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ESSEX COUNTY SUPERIOR COURT

DECEMBER 7, 2023
REED SMITH LLP FILED
Formed in the State of Delaware
Derek J. Baker, Esquire (016881998)
506 Carnegie Center, Suite 300
Princeton, New Jersey 08543
(609) 987-0050
Attorneys for Plaintiff, Fannie Mae

FANNIE MAE.
SUPERIOR COURT OF NEW JERSEY
Plaintiff, CHANCERY DIVISION: ESSEX COUNTY
vs.

PROSPECT CASTLE, LLC DOCKET NO. F- 012968-23

75 Prospect Street
East Orange NJ 07014

Basya Weiss
11 Wiener Drive, Unit 202
Monsey, NY 10952

SH5 Construction Company

8684 25th Ave.
Brooklyn NY 11214

75 Prospect Street Tenant Association

75 Prospect Street
East Orange NJ 07017

Defendants.
This matter having been opened to the Court by FANNIE MAE, (the “Plaintiff” or

“Fannie Mae”), upon notice to all defendants for the appointment of a receiver to operate and

safeguard the mortgaged properties located at 75 Prospect Street, East Orange, New Jersey (the

“Property”), during the pendency of this action, and it appearing to the Court from the Verified

Complaint (the “Complaint”), the Certification of Plaintiff’s Attorney Derek Baker, the

Certification of Amy Sogga, the arguments of counsel, and for good cause shown;

1st
IT IS on this __________ December 2023 ORDERED as follows:
day of __________,

US_ACTIVE-100877878.6
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1. On or about April 29, 2022, WALKER & DUNLOP, LLC, a Delaware limited

liability company (“Original Lender”) made a loan in the amount of $13,302,000.00 (the “Loan”)

to PROSPECT CASTLE LLC, a New Jersey limited liability company (“Owner”). The Loan is

evidence by without limitation, (i) that certain Multifamily Note dated April 29, 2022 in the

stated principal amount of $13,302,000.00 by Owner to the order of Original Lender, (ii) that

certain Multifamily Loan and Security Agreement dated April 29, 2022 between Owner and

Original Lender (the “Loan Agreement”), (iii) that certain Multifamily Mortgage, Assignment Of

Leases and Rents, Security Agreement and Fixture Filing dated April 29, 2022, executed by

Owner for the benefit of Original Lender (the “Mortgage”); and (iv) that certain Guaranty of

Non-Recourse Obligations, dated April 29, 2022, executed by Basya Weiss (“Guarantor”) for the

benefit of Original Lender (the “Guaranty”).

2. The Note, Loan Agreement, Mortgage, Guaranty, and all other documents and

instruments securing or evidencing the Loan are hereinafter collectively referred to as the “Loan

Documents.”

3. Fannie Mae is the assignee of the Loan Documents by way of, without limitation,

that certain Assignment of Mortgage from Original Lender to Fannie Mae and an endorsement of

the Note from Original Lender to Fannie Mae. Thus, Fannie Mae is the owner and holder under

the Loan Documents and the party entitled to enforce same.

4. The Mortgage provides that if an Event of Default has occurred and is continuing,

Fannie Mae may apply to any court having jurisdiction for the appointment of a receiver for the

Property.

5. On September 27, 2023, Fannie Mae notified Owner that numerous Events of

Default (as defined in the Loan Documents) had occurred and that the outstanding principal

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indebtedness evidenced by the Note has been accelerated as a result of the occurrence and

present continuation of such Events of Default.

6. Fannie Mae’s claims against the Owner are secured by valid, binding, first-

priority liens on and security interests in all of Owner’s property, real or personal, including the

Property.

