13-43836-PBS FDIC Objection to Exemptions

BLACK HELTERLINE LLP 805 SW Broadway, Ste. 1900

Portland, OR 97205 (503) 224-5560

of 5 – OBJECTION TO EXEMPTIONS 736954

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The Hon. Paul B. Snyder Chapter 7

Federal Building 500 W. 12th Street, 2nd Floor

Vancouver, Washington 98660 Hearing Date: October 1, 2013

Hearing Time: 9:00am Response Date: September 24, 2013

UNITED STATES BANKRUPTCY COURT WESTERN DISTRICT OF WASHINGTON

AT TACOMA

In re Mark A. Leonard, Debtor.

Case No. 13-43836-PBS

OBJECTION TO EXEMPTIONS

Comes now Federal Deposit Insurance Corporation as Receiver for Cowlitz

Bank (“Creditor”) and hereby objects to the Debtor's exemptions pursuant to Bankruptcy

Rule 4003(b) and as grounds for its objection states as follows:

1. Debtor filed a voluntary petition for relief under Chapter 7 of the

Bankruptcy Code on June 7, 2013.

. . . .

. . . .

Case 13-43836-PBS Doc 27 Filed 08/29/13 Ent. 08/29/13 17:26:07 Pg. 1 of 29


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2. Creditor is the holder of a secured claim in the amount of $938,670.44

against the Debtor. The claim is secured by a trust deed lien on the real property located at

160 Horseshoe Bend Estates, Kelso, Washington, 98626 (“Horseshoe Property”) and a

judgment lien entered on June 7, 2010 against Debtor in the matter of Cowlitz Bank v. Mark

and Serena Leonard, Cowlitz County for the State of Washington, case no. 09-2-02-188-1.

THE HORSESHOE PROPERTY

3. On or about June 22, 2009, Debtor granted Creditor a trust deed lien in

Horseshoe Property under the express representation that he occupied the property as his

principal residence. A copy of the Deed of Trust is attached to Creditor’s Proof of Claim

filed as claim no. 1 in this proceeding.

4. At a deposition held on August 19, 2010 in the arbitration matter of

Leonard v. Bodgen, case no. 08-2-00408-5, Kittitas Superior Court for the State of

Washington, Debtor testified that his home address was 160 Horseshoe Bend Estates, Kelso

Washington, i.e. the Horseshoe Property. A copy of relevant pages of the official deposition

transcript is attached hereto as Exhibit A.

THE MEEKER DRIVE PROPERTY

5. In addition to the Horseshoe Property, the Debtor owns the real

property located at 5335 Meeker Drive, Kalama, Washington, 98625 (“Meeker Drive

Property”). The Meeker Drive Property is encumbered by Creditor’s judgment lien entered

on June 7, 2010.

6. The Meeker Drive Property is used by the Debtor for commercial

purposes and as the headquarters of Tytan International, Inc., as is evidenced by the OTC

Pink Basic Disclosure Guideline issued by the Debtor on behalf of Tytan Holdings, Inc. on

June 27, 2013. A copy of the OTC Pink Basic Disclosure Guideline is attached hereto as



Portland, OR 97205 (503) 224-5560


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Exhibit B. The relevant information is located on pages 3-4 of the Exhibit.

7. The Debtor has leased the Meeker Street Property to Tytan Holdings,

Inc., the shell company which owns Tytan International, Inc., for use in its commercial

enterprise.

8. The Meeker Drive Property is subject to the City of Kalama Zoning

Code C-2: Highway Commercial District, which provides for commercial activities which

are dependent upon or require access by automobiles and truck, require outdoor storage or

display areas as well as off-street parking and loading areas.

DEBTOR’S CLAIM OF HOMESTEAD EXEMPTION

9. In his bankruptcy schedules, Debtor has claimed his Homestead

Exemption under Wash. Rev. Code Chapter 6.13 in the Meeker Drive Property rather than

the Horseshoe Property.

10. Debtor executed and recorded a Declaration of Homestead on April

26, 2013, an uncertified copy of which is attached for the court’s reference as Exhibit C. The

Declaration of Homestead was issued only days prior to Creditor’s issuance of a Writ of

Execution on the Meeker Street Property in the matter of Cowlitz Bank v. Mark and Serena

Leonard, which occurred on April 30, 2013.

11. Prior to the Sheriff’s sale scheduled for June 14, 2013, the Debtor filed

a Proof of Claim pursuant to 12 U.S.C. §1821(d) (13) (D) with Creditor, after which Creditor

withdrew is Writ of Execution and canceled the Sherriff’s sale. A copy of the relevant

Motion, supporting declaration and Order issued in case no. 09-2-02-188-1 are attached

hereto as Exhibit D.

