81,7('67$7(66(&85,7,(6$1'(;&+$1*(&200,66,21

:DVKLQJWRQ'&

)2504

0DUN2QH

>;@ 48$57(5/<5(325738568$17726(&7,2125G2)7+(

6(&85,7,(6(;&+$1*($&72)

)RUWKHTXDUWHUO\SHULRGHQGHG0DUFK

25

>@ 75$16,7,215(325738568$17726(&7,2125G2)7+(

6(&85,7,(6(;&+$1*($&72)

)RUWKHWUDQVLWLRQSHULRGIURPBBBBBBBBBBBWRBBBBBBBBBB

&RPPLVVLRQ

)LOH

1XPEHU

([DFW1DPHRI

5HJLVWUDQW

DV6SHFLILHG

LQLWV&KDUWHU

6WDWHRU2WKHU

-XULVGLFWLRQRI

,QFRUSRUDWLRQ

,56(PSOR\HU

,GHQWLILFDWLRQ

1XPEHU

 3*	(&RUSRUDWLRQ &DOLIRUQLD 

 3DFLILF*DVDQG(OHFWULF&RPSDQ\ &DOLIRUQLD 

3*	(&RUSRUDWLRQ

%HDOH6WUHHW

32%R[

6DQ)UDQFLVFR&DOLIRUQLD

3DFLILF*DVDQG(OHFWULF&RPSDQ\

%HDOH6WUHHW

32%R[

6DQ)UDQFLVFR&DOLIRUQLD

$GGUHVVRISULQFLSDOH[HFXWLYHRIILFHVLQFOXGLQJ]LSFRGH

3*	(&RUSRUDWLRQ

 

3DFLILF*DVDQG(OHFWULF&RPSDQ\

 

5HJLVWUDQW¶VWHOHSKRQHQXPEHULQFOXGLQJDUHDFRGH

,QGLFDWHE\FKHFNPDUNZKHWKHUWKHUHJLVWUDQWKDVILOHGDOOUHSRUWVUHTXLUHGWREHILOHGE\6HFWLRQRUGRIWKH6HFXULWLHV([FKDQJH$FWRIGXULQJWKHSUHFHGLQJ

PRQWKVRUIRUVXFKVKRUWHUSHULRGWKDWWKHUHJLVWUDQWZDVUHTXLUHGWRILOHVXFKUHSRUWVDQGKDVEHHQVXEMHFWWRVXFKILOLQJUHTXLUHPHQWVIRUWKHSDVWGD\V

3*	(&RUSRUDWLRQ >;@ <HV>@1R

3DFLILF*DVDQG(OHFWULF&RPSDQ\ >;@ <HV>@1R

,QGLFDWHE\FKHFNPDUNZKHWKHUWKHUHJLVWUDQWKDVVXEPLWWHGHOHFWURQLFDOO\HYHU\,QWHUDFWLYH'DWD)LOHUHTXLUHGWREHVXEPLWWHGSXUVXDQWWR5XOHRI5HJXODWLRQ67

 RIWKLVFKDSWHUGXULQJWKHSUHFHGLQJPRQWKVRUIRUVXFKVKRUWHUSHULRGWKDWWKHUHJLVWUDQWZDVUHTXLUHGWRVXEPLWVXFKILOHV

3*	(&RUSRUDWLRQ   >;@ <HV>@1R

3DFLILF*DVDQG(OHFWULF&RPSDQ\ >;@ <HV>@1R

,QGLFDWHE\FKHFNPDUNZKHWKHUWKHUHJLVWUDQWLVDODUJHDFFHOHUDWHGILOHUDQDFFHOHUDWHGILOHUDQRQDFFHOHUDWHGILOHUVPDOOHUUHSRUWLQJFRPSDQ\RUDQHPHUJLQJJURZWK

FRPSDQ\6HHWKHGHILQLWLRQVRI3ODUJHDFFHOHUDWHGILOHU ́3DFFHOHUDWHGILOHU ́3VPDOOHUUHSRUWLQJFRPSDQ\ ́DQG3HPHUJLQJJURZWKFRPSDQ\ ́LQ5XOHERIWKH([FKDQJH

$FW

3*	(&RUSRUDWLRQ >;@ /DUJHDFFHOHUDWHGILOHU >@$FFHOHUDWHGILOHU

>@1RQDFFHOHUDWHGILOHU

>@6PDOOHUUHSRUWLQJFRPSDQ\ >@(PHUJLQJJURZWKFRPSDQ\

3DFLILF*DVDQG(OHFWULF&RPSDQ\ >@/DUJHDFFHOHUDWHGILOHU >@$FFHOHUDWHGILOHU

>;@ 1RQDFFHOHUDWHGILOHU

>@6PDOOHUUHSRUWLQJFRPSDQ\ >@(PHUJLQJJURZWKFRPSDQ\

,IDQHPHUJLQJJURZWKFRPSDQ\LQGLFDWHE\FKHFNPDUNLIWKHUHJLVWUDQWKDVHOHFWHGQRWWRXVHWKHH[WHQGHGWUDQVLWLRQSHULRGIRUFRPSO\LQJZLWKDQ\QHZRUUHYLVHGILQDQFLDO

DFFRXQWLQJVWDQGDUGVSURYLGHGSXUVXDQWWR6HFWLRQDRIWKH([FKDQJH$FW

3*	(&RUSRUDWLRQ >@

3DFLILF*DVDQG(OHFWULF&RPSDQ\ >@

,QGLFDWHE\FKHFNPDUNZKHWKHUWKHUHJLVWUDQWLVDVKHOOFRPSDQ\DVGHILQHGLQ5XOHERIWKH([FKDQJH$FW

3*	(&RUSRUDWLRQ >@<HV>;@1R

3DFLILF*DVDQG(OHFWULF&RPSDQ\ >@<HV>;@1R



Case: 19-30088 Doc# 2844-3 Filed: 07/02/19 Entered: 07/02/19 18:16:23 Page 2

 of 138

$SSHQGL[&

Case: 19-30088 Doc# 3431-3 Filed: 08/07/19 Entered: 08/07/19 15:51:42 Page 1

of 6
7KH8WLOLW\KDVVXEPLWWHGHOHFWULFLQFLGHQWUHSRUWVWRWKH&38&DVVRFLDWHGZLWKWKH1RUWKHUQ&DOLIRUQLDZLOGILUHVZKHUH&DO)LUHRUWKH8WLOLW\KDV

LGHQWLILHGDVLWHDVSRWHQWLDOO\LQYROYLQJWKH8WLOLW\¶VIDFLOLWLHVLQLWVLQYHVWLJDWLRQDQGWKHSURSHUW\GDPDJHDVVRFLDWHGZLWKHDFKLQFLGHQWH[FHHGHG7KH

LQIRUPDWLRQFRQWDLQHGLQWKHVHUHSRUWVLVIDFWXDODQGSUHOLPLQDU\DQGGRHVQRWUHIOHFWDGHWHUPLQDWLRQRIWKHFDXVHVRIWKHILUHV

7KLUG3DUW\&ODLPV,QYHVWLJDWLRQVDQG2WKHU3URFHHGLQJV5HODWHGWRWKH&DPS)LUHDQG1RUWKHUQ&DOLIRUQLD:LOGILUHV

,IWKH8WLOLW\¶VIDFLOLWLHVVXFKDVLWVHOHFWULFGLVWULEXWLRQDQGWUDQVPLVVLRQOLQHVDUHGHWHUPLQHGWREHWKHVXEVWDQWLDOFDXVHRIRQHRUPRUHILUHVDQGWKHGRFWULQHRI

LQYHUVHFRQGHPQDWLRQDSSOLHVWKH8WLOLW\FRXOGEHOLDEOHIRUSURSHUW\GDPDJHEXVLQHVVLQWHUUXSWLRQLQWHUHVWDQGDWWRUQH\V¶IHHVZLWKRXWKDYLQJEHHQIRXQG

