capital one, national association vs. jacob frydman - copy

7/23/2019 Capital One, National Association vs. Jacob Frydman - Copy

1/20

CAPITAL ONE, NATIONAL ASSOCIATION,

Plaintif,

- against -

JACOB FRYDMAN

Deendant

JUDGECROTTY

Carla R. Walworth (CW-5401)

Cynthia A. Curtin

PAUL, HASTI!S,

"A#$S%& ' WAL% LLP*5 a+t 55th Strt

w &or, w &or

Tlhon/ 1-12-3000

$a+iil/ 1-16-4060

arlawalworth7aulha+tin8+.o

ynthiaurtin7aulha+tin8+.o

UIT9 STATS 9ISTICT C#UT

S#UTH 9ISTICT #$ W %

CV 2231

:.

Ci;il Ation o.

Colaint

COMPLAINT

Caital #n, ational A++oiation,an (?$ry>an?), un>r a

r>it aount a8rnt an> 8uaranty. $ry>an ony an>ri;> othr

=inanial aoo>ation+ =ro Caital #n, an> $ry>an roi+> to ayrtain aount+,
mailto:[email protected]:[email protected]:[email protected]:[email protected]


2/20

inlu>in8 rinial an> intr+t, totalin8 B*0,141.*5, on th on>ition+ +t


3/20

; r

=orth thrin. In a>>ition, in or>r to in>u Caital #n to tn> or ontinu to tn> r>it or

othr =inanial aoo>ation+, $ry>an ut> a 8uaranty unon>itionally 8uarantin8 hi+

oan ha+ >=ault> on hi+ o> $ry>an with a 9an> Lttr noti=yin8 hi o= hi+ >=ault, $ry>an ha+ not

ai> Caital #n th out+tan>in8 . Thr=or, Caital #n to it an .

Parties

. Plainti== Caital #n i+ a national into Caital #n, .A. on or a ant an> Intrla>r 9=n>ant "aoan (?$ry>an?) i+

a w &or r+i>nt, r+i>in8 at 40 $ulton Strt, $loor 3, w &or,& 1002.

Jurisdiction and Venue

4. Thi+ Court ha+ Euri+>ition o;r th +u+ B*5,000.00 lu+i; o= intr+t an> o+t+.

5. Dnu in thi+ 9i+trit i+ ror un>r 2 U.S.C. F 161 an

i+ +uition in thi+ 9i+trit an> th ;nt+ at i++u ourr> in thi+ ;nu.

Thu+ ;nu i+ not inon;nint =or th arti+.


4/20

Count 1

(reac! o" Contract Under t!e Restated E#ite A$ree%ent and t!e E#ite Guarant& A$ainst

De"endant 'r&d%an

) T!e Restated E#ite A$ree%ent

3. #n or aan, Caital #n a8r> to a a;ailaan a lino= r>it u to th

a88r8at aount o= B100,000.00 a+ ;i>n> it Aount A8rnt,

>at> #to hrto a+

hi


5/20

thrin (orth $orK+ ri rat lu+ 1.0), lu+ (>) lat har8+ an> () any unai> rior

iniu aynt. hilit A8rnt ,

uon an ;nt o= >=ault, a+ r+ri in th +tat> lit A8rnt (th?+tat> lit

A8rnt ;nt+ o= 9=ault?), th @an ay >lar th ntir unai> u an>

ayalar th ntir

unai> u an> aya lit A8rnt whn >u, or =ailur to ha; +u==iint

=un>+ in th >an> >o+it aount to rit autoati >u (ii) =ailur to

a any othr aynt to th @an whn >u an> (iii) th ourrn o= >=ault un>r any

in+trunt or a8rnt, whthr >irt or ontin8nt, =or th aynt o= ony. hi lit A8rnt, =ro an> a=tr th

ourrn o= an ;nt o= 9=ault, th intr+t rat aya lit A8rnt. hi lit A8rnt, i= thr ar

in+u==iint =un>+ in th >an> >o+it aount, or a iniu onthly

aynt i+ not ai> whn >u, $ry>an will ay a lat har8+ o= =our rnt (4) o= th

aynt >u lu+ th aliara=t har8. hi


6/20

14. In or>r to in>u lainti== i+rtion, to

tn> or ontinu r>it or othr =inanial aoo>ation+ to $ry>an, >=n>ant $ry>an

ut> an> >li;r> to th @an that rtain !uaranty >at> "uly 16, 004 (th ?lit

!uaranty?), in onntion with an lit Plu+ Cr>it Aliation. Th lit !uaranty

unon>itionally 8uarant> th aynt oan to lainti== @an, inlu>in8 to loan+, intr+t, lat har8, =+ an> attornyK+ =+. A oy o= th lit !uaranty

