UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF MICHIGAN 

SOUTHERN DIVISION 

WBCMT 2003-C9 ISLAND LIVING, LLC, 

 Plaintiff, Case No. 14-cv-14243 

 Hon. Matthew F. Leitman 

v. 

SWAN CREEK LIMITED PARTNERSHIP, 

 Defendant. 

_____________________________________/ 

ORDER APPOINTING RECEIVER 

On January 9, 2015, this Court granted the request by Plaintiff WBCMT 

2003-C9 Island Living, LLC (“Lender” or “Plaintiff”) for the appointment of a 

receiver to manage and control property currently owned by Defendant Swan 

Creek Limited Partnership (“Defendant”) at 23379 Island Drive, New Boston, 

Michigan. (See the “Order Granting Appointment of Receiver,” ECF #15.) The 

Court directed Plaintiff to propose one or more candidates to serve as receiver. 

(See id.) 

Plaintiff has now proposed CFLane Receiver, LLC, through its authorized 

agent Victor Roth, to serve as receiver. (See ECF ##16-17.) Defendant has not 

objected to the proposed receiver candidate within the time allotted in the Order 

Granting Appointment of Receiver. Accordingly, the Court now appoints CFLane 

Receiver, LLC, through Mr. Roth, as receiver for the property. 

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Plaintiff has submitted a proposed order specifically defining the powers of 

the receiver. The Court has reviewed Plaintiff’s proposed order and has made 

certain deletions and modifications to the proposal. See Fed. Nat’l Mortgage 

Assoc. v. Newberry Apartments of Eaton Cty., Ltd., No. 11-cv-00968, slip op. at 3-

4 (W.D. Mich. Oct. 20, 2011) (modifying and adopting plaintiff’s proposed order 

appointing receiver). 

Accordingly, IT IS HEREBY ORDERED that:

1. CFLane Receiver, LLC, through its authorized agent Victor Roth, (the 

“Receiver”) is appointed as the Receiver over: 

a. The mobile home community located in Huron 

Township, Wayne County, Michigan (“Mortgaged 

Property”), on which Plaintiff holds a Mortgage and 

which is more fully described in the Mortgage, a copy of 

which is attached to Plaintiff’s Complaint in this matter 

and incorporated by reference, together with all 

buildings, structures, and improvements on the 

Mortgaged Property; 

b. All fixtures of every kind or nature located in or upon or 

attached to, or used or intended to be used in connection 

with, the operation of the Mortgaged Property; 

c. All of the collateral and assets of Defendant, as described 

in the Mortgage attached to Plaintiff’s Complaint 

including, but not limited to, all machinery, apparatus 

and equipment, materials, supplies, articles of personal 

property used in connection with or with the operation of 

the Mortgaged Property; 

d. All the cash, rent, royalties, issues, revenues, income, 

profits and other benefits of the Mortgaged Property and 

the facilities thereon as more particularly described in the 

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Assignment of Leases and Rents filed with the 

Complaint, under present or future contracts, occupancy 

agreements, agreements for reimbursement, or otherwise, 

together with all accounts due or to become due as 

income in connection with the operations of the 

Mortgaged Property (“the Rents”) all as more fully 

described in the Mortgage and Loan Documents attached 

to Plaintiff’s Complaint, as defined therein; 

e. All permits, licenses and other contracts pertaining to the 

Mortgaged Property and the operations of the Mortgaged 

Property; 

f. All books, records, accounts or documents which in any 

way relate to the Mortgaged Property, the Rents, or the 

operations of the Mortgaged Property, and copies of all 

documents Defendant is legally obligated to retain; 

g. All other property, estate, right, title and interest as 

described in the Mortgage and the other Loan Documents 

attached to and referred to in Plaintiff’s Complaint; and 

h. All bank accounts maintained by Defendant concerning 

the Mortgaged Property, including any operating 

accounts, escrow accounts, insurance-proceed accounts, 

cash management accounts, and/or security deposit 

accounts. 

2. The Receiver will manage the day-to-day operations of the Mortgaged 

Property. 