QHJOLJHQW&DOLIRUQLDFRXUWVKDYHLPSRVHGOLDELOLW\XQGHUWKHGRFWULQHRILQYHUVHFRQGHPQDWLRQLQOHJDODFWLRQVEURXJKWE\SURSHUW\KROGHUVDJDLQVWXWLOLWLHVRQWKH

JURXQGVWKDWORVVHVERUQHE\WKHSHUVRQZKRVHSURSHUW\ZDVGDPDJHGWKURXJKDSXEOLFXVHXQGHUWDNLQJVKRXOGEHVSUHDGDFURVVWKHFRPPXQLW\WKDWEHQHILWHGIURP

VXFKXQGHUWDNLQJDQGEDVHGRQWKHDVVXPSWLRQWKDWXWLOLWLHVKDYHWKHDELOLW\WRUHFRYHUWKHVHFRVWVIURPWKHLUFXVWRPHUV)XUWKHU&DOLIRUQLDFRXUWVKDYHGHWHUPLQHG

WKDWWKHGRFWULQHRILQYHUVHFRQGHPQDWLRQLVDSSOLFDEOHUHJDUGOHVVRIZKHWKHUWKH&38&XOWLPDWHO\DOORZVUHFRYHU\E\WKHXWLOLW\IRUDQ\VXFKFRVWV7KH&38&

PD\GHFLGHQRWWRDXWKRUL]HFRVWUHFRYHU\HYHQLIDFRXUWGHFLVLRQZHUHWRGHWHUPLQHWKDWWKH8WLOLW\LVOLDEOHDVDUHVXOWRIWKHDSSOLFDWLRQRIWKHGRFWULQHRILQYHUVH

FRQGHPQDWLRQ6HH3/RVV5HFRYHULHV5HJXODWRU\5HFRYHU\ ́EHORZIRUIXUWKHULQIRUPDWLRQUHJDUGLQJSRWHQWLDOFRVWUHFRYHU\UHODWHGWRWKHZLOGILUHVLQFOXGLQJLQ

FRQQHFWLRQZLWK6%

,QDGGLWLRQWRFODLPVIRUSURSHUW\GDPDJHEXVLQHVVLQWHUUXSWLRQLQWHUHVWDQGDWWRUQH\V¶IHHVWKH8WLOLW\FRXOGEHOLDEOHIRUILUHVXSSUHVVLRQFRVWVHYDFXDWLRQFRVWV

PHGLFDOH[SHQVHVSHUVRQDOLQMXU\GDPDJHVSXQLWLYHGDPDJHVDQGRWKHUGDPDJHVXQGHURWKHUWKHRULHVRIOLDELOLW\LQFOXGLQJLIWKH8WLOLW\ZHUHIRXQGWRKDYHEHHQ

QHJOLJHQW

)XUWKHUWKH8WLOLW\FRXOGEHVXEMHFWWRPDWHULDOILQHVSHQDOWLHVRUUHVWLWXWLRQRUGHUVLIWKH&38&RUDQ\ODZHQIRUFHPHQWDJHQF\ZHUHWREULQJDQHQIRUFHPHQW

DFWLRQLQFOXGLQJDFULPLQDOSURFHHGLQJDQGLWZHUHGHWHUPLQHGWKDWWKH8WLOLW\KDGIDLOHGWRFRPSO\ZLWKDSSOLFDEOHODZVDQGUHJXODWLRQV

$VRI-DQXDU\3*	(&RUSRUDWLRQDQGWKH8WLOLW\DUHDZDUHRIDSSUR[LPDWHO\FRPSODLQWVRQEHKDOIRIDWOHDVWSODLQWLIIVUHODWHGWRWKH

&DPSILUHQLQHRIZKLFKVHHNWREHFHUWLILHGDVFODVVDFWLRQV7KHSHQGLQJFLYLOOLWLJDWLRQDJDLQVW3*	(&RUSRUDWLRQDQGWKH8WLOLW\UHODWHGWRWKH&DPSILUH

ZKLFKLVFXUUHQWO\VWD\HGDVDUHVXOWRIWKHFRPPHQFHPHQWRIWKH&KDSWHU&DVHVLQFOXGHVFODLPVXQGHUPXOWLSOHWKHRULHVRIOLDELOLW\LQFOXGLQJLQYHUVH

FRQGHPQDWLRQWUHVSDVVSULYDWHQXLVDQFHSXEOLFQXLVDQFHQHJOLJHQFHQHJOLJHQFHSHUVHQHJOLJHQWLQWHUIHUHQFHZLWKSURVSHFWLYHHFRQRPLFDGYDQWDJHQHJOLJHQW

LQIOLFWLRQRIHPRWLRQDOGLVWUHVVSUHPLVHVOLDELOLW\YLRODWLRQVRIWKH3XEOLF8WLOLWLHV&RGHYLRODWLRQVRIWKH+HDOWK	6DIHW\&RGHPDOLFHDQGIDOVHDGYHUWLVLQJLQ

YLRODWLRQRIWKH&DOLIRUQLD%XVLQHVVDQG3URIHVVLRQV&RGH7KHSODLQWLIIVSULQFLSDOO\DVVHUWWKDW3*	(&RUSRUDWLRQ¶VDQGWKH8WLOLW\¶VDOOHJHGIDLOXUHWRPDLQWDLQ

DQGUHSDLUWKHLUGLVWULEXWLRQDQGWUDQVPLVVLRQOLQHVDQGIDLOXUHWRSURSHUO\PDLQWDLQWKHYHJHWDWLRQVXUURXQGLQJVXFKOLQHVZHUHWKHFDXVHVRIWKH&DPSILUH

7KHSODLQWLIIVVHHNGDPDJHVDQGUHPHGLHVWKDWLQFOXGHZURQJIXOGHDWKSHUVRQDOLQMXU\SURSHUW\GDPDJHHYDFXDWLRQFRVWVPHGLFDOH[SHQVHVHVWDEOLVKPHQWRID

FODVVDFWLRQPHGLFDOPRQLWRULQJIXQGSXQLWLYHGDPDJHVDWWRUQH\V¶IHHVDQGRWKHUGDPDJHV3*	(&RUSRUDWLRQ¶VDQGWKH8WLOLW\¶VREOLJDWLRQVZLWKUHVSHFWWRVXFK

FODLPVDUHH[SHFWHGWREHGHWHUPLQHGWKURXJKWKH&KDSWHUSURFHVV

$VRI-DQXDU\3*	(&RUSRUDWLRQDQGWKH8WLOLW\DUHDZDUHRIDSSUR[LPDWHO\FRPSODLQWVRQEHKDOIRIDWOHDVWSODLQWLIIVUHODWHGWRWKH

1RUWKHUQ&DOLIRUQLDZLOGILUHVILYHRIZKLFKVHHNWREHFHUWLILHGDVFODVVDFWLRQV7KHVHFDVHVKDYHEHHQFRRUGLQDWHGLQWKH6DQ)UDQFLVFR&RXQW\6XSHULRU&RXUW

$VRIWKH3HWLWLRQ'DWHWKHFRRUGLQDWHGOLWLJDWLRQZDVLQWKHHDUO\VWDJHVRIGLVFRYHU\$WULDOZLWKUHVSHFWWRWKH$WODVILUHZDVVFKHGXOHGWREHJLQRQ6HSWHPEHU

7KHSHQGLQJFLYLOOLWLJDWLRQDJDLQVW3*	(&RUSRUDWLRQDQGWKH8WLOLW\UHODWHGWRWKH1RUWKHUQ&DOLIRUQLDZLOGILUHVLQFOXGHVFODLPVXQGHUPXOWLSOH

