by
virtue of their having mortgaged the Property; they are individual residents of Arkansas.
13. Trust 2006-HE3 is a foreign trust; it has not obtained a certificate of
authority from the Secretary of State pursuant to Ark. Code Ann. 4-27-1501, nor has it
complied with the filing requirements of Ark. Code Ann. 4-31-402, and, as of January
12, 2010, it was not "authorized to do business in Arkansas," as that phrase is used in
Ark. Code Ann. 18-50-117; it was the successor-in-interest to the Mortons' mortgagee.
14. This Court has personal jurisdiction over Defendants pursuant to Ark.
Code Ann. 16-13-20l.
15. Venue is proper in this Court pursuant to Ark. Code Ann. 16-55-213.
OPERATIVE LAW
16. The Statutory Foreclosure Act states that no "person, firm, company,
association, fiduciary, or partnership, either domestic or foreign, shall avail themselves of
the procedures under this chapter unless authorized to do business in this state." Ark.
Code Ann. 18-50-117.
FACTS
17. On January 23, 2006, Thomas J. Morton and Wannetta Y. Morton
executed and delivered a mortgage, recorded on February 17, 2006, as Instrument No.
2006012916 in the real estate records of Pulaski County, Arkansas, to the "Property".
Exhibit A.
18. On January 12, 2010, Wilson & Associates, P.L.L.C., acting as attomey-
in-fact for DB, as Trustee, proceeded to sell the Property at public auction, pursuant to
the SF A (the "Auction").
19. At the Auction, the Property was purportedly sold to DB, as Trustee.
20. Thereafter, Wilson & Associates, P.L.L.C. prepared a Mortgagee's Deed
wherein DB, as Trustee recites:
.1
fI
a. the Mortons' granting, selling, and conveying the Property to its
original mortgagee, the Mortons' default, and the status of DB, as
Trustee, as holder of the Mortons' indebtedness;
b. its election, upon the Mortons' default, to sell the Property pursuant to
the SF A, and the occurrence of the Auction.
21. After these recitals in the Mortgagee's Deed, DB, as Trustee, "does
GRANT, SELL, AND CONVEY" the Property to DB, as Trustee.
22. The Mortgagee's Deed was filed and recorded in the real estate records of
Pulaski County, Arkansas, on January 22,2010. Exhibit B.
23. Thereafter, in March 2010, DB, as Trustee, entered a contract to sell the
Property to Plaintiffs. Plaintiffs paid DB, as Trustee, the purchase price and did all other
acts required under the contract.
24. On or about March 22, 2010, DB, as Trustee, delivered to Plaintiffs a
Special Warranty Deed wherein DB, as Trustee, stated that it "does hereby convey" the
Property to Plaintiffs and further that DB, as Trustee, "hereby binds itself to warrant and
defend the title as against all acts of the Grantor herein and no other." Exhibit C.
Violation of the SF A
25. On or before January 12, 2010, and continuing through at least January 22,
2010, neither Deutsche Bank National Trust Company nor DB, as Trustee, nor Trust
2006-HE3 had obtained a certificate of authority from the Secretary of State, pursuant to
Ark. Code Ann. 4-27-1501.
26. On or before January 12, 2010, and continuing through at least January 22,
2010, neither Deutsche Bank National Trust Company nor DB, as Trustee, nor Trust
2006-HE3 had complied with the delivery and payment requirements of Ark. Code Ann.
4-31-402 or otherwise caused the Secretary of State to issue a certificate showing that
the declaration of trust is, and has been, on file in the office of the Secretary of State.
27. On or before January 22,2010, and continuing through at least January 22,
2010, neither Deutsche Bank National Trust Company nor DB, as Trustee, nor Trust
2006-HE3 were "authorized to do business in this state," as that phrase is used in Ark.
Code Ann. 18-50-117.
Consequences of Violation of the SF A
28. On account of their failure to be "authorized to do business in this state,"
neither Deutsche Bank National Trust Company nor DB, as Trustee, nor Trust 2006-HE3
could avail themselves of the procedures of SF A.
29. The Auction failed to effect a foreclosure of the Mortons' interest in the
Property.
30. The Auction also failed to effect a sale of the Property.
31. Despite its creation and delivery of the January 22, 2010, Mortgagee's
Deed, DB, as Trustee, did not acquire title to the Property.
32. The March 22, 2010 Special Warranty Deed failed to effect a transfer of
fee simple title to the Property.
33. DB, as Trustee, broke the covenant of seisin on or about March 22, 2010
when it made the covenant of seisin and delivered the Special Warranty Deed to
Plaintiffs.
34. By failing to obtain a certificate of authority from the Secretary of State
pursuant to Ark. Code Ann. 4-27-1501, complying with the filing requirements of Ark.
..
Code Ann. 4-31-402, and otherwise failing become authorized to do business in this
state before availing itself of the procedures of the SF A, DB, as Trustee, and Trust 2006-
HE3 performed the acts that created the defects in Plaintiffs' title.
Appropriate Relief
35. Plaintiffs, who, as grantees, have an interest in the March 22,2010 Special
Warranty Deed, are entitled to a determination of the validity of that deed and a
declaration
a. that the Mortgagee's Deed is void;
b. that the Special Warranty Deed is void;
c. that the Mortons hold paramount title to the Property;
d. that DB, as grantor, breached its covenant of seisin;
e. that Plaintiffs have an immediate right of action against DB;
f. that Plaintiffs are entitled to damages, even if only nominal;
g. that Plaintiffs are entitled to equitable relief, including specific
performance of the covenant of seisin;
h. that Plaintiffs are entitled to supplemental relief herein; and
1. that Plaintiffs are entitled to their costs, including a reasonable
attorney's fee.
PLAINTIFF CLASS ALLEGATIONS
36. The Plaintiffs bring this state-wide class action on behalf of themselves
and all other persons similarly situated in relation to Deutsche Bank National Trust
Company (or any other person or entity) that is a "mortgagee" (as defined in Ark. Code
Ann. 18-50-101(7).
37. The proposed class is defined as follows:
All persons who, on or after October 17, 2006, purchased real property and are
grantees thereto in a general or special warranty deed from an entity that was not
authorized to do business in Arkansas before availing itself of the procedures of
Title 18, Chapter 50, of the Arkansas Code.
Excluded from the class are the following individuals and/or entities:
a. Defendants;
b. Individuals or entities, if any, who timely opt out of this proceeding using the
correct protocol for opting out;
c. Individuals or entities, if any, who have previously settled or compromised
claims(s) as identified herein for the class; and
d. Any currently sitting circuit judge and/or person within the third degree of
consanguinity to any circuit judge.
38. Plaintiffs will fairly and adequately protect the interests of the class, and
are adequate representatives of the class of persons defined herein. The plaintiffs are
interested in the outcome of this lawsuit and understand the importance of adequately
representing every member of the class described herein.
Numerosity
39. On information and belief, persons, firms, companies, associations,
fiduciaries, or partnerships ("entities" or "entity") have availed themselves of the
procedures under Chapter 50 of Title 18 when they were not authorized to do business in
Arkansas on more than two hundred and twenty occasions in Pulaski County alone.
40. As a result, Plaintiffs are so numerous that it is impracticable to bring
them all before the Court within a reasonable time, and a class action is therefore superior
to other methods for the fair and efficient adjudication of this controversy.
Commonality
41. There are common questions of law and fact affecting the members of the
class. Such common questions predominate over any questions affecting only individual
class members.
42. These questions include, but are not limited to:
a. what action is required for an entity to be "authorized to do business"
in this state under the SF A;
b. if an entity required by the SF A to be "authorized to do business" in
this state does not perform the actions required for it to be "authorized
to do business" in this state:
1. can that entity foreclose the interests of any others;
11. can that entity conduct a sale under the SF A;
111. can that entity convey good title;
iv. can that entity make and deliver a deed that conveys any right,
title or interest in real property; and
v. does such an entity that makes and delivers to a grantee a
general or special warranty deed breach the covenant of seisin.
43. Claims of the named Plaintiffs are typical of the claims of other members
of the class in that they all arise from an entity utilizing the SF A's procedures when the
entity was not authorized to do business in the state.
Adequacy of Representation
44. Plaintiffs will fairly and adequately protect the interests of the Class.
Plaintiffs' interests do not conflict with the interests of the Class members. Furthermore,

Plaintiffs have retained competent counsel experienced in class action litigation.
Plaintiffs' counsel will fairly and adequately protect and represent the interests of the
Class.
45. In addition, DB, as Trustee, has acted on grounds that apply generally to
the class, so that declaratory relief or corresponding final injunctive relief is appropriate
respecting the Class as a whole.
46. In addition, questions of law or fact common to the Class members
predominate over any questions affecting only individual members, and that a class
action is superior to other available methods for fairly and efficiently adjudicating the
controversy.
47. Jurisdiction and venue are proper in Pulaski County, Arkansas, for the
declaratory relief sought.
DEFENDANT CLASS ALLEGATIONS
48. Plaintiffs seek certification of a class of defendants who are similarly
situated to DB, as Trustee.
49. The proposed class is defined as follows:
All entities that availed themselves of the procedures under Chapter 50 of Title 18
ofthe Arkansas Code when they were not authorized to do business in the State of
Arkansas and thereafter executed and delivered a general or special warranty deed
to the subject real property after October 17, 2006.
50. On information and belief, DB, as Trustee, is will fairly and adequately
protect the interests of the class and is an adequate representative of the class of entities
defined herein. DB, as Trustee, is interested in the outcome of this lawsuit and, on
information and belief, it understands the importance of adequately representing every
member of the classes described herein.

Numerosity
51. On infonnation and belief, Mortgagees have availed themselves of the
procedures under Chapter 50 of Title 18 when it was not authorized to do business in this
state on more than two hundred and twenty occasions in Pulaski County alone.
52. As a result, the parties are so numerous that it is impracticable to bring all
before the Court within a reasonable time, and a class action is therefore superior to other
methods for the fair and efficient adjudication of this controversy.
Commonality
53. There are common questions of law and fact affecting the members of the
class. Such common questions predominate over any questions affecting only individual
class members.
54. These questions include, but are not limited to:
a. what action is required to be "authorized to do business" in the state
under the Statutory Foreclosure Act;
b. whether a Mortgagee not authorized to do business in this state may
avail itself of the procedures of the Statutory Foreclosure Act by using
an attorney-in-fact licensed in Arkansas to effect the transaction; and
c. whether the authorized-to-do-business requirement is superseded by a
conflicting provision in Arkansas' Wingo Act, Ark. Code Ann. 4-27-
1501.


Typicality
55. Defenses of the named defendant are typical of the defenses of other
members of the class in that they all arise from utilizing the Statutory Foreclosure Act's
procedures when an entity was not authorized to do business in the state.
Adequacy of Representation
56. On information and belief, DB, as Trustee, will fairly and adequately
protect the interests of the Defendant Class.
57. On information and belief, DB, as Trustee's interests do not conflict with
the interests of the Defendant Class members.
58. On information and belief, DB, as Trustee, will vigorously defend the
action.
59. In addition, DB, as Trustee, has acted on grounds that apply generally to
the class, so that final injunctive relief or corresponding declaratory relief is appropriate
respecting the Defendant Class as a whole.
60. In addition, questions of law or fact common to the Defendant Class
members predominate over any questions affecting only individual members, and that a
class action is superior to other available methods for fairly and efficiently adjudicating
the controversy.
Additional Considerations
61. All purported Defendant Class members utilized the SF A, which requires
that an entity "has filed for record with the recorder of the county in which the trust
property is situated a duly acknowledged notice of default and intention to sell .... "
Therefore, the recorder of any county in which a notice of default and intention to sell has
been filed can identify every Defendant Class member, and this Court can thereby ensure
that actual notice can be given to, and due process ensured for, every Defendant Class
member.
DECLARATORY JUDGMENT
62. The Arkansas Declaratory Judgments Act is remedial; its purpose is to
settle and to afford relief from uncertainty and insecurity with respect to rights, status,
and other legal relations; it is to be liberally construed and administered. Ark. Code Ann.
16-11-102.
63. Courts of record have the power to declare rights, status, and other legal
relations; the declaration may be affirmative or negative in form and effect and
declarations shall have the force and effect of a final judgment or decree. Ark. Code Ann.
16-111-103.
64. Any person interested under a deed, written contract, or other writings
constituting a contract or whose rights or other legal relations are affected by a statute or
contract may have determined any question of construction or validity arising under the
instrument, statute, or contract and obtain a declaration of rights or other legal relations
thereunder. Ark. Code Ann. 16-111-104.
RELIEF REQUESTED
65. Plaintiffs, on behalf of themselves and all Class members, request the
following relief:
a. Entry of an order certifying the Class and appointing Plaintiffs and
their counsel, Drake Mann, Christopher L. Travis, Sean F. Rommel,
and James C. Wyly, to represent the Class;
b. Entry of judgment determining that the warranty deeds (either general
or special) delivered to them are invalid and declaring as follows:
1. that another person (or entity) holds paramount title to the
subject property;
ii. that their grantors breached the covenant of seisin;
111. that Plaintiffs have an immediate right of action against their
grantors;
iv. that Plaintiffs are entitled to damages;
v. that Plaintiffs are entitled to equitable relief;
VI. that Plaintiffs are entitled to supplemental relief herein; and
Vll. that Plaintiffs are entitled to their costs, including a reasonable
attorney's fee;
c. Upon all declaratory relief Plaintiffs obtain, Plaintiffs petition for an
order against Defendants, and, on reasonable notice, against all other
similarly situated defendants, to show cause why further relief should
not be granted forthwith; and
THE REMAINDER OF THIS PAGE HAS BEEN LEFT BLANK.
d. That Plaintiffs, on behalf of themselves and all Class members, be
granted any and all other relief to which they may be entitled.
By:
Respectfully submitted,
GILL ELROD RAGON OWEN & SHERMAN, P.A.
425 West Capitol Avenue, Suite 3801
Li Ie Rock, Arkansas 72201
(5 1) 376-3800
~ ~ - - - - - - - - - - - - - - - - - - - - - - - -
Drake Mann, Arkansas Bar No. 87108
Christopher L. Travis, Arkansas Bar No. 97093
and
Sean' F. Rommel
Arkansas BarNo. 94158
srommel@wylyrommel.com
James C. Wyly
Arkansas BarNo. 90158
jwyly@wylyrommel.com
WYLY-ROMMEL, PLLC
2311 Moores Lane
Texarkana, Texas 75503
(903) 334-8646 (Telephone)
(903) 334-8645 (Fax)

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DEFINITIONS
MORTGAGE
Words used in multiple sections of this document are defined below and other words are defmed in
Sections 3, 11, 13, 18,20 and 21, Certain rules regarding the nsageof words used in this document are
also provided in Section 16.
(A) "SEcurity Instrument" means this document, which is dated Janua.ry 23 r 2006
together with all Riden; to this document.
(B) "Borrower" is 'rbomaa J Morton cd Wannetta Y. Morton I Hl,l$band and Wife
Borrower is the mortgagor under this Security Instrument.
(C) "Lender" is New Century Mortgaqe Corporation
Lender is a Corporation
organized and existing under the laws of California
1005990154
ARK!>.NSAs..Singie Family-fannie MaelFreddle Mac UNIFORM INSTRUMENT
Form 3004 1/01
(01011) -r:m.. __ _
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YMpMORTGA.GE FORMS \7291
EXHIBIT
I A
..
. '
Lender's address is 18400 Von Kagnan, Suite 1000, Irvine', CA 92612
Lender is the mortgagee under this Security Instrument.
(D) "Note" means the promissory note signed by Borrower and dated Yllnuary 23, 2006
The Note states that Borrower owes Lender nro B'ONDRED FII"l'EEN THOUSAND AND 00/100
Dollars
(U,S. $ 215,000.00 ) plus interest. Borrower bas promised to pay this debt in regular Periodic
and to pay the debt in full not later than 02/01/2036
(E) I'Property" means the propeny that is described below under the heading "Transfer of Rights in the
Property. "
(F) "LoaD" means the debt evidenced by the Note. plus interest, any prepayment charges and late charges
due under the Note, and all sums due under this Security Instrument, plus interest.
(G) tlRiders" means all Riders to this Security Instnl1nent that are executed by Borrower. The following
Riders are to be executed by Borrower [check box as applicable1:
o Adjustable Rate Rider 0 Condominium Rider 0 Second Home Rider
'8 Balloon Rider 8 Planned Unit Development Rider 0 1-4 Family Rider
VA Rider Biweekly Payment Rider 0 Other(s) [specify]
(B) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations,
ordinances and admiriistrative rules and orders (that have the effect of law) as well as all applicable fmal,
non-appealable judicial opinions.
(I) ''Commnnlty Anociatir.D Dues, Fees, and ABsessments
tt
means all dues, fees, assessments and other
charges that are imposed on Borrower or the Property by a condominium association, homeowners
association or similar organization.
(J) "DectroJllc Funds Traasfer" means any transfer of funds, other than a transaction originated by
check. draft, or similar paper.i.nstrumt:nt, which is iDitiated through an electronic terminal, telephonic
instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit
or credit an account. Such term includes. bur is not liInited to, point-of-sale ttansfers, automated teller
machine transactions, transfers initiated by telephone. wire transfers, and automated clearinghouse
transfers,
(K) ''Escrow Items" means those items that are described in Section 3.
(L)tlMkeellaneous Proceeds" means any compensation. settlement. award of damages, or proceeds paid
by any third party (otber than insurance proceeds paid under the coverages described in Section 5) for: (i)
damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the
Property; (iii) conveyance in lieu of condemnation; Or (iv) misrepresentations of, or omissions as to, the
value and/or condition of the Property.
(M) "Mortgage msurance" means insurance protectill8 Lender against the nonpayment of, or default on,
the Loan.
(N) ItPbriodlc Payment It means the regularly scbeduled amount due for (i) principal and interest under the
Note, plus (ii) any amounts under Section 3 of this Security Instrument.
(0) ''RESPAti means the Real Estate Settlement Procedures Act (12 U.S ,C. Section 2601 e seq.) and its
implementing regulation, Regulation X (24 C.P.R. Part 3500), as they might be amended from time to
time, or any additional or successor legislation or regulation that governs the same subject matter, As used
in thil> Security Instrument, "RESP A W refers to all requirements and restrictions tllat are imposed in regard
to a "federally related mortgage loan
n
even if the Loan does not qualify as a "federally related mortgage
loan" under RESPA.
1005990154
CI\ ..fI(AR} (0108) Fonn 3004 11111
.J
(P) in Interest of Borrower" means any party that has taken title to the Property. whether or
not that party bas assumed Borrower's obligations under the Note andlor this Security Instrument.
TRANSFER OF RIGHTS IN TIlE PROPERTY
This Security Instrument secures to Lender: (i) the repayment of the Loan. and all renewals, extensions and
modifications of the Note; and (U) the performance of Borrower's covenants and
agreements under thi& Secm:ity InstruJDent and the Note. For tbls pwpose. Borrower irrevocably
mortgages, grants and conveys to Lender the following described property located in the
County of Pulaski
rrype of Recording 1urisdiction] [Name of Recording 1urisdiction]
LO:r 26, B:t.OC!C 17 I OVERBROOK ADDX:L'J:Olq !L'O tBB ern OJ!' NOR:L'B LJ:'l'nE R.OCK,
POLASlU COON'L'Y, ARl\ANSAS .
Parcel ID Number: 335"017-00-406-00
52 Dove C:;eClk c.i.r
North Littl. Rock
(ffProperty Address"):
which currently has the address of
[Street]
(City1, Arkansas 72116 [Zip Code1
TOGETHER WITH all the improvements DOW or hereafter erected on the property, and all
easemeDts, appurtenances, and fixtures now or hereafter a part of the property. All replacements and
additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this
Security Instrument as the "Property. "
BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has
the right to mortgage, grant and convey !he Property and that the Property is unencumbered. except for
encwnbrances of record. Borrower warrants and will defend generally the title to the Property against all
claims and demands, subject to any eD.CllIJlbrances of record.
TIllS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform
covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real
property.
UNIFORM COVENANTS. Borrower and lender covenant and agree as follows;
1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Cbflrges.
Bonower shall pay when due the principal of, and interest on. the debt evidenced by the Note and any
prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items
pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S.
currency. However, if any check or other instrument received by Lender as payment under the Note or this
.v 10059.90154

_",(AR) [0108) PlIOehf 15 FOJm 3004 1101
0000059"'l
Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments
due under the Note and this Security Instrument be made in one or more of the following fonns, as
selected by Lender: (a) cash; (b) money order; (c) certified check, bank check. treasurer's check or
cashier's check. provided any such check is drawn upon an institution whose deposits are insured by a
federal agency. instnunentality, or entity: or (d) Electronic Funds Transfer.
Payments are deemed received by Lender when received at the location designated in the Note or at
sucb other location as may be designated by Lender in accordance with the notice provisions in Section 15.
Lender may return any payment or partial payment if the payment or partial payments are insufficient to
bring the Loan current. Lender may accept any payment or partial payment il1Sllfficient to bring the Loan
current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial
payments in the future. but Lender is not obligated to apply such payments at the time such payments are
accepted. If each Periodic Payment Is applied as of its scheduled due date, then Lender need not pay
interest on unapplied funds. Lender may bold such unapplied funds until Borrower makes payment to bring
the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply
such funds or return them to Borrower. Ifnol applied earlier, such funds will be applied to the outstanding
prinCipal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower
might have now or in the future against Lender shall relieve Borrower from mmng payments due under
the Note and this Security Instrument or' performing tbe covenants and agreements secured by this Security
Instrument.
2. Application or Payments or Proceeds. Except as otherwise described in this Section 2, all
payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest
due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments
shall be applied to each Periodic Payment in the order in which it became due. A3ry reznaining amounts
shall be applied first to late charges, second to any other amounts due under this SecW'ity Instrument, and
then to reduce the principal balance of the Note.
If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a
sufftcient amount to pay any late charge due. the payment may be applied to the delinquent payment and
the late charge. Ifmore than one Periodic Payment is outstanding, Lender may apply any payment received
from Borrower to the repayment of the Periodic Payments if. and to the extent that, each payment can be
paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or
more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall
be applied first to any prepayment charges and then as described in the Note.
AIly application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under
the Note shall not extend or postpone the due date. or change the amount. of the Periodic Payments.
3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due
under the Note, until the Note is paid in full, a swn (the "Funds") to provide for payment of amounts due
for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a
lien or encumbrance OD the Property; (b) leasebold payments or ground rents on Property. if any; (c)
premiums for any and all insurance required. by Lender under Section 5; and (d) Mortgage Insurance
premiUDlli, if any, or any sums payable by Bon-ower to Lender in lieu of the payment of Mortgage
Insurance premiums in -accordance wi.th the proviSions of Section 10. These items are called "Escrow
Items, At origination or at any time during the term of the Loan. Lender may require that Community
Association Dues, Fees. and Assessments, if any. be escrowed by :Borrower, and such dues. fees and
assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to
be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives
Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's
obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be
in writing, In the event of such waiver. Borrower shall pay directly, when and where payable, the amounts
Pegu of 16

X'nltJala:
1005990154
101D8) Form 3004 1/01
due for any Escrow Items for which payment of Funds bas been waived by Lender and, if Lender requires,
shall furnish to Lender receipts eVidencing sucb payment within such time period as Lender may require.
Borrower's obligation to make such payzm:nts and to provide receipts shall for all purposes be deemed to
be a covenant and agreement contained in this Security Instnunent, as the phrase "covenant and agreement"
is used in Section 9. If Borrower is obligated to pay Escrow Items directly. pursuant to 8 waiver, and
Borrower faUs to pay the amount due for an Escrow Item, Lender may exercise its dghts under Section 9
and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such
amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in
accordance with Section 15 and. upon such revocation, Borrower shall pay to Lender all Funds. and in
such amounts. that are then required under this Secti()n 3.
Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply
the Funds at the time specified under RESPA, and (0) not to exceed the maximum arnoWlt a lender can
require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and
reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable
Law.
The Funds shall be held in an institution whose deposits are insured by a federal agency,
instrumentality, or entity (including Lender, if Lender is an institution whose deposits are SQ insUred) or in
any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time
specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annUAlly
analyzing the escrow account, or verifying the Escrow Items. unless Lender pays Borrower interest on the
FWlcls and Applicable Law pennits Lender to make such a charge. Unless an agreement is made in writing
or Applicable Law requires interest to be paid on the Funds, Lender &hall not be required to pay Borrower
any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest
shall be paid on the Funds. Lender shall give to Borrower, without charge. an annual accOUllting of the
Funds as required by RESP A.
If there is a surplus of Funds beld in escrow. as defined WIder RESPA, Lender shall account to
Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow,
as defined under RESPA, Lender sball notify Borrower as required by RESPA, and Borrower shall pay to
Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12
monthly payments. If there is a deficiency of Funds hcld in escrow, as defined under RESPA, Lender shall
notify Borrower as required by RESP A. and Borrower shall pay to Lender the amount necessary to make
up the deflCiency in accordance with RESPA, but in no more than 12 monthly payments.
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund
to Borrower any Funds held by Lender.
4. Cbarges; lJens.. Borrower shall pay a1J taxes, assessments, charges. fines, and impositions
attributable to the Property which can attain priority over this Security Instrument, leasehold payments or
ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To
the extent that these items are Escrow Items, Borrower sbal1 pay them. in the manner provided in Section 3.
Borrower shall promptly discharge any lien which has priority over thls Security Instrument unless
Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable
to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith
by. or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to
prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings
are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating
tbe lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien
which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the
lOOSS90lS4
~ - 6 ( A R } 10100) P.!ge 5 or 16 Farm 3014 1/01
-- .... ---
" ..
tien. Within 10 days of the date on which that notice is given, Borrower sball satisfy the lien or take one or
more of the actioJ18 set forth above in this Section 4.
Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or
reporting service used by Lender in connection with this Loan.
5. Property lnsunlllce. Borrower sball keep the improvements now existing or hereafter erected on
the Property insured against 108s by ftre, hazards included within the term "extended coverage," and any
otl!er hazards including, but not limited 10, earthquakes and floods, for which Lender requires insurance.
This insurance shall be maintained in the amounts (including deductible levels) and for the periods that
Lender requires. 'What Lender requires pursuant to the preceding sentences can change during the term of
the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's
right to disapprove Borrower's choice. which right shall not be exercised unreasonably. Lender may
require Borrower to pay. In connection with this Loan, either: (a) a one-time charge for flood zone
determination, certification and tracking services; or (b) a one-time charge for flood zone determination
and certification services and subsequent charges each time remappirigs or similar changes occur Which.
reasonably might affect such determination or certification. Borrower shall also be responsible for the
payment of any fees imposed by the Federal Emergency Management Agency in connection with the
review of any flood zone determination resulting from an objection by Borrower.
If Borrower fails to maintain any of the coverages described above. Lender may obtain insurance
coverage, at Lender's option lind Borrower's expense. Lender is under no obligation to purchase any
particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might
not protect Borrower, Borrower's equity in the Property, or the contents of the Property. against any risk,
hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower
acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of
insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall
become additional debt of Borrower secured by this Security Instrument. These amounts &hall bear interest
at the Note rate from the date of disbursement and Wll be payable, with BUch interest, upon notice from
Lender to Borrower requesting payment.
All insurance policies required by Lender and renewals of such policies sba.ll be subject to Lender's
right to disapprove such policies, shall include a standard mortgage clause. and shall name Lender as
mortgagee andror as an additional loss payee. Lender shall have the right to hold the policies and renewal
certificates. If Lender reqnires, Borrower shall promptly give to Lender all receipts of paid premiums and
renewal notices. If Borrower obtains any form of insurance coverage. not otherwise required by Lender,
for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and
shall name Lender as mortgagee andlor as an additional loss payee.
In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender
may make proof of 1088 if not made promptly by Borrower. Unless Lender and Borrower otherwise agree
in writing. any insurance proceeds, whether or not the underlying insurance was required by Lender, shall
be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and
Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to
hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the
work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken
promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series
of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law
requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any
interest or earnings on 8Uc.b proceeds. Fees for public adjusters, or other third parties, retained by
Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If
the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance
proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
PI;j&S o! 15


1005990154
_-6( .... R) fOl09)
Form aQ04 1101
t
...
the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in
Section 2.
If Borrower abandons the Property. Lender may fUe. DeBotiate and settle any available insurance
claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the
lnsurance carrier bas offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day
period will begin when the notice is given. In either event. or if Lender acquires the Property under
Section 22 or otherwise, Borrower hereby assigns to Lender (a) BolTower's rights to any insurance
proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument. and
(b) any other of Borrower's rights (other than fue rigbt to any refund of unearned premiwns paid' by
BOlTower) under all insurance policies covering the Property, insofar as such rights are applicable to the
coverage of the Property. Lender may use the insurance proceeds either to repair or restore tbe Property or
to pay amounts unpaid under the Note or this Security Instrument, whether or not then due . .
6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal
residence within 60 days after the execution of this Security Instrument and shall continue to occupy the
Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender
otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless ex.tenuating
circumstances exist which are beyond Borrower' 8 control.
7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not
destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the
Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in
order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is
determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall
promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or
condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower
shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such
purposes. Lender may disburse proceeds fur the repairs and restoration in a single payment or in a series of
progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient
to repair or restore the Property. Borrower is not relieved of Borrower's obligation for the completion of
such repair or restoration.
Lender or its agent may make reasonable entries upon and inspections of the Property. If it bas
reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender sball give
Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause.
8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application
process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's
knowledge or consent gave materially false, misleading, or inaccurate infonnation or statements to Lender
(or failed to provide Lender with material information) in connection with the Loan. Material
representations include, but are not limited to, representations concerning Borrower's occupancy of the
Property as Borrower's principal reSidence.
9. Protection of Lender's Interest in the Property aod Rights Under this Security Instrument. If
(a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there
is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under
this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for
enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or
regulations), Or (c) Borrower has abandoned the Property. then Lender may do and pay for whatever is
reasonable or appropriate to protect Lender's interest in the Property and rights under this Security
Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing
the Property. Lender's actions can include, but are not limited to: (a) paying any suros secured by a lien
which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable
1005990154
cmI\ .a(AR) 10 108 1
P"I)e 7 01 16 Form 30c)4 1,o1

attorneys' fees to protect its interest in the Property andlor rights under this Security Instrument. including
its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to,
entering the Property to make repairs, change locks, replace or board up doors and windows, drain water
frOtn pipes, eliminate building or other code violations or dangerous conditions, and have utilities tumed
on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not
under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all
actions authorized tmder this Section 9.
Any amounts disbursed by Lender Wlder tl1ii SectiOD 9 shall become additional debt of Borrower
secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of
disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting
payment. .
If this Security Instrument is on a Jeasebold, Borrower &hall comply with all the provisions of the
lease. If BOITower acquires fee title to the Property, the leasehold and the fee title shall not merge unless
Lender agrees to the merger in writing.
10. Mortgage lnwrance. If Lender required Mortgage Insurance as a condition of making the Loan.
BoITower shalJ pay the premiums required to maintain the Mongage Insurance in effect. If, for any reason.
the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that
previously provided such insurance and Borrower was required to make separately designated payments
toward the premiums for Mongage Insurance. Borrower shall pay the premiums required to obtain
coverage substantially equivalent to the Mortgage Insurance previously in effect. at a cost substantially
equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate
mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not
available, BoITower shall continue to pay to Lender the amount of the separately designated payments that
were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these
payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be
non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be
required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss
reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires)
provided by an insurer selected by Lender again becomes available, ls obtained, and Lender requires
separately designated payments toward Che premiums for Mortgage Insurance. If Lender required Mortgage
Insurance as a condition of making the Loan and Borrower was required to make separately designated
payments toward the premiums for Mortgage Insurance. Borrower shall pay the premiums required to
maintain Mortgage Imura.nce in effect, or to provide a non-refundable loss reserve. until Lender's
requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and
Lender providing for such termination or until termination is required by Applicable Law. Nothing in this
Section 10 affects Borrower'8 obligation to pay interest at the rate provided in the Note.
Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it
may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage
Insurance.
Mortgage insurers evaluate their total risk on all such insurance in force from time to ti.me. and may
enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements
are on tenns and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to
these agreements. 'These agreements may require me mortgage insureJ' to make payments using any source
of funds that Che mortgage insurer may have available (which may include funds obtained from Mortgage
Insurance premiums).
As a result of these agreements, Lender, any purchaser of the Note. another insurer, any reinsurer.
any other entity, or any affIliate of any of the foregoing, may receive (directly or indirectly) amounts that
derive from (or migbt be characterized as) a portion of Borrower's payments for Mortgage Insnrance. in
exchange for sharing or modifying the mortgage insurer' s risk, or reducing losses. If such agreement
provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the
premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further:
(a) Ally agreements will not affect tbe amounts that Borrower has agreed to pay for
Mortgage Insurance, or any other terms of tbe Loan. Such a,reements will Dot increase the amount
Borrower will owe for Mortgage Insurance, and they will Dot entitle Borrower to any refund.
(0108)
-<.. Inltiall:
lOOS990154
Fonn 30t>4 if 01
"
+
(b) Any such agreements wiD Dot affect the rights Borrower has if any y wlth respect to the
Mortgage Insurance under the Homeowners Protection Act of 1998 or any otberlaw. These rights
may include the right to receive certaJn disclosures, to request aDd obtain cancellation of the
Mortgage Insurance, to have the Mortgage Insurance terminated automatically. and/or to receive a
refund of any Mortgage Insurance premiums tbat were uneamed at tbe time of such cancellation or
termiIultioD.
11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
assigned to and shall be paid to Lender.
If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of
the Propeny, if the restoration or repair is ecoriomically feasible and Lender's security is not lessened.
During such repair and restoration period, Lender sbaII have the right to hold such Miscellaneous Proceeds
until Lender bas had an opportunity to inspect such Property to ensure the work has been completed to
Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the
repairs and restoration in a single disbursement or in a series of progress payments as the work is
completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such
Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on sucb
Miscellaneous ,Proceeds. If the restoration or repair is not economically feasible or Lender's security would
be lessened, the Miscellaneous Proceeds shaH be appJied to the sums securecl by this Security Instrument,
whether or not then due, with the excess, if any, paid to Borrower. Such. Miscellaneous Proceeds shall be
applied in the order provided for in Section 2.
In the event of a total taking, destruction, or loss in value of the Property. the Miscellaneous
Proceeds shall be applied to the sums secW'ed by this Security Instrument, whether or DOt then due, with
the excess, if any. paid to Borrower.
In the event of a partial taking. destruction, or loss in value of the Property in which the fair market
value of the Property immediately before the partial taking, <ie8truction. or loss in value is equal to or
greater than the amount of the sums secured by this Security Instrument immediately before the partial
taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing. the sums
secured by this Security Instrwnent shall be reduced by the amount of the Miscellaneous Proceeds
multiplied by the following fraction: (a) the total amount of the swns secured immediately before the
partial taking, destruction, or loss in value divided by (b) the fair market value of the Property
immediately befOl'e the partial taking, destruction. or loss in value. Any balance shall be paid to Borrower,
In the event of a partial taking. destruction. or loss in value of the Property in which the fair market
value of the Property iDlmediately before the partial taking. destruction, or Joss in value is less than the
amount of the gums secured immediately before the partial taking, destrucdon, or loss in value, unless
Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums
secured by this Security Instrument whether or not the sums are then due.
If the Property is abandoned by Borrower, or if. after notice by Lender to Borrower that the
Opposing party (as defined in the nex.t sentence) offers to make an award to settle a claim for damages,
Borrower fails to r e s p o ~ to Lender within 30 days after the date the notice is given, Lender is authorized
to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the
sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party
that owes Borrower Miscellaneous Proceeds or the party against wbom Borrower has a right of action in
regard to Miscellaneous Proceeds.
Borrower shall be in default if any action or proceeding. whether civil or criminal, is begun that, in
Lender's judgment. could result in forfeiture of the Property or other material impainnentof Lender's
interest in the Property or rights under this Security Instromcnt. Borrower can cure such a default and, if
acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be
dismissed with a ruling that. in Lender's judgment, preCludes forfeiture of the Property or other material
impairment of Lender's interest in the Property or right!! under lhis Security Instrument. The proceeds of
any award or claim. for damages that are attributable to the impairment of Lender's interest in the Property
are hereby assigned and shall be paid to Lender.
All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be
applied in the order provided for in Section 2.
lOOS990154
_-6(AR) (01 Oil)
PI!g8 gar 15
Fonn 30M 1101
12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for
payment or modification of amortization of the sums secured by this Security Instrument granted by Lender
to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower
or any Successors in Interest of :Sorrower. Lender shall not be required to commence proceedings against
any Successor in Interest of Borrower Or to refuse to extend time for payment or otherwise modify
amortization of the sums secured by this Security Instrument by reason of any demand made by the original
Borrower or any Successors in Interest of Borrower. All)' forbearance by Lender in exercising any right or
remedy including, without limitation, Lender's acceptance of payments from third persons, entities or
Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or
preclude the exercise of any right or remedy.
13. Joint and Several Liability; Co-signers; Suecessors aod Assigns Bound. Borrower covenants
and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who
co-si&ns thls Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this
SecurIty Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the
terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security
Instrument: and (c) agrees that Lender and any other Borrower can agree to extend. modify, forbear or
make any accommodations with regard to the terms of this Security lnstrument or the Note without the
co-signer's consent.
Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes
Borrower's obligations under this Security InstrUment in writing. and is approved by Lender, shall obtain
all of Borrower's rights and benefits under this Security Instrument. Borrower shall no! be released from
Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in
writing. The covenants and agreements of this Security lnstrument shall bind (except as provided In
Section 20) and benefit the successors and assigns of Lender .
14. Loan Charges. Lender may charge Borrower fees for services perfonned in connection with
B()rrower's default, for the purpose of protecting Lender'S interest in the Property and rights under this
Security Instrument, including. but not limited to, attorneys' fees, property inspection and valuation fees.
In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific
fee to BOl'Tower shall not be construed as a prohibition on the charging of such fee. Lender may not charge
fees that are expressly J?1Ohibited by this Security Instrument or by Applicable Law.
Jf the Loan is subject to a law which sets maxinmm loan charges, and that law is finally interpreted so
that the interest or other loan charges collected or to be collected in connection with the Loan exceed the
pennitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the
charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded pennitted
limits will be refunded to Borrower, Lender may choose to make this refimd by reducing the principal
owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the
reduction will be treated as a partial prepayment without any prepayment charge (whether or not a
prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by
direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out
of such overcharge.
15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument
must be in writing. Arry notice to Borrower in connection with this Security Instrument shall be deemed to
have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's
notice address if sent by other means. Notice to anyone Borrower shall constitute notice to all Borrowers
unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address
unless Borrower has des.ignated a substitute notice address by notice to Lenc1er. Borrower shall promptly
notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's
change of address, then Borrower shall only report a change of address through that specified procedure.
There may be only one designated notice address under this Se<:.urity Instrument at anyone time. Any
notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address
stated herein unless Lender bas designared another address by notice to Borrower. Any notice in
connection with this Security Instrument sball not be deemed to have been given to Lender until actually
received by Lender. If any notice required by this Security Instrument is also required under Applicable
Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security
Instrument.
l0059901.54
eJ-6(AR) 10108) Pege 10 cf 16 FOm1 3 ~ 0 4 1/01
0000050':::'
16. Governing Law; Severability; Rules Dr Construetlon, This Security Instrument shall be
governed by federal law and the law of the jurisdiction in which the Property is located. AIl rights and
obligations contained in this Security Instrument are subject to any requirements and limitations of
Applicable Law. Applicable Law might explicitly or implicitly aUow the parties to agree by contract or it
might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In
the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable
Law, such conflict shall not affect other provisions of this Security lnstrument or the Note which can be
given effect without the conflicting provision.
As used in this Security Instnlment: (a) words of the masculine gender shall mean and include
corresponding words or words of the feminine gender; (b) words in the singular shall mean and
include the plural and vice versa; and (c) the word "may II gives sole discretion without any obligation to
take any action. .
17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument.
18. Transfer of the Property or a Benefielnl Interest in Borrower. As used in this Section 18.
"Interest in the Property meam any legal or beneficial interest in the Property, including, but not llmited
to. those beneficial interests transferred in a bond for deed. contract for deed, installment sales contract or
escrow agreement. the intent of which is the transfer of title by Borrow.er at a future date to a purchaser.
If all or any part of the Property or any IntereJ;t in the Property is sold or transferred (or if Borrower
is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior
written consent, Lender may require immediate payment in full of all sums secured by this Security
Instmment. However, this option shall not be exercised by Lender if such exercise is prohibited by
Applicable Law.
If Lender exercises this option. Lender shall give Borrower notice of acceleration. The notice shall
provide a period of not less than 30 days from the date the notice is given in accordance with Section 15
within which Borrower DlIlst pay aU sums secured by this Security Instrument. If Borrower fails to pay
these 8UmB prior to the expiration of this period. Lender may invoke any remedies permitted by this
Instrument without further notice or demand on Borrower.
19. Borrower's Ri&:ht to ReiJJstate After Acceleration. If BOlTOwer meets certain conditions.
Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time
prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in
this Security Instrument; (b) such other period as Applicable Law might specify for the termination of
Borrower's right to reinstate; or (c) entty of a judgment enforcing this Security Instrument. Those
conditions are that Borrower: (a) pays Lender all S1lIDS which then would be due under this Security
Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or
. agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including. but not limited
to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the
putpOse of protecting Lender's interest in the Property and rights under this Security Instrument; and Cd)
takes such action as Lender may reasonably require to assure that Lender's interest in the Property and
rights under this Security Instrument. and Borrower's obligation to pay the sums secured by this Security
Instrument. shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and
expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c)
certified check, bank check. treasurer's check or cashier's check, provided any such cbeck is drawn upon
an institution wbose deposits are insured by a federal agency. instrumentality or entity; or (d) Electronic
Funds Transfer. Upon. reinstatement by BoITOwer. this Security Instrument and obligations secured hereby
shall remain fully effective as if no acceleration had occurred. However. this right to reinstate shall not
apply ill the case of acceleration under Section 18,
20. Sale &f Note; Change of LOIn Senicerj Notice of Grievallce. The Note or a partial interest in
the Note (together with this Security Instrument) can be sold one or more times without prior notice to
Borrower. A sale might result .in a change in the entity (known as the "Loan that collects
Periodic Payments due under the Note and this Security Instrument and perfonns other mortgage loan
servicing obligations under the Note. this Security Instrument. and Applicable Law, There also might be
one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan
Servicer. Borrower will be given written notice of the change which will state the name and address of the
neW Loan Servicer. the address to whicb payments should be made and any other information RESPA
10059901.54
PIge" at 15 FOITl1 3004 1101
requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is
serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations
to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not
assumed by the Note purchaser unless otherwise provided by the Note purchaser.
Neither Borrower nor Lender may commence. join. or be joined to any judicial action (as either an
individual litigant or the member of a class) that arises from the other party' s actions pursuant to this
Security Instrttment or that alleges that the other party has breached any provision of, or any duty owed by
reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such
notice given in compliance with the requirements of Section 15) of sueb alleged breacb and afforded the
other party hereto a reasonable period after the giving of suclI notice to take corrective action. If
Applicable Law provides a time period which must elapse before certain action can be taken, that time
period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and
opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to
Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective
action provisions of this Section 20.
21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those
substances defIned as toxic or hazardous substances. pollutants, or wastes by Environmental Law and the
following substances: gasoline. kerosene. other flammable or toxic petroleum products. toxic pesticides
and herbicides. volatile solvents. materials containing asbestos or formaldehyde, and radioactive materials;
(b) "Environmental Law means federal laws and laws of the jurisdiction where !be Property is located that
relate to health. safety or environmental protection; (c) "Environmental Cleanup" includes any response
action. remedial action, or removal action. lI.'I defmed in Environmental Law; and (d) an ''Environmental
Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental
Cleanup.
Borrower shan not cause or permit the presence, use, disposal, storage, or release of any Hazardous
Substances, or threaten to releaSe any Hazardous Substances. on or in the Property. Borrower shall not do,
nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental
Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a
HazardOlIS Substance, creares a condition that adversely affects the value of rbe Property. The preceding
two sentences shall not apply to the presence, use. or storage on the Property of small quantities of
Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to
mainterumce of the Property (including. but not limited to, hazardous substances in consumer products).
Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit
or other action by any governmental or regulatory agency or private party involving the Property and any
Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any
Environmental Condition, including but not limited to, any spilling, leaking, discharge. release or threat of
release of any Hazardous SUbstance. and (c) any condition caused by the presence, use or release of a
Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified
by any governmental or regulatory authority, or any private party. that any removal or other remediation
of any Hazardous Substance affecting the Property is nece&saIy, Borrower shall promptly take all necessary
remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on
Lender for an Environmental Cleanup.
l.OOS990154
_..&(A.R) 10100) Pege 12. Dr 15
Fonn 3004 1 '01
NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows:
22. Acceleration; Remedies. Lender shaD give notice to Borrower prior to acceleration following
Borrower's breach of aay covenant or agreement in this Security Instrument (but not prior to
acceleration under Section 18 unless Applicable Law provides otherwise). The notice shan specify: (8)
the default; (b) the aetion requlred to cure tne default; (c) a date, not le&s than 30 days from the date
the notice is given to Borrower, by which the default must be cUred; and (d) that failure to cure tbe
on or before the specified In the ntltice may result in acceleration of tbe sums secured by
tbis Security Instrument and sale of the Property. Tbe notice shall further inform Borrower of tbe
right to reinstate after acceleration And the rigllt to bring _ Cl'turt action to assert the Don-existence of'
a default or any other defense of Borrewer to acceleration and sale. H the default is not cured on or
before the date specified in the notice, Lender at its option may require iJt1lllediate payment in fuJI of
all sums secured by tbis Security Instrument witbout fnrther demand and may invoke any other
remedies permitted by Apillicable Law. Lender shall be entitled to collect all expenses Incurred in
pnrsuing the remedies provided In tbis Section 22, including, but not limited to, reasonable attorneys'
fees and costs of title evidence.
It is understood and agreed to by Borrower that this Instrument is subject to tbe
foreclosure procedures of the Arkansas Statutory Foreclosure Law, Act 53 of 1987, as amended from
time to time (the n Act"), for Bol'tower's breach of any covenant or agreement in this Security
Instrument. In furtherance Jlnd not in limitation of the provisions of Section 12, any forbearance by
Lender in exercising any right or remedy UDder tile Act shall nf)t be a waiver of or preclude
acceleration and the exercise of Rily rigbt or remedy under the Act, or at the option of Lender, IJse of
judicial foreclosure proooedings.
23. Release. Upon payment in full of all sums secured by this Security Instrument, Lender shall
release this Security Instrument. Borrower shall pay any recordation costs. Lender may cbarge Borrower a
fee for releasing this Security Instrument. but onIy if the fee is paid to a third party for services rendered
and the charging of the fee is pennitted under Applicable Law.
24. Waivers. Borrower waives all rights ofbomestead exemption in, and statutory redemption of, the
Property and aU right of appraisement of the Property and relinquisbes aU rights of curtesy and dower in
the Property.
1'()05990154
_-6{AR) (0108) 0' 15 FoITI'I 3DD4 1/&1

BY SIGNING BELOW. Borrower accepUi and agrees to the terms and covenants contained in this
Security Instnnnentand in any Rider executed by Borrower and recorded with it.
Witnesses:
(Seal)
-llorrower
--t WM::Nfu.
Waru'l.tta y
(Seal)
Borrower
(Seal)
_____ ______ (Seal)
-Borrower -Bnrrowcr
(Seal)

BolTOwer Borrower
(Seal)
_____________________
-Borrower -Borrower
1005990154
O-O(AR) (OI01l ) Pilla 14 or 16 Fonn 301)4 1101

", .

STATE OF ARKANSAS,
County ss: ..pULPS: (
known to me (or satisfactorily proven) person(s)'whose to the witbfu
instrument and acknowledged that he/she die'same for the purposes therein contained.
In witness whereof I hereunto set my hand and official seal.
LienHolder:New Century Mortqaqe
Corpor:atiol'l.
Address:1123S SJg 6th St, ste 200
Bellevue I VA 98004
Telephone Number:
Contact
for release of lien.