3. The Receiver shall have access to all of Defendant’s records 

concerning the Mortgaged Property. Such records include, but are not limited to: 

a. Leases including communication/correspondence files 

relating to the Mortgaged Property; 

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b. A current rent-roll for the Mortgaged Property, as well as 

tenant and family member contact names and telephone 

numbers; 

c. A current aged accounts receivable/delinquency report 

for the Mortgaged Property; 

d. The occupant ledgers for the Mortgaged Property; 

e. Documents identifying and summarizing all pending 

litigation relating to the Mortgaged Property; 

f. All operating licenses for the Mortgaged Property; 

g. Documents pertaining to all pending new leases/renewals 

for the Mortgaged Property; 

h. All existing service contracts for the Mortgaged Property; 

i. All pending bids for contractor work for the Mortgaged 

Property; 

j. Copies of all on-site employee payroll records and 

employee files and applications for the Mortgaged 

Property, to include number of employees on health or 

dental program by coverage (single, single plus, or 

family coverage), gender and age of each employee; 

k. All documents, books, records and computer files and 

records concerning the rents, profits, finances, issues, and 

operation and management of the Mortgaged Property, 

including, but not limited to, accounts with any financial 

institutions; 

l. Such other records pertaining to the management of the 

Mortgaged Property as may be reasonably requested by 

the Receiver; 

m. All keys, access keys, cards, codes and passwords for the 

Mortgaged Property; 

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n. All security deposits, security deposit accounts and an 

accounting for all security deposits for the Mortgaged 

Property; 

o. A list of all utilities and utility accounts for the 

Mortgaged Property; 

p. All insurance policies for the Mortgaged Property; 

q. Correspondence relating in any way to the Mortgaged 

Property; 

r. Surveys, site plans, specifications, floor plans, drawings, 

measurements, etc. for the Mortgaged Property; 

s. All information relating to tax appeals including files, 

attorney retainer agreements and pleadings for the 

Mortgaged Property; and 

t. All records relating to security agreements in any homes 

on the Mortgaged Property. 

4. The release of employee payroll records and files, described in 

Paragraph 3(j) above, to the Receiver is authorized by this Order. 

5. Immediately upon entry of this Order, the Receiver has the authority 

to operate the Mortgaged Property. 

6. Receiver shall be entitled to possession of all monies that constitute 

revenue, profits, Rents and/or income collected from the operation of the 

Mortgaged Property, including any money held in accounts maintained by 

Defendant at any financial institution that has originated from the Mortgaged 

Property. 

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7. Immediately upon entry of this Order and continuing until expiration 

or termination of the receivership, the Receiver is authorized to take any and all 

reasonable and appropriate actions to take possession of, to exercise full control 

over, and to prevent waste and to preserve, manage, maintain, secure, and 

safeguard the Mortgaged Property, to the extent not otherwise prohibited by law or 

by enforceable contract. 

8. The Receiver shall receive reasonable compensation for its services, 

payable from the funds collected from operation of the Mortgaged Property. The 

Receiver shall receive as reasonable compensation: 

 A monthly management fee equal to 5% of the gross revenues of the 

Mortgaged Property collected each month, with a minimum fee of 

$4,000 per month; 

 A set-up fee equal to one (1) month’s management fee for the 

Mortgaged Property; 

 A Construction Management Fee of 5% of all construction costs on 

projects in excess of $25,000.00. 

 The Receiver shall not be entitled to compensation for: (a) travel 

expenses; (b) senior management presence on-site; (c) coordination of 

receivership services, such as filing receivership reports with the court 

or appearing in court in connection with the case; 

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 The Receiver shall not be entitled to a disposition fee to coordinate the 

sale of the Mortgaged Property if such a sale occurs. 

9. The Receiver shall have the right to possess and control all of 

Defendant’s right, title and interest in and to all proceeds from any claims made or 

to be made under any insurance policy maintained by Defendant with respect to the 

Mortgaged Property. 

10. Should the Receiver not have sufficient funds to pay all of the 

Operating Expenses for the Mortgaged Property, Plaintiff may, in its sole 

discretion (without being under any obligation to do so except as to the Receiver’s 

compensation and payment for professionals described in Paragraph 9), advance its 

own funds to pay such Operating Expenses as Plaintiff may elect to have paid. 

The repayment of all such funds advanced by Plaintiff shall be secured by the 

Mortgaged Property and under the Mortgage. If such funds are advanced by 

Plaintiff subsequent to Plaintiff’s mortgage foreclosure sale, such amounts 

advanced may be added to Plaintiff’s credit bid as and to the extent permitted by 

applicable law. 

11. Should the Receiver have funds in excess of the anticipated Operating 

Expenses, including an appropriate reserve in an amount to be approved by 

Plaintiff, for the Mortgaged Property, the Receiver shall provide all such funds, on 

a monthly basis, to Plaintiff. All such funds shall be applied to the amount owed to 

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Plaintiff by the Defendant under the Mortgage for the Mortgaged Property. To the 

extent that there are any funds that exceed amounts due to Plaintiff under the Loan 

Documents, such funds shall be subject to further order of the Court. 