i+ attah> hrto a+ hian ha+ >=ault> an> rain+ in >=ault o= th

ou un>r th +tat> lit A8rnt, inlu>in8

to, all intr+t an> a++oiat> oi++ion+, =+, n++ an> o+t+. @y lttr

>at> o; a >an> =or aynt on $ry>an =or th

aount+ owin8 un>r th +tat> lit A8rnt an> th lit !uaranty (th ?lit 9an>

Lttr?). Pur+uant to th lit 9an> Lttr, lainti== @an >lar> th ntir unai> intr+t, an> all othr aount+ ayar th +tat> lit A8rnt

i>iatly >u an> aya Lttr i+ attah> hrto a+ hi


7/20

I f

C) reac! o" t!e Restated E#ite A$ree%ent and t!e E#ite Guarant&

1*. To >at, $ry>an ha+ not ai> th out+tan>in8 rinial lit

A8rnt.

12. $ry>an ha+ th +tat> lit A8rnt, =or tho+ ra+on+ +tat> ain8

to th =ailur to oly with th or th +tat> lit

A8rnt to ay to Caital #n th =ull aount o= th unai> rinial in th aount o= B*0,

141.*5 to8thr with intr+t an> all a++oiat> oi++ion+, =+, n++,

an> o+t+, whih u an> ayaan> =ro Caital #n. A +h>ul +howin8 th

alulation o= th aount+ o= rinial, intr+t an> lat har8+ >u a+ o= arh 1, 011 un>r

th +tat> lit A8rnt i+ attah> hrto a+ hianK + in >aa8+ to Caital #n in anaount to trin> at trial, whih i+ =ar in ++ o= th Euri+>itional aount o= thi+ Court.

0. Pur+uant to th ara8rah ?Colltion Co+t+? o= th +tat> litA8rnt, $ry>an a8r>

to ay th @anK+ attornyK+ =+ in th ;nt that th @an rtain+

oun+l with r+t to n=ornt o= th +tat> lit A8rnt.

1. Caital #n ha+ inurr> an> ontinu+ to inur o+t+ an> n++,inlu>in8 =+ an>

>i+ out+i> oun+l, to n=or th or th

A8rnt.

3


8/20

*1+*!

a rall8+ ah an> ;ry all8ation a+ +t =orth

aanK+ on>ut a+ +t =orth aan ha+ .

*


9/20

6. Caital #n i+ ntitl> to ro;ry un>r th >otrin+ o= ua+i-ontrat, uantu ruit an>

unEu+t nrihnt.

2ERE'ORE+ Plainti== Caital #n r+t=ully ru+t+ that thi+ Court ntr

Eu>8nt in it+ =a;or an> a8ain+t $ry>an a+ =ollow+/

(a) #n th $ir+t Count, a Eu>8nt a8ain+t $ry>an in th aount to

trin> at trial, inlu>in8 all >aa8+ +u+tain>, ri8ht+ an> r>i+ a;aila>

un>r th +tat> lit A8rnt an> th lit !uaranty, o+t+ an> n++ inurr> in thi+

ation, inlu>in8 attornyK+ =+, an> any othr n++, an> all intr+t on th >aa8+

+u+tain> a+ a r+ult o= th n++ aliar th

+tat> lit A8rnt an> th lit !uaranty, an> rlat> >ount+ an> on all attornyK+

=+ inurr> in n=orin8 it+ ri8ht+ a+ +t =orth thrin

( Count, a Eu>8nt a8ain+t $ry>an in th aount

to trin> at trial, inlu>in8 all >aa8+ +u+tain>, ri8ht+ an> r>i+, ra+ona n++ inurr> in thi+ ation, inlu>in8 attornyK+ =+, an> any othr n++

() #n th Thir> Count, a Eu>8nt a8ain+t $ry>an in th aount to

trin> at trial, inlu>in8 all >aa8+ +u+tain>, ri8ht+ an> r>i+, ra+ona

n++ inurr> in thi+ ation, inlu>in8 attornyK+ =+, an> any othr n++

(>) Th o+t+ an> >i+

2


10/20

() Awar>in8 Caital #n +uh othr an> =urthr rli= a+ th Court

ay > Eu+t an> ror un>r th iru+tan+.