U29?64S13-01HE15
I'IORiGAGE 6. cop", .' (:.,1)1' 'i.
LoAN.
US Recordl"gs
-----
... _--_.- --.- - - -
1005990154
FClml 3004 1/01

2010004203 Received: 1/22/2010 1:41:18 PM Recorded: 01/22/2010 01:55:16 PM
Filed & Recorded in Official Records of PAT O'BRIEN, PULASKI COUNTY
CIRCUIT/COUNTY CLERK Fees $45.00
This instrumOIlt Prepared By:
Robert M. WI/Ion. Jr.
wrUON" ASSOClA rES, P.L.LC
1521 Metrill Drive, Suite 0-220
Little Rock. Arkwas 72211
(S()I) 2199388
RECORDING LEGEND
PLEASE RECORD IN mE
APPROPRIATB REAL ESTATE RECORDS
GRANTQR(s)
Thomas J. Morton and Wannetta Y. Morton
GRANIEECu
Deutsche Bank Natlona. Trust Company, 81 Trustee
for Morgan Stanel), ABS Capital I Inc. Trust ZOI)6..
HEl
MORTGAGEE'S DEED
WHEREAS, on January 23,2006, Thomas J. Morton and Wannetta Y. Morton executed and delivered to
New Centln'y Mortgage Corporation a mortgage, recorded February 17, 2006, as Instrument No. 2006012916 in
the real estate records of Pulaski County. Arkansas. whereby, for the purpose of securing the payment of certain
indebtedness set out in said mortgage, they did grant, sell, and convey to the said mortgagee the following-
described property, lying, and being in the County ofPulasld, State of Arkansas:
Lot 26, Block 17, Overbrook Addition to the City of North Little Rock, Pulaski County, Arkansas.
Commonly known as: 52 Dove Creek Circle, North Little Rock, Arkansas 72116-6402
WHEREAS, default has been made in the payment of said indebtedness and Deutsche Bank
National Trust Company. as Trustee for Morgan Stanely ABS Capital I Inc. Trust 2006-HE3, as holder of said
indebtedness, has since said default elected to sell said property in accordance with the provisions of Ark. Code
Ann. 18-50-101, et seq., as amended (the "Act") for the purpose of paying said indebtedness;
AND, WHEREAS, Wilson & Associates, P.L.L.C. was appointed by Deutsche Bank National Trust
Company, as Trustee for Morgan Stanely ABS Capital I Inc. Trust 2006-HE3, pursuant to Act 983 of 1999 as its
attorney-in-fact to sell said property pursuant to the Act;
AND, WHEREAS, notice of the time, place, and terms of such sale, as prescribed by the tenns of the Act,
was given by mailing of the requisite Mortgagee's Notice of Default and Intention to Sell within thirty (30) days
of the recording of said Notice, said Notice being published in a local newspaper of general circulation in Pulaski
County four (4) times for four consecutive weeks, with the last publication being no more than ten (10) days prior
to the sale, and by posting notice of such sale, pursuant to Act 983 of 1999, by a third-party posting provider, at
the place in the courthouse for Pulaski County, Arkansas where notices of judicial sales are ___
EXHIBIT
W&A No. 72-176119
B

2010004203 2 of 7
AND, WHEREAS, pursuant to the provisions of said Act, Deutsche Bank National Trust Company, as
Trustee for Morgan Stanely ABS Capital I Inc, Trust 2006"HE3, by its attomey.in"fact, Wilson & Associates,
P.L.L,C., proceeded to sell said property at public auction, at the Pulaski County Courthouse, on or about January
12,2010 at 3:30 P,M,;
AND, WHEREAS, at the time and place aforesaid, such sale was conducted pursuant to Act 983 of 1999
by a third"party auctioneer and said property was sold to Deutsche Bank National Trust Company, as Trustee for
Morgan Stanely ABS Capital I Inc. Trust 2006"HE3 for the price and sum of $165,750.00, it being the best and
highest bid.
NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS, that Deutsche Bank National Trust
Company, as Trustee for Morgan Stanely ABS Capital I Inc, Trust 2006-HE3. by its attomey"in-fact, Wilson &
Associates, P,L.L.C" by virtue of the powers granted by the Act, and in consideration of the foregoing premises
and of the sum of $165,750.00, paid by the said Deutsche Bank National Trust Company, as Trustee for Morgan
Stanely ABS Capital I Inc, Trust 2006-HE3, the receipt whereof is hereby acknowledged (which said sum of
money has been applied according to the directions of the Act), does GRANT, SELL. Al\I1) CONVEY unto the
said Deutsche Bank National Trust Company, as Trustee for Morgan Stanely ABS Capital I Inc. Trust 2006-HE3
and its successors and assigns forever the property, situated in the County of Pulaski, State of
Arkansas, to-wit:
Lot 26, Block 17. Overbrook Addition to the City of North Little Rock, Pulaski County, Arkansas.
Commonly known as: 52 Dove Creek Circle, North Little Rock, Arkansas 72116"6402
Tax Parcel No,: 33N0170040600
TO HAVE AND TO HOLD the said property. together 'With all and singular, the rights and
appurtenances thereto in anywise belonging unto the said Deutsche Bank National Trust Company, as Trustee
for Morgan Stanely ABS Capital I Inc. Trust 2006"HE3, its successors, and assigns forever. And for and on
behalf of the said Grantor(s) of said mortgage, and their heirs, executors, administrators. and assigns, . the
undersigned does hereby bind the said Thomas J. Morton and Wannetta Y. Morton, their heirs, executors,
administrators, and assigns to warrant and forever defend, all and singular, said premises, unto the said Deutsche
Bank National Trust Company, as Trustee for Morgan Stanely ABS Capital I Inc. Trust 2006-HE3, its
successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part
thereof.
EXECUTED on this _-.,;{J..{I_L __ day of 3;0 k r<y
W&A No. 72176119
Deutsche Bank National Trust Company, as Trustee for
Morgan Stanely ABS Capital I , Trust 2006-HE3, by its
attorney-in-fact, Wllson & ociates, P.L.L,C.
By:
2
...

2010004203 3 of 7
STATE OF ARKANSAS
COUNTY OF PULASKI
Matthew Smith 2006098
Director
ACKNOWLEDGMENT
Before me, the undersigned notary public of the state and county aforesaid, personally appeared
Matthew Smith. with whom I am personally acquainted (or proved to me on the basis of satisfactory evidence),
and who, upon oath, aclmowledged such person to be a Director (or other such officer authorized to execute the
instrument) of Wilson & Associates, P.L.L.C., attorney-in-fact for Deutsche Bank National Trust Company, as
Trustee for Morgan Stanely ABS Capital I Inc. Trust 2006HE3, and that such officer executed the foregoing
instrument for the purposes therein contained by personally signing his name thereto.
Witness my hand and seal at office in Little Rock, Arkansas this --'I .... __ day of =rebA
lu .
Grantee's Address:
Wells Fargo Bank N.A.
3476 Stateview Boulevard
Fort Mill, SC 29715
Tax Parcel No. 33N0170040600
Loan No. xxxxxx0640
W&A No. 72176119
NotaIy Public
My Commission ExUires: N MELISSA JlERESKO
County
My CommrU'on ElIplr81 09.08-2014
CERTIFICATE OF COMPLIANCE
ocumentary stamps have been placed on
Agent of Grantee
1521 Menill Drive, Suite D220
Little Rock, AR 72211
3

2010004203 4 of 7
EXHIBIT "A"
SERVICEMEMBERS CIVIL RELIEF ACT AFFIDAVIT
STATE OF Arkansas
COUNTY OF Pulaski
BEFORE ME. the undersigned authority, on this day personally appeared Matthew Smith, who after
being duly sworn, deposed and stated:
1. I am the Director with a certain mortgage. dated January 23. 2006. recorded, February 17,2006, as
Instrument No. 2006012916, in the real estate records of Pulaski County, Arkansas, executed by
Thomas J. Morton and Wannetta Y. Morton in favor of New Century Mortgage Corporation to
secure the payment of a promissory note to New Century Mortgage Corporation.
2. Deutsche Bank National Trust Company, as Trustee for Morgan Stanely ASS Capital I Inc. Trust
2006-HE3 is the holder of or agent for the holder of the indebtedness secured by said mortgage.
3. To the best of my knowledge and belief, the mortgagors holding an interest in the above-described
property were (1) not members of the Armed Forces of the United States of America and had not
been members of any such entities for at least three (3) months prior to the date of the foreclosure
sale the subject hereof or (2) were members Armed Forces of the United States of America at the
time the security instrument was executed.
4. As such, foreclosure of this property will not be subject to the provisions of 50 U.S.C.S. 501.
et seq. (the Servicemembers Civil Relief Act).
FURTHER AFFIANT SA YETH NOT.
-
DATED this -;;4L- day of '7
. !:b'tU .

Director
72176119
--------------------------- -----_ .. ,

2010004203 5 of 7
ACKNOWLEDGMENT
STATE OF Arkansas
COUNTY OF Pulaski
Personally appeared before me, a Notary Public of the state and county aforesaid, duly commissioned
and qualified, Matthew Smith, as Director, with whom I am personally acquainted, and who acknowledged that
he or she executed the within instrument as Director for the purposes therein contained.
Witness my hand and seal at office in Little Rock, Arkansas this \ of
10 .
A d
Notary Pu@1c ......
My Commission Expires:
DServiocMembersAftldavltARJlIIcnatU 00 1 12_1653
72-176119 2

2010004203 6 of 7
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MI..ary StatUs RepOrt;
Pursoant to the seMce Members CMI Relief Act
Upon searching the information data banks oftlla Department of Defense Manpower
Data Center, based on the information that you provided, the above is the current status
offhe incjyjdual as 10 all branches oftfle Uniformed Services CAm1Y. Navy. Marine Corps,
Air NOAA, Public Heatth, and Coast Guard).
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tile informatIOn you have furnished, the [)MDC
posseuany information Indlcallng the IndIVIdual
, Upon searching the Information data of Department of Defense
Manpower Oata Center, based on theinformittiOn that you provided, the above is
the current status oftre individual as to all branches of the Uniformed Services
(Army, Navy, Marine Corps, Air Force, NOM, Pubfic Health, and Coast Guard),
plguel Gertttlcate Help
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2010023151 Received: 4/26/2010 10:23:30 AM Recorded: 04/26/2010 10:49:43 AM
Filed & Recorded in Official Records of PAT O'BRIEN, PULASKI COUNTY
CIRCUIT/COUNTY CLERK Fees $25.00
Associates Closing & Title
I certifY under penalty of false swearing that the legaHy correct amount
of documentary stamps have been placed on this instrument. If none shown, exempt
or no consideration paid.
00hM.tbo j) . Olb.1 ctX
J
A
Grantee's Address: ____ _
1\}D-fH"" L: Rock, M
Grantee or Agent:
SPECIAL WARRANTY DEED
KNOW ALL MEN BY THESE PRESENTS:
THAT, Deutsche Bank National Trust Company, as Trustee for Morgan Stanely ABS Capital I Inc.
Trust 2006-HE3, Grantor, having been duly authorized by a resolution of its board of directors or otherwise, by
and through its duly appointed attorney-in-fact Wells Fargo Bank, N.A., for and in consideration of the sum of
Ten Dollars ($10.00), and other good and valuable consideration, in hand paid by Johnathan D. Dial and Lydia
A. Dial, husband and wife, Grantees, the receipt and sufficiency of which is hereby acknowledged, does bereby
convey unto the said Grantees, and unto their heirs and assigns forever, the following lands situated in Pulaski
County, Arkansas, to-wit:
Lot 26, Block 17, Overbrook Addition to the City of North Little Rock, Pulaski County, Arkansas.
Thi, In,m.men. Prepared by:
Wilson & Associ.,es. P.L.L.c.
152 I Memll Drive. Suite D-220
Lillie Rock. Arl:ansa, 7211 I
700()'2591
7000.2592
EXHIBIT
C
2 of 3
TO HA VB AND TO HOLD the same unto the said Grantees, and unto their heirs and assigns
forever, with all tenements, appurtenances and hereditaments thereunto belonging, subject to current taxes and
other assessments, reservations in patents and all easements, rights-of-way, encumbrances, liens, covenants,
conditions, restrictions, obligations and liabilities as may appear of record, the Grantor hereby binds itself to
warrant and defend the title as against all acts of the Grantor herein and no other.
EXECUTED in the name of the Grantor this dO-
Zolo
day of 'r<\ClCc. '"
Deutsche Bank National Trust Company, as Trustee for Morgan Stanely ABS Capital I Inc. Trust 2006-HE3
By Wells Fargo Bank, N.A. as Attorney-m-Fact
Janet B. Farmer
BY:' __ lj-p- , Loan Dooumentation
"
This lnsbum=nl by:
Wilson &: Associat , P .L.L.C.
152 I MmrlU Drive, 0-220
Little Rook. Ark"",.. 72211

10002592
3 of 3
--------------------- .. ------
ACKNOWLEDGMENT
STATE OF ( california)
)ss.
COUNTY OF( San Bemardln,
On this day before me, a Notary Public, personally appeared _--"o;anl-1le:;J.t .... __
well-known, who acknowledged that is the \J'?Lb of Wells Fargo
Bank, N.A., a corporation, as attorney-in-fact for Deutsche Bank National Trust Company, as
Trustee for Morgan Stanely ABS Capital I Inc. Trust 2006-HE3. a corporation, and that as
such officer, being authorized so to do, has executed the foregoing instrument for the consideration
and purposes therein contained, by signing the name of the corporation as such attorney-in-fact by
such officer.
Witness my hand and notruy seal this
___ ____ , '2;::'\0 .

If to . sen
@
S.L.HUNT
Commlllion tI 1 BOMOS f
i . Notary Public Callfornl. I
J Sin Blrnardlno County
c. e M: gOTT' 3, 2012 (

My commission expires:
This Instrument Prepared by;
Wilson & Associates, P.L.L.C.
1521 McrriU Drive, Suite D-220
Lillie Rock, Arkansas 72211
7000-2592
7000-2592
day of
STATE OF ARKANSAS CIRCUIT COTIRT
PULASKI COLINTY, FIFTH DTVISION
JOHNATHAN D. DIAL AND LYDIA A.
DIAL, HUSBAND AND WIFE,
INDIVIDUALLY,
AND ON BEHALF OF
SIMILARLY SITUATED PERSONS,
Plaintiffs,
v.
DEUTSCIIE BANK NATIONAL TRUST
COMPANY, AS TRUSTEE FOR
MORGAN STANLEY ABS CAPITAL I
INC. TRUST 2OO6-HE3, INDIVIDUALLY,
AND AS REPRESENTATIVE OF
SIMILARLY SITUATED PERSONS;
MORGAN STANLEY ABS
CAPITAL I INC. TRUST 2006-I{83,
INDIVIDUALLY, AND AS
REPRESENTATIVE
OF SIMILARLY
SITUATED PERSONS;AND THOMAS J.
MORTON AND WANNETTA Y.
MORTON,
CASE NO. 60-CV-201 1-5001
Judge Wendell Griffen
NOTICE TO STATE COTIRT
AND PLAINTIFFS OF REMOVAL TO
F'EDERAL COURT
Defendants.
TO PLAINTIFFS AND TTMIR ATTORNEYS OF RECORD AND TO THE CLERK
OF TI{E ABOVE-TITLED COURT:
PLEASE TAKE NOTICE that a Notice of Removal of this action was filed in the
United States District Court for the Eastern District of Arkansas on March 22, 2Ol2 by
Defendant Deutsche Bank National Trust Company, as Trustee for Morgan Stanley ABS
Capital I Inc. Trust 2006-H83.1 A true and correct copy of the Notice of Removal is attached
hereto and is served and frled herewith.
1
Plaintiffhas named as a defendant Morgan Stanley ABS Capital I Inc. Trust 2006-H83,
which is not a
juridical
entity capable of being sued in its own name. See Fausett & Co., Inc.
v. Bogard,285 Aft. 124, 126 (1985). To the best of DBNTC, as Trustee,s knowledge,
Morgan Stanley ABS Capital I Inc. Trust 2006-IIE-3 has not been served. To the extent that
an appearance of counsel on behalf of Morgan Stanley ABS Capital I Inc. Trust 2006-IIE3 is
required, the undersigned counsel is also appearing on its behalf.
DB2/ 23046008.1
ELECTRONICALLY FILED
2012-Mar-22 16:51:58
60CV-11-5001
PLEASE TAKE FURTHER NOTICE that, pursuant to 28 U.S.C.
5
1446, the filing of
the Notice of Removal in the United States District Court for the Eastern District of
Arkansas, together with the frling of a copy of such Notice herein, effects the removal of this
action, and this Court may not proceed any further with this action unless and until it is
remanded.
Dated: March 22,2012 Respectfu lly submitted,
Elizabeth A. Frohlich
Qtro
hac vice appltcation to be
submitted)
Laya R. Kaigh
Qtro
hac vice application to be
submitted)
MORGAN, LEWIS & BOCKIUS, LLP
One Market, Spear Street Tower
San Francisco, California 94105
Phone: (415) 442-1000
Fax: (415) 442-1001
Email : efrohlich@morganlewis. com
lkaigh@morganlewis. com
and
WRIGHT, LINDSEY & IENNINGS LLP
200 West Capitol Avenue, Suite 2300
Attorueys
for
Defendant Deutsche Bank National Trust
Company, as trusteefor Morgan Stanley ABS Capitat I
Inc. Trust 2006-HE3'
2
See supra note 1
DB2l 23046008.1
Little Rock, AR 7 220I -3 699
Phone: (501) 371-0808
Fax: (501) 3"76-
Charles T. Coleman (80030)
PLEASE TAKE FURTHER NOTICE that, pursuant to 28 U.S.C. 1446, the filing of
the Notice of Removal in the United States District Court for the Eastern District of
Arkansas, together with the filing of a copy of such Notice herein, effects the removal of this
action, and this Court may not proceed any further with this action unless and until it is
remanded.
Dated: March 22,2012
2 See supra note 1.
DB2/23046008.1
Respectfully submitted,
Elizabeth A. Frohlich (pro hac vice application to be
submitted)
Laya R. Kaigh (pro hac vice application to be
submitted)
MORGAN, LEWIS & BOCIGUS, LLP
One Market, Spear Street Tower
San Francisco, California 94105
Phone: (415) 442-1000
Fax: (415) 442-1001
Email: efrohlich@morganlewis.com
lkaigh@morganlewis.com
and
WRIGHT, LINDSEY & JENNINGS LLP
200 West Capitol Avenue, Suite 2300
Little Rock, AR 72201-3699
Phone: (501) 371-0808
Fax: (501) 376-9 22
Email: ccole @
By: ______ ~ ~ ~ - - - - ~ ~ - - __ ___
Charles T. Coleman (80030)
Attorneys for Defendant Deutsche Bank National Trust
Company, as trustee for Morgan Stanley ABS Capital I
Inc. Trust 2006-HE3
2
2
CERTIF'ICATE OF' SBR\TCE
This is to certify that a copy of the forgoing was mailed by flrst class mail on this
22ndday of Marclq 2012,uponthe following:
Drake Mann Paul A. Schmidt, Sr.
Christopher L. Travis SCHMIDT LAW FIRM, PLC
GILL ELROD RAGON OWEN & 401 W. Pine Street
SHERMAN, P.A. P.O. Box 564
425 West Capitol Avenue, Suite 3801 Cabot, AR72023
Little Rock, AR7220l
Atto ru ey s
fo
r D efend ant s
and Thomqs J. Morton and Wannetta Y. Morton
Sean F. Rommel
James C. Wyly
WYLY-ROMMEL, PLLC
2311 Moores Lane
Texarkana, TX 75503
Attorneysfor Plaintffi
u^/w
Charles T. Coleman
DB2/ 23046008. l
CERTIFICATE OF SERVICE
This is to certify that a copy of the forgoing was mailed by fIrst class mail on this
22nd day of March, 2012, upon the following:
Drake Mann
Christopher L. Travis
GILL ELROD RAGON OWEN &
SHERMAN, P.A.
425 West Capitol Avenue, Suite 3801
Little Rock, AR 72201
and
Sean F. Rommel
James C. Wyly
WYL Y-ROMMEL, PLLC
2311 Moores Lane
Texarkana, TX 75503
Attorneys for Plaintiffs
DB2/23046008.!
3
Paul A. Schmidt, Sr.
SCHMIDT LAW FIRM, PLC
401 W. Pine Street
P.O. Box 564
Cabot, AR 72023
Attorneys for Defendants
Thomas J. Morton and Wannetta Y. Morton
Charles T. Coleman
IN THE T'NITED STATES DISTRICT COT]RT
EASTERN DISTRICT OF ARKANSAS
LTTTLE ROCKDTVTSION
M,\R
2 2
Z01Z
#|te133:*ftf.-{AcK,
cLERK
DEP CLERK
JOHNATHAN D. DIAL AND LYDIA A. DIAL,
HUSBAND AND WIFE, INDTVIDUALLY, AND
ON BEHALF OF SIMILARLY SITUATED
PERSONS,
Plainffis,
v.
DEU-TSCIM BANK NATIONAL TRUST
COMPANY, AS TRUSTEE FOR MORGAN
STANLEY ABS CAPITAL I INC. TRUST 2006-
}M3, INDTVIDUALLY, AND AS
REPRESENTATTVE OF SIMILARLY SITUATED
PERSONS; MORGAN STANLEY ABS CAPITAL
I INC. TRUST 2OO6.HE3, INDTVIDUALLY, AND
AS REPRESENTATIVE OF SIMILARLY
SITUATED PERSONS; AND THOMAS J.
MORTON AND WANNETTA Y. MORTON,
NOTICE OF REMOVAL
J
Y;":f
Defendants.
PLEASE TAKE NOTICE that pursuant to 28 United States Code Sections 1332 and
1441, Defendant Deutsche Baak National Trust Company, as tnrstee for MorBan Stanley
ABS Capital I Inc. Trust 2006-IIE3 ("DBNTC, as Trustee"),l hereby removes to this Court
1
Defendant DBNTC, as Trustee holds title to properties only in its capacity as trustee of
specific residential mortgage-backed securitization trusts. Thus, Plaintiffs' claims may only
properlybe brought against DBNTC in its capacity as trustee for the specific trust that holds
or held title to the specific property at iszue. To the extent Plaintiffs' allegations are deemed
to apply to DBNTC in any other capacities, the arguments and positions stated herein are
made on bebalf of DBNTC in those capacities, as well. Also, all of Plaintiffs' allegations
regarding actions taken in connection with foreclosures poncern activities that are handled by
loan servicers on behalf of the applicable trustee and tnrsq not by DBNTC in any capacity.
EXHIBIT
in
.e
o
o
6
CASE No.
a
.
].Z-
CY
- 0 18 0g Rt/
Judge
This
'-::"' ' ':,:l
gnd
tr":
:!rl.tLt! ,;, , :{l
r6:r! r1
l-; a.t1i1t
DBA 23034855.6
I

US illS i "'leT COURT
EASTERN I);;: j fN'j ARKANSAS
MAR 22 2012
IN THE UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF ARKANSAS
LITTLE ROCK DIVISION
JAMES W. McCORMACK CLERK
By: I
JOHNATHAN D. DIAL AND LYDIA A. DIAL,
HUSBAND AND WIFE, INDIVIDUALLY, AND
ON BEHALF OF SIMILARLY SITUATED
PERSONS,
DEPCLERK
CASE NO. 4 -12- CV - 0 180J3RW
Plaintiffs,
v.
DEUTSCHE BANK NATIONAL TRUST
COMPANY, AS TRUSTEE FOR MORGAN
STANLEY ABS CAPITAL I INC. TRUST 2006-
HE3, INDIVIDUALLY, AND AS
REPRESENTATIVE OF SIMILARLY SITUATED
PERSONS; MORGAN STANLEY ABS CAPITAL
I INC. TRUST 2006-HE3, INDIVIDUALLY, AND
AS REPRESENTATIVE OF SIMILARLY
SITUATED PERSONS; AND THOMAS J.
MORTON AND WANNETTA Y. MORTON,
Defendants.
Judge
This (,:;"c
and tc
NOTICE OF REMOVAL
PLEASE TAKE NOTICE that pursuant to 28 United States Code Sections 1332 and
1441, Defendant Deutsche Bank: National Trust Company, as trustee for Morgan Stanley
ABS Capital I Inc. Trust 2006-HE3 ("DBNTC, as Trustee"),I hereby removes to this Court
1 Defendant DBNTC, as Trustee holds title to properties only in its capacity as trustee of
specific residential mortgage-backed securitization trusts. Thus, Plaintiffs' claims may only
properly be brought against DBNTC in its capacity as trustee for the specific trust that holds;
or held title to the specific property at issue. To the extent Plaintiffs' allegations are deemed
to apply to DBNTC in any other capacities, the arguments and positions stated herein are
made on behalf ofDBNTC in those capacities, as well. Also, all of Plaintiffs' allegations
regarding actions taken in connection with foreclosures concern activities that are handled by
loan servicers on behalf of the applicable trustee and trust, not by DBNTC in any capacity.

DB2I23034855.6
\
the state court action described belorxr.2 As grounds for removal, DBNTC, as Trustee states
the following:
BACKGROUND
1. On October 17, 2011, Plaintiffs Johnathan and Lydia Dial, individually and on
behalf of similarly situated persons, commenced in the Circuit Court of Pulaski County,
Arkansas, Fifth Division, an action entitled Dial v. Deutsche Battk National Trust Conrpany,
as Trustee, et al.,No.60-CV-2011-5001, by filing a Complaint against Defendants Deutsche
Bank National Trust Company, as Trustee for Morgan Stanley ABS Capital i Inc. Trust 2006-
HE3; Morgan Stanley aBS Capital I lnc. Trust 2006-F{E-3 ("the Trust"); and Thomas J.
Morton and Wametta Y. Morton ("the Mortons"). On February 14,2012, Plaintiffs fiIed an
Amended Complaint. A copy of the entirefy of the state court pleadings, including the
Summons, Complaint, and Amended Complainq are atlached hereto as Exhibit A.
2. Plaintiffs allege that DBNTC, as Trustee and the Trust violated the Arkansas
Statutory Foreclosure Act ("ASFA"), Ark. Code Ar:n.
$$
18-50-101 to 18-50-117,by
availing themselves of the procedures of the ASFA without fosing "authoized to do business
in Arkansas." (Comp1.
1T1T
3, 5.) Piaintiffs contend that to be "authorized to do business"
within the meaning of the ASFA, an entity must obtain a certificate of authority from the
Secretary of State pursuant to Ark. Code Ann.
S
4-27-1501and comply with the friing
requirements of Ark. Code Ann.
S
4-31-402. (Id
1fl
25-27 .) As a result of this purported
failure to be properiy authorized, Plaintiffs assert that all statutory foreclosures conducted in
the name of DBNTC, as Trustee are invalid, and that DBNTC, as Trustee never acquired title
to the real properLies through those statutory forecloswes. (Id.
fl'lT
4-5.) Consequently,
'?Plaintiff
has named as a Defendant Morgan Stanley ABS Capital l Inc. Trust 2006-I{E-3,
which as is explained in detail below, is not a
juridical entity capable of being sued in its own
nilre. See infranllU-20. To the best of DBNTC, as Trustee's knowledge, Morgan Stanley
ABS Capital I Inc. Trust 2006-IIE-3 has not been served. To the extent that an appearance of
counsel cin behaif of Morgan Stanley ABS Capital I Inc. Trust 2006-IIE-3 is required the
undersigned counsel is also appearing on its behalf.
DB2/ 23034855.6
the state court action described below.
2
As grounds for removal, DBNTC, as Trustee states
the following:
BACKGROUND
l. On October 17, 2011, Plaintiffs Johnathan and Lydia Dial, individually and on
behalf of similarly situated persons, commenced in the Circuit Court of Pulaski County,
Arkansas, Fifth Division, an action entitled Dial v. Deutsche Bank National Trust Company,
as Trustee, et at., No. 60-CV-2011-5001, by filing a Complaint against Defendants Deutsche
Bank National Trust Company, as Trustee for Morgan Stanley ABS Capital I Inc. Trust 2006-
HE3; Morgan Stanley ABS Capital I Inc. Trust 2006-HE-3 ("the Trust"); and Thomas J.
Morton and Wannetta Y. Morton ("the Mortons"). On February 14, 2012, Plaintiffs filed an
Amended Complaint. A copy of the entirety of the state court pleadings, including the
Summons, Complaint, and Amended Complaint, are attached hereto as Exhibit A.
2. Plaintiffs allege that DBNTC, as Trustee and the Trust violated the Arkansas
Statutory Foreclosure Act ("ASFA"), Ark. Code Ann. 18-50-101 to 18-50-117, by
availing themselves of the procedures of the ASF A without being "authorized to do business
in Arkansas." (Compi. ~ ~ 3,5.) Plaintiffs contend that to be "authorized to do business"
within the meaning of the ASF A, an entity must obtain a certificate of authority from the
Secretary of State pursuant to Ark. Code Ann. 4-27-1501 and comply with the filing
requirements of Ark. Code Ann. 4-31-402. (fd. ~ 25-27.) As a result of this purported
failure to be properly authorized, Plaintiffs assert that all statutory foreclosures conducted in
the name of DBNTC, as Trustee are invalid, and that DBNTC, as Trustee never acquired title
to the real properties through those statutory foreclosures. (Id. ~ ~ 4-5.) Consequently,
2 Plaintiff has named as a Defendant Morgan Stanley ABS Capital I Inc. Trust 2006-HE-3,
which as is explained in detail below, is not a juridical entity capable of being sued in its own
name. See infra ~ ~ 14-20. To the best ofDBNTC, as Trustee's knowledge, Morgan Stanley
ABS Capital I Inc. Trust 2006-HE-3 has not been served. To the extent that an appearance of
counsel on behalf of Morgan Stanley ABS Capital I Inc. Trust 2006-HE-3 is required, the
undersigned counsel is also appearing on its behalf.
DB2/23034855.(I
2
Plaintiffs allege, DBNTC, as Trustee failed to convey fee title to anyone u,ho purchased reai
property that had been foreclosed through the ASFA, thereby breaching the covenants "to
warrart and defend the title against all their own acts." (Id.Itrl6-7.)
3. With respect to Plaintiffs' property i:r particular, Plaintiffs allege that in
January 2010, DBNTC, as Trustee instituted statutory foreclosure proceedings on the
properfy located at 52 Dove Creek Circle in North Little Roctg Arkansas after the prior
or
rners,
the Mortons, defaulted on their mortgage.
Qd.fl1
17-20.) They contend that
DBNTC, as Trustee later sold the properly to itself at a public auction. (Id.
n
19.)
Subsequentiy, in March 2010, Plaintiffs purportedly purchased the properly from DBNTC, as
Trustee. (Id.lt 23.) Plaintiffs claim that because DBNTC, as Trustee \\ras not "authorized to
do business in Arkansas," it failed to foreclose on the Mortons' properly under the ASFA,
failed to acquire title to the properly at the public auction, and failed to transfer the property
in fee simple to Plaintiffs.
{1d.ffl,28-34.)
4. The purported plaintiff class consists of "[a]11 persons who, on or after
October 17,2006, purchased real property and are grantees thereto in a general or special
warrarty deed from an entity that was not authorized to do business in Arkansas before
avaiiing itself of the
[ASFA]."
(Id.
n
37 .) Plaintiffs also seek to have a class of defendants
certified and represented by DBNTC, as Trustee. The putative defendant class would consist
of aii entities that availed themseives of the procedures of the ASFA without being
"authorized to conduct busiless" in Arkansas, and thereafter executed and delivered a
wa:ranty deed to the subject real properly after October 17,2006. (1d
1tfl
48-49.)
5. Plainffis assert 3 5ingle claim for declaratory
judgment. Specificaliy, they
seek a deciaration that the Mortons hold paramount title to the subject property, that DBNTC,
as Trustee breached the covenant of seisir, and that Plainffis are entitled to both equitable
and monetary relief. (Id
111135,
65.) Plaintiffs also petition for an order against Defendants
DB2t 230348ss.4
Plaintiffs allege, DBNTC, as Trustee failed to convey fee title to anyone who purchased real
property that had been foreclosed through the ASF A, thereby breaching the covenants "to
warrant and defend the title against all their own acts." (Id. ' J ~ 6-7.)
3. ,'lith respect to Plaintiffs' property in particular, Plaintiffs allege that in
January 2010, DBNTC, as Trustee instituted statutory foreclosure proceedings on the
property located at 52 Dove Creek Circle in North Little Rock, Arkansas after the prior
owners, the Mortons, defaulted on their mortgage. (!d. ~ ~ 17-20.) They contend that
DBNTC, as Trustee later sold the property to itself at a public auction. (Id. ~ 19.)
Subsequently, in March 2010, Plaintiffs purportedly purchased the property from DBNTC, as
Trustee. (Id. ~ 23.) Plaintiffs claim that because DBNTC, as Trustee was not "authorized to
do business in Arkansas," it failed to foreclose on the Mortons' property under the ASFA,
failed to acquire title to the property at the public auction, and failed to transfer the property
in fee simple to Plaintiffs. (Id. ~ ~ 28-34.)
4. The purported plaintiff class consists of "[ a]ll persons who, on or after
October 17, 2006, purchased real property and are grantees thereto in a general or special
warranty deed from an entity that was not authorized to do business in Arkansas before
availing itself of the [ASF A]." (Id. ~ 37.) Plaintiffs also seek to have a class of defendants
certified and represented by DBNTC, as Trustee. The putative defendant class would consist
of all entities that availed themselves of the procedures of the ASF A without being
"authorized to conduct business" in Arkansas, and thereafter executed and delivered a
warranty deed to the subject real property after October 17, 2006. (Id. ~ ~ 48-49.)
5. Plaintiffs assert a single claim for declaratory judgment. Specifically, they
seek a declaration that the Mortons hold paramount title to the subject property, that DBNTC,
as Trustee breached the covenant of seisin, and that Plaintiffs are entitled to both equitable
and monetary relief. (Id. ~ ~ 35,65.) Plaintiffs also petition for an order against Defendants
DE2/ 2303485 5.iI
3
and the purported defendant class to show why further relief should not be granted. (Id.
1T6s.)
TIh{ELINESS OF REMOVAL
6. The docket of the Circuit Court of Pulaski County, Arkansas, Fifth Division
shou,s that the Complaint was served on DBNTC, as Trustee on February 27,2A72. (Ex. A.)
This Notice is timeiy filed within 30 days of sen ice of the Summons and Compiaint on
DBNTC, as Trustee. See 28 U.S.C.
$
1a 6@); Browtt v. Tokio Marine & Fire Ins. Co.,284
F.3d 871, 873 (8th Cir. 2002) ("The iaw is settled in this Circuit that the thirty-day period to
file a notice of removal runs from the time that a defendant is sen ed with the complaint, even
when the defendant is a later-sen,ed defendant and does not receive service until the time
limit during which the first-served defendant could have removed the case has expired.");
accord Marcano Enters. of Kansas v. Z-Teca Rests., L.P.,254 F.3d 753, 756-57 (8th Cir.
2001).
DTVERSITY JTIRISDICTION E)ilSTS
7. Removal of this action is proper because this Court has original
jurisdiction
pursuant to 28 United States Code Section1332, and may be removed to this Court pur$rant
to 28 United States Code Section iaal@) because it is a civil action between citizens of
different states and the matter in controversy exceeds the sum of $75,000, exclusive of
interest and costs.
8. Complete diversity of citizenship exists between Plaintiffs and Defendants.
9 . Plaintiffs are residents and citizens of Arkansas. (Compl.
fl
10); see Yeldell v.
Tutt, 913 F.2d 533, 537 (8th Cir. 1990).
10. None of the properly named Defendants-namely, DBNTC, as Trustee-is a
citizenof the State of Arkansas. Defendant DBNTC, as Trustee is a citizen of Califomia
because it is a nationaf baxk organizsd to carry on the business of a limited purpose trust
DB2t 230348ss.6
and the purported defendant class to show why further relief should not be granted. (Id.
~ 65.)
TIMELINESS OF REMOVAL
6. The docket of the Circuit Court of Pulaski County, Arkansas, Fifth Division
shows that the Complaint was served on DBNTC, as Trustee on February 21,2012. (Ex. A.)
This Notice is timely fIled within 30 days of service of the Summons and Complaint on
DBl\TTC, as Trustee. See 28 U.S.C. 1446(b); Brown v. Toho Marine & Fire Ins. Co., 284
F.3d 871, 873 (8th Cir. 2002) ("The law is settled in this Circuit that the thirty-day period to
file a notice of removal runs from the time that a defendant is served with the complaint, even
when the defendant is a later-served defendant and does not receive service until the time
limit during which the first-served defendant could have removed the case has expired.");
accord Marcano Enters. of Kansas v. Z-Teca Rests., L.P., 254 F.3d 753, 756-57 (8th Cir.
2001).
DIVERSITY JURISDICTION EXISTS
7. Removal of this action is proper because this Court has original jurisdiction
pursuant to 28 United States Code Section 1332 , and may be removed to this Court pursuant
to 28 United States Code Section 1441(b) because it is a civil action between citizens of
different states and the matter in controversy exceeds the sum of $75,000, exclusive of
interest and costs.
8. Complete diversity of citizenship exists between Plaintiffs and Defendants.
9. Plaintiffs are residents and citizens of Arkansas. (CompI. ~ 10); see Yeldell v.
Tutt, 913 F.2d 533,537 (8th Cir. 1990).
10. None of the properly named Defendants-namely, DBNTC, as Trustee-is a
citizen of the State of Arkansas. Defendant DBNTC, as Trustee is a citizen of California
because it is a national bank organized to carry on the business of a limited purpose trust
DB2/23034855.iI
4
company and its articles of association designate that its main ofFrce is located in Califomia.
'\v/achovia
Battkv. Schnddt,546 U.S. 303, 318 (2006) (holding that a national bank's
citizenship is the state designated in its articles of incorporation as the locus of its main
office).
i 1. The Complaint also names as a Defendant Morgan Stanley ABS Capitai I lnc.
Trust 2006-I{E3. Hou,ever, the Trust is not a
juridical
entity and, therefore, cannot be sued in
its ou,n name. See First Ution Nat'l Bankv. Pictet Overseas Trust Corp., Ltd.,351 F.3d 810,
814 (8th Cir. 2003). The trustee, DBNTC, as Trustee-not the Trust-is the property parry
to sue or be sued with respect to trust assets. Regardless, for diversity puq)oses, the Trust is
considered a citizen of Califonda because its trustee, DBNTC, as Trustee, is a citizen of
California. See Crews & Assocs., Inc. v. Nuveen Higlt Yield Mun. Bond Futtd, Ittc.,783 F.
Supp. 2d 1066 (E.D. A*. 201 l); Beeclt v. Select Porfolio Servicirtg, Inc.,2010 WL 2775855
(E.D. AIk.2010).
12. The Complaint also names as Defendants the Mortons, who are residents of
Arkansas. However, the Court should realigu the Mortons as plaintiffs because Plaintiffs'
and the Mortons' interests are aligned with respect to the primary and controiling matter in
dispute. In the altemative, the Court should disregard the citizenship of the Mortons in
determining diversity
jirisdiction
on the ground that the Mortons were fraudulentiy
joined.
13. OnIy the citizenship of the named representative parties in a class action is
considered for diversity purposes. That the action is maintained on behalf of other, non-
diverse class members does not affect diversity
jurisdiction.
Stryder v. Han'is,394 U.S. 332,
339-40 (i96e).
The Citizenship of the Trust Is Irrelevant Because It Is Not a Juridical Entitv
14. The citizenship of Defendant Morgan Stanley ABS Capital I Inc. Trust 2006-
IIE3 is irrelevant for purposes of diversity
jurisdiction
because trusts are not
juridical
entities
DBz/ 23034855.6
company and its articles of association designate that its main office is located in California.
Wachovia Bank v. Schmidt, 546 U.S. 303, 318 (2006) (holding that a national bank's
citizenship is the state designated in its articles of incorporation as the locus of its main
office).
11. The Complaint also names as a Defendant Morgan Stanley ABS Capital I Inc.
Trust 2006-HE3. However, the Trust is not a juridical entity and, therefore, cannot be sued in
its own name. See First Union Nat'f Bankv. Pictet Overseas Trust C01p., Ltd., 351 F.3d 810,
814 (8th Cir. 2003). The trustee, DBNTC, as Trustee-not the Trust-is the property party
to sue or be sued with respect to trust assets. Regardless, for diversity purposes, the Trust is
considered a citizen of California because its trustee, DBNTC, as Trustee, is a citizen of
California. See Crews & Assocs., Inc. v. Nuveen High Yield Mun. Bond Fund, Inc., 783 F.
Supp. 2d 1066 (E.D. Ark. 2011); Beech v. Select Portfolio Servicing, Inc., 2010 WL 2775855
(E.D. Ark. 2010).
12. The Complaint also names as Defendants the Mortons, who are residents of
Arkansas. However, the Court should realign the Mortons as plaintiffs because Plaintiffs'
and the Mortons' interests are aligned with respect to the primary and controlling matter in
dispute. In the alternative, the Court should disregard the citizenship of the Mortons in
determining diversity jurisdiction on the ground that the Mortons were fraudulently joined.
13. Only the citizenship of the named representative parties in a class action is
considered for diversity purposes. That the action is maintained on behalf of other, non-
diverse class members does not affect diversity jurisdiction. Snyder v. Harris, 394 U.S. 332,
339-40 (1969).
The Citizenship ofthe Trust Is Irrelevant Because It Is Not a Juridical Entity
14. The citizenship of Defendant Morgan Stanley ABS Capital I Inc. Trust 2006-
HE3 is irrelevant for purposes of diversity jurisdiction because trusts are not juridical entities
DB2/23034855.<I
5
in Arkansas, i.e., they cannot sue orbe sued. Federal Rule of Civil Procedure 17 governs the
issue of whether a named parff has the capacity to be sued in United States district courts.
Under the Rule, the "[c]apacity to sue or be sued is determined as fo1los's: (i) for an
individual u,ho is not acting in a representative capacity,by the 1aw of the individual's
domicile; (2) for a corporation, by the law under which it was organized; and (3) for all other
parties, by the law of the state where the court is located . . . ." Fed. R. Civ. P. 17(b). Here,
the Trust, being neither an individual nor a corporation, fails within the third subsection.
Thus, whether the Trust has the capacity to be sued depends on the law of Arkansas. While
Arkansas courts have not squarely addressed this issue, relevant Arkansas statutes, persuasive
authority from sister states, and other federal courts indicate that trusts are notjuridical
entities.
15. At common law, trusts were not considered independent legal entities and,
therefore, could not sue or be sued in their own names. Bogert, The Law of Tntsts and
Trastees,
5
712. Consequently, the capacity to sue or be sued rested in the trustee. Id. at
$
869, p. 113; see also First
(Jnion
Nat'l Bank,351 F.3d at 874 ("Historica1iy, a trust estate
was not a
juridical entity, hence the observation that a suit by strangers to the trust must be
brought against the trustees thereof individually and not against the fictional entity." (citation
omitted)).
16. In Arkansas, the traditional rule is that unincorporated associations, such as
trusts, lack the capacily to sue or be sued. Fausett & Co., Inc. v. Bogard,285 Ark. 124, 126
(i985). Over the past few decades, the Arkansas Legislature has modifi.ed the common Iaw,
clearly establishing which entities are
juridical entities under Arkansas law. CurrentlY, the
foilowing entities have the capacity to sue and be sued in Arkansas:
DB2/ 23034855.6
a. Corporations (Ark. Code Ar:n.
5S
4-26-204(a)Q); a-27-302(1));
in Arkansas, i.e., they cannot sue or be sued. Federal Rule of Civil Procedure 17 governs the
issue of whether a named party has the capacity to be sued in United States district courts.
Under the Rule, the "[ c ]apacity to sue or be sued is determined as follows: (1) for an
individual who is not acting in a representative capacity, by the law of the individual's
domicile; (2) for a corporation, by the law under which it was organized; and (3) for all other
parties, by the law 0 f the state where the court is located .... " Fed. R Civ. P. 17 (b). Here,
the Trust, being neither an individual nor a corporation, falls within the third subsection.
Thus, whether the Trust has the capacity to be sued depends on the law of Arkansas. While
Arkansas courts have not squarely addressed this issue, relevant Arkansas statutes, persuasive
authority from sister states, and other federal courts indicate that trusts are not juridical
entities.
15. At common law, trusts were not considered independent legal entities and,
therefore, could not sue or be sued in their own names. Bogert, The Law of Trusts and
Trustees, 712. Consequently, the capacity to sue or be sued rested in the trustee. Id. at
869, p. 113; see also First Union Nat'! Bank, 351 F.3d at 814 ("Historically, a trust estate
was not a juridical entity, hence the observation that a suit by strangers to the trust must be
brought against the trustees thereof individually and not against the fictional entity." (citation
omitted)).
16. In Arkansas, the traditional rule is that unincorporated associations, such as
trusts, lack the capacity to sue or be sued. Fausett & Co., Inc. v. Bogard, 285 Ark. 124, 126
(1985). Over the past few decades, the Arkansas Legislature has modified the common law,
clearly establishing which entities are juridical entities under Arkansas law. Currently, the
following entities have the capacity to sue and be sued in Arkansas:
a. Corporations (Ark. Code Ann. 4-26-204(a)(2); 4-27-302(1));
DB2/23034855.4
6
b. Parhrerships (Ark. Code
$
4-46-307(a). The Act became applicable to
all parherships on January i, 2005. See Act 1518 of 1999,
$
i205.);
c. Limited parlnerships (Ark. Code Ann.
S$
4-47-104;4-47-105);
d. Limited liability parhrerships (Ark. Code Ann.
$$
4-46-306; 4-46-307);
e. Limited liabiliry limited parffrershiFs (Ark. Code Ann.
$$
a-a7-104; -
a7-105);
f. Limited liability companies (Ark. Code Axn.
$
4-32-Il0l);
g. Unincorporated nonprofit associations (Ark. Code Axn.
$
4-28-
s07(a));
h. Counties (Ark. Code Axn.
$
14-14-501,);
i. Cities (Ark. Code Ann.
$
6-i3-102(a)); and
j.
School districts (Ark. Code Axr1.
$
14-54-10i(1))'
17. Trusts are not included in the list of recognized
jwidical entities under
Arkansas law. Thus, 16. 4fl1ansas Legisiature has not manifested an intent to modit, the
corr1mon law as it pertains to trusts.
18. Precedent from sister states and other federal courts support the conclusion
that trusts lack capacity to sue or be sued in their o$t name. See, e.g., Coverdell v. Mid-
South Farm Equip. Ass'n,335 F.2d 9, 12-13 (6th Cir. 196a)
@oldingthat
a trust is not an
entity that can be sued and that "the trustees would have been the proper parties defendant in
the instant matter, rather than the trust"); Fred Martin Motor Co. v. LML Techs., lnc.,2008
WL 750555, at
*1
Q.{.D.
Ohio Mar. 19,2008) (holding that the trustee is the legal owner of
the trust res and the proper party defendant in a suit involving a trust); Colo. Springs
Cablevision, Inc. v. Lively, 579 F. Supp. 252, 254 (D. Colo. 1984) (holding that a t-ust is not
an entity that can be sued); Hershel Cal. Fntit Prods. Co. v. Hunt Foods, Inc., 119 F. Supp.
6A3, 6A7
Qrt.D.
Cal. 1954) ("Under both the Federal Rules of Civil Procedure and the law of
DB2/ 23034855.6
b. Partnerships (Ark. Code 4-46-307(a). The Act became applicable to
all partnerships on January 1,2005. See Act 1518 of 1999, 1205.);
c. Limited partnerships (Ark. Code Ann. 4-47-104; 4-47-105);
d. Limited liability partnerships (Ark. Code Ann. 4-46-306; 4-46-307);
e. Limited liability limited partnerships (Ark. Code Ann. 4-47-104; 4-
47-105);
f. Limited liability companies (Ark. Code Ann. 4-32-1101);
g. Unincorporated nonprofit associations (Ark. Code Ann. 4-28-
507(a));
h. Counties (Ark. Code Ann. 14-14-501);
1. Cities (Ark. Code Ann. 6-13-102(a)); and
J. School districts (Ark. Code Ann. 14-54-101(1)).
17. Trusts are not included in the list of recognized juridical entities under
Arkansas law. Thus, the Arkansas Legislature has not manifested an intent to modify the
common law as it pertains to trusts.
18. Precedent from sister states and other federal courts support the conclusion
that trusts lack capacity to sue or be sued in their own name. See, e.g., Coverdell v. Mid-
South Farm Equip. Ass 'n, 335 F.2d 9, 12-13 (6th Cir. 1964) (holding that a trust is not an
entity that can be sued and that "the trustees would have been the proper parties defendant in
the instant matter, rather than the trust"); Fred Martin Motor Co. v. LML Techs., Inc., 2008
WL 750555, at *1 (N.D. Ohio Mar. 19,2008) (holding that the trustee is the legal owner of
the trust res and the proper party defendant in a suit involving a trust); Colo. Springs
Cablevision, Inc. v. Lively, 579 F. SUpp. 252, 254 (D. Colo. 1984) (holding that a trust is not
an entity that can be sued); Hershel Cal. Fruit Prods. Co. v. Hunt Foods, Inc., 119 F. Supp.
603,607 (N.D. Cal. 1954) ("Under both the Federal Rules of Civil Procedure and the law of
DB2! 23034855.4
7
California, the trustee, rather than the trust itself, is the proper party to a legal action."); TT.
Life Trust v. North Dakota,536 N.W.2d 709,712 (N.D. 1995) ("A trust generally is not a
separate legal entity, and cannot sue or be sued in its ornm name."); Back Acres Pure Tt'ust v.
Fahnlattdet", 443 N.w.2d 6a4,605
Q'ieb.
1989) (.'[A]s a general rule, a trust is not a legal
personality, and the trustee is the proper person to sue or be sued on behalf of such trust.").
19. "A trust is merely the description of a relationship between the legal and
equitable o\
/ners
of property." Colorado Springs Cablevisiort, 579 F. Supp. at 254. As such,
the t'ust itself cannot oum anl,thing. Boger! Tlte Lav'of Tt'usts and Ttustees,
$
1. Rather,
the trustee, as the holder of le-eal title to the trust res, is generaily the
juridical person who can
sue or be sued with respect to tust assets. 1d. at
$$
594;869; see also Yonce v. Miners Mem'l
Hosp. Ass'n, htc.,16l F. Supp. 178, 189
[M.D.
Va. 1958) ("A Trust is a fiduciary
relationship by which the trustees hold legal title to properly for the benefi.t of others, and a
suit by strangers to the tust must be brought against the trustees thereof furdividually and not
against the fictional entity.").
20. Because Defendant Morgan Stanley ABS Capital I Inc. Trust 2006-IIE3 is not
a
juridical
entrty under Arkansas law, its citizenship is irrelevant 6s1s.
Tnstead, because
DBNTC, as Trustee, not the Trust, is the proper party defendant here, its citizenship controls
for purposes of diversity.
The Trust Is a Citizen of California
21. Even if t'usts were
juridical
entities under Arkansas law, the Trust's
citizenship would be that of its trustee because DBNTC, as Trustee (not the Trust) is the
juridical person who can sue or be sued u,ith respect to tust assets. Complete diversity of
citizenship is determined by the real parties to the controversy. Associated Ins. Mgmt. Cory.
v. A*. Gen. Agency, 149 F.3d 794,796 (8thCt. 1998) (citingNavan"o Sav. Ass'nv. Lee,446
U.S. 458, 461 (1980)). Where the trustee, not the trust is the real party in interest the
DB2l 23034855.6
California, the trustee, rather than the trust itself, is the proper party to a legal action."); W
Life Trust v. North Dakota, 536 N.W.2d 709, 712 (N.D. 1995) ("A trust generally is not a
separate legal entity, and cannot sue or be sued in its OVI'l1 name. "); Back Acres Pure Trust v.
Fahnlander, 443 N.W.2d 604,605 (Neb. 1989) ("[A]s a general rule, a trust is not a legal
personality, and the trustee is the proper person to sue or be sued on behalf of such trust.").
19. "A trust is merely the description of a relationship between the legal and
equitable owners of property." Colorado Springs Cablevision, 579 F. Supp. at 254. As such,
the trust itself cannot own anything. Bogert, The Lalli' of Trusts and Trustees, 1. Rather,
the trustee, as the holder of legal title to the trust res, is generally the juridical person who can
sue or be sued with respect to trust assets. Id. at 594; 869; see also Yonce v. Miners Mem '1
Hosp. Ass 'n, Inc., 161 F. Supp. 178, 189 (W.D. Va. 1958) ("A Trust is a fiduciary
relationship by which the trustees hold legal title to property for the benefit of others, and a
suit by strangers to the trust must be brought against the trustees thereof individually and not
against the fictional entity.").
20. Because Defendant Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 is not
ajuridical entity under Arkansas law, its citizenship is irrelevant here. Instead, because
DBNTC, as Trustee, not the Trust, is the proper party defendant here, its citizenship controls
for purposes of diversity.
The Trust Is a Citizen of California
21. Even if trusts were juridical entities under Arkansas law, the Trust's
citizenship would be that of its trustee because DBNTC, as Trustee (not the Trust) is the
juridical person who can sue or be sued with respect to trust assets. Complete diversity of
citizenship is determined by the real parties to the controversy. Associated Ins. Mgmt. Corp.
v. Ark. Gen. Agency, 149 F.3d 794, 796 (8th Cir. 1998) (citing Navan'o Sav. Ass '11 v. Lee, 446
U.S. 458,461 (1980)). Where the trustee, not the trust, is the real party in interest, the
DB2/23034855.(\
8
citizenship of the trustee controls for diversity purposes. Cret+,s & Assocs., lnc.,783 F. Supp.
2d at 1069.
22. A recent case from the Eastem District of Arkansas, which addresses the
citizenship of a trust for diversity purposes, confirms that the citizenship of the trustee, not
the trust beneficiaries, determines diversity because the h-ustee is the
juridicai person who can
sue or be sued with respect to trust assets. In Beeclt v. Select Porlfolio Sen,icing, Inc.,
Plaintiff sued, among other defendants, "Wells Fargo Bank as trustee of a mortgage trust" in
Arkansas circuit court. 2010 WL 2775855 at
*1
(E.D. Ark. July 13, 2010). After Defendants
removed to the Eastern District of Arkansas, Plaintiff moved to remand, io parL on the
ground that diversity was lacking due to the presence of non-diverse trust beneficiaries. 1d.
The court rejected Plaintiff s argument, reasoning that, under the Supreme Court's holding in
Navarro, the trustee's citizenship, not that of the trust's unknown beneficiaries, is considered
for purposes of diversity:
fT]he
citizenship of unknown trust beneficiaries does not
destroy compiete diversity. The beneficiaries are not the real
parties in interest here: the complaint makes allegations against
Wells Fargo Bank as trustee, not against the beneficiaries. And
Beech claims Wells Fargo has the usual powers of a trustee
-
to
hold, manage, and dispose of the note. Wells Fargo's
citizenship, not that of the trust beneficiaries, is considered in
the Court's diversity analysis. 1d
23. Here, as in Beeclt, Plaintiffs' Complaint makes allegations against DBNTC, as
Trustee, not against unknown trust beneficiaries. Specifically, Plaintiffs contend that
DBNTC, as Trustee violated the ASFA because it purportedly availed itself of the statutory
foreclosure procedures without being "authorized to do business in Arkansas." (Compl.
fl
3.)
Although Plaintifts make a similar conclusory allegation against the Trust (id.
n r,
Plaintiffs
do not make any
factual
alTegations regarding the Trust. Rather, Piaintiffs claim that
DBNTC, as Trustee, either itself or through its attorney-in-fact: foreclosed on the subject
properfy; sold and purchased the property at public auction; entered into a contract to sel1 the
DB2/ 23034855.6
citizenship of the trustee controls for diversity purposes. Crel'vs & Assocs., Inc., 783 F. Supp.
2d at 1069.
22. A recent case from the Eastern District of Arkansas, which addresses the
citizenship of a trust for diversity purposes, confIrms that the citizenship of the trustee, not
the trust beneficiaries, determines diversity because the trustee is the juridical person who can
sue or be sued with respect to trust assets. In Beech v. Select Portfolio Servicing, Inc.,
Plaintiff sued, among other defendants, "Wells Fargo Bank as trustee of a mortgage trust" in
Arkansas circuit court. 2010 WL 2775855 at *1 (E.D. Ark. July 13,2010). After Defendants
removed to the Eastern District of Arkansas, Plaintiff moved to remand, in part, on the
ground that diversity was lacking due to the presence of non-diverse trust beneficiaries. Id.
The court rejected Plaintiff's argument, reasoning that, under the Supreme Court's holding in
Navarro, the trustee's citizenship, not that of the trust's unknown beneficiaries, is considered
for purposes of diversity:
[T]he citizenship of unknown trust benefIciaries does not
destroy complete diversity. The benefIciaries are not the real
parties in interest here: the complaint makes allegations against
Wells Fargo Bank as trustee, not against the beneficiaries. And
Beech claims Wells Fargo has the usual powers of a trustee - to
hold, manage, and dispose of the note. Wells Fargo's
citizenship, not that of the trust benefIciaries, is considered in
the Court's diversity analysis. Id.
23. Here, as in Beech, Plaintiffs' Complaint makes allegations against DBNTC, as
Trustee, not against unknown trust benefIciaries. Specifically, Plaintiffs contend that
DBNTC, as Trustee violated the ASF A because it purportedly availed itself of the statutory
foreclosure procedures without being "authorized to do business in Arkansas." (CompI.,-r 3.)
Although Plaintiffs make a similar conclusory allegation against the Trust (id. ,-r 5), Plaintiffs
do not make any factual allegations regarding the Trust. Rather, Plaintiffs claim that
DBNTC, as Trustee, either itself or through its attorney-in-fact: foreclosed on the subject
property; sold and purchased the property at public auction; entered into a contract to sell the
DB2/23034855.4
9
property to Plaintiffs; and conveyed a special rn arranty deed to Plaintiffs.
gd
fl\17-24.)
Further, in seeking cerfification of a purported defendant c1ass, Plaintiffs seek to certiff a
class of defendants who are similariy situated to DBNTC, as Trustee (not the Trust) and u'ho
rx,ould be represented by DBNTC, as Trustee (not the Trust). (Compl.
:lJT
48-61.)
Accordingly, DBNTC, as Trustee, not the Trust itself, is the real party in interest in this suit.
24. Because DBNTC, as Trustee is the real parly to the controversy in this case, its
citizenship-namely, California--controls for purposes of determining complete diversity.
See Crevvs &Assocs.,Inc.,783 F. Supp. 2dat1069.
The Mortons Should Be Realigned as Plaintiffs
25. The Mortons should be realigned as plaintiffs in this case. In deterrnining
whether complete diversity exists in cases removed from state court, the federal court has the
responsibility to align the parties according to their real interests in the litigation. Cigt of
Indianapolis v. Chase Nat'l Bank,314 U.S. 63,69-70 (1941). The alignment in the
complaint is not controll:ng. Dryden v. Dtyden,265 F.2d 870, 873 (8th Cir. 1959). In the
Eighth Circuit, the federal court has a duty to look beyond the pleadings and to arange
parties according to their sides in the dispute. Uthlersal Underwriters Ins. Co. v. Wagner,
367 F .2d 866, 870 (8th Cir. 1966). The court must inquire into "the principal purpose of the
suit" and the "primary and controlling matter in dispute." Id. Tbe question of realigament is
tested at the time the complaint is fi,led. Id. at87l
26. Plaintiffs' and the Mortons' interests are aligned with respect to the "primary
and controiiing matter in dispute": whether DBNTC, as Trustee was "authorized" to conduct
business irr 4flqansas within the meaning of the ASFA when the non-judicial foreclosure
proceeding on the property at issue was initiated it its name. (See Compl.
!|fl
1-9, 54.) As the
fomrer owners of the property at issue when non-judicial foreclosure proceedings were
initiated the Mortons share Plaintiffs' interest in invalidating the foreclosure. Moreover,
DB2/:3034855.6
10
property to Plaintiffs; and conveyed a special warranty deed to Plaintiffs. 17-24.)
Further, in seeking certification of a purported defendant class, Plaintiffs seek to certify a
class of defendants who are similarly situated to DBNTC, as Trustee (not the Trust) and who
would be represented by DBNTC, as Trustee (not the Trust). (CompI. 'if'if 48-61.)
Accordingly, DBNTC, as Trustee, not the Trust itself, is the real party in interest in this suit.
24. Because DBNTC, as Trustee is the real party to the controversy in this case, its
citizenship-namely, California--controls for purposes of determining complete diversity.
See Crevvs & Assocs., Inc., 783 F. Supp. 2d at 1069.
The Mortons Should Be Realigned as Plaintiffs
25. The Mortons should be realigned as plaintiffs in this case. In determining
whether complete diversity exists in cases removed from state court, the federal court has the
responsibility to align the parties according to their real interests in the litigation. City of
Indianapolis v. Chase Nat'/ Bank, 314 U.S. 63,69-70 (1941). The alignment in the
complaint is not controlling. Dlyden v. Dlyden, 265 F.2d 870,873 (8th Cir. 1959). In the
Eighth Circuit, the federal court has a duty to look beyond the pleadings and to arrange
parties according to their sides in the dispute. Universal Underwriters Ins. Co. v. Wagner,
367 F.2d 866, 870 (8th Cir. 1966). The court must inquire into "the principal purpose of the
suit" and the "primary and controlling matter in dispute." !d. The question of realignment is
tested at the time the complaint is filed. Id. at 871.
26. Plaintiffs' and the Mortons' interests are aligned with respect to the "primary
and controlling matter in dispute": whether DBNTC, as Trustee was "authorized" to conduct
business in Arkansas within the meaning of the ASF A when the non-judicial foreclosure
proceeding on the property at issue was initiated it its name. (See CompI. 1-9, 54.) As the
former owners of the property at issue when non-judicial foreclosure proceedings were
initiated, the Mortons share Plaintiffs' interest in invalidating the foreclosure. Moreover,
DB2/23034855.(i
10
there is no divergence of interests between Plaintiffs and the Mortons with respect to title to
the property because Piaintiffs request a declaration that the Mortons hold paramount title.
(1d
tT3s(b).)
27. There is no actual or substantial controrzersy betu,een Plaintiffs and the
Mortons. Plaintiffs make no ai-legations against the Mortons. Nor do Plaintiffs seek any
form of relief from the Mortons. Rather, Plai:rtiffs appear to have
joined
the Mortons only
because they aliegedly "have an interest which would be affected by the declaration of rights
sought in this action by virtue of their having mortgaged the Properly ." (ld.fl 12.) Under the
Arkansas Deciaratory Judguent Act when declaratory relief is sought, "all persons shall be
made parties u,ho have or claim any interest which would be affected by the declaration, and
no declaration shall prejudice the rights of persons not parties to the proceeding." Ark. Code
Anr.
$
16-111-106. While the Mortons may have an interest in this iitigation, it is an interest
that is aligned with that of Plaintiffs.
28. In sum, Plaintiffs and the Mortons are aligned with respect to the primary
dispute in this action and share the same interest in the outcome of this litigation: a
declaration that the Mortons hold superior title to the subject property. Plaintiffs neither
make any aliegations nor seek any form of relief from the Mortons. Thus, at the time the
Complaint was filed, the Mortons' interests were not adverse to, but rather aligned with
Plaintiffs' interests. Therefore, the Mortons should be realigned as plaintiffs in this action.
trn the Alternative. the Mortons Have Been Fraudulently Joined
29. In the altemative, the Court should disregard the citizenship of the Mortons in
determining diversity
jurisdiction
because they were fraudulently
joined. "fJ]oinder is
fraudulent and removal is proper when there exists no reasonable basis in fact and law
supporting a claim against the resident defendants." Wiles v. Capitol Indem. Corp.,280 F.3d
868, 871 (8th Cir. 2002). See also lowa Pub. Serv. Co. v. Med. Bow Coal Co.,556 F.2d 400,
11
DB2/ 23034855.6
there is no divergence of interests between Plaintiffs and the Mortons with respect to title to
the property because Plaintiffs request a declaration that the Mortons hold paramount title.
(Id. ~ 35(b).)
27. There is no actual or substantial controversy between Plaintiffs and the
Mortons. Plaintiffs make no allegations against the Mortons. Nor do Plaintiffs seek any
form of relief from the Mortons. Rather, Plaintiffs appear to have joined the Mortons only
because they allegedly "have an interest which would be affected by the declaration of rights
sought in this action by virtue of their having mortgaged the Property." (Id.,-r 12.) Under the
Arkansas Declaratory Judgment Act, when declaratory relief is sought, "all persons shall be
made parties who have or claim any interest which would be affected by the declaration, and
no declaration shall prejudice the rights of persons not parties to the proceeding." Ark. Code
Ann. 16-111-106. While the Mortons may have an interest in this litigation, it is an interest
that is aligned with that of Plaintiffs.
28. In sum, Plaintiffs and the Mortons are aligned with respect to the primary
dispute in this action and share the same interest in the outcome of this litigation: a
declaration that the Mortons hold superior title to the subject property. Plaintiffs neither
make any allegations nor seek any form of relief from the Mortons. Thus, at the time the
Complaint was filed, the Mortons' interests were not adverse to, but rather aligned with
Plaintiffs' interests. Therefore, the Mortons should be realigned as plaintiffs in this action.
In the Alternative, the Mortons Have Been Fraudulentlv Joined
29. In the alternative, the Court should disregard the citizenship of the Mortons in
determining diversity jurisdiction because they were fraudulently joined. "[J]oinder is
fraudulent and removal is proper when there exists no reasonable basis in fact and law
supporting a claim against the resident defendants." Wiles v. Capitol Indem. COlp., 280 F.3d
868,871 (8th Cir. 2002). See also Iowa Pub. Servo Co. v. Med. Bow Coal Co., 556 F.2d 400,
DB2! 23034855.4
11
406 (8th Cn. 1977) ("[]t is rx,eil established that if it is clear under goveming state law that
the complaint does not state a cause of action against the non-diverse defendant, the
joioder is
fraudulent and federal
jurisdiction
of the case shouid be retained."). To evaluate u,hether
joinder
u,as fraudulent for puryoses of removal, the court must determine "u'hether there is
arguably a reasonable basis for predicting that the state's lau,might impose liability based
upon the facts iu,olved." Filla v. Not"folk S. Ry. Co.,336 F.3d 806, 811 (8th Cir. 2003).
30. There is no basis for predicting that Arkansas might impose liability on the
Mortons based upon the facts alleged in the Complaint. Plaintiffs have not asserted any claim
against the Mortons, let alone one that has a reasonable basis in fact and law. Moreover,
Plaintiffs have not alleged that the Mortons engaged in any wrongdoing. (Comp1.
flfl
1-9; 25-
35.) Plaintiffs' Complaint does not seek any relief against the Mortons at all. Rather,
Plaintiffs
joined
the Mortons as defendants solely because they alleged1y "have an interest
which would be affected by the declaration of rights sought in this action by virtue of their
having mortgaged the
fproperly
at issue]." (Id.
nD.)
31. Because the facts as alleged in Plaintifis' Complaint indicate that there is no
reasonable basis for beiieving that liability might be imposed on the Mortons (the only non-
diverse Defendants) under Arkansas law, the Mortons are a fraudulently
joined party whose
citizenship should be disregarded for purposes of diversity
jurisdiction.
See Wilkinson v.
Schackelfurd, 478 F.3d 957,963-64 (Sth Cir. 2007).
The Amount in Controversv Exceeds the Jurisdictional Minimum
32. In addition to firlfiIling the complete diversity requirement, Plaintiffs'
Complaint also satisfies the amount in controversy requirement. In an action seeking
declaratory reiief, "it is u,ell established that the amount il controversy is measured by the
value of the object of the litigation." Jantes NeffK'amper Family Farm P'ship v. IBP, Inc.,
393 F.3d 828, 833 (8th Cir. 2005) (quoting Hunt v. Wash. State Apple Adver. Comm'n, 432
DB2/ 23034855.6
t2
406 (8th Cir. 1977) ("[I]t is well established that if it is clear under governing state law that
the complamt does not state a cause of action agamst the non-diverse defendant, the jomder is
fraudulent and federal jurisdiction of the case should be retamed."). To evaluate v;rhether
joinder was fraudulent for purposes of removal, the court must determine "whether there is
arguably a reasonable basis for predictmg that the state's law might impose liability based
upon the facts mvolved." Filla v. NOlfolk S. Ry. Co., 336 F.3d 806, 811 (8th Cir. 2003).
30. There is no basis for predictmg that Arkansas might impose liability on the
Mortons based upon the facts alleged m the Complamt. Plamtiffs have not asserted any claim
agamst the Mortons, let alone one that has a reasonable basis in fact and law. Moreover,
Plamtiffs have not alleged that the Mortons engaged m any wrongdomg. 1-9; 25-
35.) Plamtiffs' Complaint does not seek any relief against the Mortons at all. Rather,
Plamtiffs jomed the Mortons as defendants solely because they allegedly "have an mterest
which would be affected by the declaration of rights sought m this action by virtue of their
havmg mortgaged the [property at issue]." (Id.,-r 12.)
31. Because the facts as alleged m Plaintiffs' Complaint mdicate that there is no
reasonable basis for believmg that liability might be imposed on the Mortons (the only non-
diverse Defendants) under Arkansas law, the Mortons are a fraudulently joined party whose
citizenship should be disregarded for purposes of diversity jurisdiction. See WiR"inson v.
Schackelford, 478 F.3d 957, 963-64 (8th Cir. 2007).
The Amount in Controversy Exceeds the Jurisdictional Minimum
32. In addition to fulfilling the complete diversity requirement, Plamtiffs'
Complamt also satisfies the amount m controversy requirement. In an action seeking
declaratory relief, "it is well established that the amount in controversy is measured by the
value of the object of the litigation." James NeffKramper Family Farm P'ship v. IBP, Inc.,
393 F.3d 828,833 (8th Cir. 2005) (quoting Hunt v. Wash. State Apple Adver. Comm '11.,432
DB2/23034855.4
12
U.S. 333, 347 (1977)). In other words, the amount i:r controversy is the value of the right in
issue, vieu,ed from the piaintiff s perspective. Usety v. Anadarko Petroleum Corp.,606 F.3d
1017, 1018-19 (8th Cir. 20i0); Advance Am. Set'vicing of At*., Ittc. t,. McGinnis,526 F.3d
1170,1174 (8th Cir. 2008).
33. Plaintiffs' Complaint does not allege a specific amount in controversy.
Rather, Plaintiffs request declaratory relief to determine their rights and status with regard to
the subject property. (Compl.
lTlJ
1, 62-65.) Further, Plaintiffs seek damages based upon
DBNTC, as Trustee's alleged breach of the covenant of seisin. (Id.fln 35, 65.) In Arkansas,
damages for breach of the covenant of seisin are ordinarily measured by the grantee's
purchase price plus interest. Logan v. Moulder,l Ark. 313, 323-34 (1839). Piaintiffs
purchased the property at issue from DBNTC, as Trustee for $180,000 on March22,2010.
(,See Request for Judicial Notice in Support of Notice of Removal Ex. i.) Because the price
of the property exceeds $75,000, the requisite minimum amount in controversy for purposes
of diversity
jurisdiction
is established.
34. Therefore, pursuant to 28 United States Code Section 1332, this Court has
diversity
jurisdiction,
and DBNTC is entitled to remove to this Court based upon that
jurisdiction.
PROCED{IRAL REOTIIREMENTS AND LOCAL RIILES HAVE BEEN SATISFIED
35. A11 of the statutory requirements for removal to this Court under 28 United
States Code Section1332 and 28 United States Code Sections 1441(a) and
O)
have been
satisfied.
36. Pursuant to 28 United States Code Sectionl446(a), DBNTC has attached all
process, pleadings and orders served upon it to date as Exhibit A.
DBzl 23034855.6
13
u.s. 333, 347 (1977)). In other words, the amount in controversy is the value of the right in
issue, viewed from the plaintiff's perspective. Usery v. Anadarko Petroleum Corp., 606 F.3d
1017, 1018-19 (8th Cir. 2010); Advance Am. Servicing of Ark. , Inc. 1'. McGinnis, 526 F.3d
1170, 1174 (8th Cir. 2008).
33. Plaintiffs' Complaint does not allege a specific amount in controversy.
Rather, Plaintiffs request declaratory relief to determine their rights and status with regard to
the subject property. (CompI. '1['1[ 1, 62-65.) Further, Plaintiffs seek damages based upon
DBNTC, as Trustee's alleged breach of the covenant of seisin. (Id. '1['1[ 35,65.) In Arkansas,
damages for breach of the covenant of seisin are ordinarily measured by the grantee's
purchase price plus interest. Logan v. Moulder, 1 Ark. 313, 323-34 (1839). Plaintiffs
purchased the property at issue from DBNTC, as Trustee for $180,000 on March 22,2010.
(See Request for Judicial Notice in Support of Notice of Removal Ex. l.) Because the price
of the property exceeds $75,000, the requisite minimum amount in controversy for purposes
of diversity jurisdiction is established.
34. Therefore, pursuant to 28 United States Code Section 1332, this Court has
diversity jurisdiction, and DBNTC is entitled to remove to this Court based upon that
jurisdiction.
PROCEDURAL REQUIREMENTS AND LOCAL RULES HAVE BEEN SATISFIED
35. All of the statutory requirements for removal to this Court under 28 United
States Code Section 1332 and 28 United States Code Sections 1441(a) and (b) have been
satisfied.
36. Pursuant to 28 United States Code Section 1446(a), DBNTC has attached all
process, pleadings and orders served upon it to date as Exhibit A.
DB2/23034855.11
13
37. Pursuant to 28 United States Code Sectionl446(d), a copy of this Notice of
Removal wil1be sened upon Piaintiffs' counsel and flled u,ith the Circuit Court of Pulaski
County, Arkansas, Fifth Dirrision.
38. The consent of Morgan Stanley ABS Capital l Inc. Trust 2006-HE3 is not
required because it is not a
juridical
entity in Arkansas, First
(Jnion
Nat'l Bank,351 F,3d at
814, and because DBNTC, as Trustee, not the Trust, is the real party to the controversy,
Associated hts. Mgnt. Cotp.,14gF.3dat796.3 The consent of the Mortons is also not
required because they should be realigned as plaintiffs or, in the alternative, have been
fraudulently
joined
as defendants. See Hemker v. St. Louis Sci. Ctr.,2008 WL 2A2021A at*l
n.1 (E.D. Mo. May 8, 2008) ("Although removal generaily requires the consent of all
defendants, there is a
judicially
created exception for parties u,ho are fraudulently
joined,
because removal in those cases is based on the contention that no other proper defendant
exists." (citation omitted))
;
Palmquist v. Conseco Med. Ins. Co., 128 F. Supp. 2d 618, 620-21
(D.S.D.2000).
39. By filing this Notice of Removal, DBNTC, as Trustee does not waive any of
its afirmative defenses, including, but not limited to, its right to move to dismiss for lack of
personal jurisdiction,
improper service, improper venue, or failure to state a claim.
3
See supra note 2. In addition, the state court docket indicates that the Trust has not been
served. Thus, it need not consent to removal. See Pritchett v. Cottrell, Inc., 512 F.3d 1057,
1062 (8th Cfu. 2008) ("There must . . . 'be some timeiy frled written indication from each
served defendant' or from some person with authority to act on the defendant's behalf,
indicating that the defendant 'has actually consented' to the removal." (emphasis added)). To
the extent that its consent to removal is required, the Trust would consent.
DB2/ 23034855.6
L4
37. Pursuant to 28 United States Code Section 1446(d), a copy of this Notice of
Removal will be served upon Plaintiffs' counsel and filed with the Circuit Court of Pulaski
County, Arkansas, Fifth Division.
38. The consent of Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 is not
required because it is not a juridical entity in Arkansas, First Union Nat 'I Bank, 351 F .3d at
814, and because DBNTC, as Trustee, not the Trust, is the real party to the controversy,
Associated Ins. Mgmt. Corp., 149 F.3d at 796.
3
The consent of the Mortons is also not
required because they should be realigned as plaintiffs or, in the alternative, have been
fraudulently joined as defendants. See Hemker v. St. Louis Sci. Ctr., 2008 WL 2020210 at *1
n.1 (E.D. Mo. May 8, 2008) ("Although removal generally requires the consent of all
defendants, there is a judicially created exception for parties who are fraudulently joined,
because removal in those cases is based on the contention that no other proper defendant
exists." (citation omitted)) ; Palmquist v. Conseco Med.Ins. Co., 128 F. Supp. 2d 618,620-21
(D.S.D. 2000).
39. By filing this Notice of Removal, DBNTC, as Trustee does not waive any of
its affirmative defenses, including, but not limited to, its right to move to dismiss for lack of
personal jurisdiction, improper service, improper venue, or failure to state a claim.
3 See supra note 2. In addition, the state court docket indicates that the Trust has not been
served. Thus, it need not consent to removal. See Pritchett v. Cottrell, Inc., 512 F.3d 1057,
1062 (8th Cir. 2008) ("There must ... 'be some timely fIled written indication from each
served defendant,' or from some person with authority to act on the defendant's behalf,
indicating that the defendant 'has actually consented' to the removaL" (emphasis added)). To
the extent that its consent to removal is required, the Trust would consent.
DB2/23034855.4
14
WHEREFORE, DBNTC, as Trustee prays that the action pending against it as Case
No. 60-CV-2011-5001, in the Circuit Court of Pulaski County, Arkansas, Fifth Dii,ision, be
removed to this Court.
Dated: Ir4arch 22,2012 Respectfully submitted,
Elizabeth A. Frohlich
Qtro
lruc fice application to be
submiued)
Laya R. Kaigh
Qtro
hac vice appbcation to be
submitted)
MORGAN, LEWIS & BOCKIUS, LLP
One Markef Spear Street Tower
San Francisco, Califonria 94145
Phone: (415) 442-1000
Fax: (415) 442-1001
Email: efrohlich@morganl ewis.com
lkaigh@morganlewis. com
and
WRIGHT, LINDSEY & JENNINGS LLP
200 West Capitol Avenue, Suite 2300
Little Rock, AR 7 2201 -3699
Attonteys
for
Defendant Deutsche Bank National Ttast
Company, as trusteefor Morgan Stanley ABS Capital I
Inc. Tn.tst 2006-H834
o
See supranote2.
DBzt 230348s5.6
Phone: (501) 371
Charles T. Coleman
(8003
15
WHEREFORE. DBNTC, as Trustee prays that the action pending against it as Case
No. 60-CV-20ll-500l, in the Circuit Court of Pulaski County, Arkansas, Fifth Division, be
removed to this Court.
Dated: March 22,2012
4 See supra note 2.
DB2/23034855.4
Respectfully submitted,
Elizabeth A. Frohlich (pro hac vice application to be
submitted)
Laya R. Kaigh (pro hac vice application to be
submitted)
MORGAN, LEWIS & BOCKIUS, LLP
One Market, Spear Street Tower
San Francisco, California 94105
Phone: (415) 442-1000
Fax: (415) 442-1001
Email: efrohlich@morganlewis.com
lkaigh@morganlewis.com
and
WRIGHT, LINDSEY & JENNINGS LLP
200 West Capitol Avenue, Suite 2300
Little Rock, AR 72201-3699
Phone: (501) 371 808
(50 3

