SF,TTLF.MENT AND RELEASE AGRETt:MENT 

This Settlement and Release Ab'Tccrncnt ("Agreement") is made by, between, and among 

the following undersigned parties: 

The Federal Deposit .Insurance Corporation as Receiver for Colonial Bank ("-FDIC-R") 

and Murla Chung ("Chung") (individually, the FDlC-R and Chung may be referred to herein as 

"Party" and C(lllectively as the "Parties"). 

RECITALS 

WHEREAS: 

Prior to August 14, 2009, Colonial Bank ("Colonial" or the "Bank") was a depository 

institution organized and existing under the laws of the State of Alabama. 

On August 14, 2009, Colonial wus closed by the Alabama State Banking Department and 

pursuant to 12 U.S.C. § 18/.l(c), the Federal Deposit Insurance Corporation was appointed 

Receiver. In accor·dance with 12 U.S.C. § 1821 (d), the FDIC-R succeeded to all rights, titles, 

powers and privileges of the Bank, including those with respect to its assets. 

Among the assets lo which the FDIC -R su(:cccdcd were Lhc 1:3nnk 's claims and demands 

that are the subject of this Agreement. 

A dispute has arisen between the Parties with respect to an outstanding demand by the 

F'DIC-R for reimbursement ofJosses resulting from two loans._I ______ ._······-······-······-······-······-·····---····__.HI 

(b )(2)?(l:>.J.H HI.H .. .. H. .. .H · Ito Chung for the purchase of a singlc-fiunily 

~g ~( 4 )1{l:>1 r.~;sidcnccJo.catcdatJL.. ____ __,I.Rc~>eda CA 91335 (the "Property"). The FDIC-R claims 

(6) that Chung's bona fide purchaser status, income, occupancy and credit were misrepresented 

during the loan application process ;md th~..: FDJC-R demands reimbursement for the losses 

resulting from the two loans provided to Chung for the pul'chasc of the Propctiy (the "Clahns"). 

Chung denies the allegations. 

The Parties engaged in s~ttlement negoti~tions AS a result of the Claims. The Parties now 

deem it in their hest interests to e.nter int•) this Agr';l~r~lct:t io avoiJ the uncertainty, trouble and 

expense of litigation. 

f .Jl:>.)J4.J, (11) 

(6) 
NOW~ THEREFORE, in consideration of the promises, undertakings, paymcnt!i, and 

releases stated herein, the sufficiency of which consideration is hereby acknowledged, the 

undersigned Parties agree, each with the other, as follows: 

St!;CTION 1: Pnymcnt to FDIC-R 

A. As an essential covenant and condition to this Agretlment, Chung agrees to pay 

the }'I)IC-R the sum of seventy-five thousand dollars ($75,000) ("the Settlement Amount") 

within thirty (30) days of the FDIC-R's execution ofthi.s Agreement, in settlement of the Claims. 

B. Chung shall deliver the Settlement Payment to the FDIC-R by direct wire transfer 

into Mortgage Recovery Law Group LLP's Client Tm.st Account or by certified or cashier's 

chtlck drawn upon a depository institution acceptable to FDIC-R. In tht: event that the 

Sctth:mcnt Payment is not delivered to the FDIC-R (or its counsel) within the timeframc required 

in subsection A above, interest shall accrue on all unpaid amount's at the rate of 5% per annum 

from thirty (30) calendar days following the date the FDIC-R executes this Agreement until the 

date of payment. 

C. If the FDIC-R docs not receive the Settlement Payment in full on or before the 

date determined by subsection A above, then the FD1C-R, in its sole discretion, shall have the 

right at any time prior to receipt of the Settlement .Payment in full (including all accrued interest) 

to: 

1. Extend the period of time for the Settlement Payment, jncluding interest 

accruing from the date determined by subsection A above, through the date of payment at a rate 

calculated in accordance with 26 U.S.C. § 6621 (a)(2); or 

2. Enforce this Agreement, in which event Chung agrees to jurisdiction in 

lJnitcd ~tatcs District Court lor th~ Central District of California ami to pay all of the FDTC-R 's 

reasonable attorney's fees and costs expended in enforcing tht: tmms of this Agreement; or 

3. Terminate this Agreement and, at the fDIC-R's clct:tion, institute an 

action on the fDIC-R 's Claims. Chung further agrct;s to waive any defense based on any statute 

of limitations that would bar any of the FDfC-R's Claims and waive all objections, dcfcnst:.:;, 

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claims or counterclaims, and covenant and agree not to assert any objections, defenses, claims or 

counterclaims, that did not exist or were otherwise unavailable as of the date this Agreement was 

fully executed; an<Vor 

4. Seek any other relief available to it in law or equity. 

Any extension of time under Section I.C.l for delivery of the Settlement Payment or 

acceptance of n portion of the Settlement Payment sha11 not prejudice the FDIC-R' s rights to take 

any of the actions s~t forth in Section I.C.2 through l.C.4 at any time prior to receipt of 

Settlement Payment (including all accrued interest) in full. 