WKHRULHVRIOLDELOLW\LQFOXGLQJLQYHUVHFRQGHPQDWLRQWUHVSDVVSULYDWHQXLVDQFHDQGQHJOLJHQFH7KLVOLWLJDWLRQLQFOXGLQJWKHWULDOGDWHZLWKUHVSHFWWRWKH$WODVILUH

FXUUHQWO\LVVWD\HGDVDUHVXOWRIWKHFRPPHQFHPHQWRIWKH&KDSWHU&DVHV7KHSODLQWLIIVSULQFLSDOO\DVVHUWWKDW3*	(&RUSRUDWLRQ¶VDQGWKH8WLOLW\¶VDOOHJHG

IDLOXUHWRPDLQWDLQDQGUHSDLUWKHLUGLVWULEXWLRQDQGWUDQVPLVVLRQOLQHVDQGIDLOXUHWRSURSHUO\PDLQWDLQWKHYHJHWDWLRQVXUURXQGLQJVXFKOLQHVZHUHWKHFDXVHVRIWKH

1RUWKHUQ&DOLIRUQLDZLOGILUHV7KHSODLQWLIIVVHHNGDPDJHVWKDWLQFOXGHZURQJIXOGHDWKSHUVRQDOLQMXU\SURSHUW\GDPDJHHYDFXDWLRQFRVWVPHGLFDOH[SHQVHV

SXQLWLYHGDPDJHVDWWRUQH\V¶IHHVDQGRWKHUGDPDJHV3*	(&RUSRUDWLRQ¶VDQGWKH8WLOLW\¶VREOLJDWLRQVZLWKUHVSHFWWRVXFKFODLPVDUHH[SHFWHGWREHGHWHUPLQHG

WKURXJKWKH&KDSWHUSURFHVV



Case: 19-30088 Doc# 2844-3 Filed: 07/02/19 Entered: 07/02/19 18:16:23 Page 47

 of 138

7KLUG3DUW\&ODLPV,QYHVWLJDWLRQVDQG2WKHU3URFHHGLQJV5HODWHGWRWKH&DPS)LUHDQG1RUWKHUQ&DOLIRUQLD:LOGILUHV

Case: 19-30088 Doc# 3431-3 Filed: 08/07/19 Entered: 08/07/19 15:51:42 Page 2

of 6
,QVXUDQFHFDUULHUVZKRKDYHPDGHSD\PHQWVWRWKHLULQVXUHGVIRUSURSHUW\GDPDJHDULVLQJRXWRIWKH1RUWKHUQ&DOLIRUQLDZLOGILUHVKDYHILOHGVXEURJDWLRQ

FRPSODLQWVLQWKH6DQ)UDQFLVFR&RXQW\6XSHULRU&RXUWDQGWKH6RQRPD&RXQW\6XSHULRU&RXUWDVRI-DQXDU\7KHVHFRPSODLQWVDOOHJHDPRQJRWKHU

WKLQJVQHJOLJHQFHLQYHUVHFRQGHPQDWLRQWUHVSDVVDQGQXLVDQFH7KHDOOHJDWLRQVDUHVLPLODUWRWKHRQHVPDGHE\LQGLYLGXDOSODLQWLIIV$VRI-DQXDU\

LQVXUDQFHFDUULHUVKDYHILOHGVLPLODUVXEURJDWLRQFRPSODLQWVZLWKUHVSHFWWRWKH&DPSILUHLQWKH6DFUDPHQWR&RXQW\6XSHULRU&RXUWDQGWKH%XWWH&RXQW\

6XSHULRU&RXUW3*	(&RUSRUDWLRQ¶VDQGWKH8WLOLW\¶VREOLJDWLRQVZLWKUHVSHFWWRVXFKFODLPVDUHH[SHFWHGWREHGHWHUPLQHGWKURXJKWKH&KDSWHUSURFHVV

9DULRXVJRYHUQPHQWHQWLWLHVLQFOXGLQJ<XED1HYDGD/DNH0HQGRFLQR1DSDDQG6RQRPD&RXQWLHVDQGWKH&LWLHVRI6DQWD5RVDDQG&OHDUODNHDOVRKDYH

DVVHUWHGFODLPVDJDLQVW3*	(&RUSRUDWLRQDQGWKH8WLOLW\EDVHGRQWKHGDPDJHVWKDWWKHVHJRYHUQPHQWHQWLWLHVDOOHJHGO\VXIIHUHGDVDUHVXOWRIWKH1RUWKHUQ

&DOLIRUQLDZLOGILUHV6XFKDOOHJHGGDPDJHVLQFOXGHDPRQJRWKHUWKLQJVORVVRIQDWXUDOUHVRXUFHVORVVRISXEOLFSDUNVSURSHUW\GDPDJHVDQGILUHVXSSUHVVLRQFRVWV

7KHFDXVHVRIDFWLRQDQGDOOHJDWLRQVDUHVLPLODUWRWKHRQHVPDGHE\LQGLYLGXDOSODLQWLIIVDQGWKHLQVXUDQFHFDUULHUV:LWKUHVSHFWWRWKH&DPSILUH%XWWH

&RXQW\KDVILOHGVLPLODUFODLPVDJDLQVW3*	(&RUSRUDWLRQDQGWKH8WLOLW\DQG3*	(&RUSRUDWLRQDQGWKH8WLOLW\H[SHFWDGGLWLRQDOVLPLODUFODLPVWREHPDGHE\

RWKHUJRYHUQPHQWHQWLWLHV3*	(&RUSRUDWLRQ¶VDQGWKH8WLOLW\¶VREOLJDWLRQVZLWKUHVSHFWWRVXFKFODLPVDUHH[SHFWHGWREHGHWHUPLQHGWKURXJKWKH&KDSWHU

SURFHVV

2Q0DUFK3*	(&RUSRUDWLRQDQGWKH8WLOLW\ILOHGDGHPXUUHUWRWKHLQYHUVHFRQGHPQDWLRQFDXVHRIDFWLRQLQWKH1RUWKHUQ&DOLIRUQLDZLOGILUHV

OLWLJDWLRQ2Q0D\WKHFRXUWRYHUUXOHGWKHPRWLRQ2Q-XO\3*	(&RUSRUDWLRQDQGWKH8WLOLW\ILOHGDZULWLQWKH&RXUWRI$SSHDOUHTXHVWLQJ

DSSHOODWHUHYLHZRIWKHWULDOFRXUW¶VGHFLVLRQZKLFKZDVGHQLHGRQ6HSWHPEHU2Q6HSWHPEHU3*	(&RUSRUDWLRQDQGWKH8WLOLW\ILOHGDSHWLWLRQ

IRUUHYLHZWRWKH&DOLIRUQLD6XSUHPH&RXUW2Q1RYHPEHUWKH&DOLIRUQLD6XSUHPH&RXUWGHQLHG3*	(&RUSRUDWLRQ¶VDQGWKH8WLOLW\¶VSHWLWLRQIRU

UHYLHZ

3*	(&RUSRUDWLRQDQGWKH8WLOLW\H[SHFWWREHWKHVXEMHFWRIQXPHURXVDGGLWLRQDOFODLPVLQFRQQHFWLRQZLWKWKH&DPSILUHDQG1RUWKHUQ&DOLIRUQLD

ZLOGILUHV3*	(&RUSRUDWLRQ¶VDQGWKH8WLOLW\¶VREOLJDWLRQVZLWKUHVSHFWWRVXFKFODLPVDUHH[SHFWHGWREHGHWHUPLQHGWKURXJKWKH&KDSWHUSURFHVV

3*	(&RUSRUDWLRQDQGWKH8WLOLW\DUHFRQWLQXLQJWRUHYLHZWKHHYLGHQFHFRQFHUQLQJWKH&DPSILUHDQG1RUWKHUQ&DOLIRUQLDZLOGILUHV3*	(

&RUSRUDWLRQDQGWKH8WLOLW\KDYHQRW\HWKDGDFFHVVWRDOORIWKHHYLGHQFHFROOHFWHGE\&DO)LUHDVSDUWRILWVLQYHVWLJDWLRQVRUWRPDQ\RIWKHLQYHVWLJDWLRQUHSRUWV