__ __ ______ __
Charles T. Coleman (8003
Attorneys for Defendant Deutsche Bank National Trust
Company, as trustee for Morgan Stanley ABS Capital I
Inc. Trust 2006-HE3
4
15
CERTIFICATE OF SERWCE
This is to certify that a copy of the forgoing Notice of Removal has been
electronically frled on this Court's CI4/ECF system and sen ed and also provided by
electronic mail and facsimile, this 22nd day of lr4arch,20L2, upon the follou,in-q:
Drake Mann
Christopher L. Travis
GILL ELROD RAGON OWEN & SIIERi\4AN,
P.A.
425 West Capitol Avenue, Suite 3801
Little Rock, AP.7220l
and
Sean F. Rommel
James C. Wyly
W1'LY-ROMMEL, PLLC
23ilMooresLane
Texarkana, TX 75503
Attorneyfor Plainffi
Paul A. Schmidt, Sr.
SCHMIDT LAW FIRM, PLC
401 V/. Pine Street
P.O. Box 564
Cabot, R-72023
Attoruel,sfsr Defendants Thomas J. Mofton and
W'annettq Y. Morton
DBz/23034855.6
16
CERTIFICATE OF SERVICE
This is to certify that a copy of the forgoing Notice of Removal has been
electronically filed on this Court's Clv1IECF system and served and also provided by
electronic mail and facsimile, this 22nd day of March, 2012, upon the following:
Drake Mann
Christopher L. Travis
GILL ELROD RAGON OWEN & SHERMAN,
P.A.
425 West Capitol Avenue, Suite 3801
Little Rock, AR 72201
and
Sean F. Rommel
James C. Wyly
WYL Y-ROMMEL, PLLC
2311 Moores Lane
Texarkana, TX 75503
Attol71ey for Plaintiffs
DB2/23034855.4
16
Paul A. Schmidt, Sr.
SCHMIDT LAW FIRM, PLC
401 W. Pine Street
P.O. Box 564
Cabot, AR 72023
Attol71eys for Defendants Thomas J. Morton and
Wannetta Y. Morton
STATE OFARKANSAS
CIRCUTI COURI
PT]LASKI COUNTY
Johnathan D. Dial and LydiaA. Dial
husband and wifeo individually, and on
behalf of similarly situated persons'
Plaintiffs,
versus
Deutsche BankNational Trust Compan5', as
Tiustee for Morgan StanIeyABS Capitat I
Inc. Trust 200GHF.3, individually, and as
representative 6f similarly sifuated persons;
Morgan StanIeyABS Capital I Inc. Trust
200Gr8.3; Wilson & Associates, P.L.L.C.;
and Thomas J. Morton and \ilannetta Y.
Morton.
FII-E !.*,'1?,r11 1E': i'l:i0
DMSIoN
B't
t'*ale Pdiashi ci.ruit c.a'l'i':
HagJl*
5001
COMPLAINT
Defendan8.
ililr ilil r lrfi I ril lllI llllllil llfi ll lfi I ll ff Il
60c\,- I 1 -500 I 601 -601 0003285s-004
JOISIRI]N}I D DINL ET RL tt DE 12 PAgCS
PULRSIfi C0 1911712fi1188:16 fl|I
CIRCUII OOI,RI
SI]MMARY OF CASE
1. This case seeks to re,medy Dzutsche na* Nationat Trust Company-s,
Morgan Stq4ley ABS Capital I Inc. Trust 2006-I{E3's, and,all'other similarly'sihrated
mortgagees' and' trustees' past and continuing violations of
{{fas's
Statutory
ForeclosureAc!whichiscodifiedatArk. CodeA::n-
$$
lS-50-10L-117
(the'statuto:5'
Foreclosure Acf).
2. Defendants Deutsche Bank National Trust Company, Morgan Stantrey
ABS Capital I Inc. Trust 2006-!IE3, and all other sr4rlarly situ4ted mortgagees and
tr-ustees violated and continue to violate the Statutory Foreciosure Act by
ttg
to be
.l
'lauthorized to do business in Arkansas," prior to availing themselves of the remedies
providd by the Statutory ForeclosmeAct
3. Because Deutsche Baok National Trust Company. Ivlorgan Stanley ABS
Capital I Inc. Trust 2006.[ffi3, and a1l other similmly situated mortgagees,ind tnrstres
cc05$
.EXHIBIT
,.
STATE OF ARKANSAS
CIRCUIT COURT
PULASKI COUNTY
Johnathan D. Dial and Lydia A. Dial, IT
husband and wife, individually, and on II
behalf of similarly situated persons,
Plaintiffs,
versus
.
Deutsche Bank National Trust Company, as
Trustee for Morgan Stanley ABS Capital I
Inc. Trust 2006-HE3, individually, and as
representative of similarly situated persons;
Morgan Stanley ABS Capital I Inc. Trust
2006-HE3; Wilson & Associates, P.L.L.C.;
and Thomas J. Morton and Wannetta Y.
.
Defendants.
fILtu 10l17l11 16: 13:30
erao. Pulaski Circuit Cler,
COMPLAThT'f
1111111111111111111111111111111111
I.
60CV-11-5001 601-60100032859-004
JOHNRiHAN 0 DIAL ET RLV DE 12 Pages
PULASKI CO 10/17/2011 08:16 RM
CIRCUIT COURT CC05$
SUMMARY OF CASE
1. 1bis case seeks to remedy Deutsche Bank N ati:onal Trust Company's,
Morgan Stanley ABS Capital I Inc. Trust 2006-HE3's, and all other similarly situated
mortgagees' and trustees' past and continuing violations of Arkansas's Statutory
Foreclosure Act, which is codified at Ark. Code Ann. 18-50-101- 117 (the ''Statutory
Foreclosure Acf').
2. Defendants Deutsche Bank National Trust Company, Morgan Stanley
ABS Capital I Inc. Trust 2006-HE3, and a1lother similarly situated mortgagees and
trustees violated and continue to violate the Statutory Foreclosure Act by failing to be
"authorized to do business in Arkansas," prior to availing themselves of the remedies
provided by the Statutory Foreclosure Act.
Because Deutsche Bank National Trust Company, Morgan Stanley ABS
Capital I Inc. Trust 2006':'"HE3, and all other similarly situated mortgagees and trustees
EXHIBIT
I A
failed to comply with the require,qe,nts of the Statutory Foreclostrre Act' all pqported
I Trust ComPanY, Morgan
foreclosr:re sales are invali{ and Deutsche Bank Nationa
Stanley ABS Capital I lnc. Trust 2006-HE3, and all other similarly situated mortgagees
and trustees did not acquire title to the real property in which they puqported to foreclose
4. Any purchaser of real property from Deutsche Bank National Trust
Company, Mgrgan Stanley ABS Capital I Inc. Trust 2006-IIE3, or any other similarly
situated mortgagee or trustec, consequently, did not acquire tille to that real
Pro?ert}:
5. Plaintiffs, Johnafhan D. DiaI and Lydia A. Dial, are reside,lrts of Pulaski
: whic,h would be affected by the declaration of
County, Arkansas; they have an interest which would be af
rights sougbt in this action by virtue of their haviag purchased I-ot 26, Block 17,
Overbook Addition to the City of Little Rock, Arkansas, more commonly knouTr as 52
Dove Creek Circle, North Little Rock, Arkansas; from Defendant Deutsche Bank
National Tnist Company, which claimed title by having availed itself,of the'procedures of
s not authorized to do business in Arkansas.
the Statutory Foreclosme Actwhen it wa
6. Defendant Deutsche Bank National Trust Company is a national
Yting
association; it is not authorized to do business in this state.
7. Morgan Stanley ABS Capital I Inc. Trust'2006-IIE3 is a foreigo trus! it is
oot authorized to do business in this state; it has an interest which woqld be affected by
thre declaration of rights sought in this action-
Counry among whose members are included attomeys who are active licensed me,mbers
failed to comply with the requirements of the Statutory Foreclosure Act, all purported
foreclosure sales are invalid, and Deutsche Bank National Trust Company, Morgan
Stanley ABS Capital I Inc. Trust 2006-HE3, and all other similarly situated mortgagees
and trustees did not acquire title to the real property in which they purported to foreclose
their mortgage interest
4. Any purchaser of real property from Deutsche Bank National Trust
Company, Morgan Stanley ABS Capital I Inc. Trust 2006-HE3, or any other similarly
situated mortgagee or trustee, consequently, did not acquire title to that real property.
THE PARTIES, JURISDICTION, AND VEl\TUE
5. Plaintiffs, Johnathan D. Dial and Lydia A. Dial, are residents of Pulaski
County, Arkansas; they have an interest which would be affected by the declaration of
rights sought in this action by virtue of their having purchased Lot 26, Block 17,
Overbook Addition to the City of Little Rock, Arkansas, more commonly known as 52
Dove Creek Circle, North Little Rock, Arkansas, from Defendant Deutsche Bank
National Trust Company, which claimed title by having availed itself of the procedures of
the Statutory Foreclosure Act when it was not authorized to do business in Arkansas.
6. . Defendant Deutsche Bank National Trust Company is a natioIUilbaIiking
association; it is not authorized to do business in this state.
7. Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 isa foreign trust; it is
not authorized to dobusmess in this state; it has an interest which would be affected by
the declaration of rights sought in this action. .
8. Wilson & Associates, P.L.L.C., is an Arkansas law firm based in Pulaski
County among whose members are included attorneys who are active licensed members
of the Bar of thg Supre,m.e Court of the State of Arkansas; Wilson & Associates has
ld be affected bv the declaration of rights sought in this action by
interests which would be affected by the declaration of rig!
virtue of its having served as attomey-in-fact in the relevant transactions.
9: Thomas J. Morton and Wannetta Y. Morton have aa interest which would
be affected by the declaration of rights sought in this acdon by virtue of theii having
mortgaged l-at26, Block 17, Overbook Addition to the City of Little Rock, Pulaski
County, Arkansas, more cornm.only known as 52 Dove Creek Circle, Norlh Little Roch
10. This Court has personal
jurisdiction
over Defendants pursuaat to Ark
i 1. Ve,lrue is proper in this Court pursuant to Ark. Code Ann.
$
16-55-213.
OPERATTVE LAW
,],
12. The Statutoryr Foreclosure Act states that no '!erson" firq company,
association, fiduciary, or partrership, either domestic or foreign, shall
avail the,mselves sf
the procedrnes under this chapter unless authorized to do business in this state.'? Ark.
CodeAon
$
18-50-117.
INTRODUCTION
Plainfi fr Class Allegations
13. The Plaintiffs bring this state-wide class action on behalf of thqm-selves
and all othe,r persons sirnilmly situated in relation to Deutsche Bank National Trtrg
Company, Morgqo Stanley ABS Capital I Inc. Trust 200q-HE3, and all olher si::filadY
situated mortgagees and trustees
of the Bar of the Supreme Court of the State of Arkansas; ~ i l s o n & Associates has
interests which would be affected by the declaration of rights sought in this action by
virtue of its having served as attorney-in-fact in the relevant transactions.
9. Thomas J. Morton and Wannetta Y. Morton have an interest which would
be affected by the declaration of rights sought in this action by virtue of their having
mortgaged Lot 26, Block 17, Overbook Addition to the City of Little Rock, Pulaski
County, Arkansas, more commonly known as 52 Dove Creek Circle, North Little Rock,
Arkansas; they are individuals whose whereabouts are presently unknown.
10. This Court has personal jurisdiction over Defendants pursuant to Ark.
Code Ann. 16-13-201.
11. Venue is proper in this Court: pursuant to Ark. Code Ann. 16-55-213.
OPERATIVE LAW
12. The Statutory Foreclosure Act states that no "person, :finn, company,
association, fiduciary, or partnership, either domestic or foreign, shall avail themselves of
the procedures under this chapter unless authorized to do business in this state. " Ark.
Code Ann. 18-50-117.
INTRODUCTION
Plaintiff Class Allegations
13. The Plaintiffs bring this state-wide class action on behalf of themselves
and all other persons similarly situated in relation to Deutsche Bank National Trilst
Company, Morgan Stanley ABS Capital I Inc. Trust 2006-HE3, and all other similarly
situated mortgagees and trustees.
14. The proposd class (the Clas$ is defined as follows:
A11 persons who purchased real property that had been. the subject of a sale
prrportedly made pr:rsuant to the procedures under Chapter 50 of Title 18 of the
Arkanss5 Code by a mortgagee or trustee when the mortgagee or trustee was not
authorized to do business in the State of Arkansas.
,
Excluded from the class are the following iodividuals and./or entities:
a. Any and ail federal, statg or local governments, including but oot limited to
thek deparkne,n! agencies, divisions, bureaus, boards, sections, groups,
counsels, and/or zubdivisions
;
b. Individuals or entities, if any, who timely opt out of this proceeding using the
correct protocol for opting out;
c. Individuals or entities, if any, who have previously settled or compro:nised
claims(s) as identifiedherein forthe class; and
d. Any curre,ntly sitting circuit
judge
and/or persotr within the third degree of
consanguinity to any circuit
judge.
15. The plainffi
will
fairiy and adequately proteqt the interest of t}re class;
and are adequate rqrresentatives of the class of persons defined herein The plalntiffs are
interested in the outcome of this lawzuit and understand the importance of adequately
represe,nting evry me,mber of the classes described herein.
Numerosity
16.' On
information
and belief Deutsche Bank National Trus-t Company has
av,ailed itself of the procedures under Chapter 50 of Title 18 when it *as not:authoriz{
to do business
in
this state on more than two hrmdred and trrenty oc*io-o" in Pulaski
County alone.
17. As a resul! the parties are so mtrDerous that it is impracticable to bring ali
before the Court within a reasonable time, and a class action is therefore superior tb other
methods for the fair and efficient adjudication of this controversy
14. The proposed class (the Class) is defined as follows:
All persons who purchased real property that had been the subject of a sale
purportedly made pursuant to the procedures under Chapter 50 of Title 18 of the
Arkansas Code by a mortgagee or trustee when the mortgagee or trustee was not
authorized to do business in the State of Arkansas.
Excluded from the class are the following individuals and/or entities:
a. Any and all federal,state, or local governments, including but not limited to
their department, agencies, divisions, bureaus, boards, sections, groups,
counsels, and/or subdivisions;
b. Individuals or entities, if any, who timely opt out of this proceeding using the
correct protocol for opting out;
c. Individuals or entities, if any, who have previously settled or compromised
claims( s) as identified herein for the class; and
d. Any currently sitting circuit judge andlor person within the third degree of
consanguinity to any circuit judge.
15. The plaintiffs will fairly and adequately protect the interest of the class,
and are adequate. representatives of the class of persons defined herein. The plaintiffs are
interested in the outcome of this lawsuit and understand the importance of adequately
representing every member of the classes described herein.
Numerosity
16. On information and belief, Deutsche Bank National Trust Company has
availed itself of the procedures under Chapter 50 of Title 18 when it was not authorized
to do business in this state on more than two hundred and twenty occasions in Pulaski
County alone.
17. As a result, the parties are so numerous that it is impracticable to bring all
before the Court within a reasonable time, and a class action is therefore superior to other
methods for the wand efficient adjudication of this controversy.
Commomlity
18. There are common questioas of law and fact affecting tbe members of the
c1ass. Such common questions predominate over any questions affecting only individual
class menrbers.
19- These questions includg but me not limited to:
a. Whether Deutsche Bank National Trust Company violated Ark Code
b. Whether Morgan Stanley ABS Capital I Inc, Trust 2006-IIE3 r,iolated
Ark. CodeAlrn.
$
18-50-118;
c. Whether Deutsche Bank as Trustee violated Ark. Code
4sn.
$
18-50-
i 18;
hether ![ilson & Associates violated Ark. Code Ann-
$,
I8-5G118;
d-
e. \Vhether Plaintiffs and the Class are entitled todeclaratorry relief;
f. Whether Defendants breached contracts of sale tb the Plaintiffs and the
Class;
g. WletU9r Plaintiffs and the Class are entitled to injrmctiVe relief;
:
h, Y&ethr Plaintiffs and the Class are entitled to specific perfon:nance;
and
i. Whether Plaintiffs and the Class are entitled to attorneys fees'and
costs-
Typicality
2A: Chims of the named Plaintiffs me
[pical
of the claims of other members
of the class in that they all arise from Dzutsche Bank National Trust CompffiY's, Morgan
Commonality
18. There are common questions oflaw and fact affecting the members of the
class. Such common questions predominate over any questions affecting only individual
class members.
19. These questions include, but are not limited to:
a. Whether Deutsche Bank National Trust Company violated Ark. Code
Ann. 18-50-118;
b. Whether Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 violated
Ark. Code Ann. 18-50-118;
c. Whether Deutsche Bank as Trustee violated Ark. Code Ann. 18-50-
118;
d. Whether Wilson& Associates violated Ark. Code Ann. 18-50-118;
e. Whether Plaintiffs and the Class are entitled to declaratory relief;
Whether Defendants breached contracts of sale to the Plaintiffs and the
Class;
g. Whether Plaintiffs and the Class are entitled to injunctive relief;
h; Whether Plaintiffs and the Class are entitled to specific performance;
and
1. Whether Plaintiffs and the Class are entitled to attorneys fees and
costs.
Typicality
20. Claims of the named Plaintiffs are typical of the claims of other members
of the class in that they all arise from Deutsche Bank National Trust Company's, Morgan
Stanley ABS Capital I Inc. Trust 2006-ID3's, and all other similarly situated
mortgagees' and trustees' normal business practice of utitrizing the Stahrtory Foreclosure
Act's procedures whe,n Deutsche Bark National Trust Company, Morgan Stanley ABS
rrtgagees and trustees were
Capital I Inc. Trust 2006-HE3, or other similarly situated mt
not authorized to do business in the state.
Adequacy o f Representation
21. Plaintiffs will fairiy and adequately protect the interests,of
'the
Class.
,
Plaintiffs? rnterests do not conflict wrth the interests of the Classmenrbers. Furthermore,
Plaintiffs have retained competent counsel experienced in class action litigation.
Plaintiffs' counset will fairly and adequately protect and represent the inlerests of the
Class.
22. In addition, Deutsche Bank National Trust Company Deutsche Bank as
Trustee have acted on grounds that apply generally to the class, so that
final injnnctive
relief or corresponding declaratory relief is appropriate respecting the Class as a whole.
23. In addition, questions of law or fact
gornmotr
to the C1ass me,mbers
predo4inate over any questions atrecting only individual men$ers, and that a class
actioa is superior to other available methods for fairly and efficiently adjudicating the
25. On January 23, 2006, Thomas J. Morton and Wannetta Y. Morton
executed and delivered a mortgage, recorded on February 17,2W6 as Instnrme,lrt No.
:
2006012916 in the real estate records of Pulaski County, Arkansas, to I,ot 26,Block T7,
Stanley ABS Capital I Inc. Trust 2006-HE3's, and all other similarly situated
mortgagees' and trustees' normal business practice of utilizing the Statutory Foreclosure
Act's procedures when Deutsche Bank National Trust Company, Morgan Stanley ABS
Capital I Inc. Trust 2006-HE3, or other similarly situated mortgagees and trustees were
not authorized to do business in the state.
Adequacy of Representation
21. Plaintiffs will fairly and adequately protect the interests of the Class.
Plaintiffs' interests do not conflict with the interests of the Class members. Furthermore,
Plaintiffs have retained competent counsel experienced in class action litigation.
Plaintiffs' counsel will fairly and adequately protect and represent the interests of the
Class.
22. In addition, Deutsche Bank National Trust Company, Deutsche Bank as
Trustee have acted on grounds that apply generally to the class, sothatfinal injunctive
relief or Corresponding declaratory relief is appropriate respecting the Class as a whole.
23. In addition, questions of law or fact common to the Class members
predominate over any questions affecting only individual members, and that adass
action is superior to other available methods fot fairly and efficientiyadjudicating the
controversy.
24. Jurisdiction and venue are proper in Pulaski County, Arkansas.
FACTS
25. On January 23, 2006, Thomas J. Morton and Wannetta Y. Morton
executed and delivered a mortgage, recorded on February 17,2006, as Instruinent No.
2006012916 in the real estate records of Pulaski County, Arkansas, to Lot 26, Block 17,
Overbook Addition to the City of Little Rock, Pulaski County, Arkansas (the "Property").
ExbibitA.
26. In January 2010, Wilson & Associates, P.L.L.C., was a law finn among
whose members was included Matthew Smith, Esquire, an attorney who was an active
licensed member of the Bar of the Supreme Court of the State of Arkansas.
27. On January 12, 2010, Wilson & Associates, P.L.L.C., acting as attorney-
in-fact for Defendant Deutsche Bank National Trust Company, as Trustee for Defendant
Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 ("Deutsche Bank as Trustee"),
proceeded to sell the Property at public auction, pursuant to Arkansas's Statutory
Foreclosure Act (the "Auction").
28. At the Auction, the Property was purportedly sold to Deutsche Bank as
Trustee.
29. Thereafter, Wilson & Associates, P.L.L.C. p r e p ~ e d a Mortgagee's Deed
purportedly granting, selling, aIidconveying the Property to Deutsche Bank as Trustee.
The Mortgagee's Deed was filed and recorded in the real estate records of Pulaski
County, Arkansas, on January22, 2010. Exhibit B.
30. On January 22,2010 Morgan Stanley ABS Capital I Inc. Trust 2006-HE3
was not "authorized to do business in this state," as that phrase is used in.Ark. Code Ann.
18-50-117, and, therefore, Morgan Stanley ABS Capital I Inc. Trust 2006-HE3could
not avail itself of the procedures of Statutory Foreclosure Act.
31. On January 22, 2010, Defendant Deutsche Bank National Trust Company
and Deutsche Bank as Trustee were not "authorized to do business in this state," as that
phrase is used in Ark. Code Ann. 18-50-11 7, and, therefore, neither Defendant
Deutsche Bank National Trust Company nor Deutsche Bank as Trusteq could,avail itself
of the procedures of Statutory Foreclosure Act.
tuction failed to eff operty under the Statutory
32. The Auction failed to effect a sale of the Pr
Foreclosure Act.
33. In March 2010, Deutsche Bank as Trustee entered a contract to sell the
Property to the plaintift. The plaintiffs paid Deutsche Bank as Tnrstee the purchase
price and did all other acts required under the contract.
34. On or about March 22, 2OlA, Deutsche Bank as Trustee executed and
delivered to Piaintiffs Jonathan D. Dial and Lydia A. Dial a Special Warranty Deed
purportedly conveying fee simple title to the Properly, and Deutsche Bank as Trustee
bound itself to warrant and defend the title to the Property. Exhibit C. A11 terms and
conditions of the contract merged into the Special Warranty Deed by operation of law.
35. The March 22,2010 Special Warranty Deed failed to effect a trnsfer bf
fee simple title to the Property because Deutsche Bank as
Jruslee
had not acquired any
36.
COLiNT ONE
-
DECLARATORY JUDGMENT
Plaintiffs ineorporate into this Count all preceding paragraphs of
$is
complaint.
37. The Arkansas Declaratory Judgments Act is re,medial; its purpose is to
settle
and
to afford relief &om uncertainty and insecruity with respect to rigfots, stritus,
and other legal relations; it is to be liberally construed and administered. Ark Code Ann.
Deutsche Bank National Trust Company nor Deutsche Bank as Trustee could avail itself
of the procedures of Statutory Foreclosure Act.
32. The Auction failed to effect a sale of the Property under the Statutory
Foreclosure Act.
33. In March 2010, Deutsche Bank as Trustee entered a contract to sell the
Property to the plaintiffs. The plaintiffs paid Deutsche Bank as Trustee the purchase
price and did an other acts required under the contract.
34. On or about March 22, 2010, Deutsche Bank as Trustee executed and
delivered to Plaintiffs Jonathan D. Dial and Lydia A. Dial a Special Warranty Deed
purportedly conveying fee simple title to the Property, and Deutsche Bank as Trustee
bound itself to warrant and defend the title to the Property. Exhibit C. All terms and
conditions of the contract merged into the Special Warranty Deed by operation of law.
35. The March 22, 2010 Special Warranty Deed failed to effect a1ransfer of
fee simple title to the Property because Deutsche Bank as Trustee had not acqurred any
title to transfer.
COUNTONE-DECLARATORYnlDGMrnNT
36. Plaintiffs incorporate into this Count an preceding paragraphs of this
complaint.
37. The Arkansas Declaratory Judgments Act is remedial; its purpose is to
settle and to afford relief from uncertainty and insecurity with respect to rights, status,
and other legal relations; it is to be liberally construed and administered. Ark. Code Ann.
16-11-102.
38. Courts of record have the power to declare rigbts, status, and other legal
relations; the declaration may be affirmative or negative in fonq and effect and
declarations shall have the force and effect of a final
judgment
or decree. Ark. Code A:rn.
$
16-i11-103.
39. Any person interested under a deed, written contacl or othsr writings
constituting a co-nlzct or whose rights or other legal relations me affected by a statute or
contract may have determined any question of construction or validity arising under the
instrumeng statute, or contract and obtain a deciaration of rights or otlrcr legal relations
thereunder. Ark Code Ann-
$
16-111-104
4A. Plaintift seek a declaration tha! having faild to obtain a certificate from
the Arkansas Secretary of State, or otherwise failing to be authoizd tn do business in
this state, neither Deutsche Bank National Trust Company nor Deritsche Baq& as Trustee
was qrylified to do business in this state and, thereforg, nerthq Deutsche Bank National
Tnrst Compary nor Deutsche Bank as Trustee could lawfully avail itself of the Stattrtory
ForeclosurerAet's procedures; therefore, Dzutsche Bank Nationat Trust Company and
Deutsche Bank as Truslee failed to foreclose Thomas J. Morton and Wannetta Y
Morton's iaterest in the Property at the Auction; and Deutsche Bank Nationai Trust
Company andDeutsche Bmk as Trustee failed to convey fee simple title to tbe Propqfy
:
when they executed and delivered the Special Warr"anty Deed to Plaintiffs.
Or. In addition to the foregoing declaration, Plaintitrs reserye the'rigfut to
apply for firtherrelief based on a declaratoryjudgment or decreeherein-
38. Courts of record have the power to declare rights, status, and other legal
relations; the declaration may be affirmative or negative in form and effect and
declarations shall have the force and effect of a final judgment or decree. Ark. Code A.nn.
16-111-103.
39. Any person interested under a deed, written contract, or other writings
constituting a contract or whose rights or other legal relations are affected by a statute or
contract may have determined any question of construction or validity arising under the
instrument, statute, or contract and obtain a declaration of rights or other legal relations
thereunder. Ark. Code Ann. 16-111-104.
40. Plaintiffs seek a declaration that, having failed to obtain a certificate from
the Arkansas Secretary of State, or otherwise failing to be authorized to do business in
this state, neither Deutsche Bank National Trust Company nor Deutsche Bank as Trustee
was qualified to do business in this state and, therefore, neither Deutsche Bank National
Trust Company nor Deutsche Bank as Trustee could lawfully avail itselfof the Statutory .
. Foreclosure Act's procedures; therefore, Deutsche Bank National Trust Company and
Deutsche Bank: as Trustee failed to foreclose Thomas J. Morton and Wannetta Y.
Morton's interest in the Property at the Auction; and Deutsche Bank Nati6na1 Trust
Company and Deutsche Bank as Trustee failed to convey fee simple title to the Property
when they executed and delivered the Special Warranty Deed to Plaintiffs.
41. . In addition to the foregoing declaration, Plaintiffs reserve the right to
apply for finther relief based on a declaratory judgment or decree herein.
COINT TWO
_
BREACH OF CONTRACT
42. Plaintiffs incorporate into this Count all preceding paragraphs of this
complaint.
43. Plahtiffs and Deutsche Bank as Trustee entered a cootracq wtich was
merged into the Special Warranfy Deed.
44. The contract and the Speciat Wa:ranty Deed required Deutsche Bank as
Trustee to convey fee simple title to the Property
45. The plaintitrs paid Deutsche Bank as Trustee'th" p*"h*e price for the
46. Deutsche Bank as Trustee failed to convey simple title to the Property.
47. Deutsche lank as Trustee breached its contact and the Speciat Warranty
Deed rn'ith the plaintiffs
48- The plaintiffs are entitled to a reasonable attomey's fee, pusuant to Ark.
Code Ann.
$
16-22-308, assessed by the Court and collected as costs.
RELIEF REQUESTED
:
49. Plaintift, on behalf of the,mselves and all Class me,mbers, de,m:nd
judgment
be entered against Defendant and that the Court grant the following:
a A
jury
trial of atl issues triable by rieht by a
jury
b. An order certifi,ing the Class and appointing
ptaintitrs
and theif
unsel to represent the Class;
c. fudgme.lrt against Defendant for Plaintiffs and the Class's asserted
COUNT TWO - BREACH OF CONTRACT
42. Plaintiffs incorporate into this Count all preceding paragraphs 'Of this
complaint.
43. Plaintiffs and Deutsche Bank as Trustee entered a contract, which was
merged into the Special Warranty Deed.
44. The contract and the Special Warranty Deed required Deutsche Bank as
Trustee to convey fee simple title to the Property.
45. The plaintiffs paid Deutsche Bank as Trustee the purchase price for the
Property, as required under the contract and the Special Warranty Deed.
46. Deutsche Bank as Trustee failed to convey simple title to the Property.
47. Deutsche Bank as Trustee breached its contract and the Special Warranty
Deed with the plaintiffs.
48. The plaintiffs are entitled to a reasonable attorney's fee, pursuant to Ark.
Code Ann. 16-22-308, assessed by the Court and collected as costs.
RELIEF REQUESTED
49. Plaintiffs, on behalf of themselves . and all Class members, . demand
judgment be entered against Defendant and that the Court grant the following:
a A jury trial of all issues triable by right by a jury;
b. An order certifying the Class and appointing Plaintiffs and their
counsel to represent the Class;
c; Judgment against Defendant for Plaintiff's and the Class's asserted
causes of action;
d. Preliminary injunctive relief prohibiting Defendants from taking
action
to deprive Plaintiffs of possession of the Properfy;
e. Positive injunctive reiief compelling Defendants to take all steps
necessary to effect deiivery of fee simple tifle to the Property to
PIaintiffs;
Specific performaace of the contract and the Special Waqfdnfy Deed;
An award of reasonable attorneys' fees and other litigation costs
Any and a1l other relief to which the Plaindff and the Class may be
entitled.
Respectfully submitted,
Gu-L ErR.oD RAGoN OWEN & SrmnrraaN; P.A.
425 West Capitol Avenue, Suite 3801
Little Rock, Arkansas 72201
Cniis,topnq L. Tryyis,
T-tT
Bar No 97A93
and
:,
Sean F. Rommel
James C. Wyly
Arkansas BarNo.90158
jwyiy@wylyrommel.com
WYLY-ROMMEL, PLLC
2311 Moores Lane
Texarkana, Texas 75503
(903
)
3 3+8646
(IelePhone)
(E01) 376-3800
[danni Arkansas Bar No. 87108
d. Preliminary injunctive relief prohibiting Defendants from taking action
to deprive Plaintiffs of possession of the Property;
e. Positive injunctive relief compelling Defendants to take all steps
necessary to effect delivery of fee simple title to the Property to
Plaintiffs;
f. Specific performance of the contract and the Special Warranty Deed;
g. An award of reasonable attorneys' fees and other litigation costs
reasonably incurred; and
h. Any and all other relief to which the Plaintiff and the Class may be
entitled.
Respectfully submitted.
GILL ELROD RAGON OWEN & SHERMAN, P.A.
425 West Capitol Avenue, Suite 3801
Little Rock, Arkansas 7220 I
(501) 376-3800