9


11/20

9at>/ w &or, w &orarh 1, 011

L!ALNUSN O 626556.1

*5 a+t 55th Strt w

&or, w &or

Tlhon/ 1-12-3000

$a+iil/ 1-16-4060

arlawalworth7aulha+tin8+.o

ynthiaurtin7aulha+tin8+.o

ATT#&S $# PLAITI$$ CAPITAL #,

ATI#AL ASS#CIATI#

10
mailto:[email protected]:[email protected]:[email protected]:[email protected]


12/20

0759022881

Aount o./ *560221a/ "ao< $ry>an

A>>r++/ 111$ulton Strtw &or, & 1002

#TH $#% @A%STAT9 LIT PLUS C9IT ACC#UT A!T

9at/ #toit Liit/ Sl00,000.00

9an> 9o+it Aount o./ 60540002

9$IITI#S/

Th wor>+ ?you? an> ?yowKK an ah an> allr+on+ who +u th aliation =orth aount an>who arit Aount A8rnt.Th wor> ?th @an? an+ orth $or @an it++u++or+ an> a++i8n+. Th wor> ?A8rnt? meausthi+ lit Cr>it AountAnt. Thwor>?LoanAount? an+ th lit Cr>it Loan Aount+ta ur+uant to th termso=thisA8rnt.

$$CT #$ USI! L#A ACC#UT/

Whn you u+ thi+ aount, you ar a8rin8 to an>will ition+ o= thi+A8rnt. &ou rti=y that all in=oration you 8a;th @anl to o

orrt. ah r+on who +i8n> th aliation =orthi+ aoUlt will i;i>ually an> Eointlyr+on+iu on th LoanAount.

TH#9 #$ US A9 LIITATI#S/

Th @an will +uly you with lit Cr>it Aount>ra=t+. So lon8 a+ no ;nt o= 9=ault, a+ >=in>hrin, an> this A8rnt ha+ not , youay oit liit ra=t+ on th Loan Aount. Draftsu+t thn o+it> to your >an> >o+it aountin>iat> ara=t+ at no har8. &ou u+t ay =or >ra=t+ in++ o= twl; (1). &ou u+t ay a fee o= B150.00

r yar =or ah yar orart o= a yar this A8rnti+ in ==t.

AQIU C9IT/

&our r>it liit is +hown a will you.&ou ar not ritt> to > your r>it liit. Th@an ay han8 your r>it liit u or >own at anytira=t whih woul> au+ th unai> rinial your r>it liit, the@an ay ithr r=u+ to honor your >ra=t or ayhonor your >ra=t an> al you a loan in ++ o=your r>it liit. Any+uh loan to8thr with intr+tu+ti>iatly uon >an> o= th @an.

P#IS T# PA&/

&ou roi+ to ay to th or>r o= th @an allaount+ ow> un>r thi+ A8rnt, lu+ intr+t,olltion o+t+, (inlu>in8, without liitin8 attorny=+ ritt> un>r thi+ a8rnt) an> all othraount+ >u. Paynt will a+ +t =orth inthi+A8rnt.

PI#9IC STATT/

ah onth th @an will +n> you a +tatnt onyour lit Cr>it Aount. Thi+ +tatnt will li+t alltran+ation+ that you a> in th Loan Aount >urin8the r;iou+ onth. It will +how what you ha;

, what you ha; rai>, it+ r>it> an>> an> whatyou ow (nw toay+ o= th +tatnt >at.

TH#9 #$ PA&T/

Th?iniu onthlyaynt?(a+>=in>hrin)will =ro your >an> >o+it aount with th@anwhn>u. &oua8rtoha;+u==iint=un>+in.your>an> >o+it aount to nnit +uh >ra=t. &our?iniu onthlyaynt?i+ ual to th sum o= (a) lJ301h o= th unai>rinial o= th +tatntrio>or B00, whih;r i+8ratr,lu+(o;r your r>it liit, lu+ () all intr+t >u a+

out> R all lat har8+,lu+ () anyunai> rior iniu aynt. otwith+tan>in8 th=or8oin8, you ayay th ntir aount ow> (lu+intr+t to th>ato=aynt) in=ullatanyti.