SUHSDUHGE\&DO)LUH3*	(&RUSRUDWLRQDQGWKH8WLOLW\DQGSODLQWLIIVDUHLQGLVFXVVLRQVZLWK&DO)LUHDERXWDFFHVVWRWKHHYLGHQFHDQGWKHUHPDLQLQJUHSRUWV1R

VFKHGXOHRQJDLQLQJDFFHVVKDVEHHQVHW6HH3'LVWULFW$WWRUQH\V¶2IILFHV¶,QYHVWLJDWLRQV ́EHORZIRULQIRUPDWLRQUHJDUGLQJFHUWDLQLQYHVWLJDWLRQVUHODWHGWRWKH

&DPSILUHDQG1RUWKHUQ&DOLIRUQLDZLOGILUHV

5HJDUGOHVVRIDQ\GHWHUPLQDWLRQVRIFDXVHE\&DO)LUHZLWKUHVSHFWWRDQ\SUHSHWLWLRQILUHXOWLPDWHO\3*	(&RUSRUDWLRQ¶VDQGWKH8WLOLW\¶VOLDELOLW\ZLOOEH

UHVROYHGWKURXJKWKH&KDSWHUSURFHVVUHJXODWRU\SURFHHGLQJVDQGDQ\SRWHQWLDOHQIRUFHPHQWSURFHHGLQJVDOORIZKLFKFRXOGWDNHDQXPEHURI\HDUVWRUHVROYH

7KHWLPLQJDQGRXWFRPHRIWKHVHDQGRWKHUSRWHQWLDOSURFHHGLQJVDUHXQFHUWDLQ

3*	(&RUSRUDWLRQDQGWKH8WLOLW\DVSDUWRIWKHLUHIIRUWVWRHPHUJHIURPEDQNUXSWF\DUHHQJDJHGLQGLVFXVVLRQVZLWKKROGHUVRIFODLPVUHODWHGWRWKH

1RUWKHUQ&DOLIRUQLDZLOGILUHVDQGWKH&DPS)LUHLQDQDWWHPSWWRUHDFKDJOREDOVHWWOHPHQWRIVXFKFODLPV3*	(&RUSRUDWLRQDQGWKH8WLOLW\FDQQRWSUHGLFW

WKHRXWFRPHRUWLPLQJRIVXFKGLVFXVVLRQV(YHQLIGLVFXVVLRQVZLWKFODLPKROGHUVZHUHVXFFHVVIXOWKHFRQVXPPDWLRQRIVXFKDQDJUHHPHQWZRXOGOLNHO\EH

FRQWLQJHQWRQQXPHURXVXQFHUWDLQFRQGLWLRQVLQFOXGLQJ%DQNUXSWF\&RXUWDSSURYDODQGJRYHUQPHQWDODFWLRQ

3RWHQWLDO/RVVHVLQ&RQQHFWLRQZLWKWKH&DPS)LUHDQG1RUWKHUQ&DOLIRUQLD:LOGILUHV

2Q-DQXDU\WKH&DOLIRUQLD'HSDUWPHQWRI,QVXUDQFHLVVXHGDQHZVUHOHDVHDQQRXQFLQJDQXSGDWHRQSURSHUW\ORVVHVLQFRQQHFWLRQZLWKWKHZLOGILUHV

LQ6RXWKHUQ&DOLIRUQLDZKLFKDUHQRWLQWKH8WLOLW\¶VVHUYLFHWHUULWRU\DQGWKH&DPSILUHVWDWLQJWKDWDVRIVXFKGDWH3PRUHWKDQELOOLRQLQLQVXUHG

ORVVHVKDYHEHHQUHSRUWHGIURPWKH1RYHPEHUILUHV ́RIZKLFKDSSUR[LPDWHO\ELOOLRQUHODWHVWRVWDWHZLGHFODLPVIURPWKH&DPSILUH2Q6HSWHPEHU

WKH&DOLIRUQLD'HSDUWPHQWRI,QVXUDQFHLVVXHGDQHZVUHOHDVHDQQRXQFLQJWKDWLQVXUHUVKDYHUHFHLYHGQHDUO\LQVXUDQFHFODLPVWRWDOLQJPRUHWKDQ

ELOOLRQLQORVVHVRIZKLFKDSSUR[LPDWHO\ELOOLRQUHODWHVWRVWDWHZLGHFODLPVIURPWKH1RUWKHUQ&DOLIRUQLDZLOGILUHV



Case: 19-30088 Doc# 2844-3 Filed: 07/02/19 Entered: 07/02/19 18:16:23 Page 48

 of 138

2Q0DUFK S \ 3*	(&RUSRUDWLRQDQGWKH8WLOLW\ILOHGDGHPXUUHUWRWKHLQYHUVHFRQGHPQDWLRQFDXVHRIDFWLRQLQWKH1RUWKHUQ&DOLIRUQLDZLOGILUHV

OLWLJDWLRQ2Q0D\WKHFRXUWRYHUUXOHGWKHPRWLRQ2Q J \  Q -XO\  S \ 3*	(&RUSRUDWLRQDQGWKH8WLOLW\ILOHGDZULWLQWKH&RXUWRI$SS T J HDOUHTXHVWLQJ

DSS  HOODWHUHYLHZRIWKHWULDOFRXUW¶VGHFLVLRQZKLFKZDVGHQLHGRQ6HS  S  S WHPEHU2Q6HSWHPEHU3*	(&RUSRUDWLRQDQGWKH8WLOLW\ILOHGDSHWLWLRQ \ S

IRUUHYLHZWRWKH&DOLIRUQLD6XSUHPH&RXUW2Q1RYHPEHUWKH&DOLIRUQLD6XSUHPH&RXUWGHQLHG3*	(&RUSRUDWLRQ¶VDQGWKH8WLOLW\¶VSHWLWLRQIRU

UHYLHZ

Case: 19-30088 Doc# 3431-3 Filed: 08/07/19 Entered: 08/07/19 15:51:42 Page 3

of 6
3URSRVHG:LOGILUH$VVLVWDQFH)XQG

2Q0D\3*	(&RUSRUDWLRQDQGWKH8WLOLW\ILOHGDPRWLRQZLWKWKH%DQNUXSWF\&RXUWVHHNLQJDXWKRUL]DWLRQWRHVWDEOLVKDQGIXQGDSURJUDPWKH3:LOGILUH

$VVLVWDQFH)XQG ́WRDVVLVWWKRVHGLVSODFHGE\WKH&DPSILUHDQG1RUWKHUQ&DOLIRUQLDZLOGILUHVZLWKWKHFRVWVRIWHPSRUDU\KRXVLQJDQGRWKHUXUJHQW

QHHGV7KH:LOGILUH$VVLVWDQFH)XQGLVLQWHQGHGWRDLGFHUWDLQZLOGILUHFODLPDQWVZKRDUHHLWKHUXQLQVXUHGRUVWLOOLQQHHGRIDVVLVWDQFHIRUWHPSRUDU\KRXVLQJ

H[SHQVHVRURWKHUXUJHQWQHHGV7KH:LOGILUH$VVLVWDQFH)XQGZRXOGFRQVLVWRIPLOOLRQGHSRVLWHGLQWRDVHJUHJDWHGDFFRXQWWREHFRQWUROOHGE\DQ

LQGHSHQGHQWWKLUGSDUW\DGPLQLVWUDWRUZKRZLOOGLVEXUVHDQGDGPLQLVWHUWKHIXQGV7KHDGPLQLVWUDWRUZRXOGEHUHVSRQVLEOHIRUGHYHORSLQJWKHVSHFLILFHOLJLELOLW\