7. Fannie Mae is the current owner and holder of the Note and Mortgage. Fannie

Mae is government-sponsored enterprise and a federally chartered entity that Congress created to

enhance the nation’s housing-finance market. Under its federal statutory charter, Fannie Mae has

a public mission to provide liquidity, stability, and affordability to the U.S. housing market,

including the market for quality, affordable rental housing. Fannie Mae is operating under the

conservatorship of the Federal Housing Finance Agency (“FHFA”), which is an independent

agency of the United States created in 2008 to supervise certain Government Sponsored

Enterprises including Fannie Mae. See 12 U.S.C. § 4511 et seq. Among other powers, Congress

granted the Director of FHFA the authority to place Fannie Mae into conservatorship under

certain, statutorily defined conditions, which the Director did in 2008. As Conservator, FHFA

has broad statutory powers, including the powers to preserve and conserve Fannie Mae’s assets

and property, and to collect obligations due Fannie Mae. FHFA’s ability to exercise its statutory

powers and functions as Conservator is protected by federal law. See, e.g., 12 U.S.C. § 4617(f).

8. FHFA, as The Conservator is statutorily empowered to “preserve and conserve

Fannie Mae’s assets and property,” to “operate” Fannie Mae, to “perform all of [Fannie Mae’s]

functions in [Fannie Mae’s] name,” and to “collect all obligations and money due” [Fannie Mae].

12 U.S.C. § 4617(b)(2)(B)(i)-(iv).

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9. Pending the sale or other disposition of the Property, which is subject to the

authorization and approval of Fannie Mae and consent of FHFA, and further order of this Court,

Paula Forshee of Catalyst Property Solutions, with a local New Jersey address of c/o Rexmonte

LLC, Po Box 726, 153 Central Av, Westfield, NJ 07090, be and is hereby appointed receiver

(the “Receiver”), and the Receiver shall be empowered and directed in its capacity as a fiduciary

and officer of the Court to forthwith enter upon and take possession of the Property and to

manage, take charge, preserve and safeguard the Property, and to demand, collect and receive

from any tenants or occupants in possession of the Property or any portion thereof or any person

liable therefore, all of the rents, other fees and charges, issues and profits thereof now due, if any,

and unpaid or hereinafter to become due.

10. Fannie Mae has requested that the Receiver’s assigned duties be to take

possession and control of the Property, receive the rents, revenue, fees, other charges and profits

from the Property, operate the Property, and pay taxes, utilities and other necessary expenses; to

care for the Property; to take possession of and examine the books and records of Owner for the

Property, to oversee and approve any actions with respect to the Property, including, any actions

by Owner with respect to the Property or performance of Owner’s obligations and enforcement

of Owner’s rights under tenant leases.

11. Defendants Owner, Platinum Management LLC, Livingo Communities LLC, and

any person, including tenants and persons in possession of the rental proceeds or proceeds

thereof shall promptly pay and turn over to Receiver, and perform all acts necessary to

immediately transfer to Receiver, all funds on hand in cash and/or held in deposit accounts for

(or for the benefit of) Owner, arising from the ownership, possession, management, or operation

of the Property, along with all security deposits, bank accounts, bank statements, operating

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reports, maintenance contracts and financial records relating thereto, and all current leases or

agreements concerning tenants and occupants of the Property.

12. Owner and its agents, heirs, or assigns, employees, property managers,

representatives, contractors, vendors, suppliers of services and goods, including utility providers,

and agencies, and any and all other persons with actual or constructive knowledge of this Order

(including their agents and employees) (collectively, the “Obligor Parties”) are hereby

immediately restrained and enjoined from collecting or receiving all or any part of the rents, fees,

issues and profits of the Property.

13. Obligor Parties shall immediately vacate the Property and deliver to the Receiver

all keys, alarm codes, access codes and combinations to any locks, computers or security devices

at or relating to the Property.

14. Obligor Parties shall immediately pay and turn over to Receiver, and perform all

acts necessary to transfer to Receiver, all funds on hand in cash and/or held in deposit accounts

for (or for the benefit of) Owner, arising from the ownership, possession, management, or

operation of the Property.

15. Obligor Parties shall immediately pay and turn over to Receiver, and perform all

acts necessary to transfer to Receiver, all accounts (including without limitation, tax, utility, or

security deposit accounts), accounts receivable, operating reserves, and any other cash or funds

of any kind, including refunds, credits, interest, proceeds, rents or income, books, and records

relating to the Property.

16. Obligor Parties shall immediately provide the institution name and account

numbers for all bank accounts into which rents, security deposits, or other funds associated with

the Property have been deposited.