PA&T - TI A9 APPLICATI#/

Thr u+t + in your >an> >o+itaount +o that th minimumaynt ay

ay o= ah onth. Thi+ i+ th?aynt >u >at?. ah onthK+ aynt will in th =ollowin8 or>r/ (1) Intr+t ()Prinial () Lathar8+ an> othr =+. &ou ay ar-aynt+ at any time in whol or in art.Praynt+ will =ir+t to rinial, nllt tointr+t, an> th rain>r to lathar8+.

LATCHA!S/If there ar in+u==iint =un>+ in your >an> >o+itaount to al th ruir> minimum onthly ayntwhn >u, you will ay a lat = o= 4 o= th aynt

>ulu+ th aliara=t har8.ITST AT/

Intr+t i+aya a+ an> whn +uh Priathan8+. Th @anK+ Pri at i+ not n++arilyth low+t rat har8> to it+ u+tor+ an> nothin8hrin+hall r;nt th @an =ro ln>in8 at l++ thanit+ Pri at. Intr+t +hall on a >aily

aily +hall an> a 30- >ay yar. $ro an> a=tr thourrn o= an ;nt o=9=ault hrun>r, th intr+trat ayar +hallbe inra+> +o that th intr+t orothr loan har8+ ollt> or to inonntion with your Loan AoUlt ll> th ritt>liit+, thn (i) any +uh loan har8+ +hall u> u th har8+ to th

ritt> liit an> ii! any +u+ aha>y ollt>whih>> ritt> liit+ will >. &ouayhoo+ to ta this r=un> utionin thrinial ow> un>r thi+ A8rnt or irt

alu+un+o.>oo 6J01


13/20

aynt. I= a r=un> r>u+ rinial, th r>ution will a+ a artial aynt.

CHA!S I ITST AT/

Th intr+t rat +t =orth aay+ writtn noti to you. Any han8 williatly an> will aly to all aount+thn out+tan>in8an> any aowit+ inurr> thra=tr.

TI @ALAC 9UJ9$AULT/

&ou will =ault, an> th @an n> not rit any=urthr >raw+ a8ain+t your Loan Aount an> ay ruirthat you ay ;rythin8 that you ow to it i= on or oro=th =ollowin8 our (ah +uh ;nt to

a+an ?;nt o= 9=ault?)/ (1) &ou =ail to a anyayntruir> hrun>r whn >u or =ail to ha;

+u==iint=un>+ in your >an> >o+it aount to nnitautoati>u () you or any

8uarantor =ail to a any othr aynt to th @anwhn >u () you orany 8uarantor >=ault un>r any

in+trunt or a8rnt,whthr >irt or ontin8nt, =ortheaynt o= ony (4)you =ail to oly with any

othr tnn, o;nant, oron>ition onta> inthi+ A8rnt (5) any

rr+ntation or warranty a> in thi+ A8rnt or anyin+trunt, >ount, or rti=iat, =urni+h> in8 (3) a tition in in8

i+ on> i++olution, liui>ation, oo+ition, or

arran8nt or thaointnt o= a ri;r (2) you orany 8uarantor a>itin writin8 an inaition in a annr inwhih th @an ra+onaiial or a>ini+trati;

>tnnination ruirin8 th aynt o=ony i+ ntr>a8ain+t you or any 8uarantor, ( 10) th 8uaranty o= any

8uarantor tnninat+ or is U11Cn=orai+ (11) your a++t+ ortho+ o= any

8uarantor ar l>8> or oriair> +uhthat th @an i+(1) you orany 8uarantor =ail to =urni+h any =inanialin=onnation or=inanial +tatnt+ to th @an or =ailto rit anin+tion o= + or rorty o+it+ an> loan+(13) you =ail toay any ta a++++nt whn >u or(1*) th @anlt >trin+ in 8oo> =aith that it will not hrwi>r aor>in8 to th tr+ o= thi+A8rnt.

C#DATSIPSlTATI#SJW AATIS

&ou hr warrant a+=ollow+(whih rr+ntation+ an> warranti+ ar trua+ o= th>at hro= an> +hall at o=any >ra=ta8ain+t th Loan Aount)/ (a) uon ru+tyou will =urni+h th @an a oy o= your r+onal=inanial +tatnt, a+ wll a+ th r+onal =inanial+tatnt+ o= th 8uarantor+, all in =or an$ +u throu8hout th tr o= thi+ A8rnt () youha; =ull owr an> authority to ntr into thi+A8rnt, an> nothin8 in thi+ A8rnt ontra;n+any law, r8ulation, ) thi+ A8rnt on+titut+ your ;ali>an> l8ally in8 oan with it+