UHTXLUHPHQWVDQGDSSOLFDWLRQSURFHGXUHVIRUWKHGLVWULEXWLRQRIWKH:LOGILUH$VVLVWDQFH)XQGWRHOLJLEOHFODLPDQWV8SWRPLOOLRQRIWKH:LOGILUH$VVLVWDQFH)XQG

FRXOGEHXVHGWRSD\DGPLQLVWUDWLYHH[SHQVHV7KHILOLQJRIWKLVPRWLRQLVQRWDQDFNQRZOHGJHPHQWRUDGPLVVLRQE\3*	(&RUSRUDWLRQRUWKH8WLOLW\RIOLDELOLW\

ZLWKUHVSHFWRIWKH&DPSILUHDQG1RUWKHUQ&DOLIRUQLDZLOGILUHV7KHPRWLRQLVVFKHGXOHGWREHKHDUGLQWKH%DQNUXSWF\&RXUWRQ0D\$W

0DUFKWKH8WLOLW\¶V&RQGHQVHG&RQVROLGDWHG%DODQFH6KHHWUHIOHFWHGOLDELOLWLHVRIELOOLRQUHODWHGWRWKLUGSDUW\FODLPVLQFRQQHFWLRQZLWKWKH

&DPSILUHDQGRIWKH1RUWKHUQ&DOLIRUQLDZLOGILUHVZKLFKLQFOXGHGDPRXQWVIRUWHPSRUDU\KRXVLQJH[SHQVHV

%XWWH)LUH

,Q6HSWHPEHUDZLOGILUHWKH3%XWWHILUH ́LJQLWHGDQGVSUHDGLQ$PDGRUDQG&DODYHUDV&RXQWLHVLQ1RUWKHUQ&DOLIRUQLD2Q$SULO&DO

)LUHUHOHDVHGLWVUHSRUWRIWKHLQYHVWLJDWLRQRIWKHRULJLQDQGFDXVHRIWKH%XWWHILUH$FFRUGLQJWR&DO)LUH¶VUHSRUWWKH%XWWHILUHEXUQHGDFUHV

UHVXOWHGLQWZRIDWDOLWLHVGHVWUR\HGKRPHVRXWEXLOGLQJVDQGIRXUFRPPHUFLDOSURSHUWLHVDQGGDPDJHGVWUXFWXUHV&DO)LUH¶VUHSRUWFRQFOXGHGWKDWWKH

%XWWHILUHZDVFDXVHGZKHQDJUD\SLQHWUHHFRQWDFWHGWKH8WLOLW\¶VHOHFWULFOLQHZKLFKLJQLWHGSRUWLRQVRIWKHWUHHDQGGHWHUPLQHGWKDWWKHIDLOXUHE\WKH

8WLOLW\DQGRULWVYHJHWDWLRQPDQDJHPHQWFRQWUDFWRUV$&57,QFDQG7UHHV,QFWRLGHQWLI\FHUWDLQSRWHQWLDOKD]DUGVGXULQJLWVYHJHWDWLRQPDQDJHPHQWSURJUDP

XOWLPDWHO\OHGWRWKHIDLOXUHRIWKHWUHH

7KLUG3DUW\&ODLPV

2Q0D\LQGLYLGXDOSODLQWLIIVILOHGDPDVWHUFRPSODLQWDJDLQVWWKH8WLOLW\DQGLWVWZRYHJHWDWLRQPDQDJHPHQWFRQWUDFWRUVLQWKH6XSHULRU&RXUWRI

&DOLIRUQLD&RXQW\RI6DFUDPHQWR6XEURJDWLRQLQVXUHUVDOVRILOHGDVHSDUDWHPDVWHUFRPSODLQWRQWKHVDPHGDWH7KH&DOLIRUQLD-XGLFLDO&RXQFLOSUHYLRXVO\KDG

DXWKRUL]HGWKHFRRUGLQDWLRQRIDOOFDVHVLQ6DFUDPHQWR&RXQW\$VRI-DQXDU\NQRZQFRPSODLQWVKDYHEHHQILOHGDJDLQVWWKH8WLOLW\DQGLWVWZR

YHJHWDWLRQPDQDJHPHQWFRQWUDFWRUVLQWKH6XSHULRU&RXUWRI&DOLIRUQLDLQWKH&RXQWLHVRI&DODYHUDV6DQ)UDQFLVFR6DFUDPHQWRDQG$PDGRU7KHFRPSODLQWV

LQYROYHDSSUR[LPDWHO\LQGLYLGXDOSODLQWLIIVUHSUHVHQWLQJDSSUR[LPDWHO\KRXVHKROGVDQGWKHLULQVXUDQFHFRPSDQLHV7KHVHFRPSODLQWVDUHSDUWRIRU

ZHUHLQWKHSURFHVVRIEHLQJDGGHGWRWKHFRRUGLQDWHGSURFHHGLQJ3ODLQWLIIVVHHNWRUHFRYHUGDPDJHVDQGRWKHUFRVWVSULQFLSDOO\EDVHGRQWKHGRFWULQHRILQYHUVH

FRQGHPQDWLRQDQGQHJOLJHQFHWKHRU\RIOLDELOLW\3ODLQWLIIVDOVRVHHNSXQLWLYHGDPDJHV6HYHUDOSODLQWLIIVGLVPLVVHGWKH8WLOLW\¶VWZRYHJHWDWLRQPDQDJHPHQW

FRQWUDFWRUVIURPWKHLUFRPSODLQWV7KH8WLOLW\GRHVQRWH[SHFWWKHQXPEHURIFODLPDQWVWRLQFUHDVHVLJQLILFDQWO\LQWKHIXWXUHEHFDXVHWKHVWDWXWHRIOLPLWDWLRQVIRU

SURSHUW\GDPDJHDQGSHUVRQDOLQMXU\LQFRQQHFWLRQZLWKWKH%XWWHILUHKDVH[SLUHG)XUWKHUGXHWRWKHFRPPHQFHPHQWRIWKH&KDSWHU&DVHVWKHVH

SODLQWLIIVKDYHEHHQVWD\HGIURPFRQWLQXLQJWRSURVHFXWHSHQGLQJOLWLJDWLRQDQGIURPFRPPHQFLQJQHZODZVXLWVDJDLQVW3*	(&RUSRUDWLRQRUWKH8WLOLW\RQ

DFFRXQWRISUHSHWLWLRQREOLJDWLRQV2Q-DQXDU\WKH&RXUWLQWKHFRRUGLQDWHGSURFHHGLQJLVVXHGDQRUGHUVWD\LQJWKHDFWLRQ

2Q$SULOWKH8WLOLW\PRYHGIRUVXPPDU\DGMXGLFDWLRQRQSODLQWLIIV¶FODLPVIRUSXQLWLYHGDPDJHV7KHFRXUWGHQLHGWKH8WLOLW\¶VPRWLRQDQGWKH8WLOLW\

ILOHGDZULWZLWKWKH&RXUWRI$SSHDORIWKH6WDWHRI&DOLIRUQLD7KLUG$SSHOODWH'LVWULFW7KHZULWZDVJUDQWHGRQ-XO\GLUHFWLQJWKHWULDOFRXUWWRHQWHU

VXPPDU\DGMXGLFDWLRQLQIDYRURIWKH8WLOLW\DQGWRGHQ\SODLQWLIIV¶FODLPIRUSXQLWLYHGDPDJHVXQGHU&DOLIRUQLD&LYLO&RGH6HFWLRQ3ODLQWLIIVVRXJKW

UHKHDULQJDQGDVNHGWKH&DOLIRUQLD6XSUHPH&RXUWWRUHYLHZWKH&RXUWRI$SSHDO¶VGHFLVLRQ%RWKUHTXHVWVZHUHGHQLHG1HLWKHUWKHWULDOQRUDSSHOODWHFRXUWV