12. RWC 60.13.040, Automatic homestead exemption- Conditions-

Declaration of homestead-Declaration of abandonment, provides:



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“(1) Property described in RCW 6.13.010 constitutes a homestead and is automatically protected by the exemption described in RCW 6.13.070 from and after the time the real or personal property is occupied as a principal residence by the owner or, if the homestead is unimproved or improved land that is not yet occupied as a homestead, from and after the declaration or declarations required by the following subsections are filed for record or, if the homestead is a mobile home not yet occupied as a homestead and located on land not owned by the owner of the mobile home, from and after delivery of a declaration as prescribed in RCW 6.15.060(3)(c) or, if the homestead is any other personal property, from and after the delivery of a declaration as prescribed in RCW 6.15.060(3)(d).”

(2) An owner who selects a homestead from unimproved or improved land that is not yet occupied as a homestead must execute a declaration of homestead and file the same for record in the office of the recording officer in the county in which the land is located. However, if the owner also owns another parcel of property on which the owner presently resides or in which the owner claims a homestead, the owner must also execute a declaration of abandonment of homestead on that other property and file the same for record with the recording officer in the county in which the land is located.”

RWC 60.13.040 (emphasis added).

13. In order to establish a valid homestead exemption, an owner must

intend to reside on the property, record a declaration of homestead, and record a declaration

of abandonment of any automatic homestead or existing declared homestead. Arkison v.

Wilson (In re Wilson), 341 B.R. 21, 26 (9th Cir. BAP, 2006) quoting Arkison v. Gitts (In re

Gitts), 116 B.R. 174, 178 (9th Cir. BAP 1990). The validity of a declared Washington

homestead exemption requires focus on the time the declaration is recorded. Id.

“The bottom line is that a Washington homestead declaration “must speak the truth” in order to be valid.

Id. at 27, quoting Bank of Anacortes v. Cook, 10 Wn.App. 391m 517 P.2d 633,637 (1974).

. . . . .



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14. At the time Debtor recorded the Declaration of Homestead, any intent

to reside at the Meeker Drive Property was impossible because of the commercial zoning

restrictions and the lease to Tytan Holdings, Inc.

15. Debtor has failed to comply with the statutory requirements of

RCW 6.13.40. There is no declaration evidencing his abandonment of the Horseshoe

Property pursuant to RCW 6.13.040(2), as required of an owner who selects a homestead

from unimproved and improved land that is not yet occupied as a homestead.

16. Debtor has not filed the Declaration of Homestead with the good faith

intent of residing at the Meeker Street Property, but rather to thwart Creditor’s execution on

its judgment lien.

WHEREFORE, Creditor objects to the allowance of the exemption claimed

by debtor and moves that the claim be denied.

DATED this 29th day of August, 2013.

BLACK HELTERLINE LLP By: /s/ Britta E. Warren

Ronald T. Adams, WSBA No. 36013 [email protected] Britta E. Warren, WSBA No. 43329 [email protected] Fax: (503) 224-6148 Of Attorneys for Federal Deposit Insurance Corporation as Receiver for Cowlitz Bank



Portland, OR 97205 (503) 224-5560

CERTIFICATE OF SERVICE 736954

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CERTIFICATE OF SERVICE

I hereby certify that I served a true and correct copy of the foregoing

OBJECTION TO EXEMPTIONS upon:

Mark A. Leonard PO Box 1249 Kalama, WA 98625 Debtor

GMAC Mortgage, LLC ATTN: Bankruptcy Department 1100 Virginia Dr. Fort Washington, PA 19034 Special Notice Request

McCarthy &Holthus, LLP 19735 10th Ave. NE, Ste. N200 Poulsbo, WA 98370 Special Notice Request

by mailing a true copy thereof in a sealed, first-class postage prepaid

envelope, to said addresses as shown above and deposited in the United States Mail at Portland, Oregon on the date set forth below.

And upon:

Russell D. Garrett [email protected] Chapter 7 Trustee

Robert C. Brungardt [email protected] Debtor’s Attorney

US Trustee’s Office [email protected] US Trustee

by electronic notification via the Court’s ECF system.