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17. Obligor Parties shall immediately turn over all documents that relate to the

Property’s condition, operation, and maintenance, including but not limited to, insurance

policies, licenses, warranties, contracts, financial and operating statements, payable and

receivable reports, code violations, pending legal claims, entity tax identification, access codes

for equipment (including without limitation computers), vendor lists, notices, invoices,

correspondence, and employment records. Owner shall immediately name Receiver as

additionally insured on all policies related to the property.

18. Obligor Parties shall immediately turn over to Receiver any goods, supplies,

equipment, software, permits, and/or licenses that were obtained from income generated by the

Property or for the benefit of Owner.

19. Obligor Parties shall immediately provide access to any entry, monitoring and/or

surveillance systems, including but not limited to, passwords, servicer contact information, and

service agreements.

20. Obligor Parties shall immediately ensure that any existing manager or

management entity for the Property shall accept the instructions of Receiver as if Receiver was

the Owner and shall act with, and under the supervision, consent, and instruction of, Receiver.

21. From and after the date Owner delivers possession of the Property to Receiver,

Owner shall continue to perform or cause to be performed at the Owner’s sole cost and expense

all actions necessary for Owner to keep its organizational status in good standing with its state of

organization and, if different, the state where the Property is located, including without

limitation, timely filing all required annual reports, tax returns, and other similar state and local

filings, and paying any required fees and charges in connection therewith.

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22. Obligor Parties shall immediately provide to Receiver, the names and account

numbers of all utility companies and/or accounts servicing the Property (including but not

limited to, electricity, sewage, gas, heat, water, and telephone service), as well as all documents

or other records pertaining to such accounts.

23. Owner and its members, employees, agents, and representatives, are permanently

enjoined from:

a. Entering upon the Property at any time during the period that this Order is in
effect without the prior consent of Receiver;

b. Collecting, withdrawing, transferring, conveying, concealing, or otherwise

disposing of funds or revenues derived from the operation of the Property, and
from paying any such funds to (or for the benefit of) themselves or any other
party;

c. Terminating, canceling, altering, amending, or otherwise changing any insurance

policies related to any portion of the Property;

d. Removing from, destroying, concealing, changing, or altering in any manner any

property or equipment from the Property, including without limitation, any of the
books and records (including without limitation electronic records) relating to the
ownership, possession, management, or operation of the Property;

e. Canceling, transferring, selling, assigning, revoking, returning, or terminating any

service contracts, insurance policies, utilities, marketing agreements, housing
agreements, management agreements, software agreements, and/or licenses
related to the operations and management of the Property, except to the extent
necessary to ensure that any manager or management entity for the Property shall
accept the instructions of Receiver as if Receiver was the Owner and shall act
with, and under the supervision, consent, and instruction of Receiver;

f. Interfering with (whether directly or indirectly), obstructing, or preventing in any

way Receiver’s actions pursuant to this Order, including the management or
operation of the Property; and

g. Causing or permitting any liens, deeds of trust, security interests, or other

encumbrances to be filed or asserted against the Property.

24. Subject to Fannie Mae’s rights set forth in this paragraph, Receiver is authorized

to enter into contracts and agreements for the operation, maintenance and repair, and security of

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the Property and to perform the duties of Receiver for the Property and the Receivership Estate

(“Contracts”), including Contracts with Professionals, and is authorized to pay expenses and

charges under such Contracts from Property Revenues (as hereafter defined) held by Receiver or

from other funds available to Receiver, subject to the provisions of Section 28 herein. The

Receiver may amend, modify, or terminate any Contracts, or any existing contracts or

agreements for the Property entered into prior to the date of this Order that Receiver determines

not to be beneficial to the duties of Receiver for the Receivership Estate.

25. All tenants-in-possession of any portion of the Property, or such other persons as

may be in possession thereof, if any, be and hereby are directed to pay and attorn to said

Receiver, until further Order of this Court, all rents, reimbursements, fines, fees, issues and

profits now due and unpaid or hereinafter to become due and unpaid, and said persons are

enjoined and restrained from paying such rents, issues and profits to Owner, or its agents.