tr+ an> ha+ in8 nor, to th8, any thratn> ation+ or ro>in8+

ini+trati; a8ny whih, i=>tnnin> a8ain+t you, (or any 8uarantor) woul>ha; aatrial a>;r+ ==t on your (or any 8uarantorK+)=inanial on>ition, oration+, or a in=onnation =urni+h> all+uarantor+ ar tru an> aurat in all atrialr+t+ (8) you will aintain your &rin'i&al >an>>o+it aount with th@an (h! you will youra++t+ in+ur> a8ain+t th=tan> >+trution (i) you will

nnit th @an to ainyour ror>+, an>au>it your in;ntory.

RI)*" #$ #$$ST/

Uon th ourrn o= an ;nt o= 9=ault, th @anay ta any aount you ha; on >o+it with it orany a==iliat o= th @an an> aly it towar> thaount >u without liitin8 th =or8o8, th @anay ri+ any an> all ri8ht+ o= o==+t it ay ha;

ur+uant to +tatut an> onunonlaw.SCUIT& ITST/

As ollatral +urity =or all o= your olia lin on th =ollowin8 rorty/Allony or othr rorty in th @anK+ o++++ion,whthrnow hl> or latr oin8 into th @anK+

o++++ionwhthr on >o+it or in +a=in8,u+to>y, l>8,tran+i++ion, olltion or othrwi+=or your aount or toyour r>it or in8 to allro>+,ro>ut+, rlant+, rnwal+,+u+, r+nt or =utur, withr+t to th =or8oin8,(all o= whih rorty a ?CollatralSurity?). &our oliain8, to,aount+ >u un>r thi+ A8rnt whthr thyalra>yi+t, ar inurr> at thi+ ti, or ar inurr> inth=utur, whthr thy ar >irt or in>irt, whthr thy

ar a orun+ur>, whthr tliy ar atur> or unatur>,whthr thr wr inurr> with th @an or othr+ an> ar now or latrowin8 to th @an.

9IS U9 9$AULT/

Uon th ourrn o= an ;nt o= 9=ault th @an+hallha; in a>>ition to any othr ri8ht or r>y

8rant> un>rthi+ A8rnt or artyun>r th Uni=or Corial Co>.

All ri8ht+ an>r>i+ o= th @an +hall not

utuallylu+i; an> ay r>i++hall al+o inlu>,+i8n an# or all o= th Collatral

Surity inlu>in8+to, + an> othr +uriti+an> th @an or itll>+i8n+ ay >an>, +u =or,

ollt, r+r;, an> hol>a+ li Collatral Surity any

or all intr+t. >i;i>n>+ an>alu+un+.>o 6J01


14/20

... ..ino thr=ro an> ri+ all ;otin8 an> othrri8ht+ with r+t thrto (an> aynt-o( rot+t, or ta any+t+ tor+r;any ri8ht+ in +uh Collatral Surity,all o= whih rainyour o ay+noti inary ail +hall > ra+ona.1 a>;i+a) th @an +hallha; th ri8ht to an> urha+ at any +uh+al ()th ro>+ o= any +uh +al +hall =ir+t be ali> toth o+t+, n++, an> attorny =+ in onntion withth +al, an$ th rain>r to th Liatrin (=) you an> any8uarantor an> any othr o not liui>atCollatralSurity an> ro; +a,(i) you will a++ ait a;aila ti a+ th@an ay >+i8nat (j! th @an ay noti=y anyaount >lin8 o= th LoanAountan> your r>it on a rio>i uon th r;iw, th @an ay>ra+ or tnninat th Loan Aount an$ this

A8rnt.ISCLLA#US/

(a) &ou a8r that a iro=il or othr hoto8rahi oyo= an in+trunt or >onnt u+> in onntion withth lit Cr>it Aount will +tait rort oron+urrort an> to ri;, oitin=oration on you an> any 8uarantor. Th willtllyou uon ru+t whthr or not a on+ur rortwa+ rort>, an>, i= +o, th name an> a>>r++ o= thon+ur rortin8 a8ny () you a8r that th@an ay at lat or artial aynt+, a+ wll a+

aynt+ that ar ar> ?ai> in =ull? or ontainothr r+triti; n>or+nt+, without lo+in8 anyri8ht+ un>r thiA8rnt (>) you a8r not to >rawon th Loan Aount t itAount $raftsro;i>> it Aount an> h rlat> +r;i+

a44or to th @anK+ +h>ul o= =+, a+ an>>=ro ti to ti (=) you a8r that thi+ A8rnt+hall to it+