Byers & Anderson Court Reporters/Video/VideoconferencingSeattle/Tacoma, Washington

August 19, 2010Mark A. Leonard

Page 5

1 BE IT REMEMBERED that on Thursday,

2 August 19, 2010, at 2208 North 30th Street, Tacoma,

3 Washington, at 8:59 a.m., before Christy Sheppard,

4 Certified Court Reporter, CCR, RPR, appeared MARK A.

5 LEONARD, the witness herein;

6 WHEREUPON, the following proceedings

7 were had, to wit:

8

9 <<<<<< >>>>>>

10

11 MARK A. LEONARD, having been first duly sworn

12 by the Certified Court Reporter,

13 testified as follows:

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15

16 EXAMINATION

17 BY MR. BUNDY:

18 Q Good morning, Mr. Leonard. We have met informally. My

19 name is Howard Bundy. I represent Mr. Bogden and Bogden

20 Inc., the defendants and the counter claimants in this

21 action.

22 Would you please state your full name for the

23 record, please.

24 A Mark Anthony Leonard.

25 Q And what is your home address, sir?

Exhibit A Page 1 of 3




Page 6

1 A 160 Horseshoe Bend Estates, Kelso, Washington.

2 Q Mr. Leonard, as we are sitting here this morning are

3 you -- do you have any condition that would make it

4 difficult for you to understand my questions, to be able

5 to give complete and accurate answers?

6 A No, I just forgot my narcolepsy pills, and that's the one

7 that keeps you from falling asleep, so talk loud and keep

8 me awake.

9 Q Do you really have an issue with falling asleep during

10 the day?

11 A Yeah.

12 Q Okay. Have you been diagnosed with any kind of memory

13 problems or anything?

14 A No.

15 Q You indicated earlier before the record started that you

16 had forgotten your hearing aid. Have you now secured

17 your hearing aid and it's working?

18 A Got 'em in.

19 Q All right. Are you married, sir?

20 A No.

21 Q Are you recently divorced?

22 A A year and a half or two years -- a year or two ago.

23 Q A year or two ago. Do you recall the effective date of

24 the divorce decree?

25 A Not really. It seems like it was April something.





1 STATE OF WASHINGTON ) I, CHRISTY SHEPPARD, ) ss CCR #1932, a duly

2 County of Pierce ) Certified Court Reporter in and for the

3 State of Washington residing at Buckley,

4 do hereby certify:

5

6 That the foregoing deposition of MARK A.

7 LEONARD was taken before me and completed on August 19, 2010, and thereafter was transcribed under my direction;

8 that the deposition is a full, true and complete transcript of the testimony of said witness, including

9 all questions, answers, objections, motions and exceptions;

10 That the witness, before examination, was by me

11 duly sworn to testify the truth, the whole truth, and nothing but the truth, and that the witness reserved the

12 right of signature;

13 That I am not a relative, employee, attorney or counsel of any party to this action or relative or

14 employee of any such attorney or counsel and that I am not financially interested in the said action or the

15 outcome thereof;

16 That I am herewith securely sealing the said deposition and promptly delivering the same to Attorney

17 Howard E. Bundy.

18 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal this 14th day of

19 September, 2010.

20

21

22 Christy Sheppard, CCR, RPR Certified Court Reporter in and for the

23 State of Washington, residing at Buckley.

24

25



OTC Markets Group Inc. OTC Pink Basic Disclosure Guidelines (v1.0 January 3, 2013) Page 1 of 6

OTC Pink Basic Disclosure Guidelines

1) Name of the issuer and its predecessors (if any) In answering this item, please also provide any names used by predecessor entities in the past five years and the dates of the name changes. Tytan Holdings, Inc. Ault Glazer & Co., Inc. until 10-2009 Remington-Hall Capital Corp. until 3-2008 Universal Fuels Co. until 2-1998 Universal Uranium. 2) Address of the issuer’s principal executive offices Company Headquarters 5225 Meeker Drive Kalama, Washington 98625 Phone: (360) 673-2278 Email: [email protected] Website(s): www.TytanTractor.com 3) Security Information Trading Symbol: TYTN Exact title and class of securities outstanding: Common Stock CUSIP: 902508 209 Par or Stated Value: .001 Total shares authorized: 43,333,333 as of: June 26, 2013 Total shares outstanding: 37,741,416 as of: June 26, 2013 Preferred share information (if necessary): Exact title and class of securities outstanding: Preferred Class A Shares CUSIP: N/A/ Par or Stated Value: .001 Total shares authorized: 1,000,000 as of: June 26, 2013 Total shares outstanding: 1,000,000 as of: June 26, 2013 Transfer Agent Name: Transfer Online 512 SE Salmon Street Portland, OR 97214 Phone: (503) 227-2950 Is the Transfer Agent registered under the Exchange Act?* Yes: No: *To be included in the OTC Pink Current Information tier, the transfer agent must be registered under the Exchange Act. List any restrictions on the transfer of security: None except as required by law