SECTION II: Releases 

Each Party acknowledges that this Agreement applies to all claims for injuries, damages, 

or losses of any type or nature (whether those injuries, damages, or Iosse.<: are known or 

unknown, foreseen or unforeseen, patent or latent) which that Party may have against another 

Party arising from the Claims. Each Party hcrtby expressly waives application of California 

Civil Code §1542 and any other similar statute or tule. 

Each Party certi1i~s that they have read and undtm;tood the following provisions of 

California Civil Code §J 542, which states in pertinent part as follows: 

A general release docs not extend to claims which the creditor docs 

not know or suspect to exist h1 his or her favor at the tlme of 

executing the release, which if known by him or her must have 

materially affected his or her settlement with the debtor. 

Each Party u:nderstal!ds ;md acknowledges that the significance and consequence of its 

waiver of Cal{fornia Civii Code§ 1542 is that even if any Party should eventually suffer 

additional damages arising out of the Claims, the claims and causes of action that were or could 

have been asst:rtcd relating to the Claims, or any facts or circumstances related to the Claims, 

that Party will not he able to make any claim against the other Pmty for those damages. 

Furthermore, each Pany acknowledges thai it comciously intends these consequences even as to 

claims for dnrnages that may cxi~t as of the date of this release but which that Party does not 

know t:xists, and ·which, if knov.Hl, '.Wmld materially aff~<.:l that Party's decision to l:Xt:t:ul~: this 
release, regardless of whether that Pmty's lack of knowledge is the result of ignorance, oversight, 

error, negligence, or any other cause. 

A. TI1c FDIC-R's Releases. 

Upon receipt of the Settlement Payment inful1 and except as provided in Section III.C., 

the I,.DIC-R, for itself and its successors and assigns, hereby releases and discharges Chung and 

her respective heirs, executors, trustees, administrators, representatives, successors, and assigns, 

as well as Dean Pickard and Tampa Series, J.LC, from any and all claims, demands, obligations, 

damages, actions, and causes of action, direct or indirect, in law or in equity, belonging to the 

FDIC-R, that arise from or relate to the Claims. 

B. Chung's Releases. 

Effective simultaneously with the release granted in Section III.A. above, Chung, 

on behalf of herself and her respective heirs, executors, trustees, administrators, agents, 

representatives, attorneys, successors, and assigns, hereby releases and discharges the FDIC~R, 

and its employees, officers, directors, representatives, attorneys, successors and assigns, from 

any and all claims, demands, obligations, damages, actions, and causes of action, direct or 

indirect, in law or in equity, that arise from or relate to the Claims. 

C. Exceptions from Releases by FDIC-R. 

I. Notwithstanding any other provision of this Agreement, the FDIC-R docs 

not release, and expressly preserves fully and to the same extent as if this Agrccmcnl had not 

been executed, any claims or causes of action: 

a. Against Chung or any utlwr person or entity fur liability, if any, 

incurred as the maker, endorser or guarantor of any other promissory note or indebtedness 

payable or owed by them to FDIC-R, the Bank, other financial institutions, or any other person 

or entity, including without limitation any :o;uch claims acquired by FDIC-R as successor in 

interest to the Dank or any person or entity other than Dank; and 

b. Against any person or entity not expressly released by the FDIC-R 

in this Agreement. 

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2. Notwithstanding any other provision of this Agreement, nothing in this 

Agreement shall be construed or interpreted as limiting, waiving, releasing, or compromising th~ 

jurisdiction and authority of the Federal Deposit Insurance Corporation in the exercise of its 

supervisory or regulatory authority or to diminish its ability to institute administrative 

enforcement or other proceedings seeking removal, prohibition, or any other relief it is 

authorized to seek pursuant to its supervisory or regulatory authority against any person. 

3. Notwithstanding any other provision of this Agreement, this Agreement 

does not purport to waive, or intend to waive, any claims that could he brought by the United 

States through the Dcpa11mcnt of Justice, the United States Attorney's Office for any federal 

judicial district, or any other department or agency ofthe United States as ddined by 18 U.S.C. § 

6. In addition, the FDIC-R specifically reserves the right to seck cuurt·ordel'ed restitution 

pursuant to the relevant provisions of the Mandatory Victims Restitution Act, 18 U.S.C. §§ 3322 

and 3663 ct. seq., if appropriate. 