RULJLQDOO\DGGUHVVHGZKHWKHUSODLQWLIIVFDQVHHNSXQLWLYHGDPDJHVDWWULDOXQGHU3XEOLF8WLOLWLHV&RGH6HFWLRQ+RZHYHUWKHWULDOFRXUWLQ1RYHPEHU

GHQLHGDPRWLRQILOHGE\WKH8WLOLW\WKDWZRXOGKDYHFRQILUPHGWKDWSXQLWLYHGDPDJHVXQGHU3XEOLF8WLOLWLHV&RGH6HFWLRQDUHXQDYDLODEOH7KH8WLOLW\EHOLHYHV

DORVVUHODWHGWRSXQLWLYHGDPDJHVLVXQOLNHO\EXWSRVVLEOH



Case: 19-30088 Doc# 2844-3 Filed: 07/02/19 Entered: 07/02/19 18:16:23 Page 56

 of 138

%XWWH)LUH

Case: 19-30088 Doc# 3431-3 Filed: 08/07/19 Entered: 08/07/19 15:51:42 Page 4

of 6
2Q-XQHWKH6XSHULRU&RXUWRI&DOLIRUQLD&RXQW\RI6DFUDPHQWRUXOHGRQDPRWLRQRIVHYHUDOSODLQWLIIVDQGIRXQGWKDWWKHGRFWULQHRILQYHUVH

FRQGHPQDWLRQDSSOLHVWRWKH8WLOLW\ZLWKUHVSHFWWRWKH%XWWHILUH7KHFRXUWKHOGDPRQJRWKHUWKLQJVWKDWWKH8WLOLW\KDGIDLOHGWRSXWIRUWKDQ\HYLGHQFHWR

VXSSRUWLWVFRQWHQWLRQWKDWWKH&38&ZRXOGQRWDOORZWKH8WLOLW\WRSDVVRQLWVLQYHUVHFRQGHPQDWLRQOLDELOLW\WKURXJKUDWHLQFUHDVHV:KLOHWKHUXOLQJLVELQGLQJ

RQO\EHWZHHQWKH8WLOLW\DQGWKHSODLQWLIIVLQWKHFRRUGLQDWLRQSURFHHGLQJDWWKHWLPHRIWKHUXOLQJRWKHUVFRXOGPDNHVLPLODUFODLPV2Q-DQXDU\WKH8WLOLW\

ILOHGZLWKWKHFRXUWDUHQHZHGPRWLRQIRUDOHJDOGHWHUPLQDWLRQRILQYHUVHFRQGHPQDWLRQOLDELOLW\FLWLQJWKH1RYHPEHU&38&GHFLVLRQGHQ\LQJWKH6DQ

'LHJR*DV	(OHFWULF&RPSDQ\DSSOLFDWLRQWRUHFRYHUZLOGILUHFRVWVLQH[FHVVRILQVXUDQFHDQGWKH&38&GHFODUDWLRQWKDWLWZLOOQRWDXWRPDWLFDOO\DOORZXWLOLWLHV

WRVSUHDGLQYHUVHFRQGHPQDWLRQORVVHVWKURXJKUDWHLQFUHDVHV

2Q0D\WKH6XSHULRU&RXUWRI&DOLIRUQLD&RXQW\RI6DFUDPHQWRLVVXHGLWVUXOLQJRQWKH8WLOLW\¶VUHQHZHGPRWLRQLQZKLFKWKHFRXUWDIILUPHGZLWKPLQRU

FKDQJHVLWVWHQWDWLYHUXOLQJGDWHG$SULO7KHFRXUWGHWHUPLQHGWKDWLWLVERXQGE\HDUOLHUKROGLQJVRIWZRDSSHOODWHFRXUWVGHFLVLRQV%DUKDPDQG3DFLILF

%HOO)XUWKHUWKHFRXUWVWDWHGWKDWWKH8WLOLW\¶VFRQVWLWXWLRQDODUJXPHQWVVKRXOGEHPDGHWRWKHDSSHOODWHFRXUWVDQGVXJJHVWHGWKDWWRWKHH[WHQWWKH8WLOLW\UDLVHV

WKHSXEOLFSROLF\LPSOLFDWLRQVRIWKH1RYHPEHU&38&GHFLVLRQLQWKH6DQ'LHJR*DV	(OHFWULF&RPSDQ\FRVWUHFRYHU\SURFHHGLQJWKHVHDUJXPHQWV

VKRXOGEHDGGUHVVHGWRWKH/HJLVODWXUHRU&38&7KH8WLOLW\ILOHGDZULWZLWKWKH&RXUWRI$SSHDOVHHNLQJLPPHGLDWHUHYLHZRIWKHFRXUW¶VGHFLVLRQ2Q-XQH

DIWHUWKHZULWZDVVXPPDULO\GHQLHGWKH8WLOLW\ILOHGD3HWLWLRQIRU5HYLHZZLWKWKH&DOLIRUQLD6XSUHPH&RXUWZKLFKDOVRZDVGHQLHG2Q6HSWHPEHU

WKHFRXUWVHWDWULDOIRUVRPHLQGLYLGXDOSODLQWLIIVWREHJLQRQ$SULO7KH8WLOLW\UHDFKHGDJUHHPHQWZLWKWZRSODLQWLIIVLQWKHOLWLJDWLRQWRVWLSXODWHWR

MXGJPHQWDJDLQVWWKH8WLOLW\RQLQYHUVHFRQGHPQDWLRQJURXQGV7KHFRXUWJUDQWHGWKH8WLOLW\¶VVWLSXODWHGMXGJPHQWPRWLRQRQ1RYHPEHUDQGWKH8WLOLW\

ILOHGLWVDSSHDORQ'HFHPEHU$VDUHVXOWRIWKHILOLQJRIWKH&KDSWHU&DVHVWKHVHODZVXLWVLQFOXGLQJWKHWULDODQGWKHDSSHDOIURPWKHVWLSXODWHG

MXGJPHQWDUHVWD\HG

,QDGGLWLRQWRWKHFRRUGLQDWHGSODLQWLIIV&DO)LUHWKH2(6WKH&RXQW\RI&DODYHUDVDQGILYHVPDOOHUSXEOLFHQWLWLHVWKUHHILUHGLVWULFWVRQHZDWHUGLVWULFWDQGWKH

&DOLIRUQLD'HSDUWPHQWRI9HWHUDQV$IIDLUVKDYHEURXJKWVXLWRULQGLFDWHGWKDWWKH\LQWHQGWRGRVR7KHILYHVPDOOHUSXEOLFHQWLWLHVILOHGWKHLUFRPSODLQWVLQ$XJXVW

DQG6HSWHPEHU7KH\KDYHEHHQDGGHGWRWKHFRRUGLQDWHGSURFHHGLQJV7KH8WLOLW\KDVVHWWOHGWKHFODLPVRIWKHWKUHHILUHSURWHFWLRQGLVWULFWV

2Q$SULO&DO)LUHILOHGDFRPSODLQWZLWKWKH6XSHULRU&RXUWRI&DOLIRUQLD&RXQW\RI&DODYHUDVVHHNLQJWRUHFRYHURYHUPLOOLRQIRULWVFRVWVLQFXUUHG

RQWKHWKHRU\WKDWWKH8WLOLW\DQGLWVYHJHWDWLRQPDQDJHPHQWFRQWUDFWRUVZHUHQHJOLJHQWRUYLRODWHGWKHODZDPRQJRWKHUFODLPV2Q-XO\&DO)LUH

GLVPLVVHGLWVFRPSODLQWDJDLQVW7UHHV,QFRQHRIWKH8WLOLW\¶VYHJHWDWLRQFRQWUDFWRUV&DO)LUHKDGUHTXHVWHGWKDWDWULDORILWVFODLPVEHVHWLQIROORZLQJDQ\