Exhibit B Page 1 of 6



Describe any trading suspension orders issued by the SEC in the past 12 months. None Within the past year please list any past, pending or anticipated stock split, stock dividend, recapitalization, merger, acquisition, spin-off, or reorganization: None 4) Issuance History List below any events, in chronological order, that resulted in changes in total shares outstanding by the issuer in the past two fiscal years and any interim period. The list shall include all offerings of securities, whether private or public, and all shares or any other securities or options to acquire such securities issued for services, describing (1) the securities, (2) the persons or entities to whom such securities were issued and (3) the services provided by such persons or entities. The list shall indicate:

A. The nature of each offering (e.g., Securities Act Rule 504, intrastate, etc.);

The company has not issued any additional shares during the past two years

With respect to private offerings of securities, the list shall also indicate the identity of the persons who purchased securities in such private offering; provided, however, that in the event that any such person is an entity, the list shall also indicate (a) the identity of each natural person beneficially owning, directly or indirectly, more than ten percent (10%) of any class of equity securities of such entity and (b) to the extent not otherwise disclosed, the identity of each natural person who controlled or directed, directly or indirectly, the purchase of such securities for such entity. 5) Financial Statements The Company has separately filed the following unaudited financial statements that are incorporated herein by reference on the same date as this report.

A. Balance sheet; B. Statement of income; C. Statement of cash flows; D. Financial notes; and E. Audit letter, if audited

The financial statements have been prepared in accordance with US GAAP. Information contained in a Financial Report is considered current until the due date for the subsequent Financial Report. To remain in the OTC Pink Current Information tier, a company must post its Annual Report within 90 days from its fiscal year-end date and Quarterly Reports within 45 days of its fiscal quarter-end date. 6) Describe the Issuer’s Business, Products and Services Describe the issuer’s business so a potential investor can clearly understand the company. In answering this item, please include the following:

A. a description of the issuer’s business operations;

On December 3, 2009, Tytan Holdings, Inc. completed acquisition of Tytan International, Inc., a tractor Company with exclusive manufacturing agreements in China. With the recent explosion of the Chinese automobile Industry, there has been a huge boom in tractor production quality. The Company intends to capitalize on this development by introducing a new line of products not yet seen in the U.S. or Canada. Tytan expects this high quality equipment to be competitive with what is currently available to the North American consumer of small tractors and implements.




Tytan Holdings, Inc acts as a holding company for its wholly owned subsidiary, Tytan International , Inc., the Company generates revenue through the sale of tractors and tractor implements. Tytan International, Inc.’s products are in competition with several brands in the small to medium acreage market. The Company believes that its long standing customer and dealer relationships, quality equipment, affordable prices, and innovation are keys to the Company’s competitive edge. Tytan Holdings, Inc. does not deal directly in the manufacturing of any product and does not rely on sources and availability of raw materials or principal suppliers. Tytan’s wholly owned subsidiary, however, does rely on various sources of raw materials and a limited number of product suppliers in China. Tytan Holdings, Inc. and its subsidiaries have an expansive client base with no single or specific reliance on any particular investor or purchaser of the subsidiary’s products. All products imported by Tytan International, Inc. are cleared by the US Customs Office upon entry to the US. All engine meet and are certified for EPA Emission compliance and OSHA requirements before entry into the US market. Tytan has certain proprietary designs that are patents approved by the United State Patent Office, United States Patent on a Wood Chipper and also for its United States Patent 4N1 Bucket for the tractor Front Loader. B. Date and State (or Jurisdiction) of Incorporation:

June 18, 1975, Colorado C. the issuer’s primary and secondary SIC Codes;

6719, D. the issuer’s fiscal year end date;

Dec 31 E. principal products or services, and their markets;

Tytan Holdings, Inc acts as a holding company for its wholly owned subsidiary, Tytan International , Inc., the Company generates revenue through the sale of tractors and tractor implements. Tytan International, Inc.’s products are in competition with several brands in the small to medium acreage market.

7) Describe the Issuer’s Facilities The goal of this section is to provide a potential investor with a clear understanding of all assets, properties or facilities owned, used or leased by the issuer. In responding to this item, please clearly describe the assets, properties or facilities of the issuer, give the location of the principal plants and other property of the issuer and describe the condition of the properties. If the issuer does not have complete ownership or control of the property (for example, if others also own the property or if there is a mortgage on the property), describe the limitations on the ownership. If the issuer leases any assets, properties or facilities, clearly describe them as above and the terms of their leases.

Tytan Holdings, Inc. principal office location is at 5225 Meeker Drive, Kalama, Washington 98625. This location is also the Headquarters of Tytan International, Inc. The property is leased, and acts, not only as a corporate headquarters but, also as a retail dealership, inventory storage, service shop, parts department, shipping depot, and showroom.