Nothing herein shall deprive tenants-in-possession of any portion of the Property, or such other

persons as may be in or may have been in possession thereof from raising any and all claims

against the Obligor Parties, their agents, or any predecessors in interest. For the avoidance of

doubt, nothing in this section limits the Receiver’s powers under Section 28.e hereof.

26. The Receiver shall be and is hereby authorized and directed to manage the day-to-

day operations at the Property with the full powers, authority, and responsibility of a fiscal agent.

27. If funds are needed to finance immediate repairs, management, and security at the

Property and to finance the receivership (collectively referred to as “Repair and Receiver

Expenses”), then:

a. The Receiver will first draw funds from the collected rents for the Repair and
Receiver Expenses;

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b. If additional funds are needed for Repair and Receiver Expenses, the Receiver
may request momentary advances from Fannie Mae in accordance with this
Section and Section 28.o;

c. Fannie Mae may grant or deny the Receiver’s requested monetary advances in its
sole and absolute discretion;

d. Any agreed monetary advance provided by Fannie Mae pursuant to the Receiver’s
request shall be deemed the obligation of Owner and added to the indebtedness
owed to Fannie Mae. Said advance(s) shall be treated as a protective advance
which may be added to the total debt due with interest to accrue thereon pursuant
to Section 4 of the Mortgage;

e. The Receiver is prohibited from borrowing from any source other than Fannie
Mae and from causing or permitting any liens, deeds of trust, security interests, or
other encumbrances to be filed or asserted against the Property, provided,
however, that the Receiver may open credit lines for utilities, supplies, services,
and insurance needed at the Property.

28. Receiver is hereby granted the following other duties, rights, and powers:

a. To enter and take immediate custody, possession, and control of the Property and
all things of value located on or relating to the Property;

b. To have immediate access to all of the books and records pertaining to the
Property;

c. To contact tenants of the Property and collect rents and other sums due from said
tenants;

d. To collect, hold, and preserve all rents, revenues, income, profits, and other
benefits of and generated by the Property (the “Property Revenues”), whether
arising before or after entry of this Order;

e. The Receiver is hereby authorized to institute and carry on all legal proceedings
necessary for the protection of the Property, or to recover possession of the whole
or any part thereof, and to institute, prosecute and continue actions for the
collection of rents due or hereinafter to become due, and institute and prosecute
actions for any diversion of the rents, issues and/or profits of the Property, for
lease violations, and institute and prosecute actions for any past diversion of the
rents, issue and/or profits of the Property, for lease violations, and institute
summary proceedings for the removal of any tenant or tenants, and that the
Receiver shall be permitted to retain counsel of its choice to effectuate its duties
hereunder without further application to this Court;

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f. To hire personnel necessary to maintain and preserve the Property including,

without limitation, Catalyst and Rexmonte, Blue Marlin Maintenance and
Services, and Wilco Construction;

g. To retain, hire, and terminate management and other personnel of the Property;

h. To pay from the Property Revenues the ordinary and necessary expenses of
owning, operating, and maintaining the Property (the “Property Expenses”)
incurred from and after the date of Receiver’s appointment, including, without
limitation, a reasonable management fee and compensation and overhead to its
professionals;

i. Receiver may pay expenses but is not obligated to pay expenses incurred prior to
the appointment of the Receiver that were incurred for the benefit of the Property.
The responsibility for payment of expense incurred prior to the appointment of the
Receiver shall remain the responsibility of the Owner;

j. To maintain and control the Property as necessary to prevent diminution of the

Property’s value, to make repairs and take remedial action to preserve and protect
the Property, as well as hire such contractors, suppliers, material men and other
professionals as in the Receiver’s prudent business judgment the Receiver deems
necessary to complete any required repair or remediation of the Property;
including, without limitation, the payment of taxes, insurance, utility charges, and
other Property Expenses incurred from and after the date of Receiver’s
appointment to the extent that such funds are available;

k. To contract for and obtain such services (including utilities), supplies, equipment,
and goods as are reasonably necessary to operate, preserve, and protect the
Property and the licenses and permits reasonable and necessary for the continued
operation of the Property;

l. Take necessary steps to winterize, waterproof and otherwise safeguard, secure,

protect and preserve the Property and any and all equipment located thereon;

m. Comply with all code enforcement orders provided to the Receiver regarding the
Property or its operations;

n. Employ an agent to conduct said work and pay the reasonable value of such
agent's services out of the rents and profits received and, if none, said funds may
be forwarded by Fannie Mae as a protective advance which may be added to the
total debt due with interest to accrue thereon, with the express understanding that
nothing herein shall obligate Fannie Mae to make any such advance;

o. To issue receiver’s certificates or other documentation reasonably requested by