A8rnt i+ anl>, you u+t +till ay th @anwhat you ow. In th ;nt o= anllation, you ayno lon8rwrit >ra=t+ a8ain+t th Loan Aount. If no;nt o=9=ault ha+ ourr> or our+, you ay ayth aount>u hrun>r itiono= th Court o= th Stat o= w &or an$;nu in Su==ol County, w &or (h) you an> th@an wai; th ri8ht to trial an>, r+ntnt, an>rot+t )! you wai; all >=n++, ri8ht+ to +to== an$ th

on+i+tin8 o= lJ3th o= th rinial in8atth time o= anllation lu+ intr+t at th rat o= th@anK+ Pri at lu+ 1J &er annu, a>Eu+t> a+an>whn th @anK+ Pri at han8+ on thunai> or tnninat> orally an>

aount.

C#LLCTI# C#STS/If you >o not ay th @an what you ow an> the@an +n>+ th attr to an attoy =or olltion,thn youa8r to ay a ra+ona, lu+ ourt o+t+ an> >i+r thi+ A8rnt(n) i= this Aw.nt ali+ to more than on o= you,noti to on will r> noti to all o= you(o) you a8rthat you ha; ri;> th =ully olt> oy o= thi+

ourt, or

othrwi+.

rain>r +hall remain in =ull =or an$ ==t.Ir8ar>l++ o= whthr an ation i+ 'ommen'e$ an$, if+o,whthr in the trial ourt, allat ourt, ha; ra> it an$ =ully un>r+tan> it () ifany ro;i+ion o= thi+ A8rnt i+ unn=orao+ not 8i; u any o= it+ ri8ht+ not 8i; anyon noti o= any wai;r,>lay or rla+. &our o tho+ o= any8uarantor+ ar not a==t> in8 or o>i=yin8 any or.

CHA!S/

Th @an ay han8 thi+ A8rnt at any ti. I=it >o+,you will>r++ +hownin it+ ror>+. Unl++ you tll th @an in writin8 toanl thi+Ant within =i=tn (15) >ay+ a=tr th@anK+ tran+nu++ion o= noti, all han8+ willo 6J01

@anA


15/20

..

#TH $#% @A%STAT9 LIT PLUS C9IT ACC#UT A!T

Aounto./ *560221a/ "AC#@$&9AA>>r++/ 209#AL99)ID(HASTI!S # HU9S#, & 10*03

9$IITI#S/Th wor>+ KKyou? an> ?your? an ah an> all r+on+who +u th aliation =or th aount an> whoar it Aount A8rnt Thwor> ?th @an? an+ orth $or @an it++u++or+ an>a++i8n+. Th wor> ?A8rnt? an+thi+ lit Cr>it Aount Ar,rnnt. Th wor> ?LoanAount? an+ th lit Cr>it Loan Aount+ta ur+uant to thtnn+ o= thi+ A8rnt.

$$CT #$ USI! L#A ACC#UT/Whn you u+ thi+ aount, you ar a8rin8 to an>will ition+ o= thisA8rnt. &ou rti=y that all in=onnation you 8a;th @an to oorrt ah r+on who +i8n> th aliation =or thi+aount will i;i>ually an>Eointly r+on+iu on th LoanAount.

TH#9 #$ US A9 LIITATI#S/Th @an will +uly you with lit Cr>it Aount>ra=t+. So lon8 a+ no ;nt o= 9=ault, a+ >=in>hrin, ha+ourr> an> thi+ A8rnt ha+ not , you ay o+ in your >an> >o+itaount to a th ruir> iniwn onthly

ayntwhn >u, you willay a lat = o= 4 o= thaynt >ulu+ th aliara=t har8. :

I0"R" R/":Intr+t i+ aya a+ an> whn. +uh Pri athan8+. "he @anK+ Pri at i+ not n++arily tholow+t rat har8> to it+ u+tor+ an> nothin8 hrin+hall r;nt th @an =ro ln>in8 at "++ than it+ Priat. Intr+t +hall on a >aily aily +hall an> a 30->ay yar. $ro an> a=tr th ourrn o= an ;nt o=9=ault hrun>r, th intr+t rat ayar +hall


16/20

aynt. If a r=un> r>u+ rinial, th r>utionwill a+ a artial aynt.