This location is clearly viewable to the high volume traffic of Interstate 5. Signage and inventory are clearly visible from both directions of the interstate highway. Tytan Holdings leases its facilities at 5225 Meeker Drive, Kalama,




WA 98625 from Mark Leonard, its President, under a triple net lease for $4,000.00 per month. The term of the lease is for 4 years, and ends on June 30, 2015 with an option to renew. Leonard received no rent payments from the Company in 2012.

8) Officers, Directors, and Control Persons

The goal of this section is to provide an investor with a clear understanding of the identity of all the persons or entities that are involved in managing, controlling or advising the operations, business development and disclosure of the issuer, as well as the identity of any significant shareholders. A. Names of Officers, Directors, and Control Persons. In responding to this item, please provide the names of each

of the issuer’s executive officers, directors, general partners and control persons (control persons are beneficial owners of more than five percent (5%) of any class of the issuer’s equity securities), as of the date of this information statement.

Mark Leonard – President and Chairman of the Board

B. Legal/Disciplinary History. Please identify whether any of the foregoing persons have, in the last five years, been

the subject of:

1. A conviction in a criminal proceeding or named as a defendant in a pending criminal proceeding (excluding traffic violations and other minor offenses);

None 2. The entry of an order, judgment, or decree, not subsequently reversed, suspended or vacated, by a court of

competent jurisdiction that permanently or temporarily enjoined, barred, suspended or otherwise limited such person’s involvement in any type of business, securities, commodities, or banking activities;

None 3. A finding or judgment by a court of competent jurisdiction (in a civil action), the Securities and Exchange

Commission, the Commodity Futures Trading Commission, or a state securities regulator of a violation of federal or state securities or commodities law, which finding or judgment has not been reversed, suspended, or vacated; or

None 4. The entry of an order by a self-regulatory organization that permanently or temporarily barred suspended or

otherwise limited such person’s involvement in any type of business or securities activities.

None C. Beneficial Shareholders. Provide a list of the name, address and shareholdings or the percentage of shares

owned by all persons beneficially owning more than ten percent (10%) of any class of the issuer’s equity securities. If any of the beneficial shareholders are corporate shareholders, provide the name and address of the person(s) owning or controlling such corporate shareholders and the resident agents of the corporate shareholders.

a. Mark Leonard, CEO 500,000 Shares Series A




b. Holly A. King 50,000 Shares Series A c. Heather S. Mockovak 50,000 Shares Series A d. Pam Copen 200,000 Shares Series B e. Paul Stringer 200,000 Shares Series B

9) Third Party Providers Please provide the name, address, telephone number, and email address of each of the following outside providers that advise your company on matters relating to operations, business development and disclosure: Legal Counsel Jonathan D. Leinwand, P.A. 200 S. Andrews Ave. Suite 703B Fort Lauderdale, FL 33301 Tel (954) 903-7856 Fax (954) 252-4265




10) Issuer Certification The issuer shall include certifications by the chief executive officer and chief financial officer of the issuer (or any other persons with different titles, but having the same responsibilities). The certifications shall follow the format below: I, Mark Leonard, CEO certify that:

1. I have reviewed this annual disclosure statement of Tytan Holdings, Inc.; 2. Based on my knowledge, this disclosure statement does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this disclosure statement; and 3. Based on my knowledge, the financial statements, and other financial information included or incorporated by reference in this disclosure statement, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this disclosure statement.

June 27, 2013 /s/ Mark Leonard, CEO /s/ Mark Leonard, CFO



Ater Recording Return To:

Mark LeonardP.O. Box 1249Kalama, WA 98625

3478590OA 126/2013 12:48:30 PM Pages: 3Declaration Of Homestead FP~ITq BALDMIN 74. 0Cowlitz County Washington

Illffll fHlll III ICI 1111111 II~II III nll IIIII Inn III~II III IIIII INII IUD IIII IIII

DECLARATION OF HOMESTEAD

I, Mark Leonard, declare under penalty of perjury under the laws of the State ofWashington as follows:

A. That I am the owner of the building and real property located at 5225Meeker Drive, Kalama, and Cowlitz County, WA 98625 and intend to reside thereon andclaim the building and real property thereon as my homestead.

B. The legal description of the premises is:

See exhibit "A" attached hereto and by this reference incorporated herein

C. The estimated actual cash value of the property is $ ~~~ ~

SIGNED AND DATED in 9Ck ~4.ftt~t , Washington this d~ day of2013.