Fannie Mae to evidence any advances made by Fannie Mae to the Receiver;

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p. Prosecute and pursue any and all claims and causes of action under any policy of
insurance which relates to the Property or arises from the operations of the
Property;

q. Solicit bids for, procure and make necessary payment of one or more policies of
insurance relating to any loss, casualty or damage to or arising from operations at
the Property; and

r. Enter into new rental contracts and leases for vacant units and renew existing
rental contracts on reasonable terms for periods not to exceed one year.

29. The Receiver shall keep records and shall retain invoices and receipts for all work

performed hereunder and for all things necessary for the due care and proper management of the

Property. The Receiver shall deliver a job detail report and/or itemization of all contracted work,

if any, to Fannie Mae for approval for any improvements or remedial work which shall exceed

$5,000 in the aggregate.

30. The Receiver is authorized to take such steps as are necessary to appeal, challenge

or otherwise seek to reduce the real estate taxes and assessments levied upon the Property, but

shall have no obligation to do so.

31. Neither the Receiver nor Fannie Mae shall be liable for any expenses incurred

with regard to the Property incurred prior to the Receiver taking possession of the Property, nor

shall the Receiver or Fannie Mae be required to use any rents or other revenues collected after

the Receiver takes possession of the Property for payment of any expenses incurred with regard

to the Property prior to the Receiver’s taking possession of the Property.

32. Except as provided otherwise in this Order, neither Fannie Mae nor the Receiver

shall be liable for any obligations (including, without limitation, obligations between, on the one

part, Owner, and, on the other part, one or more employees, directors, agents, shareholders,

creditors, members, and/or representatives of Owner), whether or not such obligations have been

liquidated and whether or not such obligations are conditional, that arose prior to this Order and

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that relate in any way to the acquisition, ownership, maintenance, operation, financing, sale or

use of the Property and of any part of it. If obligated, Owner shall remain liable for all

obligations of the Property.

33. The Receiver shall post a bond for the faithful performance of its duties as such

Receiver in the amount of $10,000.00 in form and with sureties acceptable to Plaintiff and

Fannie Mae, which bond shall be filed with the Clerk of this Court, or in lieu of such bond, the

Receiver may deposit cash or a letter of credit in satisfaction of the requirements for the bond.

The cost of the Receiver Bond and any renewals or extensions thereof shall be an expense of the

Receivership Estate and may be paid from Property Funds.

34. The Receiver shall forthwith open and deposit in a separate bank account at a

FDIC insured institution (the “Depository”) all monies received by it at the time it receives same

in its own name as Receiver and after paying the real estate taxes, municipal assessments,

operational expenses and any other charges concerning the Property and otherwise permitted

pursuant to this Order, or subsequent court order relating thereto, and after doing all things

necessary for the due care and proper management of the Property, the Receiver shall deliver the

surplus monies, if any, to Plaintiff on a monthly basis, the holder of the mortgage encumbering

the Property, and that it then, after deducting therefrom its proper fees and disbursements in

amounts approved by this Court.

35. The Receiver, and any party in interest hereto, at any time, on proper notice to the

parties who may have appeared in this action, may apply to this Court for further or other

instructions and for further powers necessary to enable the Receiver to properly fulfill its duties

pursuant to this Order.

36. The receivership shall terminate with respect to the Property upon the earlier of:

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a. the sale of the Property, subject to Fannie Mae’s approval and FHFA’s consent,

and thereafter approved by this Court;

b. the foreclosure of the Property, with the express understanding that Fannie Mae

may commence foreclosure proceedings without further order of this Court; or

c. further Order discharging the Receiver and terminating the receivership.