CHA!S I ITST AT/

Th intr+t rat +t forth aition (an> that o=any 8uarantor+) an> th >o+it rlation+hi with th@an. Th @an ay hra=tr han8 your intr+trat on thirty >ay+ writtn noti to you. Any han8will iatly an> will aly to allaount+ thn out+tan>in8 an> any aount+ inurr>thra=tr.

TI @ALAC 9U$"9$AULT/&ou will be in >=ault, an> th @an n> not nnit any=urthr $raws a8ain+t your Loan Aount an> ayruirthat you ay ;rythin8 that you ow to it ifon oror o= :th =ollowin8 our (ah +uh ;nt to a+an ?;nt o= 9=ault?)/ (1) &ou =ail to aany ayntruir> hrun>r whn >u or =ail to ha;+u==iint=un>+ in your >an> >o+it aount to

rit autoati>u () you or any8uarantor =ail toa any othr aynt to th @an whn >u () youor : any 8uarantor >=ault IUl>r any in+trunt ora8rnt,whthr >irt or ontinlKnt, =or th aynto= ony 4)you =ail to oly with: any othr tnn,

o;nant, oron>ition ontain> in thi+ A8rnt5) anyrr+ntation or wauity a> in thi+A8rnt or anyin+trunt, >ount, or rti=iat,=urni+h> in8 (3) a tition in

in, i+on> i++olution, liui>ation,oo+ition, or arran8nt or thaointnt o= ari;r (2) you or any 8uarantor a>itinwritin8aninaition in a annrin whih th @an ra+onaiial or a>ini+trati; >tnnination ruirin8 thaynt o= ony i+ ntr> a8ain+t you or any8uarantor (10) th 8uaranty o= any 8uarantor tnninat+or i+ unn=orai+ (11) your a++t+ or tho+ o= any 8uarantor arl>8> or or iair>+uhthatth@ani+(1)youor any 8uarantor =ailto =urni+h any =inanial in=onnation or =inanial+tatnt+ to th @an or =ail tout an in+tiono=+ orrorty,it+an> loan+(13) you =ail to ay any ta a++++nt whn >u or1*) th @an >tun+ in 8oo> =aith that it will not

hrun>r aor>in8 to th tr+ o= thi+A8rnt.

C#DATSJ.PSTATI#SJW AATIS

&ou hr warranti+ ar truea+ o= th>at hro= an> +hall at o=any $rafta8ain+t th Loan Aount)/ (a) uon ru+tyou will =urni+h th @anl a oy o= your r+onal=inanial +tatnt, as wll a+ th r+onal =inanial+tatnt+ o=th 8uarantor+, all in =onn an> +u throu8hout th tnn o= thi+ A8rnt () youha; =ull owr an> authority to ntr into thi+A8rnt, an> nothin8 in thi+ A8rnt ontra;n+any "aw, r8ulation, an>l8ally in8 oan with it+ tr+an> ha+ in8 nor, to th

. best o= your nowl>8, any thratn> ation+ orro>in8+ ini+trati; a8nywhih, i= >trin> a8aillit you, or any 8uarantor)woul> ha; a atrial a>;r+ ==t on your (or any8uarantorK+)=inanial on>ition. oration+, or a in=onnation =urni+h> all 8uarantor+ ar tru an> aurat in all atrialr+t+ (8) you will aintain your rinial >an>>o+it aount with th@an (h) you will youra++t+ in+ur> a8ain+t th=tan> >+trution (i) you will

nnit th @an to ainyour ror>+, an>au>it your in;ntory.

I!HT #$ #$$ST/

Uon th ourrn o= an ;nt o= 9=ault, th @anay ta any aount yau ha; on >o+it with it orany a==iliat o= th @an an> aPl& it towar> thaount >u without liitin8 th =or8oin8, th @an/ay ri+ any an> all ri8ht+ o= o==+t it ay ha;

ur+uant to +tatut an> oonlaw.