IfrakeMallIl:AIansas Bar No. 871 08
Christopher L. Travis, Arkansas Bar No. 97093
and
Sean F. Rommel
Arkansas Bar No. 94158
srommel@WYlyrommel.com.
James C. Wyly
Arkansas Bar No. 90158
jwyly@wylyrommetcom

2311 Moores Lane
Texarkana, Texas 75503
(903) 334-8646 (Telephone)
(903) 334-8645 (Fax) ..
COVER SHE'ET
STATE OF ARKANSAS
CIRCUTT COURT: CTVIL
The civil reportirg form and the information contained hereia shall not be admissible as evide,nce in any cor:rt proceeding or
fPlace
or
suppleme,nt the
fillng
and sen,ice of pleadings, orders, or other papers as reguired by law or Supreme Cor:rt Rule. This form is
resuired oursuant to Administrative Order ].ir:ober 8. Instructions are located on the back of the forn
.
Couaty:
Judge:
(;nriQQex
Division:
Plaiotiff Johnathan D. Dial and Lydia A. Dial, husband and
Wife, indiwidually, et al
Auornry Providing hformation-Drake Mann
Elptaintig
EDefendant GILLELRoDRAGoN
425'tl. Capitol Suite 3801
Little Rock, !ts 72201
(501)
376-3800
EILINGII\TORI\&{TION
/
b+^
District
-
DocketNumbo 66'ffi
5
FilingDate:
ro[rf
lrr
Defendant Deutsche BaokNational Trust Co$pany as Trustee
2006-H3, et at
Litigm! if Pro Se:
Type of Case:
Tors
E Onn Neelisence: MotorVehicle
E rNoi Nelliience: other
tr reri
suir-uio
E
Gn)
r.urra
trl n'cl Maloractice
tr iPri
Pro&rcts Liability
EI
top)
otno
Contracts
E
osl
Insurance
E rool DebtOoenAocouot
tr
b$
Peut PromissoryNote
El iEO
Ftrrploynreot
IXI
tOCl
OtherBreachofwarrantv
JuryTrialRequested: EI Yes EI No
Mbcellaneous
E
fcot'Coademnation
tr
fnD
Replevin
tr
fOff
Declaratory Judgme, t
tr
Cuol
UnlaY/fulDetainer
tr
Ol-f
Incorporation
fl
Ceri
Ebction
tr
AO
ForeignJudgment
E mrn wat
E
teal
a,l*.ir*ti*epe"a
tr
tcff
ProperryForfeiture
tr
CnPl
Re,raove Disabilities
EI
CNcl
Name cbange
E
ior,o
oo."
Equity
tr
tr
tr
u
u
(FC) Foreclosure
(QT)
Quiet
Title
(II) Injunction
(PT) Partition
(OT) Other
Manner of Filing: EI origira E n"-op* E r.*tr."
EI R"m*to. FederaUBankruprcy Court
DispositionDate:
----
tr BenohTrial E N*fti"t EI ilryftut
jlrdgmentTlpe:
U rpl DefrultJudpment
tr
isn
s,mmaryJridgment
EI
fcn
ConsentJudgment
tr
ol
rriatJudgpent
E ron o&erJudeme,llt
tr rPCf Pedtion Cr*t"a
tr
iPPi
PetitionDcnied
tr
Corl
Decree ofForeclosure
JudgmentFor:
Epui"tir E o"t*arot
Disnissal Tvoe:
tr
fOW
fiii*-;"sea with Prejudice
tr
fOUf
Dismissed without Prejudice
Other:
tr
Cfnl
Transfeired o Another Jurisdiction
tr
fngl
Removedto Barkrytc), Court
EI m,n Removed to Federal Coun
tr (AR) tubitratioo
JudgmeatAmouat $
Clerk's Sig[atJre
AOC23 1041
625Marshall Steet
Litle.Rock, AR 72201
E soa
Date
COVER SHEET tt
STATE OF ARKANSAS
CIRCUIT COURT: CIVIL
The civil reporting form and the information contained herein shall not be admissible as evidence in any court proceeding or replace or
supplement the filing and service of pleadings, orders, or other papers as required by law or Supreme Court Rule. This form is
required pursuant to Administrative Order Number 8.. Instructions are located on the back of the form.
County: Pulaski
Judge:
FILING INFORMATION

District:
Division:
Docket Number. CIV- \ \ =sci c, \
Filing Date: \ v l \ $\ \\
Plaintiff: Johnathan D. Dial and Lydia A. Dial, husband and
Wife, individually, et al
Defendant: Deutsche Bank National Trust Company as Trustee
For Morgan Stanley ABS Capital I Inc. Trust
2006-H3, et al
Attorney Providing Information-Drake Mann
[81 Plaintiff 0 Defendant GILL ELROD RAGON
425 W. Capitol., Suite 3801
Little Rock, AR 7220 I
(501) 376-3800
Litigant, if ProSe:
Type of Case:
Torts
o (NM) Negligence: Motor Vehicle
o (NO) Negligence: Other
o (BF) Bad Faith
o (FR) Fraud
Equity Miscellaneous
D (CD) Condemnation
D (RE) Replevin
D (DJ) Declaratory Judgment
D (UD) Unlawful Detainer
o (MP) Malpractice
D(pL) Products Liability
o (OD) Other
D (FC) Foreclosure
D CQT) Quiet Title
D (IJ) Injunction
D (PT) Partition
D (OT) Other _____ _
D (IN) lncorporation
D (EL) Election
Contracts .
o (IS) Insurance
o (DO) Debt Open Account
. 0 (PN) Debt Promissory Note
o (EM) Employment
[g] (OC) Other Breach of warranty
Jury Trial Requested: [8] Yes D No Manner of Filing:
DlSPOsmON INFORMATION
D (FJ) Foreign Judgment
D (WT) Writs
o (AA) Administrati--....,-v-e App-ea1
o (CF) Property Forfeiture .
o (RD) Remove Disabilities
D (NC) Name Change .
o (OM) Other
[8] Original DRe-openD Transfer
D . Retmn from Federa1lBankruptcy Court
Disposition Date: D Bench Trial 0 Non Trial D Jury Trial
Judgmeut Type:
o (DJ) Default Judgment
o (SJ) Summary Judgment
o (CJ)Consent Judgment
o (TJ) Trial Judgment
o (OJ) Other Judgment
o (pG) Petition Granted
o (PD) Petition Denied
o .(DF) Decree of Foreclosure
Judgment For:
Dplaintiff D Defendant
Clerk's Signature
AOC23 10-01
62S Marshall Street
littleRock, AR.72201
Dismissal Type:
D (DW) Dismissed with Prejudice
D (DN) Dismissed without Prejudice
DBoth Judgment Amount: $
Date
Other:
D(TR) Transferred to Another Jurisdiction
o (RB) Removed to. Bankruptcy Court
o (RF) Removed to Federal Court
o (AR) Arbitration
STAIE OFARKANSAS
CIRCUTT COT]RT
PULASKI COUNTY
Jobnathan D. Dial and LydiaA. Dial'
husband and wifeo indirddually, and on
behalf of similarly situated persons,
Ptainffis,
versus
Deutsche Bank National Trust Company, as
Trustee for I\{organ StanleyABS Capital I
Inc. Trust 200GHE3; Morgan StanIeyABS
Capital I Ine. Trust 200GIrF3; and Thomas
J. Morton and$/annettaY Morton.
F:L.E
Larrt
Cffiti
Defendants.
Pursuant to Ark R. Civ. P. 41, Johnathan D- Dial and Lydia A. Dial, husband and wife,
individually, and on behalf of similarly situated persons, apply for an order dismissing without
prejudice tleir action against Defendant Wilson & Associates, PLIC; the complaint has never
bee,n served.
' ':
Respectfully submiJted, :
GnrErnoo RacoN Owrr.r & SrmnrraeN, P-A;
425 WestCapitol Avenue, Suite 3801
urti t ttll ulll uu illl lllll llll lllllllll
ffi il
60ctJ-11-5ffi1
601-601mm4262-016
ior+rnirrnt
o DIffL ET fl- v DEUT
1 Page
Priliilri
co
11/14/2011
M:2 PI'l
cincuii
coum
-
-rry
5tb
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l','#'
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Civil Action N 60CV2011-5001
PLAINTIFFS'
FIRST MOTION TO
DISMISS ACTIONAGAINST
DEFENDANT
WILSON & ASSOCIATES,
PLLC
Little Rock, Arkansas 72201
(s01) 376-3800
Mann, Arkansas BarNo. 87108
STATE OF ARKANSAS
CIRCUIT COURT
PULASKI COUNTY
Johnathan D. Dial and Lydia A. Dial,
husband and wife, indhidually, and on
behalf of similarly situated persons,
Plaintiffs,
versus
FILEt> 11/14/11 16:22:44 .
Crane Pulas:U Circlont CLerk
GROl
Civil Action N" 60CV2011-5001
Deutsche Bank National Trust Company, as
Trustee for :Morgan Stanley ABS Capital I
Inc. Trust 2006-HE3; Morgan Stanley ABS
Capital I Inc. Trust 2006-HE3; and Thomas
J. Morton and Wannetta Y. Morton.
PLAINTIFFS' FIRST MOTION TO
DISMISS ACTION AGAINST
DEFE:NDANT WILSON & ASSOCIATES,
PLLC
Defendants.
Pursuant to Ark. R. Civ. P. 41, Johnathan D. Dial and Lydia A. Dial, husband and wife,
individually, and on behalf of similarly situated persons, apply for an order dismissing without
prejudice their action against Defendant Wilson & Associates, PLLC; the complaint has never
been served.
Respectfully submitted,
GILL ELROD RAGON O"WEN & SHERMAN, P.A.
425 West Capitol Avenue, Suite3801
Little Rock, Arkansas 72201
(501) 3 6';3800
______ ____ __ ______ ___
-
-11'" I '''I I 11\\ I II" \\ \\ I "1111 1111 \II" I \I '"I II
60CV-11-5001 601-60100034262-016'
JOHNATHAN 0 DIRL ET AL V DEUT 1 Page
PULRSKI CO 11/14/2011 04:22
CIRCUIT COURT
-- - - -- - -- - - - - - -
Srrpnar I( CLTFFMAN, P.A.
MnruswB.Fnwr
ROGER}L FmcnsoN, Jn.
JorD{P.GIII.P.A,
T.DrMrLGooownr
DRAKEMANN
Kru,yW.McNrx,ry
K-er.lv M. McQrnsx, P.A
CHARTES C. Os,E{, P.A
DYI.ANH. PoTTs
FISARTStrI RAGoI.i Itr, P,A
W. Bneorono Srmnuex
CtrusrournL, Tnavrs, P,ru
Gu-r, Emon RecoN OwsN & SmnuaN, P.A.
ATTORNEYS
lYIErRoPoLrrAl.r TosB.
425 Wrsr Caprrol A\rmrtIE, SurrE 3801
I.nTLE RqcK, ARxAlt s^s 7?2Al
(501) 376-3E00 Fex(501) 372-3359
*ww.gill-htr.com
JupvP.McNsr
Ja,orrllolr TEETER.
CHAD L. Cuvs\e{c, IR-
KerrsA lvfDpitrox
Der.rg,ls lvl Wrrresouss
'Cir,aoL.Woop
RosmrB.BEASH
BEn{EcHoB, CoT,NSEL
JonxA Focr.rueu
oF CorrNsEL (t9l l-2004)
W W. Er&oD tr (195C200t
November 11, 2011
The Honorable Wendell L. Griffen
Pulaski Cormty Circuit Judge,56 Division
401 West Martfiam Street Room 4I0
Little Rock, Arkansas 72201
Re: Dial, et al., v. Deutsche BankNational Trust Company
Pulaski County Circuit Court Civil Action X" OOCVZOI l-5001
DearJudge Griffe,n:
FILES
ILr32/11
i0:?::*t
r-.lrrs
Crarie
pul
*ki r-i
icu i t l:l et k
ilff I llll I llil I llll ll I I lffilt I lll lll lll I il llll ll
60c\,-11-5001 601-60ffi034638-832
J0HltlRTIf[,] D DIft- EI flL $ DE|,IT 1 Page
PUUEIfi C0 111221fr1110:22 Hll
CiRfiJIT COURT
FI74
I have enclosed a file-marked oopy of the plaintiffs' motionto dismiss Wilson & Associates,
PLLC. This is a motion for volmtary non-suig pursuant to Ark R Civ. P. 41,. The defendants
have notbee,n serned-
I have enclosed a proposed orrder of dismissal, which I respectfrrlly request that, if the order
Dlv{/cw
GILL ELROD RAGON OWEN & SHERMAN, P.A.
STFPHEN K.. CuFFMAN, P.A.
MATTHEW B. FINCH
ROGER H. FITzGmBON, JR.
JOHNP. GIlL, P.A.
T. DANIEL GooDWIN
DRAKE MANN
KELLy W. MCNULTY
KELLy M. McQuEEN, P.A.
CHARLES C. OWEN, PA
DYLAN H. Pons
HEARTSILL RAGON III, P.A.
W. BRADFORD SHERMAN
CHRISTOPHER L. TRAVIS, P .A.
AITORNEYS
METROPOUTAN TOWER
425 WEST CAPITOL AVENUE, Surrn3801
LrITLE RocK, ARKANSAS 72201
(501) 376-3800 FAX (SOl) 3723359
www.gilllaw.com
November 11, 2011
The Honorable Wendell L. Griffen
Pulaski County Circuit Judge, 5
th
Division
401 West Markham Street, Room 410
Little Rock, Arkansas 72201
Re: Dial, et al., v. Deutsche Bank National Trust Company
Pulaski County Circuit Court Civil Action ~ 60CV20 11-500 1
Dear Judge Griffen:
JuoYP.McNEIL
JENNY HOLT TEETER
CHAo L. CUMMING, JR.
KATIE A. MIDDLETON
DANIELLE M WHITEHOUSE
'CHAD L. WOOD
ROBERT B. BEACH
BETH EcHoLS, CoUNSEL
JOHN A. FOGLEMAN
OF CoUNSEL (1911-2004)
W. W. ELROD II (1950-2005)
FILED 11/22/11 10:22:01
~ r r ~ Crane Pulaski Circuit Clerk
11-'
11111111111111111111111111111111'1111111111111111
60CV-11-5001 601-60100034638-032
JOHNATHRN 0 DIAL ET AL ~ DEUT 1 Page
PULASKI CO 11122/2011 10: 22 AM
CIRCUIT COURT FI74 ..
I have enclosed a file-marked copy of the plaintiffs' motion to dismiss Wilson & Associates,
PLLC. 1hls is a motion for voluntary non-suit, pursuant to Ark. R Civ. P. 41. The defendants
have not been served.
I have enclosed a proposed order of dismissal, which I respectfully request that, if the order
meets with your approval, you sign it and ask your staff to deliver it to the clerk for filing.
STAIE OFARKANSAS
.
CIRqU]T COIIRI
PTJLASKT COTINTY
cv.5.2011'1361
Johnathan D. Diat and L-vdia A. Dial,
husband and *tfg individuall5,, and on
behalf of similarlv situated persors,
Plaintiffs,
verslts
Deutsehe Bank National Trust Comprny, sg
Trustee for hforgan StanIeyABS Capital I
Inc. Trust 200GEE3; Morgan StanleyABS
Capital I hnc. Trust 200Gffi3; and Thomas
J. h{orton and WannettaY Morton.
#;.I
i;*li
Ij,
fii=,i.i;
i i _, eri,
Cir'ilAction ltl" 60CV2011'5001
ORDER OF VOLfiNTARY DISIT{ISSAL
OF ACTION AGAII{S T D EFEI{DANT
WILSON & ASSOCIAIES, PLLC
Defendants.
Before the Court is Plaintiffs' First Motion to Dismiss Action Agairst'Wilson & Associates,
PLLC, pursuant to Ark. R. Civ. P. 41. Based upon the motion,
this
Court's:review of the file,
IT IS SO ORDERED tut
{
day of Nover:rber 2011.
ffill I llll I llil I llll ll ll lll il I lll lll lll I lil lll ll
60clj-11-5ml 001-601wts34620-012
J0.|I,IRTHRII D DIRL EI RL \l DEU 2 Pages
ru-nSn C0 fiW?81110:8
AH
.IIRC1JITC0URT _ _ _JL28_
Piepred by
Dr8bM.@.
GrIr Er@R^Go}'I OqBI & SEMAN, PA
425 Wcst Cryiiol Avcmr, Suio3801
Little Roclq Albosas 72201
(501)
37e38oo
STATE OF ARKANSAS
CIRCUIT COURT
PULASKI COUNTY
cv .5.2011.1361
-------_.- .- ..... -- -
Johnathan D. Dial and Lydia A. Dial,
husband and wife, individually, and on
beha.1f of similarly situated persons,
Plaintiffs,
versus
Deutsche Bank National Trust Company, as
Trustee for Morgan Stanley ABS Capital I
Inc. Trust 2006-HE3; Morgan Stanley ABS
Capital I Inc. Trust 2006-HE3; and Thomas
J. Morton and Wannetta Y. Morton.
Defendants.
I
ChilAction ~ 60CV2011-5001
ORDER OF VOLDNTARY DISl\fiSSAL
OF ACTION AGAINST DEFENDANT
WILSON & ASSOCIATES, PLLC
Before the Court is Plaintiffs' -First Motion to Dismiss Action Against Wilson & Associates,
PLLC, pursuant to Ark. R. Civ. P. 41. Based upon the motion, this Court'sreview of the file,
and the Arkansas Rilles of Civil Procedure, the plaintiffs' motion is granted.
IT IS SO ORDERED this ~ day of November 2011.
1111111111111111111111111111111111111111111111111
60CV-11-5001 601-60100034620-012
. JOHNATHRN D DIAL ET Il V DEU 2 Pages
PULASKI CO 1112212011 10:23 AM
CIRCUIT COURT JU28
\,.. ---- - ~ - - --_/
Prepared by
Dl3keMann
GILl. ELROD RAGON OWEN & SHERMAN, P .A.
425 West Capitol A venue, Suite 3801
Little Rock, Arlamsas 72201
(501)376-3800
STAIE OFARKANSAS
CIRCUIT COI]RT
PULASKT COIINTY
Johnathan D. Dial and LydiaA- Diat
husband aad ntfe, individually, and on
behalf of similarly situated persons,
Plaintiffs,
l'ersus
Deu8che Ba* Nationat Trust Company, as
Trustee for Morgan StanleyABS Capital I
Inc. Tiust 2006IIE'3; h{organ StanleyABS
Capital l Inc. Tnrst 200GHT.'.3; and Thomas
J. Morton andWannettaY. Morton.
PLAINTIFFS' FIRST MOTION TO
DISI\fl SS ACTION AGAINST
DEFENDANT WILSON & ASSOCTA-IES,
PLLC
Defendants.
Purs-uant to Ark R. Civ. P. 41, Johnathan D. Dial and Lydia A. Dial, husband and wrfe,
I
individually, and on behalf of similariy situated persons, apply for an qrder dismissi:rg without
prejudice their action ag4i:rst Defe,rrdant Wilson & Associates, PLLC; the compl{nt has
-never
been served.
,
Respectfully zubmitted,
:,, ..
Gu.l Em.oo ReaoN OvrsN & Sgpn:iaeN, P-A.
425 West Capitol Ave,nue, Suite 3801
Little Roclq Arkansas 72201
STATE OF ARKANSAS
CIRCUIT COURT
PULASKI COUNTY
Johnathan D. Dial and Dial,
husband and "TIe, individually, and on
behalf of similarly situated persons,
Plaintiffs,
versus
Civil Action 60CV2011-5001
Deutsche Bank National Trust Company, as
Trustee for Morgan Stanley ABS Capital I
Inc. Trust 2006-HE3; l\iorgan Stanley ABS
CapitalI Inc. Trust 2006-HE3; and Thomas
J. Morton and Wannetta Y. Morton.
PLAINTIFFS' FIRST MOTION TO
DIS:MISS ACTION AGAINST
DEFE}\(l)ANT WILSON & ASSOCIATES,
PLLC
Defendants.
Pursuant to Ark. R. Civ. P. 41, lohnathan D. Dial and Lydia A. Dial, husband and wife,
individuaIly,and on behalf of similarly situated persons, apply for an order dismissing withbut
prejudice their action against Defendant Wilson & Associates, PLLC; the complainihas never
been serVed.
Respectfully submitted,
GILL ELROD RAGON o-WEN& SHERMAN, P.A.
425 West Capitol Avenue, Suite 3801
Little Rock, Arkansas 72201
(501) 3 6-3800
____ ________________
aIceMann, Arkansas BarNo; 87108
STATE OFARKANSAS
CIRCTIIT COURT
PULASKI COUNTY
Johnathan D. Dial and LydiaA. DiaI,
husband and wife, indirddually, and on
behalf of simil*rly situated persors,
Plaintiffs,
versus
Deutsche Bank National Trust Qolmpan;,, as
Trustee for Morgan StanleyABS Capital I
Inc. Tlust 2006-EE3; Morgan Stanley ABS
Capital I Inc. Trust 2006-ffi3; and Thomas
J. Morton and Wannetta Y. Morton.
,rirr,*t,,rr*.'*....{/,fl
!:3,f
r1 tlr*rrr
Fr.lis-".l:i
[ir;iijt
Ll;L! 1
ill*rit
Civil Action No. 60CV2011-5001
PLAINTIFFS FIRST MOTION FOR
EXTENSION OFTIME TO SER\rE
DEFENDANTS
Defendants.
Plaintiffs move for an extension of time to serve Defe,ndants Deutsche Bank National
Trust Company and Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 an4 in support thereo{
state as follows:
1. Plaintiffs filed this actioin on October L7,2011. The 720-day time period for serving
the Summons and Complaint has not yet expired.
2. The appropriate agents for service of process for Defendants Deutsche Bank Nationai
Trust Company, as Trustee for Morgan Stanley ABS Capital I Inc. Trust 2006-HE3, and Morgan
Stanley ABS Capital I Inc. Trust 2006-HB have not yet been served.
3. Plaintitrs are having difficulty ascertaining the identity and location of Defendants
Deutsche Bank Nationd fnrst Company, as Trustee for Morgan Stanley ABS Capital I lnc. Trust
2006-H83, and Morgan Stanley ABS Capitai I Inc. Trust 2006-IIE3 age,nts for service of
process.
4. Arkansas
serving defendants.
Rule of Civil Procedure 4(i) authorizes the Court to extend the period for
ltffi ililil il1il Iilil lil ililI ilililililt ililil ]
60cv-11-5001 601-60100038ms-015
J0HltlRIHHltI D DIRL ET AL V DEU 2 Pages
PIJLASI(I C0 0211312fi1210:59 ell
CIRCUII COURT l,l]1I90
STATE OF ARKANSAS
CIRCUIT COURT
PULASKI COUNTY
Johnathan D. Dial and LydiaA. Dial,
husband and wife, individually, and on
behalf of similarly situated persons,
Plaintiffs,
versus
Deutsche Bank National Trust Company, as
Trustee for Morgan Stanley ABS Capital I
Inc. Trust 2006-HE3; Morgan Stanley ABS
Capital I Inc. Trust 2006-HE3; and Thomas
J. Morton and Wannetta Y. Morton.
Defendants.
Civil Action No. 60CV2011-5001
PLAINTIFFS FIRST MOTION FOR
EXTENSION OF TIME TO SERVE
DEFENDANTS
Plaintiffs move for an extension of time to serve Defendants Deutsche Bank National
Trust Company and Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 and, in support thereof,
state as follows:
1. Plaintiffs filed this actioin on October 17, 2011. The 120-day time period for serving
the Summons and Complaint has not yet expired.
2. The appropriate agents for service of process for Defendants Deutsche Bank National
Trust Company, as Trustee for Morgan Stanley ABS Capital I Inc. Trust 2006-HE3, and Morgan
Stanley ABS Capital I Inc. Trust 2006-HE3 have not yet been served.
3. Plaintiffs are having difficulty ascertaining the identity and location of Defendants
Deutsche Bank National Trust Company, as Trustee for Morgan Stanley ABS Capital I Inc. Trust
2006-HE3, and Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 agents for service of
process.
4. Arkansas Rule of Civil Procedure 4(i) authorizes the Court to extend the period for
serving defendants.
1111111111 11111111111 11111111111111111111111 11111
60CV-11-5001 601-60100038269-015
JOHNATHAN 0 DIAL ET AL V DEU 2 Pages
PULASKI CO 02/13/2012 10:59 AM
CIRCUIT COURT MN90
5. For these reasons, Plaintiffs request that the Court extend the time for serving all
Defendants. Plaintiffs request that they be given an additional i20 days to serve Defendants.
WHEREFORE, Plaintiffs Johnathan D. Dial and Lydia A. Dial pray that the Court grant
their Motion for Extension of Time to Serve Defendants, enter an order granting Plaintiffs an
additional 120 days to sen e all Defendants, and for all other relief to which they may be entitled.
Respectfully submitted,
GILL ELROD RAGON OWEN & SHERMAN, P.A.
425 West Capitol Avenue, Suite 3 801
Little Rock, 72201
(501) 376-
By:
\rtann, 61ftansas Bar No. 87108
Cbristopher L. Travis, Arkansas Bar No. 97493
5. For these reasons, Plaintiffs request that the Court extend the time for serving all
Defendants. Plaintiffs request that they be given an additional 120 days to serve Defendants.
WHEREFORE, Plaintiffs Johnathan D. Dial and Lydia A. Dial pray that the Court grant
their Motion for Extension of Time to Serve Defendants, enter an order granting Plaintiffs an
additional 120 days to serve all Defendants, and for all other relief to which they may be entitled.
Respectfully submitted,
GILL ELROD RAGON OWEN & SHERMAN, P.A
425 West Capitol Avenue, Suite 3801
Little Rock, ansas 72201
(501) 376-38
By:
ake Mann, Arkansas Bar No. 871 08
Christopher L. Travis, Arkansas Bar No. 97093
./
STHTE OFARKANSAS
CIRCUIT COURT
PT]LASKI COTINTY
FTF"TH DTVTSION
Johnathan D. Dial and LydiaA. Dia!
husband and u'ife, individually, and on
behalf sf similarry situated persons,
Plaintiffs,
Yersus
Deutsche BankNational Trust Company, as
Trustee for Morgan StanleyABS Capitat I
Inc" Tfust 2006-ffi.3, individually, and as
repres entativs s1 simil erly situated persons
;
Morgan StanleyABS Capital I Inc. Trust
200Grrr'.3, individually, and as
of similarly situated personsl and
Thomas J. Morton andWannettaY. Mo6on.
Defendants.
SUMMARY OF CASE
5/u
civilAction If 60
-
cv- 2011-5001
FIRST AMENDED AND SUBSTMUTED
coMPLArNr
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ilirriiit t-Leril
60c\l-11-5001 601-60100038383-025
J0HNRTHRI'I D DIHL ET ffL V DE 40 Pages
PULASKI C0
glt14l2g1?
02:54 Pl{
FI4O
+;':rl
CIRCUIT COURT
1. Plaintiffs bring this complaint for declaratory
judgment pursuant to Ark.
R. Civ. P.57 andArk. CodeArrl
$$
16-111-101
-
i6-111-111 todeterminetherights
and stahrs of the parties with regard to Plaintiffs' contract to purchase land and the deed
into which the contract merged. Pursuant to Ark. R Civ. P. 57, Plahtiffs respectfully
request a speedy hearing.
Z. This action also seeks to remedy any past and continuing vioiations of
Arkansas's Statutory Foreclosure Ac! which is codified at Ark. Code Am.
$$
18-50-101
-
117 (the
*SFA').
3. Defendant Dzutsche Bank National Trust Company, as Trustee for
Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 (DB, as Trustee') and similarly
situated entities violated, and may continue to violate, the SFA by failing to be
/
STATE OF ARKANSAS
CIRCUIT COURT
PULASKI COUNTY
FIFTH DIVISION
Johnathan D. Dial and Lydia A. Dial,
husband and wife, individually, and on
behalf of similarly situated persons,
Plaintiffs,
versus
Deutsche Bank National Trust Company, as
Trustee for Morgan Stanley ABS Capital I
Inc. Trust 2006-HE3, individually, and as
representative of similarly situated persons;
Morgan Stanley ABS Capital I Inc. Trust
2006-HE3, individually, and as representative
of similarly situated persons; and
Thomas J. Morton and Wannetta Y. Morton.
Defendants.
FT'LR"l r0/14l1'j 14::=i4:1' ,. th'L . _ s..._ _ _. '" .or .&. __ .... _. ,.
Larf'::! Circuit CLet-k
GROl
Civil Action 60 - CV- 2011-5001
FIRST AMENDED AND SUBSTITUTED
COMPLAINT 1111111111111111111111111111111111111111111111111
60CV-11-5001 601-60100038383-026
JOHNATHAN D DIAL ET AL V DE 40 Pages
SUMMARY OF CASE
PULASKI CO 02/14/2012 02:54 PM
CIRCUIT COURT FI40
1_ Plaintiffs bring this complaint for declaratory judgment pursuant to Ark.
R. Civ. P. 57 and Ark. Code Ann. 16-111-101 - 16-111-111 to determine the rights
and status of the parties with regard to Plaintiffs' contract to purchase land and the deed
into which the contract merged. Pursuant to Ark. R. Civ. P. 57, Plaintiffs respectfully
request a speedy hearing.
2. This action also seeks to remedy any past and continuing violations of
Arkansas's Statutory Foreclosure Act, which is codified at Ark. Code Ann. 18-50-101
- 117 (the "SF A").
3. Defendant Deutsche Bank National Trust Company, as Trustee for
Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 (''DB, as Trustee") and similarly
situated entities violated, and may continue to violate, the SF A by failing to be
..authorized
to do business in Arkansas," prior to availing the'mselves of the re'medies
provided by the SFA.
4. Because DB, as Trustee, and other similarly situated entities failed to
comply with the requirelnents of the SFA, all purported statutory foreclosures they
conducted are invalid, and DB, as Trustee, and the other similarly situated e'lrtities never
acquired title to the real properties in which they purported to foreclose their mortgage
interests.
5. Defendant Morgan Stanley ABS Capital I Inc. Trust 2006-HE3
("Trust
2006-H83"), and similarly situated trusts, also violated the SFA by failing to be
..authorized
to do business in Arkansas," prior 1s aveiling thernselves of the remedies
provided by the SFA; because they faild to comply wi*r the requirements of the SFA,
purported statutory foreclosures they condueted are invalid, and they did not acquire title
to the real property in which they purported to foreclose their morLgage interests.
6. As a resul! entities that failed to be
*authorized
to do business in
Arkansas," before availing the,mselves of the remedies provided by the SFA failed to
corvey fee title to anyone who purchased reat property that had been foreciosed through
the SFA.
7. These e,lrtities breached their covenants to warrant and defend the title
against all their own acts.
8. In addition, any owners of real properfy who purportedly had their
interests in real property foreclosd did not.
"authorized to do business in Arkansas," prior to availing themselves of the remedies
provided by the SF A.
4. Because DB, as Trustee, and other similarly situated entities failed to
comply with the requirements of the SF A, all purported statutory foreclosures they
conducted are invalid, and DB, as Trustee, and the other similarly situated entities never
acquired title to the real properties in which they purported to foreclose their mortgage
interests.
5. Defendant Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 (''Trust
2006-HE3"), and similarly situated trusts, also violated the SFA by failing to be
"authorized to do business in Arkansas," prior to availing themselves of the remedies
provided by the SF A; because they failed to comply with the requirements of the SF A,
purported statutory foreclosures they conducted are invalid, and they did not acquire title
to the real property in which they purported to foreclose their mortgage interests.
6. As a result, entities that failed to be "authorized to do business m
Arkansas," before availing themselves of the remedies provided by the SF A failed to
convey fee title to anyone who purchased real property that had been foreclosed through
the SFA.
7. These entities breached their covenants to warrant and defend the title
against all their own acts.
8. In addition, any owners of real property who purportedly had their
interests in real property foreclosed did not.
g.
DB, as Trustee, is only one of dozens ofmortgagees
who have violated the
SFA by failing to be "authorized
to do business in Arkansas,"
prior to availing
the,r:rselves of the remedies provided by the SFA'
TITE PARTIES, JURISDICTION,
AND VENUE
i0. Plaintiffs, Johnathan D. Dial and Lydia A. Dial, are residents of Pulaski
County, Arkansas; they have an interest which would be affected by the declaration of
rights sought in this action by virtue of their having purchased I-ot 26, Block 17,
Overbook Addition to the City of Little Rock, Arkansas, more corlmonly known as 52
Dove Creek Circle, North Little Rock, Arkansas
(the'?roperty''), from Defe'lrdant DB, as
Trustee, on or aboutMarch 22,2010.
11. Deutsche Bank National Trust Company is a foreign corporation; it is a
non-depository trust company, and a me,mber of the Federal Reserve' Deutsche Bank
National Trust Company has acted as trustee for various trusts that are 'hortgagees"
as
that tenn is used in the sFA, and, acing in that capacity, Dzutsche Bank National Trust
Company has conducted numerous statutory foreclosrre sates within and outside Pulaski
Counfy, Arkansas.
lZ. Thomas J. Morton and Wannetta Y. Morton
("the Mortons") have an
interest which would be affected by the declaration of rights sought in this action by
virtue of their having mortgaged the Property they are individual residents of Arkansas.
13. Trust 2006-IIE3 is a foreign trust; it has not obtained a certificate of
authority from the Secretary of State pursuant to Ark. Code A:rn.
$
4-27'1501, nor has it
complied with the filing requirements of Ark" Code Ann.
$
4-31-402, and, as of January
..
9. DB, as Trustee, is only one of dozens of mortgagees who have violated the
SF A by failing to be "authorized to do business in Arkansas," prior to availing
themselves of the remedies provided by the SF A.
THE PARTIES, JURISDICTION, AND VENUE
10. Plaintiffs, Johnathan D. Dial and Lydia A. Dial, are residents of Pulaski
County, Arkansas; they have an interest which would be affected by the declaration of
rights sought in this action by virtue of their having purchased Lot 26, Block 17,
Overbook Addition to the City of Little Rock, Arkansas, more commonly known as 52
Dove Creek Circle, North Little Rock, Arkansas (the ''Property''), from Defendant DB, as
Trustee, on or about March 22,2010.
11. Deutsche Bank National Trust Company is a foreign corporation; it is a
non-depository trust company, and a member of the Federal Reserve. Deutsche Bank
National Trust Company has acted as trustee for various trusts that are ''mortgagees'' as
that term is used in the SFA, and, acting in that capacity, Deutsche Bank National Trust
Company has conducted numerous statutory foreclosure sales within and outside Pulaski
County, Arkansas.
12. Thomas J. Morton and Wannetta Y. Morton (''the Mortons") have an
interest which would be affected by the declaration of rights sought in this action by
virtue of their having mortgaged the Property; they are individual residents of Arkansas.
13. Trust 2006-HE3 is a foreign trust; it has not obtained a certificate of
authority from the Secretary of State pursuant to Ark. Code Ann. 4-27-1501, nor has it
complied with the filing requirements of Ark. Code Ann. 4-31-402, and, as of January
.(
12,z)\A,it was not "authorizdto
do business in Arkansas,"
as that phrase is used in
Ark. Code Ann.
$
18-50-i 17; it u,as the zuccessor-in-interest
to the Mortons' mortgagee.
14. This Court has personal
jurisdiction over Defendants
pursuant to Ark.
Code Ann.
$
16-13-201.
15. Venue is proper in this Court pursuaat to Ark. Cocle Ann.
$
16-55-213.
OPERATTVE LAW
16. The Statutory Foreclosure Act states that no '!erson, finr, company,
association, fiduciary, or parfirership, either domestic or foreign, shall avail themselves of
the procedures under this chapter unless authorized to do business in this state." Ark.
CodeAm-
$
18-50-117.
FACTS
77. On January 23, 2006, Thomas J. Morton and Wannetta Y. Morton
executed and delivered a mortgage, recorded on February 17, 2006, as Instrument No.
2OO6At2gl6 in the real estate records of Fulaski County, Arkansas, to the '?roperty".
Exhibit A.
18. On January 12,2010, Wilson & Associates, P.L.L.C., acting as attomey-
in-fact for DB, as Trustee, proceeded to sell the Properfy at public auction, pursuant to
the SFA (the "Auction").
19. At the Auction, the Property was purportedly sold to DB, as Trustee.
20. Thereafter, Wilson & Associates, P.L.L.C. prepared a Mortgagee's Deed
wherein DB, as Trustee recites:
12, 2010, it was not "authorized to do business in Arkansas," as that phrase is used in
Ark. Code Ann. 18-50-117; it was the successor-in-interest to the Mortons' mortgagee.
14. This Court has personal jurisdiction over Defendants pursuant to Ark.
Code Ann. 16-13-20l.
15. Venue is proper in this Court pursuant to Ark. Code Ann. 16-55-213.
OPERATIVE LAW
16. The Statutory Foreclosure Act states that no ''person, firm, company,
association, fiduciary, or partnership, either domestic or foreign, shall avail themselves of
the procedures under this chapter unless authorized to do business in this state." Ark.
Code Ann. 18-50-117.
FACTS
17. On January 23, 2006, Thomas J. Morton and Wannetta Y. Morton
executed and delivered a mortgage, recorded on February 17, 2006, as Instrument No.
2006012916 in the real estate records of Pulaski County, Arkansas, to the ''Property''.
Exhibit A.
18. On January 12, 2010, Wilson & Associates, P.L.L.C., acting as attomey-
in-fact for DB, as Trustee, proceeded to sell the Property at public auction, pursuant to
the SF A (the "Auction").
19. At the Auction, the Property was purportedly sold to DB, as Trustee.
20. Thereafter, Wilson & Associates, P.L.L.C. prepared a Mortgagee's Deed
wherein DB, as Trustee recites:
a. the Mortons' ganting, sellirg, and conveying the Properfy to its
original mortgagee, the Mortons' default, and the status of DB, as
Trustee, as holder of the Mortons' indebtedness;
b. its election, upon the Mortons' default, to sell the Property
pusuant to
the SFA, and the ocoulrence of the Auction.
21. After these recitals in the Mortgagee's Deed, DB, as Trustee, "does
GRANT, SELL, AND CONVEY'the Propertyto DB, as Trustee-
ZZ. The Mortgagee's Deed was flled and recorded in the real estate records of
Pulaski County, Arkansas, on January 22,2A10. Exhibit B.
23. Thereafter, in March 2010, DB, as Trustee, entered a contact to sell the
Property to Ptaintiffs. Plaintiffs paid DB, as Trustee, the purchase price and did all other
acts required under the contract.
24. On or about March 22, 2070, DB, as Trustee, delivered to Plaintiffs a
Special Warranty Deed wherein DB, as Trustee, stated that it "does hereby convey''the
Property to Plaintiffs and further that DB, as Trustee, 'tereby
binds itself to warrant and
defend the title as against all acts of the Grantorherein and no othe,r.'o Exhibit C.
Violation of the SFA
25. On or before January 12,2010, and continuing ttrrough at least Jan'mry 22,
2010, neither Dzutsche Bank National Trust Company nor DB, as Tnrstee, nor Trtrst
2006-HE3 had obtained a eertificate of arXbority from the Secretary of State, pursuant to
Ark. CodeAnn.
$
4-27-1501.
26. On or before Jaauary 12,201.0, and continuing through at least lanuary 22,
2010, neither Deutsche Bank National Trust Company ror DB, as Trustee, nor Trust
;

a. the Mortons' granting, selling, and conveying the Property to its
original mortgagee, the Mortons' default, and the status of DB, as
Trustee, as holder of the Mortons' indebtedness;
b. its election, upon the Mortons' default, to sell the Property pursuant to
the SF A, and the occurrence of the Auction.
21. After these recitals in the Mortgagee's Deed, DB, as Trustee, "does
GRANT, SELL, AND CONVEY" the Property to DB, as Trustee.
22. The Mortgagee's Deed was filed and recorded in the real estate records of
Pulaski County, Arkansas, on January 22,2010. Exhibit B.
23. Thereafter, in March 2010, DB, as Trustee, entered a contract to sell the
Property to Plaintiffs. Plaintiffs paid DB, as Trustee, the purchase price and did all other
acts required under the contract.
24. On or about March 22, 2010, DB, as Trustee, delivered to Plaintiffs a
Special Warranty Deed wherein DB, as Trustee, stated that it "does hereby convey" the
Property to Plaintiffs and further that DB, as Trustee, "hereby binds itself to warrant and
defend the title as against all acts of the Grantor herein and no other." Exhibit C.
Violation of the SFA
25. On or before January 12, 2010, and continuing through at least January 22,
2010, neither Deutsche Bank National Trust Company nor DB, as Trustee, nor Trust
2006-HE3 had obtained a certificate of authority from the Secretary of State, pursuant to
Ark. Code Ann. 4-27-150l.
26. On or before January 12, 2010, and continuing through at least January 22,
2010, neither Deutsche Bank National Trust Company nor DB, as Trustee, nor Trust
2006-HE3 had complied with the deiivery and payme,lrt require,ments of Ark. Code Am'
S
4-31-402 or otherwise caused the Secretary of State to issue a certificate showing that
the declaration of trust is, and has been, on file in the office of the Secretary of State.
27. On or before January 22,20IA, and continuing through at least January 22,
2010, neither Deutsche Bank National Trust Company nor DB, as Trustee, nor Trust
2006-HE3 were "authoized to do business in this state," as that phrase is used in A*.
Code Arur.
$
18-50-1 17.
Consequences of Violation of the SFA
28. On account of their failure to be "authorized
to do business in this state,"
neithff Deutsche Bank National Trust Company nor DB, as Trustee, nor Trust 2006-HE3
could avaii the,lriselves of the procedures of SFA.
29. The Auction failed to effect a foreclosure of the Mortons' interest in the
Property.
30. The Auction also failed to effect a sale of the Properfy'
31. Despite its creation and delivery of the January 22, 2010, Mortgagee's
Deed, DB, as Trustee, did not acquire title to the Property'
32. The March 22,2010 Special Warranty Deed failed to effect a transfer of
fee simple tifle to the ProPerlY
33. DB, as Trustee, broke the covenant of seisin on or about IVIarch 22,2010
whe,n it made the cove,nant of seisin and deiivered the Special Warranty Deed to
Plaintiffs.
34. By failing to obtain a csrtificate of authority from the Secretary of State
pursuant to Ark. Code Ann.
S
4-27-1501, complying with the filing requirernents
of Ark.
..
2006-HE3 had complied with the delivery and payment requirements of Ark. Code Ann.
4-31-402 or otherwise caused the Secretary of State to issue a certificate showing that
the declaration of trust is, and has been, on file in the office of the Secretary of State.
27. On or before January 22,2010, and continuing through at least January 22,
2010, neither Deutsche Bank National Trust Company nor DB, as Trustee, nor Trust
2006-HE3 were "authorized to do business in this state," as that phrase is used in Ark.
Code Ann. 18-50-117.
Consequences of Violation of the SFA
28. On account of their failure to be "authorized to do business in this state,"
neither Deutsche Bank National Trust Company nor DB, as Trustee, nor Trust 2006-HE3
could avail themselves of the procedures of SF A.
29. The Auction failed to effect a foreclosure of the Mortons' interest in the
Property.
30. The Auction also failed to effect a sale of the Property.
31. Despite its creation and delivery of the January 22, 2010, Mortgagee's
Deed, DB, as Trustee, did not acquire title to the Property.
32. The March 22, 2010 Special, Warranty Deed failed to effect a transfer of
fee simple title to the Property.
33. DB, as Trustee, broke the covenant of seisin on or about March 22, 2010
when it made the covenant of seisin and delivered the Special Warranty Deed to
Plaintiffs.
34. By failing to obtain a certificate of authority from the Secretary of State
pursuant to Ark. Code Ann. 4-27-1501, complying with the filing requirements of Ark.
code Ann.
$
4-31-402, and otherwise failing become authorized
to do business
in this
state before a'ailing itself of the procedures of the SFA, DB, as Trustee, and Trust 2006'
HE3 performed the acts that created the defects in Plaintiffs' title'
APProPriate Relief
35. Plaintiffs,
who, as grantees, have an interest in the March 22,2010 special
wa:ranty Dee4 are entitled to a determination
of the validity of that deed and a
declaration
a- that the Mortgagee's
Deed is void;
b. that the Specia1 Wa:ranty Deed is void;
c.thattheMortonsholdparamounttitletotheProperty;
d.thatDB,asgrantor,breacheditscovenantofseisin;
e. that Plaintiffs have an immediate right of action against DB;
f' that Plaintiffs are entitled to damages, even if only nominal;
g. that
plaintiffs
are entitled to equitable relief, including
specific
performance of the covenant of seisin;
h. that Plaintiffs are entitled to supple'mental
relief hereiq and
i. that
plaintiffs
are entitled to their costs, including a reasonable
atiomeY's fee.
PLAINTIFF
CLASS ALLEGATIONS
36. The
plaintiffs
bring this state-wide class action on behalf of themselves
and all other persoas similarly situated in relation to Dzutsche Bank National Trust
Company
(or any other person or entity) that is a'lnortgagee"
(as defined in Ark' Code
Ann.
$
18-s0-101(7).
Code Ann. 4-31-402, and otherwise failing become authorized to do business in this
state before availing itself of the procedures of the SF A, DB, as Trustee, and Trust 2006-
HE3 perfonned the acts that created the defects in Plaintiffs' title.
Appropriate Relief
35. Plaintiffs, who, as grantees, have an interest in the March 22, 2010 Special
Warranty Deed, are entitled to a detennination of the validity of that deed and a
declaration
a. that the Mortgagee's Deed is void;
b. that the Special Warranty Deed is void;
c. that the Mortons hold paramount title to the Property;
d. that DB, as grantor, breached its covenant of seisin;
e. that Plaintiffs have an immediate right of action against DB;
f. that Plaintiffs are entitled to damages, even if only nominal;
g. that Plaintiffs are entitled to equitable relief, including specific
perfonnance of the covenant of seisin;
h. that Plaintiffs are entitled to supplemental relief herein; and
i. that Plaintiffs are entitled to their costs, including a reasonable
attorney's fee.
PLAINTIFF CLASS ALLEGATIONS
36. The Plaintiffs bring this state-wide class action on behalf of themselves
and all other persons similarly situated in relation to Deutsche Bank National Trust
Company (or any other person or entity) that is a ''mortgagee'' (as defined in Ark. Code
Ann. 18-50-101(7).
37. The proposed class is defined as follows:
A11 persons who, on or after October !7,2006,
purchased real property and are
grurrt"", thereto in a general or special warranty deed from an entity tbat was not
authorized to do bus[ress in Arkansas before availing itself of the procedures of
Title 18, Chapter 50, of the fu'kansas Code.
Excluded from the elass are the foilowing individuals and/or entities:
a. Defendants;
b. individuals or entities, if any, who timely opt out of this proceeding using the
corest
Protocol
for oPting out;
c. krdividuals or entities, if any, who have previously settled or compromised
claims(s) as identified herein for the class; and
d. Any currently sitting circuit
judge
and/or person within the third degree of
consanguinity to any circuit
judge.
38. Plaintiffs wilt fairly and adequateiy
protect the interests of the class, and
are adequate rqrresentatives of the class of persoirs defined herein. The plaintiffs are
interested in the outcome of this lawsuit and understand the importance of adequately
representing everymember of the class described herein.
NumerositY
39. On information and belief, persons, firms, companies, associations,
fiduciaries, or partnerships ("entities" or "e,ntig/) have availed themselves of the
procedures under Chapter 50 of Title 18 when they were not authorized to do business in
Arkansas on more than two hundred and twenty occasions in Pulaski County alone.
40. As a resulg Plaintiffs are so mrmerous that it is impracticable to bring
therr all before the Court within a reasonable time, and a class action is therefore superior
to other methods for the fair aad efficie,nt adjudication of this controversy.
37. The proposed class is defined as follows:
All persons who, on or after October 17, 2006, purchased real property and are
grantees thereto in a general or special warranty deed from an entity that was not
authorized to do business in Arkansas before availing itself of the procedures of
Title 18, Chapter 50, of the Arkansas Code.
Excluded from the class are the following individuals and/or entities:
a Defendants;
b. Individuals or entities, if any, who timely opt out of this proceeding using the
correct protocol for opting out;
c. Individuals or entities, if any, who have previously settled or compromised
claims(s) as identified herein for the class; and
d. Any currently sitting circuit judge and/or person within the third degree of
consanguinity to any circuit judge.
38. Plaintiffs will fairly and adequately protect the interests of the class, and
are adequate representatives of the class of persons defined herein. The plaintiffs are
interested in the outcome of this lawsuit and understand the importance of adequately
representing every member of the class described herein.
Numerosity
39. On information and belief, persons, firms, companies, associations,
fiduciaries, or partnerships ("entities" or "entity") have availed themselves of the
procedures under Chapter 50 of Title 18 when they were not authorized to do business in
Arkansas on more than two hundred and twenty occasions in Pulaski County alone.
40. .As a result, Plaintiffs are so numerous that it is impracticable to bring
them all before the Court within a reasonable time, and a class action is therefore superior
to other methods for the fair and efficient adjudication of this controversy.
41.
Commonality
There are colnmon questions of law and fact affecting the members of the
class. Such co nmon questions predominate over any questions affecting only individual
class members.
42. These questions include, but are not limited to:
a. what action is required for an entity to be "authaized to do business"
in this state under the SFA;
b. if an entity required by the SFA to be "authorized to do business" in
this state does not perform the actions required for it to be "authorized
to do business" in this state:
i. can that entity foreclose the interests of any others;
ii. cao that entity conduct a sale under the SFA;
iii. can that erfity convey good title;
iv. can that entity make and deliver a deed that conveys any dght,
title or interest in real properfy and
v. does such an entity that nnakes and delivers to a grantee a
general or special warranty deed breach the covenant of seisin.
43. elaims of the named Plaintitrs are typical of the claims of other members
of the class in that they all arise from an entity utitizing the SFA's procedures when the
entity was not authorized to do business in the state.
AdequacY o f RePrese,ntation
44. Plaintiffs will fairly and adequately protect the interests of the C1ass.
plaintiffs'
interests do not conflict with the interests of the Ciass members. Furthe'l:nore,
Commonality
41. There are common questions of law and fact affecting the members of the
class. Such common questions predominate over any questions affecting only individual
class members.
42. These questions include, but are not limited to:
a. what action is required for an entity to be "authorized to do business"
in this state under the SF A;
b. if an entity required by the SF A to be "authorized to do business" in
this state does not perform the actions required for it to be "authorized
to do business" in this state:
1. can that entity foreclose the interests of any others;
ii. can that entity conduct a sale under the SF A;
lll. can that entity convey good title;
IV. can that entity make and deliver a deed that conveys any right,
title or interest in real property; and
v. does such an entity that makes and delivers to a grantee a
general or special warranty deed breach the covenant of seisin.
43. Claims of the named Plaintiffs are typical of the claims of other members
of the class in that they all arise from an entity utilizing the SFA's procedures when the
entity was not authorized to do business in the state.
Adequacy of Representation
44. Plaintiffs will fairly and adequately protect the interests of the Class.
Plaintiffs' interests do not conflict with the interests of the Class members. Furthermore,
Plaintiffs have retained compete,lrt counsel experienced in class action litigation.
Plaintiffs' counsei will fairly and adequately protect and represent the interests of the
Class.
45. In addition, DB, as Trustee, has acted on grounds that apply generally to
the ciass, so that declaratory relief or corresponding final injunctive relief is appropriate
respecting the Class as a whole.
46. In addition, questions of 1aw or fact common to the Class me,mbers
predominate over any questions affecting only individual members, and that a class
action is superior to other available methods for fairiy and efficiently adjudicating the
confroversy.
47. Jurisdiction and venue are proper in Pulaski County, Arkansas, for the
declaratory relief sought.
DEFEhIDANT CLASS ALLEGATIONS
48. Plaintitrs seek certification of a class of defendants who are similarly
situated to DB, as Trustee.
49. The proposed class is defined as follows:
A11 eutities that availed the,mselves of the procedures under Chapter 50 of Tifle 18
of the 4ftansas Code whe,n they were not authorized to do business in the State of
Arkansas and thereafter executed and detvered a general or special warranty deed
to the zubject real property after October 17,2N6.
50. On information and belief DB, as Trustee, is will fairly aod adequately
protect the interests of the class and is an adequate representative of the class of entities
defined herein. DB, as Trustee, is interested in the outcome of this lawsuit and" on
information and belief, it understands the importance of adequateiy represeoting every
member of the classes described herein.