Mark Leonard

Declaration ojllomestead, Page ! af2

Exhibit C Page 1 of 3


3478590 04/26/2Q13 12:48:30 PM 2 of 3HMSTD ANITi4 BALDWIN

Cowlitz County, WA

STATE OF WASHINGTON )ss.

COUNTY OF C~VJLITZ )

ON THIS DAX personally appeared before me Mark Leonard, to me known to bethe individual described in the foregoing instrument, and acknowledged to me iliat hesigned the same as his free and voluntary act and deed for the uses and purposesmentioned therein.

GIVEN under my hand and official seal this (, day of ~,; ,_ , 2013.

SUE Sg,,gJ

~̀SgtiON F~'Q~

U NOTARY~' PUBLIC

~9~ qy 10 ~,6

~'F wectl~~

Declaration ojNomestead, Page 2 of 2

~T~~~

NOTARY PUBLIC m ttnd for the State ofWashington, residing at /(~} vks,r.A-My commission expires: ~'- ~c~ - l (e



3478590 04/26/2013 12:48:30 PM 3 of 3 Cowlitz County, WAHMSTD ANITA BALDWIN

Parcel 1:

A portion of tha James Rockey Donation Land Ciafm in Sect(on 8, 7ownshlp 8 hforth, Ranget West of then Willamette Meridian described as follows:

8sginning at the section comer common to Sections 5,8,7, and S In sold Tt~wnship andRange;Thencs North 59° 15' DO° West a distance of 492.2 teat to a point on the center fine of OldPQ~ic H(ghway;Thence South 17° 25' i 1' West a distance of 2~i.t3 feet to a faint on the eactf~on linebetween Sectloi~s 6 and 7;Thertca hlorth b5° 45' 12" West a distance of 957.66 feet,Thence North 88° 24' S3" West a dlstanae of g28.19 fast:Theca North 1~° 23' S3" Wsst a distance of X80.38 feat;Thence Soutar 88° 24' b3" East a distance of 221.64 fleet to th~ trua point of beginning;Thence hlatth 39° 40' ~3°. West a distance of 450.48 ieat:Thence Soufh 73° 33' S6" West a distance of 28',28 feel to the East line of tfia right of way ofIrnsrstate Highway No. 6 v~ich point sfialt be.known as point "A`; Thence Northwesterlyalong sold East Ifne to an ir~tersectlon wfth the Southwesterly right of way sine of Ofd PacificHighway;Thence Southeasterly along the Southwaster(y right of way line of ~1d Fadfic Hl~hway to apoint which is due Easi of the true point of beginning;Thence West a distance of 191 feet more or less to the true point of beginn(ng.

Except that por7bn conveyed under Auditor's FIIe No, 90082y027.

Parcel 2:

A Vast of land {ocafed within iha James Rockey Donation Land Cialm 1n Section 6, Township6 North, Range i West of the 1Nlllamette Merld(an more particutarfy described as fflllows:

Beglnnin~ at the salon corner common to Sections 5,8,7, and 8. Township 6 North, Range1 West of the Willamette Meridian;Thence North 59° 15' 00" West ~ distance of 492.20 feet to a paint on the cscrterl~ne of theOld Pa~cffic Highway;Thence .South 17° 25' 1 t" West a distance of 251.13 feat to an Iron pipe on the section Ifnebetween Section 6 and 7;Thence North b5° 45' ~2° West a distance of 951.65 feet to an Iron pipe which is a propertycomer of land saki to Mr. J. Adams:Thence. North.86° 24' 53" West a distance of 428.18 feet;Thence North 13° 23' S3' Wesk a dlsiance at 464.38 iaet to the true point of begfnn{n~:Thence South 88 ° 24' S3" East a distance of 227.64 feet;

Thence North 39' 40' 53° Wesf a distance of X49.93 feet to the Southeast corner of a tractof Iand descrihad (n Auditor's File No. 8i 1028032:Thence South 65 ° 51' 29" Wesi 118.90 feet to the Easterly right of way 1(ne of 1-5; Thenoea(ang sold 1-5 right of way Ifne Southeasterly in the tNe polrrt of beginn(ng.

Situate 1n the County of Cowlitz, S1ata of Washtngton

EXHIBIT "A"



Exhibit D Page 1 of 11

1

2

3

4

5

6

7

8

IN THE SUPERIOR COURT OF THE STATE OF WASHINGTON

FOR THE COUNTY OF COWLITZ

9 COWLITZ BANK, a Washington charteredcommercial banle,

10Plaintiff,

11vs.