SCUIT& ITST/

A$ ollatral +urity =or all o= your olia lin on th =ollowin8 rorty/All ony or othr rorty in th @anK+ o++++ion,whthr now hl> or latr oin8 into th @anK+

o++++ion whthr on >o+it or in +a=in8,u+to>y, l>8,tran+i++ion, olltion or othrwi+ =oryour aount or toyour r>it or all ro>+. ro>ut+, rlanint+,rnwal+, +u+, r+nt or=utur, with r+t to th =or8oin8, (all o= whih

rorty a


17/20

JACOB FRYDMANl!"n##s

ino thr=ro an> ri+ all ;otin8 an> othrri8ht+ with r+t thrto (an> arnt o=, rot+t, or ta any+t+ tor+r;any ri8ht+ m +uh Collatral Surity,all o= whih rainyour o ay+noti inary mail +hall > ra+ona+ a>;i+a) th @an +hallha; th ri8ht to an> urha+ at any +uh+al ()th ro>+ o= any +uh +al +hall =ir+t toth o+t+, n++, an> attorny =+ in o1U1Ction withth +al, an> th rain>r to th Liatnnin (=) you an> any8uarantor an> any othr oatCollatralSurity an> ro; +a,(i) you will a++ ait a;aila ti a+ th@an ay >+i8nat (j! th 9an ay noti=y anyaount >ra=t+ a8ain+t th Loan Aount. If no;nt o=9=ault ha+ ourr> or our+, you ay ayth aount>u hrun>r Eu+t> a+ an> whn th @anK+ Priat han8+ on the unai> th@an +n>+ th attr to an attorny =or olltion,thn youa8r to ay a ra+ona, lu+ ourt , o+t+ an>>i+l++ o= whthr an ation i+on> an>, i= +o, whthr in th trial ourt,allat ourt, lay or rla+. &our o tho+ o= any8uarantor+ ar not a==t> in8 or o>i=yin8 any or.

4*/0):

Th @an ay han8 thi+ A8rnt at any ti. If it>o+, you will in writin8 at your a>>r++ +hownIn it+ ror>+. Unl++ you tll th @an in writin8 toanl thi+ A$."nCnt within =i=tn (15) >ay+ a=tr th@anK+ tran+i++ion o= noti, all han8+ will lin8 o= th LoanAountan> your r>it on a rio>i ta8. rturn+ ru+t>

uon th r;iw, th @an ay>ra+ or trinat th Loan Aount an> thi+A8rnt.

ISCLLA#US/

(a) &ou a8r that a iro=il or othr hoto8rahioyo= an +trunt or >ount u+> in onntionwith thlit Cr>it Aount will +tait rortor on+urrort an> to ri;, o han8r>itin=oration .on yoKu an> any 8uarantor. Th @anwill tll you uon ru+t whthr or not a on+urrort wa+rort>, an>, i= +o, the na an> a>>r++ o=th on+ur rortin8 a8ny () you a8r that th@an ay at lat or artial aynt+, a+ wll a+

aynt+ that ar ar> ?ai> in =ull? or ontain othrr+triti; n>or+nt+, without lo+in8 any ri8ht+un>r thi+A8rnt (>) you a8r not to >raw on thLoan Aount t it Aount>ra=t+ ro;i>> othr lltCr>itAountan>N4rlat>+r;i+aor>in toth

@anK++h>ulo==+,a+an>> =roti totun(fyou a8r that thi+ A8rnt +hall toit+ on=lit+ o= law+ rul+ (8) you on+nt to th"uri+>ition o= the Court o= th Stat o=w &or an>;nuinSu==olCounty, w &or (h) you an> th @an wai; thri8ht to trial


18/20

N#$e%&e' ((, ()*)

Sent &+ Ce'ti,ed Mail N# -)). /(/) )))/ )"(/ *.)"

Ja0#& F'+d%an..1 (nd A$en2e, Fl##'/3Ne4 Y#'5, NY*))*-(()*

Re6 Ca7ital One Ban5, NA, 8t9e:Ban5:; -Ja0#& F'+d%an,


19/20

Capital One Bank. Member FDIC265 Bro11dhollow Road, Melille, !ew "ork 11#$#


20/20

All ri8ht+ an> r>i+ aor>> th @an un>r th Proi++ory ot, th othr Loan 9ount+

at any ti an> from ti toti. /n# >lay or =ori+aor>>to it un>r th Tr Loan ot th othr Loan 9ount+ or n or an# oral ouniation+ th@orrowr or any 8uarantor +houl> toi=iation or rla+ o= any =ault or;nt o= >=ault, whthr now i+tin8 or hra=tr ari+in8, or o= any o= th @anK+ ri8ht+ an>r>i+ un>rth Tr Loan ot, th othr Loan 9ount+ an> at law.

Sinrly,

ary loonDi Pr+i>nt

4aital ne -an

Ja'ob ;r#$manLoan0umber

capital one, national association vs. jacob frydman - copy

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