Plaintiffs have retained competent counsel experienced in class action litigation.
Plaintiffs' counsel will fairly and adequately protect and represent the interests of the
Class.
45. In addition, DB, as Trustee, has acted on grounds that apply generally to
the class, so that declaratory relief or corresponding final injunctive relief is appropriate
respecting the Class as a whole.
46. In addition, questions of law or fact common to the Class members
predominate over any questions affecting only individual members, and that a class
action is superior to other available methods for fairly and efficiently adjudicating the
controversy.
47. Jurisdiction and venue are proper in Pulaski County, Arkansas, for the
declaratory relief sought.
DEFENDANT CLASS ALLEGATIONS
48. Plaintiffs seek certification of a class of defendants who are similarly
situated to DB, as Trustee.
49. The proposed class is defined as follows:
All entities that availed themselves of the procedures under Chapter 50 of Title 18
of the Arkansas Code when they were not authorized to do business in the State of
Arkansas and thereafter executed and delivered a general or special warranty deed
to the subject real property after October 17, 2006.
50. On infonnation and b e l i e ~ DB, as Trustee, is will fairly and adequately
protect the interests of the class and is an adequate representative of the class of entities
defined herein. DB, as Trustee, is interested in the outcome of this lawsuit and, on
infonnation and b e l i e ~ it understands the importance of adequately representing every
member of the classes described herein.
Numerosity
5i. On inforrnation and beliel Mortgagees have availed the,mselves of the
procedures under Chapter 50 of Title 18 when it was not authorized to do business in this
state on more than two hundred and tu,e,nty occasions in Pulaski County alone.
SZ. As a resuig the
parties are so oumerous that it is impracticable to bring all
before the Court within a reasonable time, and a class action is therefore superior to other
methods for the fair and efficient adjudication of this controversy.
g6mmonality
53. There are common questions of law and fact aflecting the mernbers of the
class. Such common questions predominate over any questions affecting only indMdual
class members.
54. These questions include, but are not limited to:
L what action is required to be "authoized
to do business" in the state
under the Statutory Foreclosure Act;
b. whether a Mortgagee not authorized to do business in this state may
avail itself of the procedures of the Statutory Foreclosure Act by using
an attorney-in-fact licensed in Arkansas to effect the transaction; and
c. whether the authorized-to-do-business
requirement is zuperseded by a
conflicting provision in Arkansas' Wingo Act, Ark. Code Ann.
Q
4-27-
1501.
Numerosity
51. On infonnation and belief, Mortgagees have availed themselves of the
procedures under Chapter 50 of Title 18 when it was not authorized to do business in this
state on more than two hundred and twenty occasions in Pulaski County alone.
52. As a result, the parties are so numerous that it is impracticable to bring all
before the Court within a reasonable time, and a class action is therefore superior to other
methods for the fair and efficient adjudication of this controversy.
Commonality
53. There are common questions of law and fact affecting the members of the
class. Such common questions predominate over any questions affecting only individual
class members.
54. These questions include, but are not limited to:
a. what action is required to be "authorized to do business" in the state
under the Statutory Foreclosure Act;
b. whether a Mortgagee not authorized to do business in this state may
avail itself of the procedures of the Statutory Foreclosure Act by using
an attorney-in-fact licensed in Arkansas to effect the transaction; and
c. whether the authorized-to-do-business requirement is superseded by a
conflicting provision in Arkansas' Wingo Act, Ark. Code Ann. 4-27-
1501.
Typicality
55. Defenses of the named defendant are tlpical of the defe,nses of other
members of the class in that they all arise from utilizing the Statutory Foreciosure Act's
procedures when an entity was not authorized to do business in the state.
Adequacy of RePresentation
56. On information and belief, DB, as Trustee, will fairly and adequately
protect the interests of the Defendant Class.
57. On information and belief DB, as Trustee's interests do not conflict with
the interests of the Defendant Class members.
58. On information and belief, DB, as Trustee, will vigorously defend the
action.
59. In addition, DB, as Trustee, has acted on grounds that apply generally to
the class, so that final injunctive relief or correq)onding declaratory reiief is appropriate
respecting the Defendant Class as a whole.
60. In addition, questions of iaw or fact common to the Defendant Class
me,mbers predominate over any questions affecting only individual members, and that a
class action is zuperior to other available methods for fairly and efficie,lrtly adjudicating
the controversy.
Additional Considerations
61. AII purported Defendant Class me,rrbers utilized the SFA, which requires
that an entity 'has filed for record with the recorder of the county in which the trust
property is situated a duly acknowledged notice of default and intention to se11..-."
Therefore, the recorder of any couoty in which a notice of default and intention to sell has

Typicality
55. Defenses of the named defendant are typical of the defenses of other
members of the class in that they all arise from utilizing the Statutory Foreclosure Act's
procedures when an entity was not authorized to do business in the state.
Adequacy of Representation
56. On information and belief, DB, as Trustee, will fairly and adequately
protect the interests of the Defendant Class.
57. On information and belief, DB, as Trustee's interests do not conflict with
the interests of the Defendant Class members.
58. On information and belief, DB, as Trustee, will vigorously defend the
action.
59. In addition, DB, as Trustee, has acted on grounds that apply generally to
the class, so that final injunctive relief or corresponding declaratory relief is appropriate
respecting the Defendant Class as a whole.
60. In addition, questions of law or fact common to the Defendant Class
members predominate over any questions affecting only individual members, and that a
class action is superior to other available methods for fairly and efficiently adjudicating
the controversy.
Additional Considerations
61. All purported Defendant Class members utilized the SFA, which requires
that an entity ''has filed for record with the recorder of the county in which the trust
property is situated a du1y acknowledged notice of defau1t and intention to sell .... "
Therefore, the recorder of any county in which a notice of default and intention to sell has
been filed can identify every Defe,ndant Class member, and this Court can thereby snsure
that actual notice can be given to, and due process ensured for, every Defendant Class
member.
DECLARATORY JUI}GMENT
62. The Arkansas Declaratory Judgments Act is remedial; its purpose is to
settle and to afford relief from uncertainty and insecurity n'ith respect to rights, stafus,
and other legal relations; it is to be liberaiiy construed and administered. Ark. Code Ann-
$
i6-11-102.
63. Courts of record have the power to declare rights, status, and other legal
relations; the declaration may be affirmative or negative in fonn and effect and
declarations shall have the force and effect of a final
judgment or decree. Ark. Code Ann.
$
16-111-103.
64. Any person interested under a deed, writtm contrac! or other writings
constituting a contract or whose rights or other legal relatiorls are affected by a statute or
contract may have determined any question of construction or validity arising under the
instrumen! statute, or contact and obtain a declaration of rights or other legal relations
thereunder. Ark. CodeAnn-
$
16-i11-104.
RELIEF REQUESTED
65. Plaintiffs, on behalf of themselves and all Class me,mbers, request the
following relief:
a. Enty of an order certifying the Class and appointing Plaintiffs and
their counsel, Drake Mann, Cbristopher L. Travis, Sean F. Rommel,
and James C. Wyly, to repres'nt the Class;
been filed can identify every Defendant Class member, and this Court can thereby ensure
that actual notice can be given to, and due process ensured for, every Defendant Class
member.
DECLARATORY JUDGMEl'-T'f
62. The Arkansas Declaratory Judgments Act is remedial; its purpose is to
settle and to afford relief from uncertainty and insecurity with respect to rights, status,
and other legal relations; it is to be liberally construed and administered. Ark. Code Ann.
16-11-102.
63. Courts of record have the power to declare rights, status, and other legal
relations; the declaration may be affinnative or negative in form and effect and
declarations shall have the force and effect of a final judgment or decree. Ark. Code Ann.
16-111-103.
64. Any person interested under a deed, written contract, or other writings
constituting a contract or whose rights or other legal relations are affected by a statute or
contract may have determined any question of construction or validity arising under the
instrument, statute, or contract and obtain a declaration of rights or other legal relations
thereunder. Ark. Code Ann. 16-111-104.
RELIEF REQUESTED
65. Plaintiffs, on behalf of themselves and all Class members, request the
following relief:
a. Entry of an order certifying the Class and appointing Plaintiffs and
their counsel, Drake Mann, Christopher L. Travis, Sean F. Rommel,
and James C. Wyly, to represent the Class;
b. Entry ofjudgment determining that the warranty deeds (either general
or special) deliveled to them are invalid and declaring as foilows:
i. that another person (or entity) holds
para:nount title to the
subject
ProPertY;
ii. that their grantors breached the covenant of seisin;
iii. that Plaintiffs have an immediate right of action against their
grantors;
iv. that P1aintiffs are entitled to damagesi
v. that Plaintiffs are entitled to equitable relief;
r.i. that Plaintiffs are entitled to zupplemental relief herein; and
vii. that Plaintiffs are e,ntifled to their costs, including a reasonable
attorneY's fee;
c. Upon all declaratory relief Plaintiffs obtaiq Plaintiffs petition for an
order against Defendants, ffid, on reasonable notice, against all other
similarly situated defendants, to show cause why further relief should
not be granted forthwith; and
THE REMAINDER OF THIS PAGE HAS BEEN LEFT BLANIC
b. Entry of judgment determining that the warranty deeds (either general
or special) delivered to them are invalid and declaring as follows:
1. that another person (or entity) holds paramount title to the
subj ect property;
11. that their grantors breached the covenant of seisin;
iii. that Plaintiffs have an immediate right of action against their
grantors;
IV. that Plaintiffs are entitled to damages;
v. that Plaintiffs are entitled to equitable relief;
vi. that Plaintiffs are entitled to supplemental relief herein; and
vii. that Plaintiffs are entitled to their costs, including a reasonable
attorney's fee;
c. Upon all declaratory relief Plaintiffs obtain, Plaintiffs petition for an
order against Defendants, and, on reasonable notice, against all other
similarly situated defendants, to show cause why further relief should
not be granted forthwith; and
THE REMAINDER OF THIS PAGE HAS BEEN LEFT BLANK..
d. That Plaintiffs, on behalf of themselves and all Class members, be
granted any and all other relief to which they may be entitled'
Respectfully submitted,
Gtr.TELRODRAC,ON OWEN & SIERMAN, P.A.
425 West Capitol Avenue, Suite 3801
Drake fufann, fu'ftans3s Bar No. 87108
Crhristopher L. Travis, Arkansas Bar No. 97A93
and
SeanF. Rommel
Arkansas BarNo. 941,58
sr6mm el@ylyrommel. com
James C. Wyly
Arkansas BarNo. 90158
jwyly@wylyrommel.com
WYLY-ROMMEL PLLC
2311 Moores Lane
Texarkana, Texas 75503
(903) 33+8646 (telephone)
(903) 334-864s
@ax)
Rock" Arkansas 72201
(5p1) 376-3800
d. That Plaintiffs, on behalf of themselves and all Class members, be
granted any and all other relief to which they may be entitled.
Respectfully submitted,
GILL ELROD RAGON OWEN & SHERMAN, P.A.
425 \Vest Capitol Avenue, Suite 3801
Li e Rock, Arkansas 72201
(5 1) 376-3800
____________________ __
Drake Mann, Arkansas Bar No. 87108
Christopher L. Travis, Arkansas Bar No. 97093
and
Sean F. Rommel
Arkansas BarNo. 94158
srommel@wylyrommel.com
James C. Wyly
Arkansas BarNo. 90158
jwyly@wylyrommel.com

2311 Moores Lane
Texarkana, Texas 75503
(903) 334-8646 (Telephone)
(903) 334-8645 (Fax)
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When Recorded Return To:
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Wonk used in lll1Iltiple sectiODS of this document are defined below and other words are defined in
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together with an Riders to this document.
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10059901.54
ARKAHS,6.s.5ingle Famly-Fannie Mae/F'nlddle Mae UNtFORllINS'T'RUMENT
Fonn 3OQ.4 if 01
-r:m.. __
l"Ipt' 11115 ....t:
VMP'IoIORT1WE FCRM9. (lDC)Q 1-7291
EXHIBIT
I A
t00s$=EG
Len&f'saddrgssislB{Og
VoD Eas/ED,
guile
1000, IrtrhG' Ce E26I2
Ifider is tbe lrcriggee
urder thb Secrrity Instrumt'
(g)
r{ti6.rr
mcans tUe porait*ty *ts ttgi.O Uy Bormwer aDd d&Ed [aauary 23. 200 5
Tt NotcsEEf &atBotl?werowo
Lgful?lo EUIIDBED
rEETiEEN EEOIIEIHD
3I{D 00/100
Dcllars
(U.S, $ 215
|
0Og.0O )
plus intscst, Borrciqar hes prorrised to pay this dfbt in tcgular ?eriodic
i'rr,*rry,*
"
rry
be &bt inirll not Lrsr tban 02laL/?036
(E)
*hoperty,
r,ras 6.;;.p."y tbrr is descriH below urdEr fu hsdilg 'I)zlsfer of Rights ia the
Property.n
Oii;;"
!.ea,s &e debt wirtmceil by &c NoE,
pht iare,rest, aay
PrsPrJtfol
cbarges and lato charges
# o*o tbe Nors, aDd all ium$ due urder this Security Ils-tnm1 ilrs
irtgr;st.
(q;iid;',""-; .Il Rid;;thb S.rty lfltuldeot thar are exemed by Bonower.
The followiag
iUi* *. to be exccutsd by Bcrnower [check
bor u apll+ableJ:
EeOinsulteRateRialr
f]cooootinit*uco [slqdHoneRider
Effi;-Rd; Eplr*.auaitDevdopueo'rud*
tJ14Farrirypider
E VA Rtd;- tl
gi{Ekly peymerr
Rirter l,-l Om14 tspeciryl
(E)
nAgpLteable
Lnrn affiaru 8I cmhouitrg appticabie fedeml, SE8e ailt local sBtutes, reguladone,
ordiaarcas aaa aerniriisr"tivi
nrlcr aad oniers-(tdi br.ve rbe effect of le*) ar welt as all alPiicable fraal'
rerypealabic
j"dkial
einiora.
fU
rcimu fty Axfociifui mes, Fec* rud AEg$itlffuB'mcas
all dlEq fte3, ast68mntB ad otber
;ilr'" ,bd ri 5p5ga on Boiower or &e Propcrty by a cordonirium arsrciatirot hommwuets
asociation or aimilrr orEmizatim-
tJ)-ip".nr"dr
1t-dr-fmr*a{ Eeaos any EandEr of fuds, sftss
ttrqa
a tralsectio[
otiginztcd by
iil*r. O"A cr
gioihr
ffiirrg6,
wUirt is ilitiatEd ttrou$ ar cleco@ic tstloiral' telcpnonic
ir,5lrm,rt, cd![pftcr *;grrd.rrpt Eo as to order, in'tng]
qds6z' a frnascid instiutionto ddit
* *oit .i ,c&m" ua frru iodrro*, hil is ffi limitd o, poin-of-ulc tranefat, dtoroeted teiler
886i!e trffitios, nausftcE initiated by tetdpbosa whe trnsfcrs, aad robmated dearirElotsc
ffi.
cq
g**
[@n ms those items &d are deacribod in sestioa 3.
(t)
|*&edleneorr proceeds.'DearE srry coqpcosdioo, settlemeul aEtd of daraages,_or
procecds paid
ry
rry fm perry (gffi O* ius.-""
i*"esits Fid
mder the mvcrages desuibed ia Scttion 5) for: (i)
affi O, or aistitrgtiotr of, tte Prqcrry; Gi)
ioo6cmatlon u o6cr takius of
'II
oI
"ry
part of the
Pmpcrty; (iiq cofive,yare ia ilar of mrOi63*ioq
tr (iv) miccpreserdAios of, rr osrissions 8s to, tbe
sehe ard/or csoditim of tle Propcrty.
0[, "Mortrrge
luur:rneer oca; i;$tr@*
Proecelg
l,odr agsid tbe Dryryneot of, or dsfault oru
tkLom-
fXf
-.G"a6
Baynenfn m4 6c reflldy rcheeilcd @mr dBB for
(i) priEipsl ard isierest urder the
ilrt", phrs
C0 d
@rds rder Seetioa 3 of &ir-Secudty laetruofft'
.
l0) 'gp$r;;
nir* te neat rs*e Hlmt ProccdilrEs Ac (12 U.S'C- Sectior2601
et seq.) ard iE
id**Srg regulariol, nryrfrUm X
p4 C.FX. ?,fi 3500), a5 &ey udght bc affndd Aom ilmc to
i-", * any-a6ltlomt o, *i"*o, f"gi"i*iou or rcguiatbn that
g?ry.ry sage subjed rnafter' AE used
iD thls SEddty IDEE.o,r.crl1,
,RESPA'-t&s
to aU rcqdrcrtenh ad lEctricfioas ftat 8e imposcd in regad
;;;frd"*ld raatea mrtgaEe loano eveo if tb l#il does rd quaiify as a 'fttually related rulltg8ge
laan" udaEESPA.
o,,*_61*
loo,eeor'{
PTr? d tE
U FNt 3004 1t01
Q+1nq
pt*,
..
. '
Lender'saddre:ssis 18400 von Ke.::ma.n, Suite 1000, !rr.:le, CA 92612
Lender is the IIlC>rtglgee under tIlis Security Instrument.
(D) IfNw" means the promisllOty note signed by Borrower and dated Jenua.rr 2.3, 200 5
The NGte states !:bat Borrowai' owes Lend:r nro BtJNI)Ul) TaOUSAND A1m 00/100
DoUars
(U.S. $ 215,000. C)O ) plus interest. Borrower bas promised to pay this debt in regular Periodic
Payments and to pay the debt in.full nO! later than 02/01/2035 .
(E) "PrOperty" means the propen;' that is described below under the heading "Transfer of Rights in the
Property."
(F) "LoaD n means the c1ebt evide.nr:ed by the Note, plus int:ere!:t, any prepayment charges and late charges
due under the Note. and an Sums due under this Secnrity Instrument, plBs interest.
(G) "Riders" meam; ill Riders to this Security Instrmnent that are executed by Borrower. The following
RidaS are to be executed by Borrower [check box as applicahle}:
o Adjustable Rate Rider D Condominium R.idt:r B Second Home Rider
B
Balloon Rider 0 Pllmned Unit Development Rider 1-4 Family Rider
VA Rider 0 Biweekly Payment Rider 0 Other(s) [specify]
(B) "AppUcable Ln"tI means all controlling applicable federal. state and local statutes. regulations.
orcliuaDces and admiriistrative rules and orders (that bave the effect of !E.w) as well as all applicable fInal,
ncm-appealable judicial opi:nWn&.
(I) ttComlllDDity ADociati&J1 Dues, Fees, aDd Aaessments" mealIS an dueS, fees. assessments and other
cllarge& tbat .ue imposed on BoImwer or the Property by a condominium association, homeowners
association or si.milaJ
(J) ''l!lectrollic FbtIs l'rrm$fer" means any ttansfer of fDnds. other than a transaction originated by
chcck. draft, Ol'" similar paper.iD.stroIDe:at. which is iDitiate4 tbrougb an electl'tmic: te:rminal. telephonic
iDstrumc:Dt. c:owpatt:, or lmgnetic: tape so as to ortier. illsttuct, or authorize a finaDcial institution to debit
or credit an IICCOIlDt. Such tf!nn includes, but is not liIni.ted 10. poiDt-of-salc tran&fers, automated teller
mm:bine t:ransactiOlJS. trmJsfers initiated by telephone. wire tnI11Sfers, and automated clearinghouse
trcID&fers.
00 "Escrow ltemr" means those itelDS that are described in Section 3.
(L) "MkeUaneous Proceeds" means any compensation. settlement. award of damages. or proceeds paid
by any third party (otber tban insurance proceeds paid under the coverages described in Section S) for: (i)
damage In, or destruction of, the Property; ('ll) CODtJemnation or other taldng of all or any pa.-t of the
Property; (iii) conveyam:e in lieu of condemnation; or (iv) mi.srepresentations of, or omissions as to, the
value and/or CGDdition of the Property.
(M) "'Mortgap baJ1llUce
M
meaDS insurance protecting Lender against the noopayment of. or ddault on,
the Loan.
(N) "Ptriodie Payment" meam the regu.laIiy sc.bednled mronnt due for (i) principal and interest under the
Note. plus (11) any amounts l,lIIder Section 3 of this Securi.ty Instrument.
(0) "RESPA" means tile Real EsIate Settlement Procedures Act (12 U.S.C. Section 2601 e seq.) and its
regulation, Regulation X (24 C.F.R. Part 3500). as they might be amended from time to
time, or any additional or successor legislation or regulation that gOvem!i the same subject matter. As used
in tb.i6 Security lIlstrument. "RESPA refers to all rcquirements and r:;trictions that are imposed in regard
to a "federally re:"bm:d mortgage loan. even if the Loan does not qualify as a -federally :related mor'"..gage
loan" under RESP A.
1005i901.54
Form 3004 11&1
00000591.3
Cr[te*05!iT
(P)
"sucxror
ttr I,te,*s
sf Borrowsrt
*
*nffi.tf;ffitffiff,Hffi*ther
or
il frrt
parry Ua" assusd
Bomwer's
obli8Btious
u
TRA}.ISFB.
OF XTGHTS IN TEE PROPERTY
This s+c0r,ity
iffitrsstr
stcules to l.coder:
(i) the repalme*
of the Loan' snd au rcnEurals' exte{tsions
znd
modifrcatiocs
of tbr"-N;;-; dii
tht'-'e"ft't':*
..of
Somower's
covetrerts
a:rd
Egreef,ffi
r:nder &ie So1}; mt**it'-ru
-the'Note.
For this
Pryose'
Borrcru'er ima'ocably
!onse'cs,
n,,,ts ,rd";#d;
I*i* #;il;i,c
a*oi;ua^
p?opertv locateC iD the
C+r:nty
of
?slacLi
:
ffie
cf Bcccrding Jutirdetbnl
tNre
of furardiag Juridiaionl
tfit26,BI,ocErr,crvgnesoortDDlEIoEsBEEeIEYoEEoirEI{IErr.EBogK,
EOI.LSEI C@Hinr,
LRKStrSiS'
Parcd ID Nurrbn 338-0 I 7 -00 -406-00
52 Do've Ct6.t
ciE
Hort-h IJttIe EocI
("PrcpEdy Ad&,es'):
ueie onreuiY Lss the ad&ess of
lstrr*l
tgwl| ArtEosas TZLL6 tz$
frdel
TOGEiEER. Y{m{ all fre ioprovearemr
!ol{ ff hereafu
ereded oo thc
ProPsffy'
a'd ail
eaterrEs, aFef,rttlsooect
;Efr'G *"
5 B"*ft"
a put of- &e
property' AII ruptacrcnts
aad
additioos thall also b.;"t b'
hit S*fry U*tttm"Au
of tne icrcgoilg is tgfened to i.u this
Seauity Inrrma aE the
oProPErtY'n
BORROWERCo\ENANTSSatBorrowct
islasrfirliy*rygf
thBEEtstEbEftby
cooveyed ardhss
rbs rigfu ro t 1gggc! Srr(
*d
".*"y
tb Pryety d i[d ep ?rroperty is
rrrleIElrob'rcd' except for
mmkaaces
of .,ffid. B.** * mtia6 ad-rpfl d61nd
g'ffify te titic ro &e Praperty agahg all
rbt
-;dt
-dt"
srbixt !o auy engmkacss
of rcc*d"
THis sguRIIy
E{srRindE}E
cdi.aro fu ccnemffi tur udional use ad soruaifErm
covenmb wi& linitcd
r*.j:d;
h'
ju'isoictim to cstrsttfits a unifonn stntrity
instnrm:s coveriag
real
pmpetty.
'--'iJiiFoRM
co\ENA}lTs.
Bonowged
Ides co'veosrf
aad qgree as foflocn:
1. Payment of hcipal" I-EErEst,- Ercraw tttBl' h+8]'lElEt
chrrze* 8nd IJte charges'
Boros,Er sball pay *l* #T"
n"*,p-f
?f lrrtd
inerait on"-tle debt eviM by 6c Note ard any
prpsygear cbarges *d 11f,;1grg;
&'rrdt
Pf
Ngb. Bouona sball also
pry fulds fsrEscrow
Iteros
ffirod u sccrim 3. R#,"BG-mt
at xoi au ftis seeudty lrstrtmglil $all be E}ade iD u's'
;ffi.;-ffi
if
ry
er.kor oth:r inetrmcurq*vsabyl-esd;aspErrldEndc&c
Noie ot tbis
<'**ffi;Ea
1oos99o15{
4*(A8
rrr*r
Ft3ted t5
-[ Fotm 30O{ t}01
.l
(P) in Interest of Borrower" meaa& any party that bas taken title to tile Property, whether or
not that party bas assumed Borrower's obligations under the Note and/or this Security Instrument.
TRANSFER OF RIGHTS IN THE PROPERTY
This Security Instrnment secures to Lender: (i) the repayment of the Loan. and all ren.."'Wals, enensions and
modiflClltions of the Note; and (ii) the perfonnance of Borrower's covenants and
agreements under this Secut:ity Instrument and the Note. For this purpose. Borrower irrevocably
mortgages, gr1l1lt8 and conveys to Lender the following clescribed property located in the
County
of
Pul&&ki
of ltccotCiing Jumdk:tioll]
[Name ofR.ecording JuriBdietion]
LO'1' 26, BLOCK 11, OVERlmOOlt ADDn'::tOR i"O 9E CIn OF 1I10B%El LITnE 2.OCK,
POIASlC: COONn', ARDllSAS.
Parcel ID Number: 3311-017-00-406-00
S2 Oove C2.r
North Littl.. aock
C'Property Address"):
which ctmeDt1.y has the address of
[S!rCI!t]
(City), Arbosas 72116 [Zip Codel
'1'OGE'I'HER. WITH all the improvements DOW or bereafter erected on the property, and all
easemeuts. 1I.ppmtenance&. and fixtures row or a part of the property. All replacements and
additions sba1J also be covered by this Security IustruIIlellt. All of the foregoing is referred to in this
SecuriIy Instrument as the IIProperty. II
BORROWER COVENANTS that Borrower is lawfully seised of !:he estate b=reby conveyed and has
the ri8bt to lDOl"tp8e, gram: and convey the Property and that the Property is nneneumbered, except for
enr::umtr.mces of record. BOtTOWer warrants and Will defend generally the title to the Property against all
claims and demands, subject to any eDCUIDbratK:es of reconl
mrs SECURITY INSTRUMENT combines mrlfotm cove.tl8l1t8 :fur cational use an:1 non-uniform
cove.oants with limited variations by jurisdiction to cODStimte a nniform security insUwneot covering real
property.
UNIFORM COVf!NANTS. Borrower and le:nde:r c:ovenant and agree as follows;
1. Payment of Principal. Interest. Escrow 1tems, Prepaymeat Charges., and Late Charges.
BonoweI' shall pay when due the principal. of. and inlereSt on. the debt evidenced by !be Note and any
prepaytneDt charges aud late charges dut Jmder the Note. Bo11ower sbal1 also pay funds for Esctow Items
pursuant to Section 3. Payments due under (be Note aDd this Seclwity lnstnunent shall be made in U.S.
currem:y. However, if any check or otber instmmeat received by Lender as payment tIIlder the Note or this
-'C WdIIIs: 1005990154
_.alAR) (0108)
PlD6hf Fonn 3004 'U01
00000517
,i."1*ii*=gh?
Security Insurmert is ret,rD:d to trnder rcpaid, trds nay reguirc that ary cn all subsguent
palmeils
d* udcr Ee Note *d A;-s*ntty
i*dr*rt be Inade in one or Eore of tte foporying
toruu' as
selectod by Leo61 Ol
ffi;-Oi#*y
"tO*'
t"i
"otmta
cbe'k' benk dwg tsasurer's
check or
cashicr,s chcck, pmvided any suc[ check is dpw;le",
61 ilstinrrion
wbose dt'postts art in*red by a
federal BEenr?, ir"u'rr*"firy,
or ediry-; or(d) EecEolic
Fusds Trarsfer'
pcyner[s
.* drd;;i"J
uv',lsuler
wtcn reccived at tb lmation deei$]aed in the Note or at
such oihcr locetion as usy be deeignsted B
rroao i".,c*aa*"
witb he mtica
provisions in secdoa
15'
Lmde'Eay 1grum .rry
p"6;;;rni.f-pyr*t
if &e payo?Enl oI
petial payofnts are imufficienl to
brng frc Loan cuncu L;rdff nnal'acoryt
any p'y;; oi paniar
lryt*t
insutrcieot
to bring the ['oan
cnrrrst, wirbgut uoir* oiaoy JEu n*i,,"ai;-pttiru*
* is
+gta
to refuse nrch
payaeat or parial
payneob in the firlre,
m--fioffit ot obligareilto-appty
such
qaJFEof
.at
tbs time su&
payrerts are
acceptcd. lf each
periodi;
fryr* f,
Tpltr
as of iti'sr.Uuhd fie date, thsr Lend'r Desd not
Pay
inseres o unrylid nar.
-i,ilE,,
,"y noU ilsh ;applicd
BO*
oom.
tfwer
mles payrnerrt to bring
rhe Io* c*rd. If B"r";;-d"*
ont'ao *
"iuioTr&*rrute
period oflime, knder sball elther apply
such fir* s.rcfim tt*rtc ,,orroJ*er. if m apUJcarfitr,
st"['fond' wilI be app]ied r rbe c,t'taldinc
pdrcigal bahose EDdr the Nott mtairttry'Pnor
to breclosure'
No offsA or slaim which Borrower
night hare Dow or ir ftt il;;tsp*t
iffi.tuat t*iot Borrower 6om ffkirg Pay,lrts
due uder
tbe NotE 6ttl 6i8 seerity instrmcd
"r'petf".mi,g
6" mvenmts and ageeuenrs seflrsd by thir secutity
InstrT:ttc,rt
?- Apptiedion
of ?ryments,*|P*tq
Except as
$ryisc
in this ktioo 2' all
paymds aceped *d ,ppii6;t I-Ao tUU
E
ufptid iu &c folltrwing.ortlcr
of priorityl (a) ir'terest
dus under he NoB O) #;rprr
et t'det
'h"
Nob;
G)
ryP'ry-ee
udcr Sedim 3' Such payoetrts
sla[ be
rylied
to ea4 t,,lo&c Pai4rdin frs ordtr iu uni.U it bHre drc' 4oy resaittiry alDoxns
sha[ be.ryptied fE$ b i* arrg.q'r*"ra
to ,ryoor"ur*ott
due nndcr eis ssilrily hstrusffit' aod
G;-rffiGPrildPdbtlaftsfth'I'Iote'
-
^
u-r:- ha*i
-,l,inrr
i*rr,rt
r I^Erder reccivcs ;pryr*
fim Botlows for a dinqgcnt
Ycli$ic
Pdyryt
whi6 inchdes a
suficic0( Mrst to pqy
ry
1m cbarge ilEe, tbP
Pa}M
1ry
bc- qutd
to tbe ddiaqued
payrneoc and
rhe IaE cbarge. If mre tfi; P"ioib P+''cnti;'"&Eodig'
Iriler uy apply ey paru*t received
fum Bor:,,*
O U, ,eryr-t of Ac
pctiiac
Pa,mefis if, ,oa
P
&s.."tsd 6ah eacL
Palt*'t
can be
paid itr fu,, To tu ,-d'ft;;r**
;1j.n6 or
Fr,r"ut
h
ryptied
to tbs tufi
psttnEilrt of one or
ruor
paiottic
P{Jrtrtsts,, EpcE ;-fo; ,ry 6t rggfUa
"
-f
latc rtsgei dtta Yohomy
p6pay,er6 th'll
G-"ppfitOnt* toaryPE@aynEnt
q*r"
aad 6eu as descdbed in the Noe'
A.ry appiication of palErents, insrmce
p*tttdt, or Misce[aaes88
lrocee&
to prircipd dne ulxif
the Note Satl rct ?sd'"ipotE"*
Se & &te, or 6soge ee ffiutr[' sf tle Peciodic Pa]m$ts'
3. FEds for rsrroiilil
Bsrmper rhall
pey b-Lcder on tle &y Periodic
P+'Tms are
drle
uiltcr tbe Note, udil &e Noe is paid h frII, a stnn'ific Tuds). to,provirie fo'r paynem of anaounb
due
fon
(a) trxes a'd *rg'i*"
ff"th* itd
q&ich'cos. arain priority over this sectrrity Iutrumerrt as a
tiea or ryr-rmhznee
* t"n"prnyt Ol
l*r.illd
pryr"t-
9i
gPd ltots on fu
Proputy, if any;
(c)
preoium frr any u fii-nsuirs1q;'rlru,rra_ly
ii** unos
-secior
5; ard
(d) MoteBgie Ins:rance
DrcmiuEs,
if ury, * ,ry;,rr--pryrbc
by rorrowa to I3oder h lien d tbc payuco_of-Mortgagp
irffi'piJrriir-i"l*tar"i
wu m, pro'ieiors of Sectioa 10. TIBe iemr arc called
oEscrow
It@s.,
At originatioa
*
"
,q, ,i* U*rg i* e"." tf At [.oan' t cader may rcquirc that Coannusity
Assoeiatioa D16, ft6 ana isseesoesf6,
if ry, G t**t"O by Bouower'
ad such foes' fees ard
assessucns
rhelt $s. Ekro* I@- Bolmmr slatt prompdy
ryryths ry"
all mtices of amourb !0
be paiil uugsr thia Srsd;Eoffocrer
Ehafl
puy rt A& eEFurds for Escrow Itcms udess 1;ldEr waiver
Borroo,Ers
obligatioa O pty tb Frnd' 6r't"y * all Escmw iffi' Isder ray waive Bol,osretr's
obiigatioa h pay E0 I-#'iuril
;t rr3, or Af iU"" Itcos at ary tioc' Any srch waiva rnay oaly be
in writiEg. il tbs
"\,ro1
of aoc6 w3ivctr, s@oqm shail pay dimctiy, c&es ad where payable' tbe emourts
-e,*"-,*q.-,
JH:T:
PEo4 st 15
@"+tlB
p,*r
Security WstnmIent is returned to Lender unpaid, Lender may require that any or all subsequent payments
due under !be Note and this Security Instnm:lent be made in one or more of the following forms, as
selected by Lender: (8) cash; (b) mon=)' order; (e) certified check, bank check. treasurer's check or
cashier's check, provided any such check is drawn upnn an institution whose deposits are insured by a
federalageru:y. or entity; or (d) Electronic Funds Transfer.
Payments are deemed received by Lender when received at the location designated in the Note or at
such other location as may be designated by Lender in accordance with the notice provisions in Section 15.
Lender may retum any payment or partial payment if the payment or partial payme:nts are insufficient to
bring the Loan current. Lender may accept any payment or panial payment insuffIcient to bring the Loan
current, without waiver C}f any rights hereunder or prejudice to its rights to refuse !ruCh payment or partial
payments in the future, but Lender is not obligated to apply such payments at the time such payments are
accepted. If each Periodic Payment is applied as of its scheduled. due date. then Lender need not pay
interest on unapplled funds. Lemler may bold such unapplied funds until BotTOwer Ill2l::5 payment to bring
the Loan current. If Borrower does not do so within a reasonable period of time. lender sball ei.tber apply
such fuuds or retw'II them to Borrower. Ifnol applied earlier, such funds will be applied to the outstanding
principal baIance under the Note immediately prior to foreclosure. No offset or claim which Borrower
might have now or in the future against Lender sbal1 relieve Borrower from making payments due under
the Note and this Secmity Instrmnent or' performing the covenants and agreements secured by this Security
Instmment.
2. Applieati&n of Payments or Proceed&. Except as otherwise described in this Section 2. all
payments accepted and applied by Lender sbaIl be applied in the following order of priority: (a) interest
due Wlder the Note; (l principal due under the Note; (c) amounts due UDder Section 3. Such payments
shall be applied to each Periodic Paymc::Dt in the order in which it became due. AIry remaining aInOlmts
shall be .applied fna to late chaIges. second to any other amounts dDe under this Security I:nstroment, and
!hen to reduce (he prlncipa1 balance of the Note.
If Lender receives a payment from .Borrower for I delinqnent Periodic Payment wbicb includes a
sn:fficic:nt amotmt to pay any late ebarge due, the payment may be applied to the delinquent payment and
the late charge. If more !han one Periodic PIyment i& outstmldin,g, l.e:Dder may apply any payment received
from BoITQWC:r to the repayment of the Periodic Payments if. and to the ex1eut that, each payment can be
paid in full. To the cxtem that any excess exists after the payment is applied to the full payment of one or
Periodic Paymeots, such excess may be applied to arry late due. Vohmtmy shall
be applied first to any prepayment charges and then as described in the Note,
AIry application of payments, insunmce proceeds, or Misce
1bm
eO'lJS Proceeds to principal due under
the Note shall not extend or postpone the clne date. or <:han&e the amount, m the Periodic PaYlll-"1ltS.
3. Funds for Escrow Items. Borrower &ball pay to Lender on the day Periodic Payments are due
under the N()te. until the Note is paid in fDD, 11 sum (the "Pwlds") to provide for payment of amounts due
for: (a) taxes and assessmenl1J and other which can attain priority over this Security Instrument as a
lien. or e:nc:mnbrmlee on the Property; (b) leasebold payments or ground rents on Property. if any; (c)
premiums fur any aDd all insurance required by Lender under Section 5; and (d) Mortgage Insurance
pretni.1IlII&, if a.ny, or my sums payable by BoJIOwe:r to Lender in lieD of the payment of Mortgage
1n&nraDce premium& in -accordsnce With the provisions of Section 10. These items are called "Escrow
Items.' At origination or at any time during the term of tile Loan, Lender may require that Community
Association Dues, Fees. and Assessments, if any. be escrowed by 1'Jotrower. and dues, fe--..s and
as.sessmenl:6 shall be an Escrow Item. Borrower sbal1 promptly furnish to Lender an notices of aznounts to
be paid under this Section. Bonower shall pay Lender (he Funds for Escrow Items unless Lender waives
Borrower's obligation to pay the Funds for any or ell Escrow Items. Lender may waive Borrower's
obligation to pay to Lender Funds for any or all Escrow Items at my time. Any such waiver may only be
in writing. In the event of such waiver, Borrower sball pay di.rect1y, when and wbere payable, the amounts
1005990154
Fcmn SOO4 'l101
0::)(100598
rlti0*S5t::
dne tur a:r.y Escrow Itsrs for whidr payamt of Funds has bc'n rzivcd by Ijldel aud' if Letrller naguires'
sha11 frooish ro IJrlder **rptrittd";t,c
srich payr.tt within
grch
tinae
peiiod aB LEndtr asy reguirE'
Borros,er's obiigation o iuFmAp.i-*o
anO io proviOe recsiPtl-ry for all pn'lposes be deerned to
be a coverail anU aerocrnsJ.*uirtia
h this Securiry iristrunenl is tUe pltan
:Tl:ry rygrcesentu
is used iu Sestion 9. If Bonowcr is obligarett to pay eroo* Iterns diretly'
}tlrsury
to a
-waiver'
and
Bonow$ fails to pay the amouot due forh Escron'ilem,
I*nder may exacisa itc riglts undel Sectioa 9
anrl pay $i& moust and Borower shall tbsn be obligated
ruda Section 9 to repay to l*nder aay su&
arnouDt. Lend:r uay rx,okc 6c waiver as to ary or
-r[
Eo-- ltans at a4'
{m!
!y e,.rytit
given in
accordrme with Secticdl
15 ad, upca such revocatioa, Borroiver shall pay to Lcnder all Funds' and in
$lch arEouts, &at afe then reguired rmder tbis S*tiou 3'
I-eg6gr !c8y, at *y tirol*Gt ad bold ftIIdE i! 8s ar4cutrt
(a) e'ilffcient O perrn'it ixoda o appiy
rhe FrEds at tbe
time
,pofi; uder RESpA, ed (o) ad to exeed the mximum ara@$ z leader can
reqgire BnSEr BESPA. I.cnder
shrll esti!il8te the E;fu of Fr:nds due on &e baeb of cr:rrent data and
rea8o,nabl,B cstirEares oi oeenAitro. of futuru Es$ow Ircoas or o&erwise ia asdance wi& Applicablc
Law,
TheFrt"(bshall!gheldiamimtiatioan,hosctiepmisreinerr$dbyaftderal8.9"'.'y'
hstn*mtality, or eariry ilr.Jrdh,C
I-d", if l-enda is rm insliUtiol wbose @sita
ue ro issred) or in
*1,-f"or*f fi"* L*r &#-. L5;; sa[
gppiy
the FuDds b pay tbe Escfi]w Iteos Bo latff, AaE the time
G"*
,r* RBSPA. I*rdt Ehall Do{ Oirgi Bo6oq'er for 5glOitg aI}c applying tbe Furds' aamallv
annipiog tXe cscrow ."*r;qo1
;"ifyirg ne-Bcr,oe ltems, unless
lrrrder pays Bormwer iaprest oa &c
ffi- *ft epprr*ur* rawFurc-irlori
to s:ahc so& a chaige. udql aa agreemrc is B#k is writEg
6 ,tppli-r5fi'f-,6*t*rirt
"t
b be patd on he 16, l,endcr rhall not be req,ired to pay Bcrror*er
il-ffi;
;
"midr
ou 6e Fmds. Bfuoncr atd Isdr cas sgree ia withg, howerva', ttat iagest
trUE p"ia * thr f"r6-,-I*d; eta[ givc to Boffo*,t', without c;*ge, an armral eccfiBting of tbg
Funds.m reqrtoBd bY RESPA. __
If
'Ooi
i" a inplus of Frffi hcld itr e&row,
u defincd dec RE$PA, Leoder
s'hall sscoud to
Bonows for the cxms n ar in roouo-* wit[ RESPA, E tLesl b a sborEgc of FrUr& beld ia-essow'
;d.fi*d-rk RESPA l.crrdcr shall Drtry Bct$clcraE toqdrd
'y
RESPi., aad Bonower sball-pay o
IdEr fu arafid rr"".ry t"
",;b
op ti O*tCe h scco16ap silh-RESPA" bqt itr E0 :ome than 12
,*"thly p"yrffi. If eefe h . ef"i*iy of Fmfo-bdd
ia escrcw' as dcfircd uodcr RESPA' Iandm ehall
-*dfy
id;T'a; *+rir"a ui nesr+3rO
lry.*
shalt pay b Loder tbc amual rcssd.y to mak
,g ti" a.n"kr' in acbrO*cc witr RESPA., hi in m ,oore th,o L2 ooa&Iy
psym6'
' -Up"o
p*,6*r iafnll of all ErEs semrcdby this Serrrity iastrrms' !&tsr
ehall porytty refuid
to BortowEi arry Fnnds held by Lcodcr
rL
Charge*; Uens eorro** OrU pry ail taxes, ssssssrtreoEr chalge, fing8,- aod imposilions
arribuslle to-Se PrQerty c,hict ce agaia
dri*ity
over 6is Seutity
E
*"d[ll tcas&old pa]'stEsts or
gnmd rcau on fbe
prop:rtf,,
if ,ry, adt Co;Elttdty
assoU4ion
puet,
I*'
d Aseessmcnts, if uy' To
theextcot &8t theseiffi me Escrow items, Borcwersatl
py effih theuaamaprovided
inSecdoa 3'
Bono*tr *O prryUy Ct tergt ad Em 6ie.h lrt por*ity oyf
rys
Seffiiiy
tlsrurcnt unless
Borrow*:
(a) agm ir ufrt{g o fhe
;8}rg;8
of the obligsioa saEtrrad
b'
tut lie[ in a
rnsnneracceptable
ir:-*ao, 61 *iy *" 1"r,g;Bo$#r
ie perfornins sEch aeraeneo5
O).c.Etcds
tbe lia ia
Sood
fai&
;r,
";
d,J*d*S.ite *dt**tdt of ee licn i& legai p1oeeed;,g whicb in Lcsiletr's
qinion op'rate to
plts\red fte eoforcemed of &e iim whilc 6ose pro"*Aings are peodiug, but oa]1 Etrtil s'ch pmcerdingg
ae conclude{ or (c) secnrx fron &e boklet of ihc lil! 8r agrEgaed sa!$oorl to Istder srMinating
tbe Iiar lo fhis secudry InsFunEDr. if Idcr ffiEiDee oat any p8t of the Prpettl' is $bject to a liea
utich ca3 a6aia priortp over thir SesunR lflstnmed, krdff uay
give Borrortr a mtice ideorifying
gbe
)c,**-{i,fr-
looseeolar
0' Forn 3004 1,0'l
@oe{aB
ot*,
6aSaflS
due fur any Escrow Items for which psyment of Funds has been 'waived by Lender and, if Lender requires,
shall furnish to Lender receipts evidencing such payment within such time period as Lender may require.
Borrower's obligation to make such pa)'IDCll.ts and to provide receipt& shall for an pu.'1'oses be deemed to
be a covenant and agreement contained in tbis Security Instrument, as the phrase ncovenant and agreement"
is used in Se::tion 9. If Borrower is obligated to pay Escrow Items d ~ t 1 y , pursuant to a waiver. and
Borrower taUs to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9
and pay such amount and Borrower shall th.."D. be obligated under Section 9 to repay to Lender any such
amount. Lend:r may revoke the waiver as to any or aD Escrow Items at any time by a notice given in
accordance with Section 15 and, tlpon such revocation. Borrower shall pay to Lender all Funds, and in
such amoUlltS. that are then required under this Secti()n 3.
Lender may, at all)' time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply
the Funds at the time specified under RESPA, and (0) not to exceed the rrm.i.mum amount a lender can
require under R.ESP A. Lender shall estimate the amoUDt of Funds due on the basis of current data and
rea&Onable estimates of expenditures of futtue Escrow Items or otherwise in accordance with Applicable
Law.
The Funds shall be held in an institntion Whose deposits are insured by a federal agency,
instrumentality, Dr entity (inclndlng Lender, if Lender is an. institution whose deposits are so insured) or in
all}' Federal Home Loan Bank. Lender sbaIl apply the Funds to pay the Escrow Items no later titan the time
specified llllder RESPA. Lender sbalI not charge Borrower for b.c>iding and applying the Funds, annnaUy
an.a!yzing the escrow acoonnt, or verifying the Escrow Items. unless Lender pays Borrower intereSt on the
Fl.1llds and Applicable Law permits Lender to make such a clIarge. Unless an agreement is made in writing
or Appljcable Law requiTes interest to be paid on the Funds, Lender shall not be reqnired to pay Borrower
any interest or ~ on the Fund&.. :Bonower and Lender can agree in writing, however, that interest
shall be paid on the Funds. l.e1Ider shall give to Borrower, without c.b:Brge. an 8IIlJU2l accounting of the
Funds.as requin:d by RESP A.
If there is a surplus of Funds held in escrow, as defined under RESP A. Lender &ball- account to
Borrower for the excess t'ands in accordance with RESP A. If there is a shortage of Fonds held in escrow.
as defined l11.Ider RBSPA, Lend::r w.n notify Bmrower as required by RESPA, and Borrower sball pay to
Lender the amount ~ to make up the shortage in aceordance with RESPA, bot in no more !:ban 12
monthly paJmeDt&. If ~ is a deficiency of FUDds held in escrow, as defined under RESP A. Lender shall
notify Borrower as reqWred by RESP A. and Borrower shall pay to Lender tbe amount necessary to make
up the deficiency in accordance with RESPA, but in no more than 12 monthly payments.
Upon payrne2lt in full of all sums sec:ored by tbis Security Instrument, Lender shall promptly refund
to Borrowei' any Funds held by Lender.
4. ChargES; Li.... BottOwet' shall pay all tnes, assessmms, charu.es. rUleS. and impositions
attributable to the Property wbi.ch can attain priority over this Security Insttwneut, leasehold payments or
ground rents on the Property. if any, and Community Association Does, Fees, and Assessments. if any. To
the extent that these items are .Escrow Items, BoIrower sba1l pay them. in the manner provided in Section 3.
Borrower shall promptly discharge any lien wbic.h has priority over this Security Instrument tmless
Borrower: (a) agrees in writing to the payment of the obligation seemed by the lien in a DlI!Dllcr acceptable
to Lender, but only so long as Borrower is performing snch agreement; (b) contests.the lien in good faith
by. or deknds against enforc:ement of the lien in, legal proceedings which in. Lender's opinion operate to
prevent tlie enforcement of the liea while those proceedings are pending, but only until mch proceedings
are concluded; or (c) secnres from the holder of the lien an agreement sati&factory to L'"DCier subordinating
the lien to this Security lDstnlmcDt. If Lender cietermines that any part of ~ Property is subject to a lien
which can attain priority over tIlis Security Instrument. Lender may give Borrower a notice identifying the
10059901S4
Famr 3fID4 1/01
*Citt0t*tft
lien. witlin 10 days of tbe date on s&i& thd notice is given, Bcnowsr eball satisfy ttE lien or take one or
s'nre of rhe actiom set fortb sbove in &is Section 4'
kader may reqtnre
g;rro*o
to pay a ooe-timc charge for a IEal estete
gx
serificatioa and/or
tspotting earvica s* Uy LerdEr in conoecdm with rbis Loan'
5,
prspa.ty
ir**";.
i;;"; sbal1 keep tbe improvemurts
now er-'rstinr,
or hereafte't ereted on
&e 35.opaty insrcd rgri;
hr ly fire, hazanls include'i wit1in the tema 'sxtendsd
coveggl," and auy
otlsr bazards itlctsding, uur not i#tco
to, earthqurket and floods, fol u&ich Lcrder rEquisEs ir:$ra$ce.
Tbis insurance thEll be &aiEtairEd
b rhe amorrrtr
(ircluding deduciible levds)-ard
t
s."
ry"od"
s"t
Lder rcgires, flhat Lend; requires pursuart o ti* pro"airg
Pt
nDf can charge dr:ri4 the trrm
of
&e Loan, The insmace
dier p]rouiaine rhe bslra'd Ebatl be chosen by Borrswr mbject-to l-ender's
dcht io disapprow B"*";t'"b"i*.
"uia
light *aI not be exercifiEd
unreasonautv' Lender rual'
require Borowa !c pay. iu comectioA
wifl thi laan, eit[erl (a) a one-ti:ae eharge for flood zooe
deI!,riBatiotr, ccrrification End tracki4 servicee; or
(o) a oDr'tine chafge for flocd zore determination
aid cedificatiotr
Birvic* ard subscqneot
chargcs *:i iirc nmryiri.gE or_siDilrr
nhange!
occEr which.
reaeorrably raigbt ae* sucb dstmd&tion or certification, ronswr thall elso be responsible for tte
pnyrrE8t of ary fea i"e"g ty tnt fJ*,f
trtgt"t.U::uryuy
Ageflcy ia ooarectioa
wi& the
;lew ; rry tiooazno otttcninarlo, teeroting from ea objectiga by Borrower'
If Bonowa fails tc ;ai,Ei auy of the-covcragec
Aessrtled abova, itrdef uiry obtain instrarce
coremge, at |.atr,$
option ed Borrowct'r
"pDse, Irender i8 undcr no obligatiot
go pErcfiag ary
partiqrl'r
['pe
o, @fiff ;i;;er-ge, Therefor, url ccverage shall corer l$der' lEIt Eigbt or mig;hr
Bot
protect Borrower, Sogowrr', {uity
in &e Prroprt'y, ot dcoltetrts of the Property, againstary risk'
["rr? * ir-unty ,ir *ghr
drtil Br,.E
or las'coverage
rhm
lrya,
previously is efrect. Borrow'r
ackno*ledges rlat 6e *ri of Ue itrg.ce coveragp so ottaiaeA nqUt-siglifudiy
cxcced the cost of
inEuecc rbat Bcroctr*ofA
U* obairgd, AnI' amnnts disbu$ed by Iader under fris S*tion 5 shEII
b:com additiogal d61 of-Bonoster d,t"d Uy tlit Scqrily In*rmcot {bese a!6ouffi BhIt bcar i6ilerest
at the Note ,.,le troe 6r datr ;fui,nm*i ald rhall be pryable, wi& sue& iDrc$es' upon mtice frorn
I
cil{er to BorlolryEr teqmdog Ps}tod.
AII &smaoce
p.ti"*;G;* u,, Lod", and raewals of such
policies *h'n be nrbjcct to Lend''.'e
dgh'; disapEo,g *d
poliiio, oiu ircluo a-mdrrd Eorqegc clsr6g, ard shall nre Lcudet as
-*Irte,go
"A*
u ru
"&itiomt
losa paye. Lrndrr
rhrtl
lats fu richt t0 hold &e
Poiicies
and rensral
cerfficares. If
r 6r,t f
,.q;fuE ,
Borrr*fo'**r
prrorytly g;rt to Id all lEceiPs of paid prcrniume and
rermral notices. if SorstflEr-outails
any forrr of iwidrce covemge, not othErwise rcqp.ired try Lendcr''
for daage !0, or
&8tfllstion
of, &e Propcrty, src[ pollcy fuIl iaclade a sEadard Incltgage clan:se ald
slaU uroe t enaer es tDortgages and/or s sn sddifional iose paycc'
Ia the enem of toss,
-r;;wer
*hall
$ve
proqt notice to fte ins'rs*e ce'ier ,nd L?DdEr' Lmder
,ry *t p"*t of foss U rciroaOc
prodOy ty S*ro"t. Ualcss Leodir ad Borowr o&erwire agree
invritiag, atry istrruce
Frocctd$
dh1ll} ir nm to underi1'irg insgi4lce$'as
requirert by Ider' shall
; rppffi;'t=s*di*
6r rcpaf tr{ ee Pr.pe*ly, if fu re*orsfu1 or repair is annooically feasible ad
ldstr's rearriry io notfe#a" Dttirg *i, tSaf rra festsratisn
petiod. Lgfifu sball hsve &e rigfu to
[old BB& iriurlct1E*d1ufl
lcod*Us friO ur opportrnity to ilnpgct stlchhoprty to e$sure Se
smk has beeu coodeteal to Lsda't satis&ction,
provUea &d.*q i'EPegtiotr ltall bo rPartaren
;r"ptly,
i*dr; *"y dt b,*, prcce#s-for
ry_'g*
and reeroradon il.a singlc p','mffit o..io...
ryeB
;id;;pry*-
* m" **i is corryleed.. unteo 39 e$oe6d k Eadc in wititrg 66 Alplicable raw
;qriffi;oxi{ib
be paid on euch inmtmcc proceads, l^eDder shtll nut bp requireal to
pay Bormwer.uy
i$ereer or aarnings * ;; p**a* Fees for pbiic adirytgcj o1 oS1 &ird parties, r:taind by
B"**"
shen gsitr" p3id oulof rhe iasurance
proceeOs and Bhall te fre sole obiigarion of Borower' If
&, *rorrtioo o, ,c!oi, is aot ecomnicatty tasltte or Lndcr'6 securify wor:ld bc ieff" ths irsurance
;;r.dr
SrX G .ifpa r G t r. sr"ngd by tlis Securiry Irstrumcor, u&cfra or
'ot
thet duc' wih
,c,"-*St*
1oo5e9o15+
FE38d15
s
FoBn S004 1&1
@L+{,,.ry,,,,or
-- .... --
"
iien. W:rt:biD 10 day& of the date an which that notice is given, Borrower &haU satisfy the lieD or take one or
more of the actions set forth above in !his Section 4.
t.."'nder may require :Borrower to pay a (}ne-time charge for Ii real estate tax verification andfo!
reporting service ased by Lender in connection with this Loan.
S. Property IDSUTl1Jlr;e. Borrower sball keep the improvements now eY"Jsting or hereafter erected on
the Property insured against loss by f!l'e, hazards included within the tenn "extended coverage," and any
otber hazards including, but not limited to, earthquakes and floods. ror which Lender requires insurance.
This insurance shall be maintained in the amounts (including deductible levels) and for the periods that
Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of
the Loan, The insnnmce carrier providing the insurance shall be chosen by Borrower Sllbject to Lender's
right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Len:1er may
require Borrower to pay, in connection with this Loan, either: (a) a one-time c:llarge for flood wne
delermination, certification and tracking &e!'Vices; or CD) a one-time charge for flood zone determination
and certification services and subsequent charges each time remappiIigs or slmiIar changes occur which.
reasonahly might affect such cL'"IeI'min2tion or certification. Borrower shall also be Iesponsible for the
payment of any fees imposed by the Federal Emergeru:y Mana,.trement Agency in connection with the
review of any flood zone detet:mtnation resulting from an objeetion by Borrower.
If Borrower fails to maintain any of the coverages described above, Lender may obtain illSUI"allCe
coverage, at Lender's option and Borrower's expense. Lender is under no obligation to pu.reha8e any
particular type or amatmt of coverage. Therefore, such coverage shall cover Lender, but might or might
not protect 3orrower, Borrower's equity in tbe Property, or the contents of the Property, against any risk,
hazard or liabfiity and might provide greater or lesser coverage than was previously in effect. Borrower
acknowledges that the cost of the insarance coverage so obtained might signific.ant1y exceed the cost of
inmnmce that Borrower could have obtail!fld. AI1y amounts disbursed by Lend::r UDder this Section 5 shall
become additional debt of Borrower secured by this Sc:t;urity lnst:rmne:Il. These amounts &baIl bear interest
at the Note rare from the Ikte of disbursement and ~ be payable, with such .interest, upoo notice from
Lender to Borrower requesting payment.
All insm'ance poUcies required by Lender and renewals of such policies &hall be subject to Lender's
rip! to disspprove snc:h policies, shall include a stUdaId mortgage clause. and shall. name LeIlder as
mortgagee and{ or as an additiona11QSS payee. Lender shall have the right to hold the policies and renewal
certtficates. If Lender reqnires, Borrower &ball promptly give to Lender an receipts of paid premiums and
renewal notices. If Borrower ootains any form of insIlrance coverage, not otherwise required by Lender,
fur damage to, or destroction of, !he Property. such policy shall include a standard mortgage clause and
shall name Lender as mortgagee andlor as sn additiona11os& payee.
lD the evem of loss. Borrower shall gi\Te prompt notice to the instL."1mCe canier and Lender. Lender
may make proof of ioss if not made PfOlllJtly by B o r r ~ . Unless Lender and Borrower otherwise agree
in writiDg, any iDsDrance proceeds, whether or not the lltJ.derlying IDsurance was required by Lender, sbaIl
be applied to restoration or repair of the Property, if the restoration OT repair is economically feasible and
l.eDcIe.r's security is not lessened. Dering &Ud1 repair and restoration period. Lender shall have the right to
hold such i.nsnraDce proceeds until Lender bas had III opportunity to inspect such Property to ensnre the
work: has been completed to I..ender's satisfaction. provided that such inspection sbaU be undertaken
promptly. Lender may disburBe proc:eeds for the repairs and restoration in a single payment or in a series
of progress payments as !:be work is completed. Unless an agreement is made in writing or Applicable Law
requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any
interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by
Borrower shall DOt be paid out of the insurance prcx:eeds and BhaD be !he sole ooligation of Borrower. If
the restoration or repair is not economically fcasIole or Lender's security would be lessened, the insunmce
proceeds shall be applied to the sums secured by this Security lnstnunem, whether (}I' not the:l due, with
l005990U4-
Fonn a004 1101
ttt(,*'.1it
"i
the excess, if aoy, paid to Borrower. Sach insurance
prareCs shall b applicd in the order provided for in
Sstion 2.
If Borroryer abandom the Propcty. Isdet may file, rcgotiate ans settle any available inslrance
claiu and rciateC tmtters, if Sorrowu does aot respone witAb fO days to a mtice from kadEr that the
innyrc canier hx orerJ to om6 claim, then iender *y negotiae ard ssttla the clai*. TL 30<iay
period will hqgin whan ttt noii"u it ghen. ta. citb:r avent. ot lf **t acquires tbe hoperty
rmd:r
section 22 or o6crwio, nol""*o hi*y sssisxs to Lendcr
(a) Bonowm's riglts o auy insuarce
proceeds in an amouU Eot hl exceed tbe amormts uapeid under te
ryo1
or this Security Instrunmt' aod
O)
any o&er of nor*wcr'i iiG-t"tf* flar tle tlglt to any refmd of
-,ssanlcd
precriums paid by
Borrower) ruder all i*.;;"il;
coverirg tb" Ptopaty,
i*fu
as su& rigr'r ue aprplicable to ths
;;g;; rir hopc-ry, l*rOi *ry rsc tb*,rnsur.ance
prsttdt citber to r'-pair or rcstore tbe Properl,v or
;n*-r*".*r
gryiio
inOer ne Notc or &is Securify iustruoeot, u'b,et{r or not then due'
6, Occupancy.
B;** shall occrpy, etablish, aad ue the Proprty as BolTowcr's
prineipal
rcddrc witiria 60 Aryr rm m" eieflrdc;o of this Sxurity lmtruxtrnt
Td
tbull contimre to occupy the
p*p.ny
as Bsnower's
pr,*rp.r *r4""* ror.at]aast oue year aP,er
1fe
date of oocnpaw{,
ut'l* Leoder
othefll,i8e agrees iu *ttirE, GhI colsert sh3ll sDt be'ureasonably
$'ithheld, ot unless er-temuring
circtrrnstanm e,ti$ dic[. aE baymd Borower's connol'
7, Pre*erqrtion, Mrilten$ee
gld
Pmtectistr of tbe Bru'pertg
Iaspeetians' Borrower shall aot
destoy, dffige
""
iropuit a"-p.p*ry, atiow tbe P::openy to oetettqte or conrmil waste sa the
Prop-.rt'y.
'Whetber
* notiorrowa; iltdi,rg h he PloFrty, Borrsrrs sba[
*ai*hin the Property in
il;
-;
n,e*;
rhr
pr.Ffty
ft;ocrriora*ig or aecreaiing in value duc io its mndition. Uuless it is
il;;;,*d pr*rrd rs SdLn 5 ftat rpair or restoratioD is aot ecouomically
femible,-Bomower shail
proqlv r.pir a, Pr.e",l, if d$agd to avoid fttrticf detedoratiol or danage' If insnrarce or
looOioirtioi
proeeeils * p'riA in mil*ion wi& damage to, or tbe taking of, tte Prope6y, Bonawel
.f.ff bg ,.ryo*U" Or r"eirius ; resbJitrg tbE Prrycrty oaly if Lalfer has relemed procee& for. snch
Fqpono.
*m* r.y dthn;
fr.."dt
At
& rypuh
ani re*6mioa il a single
Psymeot
r in a series $f
ffi*r
pEillcfira .i A. r** ir coryle&il. ft G irsilrance or coaitemdim
procccitr_are Dot strfficid
[i
foi.Li*no
the Propaty'
gogo$Gr
is not reliavcd sf Boruqer's oHigptios ftn fre completion of
sud rcpairorrcstoratiotr
h
---+-
?4 :. ,
I-mdec or iE agcd nry makc reasurabb eseio
ryon
aod irape*iom of tbe Propcrfy' If it bas
reasonebk ,"usu, kfrcr ,ty ir"po, be imerior of fre irryrovarale
m fre Propcty' Lcmdef shall give
n*owo notie at &s tims # or
iior
to such an iaterior iaspxtioa sprifyiug such IssolE$le sallse,
& Borower's f-oru .dpplicrtion Bomower shall be in eefelt 6
dring &e I-oe
-aFplication
procesg, Bontwerr or any
fro-*
ar entitieg. acting at the dirrction of Borrover or witl Bot?ower's
krwledge or cocggt
g""u *t rirtly fatse,
tniri.cedifo,
or imccoraE infonustion
or stater:rents to I*adsr
6
fttl& o providj mCer *itU Enterial inforoation)
it corrnectioa
wi& sc Loaa. Marerial
repesmhtior'inrhrd",
hl are not iiEibd to, IqPrcsolatioDs mocemiag Bo$oc,'eds ooapancy of &s
Proe$ty as Borower's
Prbtpal
re{tidcnce.
9. Protesrion of Lend#c InErst ln &e Propsrty adl Rigtte Under this Securtcy lustrtmeat
If
(a) BouocrEr fEils to paf;6e csrfmrts aEd agrcstr;h conaioed ia fis SesErity llslltlD0eot, G)
eere
i, u lry f proding'tbet rrigfr rieEifi."rtty Aec:-eodcr's intere8t in the Prqperly ardlor-riglts uder
nX S&nity instnruenr 6d;
a-pro"=Ai"e ir ban&nrpey,
probale, fsr coademnatioa or forfeiture' for
mforccEcrt of a ]ien wlich may
,nrio prlority over &is secuxity tnstsruceut ol Eo e#olle laqx or
rugrrtations), or
qc) Bonowa bss'abadog;d frr
propgrty,
&cn,Ider tngy- do md
pay for $'batever is
r$sslahle'or
"ip*ptlre
to protest l-roIer's
ryt*s1
in the hoputy md righ6 uailer this Secufity
Iffi1ffi4, irgludi3g pmgctilry and/or assersiry the velue of he Progry. aod seuuing ad/or repairing
G
p*e-ry
l^erd;,; actiom-can incluie, 6tlt arE rct Iimited b: (alP4"rts ey suEr6
E
a iien
wbicfi bas
priotity over &is Strilriry ]$trumsnq
(b) appearing ia sourt ard
(c) payiug reasonable
r005990154
Form 3004 1tal
@{eE
e,*r
Pe.7 d 15
1m
4 r.u*itXf,r.r
t'
the excess, if any, paid to Borrower. Such lnsu.-ance pw..eeds shall be applied in the order provid:d for in
Section 2.
If Borrower abandons the Property, Lender may fIle. negotiate and settle any lvailable insurance
claim andre!ated matters. If Borrower does not respond within 30 d2ys to a notice from Lender that the
lnsurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day
period will begin when the notice is given. In either event, or if Lender acquires the Property under
Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance
proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument. flDd
(b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by
BO!'TOwer) under all insurance policies covering the Property, insofar as such rights are applicable to the
coverage of me Property. Lender may use the insurance proceeds either to repair or restore the Property or
to pay amounts unpaid under the Note or this Security Instrument, whether or not then dne ..
6. Occupancy. Borrower shall OCCUPY. establish. and use the PropertY as Borrower's principal
residence within 60 days after the execution of this Se:urity Instmrnent and shall continue to occupy the
Property as Borrower's principal residence for at least one year Softer the date of oa:upancy, unless Lender
otherwise agrees in writing, which consent shall not be 11Il!eaSOnably withheld. or unless er.tenuating
cin:omstances exist which are beyond Borrower's control.
7. PmeMration. Maintenance nd Protection of tbe Property; Iaspeetifm$. Borrower shall not
dertroy. damage or impair the Property, allow the Property to deteriorate or commit \\'aBte on the
Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in
order to prevenr the Prop:rty from deteriorating or decreasing in value due to its condition. Unless it is
determined purstW1t to Section 5 that repair or restoration is not economically feasIble, Borrower shall
promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or
c:ondenmat.ion proceeds are paid in connection with damage to, or the taking of, the Property, Borrower
shall be responsible for repairing or reatorin, the Property only if Lender has released proceeds for SIlCh
pmposes. Lerxler may disburse proceeds for the tepairs and restoration in a single payment or in a series of
progress payments as the wort is completed. If the insurance or condemnation proecedI are not sufficient
to repair or restore the Property. Bom>wer is not relieved af Borrower's obligation fOr the completion of
snc2l repair or restoration.
Lender or its agem may make reasonable entries upon and inspections of the Property. If it bas
reasonable cause, LeOOer may inspect the interior of the impro'lemellta on the Property. Lender shall give
Borrower notice at the time of or prior to such an interior inspection specifying such reaso.oable cause.
S. Borrower's Loan AppHcation. Borrower sball be in defmllt if. during the Loan application
process. Borrower or any persons or entities acting at the direction of Borrower or with Borrower's
knowledge or consent gave materla11y false, misleading, or inaccnrate information or statements to Lender
(or faUed to provide Lender with material information) in cotllleCti.on with the Loan. Material
representatiOJlS include. but are not limited to, representations concerning Borrower's occupancy of the
Property as Borrower's principal resIdence.
9. Protection of Lender's IDterest in the Property aDd Rights Under this Security Iustmmeot. If
(a) Borrower fails to perform the coveaaDtB and agreements contained in this Security Instmment, (b) there
is a legal proceeding that might signifieaDtly affect Lender's interest in the Property and/or rights UlIder
thll Security InstrUment (BilCh as a proceeding in ba.nkruptcy, probate, for condemnation or forfeiture. for
enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or
regn1ation&), Or (c) J3orroWeT has abandoned the Property. then Lender may do and pay for whatever is
reasonable or .appropriate to protect Lender's int...'"!"eSt in the Property mad rights under this Security
I:cstrument, including protecting and/or assessing the value of the Property. and securing andlor repairing
the Property. Lender's actions can include, but an: not limited to: (a) paying any SUID& secured by a lien
which has priority over this Security lnstruInent; (0) appearing in court; and (c) paying reasonable

