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McGREGOR W. SCOTT

United States Attorney

KRISTIN S. DOOR SBN 84307

Assistant U.S. Attorney

501 I Street, Suite 10-100

Sacramento, CA 95814

Telephone: (916) 554-2723

Attorney for Plaintiff

United States of America

IN THE UNITED STATES DISTRICT COURT FOR THE 

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES OF AMERICA,

Plaintiff,

v.

REAL PROPERTY LOCATED AT 2363

FAIRVIEW LANE, PLACER COUNTY,

NEWCASTLE, CALIFORNIA, BEARING

APN: 032-253-036, INCLUDING ALL

APPURTENANCES AND IMPROVEMENTS

THERETO,

REAL PROPERTY LOCATED ON LINCOLN

STREET, PLACER COUNTY,

ROSEVILLE, CALIFORNIA, BEARING

APN: 012-200-010, INCLUDING ALL

APPURTENANCES AND IMPROVEMENTS

THERETO,

Defendants.

2:04-CV-1867-WBS-JFM

STIPULATION FOR EXPEDITED

SETTLEMENT BETWEEN PLAINTIFF

UNITED STATES OF AMERICA AND

WORLD SAVINGS BANK AND ORDER

THEREON

IT IS HEREBY STIPULATED by and between plaintiff United

States of America and claimant World Savings Bank ("World"),

through their respective counsel of record, that World has a

valid pre-existing mortgage lien on the defendant real property

which is not contested by plaintiff.

Plaintiff United States of America and claimant World

further stipulate that:

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1. Any violations of 21 U.S.C. § 881 (a)(6) and (7)

involving the defendant property located at 2363 Fairview Lane,

Placer County, Newcastle, California, occurred without the

knowledge and consent of World.

2. Plaintiff United States agrees that upon entry of a

final order of forfeiture in favor of the United States,

plaintiff, through the United States Marshals Service or its

agent(s), shall undertake to sell the defendant real property in

a commercially reasonable manner and to sell said property at a

private sale for fair market value (the "Purchase Price"). The

following costs and expenses of sale shall be deducted from the

Purchase Price and paid directly out of escrow in the following

order and to the extent that funds are available:

(a) First, the costs incurred by the United States

Marshals Service to the date of close of escrow, including the

cost of posting, service, advertising, and maintenance;

(b) Second, to the Placer County Tax Collector (for

real property taxes) of all real property taxes assessed and

unpaid against the defendant real property prorated to the date

of entry of the final order of forfeiture;

(c) Third, the costs and expenses associated with the

sale of the real property.

(d) Fourth, any county transfer taxes.

(c) Fifth, to World as follows:

(i) all unpaid principal due to World under the

promissory note dated June 9, 2004, a true and correct copy of

which is attached hereto as Exhibit "A" ("Note"), and which is

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secured by a deed of trust dated June 9, 2004, and recorded June

11, 2004, as instrument number 2004-0076837 of the Official

Records of Placer County, California ("Deed of Trust "), a true

and correct copy of which is attached hereto as Exhibit "B". 

(ii) all unpaid interest due as of the date of

the closing of the sale of the defendant real property at the

contractual (not default) adjustable rate under the abovereferenced Note;

(iii) all fees, costs, and advances, including but

not limited to prepayment fees, taxes and hazard insurance as

provided under the terms of the Note and Deed of Trust.

3. The payment to World shall be in full settlement and

satisfaction of any and all claims by World to the defendant

property and all claims resulting from the incidents or

circumstances giving rise to this lawsuit.

4. Upon payment, claimant World agrees to assign and

convey its security interest to the United States via recordable

documents and to release and hold harmless the United States, and

any agents, servants, and employees of the United States, (or any

state or local law enforcement agency) acting in their individual

or official capacities, from any and all claims by the financial

institution and its agents which currently exist or which may

arise as a result of the government’s action against the

property.

5. In the event it is determined that the proceeds of a

sale of defendant real property would be insufficient to pay

World in full as set forth in ¶ 2(c) (i)-(iii), above, after the

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disbursements described in ¶ 2 (a)-(c) hereinabove are made, 

the plaintiff United States agrees stipulate to a release of its

interest in the defendant real property and consent to the

exercise of World’s state law rights to foreclose upon its deed

of trust which secures the obligation to World. 

6. Claimant World agrees not to pursue against the United

States any other rights that it may have under the mortgage

instrument, including, but not limited to, the right to initiate

a foreclosure action without the consent of the United States

Attorney’s Office or this Court.

7. Claimant World agrees to notify the United States

Attorney at the end of the first payment cycle in which a payment

in not made under the terms specified in the security instrument

and promissory note. Claimant further agrees to join any

government motions for interlocutory or stipulated sale of the

defendant property and any motions to remove occupants from the

property for nonpayment of mortgage or rent, destruction of

property, or other just cause.

8. Claimant World understands and agrees that by entering

into this stipulation of its interests in the defendant real

property, it waives any rights to further litigate against the

United States and its interest in the defendant and to petition

for remission or mitigation of the forfeiture. Unless otherwise

provided by this Stipulation or specifically directed by order of

this Court, World is hereby excused and relieved from further

participation in this action.

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10. World understands and agrees that the United States

reserves the right to void the expedited settlement agreement if,

before payments of the mortgage or lien, the U.S. Attorney

obtains new information indicating that the mortgagee or

lienholder is not an "innocent owner: or "bona fide purchaser"

pursuant to applicable forfeiture statutes. The U.S. Attorney

also reserves the right, in its discretion, to terminate the

forfeiture at any time and release the subject property. In

either event, the United States shall promptly notify of the

mortgagee or lienholder of such action. A discretionary

termination of forfeiture shall not be a basis for any award of

fees under 28 U.S.C. § 2465. 

11. The parties agree to execute further documents, to the

extent necessary, to convey clear title to the defendant real

property to the United States and to further implement the terms

of this stipulation.

12. The terms of this Stipulation are contingent upon

forfeiture of the defendant real property to the United States

and the Court’s entry of a final judgment of forfeiture.

Dated: June 16, 2005 McGREGOR W. SCOTT

United States Attorney

/s/ Kristin S. Door

By _____________________

KRISTIN S. DOOR

Assistant Unites States 

Attorney

Attorney for Plaintiff

//

//

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Dated: June 13, 2005

/s/ Sharon C. Dutton

 By 

SHARON C. DUTTON

Attorneys for Claimant

World Savings Bank, FSB 

(original signature retained 

by attorney)

ORDER

SO ORDERED this 17th day of June, 2005

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