37. At the request of Fannie Mae, the Receiver may market the Property for sale or

lease and is authorized to retain a real estate broker for such purposes; provided, however, any

sale of the Property is subject to subject to Fannie Mae’s approval and FHFA’s consent, and

thereafter approval from this Court. In connection with the marketing, sale and management of

the Property, the Receiver may retain surveyors, title companies, and conduct environmental

assessments, take necessary environmental remedial measures and perform or have performed

other engineering and studies.

38. Not later than the twentieth (20th) day of each month or the next business day

thereafter, the Receiver shall prepare and deliver to the parties who have appeared herein a

monthly report and file same with the Court and serve a copy upon all parties appearing in this

action. As an administrative convenience, counsel for Fannie Mae is authorized, but not

required, to file such reports with the Court and serve a copy upon all parties appearing in this

action, with the express understanding that counsel for Fannie Mae does not represent the

Receiver. The monthly report shall include:

a. a copy of any contract entered into by the receiver regarding repair or

improvement of the building, including any documentation required under

subsection d. of section 15 of P.L. 2003, c. 295(C.2A:42-128), provided,

however, that the Receiver is exempted from the requirement under

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subsection d. of section 15 of P.L. 2003, c. 295(C.2A:42-128) to solicit at

least three bids or proposals, as appropriate, with respect to any contract in

an amount greater than $2,500 if (i) Fannie Mae consents to the contract,

or (ii) life, health, or safety conditions necessitate the immediate execution

of such contract;

b. a report of the lease and occupancy status of each unit in the building, and

any actions taken with respect to any tenant or lease;

c. an account of the disposition of all revenues received from the building;

d. an account of all expenses and improvements;

e. the status of the plan and any amendments thereto;

f. a description of actions proposed to be taken during the next six months

with respect to the building; and

g. itemization of any fees and expenses that the receiver incurred for which it

is entitled to payment pursuant to subsection a. of section 18 of P.L. 2003,

c. 295(C.2A:42-131), which were not paid during the period covered by

the report, or which have remained unpaid since the beginning of the

receivership.

39. In order to further facilitate the Receiver’s compliance with this Order, the

Receiver may, at its discretion, notify of its appointment all necessary local, state, and federal

governmental agencies, as well as all vendors, suppliers and contractors, condominium

management company and any all others who provide goods or services to the Property (“Third

Parties”) and shall have the right to request that all Third Parties forward all communications

with respect to the Property to the Receiver.

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40. The Receiver is authorized to initiate, defend, negotiate, settle, or otherwise

dispose of any claim or litigation that concerns the Property or the Receivership Estate subject to

Fannie Mae’s approval to the extent such settlement shall affect Fannie Mae’s security interests

in the Property and all related Fannie Mae interests thereto.

41. The Receiver’s compensation, subject to final court approval, shall be an initial

start-up fee of $1,500, plus a management and Receivership fee equal to the greater of $5,000.00

per month or seven percent (7%) of the total monthly Property Revenues, plus costs and

expenses incurred by the Receiver. Additionally, the Receiver shall be compensated a repair

supervision fee of 10% of the cost of goods and services related to capital repairs and major

deferred maintenance repair of the Property. The Receiver is also entitled to additional fees of

$135 per hour for preparing for court hearings, tenant meetings, meetings with the local

authorities, preparing court documents, document searches, and preparing for court hearings,

meeting with local brokers, inspectors, and city officials.

42. Receiver shall within forty five (45) business days after appointment prepare a 90-

day budget for the operation of the Property (“Budget”), which shall be provided to Fannie Mae

for approval. Upon approval, it shall be filed with the Court in this action and delivered to

counsel for the parties. The Budget shall be updated by Receiver on a quarterly basis. Fannie

Mae shall have a reasonable right of approval over the initial Budget and any material

modifications that increase by more than 10% the costs under the Budget in any expenses

category or in overall costs under the Budget. The Receiver shall seek Fannie Mae’s approval

for any expense incurred which exceeds $5,000.00 for any single expense and is not already

included in the budget or is in response to an emergency need, other than for the payment of real

estate taxes, insurance premiums, and operational expenses in the normal course of business.