0[15
Fonn 3804 1"'1
Bt't'tttg'SIt
a6oaeyB' fees to protect itr in1glest in the Propery-and/or
rigbe-uader this Searrry iDB'tsfuIDeot' includiag
its sec*rd
position i, a tffiptcy
pr*"iifu!.'S"""*g
-Uelroptn,
incluCes' but is not liudted to'
efieri1g rbe
properry
o *irl *i"i=,'.t rg. trtf1' reptaEe or bouri ut
-d99c
anC windon's' cirain watq
fi.cnn
pipes,
ctirnirnte mUffiL #*oti!iffi1i;Lttt*';
dryerou. cdndf.ioas, end have.:niliti=s.nrrnd
il;;";h*_fu"rf"ffi;E
friy-aL
-rltiJ."-*ia
riris secrion i,l-endq does not have to do so and is not
under aav dury or ouuganor'iJdi"so.
ii il"c# tiA-krder ircur no liabiliry for not taking any or aII
a:tioss airborized mdtlr ftis Secdon 9'
Aru amounts didndft"il"i;der
roder &is section 9 sball becorre additional dsbt of Borrower
-*,rfrTr-tit"#ffiiln"r,*"r. Tbrsc
"*r,re-rl}
uear imceet at the Nae rate fI'oB the date of
disbrusenes[ urd shsl e?rfrtli
tv]O slct, dttrost, upon aotice from Imder to Bcrnower requestiDg
O"YilO
Seflnify Instn:mert is on a,leasehokt, Borrower shall crrnpiy
-witr
ell th9- prorisions cf
,the
ic,,e.-11' fi;;we"- ;.qdr*;;iii. to Uo Proprty, tbe leasehold and tlre fte title shall not merge unless
I-eoder agres to tk trtsrger il writi"g.
10. Morqlge h*"r; if-i;dff-requug MortSa-4Insurarc
as a conditioo of rnaking the laaa'
g*o*,
*hid=*-y tne p**i* t
euireA
o'gunuin o[ uongage Insurancc itr ffect. If. for ary teBso8'
ths MortgagE
j.oflrangE
*r*#;;Arj*quv
Leras ceases o 6e-available fiom &e lBrtgage
ins:rer
that
fffi;E-ffi&;i
.-h irsufuce'a$c ncirrowcr wm required.o
yirn'ffi
scparatety doigrytrf
peymnrts
toqrard tbe Drrniuros tor*I*fiG-gi'I"rrt*re
tsomowei Sall pay- rhe
Pleoiuns
reouired to obtaitr
ilHd-*#ffiffi,&;il'f6
o" I'rootsrsr rr,nfi*rJ'*fi,-i-iy
irif*
"
a cost substamiatlv
equivalenr !o be cost to-Borrowa
of
@
fviortpge Insura;E
ng,fiystf
in efrect, fioor an alteraatc
ilfiSFil",r* $tccred
gy-ie"aer.
tf subsrrlfuAiv equirrknt.Mortggc
insnance coverage is mt
*riffii.,
gono*.r
Eba[ tr@d;;pay
to knder rni a.dumt of the s:paately d'*ignaed
PaymPt'.that
wer' dE wbar the tr*iir*
*iiiiJ'..ar"a 1g Us t" effect. koder witl accept. use and reEB thesa
DaymEnB as a EorrefEudable los rcsgrve ,n iiouii-Uongage
krq1arye, Sucii tms rEeffe sbail be
ffifffid;#,ffiilffirEik
ffi& tb=Loss isEttiirft,ly
paid-itr fuII, and I-eodEr shall.nct be
;nit ro prt B.-rrr-."J frfficS or earuings oo suc.b loss rsil|e' I*rrdff ca no lolga-requireloss
;ffi;-Fqffirs irrrmtffi dst*rue-6r."agr ii,o
fre @smt ad for tbc pcriod thar Lcoder rcquires)
nrovided bv ur imrcr *trt d by I-d."-"F,4'Uoomes
avrilable, is obiained, d LeDdcr
Squirs
ffiffi,;ttcr",.d ror*"
rd;rd tu_ pre#rms for Mortgage laE:rmce. H Isdcr r=$rircal MoltEege
hffit;-ffi;didoi#"*,tfrs
tu lfi;-d Borro*u'u6s reqgirBd io Eakp repar*ely daignaetl
prd*6i r"cr"d sr-,gfiurs-fo"r
ltoltgrp l8suraace,
gfiroqrer-sbEli pqy the pnraiums
fq-u"+
to
f;kt h iirtg"gr
-Iforr"*
i^ rffr.t,
-oio
p'rovide a lmredmrtable loss ra,r'Ye. until Lcnder's
rcquirEmEot nr Xao*g4ge-dtlc?.rOs
h accoilmcB with my rEiTP ag5eemerf befs{ee$ Bomourcr and
iH;. *"tifi;-iil6t Emt*iioa
or ustil trrninstion
is dtEirod by
&Plieabie
Law- Notling ia &is
Ser$.eiiiefft.E
fonower's obligatioo so
Fay
ints6ed 8t 1fo rau provided ia lhe Notc'
---Morrgig.
in"Ea*;irhfi
1eUeric ffiy Edity
lhi{
PIrqT:_E
Nt*) for certaiu IGes it
tray;;f,iig661oc,E
d;;t t
PrV
Ae ioan is agtdal Bdrros'ef is aot a
Party
to the Mortgage
i:rsurance, *-M*ig3ge
insrErs
graluale
thck lctal risk m all sucb irsruame in forcc ftom timc to titrE. ard may
e"t , ir6G*e
"fth;G
p*iEs ,!" shry cr modi! tleh rislc, or reduce loses, The*e agremcnE
il-oiffi'.a c"ruiU*r G il;"d-f*r*y o t rnoripgg lustuu ad m other partl'.(or parties) to
ffi mffig',roffi
,flffi"ffi fl fr ffig,"ffi#Jil#F
Iarurme Premiuas).
'--I*
.'ffi6tE'tece agre.medq
Lrrfu, ey
1rruclsssr
of tbe Notc, anotha insurer, Erly I"itrFrrer'
anv oftcr entitv. or r*'
"ffiire
of aiu, of tbi fuigioing, uay rcccivc
(directly or indireclly)-amouuts tlat
;!ffi ft.*'G';'ghr'b.-ffirrriief
as) a portiIg oI Bonorver's
palrye1$ for Mortgage Irsuaoce. iu
ffi** f*'-i,;d;g * ,oAryioe te ironiag? irsunr's iisk, oi rcducirg losses. If sueh q:eemed
;*rtd[-
ffi ,tr afflirg'rf 1ir-aEr EtrJ, &ire of rbe insiurer's dsk in orcbange for a shac of the
il.*rhr*
paid to ee ir*.=*, tle am.ngemem_i6 gtgn tcrmed 'cap-tive reins:rance." Furtherl
''---(")
A1? rrr"t rg"gg[U[ xinloT-a*",t-tG
arnouutr'that Borower has agreert qo
Pov
for
Morprec hsurrucg oruoiott"r tegff of tbe Losr. Such *greuamtr witr not lacreare tte amount
ilnt-Erti;r*-ft ilfuge Inronncg end tbey win Dot eotitle Borower io eay rsfurd-
,{,**@*.
1oo599o1s{
s6E
!i 16
U Fom t00i1 lBl
@.o{eq
**r
." ...
attorneys' fees to protect its ir.teres.t in the Property and/or rights under this Security Ins..'TUment, including
its secured position in Ii bankruptcy proceeding. Securing the Property includes, but is not limited to.
eJltering the Property to make repairs, cha.nge locks. replace or board up doors and windows, drain water
from pipes, e1.iminatt: building or other code violations or dangerous conditioIlS. and have utilities turned.
on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not
tm.der any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all
actions authorized under this Section 9.
A:rry amouDts disbursed by Lender under tbi& Section 9 shall be"'..ome additional debt of Borrower
secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of
disbursement and shaIl be payable, with such interest. upon notice from Lender to Borrower requesting
payment. "
If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the
lease. If Borrower acquires fee title to the Property. the leasebDld and the fee title sllall not merge unless
Lender agrees to the merger in writing.
HI. Mortgage Insurance. If Lender required Mortgage Insurance as Ii condition of making the Loan.
Borrower shall pay the premiums required to maintain the Mongage Insurance in effect. If. for any reason.
the Mortgage Insurance ooverage required by Lender ceases to be available from the mortgage insurer that
previoll&ly provided sucn insurallr:e and Borrower was required to make separately designated payments
toward the premitml& for Mortgage Insurance. Bottower sball pay the premiums required to obtain
coverage su!)staDtia11y equivalent to the Mortgage Insurance previously in effect. at a cost substantially
equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, froIll an. alternate
mortgage insurer selected by Lender. If subsWJtially equivalent Mortgage Insuran..<>e coverage is not
available, Borrower shall continue to pay to Lender the amount of the separately designated payments that
were doe wben the insurance coverage ceased to be ill effe::t.. Lender will accept. use and retain these
payments as a non-refundable loss reserve in lieu of Mortgage Insuta1we. Suc.b loss reserve shall be
non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be
required to pay Borrower any interest or earnings on &ncb loss reserve. Lender can no longer require loss
reserve payments if Mortgage Insurance coverage (in the ammmt and for the period that Leader requires)
provided by an insurer selected by Leader again becomes available, is obtained, and Lender requires
separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage
lDsuraDce as a COllliition of making !be LoaD mad Botrower was required to make separately designated
payments toward the premiums for Mortgage Insurance. Borrower shall pay the premiums required to
maintain Mortgage Insnrance in effect. or to provide a non-refundable loss reserve. until Lender's
requirement for Mortgage lnsuraDce ends in accordance with any written agreement between Borrower and
Lender providing for such teImination or until te:rmination is required by Applicable Law. Nothing in this
Section 10 affects Borrower's obligation to pay interest at tbe rate provided in he Note.
Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it
may incur if Borrower does not repay the Loan as agreed. is not a party to the Mortgage
Insurnm:e.
Mortgage insurers evaluate their total risk em an such iDsuraoce in force from time to time, and may
enter into agreements with other parties that share or modify their risk. Of reduce losses. These agreements
are on lenDS aDd conditicms Chat are satisfactory ro the mortgage insurer and me other party (or parties) to
tbese agree:ments.. These agreements may require "the mortgage insurer to make payments using any source
of funda that the mortgage insurer may have available (which may include funds obtained from Mortgage
Insurance premiums).
As a result of these agreements, Lender, any purcllaser of the Note. another insurer, any reinsmer,
any other entity, or any affiliate CJf any of the foregoing, may receive (directly or indirectly) amounts that
derive from (or night be characterized as) Ii pGrtion of Borrower's payments for Mortgage Insmance. in
exchange for sharing or modifying tbe mcntgage insurer's risk, or reducing losses. If such agreement
provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the
premiums paid to the insurer, the arrangement is often termed "captive reiIlSUI'aIlCe. " Further:
(a) Ally JUeb agreements Wlll nc.t affect the amDuDts that has agreed to pay for
Mort:age Insurmtee, Dr any o!:her terms of the LoaB. Such a:reements will Dot increase the amount
Borrower lI'iII owe for Mortgage Inmruce, and they will Dot entitle Borrower to aDY mllBd.

.... "'16 Form 3004 1f()1
(l(rCrfi'.I-.SH,
(D) tuv such rgtemenb YYiE Eot sffect-the rights Borrow-er
I"t:
-t-f
any
'
*ith respect to the
u"*IJgur};;;;-*il.t
tre'lior*tm.tt
Prct;ffi; Act of 1998 or snv other hw' These riElh
mry irdude ttre rigbt ; ;;d.. ;"&6 Ait"r"*iC'il
t qr*, end obtsio carcellr6on
of t1e
Mortgege Ir51rrmce,
t ir#6'" ilortg"it Ia'llt1lrce
iermiraicd automaficelly,
aud/or to recdYe 8
refuud of ary lrro6gae" i"!iriid'-il6ii*i
in"t *er. usearued
at the time of such cgncelletiou or
ierrinrtion.
11. AsrCsnmert d Miscelleueoul
Proceed,s; Forfeiture' All Misce[a$ous Fioceeds are ber*y
assigld h aoi
chnll
'oc
paid to lcader.
11 6e
properry
t d;;rd" .rJ
ryfry"[*qoll
Procceds shall
E SpPlic
to rE$omtion or repak of
ths Pmpert1,, if th3 restolatiba or rc,pair is ccooomicajti Ary*': end LifiCef's secrtttty is rc! lessenol'
Dtlioe sEh reFh ano re8ffiu;#ta i*;;; sbal 6rr rhe right to hold stcl Misceuailscus Prosis
IIBtil Lds bas had *
#;tffi;;
t"l"ped ilh PropEty
!" flst're
tbc work bas bea cornpleted o
t-ender,s sdisfrctio& prolided ttat q+ inspection Satl k,irOaeta:
prooPtly, I*ndcr rEy.pay fo1 tbe
ffifr
;d fi;*td- h]-Strlr airl"rfomt oi in i series_of
progreis paynents as tbe woik is
comol*ed. Unless str agrrerg3[|il s, dr in writing sr Appliolt" kw're{uires
inter=st !c be paid on such
ffiH^-fiffi-ffi;;iTtffi-.dit
d be rcdited ti'pay eorm'rla iuy.iutsst or eamings. on such
ir[t*;ffi;,p";ddr.If
ff;"!..iior;-rdir
iln-ioircnicauy
feasrb-h orLendff'e securirv wouid
il;-i""en-d,;h;-Misedla;rms
ni*"tas ruii 6Japplled ro he srurs-seored
lJrHtrtsffiffi
;h"ec,}-*t-dffi
d,td
"[t['
ff
-.*tc*'
I an[,
plia o Bonower' sut& MiE
amlied in ee orderpcrvirbd for in Sctioin
2.
ir &e e'eot or a dfif'Eu-ai,"Jiirnitisn,
or loas ia value of tire Property, lhe Misc|rlareors
Procccds--h.ll t",fUa O tr *# tet*.0 Uy ttis Ssdh/ Instn::nmt,
wbetber or not tfuu due, with
tbc excess, if ary.
Paid
b Borrower.
-
_'i'
lli,""it oi.
frtaf
r+ii, dessuctio4 or los iu value of the Proprfv in which the fair market
value of tb
p1operfy
i#;ffibd."
th#"il-E6rg,
GgictiTr-og tris ia vaw-is equal to or
sreah ffian the annd ;ifr";rt ,ccttt"d ht
tH, Secrnity Instrument imrnediaely bcfu:
thf
frtial
ilffi- ffi";t;** t*i h rG, uoless Borrowa and Irdrt o&effiise agryc ia writing'
Fe
su'*
ffi fr-ffi-$r"ftyl*i*r*i
*ru U redr"cd uI
*.*rT!
g-r_ru
Uisenar'srls Proceds
*lrtpllrd by sr-f.iltdira-frertb*
(r) ou mat. amuxi rf tbs EuEs Eeculed imediateb beforc
the
ffiffitdc,-derroaid,"r-iJs ir'*at*
diyidod b-y (b-) frry
frir.det value o{
tt'l Proertv
imeAia6y 1pfse m*fra-irfiae, ia*nttioq or lo,' ii vilirc. Ary bitas
ryU
6.-Eid t0 Bottowcr'
**ffi';#d.
fr4
t Hry,'acctuaim.
or locs ia ralre sf tu PIoPErty p
"ti,*.Q
fair-mE*et
varueidi[e-ffi'd;irrrty"b.fore
thc prqrt Eking, alcstuctiso, or
lo.t
it ralue iE less rbar rhE
anoud of he $& ,rcgpd ffi"ftddi b.fff e" pnrtiii-tai.'"g. detrocdor' or loss g value'
'nless
B"r,ffi,"-*d Isde.
"drci;he
agE" ir1,'writing, ue ifiscettaacqs ProcEedE shrll be applied to fhe EInr'(
*i[J Uy rli--Se""ity Iastilneoi wb#hpr or not Ue EErEs ane ttfl Cne.
*-if
frr-ptritry t;brrd-rd by l**ott, qr d, afig uotice 6, Leda to Boffower that rhe
oep.irg n"fr'(a*-drfifrE-OI
r* scofryl brem o aab an award o settle a claim for damages,
BoEoc,Er ftile to reryooO[ rcrrd* witAin 39 d1,Iya Efttr fbB date the notice is
8rvsr
I-a&r is authorized
;;;il ilgi,ptt'rt
'Mir*Efiaoeo*
no.*A*'either to r8mtio-n tr
ryPar
of the Property or t'o the
*rr .*rr"d by'fiit S"*rilt Gtri",td,
whather oI Dot theo.'trra "Oppging
Pary-" rms es third.pzrty
Eilt-onrcs-no*w? ffiae
prry agsi!$ xffi Borrower"has a right of actior ir
resardoMisceflaocmsProcmds. r .- L---
-L-r
.
'*iffiirm*6ia
dcfalrtr if any acim or proceediog, $tfiE&cc civil o1 sriiuirali ie begun- thal' in
I-4dFC*S
.odd resltr h ffi[se sf 6, nopaty or_other matcrial itpakmeil of
.I-adr's
hpr'stiiffip"opkry
o, iigb-rrdrr trs secur.dy irBmurfo. Bsno*tsr csr cue ssc! a defrult ard' if
;r"d;d* br.-ffied, ilfi-153t *
tr*idrd
in'srtiou 19,-by cmeinB-tbe action or
Prdirg
to be
ffilrfr-;tth ,-r,rlhg il} Lcog*5s
Jtaemcrd,
preciudeo Itf."T* ;l
ry ry*1. L"F:I5ld
t*rit d ;f Leodcris htde6t in fre Ppoperty or rfshh under thil Seonity berorcc,lr Ttc pro-ceeds of
;ffi,ffi-ftrtrtur-d."rd;
&a are atiib,iu.ttr 6 oe iupairosnt of l,encer's inerest in rhe Propetl'
ani Ucr,ety assig!"d aod Sall be patd to Lfidcr.
--
;ii'Mis,ffirlr" no"JCi*-t t ae not aplied b restryffitiotr m repair of 6e Properry slall be
apptied in frc order providd fur in Secticn 2,
100599015{
Fontr 3004 tr[l
@qaq
p'ot1
,,fu-%
PED I ., 15
" ..
(b) Alry such agreements wiD Dot affect the rights BOr'r'Ower has if any M wlth respect to the
Mortgage lnsarance lOlder the Homeowners Protection Act of 1998 or any other law. These rights
may include the right to reeetve cert&ill disclosures, to request eel obtain cancellation of the
Mortgage inmranee, to have tbe Mortgage IDsuruce terminated automatically. and/or to receive a
refund of any Mortgage lnSIlraoee premiums that were unearned at the lime of sucb cancellation or
termination.
11. Assignment of Miseellane&u5 Forfeiture. All Miscell2neous Proceeds are hereby
assigned to and shall be paid to Lender.
If the Property is damaged, such Miscellaneous Pro:eeds sball be applied to restoration or repair of
the Property, if the restoration or repair is ecoriomically feasible and Lender's security is not lessened.
During such repair and restoration period, Lender shall have the right to hold sucb Miscellaneous Proceeds
until Lender has had an opportunity to inspect such Property to ensure the work has been completed to
Lender's satisfaction, provided that such inspection shall be undertaken promptly, L..."llder may pay for the
repa.irs and restoration in a disbllrsement or in a series of progress payments as the work is
completed. Unless sn agreement is made in writing ()! Applicable Law requires interest to be paid on such
Miscellaneous Lender shall not be required to pay Borrower any interest or earnings on such
Miscel1aIeous ,Proceeds. If the restoration or repair is not economically feasible or Lender's security would
be lessened, the Misc=llaneous Proceeds shall be applied to the sums secured by this Security Instrument.
whether or not then due. with the if any, paid \0 BGrrowe:r. Such. Miscellaneous PrM:eds shall be
applied in the onie:r provided for in Section 2.
In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous
Proceeds shall be applied to the snrns secured by this Security Instrument, whether or not then due, with
the excess, if any. paid to Borrower.
In the event of a partial taking. destruction. or loss in value of the Property in which the fair market
value of !be Property immediatcly before the partial taking, destruction. or loss in value is equal to or
greater than the amount of the sums secured by this Security Instrument immediately before the partial
taking, destmction, or loss in value, unless Borrower and Lender othetwi.ie agree ill. writing. the sums
secured by this Security sbalI be redDced by the amount of the Miscellaneous Proceeds
multiplied by the following fraction: (8) the total amount of the sums secured immediately before the
partial taking, destructicnt, or m in valne divided by (b) the fair market value of the Property
immediately befme tbepanial tak:in.g, destrw:tion, or loss in value. AJty balance shall be paid to Borrower.
In the event of a partial taking, destraction. or loss in \'aIDe CJf be Property in which tile fair J:IlIIIiret
value of the Property ilnmediately before the partial taking, destruction, or Joss in \'alue is less than the
amount of the SU1tI5 secured immediately before the partial taldng. destroction, or loss in value. unless
Borrower and Lender otherwise agn:e in writing, the Miscellaneous Proceeds shall be applied to the sums
secured by this Secnri.ty Instrument whet1m' or DOt the sums are then due.
If the Property is abandoned by Borrower, or if, after notice by Lender to BottOwer that the
Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages.
Borrower fails to respoD!i to Lender within 30 days after the date the notice is given, Lender is authorized
to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the
sums secured by this Security Instruznem, whether or not then doe. "Opposing Party" means the third party
that owes Borrower MiBceDeneous Proceecis or tbe party against whom Borrower has a right of action in
regard to Misce
t
1tmecRJs Proceeds.
BorroWer &ball be in default if any action orproceeding,. wbetbe:r civil or criminal, is begun that, in
I..cnder's judgment, could result in forfeiture of tbe Property or otber material impainnentof Lender's
interest in the Property or rights under this Security 1nstromc.ot. Borrower can cure sm:h a default and. if
acceleration bas occurred, reiDrate as provided in Section 19. by causing the action or proceeding to be
dismiBsed with a ruling that, in Lender's judgment, precludes forfeitnre of !be Property or other material
impairment of Lender's iuterest in the Property or rights nnder this Security InstrwneDt. The proceeds of
any award or claim for damages that are attributable to the impairment. of Lender' s interest in the Property
are hereby assigned 81ld shall be paid to Lender.
All MisceIlaneous Proceeds that are not applied. to restoI:ation or repair of the Property shall be
applied in the order provided for in Section 2.
1005990154
Fonn 3004 1101
S*(rOCtE$'ni'
12. Borrower Not Releasdi
Forbelranee Bv Lesder Not I Wsiver' E*arsios of the time for
Davrrunr or modificatiou of amortization of thc surs"Ewured by this Secdt
.InsurmerrtgPfed-bJ
Lmder
fr'ffiffiffiilis,i,ifti;
rotrrnt of Bonowcr sball noi operatc to rblease dre liabitiry oJ Bol"owsr
;;-,i,'-s;!,["o u ior,#JofBo-"6ro. rena.. itau nor ue riquireo-to
comme ce proceedings against
aly Srrcessor in lmetesiof-iorrower
u to rcnse to
"xtend
firne
1or
palttellt oi otheffiise utodiry
aruorrizarion of the suru;;"d Cthil
s-*,tity r"Jfril*iiy ;dfi.J3'i
{enana madq bv tbe original
Bonorwr or any &rctesso;G irc#t$ o'f Borower. Aoy fortearance
f1LTrder ia exercising any rigtt or
d@-i"JJfig.
*thod- ti.it tioo, lcrder's acceFt;me of paymeirs frorr third Dsito$s. entiiies or
Succcesors h lnrere$t of Borrows or iB strprurts 1es;-ffi?;oi,#;
thtn aue, slzll nirt
'oe
a *'aiver of or
preclude the exercise of ary right or reoedy.-
'
ls. Joint rnd seret;t ii"unrty; Oo+igterq Suceeuorc aod AssigosBound' Bonows
coverantg
and alos$ thar Bonor+u'--"UTigrti-ori'.i,ilifiilify'shalt
f"rioiqt d.*-o#: llowevr, aay Bcrrower who
H-ffi;?tri6i.i6'il**eor
but tu not_exe"tt
G
u*f (a.nco-si9rs"):
Ja)*s
co-siguirlg &ir
secufrtv Iaetnrmenr drty frffiftgl]i ffi
;a A;nEy G d,isi-sE's inneftst in tbe F.opttv-mdir
the
ffi'j1til'ffi1}'"i,ffi""r8: 6i'i*
persouxy
_obligated
ti
FaY
the s:ms serned by- this Securirv
Irsm'Eitt ad
(c) 29o] errl*i-iJ"ra
iry otnei Borrf,wer
ca; eg1"rc to ffiteod' trPddy, forbear or
;il;rGffi##
*th-r=crrd ro tbe'[erats of thia Security Insruoeru or rhe Note without tbe
c+.sigH's consenl
--
-Etjcci
b i're provisions of Sectiol i8, anv $rcessor iu loterest of BortowEI who assumes
Bouovefs obligAtioct tti[t-ett St"rity instrumelit itr
lmting'
andjs aprproverl by ['eoder, sball obtail
A;iBo**o,"ngn6
rrd-b""e6e urtk tbis Securiry_iasuurrert.
F{b*
sbell nol be released ftom
Borrowey's obligatiom.rA
n Uifity ,rAs this Seurriry Instnrment unless l"e1dff aEIEs io soch release il
wriri1s. IXe covensds ff-rg#**1g
of ru, Sidtffy
]*tdlreot shall bind
[o..pt
as prcvided il
S"rtio[ zOl Brd bo6ft fte srccessors rrd asigas of Lender'
14. Loan
(targ*.
Isrder may *argJ.Sorrona fees for ser{ices perfon:aed h corncctiou wift
Borroqlea-,s dedrutt ar difrftse & pm6"irg l--O*'s intetrEit in he
$+a{ -a
9*F_-1ael'ftk
s*a;6,lil.d;r*i,
iaclndirB, brt oot
ryEd
q eilonuys,@'prEqty-hspection
M vzJusgon res,
il%;id5rrfldil,
f*;m. abm"e of .xp,rcss artnrtry h thil $icttrity
ry-ir-*
to charge a qrccific
fee ro Bomwer sbar mr &;;63rurd;,
piruilition on iUe clrgiog_gf
15h
fee. I-erdfr msy ,Elt charge
iL tar are ipressiy
*ntUitea
W
thig_Sadry Insugmmt or by ApplicablE lrw.
'-
rf tu-dt-Ii=idrali'ira.#which;;Bmaidmbmafues,
ana egtlsw,ifiultyinterpreted
so
6d fu irhr;$ oJ o6h foir-.Urrger cof.u"A or to b? mlbeed-in ccfinoctiou with 8re Loo' excead the
Eermi[Ed timits, &Etr
<ailiyfti-f*"-.hdtsball
Oe rcarceO 5y
$
amru nccessary to*dnce 6e
ffiffi,t-#*rifl"d
ilxt and
(b) *, som-ahdy cottecrcd toiu Borrower which exceeded
permitted
timirs
sitt be rcfrndqt to-lioo"wei. *nOcr rnay choos" o nrake &befrmd-
R
te&rcirg qe
ryifteal
owed uader 6e NoE ot'ly-*ur.al ; 66 t
py6rr
gg
Bolrows. If a rdrnd reducee pri:ripal' the
iil,r"f*
"i,if
U! Eatgd.js a
f;fdst
p1ry5,a1cfu withort agy prepa!'rmt-chsrge
(rvbefler.or
lot
a
rrrffiv'nert cbar"s i5 m*i,a"i6t urnci t[e't'io[], Bouower'i ncei]tnce of any
ry1h
rtrDd ffiade by
[ffi'paym tinoniw.r wi[ sorrtitute a waiver of any right of actiol Borrower
might tul'e alisirg otrt
of such overeiarge'
15. Notics, All aotices
grveu by Borowtr or kodsr in eomectios with &is Secudry
TT"tnrueot
s,s be i! wirgillg. ,r,uy arli.eTo iio'rro*o i" sormettiod wirh this Secoriry ir6trDscfit thau be dstrtrEd io
hare bsa
gven b nrmffi-nilen--iinx
uy f"* ctas mail or xten ainratly deliyaed to.Eorrower's
;&-rddft if r.s bi;er" n"ire. uodccio an-y orc Borrowcr shall comtiEfie aotice to all Borrouffie
*r.er elnil*ilri-r*'"frsgy
!e{id*s
-rrt'h.r*fu.
Ik nodce addrcs shall be 6e Propcrry Address
*I* ififi.** h* d"i6ed; ;r6sdhtr notie addres by notie to Lendr. Bmmrper shali plcrrptly
;iify Gd; of eorto*;[ ;!*Cq
"i
addres. If l.mds
$*-itres.
a ptfodul forreportinB Borro-wer's
Eft" ,f ddr=sr, &etr BoErower-Bball.orly report a chang.e oi af$s_ttroug thrl
PTIY
ffi ,ry bc only *r aoigrut"d-E"ti"c;ddress
u
aer
fiis Sceuriry-Instnrin:nt
8t 8ny ox! tinrer
.Alry
;"d;;L;;-ri,O
*!i-t"ri, by deu"erilg it or by Eailing
I
by
ryEt
class rrEil to Lerder's adriress
r1,ted [*d"-rdfi
I*i;;;'d.E
gltil aoo6d ad&ed
!f
iol.t to Boaowsr, Any
.notice
in
;"D*.d* wie 6is SEcrE ty Gmxlrtr ridl not be dsemd to f,ave bcea givcn to I-ilder
trntil
achlally
;"""ifi b5, Lr"d"r. ff *y irtt*.rg"ir*-ry ffis-Sagldfr Iffitmmt is also re4tiltd rmder Applicable
ifrl tu'Appit""bit# ;qgk *il-
"'tI'sadsfy
the irresponding requircs$nt udr this Seetuiry
Ilscrm.
/tu;{fi*..
1005990154
Fosn 3004 1101
@"c{ls
ot*r
PEE 10 D{ lE