12MARK LEONARD and SERENA

13 LEONARD, husband and wife,

14 Defendant.

15

Case No. 09-2-02188-1

PLAINTIFF'S MOTION TOWITHDRAW WRIT OF EXECUTIONAND CANCEL SHERIFF'S SALE

16 The Federal Deposit Insurance Corporation as Receiver ("FDIC-R") for

17 plaintiff Cowlitz Banle ("Plaintiff') moves this court to withdraw its Writ of Execution issued

18 by this Court on April 25, 2013 directing the Cowlitz County Sheriff to satisfy Plaintiffs

19 judgment against defendant Mark Leonard ("Leonard") out of real property owned by

20 Leonard located at 5225 Meeker Drive in Kalama, WA 98625 and to order the cancellation

21 of the sale currently scheduled for June 14,2013.

22 This motion is supported by the following points and authorities and the

PLAINTIFF'S MOTION TO WITHDRAW WRIT AND CANCEL SALEPage 1 of5

689371

BLACK HELTERLINE LLP805 SW Broadway, Ste. 1900

Portland, OR 97205(503) 224-5560



1 declaration of Ronald T. Adams, filed herewith.

2 FACTS

3 On April 25, 2013, this Court issued a Writ of Execution directing the Cowlitz

4 County Sheriff to satisfy Plaintiff s judgment against Leonard out of real property owned by

5 Leonard located at 5225 Meeker Drive in Kalama, WA 98625.

6 On April 30, 2013, the issued Writ of Execution was delivered to the Cowlitz

7 County Sheriffs office with a letter of instruction and the necessary fees to begin the process

8 for the Sheriffs sale. On May 8, 2013, the Sheriffs office provided notice of the sale to the

9 judgment debtor, Leonard. Service of the notice by mailing and posting was completed by

10 the Sheriffs office on the same day. Service of the notice by mailing was also completed on

11 May 9, 2013 by the judgment creditor's counsel as required by RCW 6.21.030(1).

12 The Sheriffs sale is currently scheduled for June 14,2013 at 10:00 am.

13 On May 24,2013, Leonard filed a late Proof of Claim with the FDIC-R

14 ("Claim"). The Claim form provides: "The penalty for knowingly making or inviting

15 reliance on a false, forged, or counterfeit statement, document, or thing for the purpose of

16 influencing in any way the action of the Federal Deposit Insurance Corporation is a fine of

17 not more than $1,000,000 or imprisonment for not more than 30 years or both (18 U.S.C.

18 Section 1007)." Thereafter, in the Claim, Mr. Leonard states:

19 "The recent FDIC posting in Cowlitz County (Affidavit ofMailing and posting) was filed on 5/9/2013. * * *Totally

20 untrue, as are the charges listed in Adam's documents thatMark Leonard has been uncooperative or that the Kalama

21 facility is not a home dwelling per the Homestead Act etc."

22 (emphasis added)


689371


Portland, OR 97205(503) 224·5560



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POINTS AND AUTHORITIES

Relevant Law

RCW 6.13.040 automatically exempts up to $125,000 from the execution sale

4 of a homestead property described in RCW 6.13.010. The basic homestead definition is "real

5 or personal property the owner uses as a residence." RCW 6.13.010(1). Properties which are

6 exempted from a homestead claim under RCW 6.13.080 do not exclude commercial

7 warehouse properties, leaving open the possibility that an owner could homestead a

8 warehouse property. Because ofthe automatic nature of a homestead claim, it is necessary to

9 contest the claim as provided by RCW 6.13.070(2).

10 B. Analysis

11 Until the FDIC-R can determine if the property can be claimed as a homestead

12 by Leonard, and if so, whether the value of the property exceeds the homestead exemption of

13 $125,000, the FDIC-R does not wish to force the sale of the property used by Tytan

14 International, Inc. as its business.

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CONCLUSION

For the reasons set forth above, Plaintiff requests that the court grant its


689371


Portland, OR 97205(503) 224-5560



1 motion and withdraw the Writ of Execution issued April 25, 2013 and the cancel the sale

2 currently scheduled for June 14,2013.

3 DATED this (OP- day of June, 2013.

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BLACK HELTERLINE LLP

~J~/l' fJ1'( ----=-"JA L_ ~By: J ~d v l.C{)I-e) , CYVVv

Ronald T. Adams, WSBA No. [email protected]: (503) 224-6148Of Attorneys for FDIC as Receiver forPlaintiff Cowlitz Bank


689371


Portland, OR 97205(503) 224"5560



1 CERTIFICATE OF SERVICE

2 I hereby certify that I served a true and correct copy of the foregoing

3 PLAINTIFF'S MOTION TO WITHDRAW WRIT OF EXECUTION AND CANCEL

4 SHERIFF'S SALE, DECLARATION OF RONALD T. ADAMS IN SUPPORT, and

5 proposed ORDER upon:

6 Mark Leonard160 Horseshoe Bend Estates

7 Kelso, WA 98626

8 Mark LeonardP.O. Box 1249

9 Kalama, WA 98625

10 ~ by mailing a true copy thereof in a sealed, first-class postage prepaidenvelope, addressed to said attorneys' addresses as shown above and deposited in the United

11 States Mail at Portland, Oregon on the date set forth below.

12 D by causing a true copy thereof to be hand-delivered to said attorneys'addresses as shown above on the date set forth below.