SECTION III: Representations and Acknowledgements 

A. Authori:t.ed Signatories. All of the undersigned persons represent and warrant that 

they arc Parties hereto or are authorized to sign this Agreement on behalf of the respective Party, 

and that they have the full power and authority to bind such Party to each and every provision of 

this Agreement. This Agreement shall be binding upon and inure to the benefit of the 

undersigned Patties and their respective heirs, executors, trustees, administrators, representatives, 

successors and assigns. 

U. Advice of CounseL Each Party hereby ttcknowlctlgc~ that he, she, or it has 

consulted with and obtained the advice of counsel prior to executing this Agreement, and that 

this Agreement has been explained to that Party by hi:l or her counsel. 

C. Financial Disclosure Representation. Chung has submitted 1immcial infi.mnation to the 

FDIC·R and herein afTirms that her financial infonnation is true and :~ccuratc as of the date it 

was submitted to the FDIC-R. Chung ~::xprcssly acknowledges that, in determining to settle the 

Claims released herein, the FOIC-R has reasonably and justifiably rt.:licd upon the accuracy of 

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the financial information submitted by Chung. The FDIC-R has no obligation to independently 

vecity the completeness or accuracy of that financial infonnation. If the FDIC-R establishes via 

a final adjudication in an appropriate jud icial forum that Chung failed to disclose any material 

interest, legal, equitable, or beneficial, in any asset, Chung agrees to cooperate fully with the 

FDIC-R to provide updated financial infonnation and to pay to the FDIC-R the lesser uf (1) the 

value of Chung's undisclosed material interest in such assct(s ); or (2) the amount of unpaid 

damages alleged against Chung. 

SRCTION IV: Reasonable Cooperation 

The Parties agree to cooperate in good faith to etl'ecruate all the terms and conditions of 

this Agreement, including doing, or causing their agents and attorneys to do, whatever is 

reasonably necessary to eiTectuate the signing, eli ~ry and execution of any documents 

ncc.cssary to conclude the Claims and to otherwise perform the terms of this Agreement. 

SECTION V: Other Matters 

A. No Admission of Liability. The undersigned Parties each acknowlcugc and agree 

that the matters set forth in this Agreement constitute the scttl cmcrit and compromise of disputed 

claims and defenses, that this Agreement is not an admission or evidence of liability or infirmity 

by either of them regarding any claim or defense. 

B. Execl!.ti5m in Counterparts. This Agreement may be executed in counterpat1s by 

one or more of the Putties and all such counterparts when so executed l1 together constitute 

the final Agreement, as if one document had been signed hy all Pa1ties; and each such 

counterpart, upon execution and delivery, shall he deemed a complt!te original, binding the 

Parties subscribed thereto upon the execution by all Parties to this Agreement. 

C. Choice of Law. This Agreement shall be interpreted, construed and enforced 

according to applicable federal law, or in its absence, the laws of the State of California. 

D. Noti_C.!;fi. Any notices required hereunder shttl l he sent by registered mail, first 

class, return receipt requested, and by e-mail, to tht: following: 

Tfto the FIHC-R: Jennifer B. Goosenberg, Esq.; Mortgage Rt:covt:ry Law Group LLP, 

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700 N. Bra.nd Blvd., Suite 830, Glendale, CA 91203; telephone: (818) 630-7900; e-mail: 

(b )(6) --1:::::::::======----_j 

.If to Chung; Kenm:th White, Esq.; Brown White & Osborn LLP, 333 South Hope Street, 

401h Floor, Los Angeles, CA 90071; telephone; (213) 613-0500; e"mail: 

(b)(6) I ........................................... ························ .............. _ ...... _ ...... _. ________ _, 

E. Entire Agreement and Amendments_. This Agreement constitutes the entire 

agreement and understanding between and among the undersigned Parties concerning the matters 

set forth herein and supersedes any prior agreements or understandings. This Agreement may 

not be amemlcd oc modified, nor may any of its provisions be waived, except in wriiing signed 

by the Parties bound thereby, or by their respective authorized attorney(s), or other 

representative(s). 

F. Titles and Captions. AU section titles and captions contained in this Agreement 

arc for convenience only and shall not affect the interpretation of this Agreement. 

G. No Confidentiality. lbe undersigned Parties acknowledge that this Agreement 

shall not be confidential and will be disclosed pursuant to the Federal Deposit Insurance 

Corporation's applicable policies, procedures, and other legal requirements. 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by 

each of them Ol' their duly authorized representatives on the dates hereinafter subscribed. 

Date: ... .• tr+~ ~:1 

FEDERAL DEPOSIT INSURANCE CORPORA TJON AS 

:~RIVER TR COLONIA~ BANK 

'J'[TLE: U'-""' lr' \ 

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