Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Regions Bank v. The Fausz Group Co.

United States District Court, S.D. Illinois

March 28, 2018

REGIONS BANK, an Alabama bank Plaintiff,
v.
THE FAUSZ GROUP CO., et al., Defendants

          ORDER APPOINTING RECEIVER AND GRANTING INJUNCTIVE RELIEF

          HERNDON, UNITED STATES DISTRICT JUDGE

         Pending before the Court is Plaintiff's Motion for Appointment of a Receiver (doc. 28). Having considered the motion, together with the Affidavit of Stephen L. Quick, the Affidavit of George Rissmann, and the record as a whole, the Court finds as follows:

         FINDINGS OF FACT

         1. On or about February 9, 2015, Defendants, ARay, Inc. and The Fausz Group Co., as co-borrowers, signed and delivered to Plaintiff in St. Louis, Missouri, a certain Note (“First Note”) payable in the original amount of Two Million Six Hundred Thirty-Eight Thousand Six Hundred Dollars ($2, 638, 600.00).

         2. On or about February 9, 2015, Raymond G. Fausz, Jr. and Annette M. Fausz (“Individual Defendants”) signed and delivered to Plaintiff their Unconditional Guarantees (“First Guarantees”) of the First Note.

         3. On or about February 9, 2015, Defendant, The Fausz Group Co., signed and delivered to Plaintiff a certain Note (“Second Note”) payable in the principal amount of Three Hundred Fifty Thousand Dollars ($350, 000.00).

         4. On or about February 9, 2015, the Individual Defendants signed and delivered to Plaintiff their Unconditional Guarantees (“Second Guarantees”) of the Second Note.

         5. On or about February 9, 2015, the Individual Defendants signed and delivered to Plaintiff their Mortgage, Assignment of Rents and Leases, and Security Agreement, encumbering the unimproved property commonly known and numbered as 315 Madison, Red Bud, Illinois and more fully described as follows:

Part of the Northwest Quarter of the Southwest Quarter of Section 4, in Township 4 South, Range 8 West of the Third Principal Meridian, Randolph County, Illinois, more particularly described as follows:
Beginning at an iron pin on the West line of Madison Street, (50 feet wide) said pin being 50 feet West and 10 feet South of the Southwest corner of Lot 7 of Block “F” of Charles Phillips' First Addition to the City of Red Bud as recorded in Plat Book “B” at Page 30 of the Randolph County Records; thence Southerly along said West line of Madison Street 65 feet to an iron pin; thence Westerly with a deflection angle of 90 degrees 09 minutes 45 seconds parallel with the South line of said Block “F”, 140 feet to an iron pin; thence Northerly with a deflection angle of 89 degrees 50 minutes 15 seconds parallel with said West line of Madison Street, 65 feet to an iron pin; thence Easterly with a deflection angle of 90 degrees 09 minutes 45 seconds parallel with said South line of Block “F”, 140 feet to the point of beginning.

PIN: 13-117-016.00

         6. The said Mortgage was recorded in the Records of Randolph County, Illinois on February 13, 2015 as Document No. 2015R00492.

         7. On or about February 9, 2015, the Individual Defendants signed and delivered to Plaintiff their Mortgage, Assignment of Rents and Leases, and Security Agreement, encumbering the residential property commonly known and numbered as 207 Flower St., Waterloo, Illinois, and more fully described as follows:

Lot No. 5 of Block 15 of Trail's resurvey of Block 16 of Martin's addition to the Town (now City) of Waterloo, Monroe County, Illinois, situated in the City of Waterloo, County of Monroe and State of Illinois.

PIN: 07-25-203-020

         8. The said Mortgage was recorded in the Records of Monroe County, Illinois on February 12, 2015 as Document No. 375472.

         9. On or about February 9, 2015, the Individual Defendants signed and delivered to Plaintiff their Mortgage, Assignment of Rents and Leases, and Security Agreement, encumbering the residential property commonly known and numbered as 502 Walnut St., Waterloo, Illinois, and more fully described as follows:

Part of Tax Lot 1-S as shown by Plat in Surveyor's Official Plat Record “A” of Town Lots on Page 54, and part of a tract of land previously conveyed to Robert A. Schaeffer in the City of Waterloo as shown by Deed recorded in the Recorder's Office of Monroe County in Deed Record 92 on Page 268 more particularly described as follows:
Commencing at the Old Pipe which marks the point of intersection of the Southerly Right-of-Way Line of Walnut Street with the Easterly Right-of-Way Line of Moore Street, said pipe being the Northwest Corner of Tax Lot 1-H and the Northeast Corner of Tax Lot 1-HP; thence at an assumed bearing of South 3 degrees-30 minutes-00 seconds East, along the West Line of said Tax Lot 1-H, a distance of 159.73 feet to an old pipe which marks the Point of Beginning of the herein described tract of land; thence continuing South 3 degrees-30 minutes-00 seconds East, a distance of 200.27 feet to an iron bar, thence due West, a distance of 56.75 feet to an iron bar which lies on the Easterly Right-of-Way Line of the Gulf, Mobile and Ohio Railroad; thence North 24 degrees-42 minutes-00 seconds West, along said Easterly Right-of-Way Line of the Gulf, Mobile and Ohio Railroad along the chord of a curve a distance of 220.61 feet to an iron bar; thence South 89 degrees-46 minutes-30 seconds East, a distance of 136.70 feet to the Point of Beginning; containing 0.444 acres, more or less.
Subject to an easement for ingress and egress on, over, and across the following tract of land: A 15 foot wide tract of land lying parallel and adjacent to and fifteen feet Easterly of the Easterly Right-of-Way line of the Gulf, Mobile and Ohio Railroad and extending from the Northerly line of the above described tract of land and Northwesterly to the South Right-of-Way line of Walnut Street.

PIN: 07-25-336-003

         10. The said Mortgage was recorded in the Records of Monroe County, Illinois on February 12, 2015 as Document No. 375473.

         11. On or about February 9, 2015, ARay, Inc. signed and delivered to Plaintiff its Mortgage, Assignment of Rents and Leases, and Security Agreement, encumbering the residential property commonly known and numbered as 421 S. Main St., Waterloo, Illinois, and more fully described as follows:

Commencing at the Northwest Corner of Main and Elm Streets in the City of Waterloo, Illinois, thence Northwestwardly with the West Line of Main Street Forty-One (41) feet and Six (6) inches for a beginning point, thence continuing Northwestwardly Forty (40) feet, more or less, to the Southeast Corner of Lot formerly owned by H. Middendorf, thence Westwardly with South Line of said Middendorf's Lot One Hundred Twenty-Five (125) feet, more or less, thence Southeastwardly with the East Line of Lot No. One (1) of Block No. Seven (7) of Rose and O'Melveny's Addition, Fifty-Nine (59) feet and Six (6) inches to a post, thence Eastwardly parallel with the North Line of Elm Street One Hundred Twenty-Five (125) feet, more or less, to the place of beginning; also known and designated as Tax Lot 3-A of South Oulots in Section 25, Township 2 South, Range 10 West of the 3rd P.M., in the City of Waterloo, Monroe County, Illinois, as shown by Page 9 of Surveyor's Official Plat Record “A” (Town Lots) of Monroe County, Illinois Records.

PIN: 07-25-433-013

         12. The said Mortgage was recorded in the Records of Monroe County, Illinois on February 12, 2015 as Document No. 375471.

         13. On or about February 9, 2015, ARay, Inc. signed and delivered to Plaintiff its Mortgage, Assignment of Rents and Leases, and Security Agreement, encumbering the residential property commonly known and numbered as 1 Richard St., Waterloo, Illinois, and more fully described as follows:

Lot 29 of “Lou-Del, Addition”, a subdivision of part of Tax Lot No. 3 of Survey 721, CL 507 in Township 2 South, Range 10, West of the Third Principal Meridian, Monroe County, Illinois, reference being had to the Plat thereof recorded in the Recorder's Office of Monroe County, Illinois, in Book of Plats “B” on Page 124

PIN: 07-13-153-006

         14. The said Mortgage was recorded in the Records of Monroe County, Illinois on February 12, 2015 as Document No. 375470.

         15. The Mortgages secure the obligations of ARay, Inc. and The Fausz Group Co. on the notes described above and further secure the obligations of the Individual Defendants on the guarantees described above.

         16. On or about January 20, 2017, Plaintiff notified all Defendants that they had defaulted and that Plaintiff had accelerated the remaining amounts due and owing under the Notes described above. Plaintiff demanded payment in full.

         17. On or about February 9, 2015, ARay, Inc. and the Individual Defendants signed and delivered to Plaintiff two Agreements to Provide Insurance, which together apply to all the properties described above.

         18. Defendants are in default in their payment and other obligations under the promissory notes, mortgages, and agreements described above. The balance due to Regions Bank on the foregoing notes in the aggregate (without including attorneys' fees and expenses) was $3, 173, 478.01 as of June 23, 2017.

         19. Defendants are currently in possession of the properties described in the Mortgages mentioned above. The properties have not been occupied since February 9, 2015 when the Mortgages were granted to Regions Bank.

         20. Although the four residential properties described above were acquired over a period of time beginning in the 1980's, Defendants have not completed the contemplated rehabilitation and remodeling of three out of the four residences. All four ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.