12. Borrower Not Forbearance By Leader Not a Waiver. E","tenSion of the time for
payment or modification of amortization of the sums se::ured by Ibis Security Instrument granted by Lender
to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower
or any Successors in Interest of Sorrower. Lender shall not be required to commence proceedings against
any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify
amorti2'.Won of the sums secured by this Security Instrument. by reason of any demand made by the original
Borrower or any Suc:c:essors in Interest of Borrower. Arry forbearance by Lender in exercising any right or
rem.."'dy including, without limitation, Lender's acceptance of payments from third persons, entities or
Successors in lntere&t of Borrower or in amounts less than the amount then due, &hill not be a waiver of or
preclude the exercise of any right or remedy.
13. Joint and Severa] Liability; Co-sigoers; Successors IIDd Assigns Bound. Borrower covenants
and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who
co-si&JlS this Security Instrument but does not execute the Note (a nco-signer"): (a) is oo-signing this
Secunty Instrumeru only to mortgage, grant and convey the co-signer's interest in the Property under the
terms of this Security lnsttmnent; (b) is not personally obligated to pay the sums secured by this Security
Instrument: and (c) agrees that Lender and any other Borrower can agree to extend. modify. forbear or
make any accommodations with regard to the terms of this Security lnstrument or the Note without the
co-signer's
Subject to the provtsions of Section 18, any Successor in lnterest of Borrower who assumes
Borrower's obligations under this Security Instrument in writing. and is approved by Lender, &ball obtain
all of Borrower 8 rights and benefits under this Security lnstrurnellt. Borrower shall not be released from
Borrower's obligations and liability under this Security Insttmnent unless Lender agrees to such release in
writing. The covemmts and agreements of this Security Jnstrument shall bind (except as provided in
Section 20) and benefit the successors and assigns of Lender .
14. Loon ClIarges. Lender may charge Borrower fees fOT services performed in connection with
Bcrrower's default., fur the pwpose of protecting Lender's in1ere$t in the Property and rights under this
Security IBstnuneot, including, but not limited to. attorneys' fees, property inspection and valuation fees.
In regard to any other fees, the absence of express authority in this Security Instrnm.ent to charge a specific
fee to Bo!fOwer sba1l1lOt be coo&trued as a prohibitiOJl on the charging of such fee. Lender may not charge
fees tbst are expressly by this Security Jnstrument or by Applicable Law.
Jf the Loan is subject. to a law which sets lmXirnu:m loan charges, and that law is finally intmpreted so
tbat the interest or other loan charges co1lected or to be collected in connection with the Loan. exceed the
permitted limits. then: (a) any &UCh loan charge shall be reduced by tbe amount necessary to reduce the
cbarge to the permitted limit; and (b) any BUmS already i:Ollected fiom Borrower which exceeded permitted
limit$ will be refunded to Borrower. Lender may choose to make this refund by reducing the principal
owed under the Note or by making a direct payment to Borrower. If :a refund reduces principal, the
reduction will be treated as a partial prepayment. without any prep!;rment charge (whether or not a
prepayment cbarge is provided for under the Note). Borrower's ar::ceptance of any such refund made by
direct payment to Borrower will coIll>titute a waiver of any right of action Borrower might have arising out
of such overcharge.
15. Notices. AlI notices given by Borrower or Lender in connection with this Security Instrument
must be in Atry notice to Borrower in connection with this Secnrity Instrument 8ball be deemed to
have been given to Borrower when mailed by fll'St class mail or \'Ilben actually delivered to Borrower's
notice address if sent by otbcr nallS. Notice to anyone Borrower shall constitute notice to all Borrower!
unless Applicable Lew expressly requires otberwise. The notice address shall be the Property Address
unless Borrower bas designated a substitute notice address by notice to Lender. Borrower shall promptly
DDtify Lender of Borrower's c.bange of address. If Lender specifies B procedure for reporting Borrov.>er's
change of address, then Borrower &haIl only report a change of address through that specified procedure.
There may be only one designated noticeaddress under this Security Instrument at any one time. Any
notice to Lender shall be given by delivering it Qr by mailing it by first class mail to Lender's address
stated herein unless Lender bas clesignBted anotber address by notice to Borrower. Any notice in
connection with this Security Instrllment sball not be deemed to have been given to Lender unt[] actually
received by Lender. If any notice required by this Security Instrument is also required under Applicable
Law. the Applicable Law requirement will satisfy the corresponding requirement 'Onder this Sec.ul'ity
Inst:mmem.
10059901.54
e.-6(AR) (0108)
*+$ii''}ASi5
15.GoveningI,aw;Swerabiiity;Rute*.ofConstrucfro1'[risS*uritylrurrumeut.sballbe
poveraed
bv iedsal A* *a-ti"-iri;f-tdJiriuOitti*
iu oti.t tl" Pmperfv is located' AII righe and
:ffi;ffi##ffi#-t'm,
Secmiry insutmeot ue sugecl to any requiiements
a.d limitgtions
of
.topitaUte l.aui. Alplicable Lew rugbt explicitiy or-idf-icitiy Afow thc pdties to agige by couraci
or it
#fiG ,il"rt" diiilh-;ir*"J
suaflnor t* .offtn J-'ai a p?oniuitio, aceP[
Hffit__;,t%ffi:rB
t?dt ffiUy
pErittii"
"icrause
of this Securitv igsqlm+ q
tbe Nol
Las, slcL conflict rbrll #
"lTd
orher provisions oi &is Searriry lnstru::aent
or tbe Note which caE be
sivenefut without rhe corflicting
lrtovieicn' .
-
A8 usod tE ftis sccutiB Insrrumar
(a) wortts of ihe masculine
geadcr shail rn'"alr a:rd iuslude
mmspouding *,*
*rt'Jr;".,rfr;*rhr'-#di;C
gnd*
el.wo$iin.
tle singular shall r*sn ,Dd
inclld &e
plural a]d rd;ru; d f.l
At
"ota
"miy"
git'es sbb discretion u'ithout aoy obligxion
to
*
ff.H**.a,
copy. Borrower sha[ be giveo oDe copy of the Nore and of this Securiry lnstrurrril
18. Transfo of thaProperty or a Beadciel Isterest in Borrswer' As used in his section l8'
"inreresr h tu
prop5ry,
;;f;fi, lii ir*#&iirr-roarest
in q
prgp!]ry,
krcrMine, but not lildted
ro, 6oE bcncficisl ium.-fuG.?,Irii"l"
i b"A G dred, contrad for died, instaLlsrcd' sales clnbact ot
][*"
-fr,*t, t" i"t"itlf
-'ii.Ui O" trr*fo' of titli by Boro*er at a future carc to a purcbaser'
Ifallcrmypart"rtiilite"-trygttnyroe*ttiubehopcrtyissoldcltransfer:ttl(orifBrrovra
is nor a aatural persnn
-il
b;;ffi,rid-'inteic[ia
sitro*o ii ila'or cancf$ed) n'i6out Lender's
prior
vdtEo coBsd{ I*odcr my require irn$ediate
pr)-* t" nrtl of ql! ms s':crued by this saflIrity
irs.truurent However, this option shaJl not b effsed ty t't'Ao if
gsch
exercise is-prohibitd
by
APlfrHffif.r*i*
his optioo, Iro63r
crrrl give Bonoc,er notic: of accelerarion, The notice shall
provid' a pe'od of
-.
i#'ftin';ildry,
ft,". *?* *
I,fiq
h given ir accordance witb section 15
ffi h#ffix.*##.fl
ffi
ftHffi-ffi
H,:ffiHrffi"H-#ffi
S?cu.ity-ind;M
ruithou forter notice or deroad on Bormwer'
"*T-
-*#'#,ffi%
HHffiffi-ff#Heff
ffi,ffi"m
jH"i#
cdiifion r.-O* Eorrowen
(a) pays knder dl
Isftrumd d thcNote ,t if no'atfi*tioo hd ocCInad;
9)
$YEs-ary defailt of aff other c'ovenants or
ffi.G
pa1,i*u *perses inur .d io offi [E*iri*U-t ri'**t'io.t##tg]f,
ffi
E;;eat*rb['inito"ys'
iees,
properry irap'-ctior
,tr#;*Jr,hffi
i:ffi
r,H?.:$"s'*
riEhb ,,dEr t$* Sgcl"fiy'tffi&,
ed-iiorrowof-
.Ut!{-at" Pay
6E
-yra8
Eccured by thi* Scx}rity
irstnocd, *n n *om*Gffi
f..na"" r"ay require-thafi Bodri'*r
pay auch reinstgteroent sums ad
e,xDe,ss ir orE 6 nore of fte followiag toros, ;itlettcd
Uy t^e"m^ ta)
otni O.)
T'IEI
ordeq
(c)
ffiffi'o-rif#ffr}l-
ddrilr,s cfrpr o_r ptier's
chcck" provirled.auv su* cbck is drawn up_oe
an imionion whrc rlapmirs are iprreit ty a *o#-ag;Et,,Tn8[1lr"*L[pror
enti{; or (d) Elect'oric
Fuods Tlansfu. Upol rcil*arg,tHr
li troito*r", dds Scrttty Irutruneut aid obligatror secured. her$y
Ehell Esah rsEv etrEsH*;;-ffi
-tilliaio,
lao occured. Ilo,ewer, thir right to rcbstate Ehall Dot
-otn
i, G case of ascelemion under Sectiou 18
'
o*'zt,F"fi;iii"iq
Lt&; cf meri Scntcer; No6ce of Grie*rce. The Noe
9i
a pafiBl interest ia
&, NG
(Gdd wid1 tiis $s'ity GtrumeaU'can
Ue soU 1,E o' a.* time* witbod plio-r uotif to
il;;:T *1" *tChr;rttE ; d-gat"
ry
entity
-Gnown
as ttre
nLoan
Senicer") that solle'ru
P*;fr;'p.)r"d.6;d*
-t1tr
n"trEd this s'effi$/ tnstrqrent qr-d gerforros
other mortgage loan
s5' icing obtigatiom *ailI}e N4, tli* S**t- ity tl"a,ir".nt'-atd
{mligpe
Iaw' T}ere {so
rniEhr }e
;;'fo;;tr;g"
of o* l-* i#i"er urah*rA a sab # &e Niie. Ir therc is a ehsuge-of the l-oan
servicer, Bonower wiII d:gi6
"ri6c11=;tr;
oi be chaacp-whict.will
sratp rhe aauc aud address of fte
cor LoaB Seryic*., the ;&!| to-iti"i
paymru shoulf bc u'de and auy otbsr idormation RFSPA
@"*(ntsp,ou
J<-,*,,',m=
1oo5e9o15{
etgrlroris
o
Fom 3004 il41
...
16. GDverning Law; Severabilityj Rules Dr This Security Instrument shall be
governed by federal law and the law of the jurisdiction in which the Property is located. AIl rights and
obligations contained in this Security Instrnrnellt are subj:ct to any requirements and limitations of
Applicable Law. Applicable Law might explicitly ()f implicitly allow the parties to agree by contract or it
might be silent. but such silence shall not be constroed as a prohibition against agreement by contract. In
the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable
Law, such conflict sba11 not affect other provtsions of this Security lnstnmlent or the Note which can be
given effect without the conflicting provision,
As nsed in this Security Irisfuunent: (a) words of the masculine gender shall and Include
COrI"'wSpOndmg words or words of the feminine gender; (b) words in the singular shall mean and
include the plural and. vice versa; and (c) the word "may n gives sole discretion without any obligation to
take any actiOn.
.
17. Borrowers Copy. Borrower shall be one copy of the Note and of this Security Instrument.
18. Traufer of the Property or a Beneficial Interest in Borrower. As used in this Section 18,
"Interest in the Property- means any legal or beneficial interest in the Property, including, but not limited
to, those beneficial interests transferred in a bond for deed, contract for deed, installment Gales contract or
escrow agreement, the intent of whlch is the transfer of title by Borrower at a :future date to a purcllaser.
If aU or any part of the Property or any Interest in the Property sold or tnmsferred (or if Borrower
is not a natUral person and a beneficial interest in Borrower is sold or transferred) ;vithol1t Lender's prior
written consent, Lender may require immedlate payment in full of all sams secured by this Security
Instmment. However, this option shall not be exercised by Lender if such exercise is prohibited by
Applicable Law.
If Lender exeroises this option. Lender sh!I1 give Borrower notice of acceleration. The notice shall
provide a period of not less than 30 days from the elate the notice is given in accordance with Section 15
within which Borrower nmit pay aU sruns secured by this Secmity llWUmeDt. If Borrower fails to pay
these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this
lnstromeDt without ftlrtber DOtice or demand on Borrower.
11. Borrower's Right t& ReQlstate After A::celeration. If BolTOwer meets certaln conditions,
BOIl'OweI' shall have the right to have enforcement of this Security Instrument discontinncd at any time
prior to the earliest of: (a) five days befoJe sale of the Property pursuant to any of sale contained in
this Security InstnraJent; (b) such other period as Applicable Law might speeify for the termination of
Borrower's right to reinstate; or (c) entry of a judgment enforcing this Sec.urity Instrument. Those
conditions are that Borrower: (a) pays Lender all sums which then would be due tmder this Security
Insttmneot and the Note as if no acceleration had 0CCI!I'Ted; (b) cures any default of any other covenants or
. agreemen$; (c) pay! all expenses incurred in enforcing this Security In&trtlIJleDt, including, but not limited
to, reasonable attorneys t fees, property inspection and valuation fees, and other fees incurred for the
purpose of protect.in& Lender's interest in the llropeny and rights under this Security Instnunent; and (d)
tl\keg such action as Lender may rea&:>nably require to assure that Lender's interest fn the Property and
rights \llldeI' thia Security Instrument, and Borrower's obligation to pay the sums secured by this
Instrument. shaJl COlJtinne IUlCbanged. Lender may reqrilie that Borrower pay such reinstatement sums and
expelISeS in one or more of !he following fonn&. as selected by :Lender: (a) cash; (b) money order; (c)
rertified check, bank c:heclc, treasUrer's check: or cashier's check, provided any such check is drawn upon
an institlJtk)n whose deposits are insnred by a federal agency, instrumen!alily or elltity; or (d) Electronic
Funds Transfer. Upaa reinstatement by Borrower, ibis Security Instrmnem and obligations secured hereby
shall remain fully effective as if no acceleration bad occurred. However, this right to reinstate shall not
apply in the case of acceleration tmder SectiOIl 18.
lO. Sale af NIJte; Change or Loan Sen1eer, Notice of GrievaDce. The Note or a partial interest in
the Note (together with this Security Instrument) can be sold one or more times without prior notice to
Borrower. A sale might result .in a chqe in the entity (known as the "Loan Servicer")' that collects
Periodic Payments ane unrler the Note and this Security Instnmtent and performs other mortgage loan
servicing obligations under the N ore, this Security lnstrwnent, and AppUcable Law. There also might be
one or more changes of the Loan Servicer ume1at:d to a sale of the Note. If there is a change of the Loan
Servicer. Borrower wiD be giVel1 written notice of tile change which state the name and address of the
new Loan Servica". the address to whicb payments should be made and aIJY other information RESPA
lOOS9g01.54
FoJrll 30G4 1101
00000605
00C;l:oS*fr
requiB
iu conoestion
wi& a noticc of transia of servicing'
if the Noe is scld and thereafter tbe Loan is
srvir:ed by a i,oar servicer
othcr tban the pncf:aser of &e Noe, the mortgage
loan servicir8 obligations
m Bonower wiil rernain with tht Loal Serti*r
or be transftred
to a succes8ol Loan serviccr and are not
assuru?d by the Note pur&aser unless otben'br
provided by the Note pur&aser'
Neither Borrowr nor l-md:r may cttullence,
join, ir be
joircd to ufv
jadicial
action
(as either.an
i*dhifuat iitiganl ff &c s'mber of a clasE) lhst arises ftom &te o&er Earry'r
aciors
pursuant to this
Securiry llstrtrffi{S or thai elleges that the other party has breacfied auy
provisioa o( or ary &rfy owed by
reasoa of. rhi6 secudty ix8trurrill, uutil nrch Bortowcr or Lenda has notified 6e otlrer party (with eucl
notice
giveu iu coryIiauce ;ith tht requirgm-"gtt
of futior i5) of
gl]t'!
allegd breacb aod afforded the
otha.par.ty berero a reaeorable
perioa ancr 6e giYElg of
ry&
noti.ce to ble conective action'
If
Appliuble larr
povides a riror period wnicn ruusiaapse
hfore cergin actioa ma be taken' that tine
period
qiII
bc dee@d to be ,"asorable for pgrposes oi Uis
pragr@' The oolice of aceleration
and
oppormiry to ffrc
gve,[ to Bsrrowff
p[xf,]aEt !o secriofi 22 Mn &c notice of acceleraticrn
given to
Bor:swff
pursuad to section 1g shall be dsr#d to satisfy
the aotice md opporaruiry to tale corre$iYe
actiol
provisious of this Section 20.
2L EsEsrdour $hbstatces.
As usc in &is seetioo 21; (a) Tiazardanrs sulNit'nce6"
are thos
sub*urgx ddlrd 4 roxic or lazardots sltbsEncss,
poluldfs, or wastc ty Environn:cnlal I-aw ad the
foflowitrg
gubdanc$:
easoiige,
kl5osac, ofrgt flanruable
or lsxic petroteum pro&rcE' toxic pesicides
and befticides,
volatile solvenb, Estsial6 comidng asb.-ctos or foroaldehyde, and radiaactive materials;
@) "Enviroamsrtal
lary' mearsfederal
tsws 8d Iaws of &c
jurisrliction where 6e Property is located
ttat
relrte to !cal& sfety or eEvirgllm6tsl
protecdbfi;
(c)
'ht'ironrnsotal-Cleaaup"
includes ary response
actirs, ;1mdial ,Ai-, o, reaorat actio4 as dcfiaed in Efifilogffidal
law; aud
(d) ar Enviromenal
Cmditim, trEa s a coditiotr frat caa caua, co&ibUtr lo, or otherf,rise Cigger an Ewirommtal
flemtp.
Bmowa drrlt ucit cauee or p@it ftE ple$roce, usq rIiryosal, ssTge, cr releare af ay Hazardous
SrfuBces, or Bremto
rclcah *y Art tai* $tlbsulpet'
on or in be PrsPtty' Borroc'cr shall not do'
aor allow amyore dse b do, aqflhi;g
aftcthg ec PrcPcrty
(a) that b ip-violetira
of my Enviroamenal
Ire, (U dictr creses aaEnvimmal
cdtiotr or(c) whicb duc so theprcecnce'
Itse' or rcIease of a
HsusrfuE Stbstele, creates a couditioa that aatvemcly aftsts &e value_of tbe Propett'y. Tle
Precedisg
two secdeocs shall [ot
@8
tD tbe prcence, us, or $oragg on tbC Propcrty of sEfiall
guantities of
E&ardo,u Stbsw &at;
g*r-a+ recogtrizcd !o k spPrcPriatg
t0 llctrmal reEidmtial uses and to
nabt*ce of tbeProperty
(#io6iog,-t"t *i tiritta to, hezatdmr $lhtafices in consumer
poductsi'
Bonogrer erll pr.dtii' give 6Oer wireo notice of (e) Ery isvesigatios'
claim' dsru'd' lawsuit
or o&er acriou by ,oy gorn**Et or regElduy agpnry or private pattr iilohing tbe Pfopeffy and ar'v
Hazardous SEbltaocc or Elvironmtal
llw of whi& Borrows bas actnal kowledge'
(b) any
Eiliromedal Coarlitbg" indudt"g }rlt nol liIEiEd to' ary
ryilliag,
lcakiag, disc'barge' rsleasc or threat of
rreleas of eoy Eazaldfis S,rbt*qi. rnd
(ci any cudition causod by ftc
prcmce' usc or rElease of a
Hadsus $rbstan* which advasely aficc$ tbe vatue of fire hoperty- If Borrowsr karns. or is notified
tyanygoq3mloffi.Iul'}gEler,yadority,ararryprivarcp6ty,&atanlyrmvaloroihgremediatioa
of ary Hazardous n tuurd ,n*iog tbe Prwerry is uewy, Bonower
shall prooptlf take all lecessa!,y
r#id actiors in aecordarce
c,i& EEvircffital kw. Nothing bereitr
*hal er'aE ary obligation on
l^eBder for ar Enviromlenial Clearnp'
100599015{
Fomr 3004 trol
@{aB
o'*r
P,/e l2ol 16
)<"*r&
requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter tbe Loan is
serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan sevicing obligations
to Borrower will remain v.rith the Loan Servicer or be transferred to a successor Loan Servicer and are not
assumed by the Note purchaser unless otb....""l'Wise provided by the Note purchaser.
Neither Borrower D(}r Lender mzy commence. join, or be join...'"t1 to allY judicial action (as either an
individual litigant or !he member of a class) that arises from the other party's actions pursuant to this
Security lnstrmnent or that alleges that the other party has breached any provision of. or any duty owed by
reason of. this Security rnstrum:nt. until sucli. Borrower or Lender bas notified the other party (with such
notice given in co::npl.iance with the requirem...'"llt& of Section 15) of such alleged breach and afforded the
other party hereto a reasonable period after the giving of such notice to take corrective action. If
Applicable Law provides a time period whi.c:h must elapse b:fore certain action can be taken, that time
period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and
opporttmily to cure given to Borrower Pll1'5W!Ilt to Section 22 and the notice of acceleration given to
Borrower pursuant to Section 18 &ball be d=ned to satisfy the notice and. opportunity to take corre..."t.i\'e
action provisions of this Section 20.
21. ffiu:ardOU5 Substances. As lJsed in this Section 21; (It) "Hazardous Substances" are those
subsam:es defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the
fonowing substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides
znd herbicides, volatile solvents, materials containing asbestos or fonnaldehyde, and radioactive materials;
(b) "Environmental Law" means federailaws and laws of the jurisdiction where the Property is located that
relate to health. safety or environmental protection; (0) "Enviromne:ntal Cleanup" includes any response
action, zemedia1 actiDn, or removal action, a.s defin:d in Envirommmtal Law; and (d) an "Environmental
Condition means a condition that can cause, contn"bllte to, or otherwise trigger an Environmental
Cleanup.
Bonower shaD JlCJt cause or permit the presence, use. disposal. storage, or release of any Hazardous
SubstaJlCeS, or thRIaten to releaSe my on or in the Property. Borrower shall not do,
llOC allow anyone c:Jse to do, anything affecting the Property (a) that iJ in violation of any Environmental
Law, (b) which creates an Environmental Condition, or (0) whlch, due to the presence, use, or release of a
Hazarclous Substm:e, c:reares a ctmdition that adversely affi:cts the vBlue of the Property. The preceding
two senteoces shall not apply to the presence, use, or storage on the Property of small quantities of
IIazardous Substances that are generally recognized to be appropriate to normal residential uses and to
maintemmoe of the}lroperty (including. but not limited to, hs.zardoos substances in consumer products).
Borrower shall promptly give LeJIder written notice of (2) any investigation. claim, demand, lawsuit
or other action by any governmental or regulatory age:ru:y or private party involving the Property and any
Hazardous Substance or Environmental Law of which Borrower has actual knowledge. (b) any
Bnviro1llDelllal Condition, including but not limited to, any spilling. leakiDg, discharge, release or threat of
release of.my HazamouB Substlmce, and (c) any condition caused by the presence. use or release of It
Hazardous Substance which adversely affects the vahle of the Property. If Borrower learns, or is notified
by any govemmemal or regulatory authority. or any private party. that any removal or other remediation
of any Hazardous SubsI:anr:e affecting tbe Jlroperty is neceasmy. Borrower shall promptly take all necessary
remedial actions in accon:lance with Environmental Law. Nothing herein &hall create any obligation on
Lender fur an Enviromn.."Dta1 Cleanup.

FoIIII 30Q4 1101
+,;ir0,3gS"t
NON-LNIFORM
COVENAJ.ITs. Borrower etd l-erder tuftb-J covensEi and agree as fo110wr:
ZZ. Acceler:etion; Remedies. Lender shall givc rotice to Borru*Br pritr to eeeelerttion followiag
Borrore's breach of try coveuant u egreeraeat in tbis Becuriiy Insfrzuert
(but not prior to
mcdefition under
geciion
1g uEless Appr;bb Law proviGm othenwise). Tte notice sbsll speciftr':
(a)
tbe ddaulfi
G)
ihe rction requird o stlre dhe defisEtg
(c] t dete, not less- theu 30 dtys from tt'e date
tte rotice f*
*"*
to Borrurs-er, by rvtlch ttre defsult must be cur*di and
(d) thst fgilure
to sure the
ddcult os or-befor" the dste rpu"t.! i, ffre uoflce ncy resnlt ia accelerstion of the ssm* secured by
&is $ecnrlty hsfixtpest *O ot. of thc Propcrty' fhe aoftce chsll fut&er tuforn Borrower of the
rl6t to reiigtcte after acceleration end tLe tignt to bring * ccnrt tcdoa to sBsert the uen-exi'stence
of
,
-A**uit
or sry other ddmse of Borrewer fo eccderrtion
and sela ff tLe deftult is roc cursd on or
bdore the date spcclfied in tne aotce, Lender rt ltr optiou may require inmediab
pr5'rnmt ip full of
*lt ,o*, s.*r"a by itrirsecnriry lnstrutril6t trl&mt further tlemard ud uey invoke ary o&er
iemediu pe$dtted by Appiicsble tnw.'t-coder *rtt be extitled t0 colteef all eryeuse* lacurred in
pr*rt
!
ih- reneAies-rrarided ia thic Section 22, ircludlrg but not
llrrri4{ ts, reasogsble altoroeys'
fe*r trd carts of tidc evidmce.
It iE uaderstgod tgt
ryreed
to by Bcrrgver &lt &fu $e$riry lssftgru3ct il subieet
to tbe
fonsdosure
prccedures of the-Ar&encrg lt"artory Foredosure
Law, Ad 53 of 19E7, 3g ametrded fr6m
;;;h-d;- dU. "aC'),
ior Er;1twr?s breaeh of ary eaveartrt or agreemenf in thls Securitr
Instrcraerl In furgerruL and aot itr
lHtttiotr of tlc prtvisions rf Secfica 14 ary forberance by
Leuder ir exernctsirg *
*itt or remedy under 6e act shrtl not be a walver af or preclude
eccele,rztion rnd fhe **Age if euy ttght or remedy utdcr the Act or at the optiou of Lcnder' use of
iudi
cinl foredusre
Procedl
g*
13. Bnlease. I-lpm pqyEctrt in firll of all susos sflred by ttis SeffiiW ltlstntsad, Lesds shall
orfore Ui,r Sec,rity Lrolruc. Bormcffi *alt pay anf
fordatiol
cos6.l-ender nay cbafee Borrower a
fte br releasi* rx;s Sscuiry ;-'trrr,ffit, but orly if fL feat
paid io a frird party for ssvicee ,'odsed
ad &e ctqdry of &e fee ir pcrnliftd undir Applicabte law'
24. Saivesr BoEow$ waiva 8ll dShB of bo(EsSead exeoptioa m' and BtaEtory red*rytio1
of' fte
Propefty aEd aU righf of appraiseme"f
of tle froprty 3al1 telil4ishes all rig]ts of mrtesy and
'lowEr
in
thc P:,oPerry.
{,*f$f*,
14Q599015a
Fonn 30$4 lnl
@t{tq
p,*r
Peg! 19 d 16
NON -UNIFORM COVENANTS. Borrower and Lender further covenant and agree as fo11ows;
22. Aeeelet'Sltion; Remedies. Lender shaD give notice to BarraweI' prier to acceleration following
Borrower's breach o.f BIIY covenant or agreement in tbis Seeltrity Instrum.ent (but not prior to
acceleration under Section 18 unless Applicable Law provides otherwise). The notice shan specify: (lI)
the default; (b) the IIIctiOll requlred in eure the defanlt; (e) a date. unties!; than 30 days from the date
the notice is given to Borrower, by which the default must be cured; and (d) that railure to cure tbe
on Dr before the specified in the Dfltlce lUy re$llit ill acceleration of the sums $eeured by
this Security Instrument and sale or the Property, The notice shall further inform Borrower 0. the
right tD reinstate after aeceleration and the right to bring fI c&urt action to assert the noa-existenc::e of
a default or any other defense of Bomwer to aceelerBtioD anel we. If the default is not cured on or
before the date specified in the notice, Lender at iU option may require immediate payment ill full of
an sums secured by this SeCUJ1ty lnstnunent witbout further demand and may invoke any other
remedies pennitted by Apillieable Law. Lender shall be entitled to collect all incurred in
pmuing the remedies provided in th.Is Section 22, iD::lnding. but net limited to, reasonable attorneys'
fees and com of title mdeJiee.
It is Ullderstood ami agreed to Ity B&m>wer that this Secnrlty Instrument &nbject to tbe
foreclosure procedures of the Arkauas Statutory ForeclOJure Law, Act 53 of 1!t87, amended from
time te time (the nAct
fC
), tnr Bo-rretwer!s breach of any evvelUlnt liT agreement in this Security
Instnrment. In furtberaDee .lind not in limitatiltD of the provisions M Section 12. any forbearance by
Lender in exerciSing any right or remed.y ullder tile Act shall nnt be a waiver of or preclude
acceleration and the exercise of IU1J' rigbt ltr remedy ueler the Act. en' at the option of Lender, tJse of
jndicial foreclosure proceedings.
13. Release. Upon payment in full of all sums secured by this Security Instrument, Lender shall
release this Sec.:w:ity Instrument. Borrower shall pay any recordation costs. Lender ma:y cbarge Borrower a
:fee for releasing tbis Security Inst:rument. but only if the fee is paid to a third party for services rendered
and the cbarging of the fee is pem1itted l1Jlder Applicable Law.
24. Waiverx. Borrower waives all rights afbomestead exemption in, and statUtory recienJption of, !he
Property and aU rigbL of appmisement of the Property and relinquishes all right!; of cmtesy and dower in
the Property.
l-005990154
Fol1'II 11&1
0tr(I00E;t[i
By SIGNING BELOST. Boriower sccepts aud agffes b the tertrs and covera*s coutained in this
SeuEity bsElooE[trud in any Rider efccutcd by Borrorrcr ald rcocrdrd *ith it'
WiEtesset:
-t-
UJurnrufin.
tl,' ff.ror,hs'.''
ts.at
Eagretta Y li[grtgg 'tsorower
(Ssat)
(S.EI)
-Bo$oscr
-Borower
-Bolro*sr
10059901 5{
Ferm 300t1 trOl
@.+1nq
"r*,
FEEt4of16
..
BY SIGNING .BELOW, Borrower accepts and agrees to the terms and covenants contained in this
Security 1nstnnnentand in any Rider executed by Borrower and recorded with it.
'Witnesses:
(Seal)
-Borrower

Y Ko::t
(Seal)
.Borrower
(Sea.')
____________ (Seal)
-BGrrDwc! -Bnrrowcr

-BoU'Owet


-Borrowct -Borrower
lOQSU01S4
"--'4 or 16 Fonn 3004 1101

+st00ES$i
comry *'
?Ulfi*i
STATS
OF ARTG,N&AS'
for release of liea"
-1,*"Tq"^
FE {sof !g
ffiffimmffimffiffim$wffiffi$ffimmffi
*,iolr'Jo-t
cor-{ ''
(>o'Pl
ioam
rg+s-tlgoe
UB Rscordlngg
1005990154
Fo;ro 30S4 'lel
@.tGRptoal
on fis w L+#,
dzy ot
[a'4'Ls
*
t:
5..ioodteftm
ml tk rrdEreiBusd
officer'
persoaaltvaPeated
TL.
&L.,f
a-*
[
fu
o-4 &e4.-
-h-
o * I 6 tu,
#rxaan6 lflD Wtr
'/
klrutr
ro rc (or satisfrctrcriiy
provea)
9I=*c
pe'stm@Uouc-'q@.ry6*lrribsd
to'ibe wi'rhin
in*.u,Enr and ackrcwbdfi"tfi
hdsfu,(@F.ffi-ffoo,t
fot tbe-puposes
therslo co'taincc'
ln wims
wbcrmf I hcrelltrlo set dy band d official sal'
My Co{ulrissiooErpires: l/e
/z"oY
ffi
i.ffi
LieilHoldftrer
ceato4'
Hortliegc
eoqrocaeioa
aaoi*ltrzss
sE 6th
str ste 2oo
BelJrolel
n! E80Ca
?elephoa; ltut$efi
425 - I 4 5- 30 0 0
CoflErct
"".
STATE OF ARKANSAS,
County SS: (
krown to me (or satisfactorily proven) to the
instrument and acknOwiedged that helshe same for the purposes therein contained..
1n witnesS whereofI hereU1lt.o set my hand and official seal.
Lien lfuldcr:H&w century Kortq&qe
Corpo::atioa.
Address:ll23S SS 6th St, Ste 200
Bellevue, 1m. 98004
Telephone Number:
Contact
for release of lien.
f>IIIe is of '5
\111111111111111111
U29?&4S13-e1.KE1S
t10RTGAGE .. ct)P'( .'
I...OAHlI T00'5-113
4
"
US RacOrdlngli
"-----_.-._- ---- ----'

Fonn 3004 1/01
etiroooazo3 Receivedz 1/22/2A10 1 : 41:18
Filed & Recorded in Official Records of
clRC[rrTlCOIJ!,rnr CLEBK Fees ${5.
00
o!/22/2a]-0 o1:55: 16 PI'{
Pt.].L4.sKT COUNTS
PM Recorded:
PAT OItsRTEN,
Thh lostuacut haporEd Bf
Fobctl MY,bola, Jr.
YTI,SON 4, A8$AAITE& P,LLC
1521 Mt8lill Drivli SuiE D2l0
LidcRodqAfu$a ?2211
(5ol) 219'938E
RECORBING LEGEITD
PT,EASE RBMRD N T}IE
AP?BOPRIAIE REAL ESTATE RECORDS
GRANTOR(I)
Ttomar J. Mofion esd Wanncfig Y. Morton
GRAMEE{s)
DeuEche Btlk Nathnel Trurt Conpatn u Tru$ec
for Morgea S*nely ABS Crpttrl t Inc Tru* tr00&
sg3
MORTGAGEE'S DEED
WHEREAS, on languy 23,Z}MrThoroas J. Morlon md $fanneUa Y. Morton sx@{$ed srd delivelEd to
New Ceonry Mo{gag, Corpc,n*im I rnortgage lecordcd February L7,2W6, as bstumeat No. 2006012916 in
tbe rpal estdr? recqFds-of
puiasH
Cormty, A ,
sfitrcby, f6 trs
FEpose
of securing the pa5T net o{ cetiitt
iad6tedncs 56 o16. in said mortgage, thry dirt
$ant,
se[, and omvry to the said mortgEgee thc following-
described poprty, siAl&d,lyiag, mdbeingiofre CountyofPulaski, S'tcte ofArkatlsss:
l,ot 28, Blo* 17, Oveatmok Addition to tbe Cify ofNorth Little Rook Pulaski Comtl', Arkansas,
Conmonly kaown as: 52 Dorrc Ckeek Circle, Norfft Litte Rooh Artansas 7211&02
A].1D, WHEREAS, deftuit has been mad in thc payneart of said indehedness and Deutsche Bank
NEtioual Tnrst Co6pmy, as Tnrstec &r Morgm Stancly aSS-Capial I IDc. Trust 2m6'I{E3, as holda of said
ideffiEeess, bas sirisg'sEid ddsnlt eleded to-setl ssid
ir"grrty
in accordanoe with &e provisions of Ark. Coile
Am-
$
I &50b i 01, ef seq., as anrended
(&e
"Agf)
for the purpose of payrng said in&t'Ednessl
A1rlD, WHEREAS, Wilson & Associates, P.LJ-,C. was apoined by Deutsche Bank Nefionel Tn:st
Conpmy, as Trr.rsee ar rtloregs S'tanely ABS Capital I Inc, Tnrst
joo6-r83,
pllEsrrart to Act 983 of 1999 u its
altotney-io-'frtf to eeLl said prop#y pursilar{ !o tbe Ast
AI{D, WHEREAS, notioe of the time, place, and. tffms of sucit sale, as
erescq{ly
' e tff$ of &e Act'
*E
dreo
byraili'rg of 6e requisitc Mortgagcc's Noticc of Default aod &ttsrtion to S"ll witbin tbirty
(30) dslE
or ffireporiing or slia Notice, rrio trtoti.claiag
publishod iu a local nerrryryet of generar sirculdion in Puladd
Coung, Ogr
q+i
tincs fu four
poasecutiw
s"{i
-'tn
tth *rD iast prbliccion bcing no mort thm tEll
0
0) ds!'s prin'
to the'Brls, rii
q, posihg notics of Euch sale, purnrmt to Ast 983 of 1999, by a tbirrd-party
Posd$
provifu, at
e, pb* tr tl,
"i"iLo*J
fm Pulaski County, Arkansas rntcre notieer ofjudicial stes atc customg[g$]1-
Xr&[ No, 72-176119

2010004203 Reoeived: 1/22/2010 1:41:18 PM Reoorded: 01/22/2010 01:55:16 PM
Filed & Reoorded in Official Records of PAT COUNTY
CIRCUIT/COUNTY CLERK Fees $45.00
. .
This IIlltnlmCat Prepared By:
Robul M. WIlsrm. Jr.
WfLSOftl4. P.L.LC
1521 Merrill Drive, Suite D-22Cl
Little Rook, Arkansa& 72Z! t
(S()I) 21993&&
RECORDING LEGEND
!'LEASE RECORD IN TIiE
APPROPRIATE REAL i!STA TE RBCORDS
GRANIORCs)
Thomas J. Morton and Wannetta Y. Morton
GIWmEfs)
Deutidle Bank National Trust Compallf, as Trust=
for MOrgaJI Stanel), ABS Capftal I Inc. Trust 2-006-
HE3
MORTGAGEE'S DEED
WHEREAS, on January 23\ 2006, Thomas J. Morton and Wmmetta Y. Morton executed and delivered to
New Century Mortgage Corporation a mortgage, recorded February 17, 2006, as Instrument No. 2006012916 in
the real estate records of Pulaski County, Arkansas, whereby, for the purpose of securing the payment of certain
indebtedness set out in said mortgage. they did grant, sell, and convey to the said mOltiagee the following-
described property, lying. and being in the County ofPulasld, Sta1e of Arkansas:
Lot 26, Block 17. Overbrook Addition to the City of North LUtle Rock. Pulaski County, Arkansas.
Commonly known as: 52 Dove Cleek Circle, North Little Rock, Arkansas 72116-6402
AND. WHEREAS, defirult has been made in the payment of said indebtedness and Deutsche Bank
National Trust Company, as Trustee fur Morgan Stanely ABS Capital I Inc. Trust as holder of said
indebtedness) has since said default elected to sell said property in accordance with the provisions of Ark. Code
Ann. 18-50-1 01, et seq., as amended (the for the purpose of paying said indebtedness;
AND, WHEREAS, Wilson & Associates, P.LL.C. was appointed by Deutsche Bank National Trust
Company, as Trustee for Morgan Stanely ABS Capital I Inc. Trust 2006-HE3, pursuant to Act 983 of 1999 as its
attomey-in-fact to sell said property pursuant to the Act;
AND, WHEREAS, notice of the time. place, and terms of such sale, as prescribed by the terms of the Act,
was given by mailing of the requisite Mortgagee's Notice of Default and Intention to Sell within thirty (30) days
of the recording of said Notice, said Notice being published in a local newspaper of general circulation in Pulaski
County four (4) times fur four consecutive weeks, with last publication being DO more than ten (10) days prior
to the sale, and by posting notice of such sale, pursuant to Act 983 of 1999, by a third-party posting provider, at
the place in the courthouse for Pulaski County, Arkansas where notices of judicial sales are __
EXHIBIT
W&A No. 72176119
I- 8
a
2010004203 2 of 7
AND, WHEREAS,
pursuant to the provisions of said Act, Dsutsche Bmk National Tnrst CompsY, as
Trustee for Morgan sar.iy ess capital I'Inc. Trust 2005-IiE3, by its attomey-in'fapl
wilson & Associates,
p,L.L.C.,
p*o"i.* t" *rUiria p*gelty at prblio auctioq at the Pulaski County Courthorce, on or about Jesury
12,2010 at3:30 P.M,;
A],ID, WIEREAS, at the tine aad
place aforcsaid, such sale was conductd
pr::s,uant to Aot 983 of 1999
by a Sird-party auctioaeer and said propcrty was sold to Deutsclre Bank Nationat Trust Conpany, asTrustse for
tl&; S6*ty ABS Capiull i"r. T"i" ZOOg-ifBg for the pnc-e and sunr of $165,750,00,
it being the best aEd
hiehest bid,
NOW, THERETORE KNOW ALL MEN BY THESB PRESENTS, thst Deubcire Bank National Tru*
Compao.y,as Truetce ioifrtorer; Sffiely ABS Capital I Inc, Trust 200&HE3, bT its etomey-in'facg
Wilson &
Associates, P.L.L,C., by virtrc of the powers gf"A by ftc Ast, and il corsideration of fre foregoing
premises
md of the sm of $16i2S0.00,;riJUitle
saLi Deubche Bar:k National Tnist CorrPary, as Trustee fm Mtorpn
Stanely ABS Capitat r ioc. tnri 20dGlE3, {re receipt rn'hcrcof is lreeby aokro$'ledej4
(wtrich said sum cf
1116*i has been apptied-acoording to ttre directions of ifo a"t), does GRAt'lT, SELI" AND CoMTEY unto the
seid Deu6&e Bank Ndional Tnrst Company, as Trustee for Morgm starcly eas paqitat I Inc. Tn:st 2006-rIE3
and ir succcssors a"d ;ig,s foren,E rh; follil,b;dssriH
plrty, Eidted iE ths co'urry of Pulaski, state of
Arkarsas" tswit:
;,i,Z6,Bloc,k t?, Overtrrook Addition to the City ofNortb Lide Rock' Pulsski Coruty, A:tansas'
comrnonly known as: 52 Dove Cbeek cirple, Norr& uule Roch A*msss 72116-&A2
Tar Parcel No.: 33N0170040500
TO HAVE Al.{D TO HOLD tbs sBid p60pcrt/, topther with ail and singular, &e riEilts and
,rp,rrt** thereto io *yr*r* belongiry uato tbe i*a'O*e"nt Balk Nationai Trust Conp&Y, as Trr'lstee
fo Morpn Stanely ABS Cryitri t Inc. Trost 2006-H83, its srccessors, and assigns fotever. And fu el1"I on
bEhalf of tre mid a*rro<r) of said mortgage, mo tletr hsi$, executors, a,tminisEators, ard assigns,'ths
*O*rigt a aoes herAry UirO tre said fh;#; J. Mqbn aad Wanreth Y. Morton, thcir heirc executorq
adminimamrs,
"rU
*rifir a-;r*rrt r"d fo;; defen4 a1l and singular, said promisc* u::to the said De*sche
Bmk NEtimaI tnrst
-6ryarry,
as Trostee f; Mory; StanEiy ABS Cryihl I
Jnc' frust
20ffi.IIE3' iE
$rccessffi' aod assigrs,.grinst-every
pmcm cttonsoe\B la$ftlb claiming or ta claim the same or eny part
tbcreof,
ExECUTED onfis
*fL drv ot f,q--1 ;YU-
Delssche Bmk National Trust Ccntpany, as Trustee for
Mor$r Stanety ABS CaPial I Trust 2006-HE3, bY its
afiomcy-ir&st, Wilson &
W&ANo. n 116119
By:
PIJ".C.