WULDORIWKHFODLPVRIWKHLQGLYLGXDOSODLQWLIIV2Q2FWREHUWKH8WLOLW\ILOHGDPRWLRQIRUVXPPDU\MXGJPHQWDUJXLQJWKDW&DO)LUHFDQQRWUHFRYHUDQ\ILUH

VXSSUHVVLRQFRVWVXQGHUWKH7KLUG'LVWULFW&RXUWRI$SSHDO¶VGHFLVLRQLQ'HS¶WRI)RUHVWU\	)LUH3URWY+RZHOO&DO$SSWK7KHKHDULQJRQWKDW

PRWLRQZDVVHWIRU-DQXDU\EXWWKHKHDULQJDQG&DO)LUH¶VFDVHDJDLQVWWKH8WLOLW\DUHQRZVWD\HG3ULRUWRWKHVWD\WKH8WLOLW\DQG&DO)LUHZHUHDOVR

HQJDJHGLQDPHGLDWLRQSURFHVV

$OVRRQ)HEUXDU\WKH&RXQW\RI&DODYHUDVILOHGVXLWDJDLQVWWKH8WLOLW\DQGWKH8WLOLW\¶VYHJHWDWLRQPDQDJHPHQWFRQWUDFWRUVWRUHFRYHUGDPDJHVDQGRWKHU

FRVWVEDVHGRQWKHGRFWULQHRILQYHUVHFRQGHPQDWLRQDQGQHJOLJHQFHWKHRU\RIOLDELOLW\7KH&RXQW\DOVRVRXJKWSXQLWLYHGDPDJHV2Q0DUFKWKH&RXQW\

VHUYHGDPHGLDWLRQGHPDQGVHHNLQJLQH[FHVVRIPLOOLRQKDYLQJSUHYLRXVO\LQGLFDWHGWKDWLWLQWHQGHGWREULQJDQDSSUR[LPDWHO\PLOOLRQFODLPDJDLQVWWKH

8WLOLW\7KLVFODLPLQFOXGHGFRVWVWKDWWKH&RXQW\RI&DODYHUDVDOOHJHGO\LQFXUUHGRUH[SHFWHGWRLQFXUIRULQIUDVWUXFWXUHGDPDJHHURVLRQFRQWURODQGRWKHUFRVWV

7KH8WLOLW\DQGWKH&RXQW\RI&DODYHUDVVHWWOHGWKH&RXQW\¶VFODLPVLQ1RYHPEHUIRUPLOOLRQ

)XUWKHULQ0D\WKH2(6LQGLFDWHGWKDWLWLQWHQGHGWREULQJDFODLPDJDLQVWWKH8WLOLW\WKDWLWHVWLPDWHGWREHDSSUR[LPDWHO\PLOOLRQ7KLVFODLPZRXOG

LQFOXGHFRVWVLQFXUUHGE\WKH2(6IRUWUHHDQGGHEULVUHPRYDOLQIUDVWUXFWXUHGDPDJHHURVLRQFRQWURODQGRWKHUFODLPVUHODWHGWRWKH%XWWHILUH7KH8WLOLW\

KDVQRWUHFHLYHGDQ\LQIRUPDWLRQRUGRFXPHQWDWLRQIURP2(6VLQFHLWV0D\VWDWHPHQW,Q-XQHWKH8WLOLW\HQWHUHGLQWRDQDJUHHPHQWZLWKWKH2(6WKDW

H[WHQGVLWVGHDGOLQHWRILOHDFODLPWR'HFHPEHU

3*	(&RUSRUDWLRQ¶VDQGWKH8WLOLW\¶VREOLJDWLRQVZLWKUHVSHFWWRVXFKRXWVWDQGLQJFODLPVDUHH[SHFWHGWREHGHWHUPLQHGWKURXJKWKH&KDSWHUSURFHVV



Case: 19-30088 Doc# 2844-3 Filed: 07/02/19 Entered: 07/02/19 18:16:23 Page 57

 of 138

2Q-XQH S  \ WKH6XSHULRU&RXUWRI&DOLIRUQLD&RXQW\RI6DFUDPHQWRUXOHGRQDPRWLRQRIVHYHUDOSODLQWLIIVDQGIRXQGWKDWWKHGRFWULQHRILQYHUVH

FRQGHPQDWLRQDSSOLHVWRWKH8WLOLW\ZLWKUHVSHFWWRWKH%X SS \ S  J J  \ WWHILUH7KHFRXUWKHOGDPRQJRWKHUWKLQJVWKDWWKH8WLOLW\KDGIDLOHGWRSXWIRUWKDQ\HYLGHQFHWR

VXSSRUWLWVFRQWHQWLRQWKDWWKH&38&ZRXOGQRWDOORZWKH8WLOLW\WRSDVVRQLWVLQYHUVHFRQGHPQDWLRQOLDELOLW\WKURXJKUDWHLQFUHDVHV: J J

\ \ S S J J 2Q-DQXDU\WKH8WLOLW\ \ 

ILOHGZLWKWKHFRXUWDUHQHZHGPRWLRQIRUDOHJ \ J  DOGHWHUPLQDWLRQRILQYHUVHFRQGHPQDWLRQOLDELOLW\FLWLQJWKH1RYHPEHU&38&GHFLVLRQGHQ\ J LQ WKH6DQ

'LHJR*DV	(OHFWULF&RPSDQ\DSSOLFDWLRQWRUHFRYHUZLOGILUHFR J S \ SS VWVLQH[FHVVRILQVXUDQFHDQGWKH&38&GHFODUDWLRQWKDWLWZLOOQRWDXWRPDWLFDOO\DOORZXWLOLWLHV

WRVSUHDGLQYHUVHFRQGHPQDWLRQORVVHVWKURXJKUDWHLQFUHDVHV

2Q0D\  S  \ WKH6XSHULRU&RXUWRI&DOLIRUQLD&RXQW\RI6DFUDPHQWRLVVXHGLWVUXOLQJRQWKH8WLOLW\¶VUHQHZHGPRWLRQLQZK J\  LFKWKHFRXUWDIILUPHGZLWKPLQRU

FKDQJHVLWVWHQWDWLYHUXOLQJGDWHG$SULO7KHFRXUWG J HWHUPLQHGWKDWLWLVERXQGE\HDUOLHUKROGLQJVRIWZRDSSHOODWHFRXUWVGHFLVLRQV %DUKDP DQG 3DFLILF

%HOO )

 J S \ \ S J J

J \ 7KH8WLOLW\ILOHGDZULWZLWKWKH&RXUWRI$SS J HDOVHHNLQJLPPHGLDWHUHYLHZRIWKHFRXUW¶VGHFLVLRQ2Q-XQH

 \ \ S  DIWHUWKHZULWZDVVXPPDULO\GHQLHGWKH8WLOLW\ILOHGD3HWLWLRQIRU5HYLHZZLWKWKH&DOLIRUQLD6XSUHPH&RXUWZKLFKDOVRZDVGHQLHG2Q6HS  WHPEHU

WKHFRXUWVHWDWULDOIRUVRPHLQGLYLGXDOSODLQWLIIVWRE  S J S \ J S J S HJLQRQ$SULO7KH8WLOLW\UHDFKHGDJUHHPHQWZLWKWZRSODLQWLIIVLQWKHOLWLJDWLRQWRVWLSXODWHWR

MXGJPHQWDJDLQVWWKH8WLOLW\RQLQYHUVHFRQGHPQDWLRQJURXQGV7 MJ J \ J J \ S MJ  KHFRXUWJUDQWHGWKH8WLOLW\¶VVWLSXODWHGMXGJPHQWPRWLRQRQ1RYHPEHUDQGWKH8WLOLW\

ILOHGLWVDSSHDORQ'HFHPEHU$VDUHVXOWRIWKHILOLQ SS JRIWKH&KDSWHU&DVHVWKHVHODZVXLWVLQFOXGLQJWKHWULDODQGWKHDSSHDOIURPWKHVWLSXODWHG