12. Neither Plaintiff nor the Receiver shall be liable for any claim, 

obligation, liability, action, cause of action, cost or expense of Defendant or the 

Mortgaged Property arising out of or relating to events or circumstances occurring 

prior to this Order, including without limitation, any contingent or unliquidated 

obligations and any liability from the performance of services rendered by third 

parties on behalf of Defendant, and any liability to which Defendant is currently or 

may ultimately be exposed under any applicable laws pertaining to the ownership, 

use or operation of the Mortgaged Property and operation of Defendant’s business 

(collectively all of the foregoing is referred to as “Pre-Receivership Liabilities”). 

Neither the Plaintiff nor the Receiver shall be obligated to advance any funds to 

pay any Pre-Receivership Liabilities. Notwithstanding the foregoing, with the 

prior written consent of Plaintiff (but not otherwise), Receiver may pay from funds 

collected from operation of the Mortgaged Property Pre-Receivership Liabilities in 

the ordinary course of business and that are not payable to Defendant or 

Defendant’s insiders, affiliates, partners, related companies, parent companies, 

owners or those entities with common ownership and/or control. 

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13. The Receiver shall submit to this Court for its in-camera inspection 

and serve on the parties who have filed appearances a monthly accounting of all 

receipts and disbursements concerning the performance of its duties under this 

Order, and a final accounting within 90 days after termination of the receivership. 

14. The Receiver may resign upon thirty days written notice or sooner 

upon a motion for cause. The Receiver may be removed from duties under this 

Order upon a motion for cause. If the Receiver is removed or resigns, the Receiver 

shall turn over to Plaintiff or its designee all of the Mortgaged Property unless 

otherwise ordered by the Court. 

15. The Receiver shall submit a final accounting for approval by the 

Court within ninety days after the termination of the receivership or the Receiver’s 

removal or resignation. 

16. The Receiver shall have the power to enter into, modify, extend, 

terminate, and/or enforce leases and other contracts, and charge and collect rent for 

the mobile homes in connection with the Mortgaged Property in the ordinary 

course of business; provided, however, in so doing the Receiver shall not concede, 

settle, compromise or pay any Pre-Receivership Liabilities without written consent 

of Plaintiff. 

17. The Receiver shall have the power to purchase and/or acquire title to 

any mobile home on the Mortgaged Property. 

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18. The Receiver is authorized, in its discretion, to operate the Mortgaged 

Property under any and all existing agreements that are currently in place between 

the Defendant and any third party, as well as any of Defendant’s plans and 

specifications, cost estimates, reports, permits, licenses, certificates of occupancy, 

development rights, warranties, guaranties, telephone exchanges, trademarks, the 

name of the Mortgaged Property, and any intangible rights relating to the 

Mortgaged Property. 

19. This Court shall retain jurisdiction over this action, the Mortgaged 

Property and the parties for the purpose of giving such other relief upon proper 

showing as is consistent with this Order and applicable law. Unless otherwise 

ordered by this Court, the receivership shall terminate with respect to the 

Mortgaged Property upon the earliest of: (a) sale of the Mortgaged Property (other 

than by foreclosure or sheriff’s sale); or (b) the expiration of the applicable 

redemption period following foreclosure of the Mortgaged Property. The Receiver 

may, from time to time, upon notice to all parties who have appeared in this action, 

apply to this Court for further and other instructions and for further powers 

necessary to enable the Receiver to fulfill its duties under this Order. 

20. Plaintiff is required to file status reports with the Court on the last 

business day of every month until such time as the receivership terminates in 

accordance with the preceding paragraph. Each status report shall include (1) a 

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description of what steps have been completed in the foreclosure process; (2) what 

steps are scheduled to be completed in the future; (3) what steps will need to take 

place but have not yet been scheduled; and (4) what activities the Receiver has 

undertaken during the reporting period to exercise its powers under this Order. 

The first such status report shall be filed on February 27, 2015. 

21. The Court finds that Plaintiff in seeking to obtain a receiver is 

engaged in a workout activity, as that term is defined by M.C.L.A. § 324.20101a, 

and its actions in seeking appointment of a receiver are intended to protect the 

value and marketability of its collateral. Further, Plaintiff’s actions in seeking the 

appointment of a receiver do not amount to participation in management as that 

term is defined in CERCLA, 42 U.S.C. § 9601(a)(20). 

IT IS SO ORDERED.

s/Matthew F. Leitman 

 MATTHEW F. LEITMAN 

 UNITED STATES DISTRICT JUDGE 

Dated: January 23, 2015 

I hereby certify that a copy of the foregoing document was served upon the parties 

and/or counsel of record on January 23, 2015, by electronic means and/or ordinary 

mail. 

 s/Holly A. Monda 

 Case Manager 

 (313) 234-5113 

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