2010004203 2 of 7
AND, WHEREAS, pursuant to the provisions of said Act, Deutsche Bank National Trust Company, as
Trustee for Morgan Stanely ABS Capital 1 Inc. Trust 2006-HE3. by its attorney-in-fact. Wilson & Associates,
P.L.L.c., proceeded to sell said property at public auction, at 'L.'le Pulaski County Courthouse, on or about January
12,2010 at 3:30 P.M.;
AND, WHEREAS, at the time a."ld place aforesaid, such sale was conducted pursuant to Act 983 of 1999
by a third-party auctioneer and said property was sold to Deutsche.Bank National Trust Company, as Trustee for
Morgan Stanely ABS Capital I Inc. Trust 2006-HE3 for the price and su.-n of $165,750.00, it being the best and
highest bid.
NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS, that Deutsche Bank National Trust
Company, as Trustee for MQriaIl Stanely ABS Capital I Inc. Trust 2006-HE3, by its attorney-in-fact, Wilson &
Associates, P.L.L.C., by virtue of the powers granted by the Act, and in consideration of the foregoing premises
and of the sum of$165.7S0.00, paid by the said Deutsche Bank National Trust Company, as Trustee for Morgan
Stanely ABS Capital I Inc. Trust 2006-HE3, the receipt whereof is hereby acknowledged (which said sum of
money has been applied according to the directions of the Act), does GRANT, SELL, ANTI CONVEY unto the
said Deutsche Bank National Trust Company, as Trustee for Morgan Stanely ABS Capital I Inc. Trust 2006..:HE3
and its successors and assigns forever the following-described property. situated in the County ofPulasld, State of
Arkansas, to-wit:
Lot 26. Block 17. Overbrook Addition to the City of North Little Rock, Pulaski County. Arkansas.
Commonly known as: 52 Dove Creek Circle, North Little Rock. Arkansas 72116-6402
Tax Parcel No.: 33N0170040600
TO HAVE AND TO HOLD the said property. together with all and singular, the rights and
appurtenances thereto in anywise belonging unto the said Deutsche Bank National Trust Company. as Tmstee
for Morgan Stanely ASS Capital I Inc. Trllst 2006HE3, its successors, and assigns forever. And for and on
behalf of the said Grantor(s) of said mortgage. and their heirs, executors, administrators,and assigns,. the
undersigned does hereby bind the said Thomas J. Morton and Wannetta Y. Morton, their heirs, executors,
administrators, and assigns to warrant and forever defend, all and singular. said premises. unto the said Deutsche
BBDk National Trust Company, as Trustee for Morgan Stane!y ABS Capital I Inc. Trust 2006-HE3, its
successors and assigns. against every person whomsoever lawfully claiming or to claim the same or any part
thereof.
EXECUTED on this __ day of J:o k
J$tD
>';......----
W&A No. 72176119
Deutsche Bank National Trust Company, as Trustee for
Morgan Stane!y ABS Capital I . Trust 2006-HE3, by its
attorney-in-fact, WUson & . iates. P LL.C.
By:
2
a
201000{203 3 of, 7
MBttbw smitb 2006098
Dirsstor
$cKlJowL.EDGMEI.IT
STATE OF ARKA}ISAS
COIINTY OF PIJLASKI
Before ma, the undersigned nohry public of the siate and coutrty aforesei4 personally appeard
Maf,hew Smith, n'ith
q{rorn
I am p"usonaliy acquainteC (or proved to ms on the basis of satisfadory evidence),
and sl[o, rpoa oalt, acknowledged zuch person to be a Director (or other suoh officcr authorized to execute the
instruaentj of Wilson & Associates, P.L.L.C., aEornefis-fsct for Deutsohe Brnk National Trust Company, 8s
Trustee for Morgan S@ly ABS Capiei I Inc. Trust 2005-HE3, asd that such officer exeq$ed the foregoing
inskument for the purposes therein coatai:red by personally signing his nan:e thefe'o.
__fff:s
my hard and seal at office in Liule Rock, Arkansas tld, l) aay or
TCrn
.
.
My Couraissioa
CEBTTFICATE OF COMPLIANCE
I certiry undo penalty of false swoaring thal fic logeliy
this inshumsnt.
Met&ew Sei6
Agent of Gtsntse
l52i Merrill Drive, Suite BZ20
LitleRochAR 2211
Grsbc'sAd&!ss:
Wells Fargo Bttrk N.A.
3476 SEtri,itrBurleYard
F6t Mill" SC29715
Tar Parccl No. 33N0I7004O500
I.os[No, m<0640
*,
"on'
*,1$3#S?,9*;-;o.
ro, o
starnps lrave been
Ptaccd
on
W&A No.72-116119
...
I
I
1
I
I
I

2010004203 3 of 7
STA1E OF
COUNTY OF PULASKI
Matthew Smith 2006098
Director
ACKNOWLEDGMENT
Before me, the undersigned notary public of the state and county aforesaid, personally appeared
Maf"Lbew Smith, with whom I am personally acquainted (or proved to me on the basis of satisfactory evidence),
and who, upon oath, acknowledged such person to be a Director (or other such officer authorized to execute the
instrument) of Wllson & Associates, P.L.L.C., attorney-in-fact for Deutsche Bank National Trust Company, as
Trustee for Morgan StaDely ABS Capital I Inc. Trust 2006-HE3, and that such officer executed the foregoing
instrument for the purposes therein contained by personally signing his name thereto.
Witness my hand and seal at office in Little Rock, Arkansas this day of -r--CbA
lu .
Notary Public .....
My Commission E if. s: J'EeeSKO
PUloacJ County
My CommlUlon Explraa 09.0&.2014
CERTIFICATE OF COMPLIANCE
[ ""'"i' ...... ponal1y of false swearmg that !he Ieptly '-P' have b<= placed co
&m-...nL
Grantee's Address:
Wells Fargo BBDk N.A.
3476 Statcview Boulevard
Fort MUl, SC 29715
Tu Parcel No. 33N0170040600
Loam No. :00:xxx0640
W&A No. 72-176119

Agent of Grantee
1521 Merrill Drive, Suite 0-220
Little Rock, AR 72211
0
2010004203
A of 7
SERVTCEMEMBERS
Cfl'IL RELTEF ACT AFEIDAVTT
STATEOF fuks$sas
COTINTY OF tulaski
BEF'ORE ME, fhe uodersignad authority, on this day personally appeared Mar$ew Smitir, who after
being duly sworq depossd and stztod:
l. i arn thc Direstor with a ffitain mortgage, dated Jaar:ary 23, 2006, rccorded' Febn:ary 17, 2006'
-as
iasbnmut No. 2006012916, in ee H estatc records of Pulaski County, A:kaDs8s, exeorted by
Thornas J. Morton aDd WaIlrofra
y.
Mortqn ia favor of New Ceotfy MortgEge Corporation to
stcrne the prymmt of apromissory notr to Now Ccoury Mortgage corporatioo
Z. Dsrreele Benk National Tnut Compary, as TrusEe for Morgan Stanely ABS Capital I Inc' Trust
200GHB is tbe holdr of or agent for tUe holder of tbe indetitedaess eecrr9d by seid mortgage'
3. To tire best of 1yry knowiedge and belief, the mortgagory holding an inuest in the above-described
prcpcs{y .11g[e
ili
normcn&rs of the Armed Fories of tle United Stdes of America asd bed not
uec,n nem5665 of *y such srtitics for at least &!co (3) montbs pior
F +:
duf, of the fo'reclosure
sale tbe *tj*rno*of or (2) were menrbers Aroed itorrres of tbe United States of A.ueriee at the
time tbe scsurity istrument was executed,
4. As sucl1 forecios11re of this propffy will not be subject to the provisions of 50 U.S'C'S'
$501'
et seq. (fire Servicanenrbers
Civil Reiief Ad)'
FURTT{ER ATFL{I{T SA]ETTI NOT'
DATED thl,
fHLday
of .{,n*-,.1
-,o
r
t
{)
E}GIIBIT
55A"
Direstor
n-fi6119

2010004203 4 of 7
EXHIBIT "A"
SERVICEMEMBERS CIVIL RELIEF ACT AFFIDAVIT
STATE OF Arkansas
COUNTY OF Pulaski
BEFORE ME, the undersigned authority, on this day personally appeared Matthew who after
being duly sworn, deposed and stated:
1. I am the Director with a certain mortgage, dated January 23, 2006, recorded, February 17, 2006, as
Instrnment No. 2006012916, in the real estate records of Pulasld County, Arkansas, executed by
Thomas J. Morton and Wannetta Y. Morton in favor of New Century Mortgage Corporation to
secure the payment of a promissory note to New Century Mortgage Corporation.
2. Deutsche Bank National Trust Company, as Trustee for Morgan Stanely ABS Capital I Inc. Trust
2006-HE3 is the holder of or agent for the holder of the indebtedness secured by said mortgage.
3. To the best of my knowledge and belief, the mortgagors hoJding an interest in the above-described
property were (1) not members of the Armed Forces of the United states of America and had not
been members of any such entities for at least three (3) months prior to the date of the foreclosure
sale the subject hereof or (2) were members Armed Forces of the United States of America at the
time the security instrument was executed.
4. As such, foreclosure of this property will not be subject to the provisions of 50 U.S.C.S. 501.
et seq. (the Servicemembers Civil Relief Act).
FURTIffiR AFFIANT SA YETH NOT.
-
DATEDthis.p4Lda
y
of j
72176119 1
;:U;tU .
/YA --===-======--

Director
I-
,irroonroi
s oi 7
DscilisMmbn$EidavitlRgncoa-Ioo
I 12-l 653
ACKNOWLEDGLENT
My Comnrission
ExPires:
STATE OF tukansas
COI.NTY OF Pulaski
personaliy
appeered before me, a Notaiy Publig of the state. and oouaty aforesaid, dr.rly coamissioaed
and qualified,lrra*rew smitr, *
pdtor,
with'whom I am pcrsonaiiy apquaintcd,
"?d
*,ho acknowledged that
le oisUc exeeuid the wifin instr:ncsnt as Di:Bctor for the purposes thereh muEiued'
Witness
py h*rrl and s.-ai at office in Uttle Rock, fukanses tbis
\)
day of aC^^
t\
+rn
12-176119

2010004203 5 of 7
ACKNO'WLEDGME]\TT
STATE OF Arkansas
COUNTY OF Pulaski
Personally appeared before me, a Notary Public of the state and county aforesaid, duly commissioned
and qualified. Matthew Smith, as Director. with whom I am personally acquainted, and who acknowledged that
he or she executed the within instrument as Director for the purposes therein contained.
Witness my hand and seal at office in Little Rock, Arkansas this of J C:v>
[0 .
(rfjl d
Notary PUblic -
My Commission Expires:
-
72-176119
2
,otrooooro3
6 or 7
itt'tio',,;.',+,
s
-
tr
$-
e.
ot the match.
r'l*rnl
-Bouv[
inbm*ion fumbhs
rtirtuty,q
.ctivE
Hc Et* rte fo+or* roo& l'l*
',. *,."-*
i
*
g*"*rao;1
,pqryl
Ontccrri# ft***ecatal'
t{sv-&4.2cog 1418:43
on tllt lEtufiatffi
yflI
h4el'fn6tG-d. Ble
lhc lndMduE sfiEeJE.
Uoon sesrchinc tlte infgnnatiofi data banks dte Departmert d Defurse llaryouer
ofu celer, Esed on te lrformElionttrat
yfii pfcrytde( he ebu,e b_ tlp anErn sta[E
dfire irf{id'ualasb s[ brsndtes of the Uniformed Sfuicgs
(A1tny, [lat'y, liarire Corfs,
AirForcg ISAA PWc Health,anciCoad Guard).
2010004203 6 of 7
r--------------------------------- .. -- .
fi'''QHf 1 ,f'', f ',!Ill Jnli'lW!' x-pJe J( r 1I"'lu1 t '_ in "x
'.', c, ,- ", I,,; ,._0:: .. >_., .. '<. :
1 .il iJ Wf<!) G.1I
: G'5 .. ... . '.$ ..
Upon searching the information data of tile Department of Defense Manpower
Data Center, based on the Information that you provided, the above is the curreri status
. af1he inciYidual as 10 all branches of the Uniformed Services (Army, Navy, Marine COrps.
Air Force, NOAA, Public Health, and Coast Guard). . . . '. .
.. . -'. . -
.
'" "-"- - '-' - --- . - . -- -
S!2r1 \::) - if' ',.?' -:. ....,-'. I -
000{203 7 of 7
Flr E# 'dir*
i*t-*
g6prelliniur*bn whdr{$e furdruiduC is ot rcfiva duiy, or
PoEr3ai
irdividual ir ot rraa on
DefialcrllicrE-Hei!
,EEEMBE{E
Lki 9,e8{i El
FI! Edi Ytx, f.ltci!5 rooE l{rh
i *r"*o ! 4 lsuenst"63ar Sft*t'lctnir
Ori,tnipra}fi tlw"os*r'do;'
'l.ffiffiffi=Il
i ft ' E'
q
fi '
P*' *ev'
-'a;'
i'
Unon seardritgtlre lnfomEtionda$
beffi; of
ry
Deprtle# dDefense
ififeffiif-Difr
-Certer,
fe*C on fii ir*6nnsti*r trat
you prwided, Ae above i s
i#ff;il ffi ;the irdividuet as to Ell brdncfres, dfie Unformed Seryices.
[fr,il'iliii?L-|,ne
corpilniiFscq
r{oAA
pub[c
Heat& ard coast Guard),
2t!10004203 7 of 7
fumishe<
zilJ/azztsl
Received:
4/25/2010
10:23:30
;il;il
Recorded
in official
R'eeords of
liecurrZcouprY
cr.ERl(
Fees $25
'
00
Al'l Recorded:
OAl26120!0
10:{9:43
A}{
PA.g O'ERTEN,
PIJIASKI
COUNIY
-
I
Associates
Closing & Title
I ccrti$ unda paralty of false s*'earing
0ut the legalty coma amomt
;rd;;til
;r*rt bane bcen placed or this insrr'rment' lf none shown' ocrrpt
or no mnsirlemtiur Paid'
&m1ee orAgeoE
GranteCs Address:
SPECIAL
WARRANTYPEED
XNOW ALL MEN BY TTIESE PRESENTS:
THAT, Delrtsc.he EmkNetioml
Ttust compeEy, st r**F
for Morgau shnely ABS Capitel I Inc
Tmrt ?S$GEE3,
Grantor, haviag been duiy ,;e;;-C
a
rysolr43a
of is board' of directors or otherntse'
by
and through its duly appointed
attomey-in-fact;hil
fal;" BaEk' N"{" for and in consideration
of the sum of
Ten Dollars
($10.00), and orher good and valuable considJration,
in hand'paid
uy J.ouaa.tn*n,D'
Disl ard Lyitir
f- Dist husbilDd rnd wife, Grartees, tf,. r"oipt *J*m"1*"1"f
whicl is ha'eby acknorn'lEdged'
does hereby
convcy unto the said G;;;
and unto tbeir ieirs and assigns forever, the fouow'mg
lands sitr:ated in Pulgski
Couty, fukansas'
o-wit:
I.$t76,iBloe}t
17, or,erbrook Addition
to the Cit5' of NortL Little Roclq Pulaski Cotuty, Arkrnsas.
Ihb hsm6l PEF sd!'F
Witon & Asri.lcs. P.L.L C.
I'f,l )'{.rrill DriE- Sciic D22O
LhrhRrk.Adls
7'ltl
,0(}1592
7{100-2592

2010023151 Received: 4/26/2010 10:23:30 AM Recorded: 04/26/2010 1D:49:43 AM
Filed & Reoorded in Official Records of PAT O'BRIEN, COUNTY
CIRCUIT/COUNTY CLERK Fees $25.00
Associates Closing & Title
1 certify uncle:' penalty of false swearing thai the legally correct amount
of documentary stamps have been placed 00 this instrument. If none shown, exempt
or no consideration paid.
(rQhrw.&o D . o !ttl A .{J't;.
Oran\ees Address: C ......... ___ _
Altrf+, L: f2ock., f1!< 7J11C
Grantee or Agent
SPECIAL WARRANTY DEED
KNOW ALL MEN BY THESE PRESENTS:
TIM T, Deutsche Bank National Trust Company, as Trustee for Morgan Stanely ABS Capitall Ine.
Trust 2006-HE3, Grantor, having been duly authorized by a resolution of its board of directors or otherwise, by
and through its duly appointed attorney-in-fact Fargo Ba.n.1; N.A., for and in consideration of the sum of
Ten Dollars ($10.00). and other good and valuable consideration. in hand paid by Jo-hnathan D. Dial and Lydia
A. Dial, husband and wife, Grantees, the receipt and sufficiency of which is hereby acknowledged, does hereby
convey unto the said Grantees, and unto their heirs and assigns forever, the following lands situated in Pulaski
County, Arkansas, 1O-",,1t:
Lot 26, Block 17, Overbrook Addition to the City of North Little Rock, Pulaski County, _.6ukansas.
nu. lnoIrument l"r:jJond by.
WlIson k ......... , ... P.LL.C.
1521 M:niIl Dri ..... Suite 1).220
Llnle Rock. """"'- 7m 1
7000.2591
7000.2592
EXHIBIT
I
C
-"rtrroorrrt,
2 of 3
TO IIAVE Ai.{D TO HOLD the same urto the said Grantees, and uuto tkir heirs and assig:s
forever, with all te,Ee,Betrh, Eppurtenances and hereditemefis tbereunb belonging, subject to cufietrt',exes and
other assessrrants, resenmtions in patents and all easemenb, rigl$s'of-way, enambrances, liens, cove[ants,
conditioos, resrictiong obtigations and liabilities as Eray appeff of reconC, the Grairtor hereby bi:eds itseif t'o
rnrlact md defead the title as against atl acts of 'J:e C:ranlor herein aad no o&er.
D(ECUTED in tile name of the Grantor tnis aa-
day of rf\afL h.
Tstt>-
De.rscho Bank Ndional Tn:st Company, as T:r.stee for Morgan Stanely ABS Capital I Iue. Trust 2006-HE3
By Vells Fmgo BaBb NA as Atomey-in'Fa*
Janet B. Farmar
VP Loan Documentation
tbbomPrclEEdbf
VEo&Awbc6,PJJ.C'
15Zl llrd DriE, S!i5&220
UlilllodLAtuc TZt!
?o,(LE12
,fimxlD
2 of 3
TO HA VB AND TO HOLD the same unto the said Grantees, and unto their heirs and assigns
forever, with all tenements, appurtenances and hereditaments thereunto belonging, subject to current taxes and
other assessments, reservations in patents and all easements, rigb1s-ofway, encumbrances, liens, covenants,
conditions, restrictions, obligations and liabilities as may appear of record, the Grantor hereby binds itself to
warrant and defend the title as against all acts of the Gran:tor herein and no other.
EXECUTED in the name of the Grantor this dO-
ZoLD
day of t<\OC. 'y>.
Deutsche Bank National Trust Company, as Trustee for Morgan Stanely ABS Capital I Inc. Trust 2006-HE3
By Wells Fargo Bank, NA as
Janet B. Farmer
BY: __ Loan Dooumentation
PRparad by;
WlIsoa a: AssuciIIes. P .Ll..C.
MeaII1 Driw, Sail. [).Z2fI
!.ittIa lIaoI;, AItImIoo mil
7@.2SP2
'7DOO-2S9Z
',rlroorrrr'
3 of 3
ACKNOWLET}GMEITT
STATE OF
L_ear*ouEj
)ss-
COUNTY OFL-san eernardln}
on this day before me, a Notary Public, personally appeared
well-know!, who acknswledged that bel$p is the rlFrL-D of \felis Fa.rgo
Banh NA, a corporatioD, es attoroq\'-in-Ad for Deutsche Bank Natioaal Tnrst Company, as
Trustee for li{organ Stanely ABS Capital I Inc. Trust 2005-183, a corlnration" and tbst he@ es
suc.h officer, being afborized so to do,
hzs
executed tbe frregoing inskrnrrent for tie consideration
and p:rrposes the6in conEined, by sigling fhe name of the corporation as such atomey-in-&ct by
uimse$@as suchofficer.
la.af R Feffner
Witoess EY
ha"d
Wlarr-n
urd notary seal this of day
IvIy comminsion erpires: k:Xotx 3 UeQ-
Itbbtqce?qrrd brz
Wibo & AEdrliPIJ*C.
If, I ld!.r,I DtiE, Ssb DZo
Il!bE!*,Atb$ 72211
?o0G2592
,00c2F2
3 of 3
--------------------_._._-_.-
ACKNOWLEDGMENT
STA1E OF ( CalifornIa)
)ss.
COUNIT OF( San Bemardln,
On this day before me, a Notary Public, personally appeared )anet a farmer
well-known, who acknowledged is the \J't'Ll> of Wells Fargo
Bank, N.A., a corporation, as attorney-in-fact for Deutsche Bank National Trust Company, as
Trustee for Morgan Stan ely ABS Capital I Inc. Trust 2006-HE3. a corporation, and that he@ as
such officer, being authorized so to do, bas executed the foregoing instrument for the consideration
and purposes therein contained, by signing the nac-ne of the corporation as such attorney-ill-fact by
such officer.
Wrtness my hand and notary seal this
__ ___ ---" '2uto .

'Ibi5lDs11.-.tJ>rq:.a! by;
VIiIsaD ol AIoacialos. PL.L.C.
l521 WealI DrM. SuiIo 0.220
LIllo Root, Arkaa& mIl


day of
cv.5.2012.194
STATE OFARKAI'{SAS
CIRCUTT COLTRT
PULASKI COI]NTY
Joh-uathan D. Dial and Lydia A. Dial,
husband and wife, individually, and on
behalf of similarly situated pemons,
Plaintiffs,
YersIls
Deutsche Bank National Trust CompanS', as
Trustee for Jl{organ StanIeyABS Capital I
Inc. Trust 2006-H8.3; Morgan StanIeyABS
Capital I Inc. TFust200&HE3; aud Thomas
J. Morton andWannettaY. Morton.
FILEI fI:/21/12 15!08! 1t
Larr-u f,rffie fulaski Circuit [lerk
FE
Civil Action No. 60CV2011-5001
ORDER GRANTD{G PLAINTIFFS'
FIRST MOTION FOR EXTENSION OF
TIME TO SER\IE DEFENDANTS
Defendants.
Before the Court is the motion of the Plaintiffs to extend for 120 days the time to senre
Defendants. After reviewing the motion, the pleadings, and other matlers of record and after
reflecting upon them for a time, the Court finds the order sought to be reasonable and therefore
grants the Plaintiffs an additional 120 days to serve Defendants.
IT IS SO ORDERED.
ilililllilllllllllllllllilllllllllililllllllffi
ll
60c\]-11-5001 60'l-$0100038628-003
JONOTllAl{ D DIHL ET RL V DEU 2 PAgES
PULRS,(I C0 0?1211?tt1| 03;08 PI{
CiRCUIT COURT
0R44
STATE OF ARKANSAS
CIRCUIT COURT
PULASKI COUNTY
Johnathan D. Dial and Lydia A. Dial,
husband and individually, and on
behalf of similarly situated persons,
Plaintiffs,
versus
CV.S.2012.194
FILED 02/21/12 15=08:11
Larry Crane Pulaski Circuit Clerk
F6
Civil Action No. 60CV20 11-500 1
Deutsche Bank National Trust Company, as
Trustee for :Morgan Stanley ABS Capital I
Inc. Trust 2006-HE3; Morgan Stanley ABS
Capital I Inc. Trust2006-HE3; and Thomas
J. Morton and Wannetta Y. Morton.
Defendants.
ORDER GRANTING PLAINTIFFS'
FIRST MOTION FOR EXTENSION OF
TIME TO SERVE DEFENDANTS
Before the Court is the motion of the Plaintiffs to extend for 120 days the time to serve
Defendants. After reviewing the motion, the pleadings, and other matters of record and after
reflecting upon them for a time, the Court finds the order sought to be reasonable and therefore
grants the Plaintiffs an additional 120 days to serve Defendants.
IT IS SO ORDERED.
1111111111111111111111111111111111111111111111111
60CV-11-5001
D DIAL ET AL V DEU 2 Pages
PULASKI CO 02121/201203:08 PM
CIRCUIT COURT OR44
Dated: r2
I
SrprmqK CurrM.cN, P.A.
MATTHEw B. FINcH
R0GERH. FITZCESON, JN.
JomP.Gu-t-P.A.
T. DemelGoonwnt
Dn.a,xp MlNtt
Krr.I.vW.McNwrv
Kr]"Lv M. McQUEEN, P.A
Cneru-es C. OweN, P.A.
DYLANH. POITS
HEARTSIIR^coN UI, P.A
W, BRADFORD SIGRMAN
CIR.ISTOPTGR L. TRAVIS, P.A.
Gn-l ElnoD RAGoN Owslq & SunnuaN, P.A.
ATTORNEYS
Mgrn.oPotrrAx Tonten
425 WEsr CAlrroL AVENIIE, SurrE 3801
LtrTt:r ROCK, ARKA}.ISAS 7220 I
(501
)
37G3800 FAx (501
)
372-33s9
rrww.gill-law.con
February 16.2012
JLTDYP. McNEIL
JENNTHOLTTEETB.
CI{AD L. Cur"r,orc,Jn.
KAflE,rL MI3DIEIoN
DA}rrELLE M. W}I TEHOUSE
CHADL. WooD
RosERr B. BeAcH
BEE{EcHoLS, CouNsst-
I0HN A. Foc[,s,{.AN
or Corrr{SEL(1911-2004)
W. W. Erx.op Il (195C2005)
The Honorable Wendell L. Griffen
Pulaski Cor:nty Circuit Judge
401 W. Markham Strcet, Room 410
Little Rock, Arkansas 72201
Re: Dial, et d-, v.DeuBche BankNational Trust-Company, et al'
Pulaski Counry Circuit Court Civil Action No 60CV2011-5001
Dear Judge Griffen:
I have enclosed a file-marked copy of Plaintiffs' First Motion for Extension of fime to Serve
Defendants in the above-captioned.
matter. I have also enslosed the original andtlrree oopies of a
pmposed Order Granting Plaintiffs' First Motion for Extension of Time to Serse
^Dciendants
for yogr reviJw. If the Order rneets with Yorn Honor's approval,
please sign it and
ask your staff to have it sentto the clerk for filing-
please
do not hesitate to contact me if you have any questions or need anything firther.
DKM:dkm
Enclosuues
STEPHEN K. CoFFMAN. P.A.
MATIHEW B. FlNCH
ROGER H. FITZGIBBON, JR.
JOHN P. GILL, P .A.
T. DANIEL GooDWfN
DRAKE MANN
KELLY W. McNULTY
KEu y M. MCQUEEN, PA
CHARLES C. OWEN, P.A
DYLAN H. POTTS
HEARTSILL RAGON m. PA
W. BRADFORD SHERMAN
CHRISTOPHER L. TRAVIS, P .A.
GILL ELROD RAGON OWEN & SHERMAN. P.A.
ATIORNEYS
METROPOLITAN ToWER.
425 WEST CAPITOL AVENUE, SUITE 3801
Lrrn.E ROCK, ARKANSAS 72201
(SOl) 376-3800 FAX (SOl) 372-3359
www.gill-Iaw.com
February 16,2012
The Honorable Wendell L. Griffen
Pulaski County Circuit Judge
401 W. Markham Street, Room 410
Little Rock, Arkansas 72201
Re: DiaL et aI., v. Deutsche Bank National Trust Company, et al.
Pulaski County Circuit Court Civil Action N 60CV2011-5001
Dear Judge Griffen:
JUDY P. McNEIL
JENNY HOLT TEETER
CHAD L. CUMMING, JR.
KATIE A MIDDLETON
DANIELLE M. WHITEHOUSE
CHADL. WOOD
ROBERT 8. BEACH
BErn EcHOLS, COUNSEL
JOHN A. FOOLEMAN
OF COUNSEL (191 1-2004)
W. W. ELROD 11 (1950-2005)
I have enclosed a file-marked copy of Plaintiffs' First Motion for Extension of Time to Serve
Defendants in the above-captioned matter. I have also enclosed the original and three copies of a
proposed Order Granting Plaintiffs' First Motion for Extension of Time to Serve
Defendants for your review. If the Order meets with Your Honor's approval, please sign it and
ask your staff to have it sent to the clerk for filing_
Please do not hesitate to contact me if you have any questions or need anything further.
DKM:dkm
Enclosures
IN TIfE CIRCUIT COURT OF PULASKI COUNTY, ARIC${SAS
JOIINATTIAN D. DIAL AND LYDIA A DIAL, ET AL PLAINTIFTS
-q+- v
FiLiIr i-l?,t391it
lE:5i::?
La.i.r: ili'ane
Fr-li.ir;i:i rlirtuit
fiti.i;
Ht(
DEE'ENDANTS
vs. cAsE NO.: 5&CV-2011-s001
}EUSCHE BANK OF NATIONAL TRUST COMPANT,
AS TRUSTEE FOR MORGAI{ STANLEY ABS
CAPITAL I INC., TRUST 2OOGHE3, ET AL
MO?ION FOR EXTE. NSION OF TIME
Now comes Separate Defendants, Thornas J. Morton and lVannetta Y. Morlon
and by and through their attornoy, PauI A. Schmidt. Sr., and mo\res this Court for a 30.
day ortcnsion [o answcr the Plaintiffs Complaint due to the fact tbat thc undusigned
attorney will be out of state from February 28,zolztluoryh March 12,zol?.
That I have talked with Drakc l\.tang Auorrey for ttrc
plaintiffs
and bc has no
objection for the cxtension.
401 W. Pinc Steet
P.O. Box 564
Cabot, t\R72923
(501) 843-7576
4lt liilil
tilt rff fl fl l flilfl l fli tfl ililil ililil
d#ffi#*,ry,'d,'ffi
tit{g'
Rcspcotfully submittcd by:
A. Schmidt, Sr., #67048
I
'd
0glt
'0l\I
urJ rl fi?
| +purlrlss lnrd hldgl;i llTt
'6tr
,q?J
IN THE CIRCUIT COURT OF PULASKI COUNTY, ARKANSAS
JOHNATHAN D. DIAL AND LYDIA A. DIAL, ET AL
VS.
CASE NO.: 6O-CV-20fl-5001 - 02.l29/12 lS:'52!27
DEUSCHE BANK OF NATIONAL TRUST COMPANY,
AS TRUSTEE FOR MORGAN STANLEY ADS
CAPITAL I INC., TRUST Z006-HE3, ET AL
Larr"i:' Crane Clerk
fiR
DEFENDANTS
MOTION FOR EXTENSION OF TIME
Now comes Separate Defendants, Thomas J. Morton and Wannetta Y. Morton
and by and through their attorney) Paul A. Schmidt. S{., and moves this Court for a 30
day extension to answer the Plaintiffs Complaint due to the fact that the WldeI.-signed
attorney will be out of state from February 28, 2012 through March 12, 2012.
That I have talked with Drake Mann. Attorney for the Plaintiff's and he has nO
objection for the extension.
l'd 08LI 'ON
Respectfully submitted by:
__
P A. Schmidt) Sr., #67048
SCHMIDT LAW FIRM, PLe
401 W. Pine Street
P.O. Box 564
Cabot, AR 72023
(501) 8437576
11111 /1111/11/1 1111 11111111111 1111 III III 111111111
601-60100039136-002
JOHNRTHAN D DIAL ET m. V DEU 3 Pages
PLlRSKZ CO 0212912G12 0452 PM
CIRCUIT COURT ' i'lN9f
CERTTNCATE, OF SERVTCE
I, Paul a. Sonmidt, Sr., hereby certify that a copy of the foregoiug Motion has
been scnt by First class Mail to lr{r. Drake M$rn, Affomey rrtLure4,ls W. capitol Ave.,
Suirp 3801, Little Rock, AJ.722}l,onthis
k_aay
of
-
-k-<-
,'ZO|Z.
[
'd
0B{ I
'0N
urf
l
rpt
lpurlqrs lnpd !1|d9i;, U\l
.6tr.qej
CERTIFICATE OF SERVICE
I ~ Paul A. Schmidt, Sr., hereby certifY that a copy of the foregoing Motion has
beea sent by First Class Mail to Mr. Droke Mann, Attorney iii ~ Capitol Ave.,
Suite 3801, Little Rock. AR 72201, on this A -r day of , 2012.
~ l L : u "
1 A. Scbniidt, Sr. ( 7t--
SCHMIDT IA\P'FIRM, PLC
(Scruing Arhnsarc Since 1Q67)
PAULA, SCIIMIDT, SR, 401 v. Poir Sec.r P. O. Bo:r 564 Qrlot
FCII
8*3-757b
PAtrt.A" SCHMIDT,
TR.
CJot, Arkane.'rs 72023 Stlq' (50r)26&6608
I{EATI-IA. RA}ISEY r.sgs4se-3027
Attoruc;,; a! Le* Fu (50f) 843-2335
c.tlq.J, I?erir, I*goliert, o
paolA
sc;lurirlt.
ta
lvebait'' *''ch'r'idldo*'toru
.
Ptrmy K. I.Irstiur, I*6et *rrr,
-
Baxln ptcy
Dctr,[ir Ba!*, Iagtlfree b P".l,L Scln"irk, $.
FACSMII-E COIIER SHEET
PLEASE DELI\ERTOr, LarrT Crane
IiIRlf., Pula"k Co. Circuit Cle*
FAX NUMBER, 50I-3#.0-8420
DcIE SENT, Febr""ry 29,21tz
FROM, PebbteiSch,ni& Lav Firn
NIIMBER OF PAGES SEM[' 3 (IncloJing
Tf is P"ge)
rF YOU DO NOT RECEIVE AIL PAGES, PLEASE CALL
(50t)
W3-7576
RE; I"Loothan D. Dial uod Lvdio,.4,- Diel ve . Da.sohe B""I of National
T"..st Comp.aq,y, as Tnrpiec {or Morgen St"nley ABS Capit l I, Iac.,
TrC'ust 200-6-I{EE, + J
MESS;IGE, Please fir,cl
"nclor"J
e tlotion for Ertension o{ lime to be {iluJ in dris
crrtter. Plen"' *l* a.rrd reklrn o {ilol copy to ot , offi* Ly {a*.
OUgio"lTrrinsmitterl U*ilff Sepa,rate Cover (
)
Y""
(
)
N"
gONFIDENNALAhID
P8I\TILE GE D
TI{l:' INFOR}"I^{[ON CONIAINED IN TFtrS FACSIMILE IS PRIyII.EGED,
CONFIDENTIAI. INTORI.{ATION, EXEMPT FPOM DISCIDSI'RE UNDER APPUCAIJIJ:
IA\VAND IS INTENDED FOR THE SOIE USE OF ITIE.ADDITESSEE. IF TFIE READLR
OF THTS FACSIMILE IS NOT THE INTENDED RECJPIENT, OR THE EI'IPIOIEE OR
AGENT RESPONSIBLE FOR DELTERING TI TO TIIE Ib{TENDED RECTPIENT, TOU
zlJtE IIERIiBY NOTIFIED THAT ANY DISSEMINATION, DISTBIBLTTION, OE CoPYING
OI: TTIIg COM.}ruMCATION IS STRICTTY PBOHIB TED. IF YOU HAVE RECEIVED
1].IIS FJ"Y IBA}.ISMISSION IhT ERBOR, PTEASE NTMEDIAIELY NOTIFYTHE SENDER
LISTED ABOIIE BY TELEPHONE A}TD DEST?OY 1TIE TRANSI\TISSION RECEi\trD I}Y
YOU. TIIA}.IKYOU.
t
'd
08/ t
'0
t\l |lilria?[
iprxrq]slnpd
fidgl:t UAI
.6A.q0J
PAULA. SCHMIDT, SR.
PAULA. SCHMIDT, JR.
HEATH A. RAMSEY
al La ...
SCHMIDT LAW FIRM, PLC
(Sl1MJin.g Arlulns"/I$ Since 1(}61)
401 W. P"u .. P. O. 564-
Cabot, Arkansas 72023
CoLI,,. J. I..e;.lAsgt. sduni,lt. Jr.
PC-1m" K. HR ... b . Log.J Asn. -
[)cl,bft Bak. logIJ Net. to Pnul A.. Sc:kwidl, 5.:.
FACSIMILE COVER SHEET
PLEASE DELIVER TO:. tarry Crane
FIRM: Pulaski Co. Circuit Clerk
FAX NUMBER: 501-340-8420
DATE SENf. Fehruary 29,2012
PROH: De1bie/Schmiclt Law Firm
NUMBER OF PAGES SENT: 3 (Including Th.;,1J Page)
(SOl) &431516
SIILNJ' (501) 268-6608
l.a8S45C}3011
Fnx(501)843-2335
W.baii.c.. """".$Ch .. Ili.<lteJ ..... .,Olll
IF YOU DO NOT RECEIVE ALL PAGES, PLEASE CALL (501) 843.7576
RE: Tohnathan D. Dial and. Lydia A Dial VJ. Deusoh.e Bank of National
'f rust as T ntstee OJ: Morgan Stanley ABS Capital I, Inc.
t
T r4ust 200b.HB3, et al
MESSAGE: Please fina enclosea a Motion for Extemion of Time- to be filed in this
matter. Please file: and. return a JeJ copy to our office by fax.
Original Transmitted. Under Separate Cover ( ) Yes ( ) No
CONFIDENTIAL AND PRMLEGED
THE INFORMATION CONTAINED IN TI-TIS FACSIMILE IS PRIVILEGED,
CONFIDENTIAl. INFORMATION, EXEMPT FROM DISCLOSURE UNDER. APPllCABII:
I..AW AND IS INTENDED FOR THE SOLE USE OF THE ADDRESSEE. IF THE READER
01:: THIS FACSIMILE IS NOT TIlE INTENDED RECIPIENT, OR niE EMPLOYEE OR
AGENT RESPONSIBLE FOR DEUVERING IT TO THE 'INTENDED RECIPIENT, yOU
iOO: HERJ:iBY N'OllFIED THAT ANY DISSEMINATION, DISTRIBUTION, OR COPYING
OF TInS comruNlCATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED
nIlS FA..'C TRANSMISSION IN ERROR, PLEASE IMMEDIATELY NOTIFY TIlE SENDER
IlSTED ABOVE BY TELEPHONE AND DESTROY 1m RECEIVED BY
you. TIlANKYOU.
JOHNATIIAN D. DIAL AND LYDIA A. DIAL, ET AL
vs. CASE NO.: 60-CV -2041-s001
DEUSCI{E BANK OE NATIONAL TRUST COMPAI{Y,
AS TRUSTEF FOR MORGAN STANLEY ABS
cAPrrAL 1 rNC., TRUST 2006-HE3, ET AL
W FIRM; PLC
A. Schmidt, sr,, #67048
401,W. Pine Street
Cabqt,'AR 72023
cv.5.2012.278
03/09112 15184!31
f,rme Fuleski [ircuit ilerk
DEFENDANTS
TN fIIE CIRCIITT COTIRT OF PIJLASKI COUNTY; ARKANSAS
FiLED
LarrJ
FE
oBpEB
AqR
ETTEI{SION gf
II}ry
'
i
.r, '
,
Upon Motion of Separate Defendants,'Thomas .I. Morton and Waqletta
Morton and their agomey, Paul A. Schmidt, Sr., is hereby granted an extensioa to
day of
2012.
Y.
the
ililt I llil I llll I lll ll ll ltl llll I ll I lllil illl lil ll
600v-11-5001 601-6fim03s89-013,
J0HHTHffi D DIRL EI HL V DEU 2 Pages
,
Ptl-fiS|il C0 03/0912012 03:04 ftil
: CIRCUIT GOIJRT 0R44
i
DATE
CV.5 .2012.278
- - -- --
-- - - -
IN THE CmCUIT COURT OF PULASKI COUNTY, ARKANSAS
JOHNATHAN D . .DIAL AND LYDIA A. DIAL, ET AL
VS. CASE NO.: 60-CV -20'}-5001
DEUSCHE BANK OF NATIONAL TRUST COMPANY,
AS TRUSTEE FOR MORGAN STANLEY ABS
CAPITAL 1 INC., TRUST 2006-HE3, ET AL
ORDER FOR EXTENSION OF TIME
_ PLAINTIFFS
FILED 03/09/12 15=04=31
Crane Pulaski Circuik Clerk -
FS
DEFENDANTS
Upon Motion of Separate Defendants, Thomas J. Morton and Wannetta Y.
and their ayomey, Paul A. Schmidt, Sr., is hereby granted an extension to the
. ,2012. _
DATE
;.'----
1111111111111111111111111111111111111111111111111 .-.
60CV-11-5001 601-60100039589-013 _.
JOHNATHAN D DIAL ET AL V DEU 2 Pages
PULASKI CO 03/09/2012 03:04 Pf1 .
. CIRCUIT COURT OR44
,._-------_.- - _._------_._-- .. /
PAIJLA. SCHMIDtr SR., PS-
PAUL A. SCHITIIDT,
JTR-,
PJ.
HEATHA. RAMSEY
CEIRISTOPEER R WARITIEN
Ateorneys at Iaw
Penny llawtios, Bankruprcy
r egal 45s1
Kim BentorL IgalAsst
Debbie Kirchens, Irgal Asst.
Barb Stattmart lgal Asst.
Jerrnifer
Arnold, IBEI AssL
Cabot (5o1) e4!7576
SearcY (5Ot) 2@{6,A8
Conway (5Ot)329-7576
Heber Springs (5Ol) 362'2t77
1-58u59-30i7
Far (501) 8412335
website : www.schmidtsla;w.com
SCHMIDT
LAW EIRM, PLC
ft*r*4"
^tY!4O
4O1
'West
Pine Street
'
PO. Box 554'
Cabot, Artansas 72023
Hon. Wendetl Griffin
Circuit Court Judge
401 W. Markham
Re:' Johnathan D. DiaI & Lydia A. Dia1, et a1 vs.
,Deusihe
,
,
Dear. ,fudge Griffin:-
pt
ease find enclosed a copy of the Motion' for Extension of Ti-me
along with the Order for Extension of Time regarding the above
referenced matter. If the Order meets
,with yor'rr approval-i
please sign and return to my office in the enclosed self-
'..
Thank
,you
for your kind attenti-on to this matter. If you,have
u.ry q,ra"tions, please do not hesitate to contact me :
Enclosures
Cc: Dr.ake Mann
Cl-ient
Iy,
LAW FIRM, P},9
PAUL A. SCHMIDT, SR., P.A.
PAUL A. SCHMIDT, JR., P.A.
HEATH A. RAMSEY
CHRISTOPHER R. WAKI'HEN
Attorneys at Law
Penny Hawkins, Bankruptcy Legal Asst.
Kim Benton, Legal Asst.
Debbie Kitchens, Legal Asst.
Barb Stattman, Legal Asst.
Jennifer Arnold, Legal Asst.
February 29, 2012
Hon. Wendell Griffin
C i r ~ u i t Court Judge
410 Courthouse
401 W. Markham
SCHMIDT
LAW FIRM, PLC
(Serving Arkansas Since 1967)
401 West Pine Street P.O. Box 564,
Cabot, Arkansas 72023
Littie Rock, AR 72201
Cabot (501) 843-7576
Searcy (50 i) 268-6608
Conway (501) 3297576
Heber Springs (501) 362-2177
1888-459-3077
Fax (501)843-2335
website: www.schmidtslaw.com
Re: Johnathan D. Dial & Lydia A. Dial, et al vs. Deusche
Bank of National Trust Company, et al
Pulaski Circuit No.: 60CV-20tl-50'l
, Dear Judge Griffin:-
Please find enclosed a copy of the Motion for Extension of Time
along with the Order for Extension of Time regarding the' above
referenced matter. If the Order meets with your approval',
please sign and return to my office in the enclosed self-
addressed stamped envelope.
Thank you for your kind attention to this matter.
any questions, please do not hesitate to contact me .
FIRM, PLC,
.PAS: djk
Enclosures
Cc: Drake Mann
Client
If . you have
. ' .
. ~ ...

FIFTH DWTSION
JOHNATIIAN
D. DIAL AND LYDIA A. DIAL,
IIUSBAND AND WIFE, INDIVIDUALLY,
AND
ON BEHALF OF SIMILARLY
SITUATED
PERSONS
Case No.: 60CV-11-5001
IN THE CIRCUm CoLTRT OF PULASKI COLiNTY,
ARKANSAS
ELECTRONICALLY
FILED
2012-Mar-19
16:58:19
60cv-'11-5001
PLAINTIFFS
v.
DEUTSCIIE BANK NATIONAL TRUST COMPAI\TY,
AS TRUSTEE FOR MORGAN STANLEY ABS
CAPITAL I TNC. TRUST zOOGIIE3, INDTVIDUALLY,
AND AS REPRESENTATWE
OF SIMILARLY
SMUATED PERSONS; MORGAN STANLFY ABS
cAPmAL r INC. TRUST 200GHB!, INDMDUALLY,
AND AS REPRESENTATTYE
OF SIMILARLY
SfIUATED PERSONS; and THOMAS J. MORTON
AND
yA}\TNETTA
Y. MORTON
DEFENDANTS
MOTION TO EXTEND TIME TO RESPOND TO AMENDED COMPLAINT
Separate Defendant Deutsche Bank National Trust Company, as trustee for Morgan
Stanley ABS Capital l Inc. Tnrst 2006-tm3
('DBNTC, as Trustee for the Morgan Stanley
Trust,) appea$ by and through its attorneys and for its Motion to Extend Time to Respond to
Amended ComPlaint states :
1. On or around October L7
,}OLL,
the plaintiffs, Jobnathan D. Dial and Lydia A
Dial, husband and wife, individually, and on behalf of similafly situated
persons ('P1aintiffs"),
filed their complaint against DBNTC, as Trustee for the Morgan Stanley Trust, Morgan Stanley
ABS Capital l Inc. Trust 2006-HE3, and Thomas J. Morton and Wannetta Y. Morton.
Z. On February 14,2012, Plaintiffs filed their Amended and Substituted Complaint
which contains similar allegations and removes Wilson & Associates, P.L-L.C. as a named
defendant
(the'Amended Complaint")'
3. On or around February L4,20L2, the Court issued a srunmons for DBNTC, as
Trustee for the Morgan Stanley Trust.
1774342-,rl
ELECTRONICALLY FILED
2012-Mar-19 16:58:19
60CV-11-5001
IN THE CIRCUIT COURT OF PULASKI COUNTY, ARKANSAS
FIFfH DIVISION
JOHNATHAN D. DIAL AND LYDIA A. DIAL,
HUSBAND AND WIFE, INDIVIDUALLY, AND
ON BEHALF OF SIMILARLY SITUATED
PERSONS
v. Case No.: 6OCV-1l-5001
DEUfSCHE BANK NATIONAL TRUST COMPANY,
AS TRUSTEE FOR MORGAN STANLEY ABS
CAPITAL I INC. TRUST 2006-HE3, INDIVIDUALLY,
AND AS REPRESENTATIVE OF SIMILARLY
SITUATED PERSONS; MORGAN STANLEY ABS
CAPITAL I INC. TRUST 2006-HE3, INDIVIDUALLY,
AND AS REPRESENTATIVE OF SIMILARLY
SITUATED PERSONS; and THOMAS J. MORTON
AND W ANNETTA Y. MORTON
PLAINTIFFS
DEFENDANTS
MOTION TO EXTEND TIME TO RESPOND TO AMENDED COMPLAINT
Separate Defendant Deutsche Bank National Trust Company, as trustee for Morgan
Stanley ABS Capital I Inc. Trust 2006-HE3 ("DBNTC, as Trustee for the Morgan Stanley
Trust") appears by and through its attorneys and for its Motion to Extend Time to Respond to
Amended Complaint states:
l.. On or around October 17, 2011, the plaintiffs, Johnathan D. Dial and Lydia A
Dial, husband and wife, individually, and on behalf of similarly situated persons ("Plaintiffs"),
filed their complaint against DBNTC, as Trustee for the Morgan Stanley Trust, Morgan Stanley
ABS Capital I Inc. Trust 2006-HE3, and Thomas J. Morton and Wannetta Y. Morton.
2. On February 14, 2012, Plaintiffs filed their Amended and Substituted Complaint
which contains similar allegations and removes Wilson & Associates, P.L.L.C. as a named
defendant (the" Amended Complaint").
3. On or around February 14, 2012, the Court issued a summons for DBNTC, as
Trustee for the Morgan Stanley Trust.
1114342-vl
4. According to a notation on the Sulnmons' the summons
and Amended
Complaint
were served on DBNTC, as Trustee for the Morgan Stanley Trust on February x'
^aD'
Proof
of service has not
Yet
been filed.
5. The time within which DBNTC, as Trustee for the Morgan Stanley Trust must
respond to the Amended Complaint
expires on March 22,20L2, aud DBNTC' as Trustee for the
Morgan Stanley Trust is in need of additional time within which to respond to Amended
Complaint.
6. Counsel for DBNTC, as Trustee for the Morgan Stanley Trust has conferred with
plaintiffs,
counsel, who has agreed to the extension of time including and until Apr-I22,20t2
for
DBNTC, as Trustee for the Morgan Staoley Trust to file and serve its response to the Amended
Complaint.
WHEREFORE,
separate Defendant Deutsche Bank National Trust Company, as trustee
for Morgan Stantey ABS Capital I Inc. Trust 2006-IIE3 prays that the Court enter an Order
extending the time for it to file and serve its response to Plaintiffs' Amended and Substituted
Complaint up to and including Aprll22,2OL2'
WRTGHT, LINDSEY
& JENNINGS LLP
200 West Capitol Avenue, Suite 2300
Lifi1e Rock, !\R 7220t
Telephone: 501-371-0808
Attorney
for
Deutsche Bank National Trust
Comryny, as tntsteefor Morgan Stanley ABS
Capital I Inc. Trust 2ffiGHE3
2 7114342-vt
4. According to a notation on the summons, the summons and Amended Complaint
were served on DBNTC, as Trustee for the Morgan Stanley Trust on February 21, 2012. Proof
of service has not yet been filed.
5. The time within which DBNTC, as Trustee for the Morgan Stanley Trust must
respond to the Amended Complaint expires on March 22, 2012, and DBNTC, as Trustee for the
Morgan Stanley Trust is in need of additional time within which to respond to Amended
Complaint.
6. Counsel for DBNTC, as Trustee for the Morgan Stanley Trust has conferred with
Plaintiffs' counsel, who has agreed to the extension of time including and until April 22, 2012 for
DBNTC, as Trustee for the Morgan Stanley Trust to file and serve its response to the Amended
Complaint.
WHEREFORE, separate Defendant Deutsche Bank National Trust Company, as trustee
for Morgan Stanley ABS Capital I Inc. Trust 2006-HE3 prays that the Court enter an Order
extending the time for it to flle and serve its response to Plaintiffs' Amended and Substituted
Complaint up to and including April 22, 2012.
WRIGHT, LINDSEY & JENNINGS LLP
By:
11 14342-v 1
2
Charles T. Coleman (80030)
Attorney for Deutsche Bank National Trust
Company, as trustee for Morgan Stanley ABS
Capital I Inc. Trust 2006-HE3
CERTTFTCATE
OF SERYTCE
I hereby cerrify rhat on March
1-t,
2012,a copy of the foregoing
was sen'ed by u'S'
mail and email on the following:
US MAIL:
Drake \{ann
Gill Elrod Ragon Owen & Sherman'
P'A'
425W- CaPitoI Avenue
Suite 3801
Little Rock, /G.7220L
mann@gill-law.com
., /
EMAIL:
1114342-vt
CERTIFICATE OF SERVICE
I hereby certify that on March fl, 2012, a copy of the foregoing was served by U.S.
mail and email on the following:
US MAIL:
EMAIL:
1114342-vl
Drake Mann
Gill Elrod Ragon Owen & Sherman, P.A.
425 W. Capitol Avenue
Suite 3801
Little Rock, AR 72201
mann@gill-law.com
,
~ , ~ ) ! ~ \
Charles T. Coleman (80030)
3
F E D E R A L C A S E F I L E S
Dial et al v. Deut sche Bank Nat ional Trust Company et al : : Just ia Docket s & Filings
ht t p: / / docket s.j ust ia.com/ docket / arkansas/ aredce/ 4: 2012cv00180/ 89286/ [ 3/ 29/ 2012 10: 23: 36 AM]
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Di al et al v . Deut sche Bank Nat i onal Tr ust Company et
al
Pl ai nt i f f s: Johnat han D Dial and Lydia A Dial
Def endant s: Deut sche Bank Nat ional Trust Company , Morgan St anley ABS
Capit al I I nc Trust 2006- HE3, Thomas J Mort on and Wannet t a
Y Mort on

Case Number : 4: 2012cv00180
Fi l ed: March 22, 2012

Cour t : Arkansas East ern Dist rict Court
Of f i ce: Lit t le Rock Office
Count y : Pulaski
Pr esi di ng Judge: J. Leon Holmes

Nat ur e of Sui t : Real Propert y - Foreclosure
Cause: 28: 1345 Foreclosure
Jur i sdi ct i on: Diversit y
Jur y Demanded By : Plaint iff

Avai l abl e Case Document s
The following document s for t his case are available for you t o view or download.
Dat e Fi l ed # Document Tex t
March 28, 2012 12 ORDER grant ing deft ' s Mot ion t o Ext end Time t o Answer
Amended Complaint 5 11 ; Deut sche Bank Nat ional Trust
Company answer due 4/ 22/ 2012. Signed by Chief Judge J.
Leon Holmes on 3/ 28/ 12. ( vj t )
Last Document Downloaded: March 28, 2012 23: 29: 09 PDT
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Di al et al v. Deut sche Bank Nat i onal Tr ust Company et al
Fi l i ng: 12
ORDER grant ing deft ' s Mot ion t o Ext end Time t o Answer Amended Complaint 5 11 ;
Deut sche Bank Nat ional Trust Company answer due 4/ 22/ 2012. Signed by Chief Judge
J. Leon Holmes on 3/ 28/ 12. ( vj t )
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Case: Dial et al v. Deut sche
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Company et al
St at e: Arkansas
Cour t : East ern Dist rict Court
Judge: J. Leon Holmes
Ty pe: Real Propert y: Foreclosure
Fi l i ng: 12
Fi l ed: March 28, 2012
Ret r i eved: March 28, 2012
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IN THE UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF ARKANSAS
WESTERN DIVISION
JOHNATHAN D. DIAL and LYDIA A. DIAL, PLAINTIFFS
husband and wife, individually, and on behalf of
similarly situated persons
v. No. 4:12CV00180 JLH
DEUTSCHE BANK NATIONAL TRUST COMPANY,
AS TRUSTEE FOR MORGAN STANLEY ABS
CAPITAL I INC. TRUST 2006-HE3, individually,
and as representative of similarly situated persons;
MORGAN STANLEY ABS CAPITAL I INC.
TRUST 2006-HE3, individually and as representative
of similarly situated persons; THOMAS J. MORTON;
and WANNETTA Y. MORTON DEFENDANTS
ORDER
Deutsche Bank National Trust Company, as Trustee for Morgan Stanley ABS Capital I
Inc. Trust 2006-HE3, has filed a motion to extend the time to respond to the amended complaint.
That motion is GRANTED. Documents #5 and #11. The time within which Deutsche Bank
National Trust Company, as Trustee for Morgan Stanley ABS Capital I Inc. Trust 2006-HE3,
must respond to the amended complaint is extended up to and including April 22, 2012.
IT IS SO ORDERED this 28th day of March, 2012.
___________________________________
J. LEON HOLMES
UNITED STATES DISTRICT JUDGE