MXGJPHQWDUHVWD\HG

Case: 19-30088 Doc# 3431-3 Filed: 08/07/19 Entered: 08/07/19 15:51:42 Page 5

of 6
(VWLPDWHG/RVVHVIURP7KLUG3DUW\&ODLPV

,QFRQQHFWLRQZLWKWKH%XWWHILUHWKH8WLOLW\PD\EHOLDEOHIRUSURSHUW\GDPDJHVEXVLQHVVLQWHUUXSWLRQLQWHUHVWDQGDWWRUQH\V¶IHHVZLWKRXWKDYLQJEHHQ

IRXQGQHJOLJHQWWKURXJKWKHGRFWULQHRILQYHUVHFRQGHPQDWLRQ

,QDGGLWLRQWKH8WLOLW\PD\EHOLDEOHIRUILUHVXSSUHVVLRQFRVWVSHUVRQDOLQMXU\GDPDJHVDQGRWKHUGDPDJHVLIWKH8WLOLW\LVIRXQGWRKDYHEHHQQHJOLJHQW:KLOH

WKH8WLOLW\EHOLHYHVLWZDVQRWQHJOLJHQWWKHUHFDQEHQRDVVXUDQFHWKDWDFRXUWZRXOGDJUHHZLWKWKH8WLOLW\

7KH8WLOLW\¶VDVVHVVPHQWRIWKHHVWLPDWHGORVVUHODWHGWRWKH%XWWHILUHLVEDVHGRQDVVXPSWLRQVDERXWWKHQXPEHUVL]HDQGW\SHRIVWUXFWXUHVGDPDJHGRU

GHVWUR\HGWKHFRQWHQWVRIVXFKVWUXFWXUHVWKHQXPEHUDQGW\SHVRIWUHHVGDPDJHGRUGHVWUR\HGDVZHOODVDVVXPSWLRQVDERXWSHUVRQDOLQMXU\GDPDJHVDWWRUQH\V¶

IHHVILUHVXSSUHVVLRQFRVWVDQGFHUWDLQRWKHUGDPDJHV

7KH8WLOLW\KDVGHWHUPLQHGWKDWLWLVSUREDEOHWKDWLWZLOOLQFXUDORVVRIELOOLRQLQFRQQHFWLRQZLWKWKH%XWWHILUH:KLOHWKLVDPRXQWLQFOXGHVWKH8WLOLW\¶V

DVVXPSWLRQVDERXWILUHVXSSUHVVLRQFRVWVLQFOXGLQJLWVDVVHVVPHQWRIWKH&DO)LUHORVVLWGRHVQRWLQFOXGHDQ\SRUWLRQRIWKHHVWLPDWHGFODLPIURPWKH2(67KH

8WLOLW\VWLOOGRHVQRWKDYHVXIILFLHQWLQIRUPDWLRQWRUHDVRQDEO\HVWLPDWHDQ\OLDELOLW\LWPD\KDYHIRUWKDWDGGLWLRQDOFODLP

7KHSURFHVVIRUHVWLPDWLQJFRVWVDVVRFLDWHGZLWKFODLPVUHODWLQJWRWKH%XWWHILUHUHTXLUHVPDQDJHPHQWWRH[HUFLVHVLJQLILFDQWMXGJPHQWEDVHGRQDQXPEHURI

DVVXPSWLRQVDQGVXEMHFWLYHIDFWRUV$VPRUHLQIRUPDWLRQEHFRPHVNQRZQPDQDJHPHQWHVWLPDWHVDQGDVVXPSWLRQVUHJDUGLQJWKHILQDQFLDOLPSDFWRIWKH

%XWWHILUHPD\UHVXOWLQPDWHULDOLQFUHDVHVWRWKHORVVDFFUXHG

7KHIROORZLQJWDEOHSUHVHQWVFKDQJHVLQWKHWKLUGSDUW\FODLPVOLDELOLW\VLQFH'HFHPEHU7KHEDODQFHIRUWKHWKLUGSDUW\FODLPVOLDELOLW\LVLQFOXGHGLQ

:LOGILUHUHODWHGFODLPVLQ3*	(&RUSRUDWLRQ¶VDQGWKH8WLOLW\¶V&RQGHQVHG&RQVROLGDWHG%DODQFH6KHHWV

/RVV$FFUXDOLQPLOOLRQV

%DODQFHDW'HFHPEHU  2

$FFUXHGORVVHV 

3D\PHQWV 

%DODQFHDW'HFHPEHU 

$FFUXHGORVVHV 

3D\PHQWV 

%DODQFHDW'HFHPEHU 

$FFUXHGORVVHV 2

3D\PHQWV 

%DODQFHDW'HFHPEHU 

$FFUXHGORVVHV 2

3D\PHQWV 

%DODQFHDVRI0DUFK  

$VRI0DUFKWKH8WLOLW\KDVSDLGPLOOLRQRIWKHPLOOLRQLQVHWWOHPHQWVWRGDWHLQFRQQHFWLRQZLWKWKH%XWWHILUH

,IWKH8WLOLW\UHFRUGVORVVHVLQFRQQHFWLRQZLWKFODLPVUHODWLQJWRWKH%XWWHILUHWKDWPDWHULDOO\H[FHHGWKHDPRXQWWKH8WLOLW\DFFUXHGIRUWKHVHOLDELOLWLHV

3*	(&RUSRUDWLRQ¶VDQGWKH8WLOLW\¶VILQDQFLDOFRQGLWLRQUHVXOWVRIRSHUDWLRQVOLTXLGLW\DQGFDVKIORZVFRXOGEHPDWHULDOO\DIIHFWHGLQWKHUHSRUWLQJSHULRGV

GXULQJZKLFKDGGLWLRQDOFKDUJHVDUHUHFRUGHG

/RVV5HFRYHULHV

7KH8WLOLW\KDVOLDELOLW\LQVXUDQFHIURPYDULRXVLQVXUHUVWKDWSURYLGHVFRYHUDJHIRUWKLUGSDUW\OLDELOLW\DWWULEXWDEOHWRWKH%XWWHILUHLQDQDJJUHJDWHDPRXQWRI

PLOOLRQ7KH8WLOLW\UHFRUGVLQVXUDQFHUHFRYHULHVZKHQLWLVGHHPHGSUREDEOHWKDWDUHFRYHU\ZLOORFFXUDQGWKH8WLOLW\FDQUHDVRQDEO\HVWLPDWHWKHDPRXQWRU

LWVUDQJH7KURXJK0DUFKWKH8WLOLW\UHFRUGHGPLOOLRQIRUSUREDEOHLQVXUDQFHUHFRYHULHVLQFRQQHFWLRQZLWKORVVHVUHODWHGWRWKH%XWWHILUH

:KLOHWKH8WLOLW\SODQVWRVHHNUHFRYHU\RIDOOLQVXUHGORVVHVLWLVXQDEOHWRSUHGLFWWKHXOWLPDWHDPRXQWDQGWLPLQJRIVXFKLQVXUDQFHUHFRYHULHV,QDGGLWLRQWKH

8WLOLW\KDVUHFHLYHGPLOOLRQLQFXPXODWLYHUHLPEXUVHPHQWVIURPWKHLQVXUDQFHSROLFLHVRILWV



Case: 19-30088 Doc# 2844-3 Filed: 07/02/19 Entered: 07/02/19 18:16:23 Page 58

 of 138

7KH8WLOLW\KDVGHWHUPLQHGWKDWLWLVSUREDEOHWKDWLWZLOOLQFXUDORVVRIELOOLRQLQFRQQHFWLRQZLWKWKH%XWWHILUH:

Case: 19-30088 Doc# 3431-3 Filed: 08/07/19 Entered: 08/07/19 15:51:42 Page 6

of 6