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43. Except for acts of willful misconduct, gross negligence or fraud, neither the

Receiver nor any of the Receiver’s employees, agents, representatives, attorneys, officers,

directors, partners, shareholders, members, affiliates, successors or assigns (the “Receiver-

Related Persons”) shall be liable for any loss or damage incurred by the Receivership Estate, or

any of the Obligor Parties, tenants at the Property, or their respective subsidiaries, affiliates,

officers, directors, agents and employees or equity holders because of any act performed or not

performed by the Receiver or Receiver-Related Persons in connection with the discharge of the

Receiver’s duties and responsibilities hereunder.

44. Subject to Fannie Mae and FHFA’s rights and powers under this Order and

HERA, the Receiver is hereby vested with any and all authority necessary or appropriate, to

carry out the intent and purpose of this Order, and to operate and maintain the Property and the

Receivership Estate.

45. The Receiver is acting as a fiduciary and officer of the Court and not as an agent

of any party in this matter. Nothing contained in this Order shall be deemed to have conferred

upon Fannie Mae the status of mortgagee in possession.

LISA M. ADUBATO J.S.C.

This Motion was:
( ) Opposed ORDERED that this Order be served on all parties within 7 days of the date hereof
pursuant to R. 1:5-1(a).
(X ) Unopposed

Statement of Reasons attached

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FANNIE MAE v. PROSPECT CASTLE, LLC-F-12968-23

Statement of Reasons pursuant to R. 1:6-2(f):

This matter is before the court by way of plaintiff Fannie Mae’s motion to

appoint a rent receiver for the property located at 75 Prospect Street, Lot 9 Block

660, East Orange, New Jersey (the “Property”). This motion was not opposed;

defendant 75 Prospect Street Tenant Association submitted a legal brief in support

of plaintiff’s motion.

On or about April 29, 2022, defendant executed a Note to Walker Dunlop

LLC in the amount of $13,302,000.00. The Note was secured by a Mortgage to

Walker which was recorded in the Essex County Register on May 16, 2022 as

Instrument No. 2022048751. The Note and Mortgage were assigned to plaintiff on

May 16, 2022 as Instrument No. 2022048752.

Defendant defaulted on its loan obligation by changing its managing

member to Mordechai Weiss, thereby transferring and accelerating the loan

agreement, on or about May 12, 2022. Plaintiff notified defendant of the

acceleration by letter dated September 27, 2023. By letter dated October 12, 2023,

plaintiff further notified defendant of numerous ordinance violations of the East

Orange Municipal Housing Code and demanded rectification of the same within 30

days. The failure to maintain the premises is the basis for a corresponding lawsuit,

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ESX-C-140-23. Plaintiff seeks appointment of a receiver to supervise the leasing,

collection of rents, and other operations at the Property.

It is well settled in New Jersey that contracts are generally given their plain

and ordinary meaning. See M.J. Paquet, Inc. v. N.J. Dept. of Transp., 171 N.J. 378,

396 (2002) (citation omitted). As a result, when the terms of a contract are clear

and unambiguous a court must enforce them as written – as the contract evidences

the parties’ intention and agreement. See County of Morris v. Fauver, 153 N.J. 80,

103 (1998). Consistent with that principle, well established rules of contract law

provide that it is not the court’s function to make a contract for the parties or to

supply terms that the parties have not agreed upon. Schenck v. Hji Assocs., 295

N.J. Super. 445, 450 (App. Div. 1996), certif. denied, 149 N.J. 35 (1997). Stated

otherwise, “it is the function of the court to enforce [the contract] as written and

not to make a better contract for either party.” Id. (quoting U.S. Pipe & Foundry

Co. v. American Arbitration Ass’n., 67 N.J. Super. 384, 393 (App. Div. 1961)).

Thus, under well-established contract law in New Jersey, plaintiff is entitled

to the enforcement of the Note and Mortgage pursuant to its terms. The

appointment of a rent receiver is reasonable and permissible under New Jersey law.

Defendant expressly agreed to the appointment of a receiver in the event of default

and, as a result, this Court hereby GRANTS plaintiff’s unopposed motion for the

appointment of a rent receiver.