13D by sending a true copy thereof via overnight courier in a sealed, prepaid

14 envelope, addressed to said attorneys' address as shown above on the date set forth below.

15 D by faxing a true copy thereof to said attorneys' facsimile numbers asshown above on the date set forth below.

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D by sending a true copy thereof via electronic mail to said attorneys'addresses as shown above on the date set forth below.

DATED this ({57lr;;y"of June, 2013.

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19 BLACK HELTERLINE LLP, .. ,.....".~,.~.,)

By: I -~"VW'(r5i)~:1Ronald T. Adams, WSBA No. [email protected] Attorneys for FDIC as Receiver forPlaintiff Cowlitz Bank


689371

BLACK HELTERLINE LLP805 SW Broadway, Sle, 1900

Portland, OR 97205(503) 224-5560



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IN THE SUPERIOR COURT OF THE STATE OF WASHINGTON

FOR THE COUNTY OF COWLITZ

10 COWLITZ BANK, a Washington charteredcommercial banle,

11Plaintiff,

12vs.



Case No. 09-2-02188-1

DECLARATION IN SUPPORT OFPLAINTIFF'S MOTION TOWITHDRAW WRIT OF EXECUTIONAND CANCEL SHERIFF'S SALE

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Defendant.

17 State of Oregon )) ss.

18 County of Multnomah )

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I, Ronald T. Adams, being first duly sworn, depose and say:

On Apri125, 2013, this Court issued a Writ of Execution directing the Cowlitz

21 County Sheriff to satisfy Plaintiff s judgment against defendant Mark Leonard ("Leonard")

22 out of real property owned by Leonard located at 5225 Meeker Drive in Kalama, WA 98625.

DECLARATION IN SUPPORT OF PLAINTIFF'S MOTION TO WITHDRAW WRITAND CANCEL SALE Page 1 of 2 689378


Portland, OR 97205(503) 224-5560



1 2. On April 30, 2013, the issued Writ of Execution was delivered to the Cowlitz

2 County Sheriff s office with a letter of instruction and the necessary fees to begin the process

3 for the Sheriff s sale.

4 3. On May 8, 2013, the Sheriffs office provided notice of the shale to the

5 judgment debtor. Service of the notice by mailing and posting was completed by the Sheriffs

6 office on the same day. Service of the notice by mailing was also completed on May 9,2013

7 by the judgment creditor's counsel as required by RCW 6.21.030(1).

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4.

5.

The Sheriffs sale is currently schedule for June 14, 2013 at 10:00 am.

On May 24,2013, Leonard filed a late Proof of Claim with the FDIC alleging

10 that the real property located at 5225 Meeker Drive in Kalama, WA 98625 was a "home

11 dwelling per the Homestead Act." A copy of the cover page and page 8 of the Proof of Claim

12 is attached as Exhibit A.

13 I HEREBY DECLARE THAT THE ABOVE STATEMENTS ARE TRUE

14 TO THE BEST OF MY KNOWLEDGE AND BELIEF, AND THAT I UNDERSTAND IT

15 IS MADE FOR USE AS EVIDENCE IN COURT AND IS SUBJECT TO PENALTY FOR

16 PERJURY.

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DATED this~ day of June, 2013.

G<ovWJ\JA~Ronald T. Adams

DECLARATION IN SUPPORT OF PLAINTIFF'S MOTION TO WITHDRAW WRITAND CANCEL SALE Page 2 of2 689378

BLACK HELTERLINE LLP805 SW Broadway, Ste, 1900

Portland, OR 97205(503) 224·5560Case 13-43836-PBS Doc 27 Filed 08/29/13 Ent. 08/29/13 17:26:07 Pg. 25 of 29


Claimant ID: NS1027501091, Barcode Value: FD00118456, Fund: 10275

Federal Deposit Insurance Corporationas Receiver for

The Cowlitz Bank, Longview, WA

PROOF OF CLAIM

REDACTED1. SSNffax 10 No.

2, The undersigned !1a.rk L--eQ\I\Q.t'J(Name of person completing tile Proof of Claim)

hereby states that the subject Financial Institution, now In:liquldatlQn ("Failed Institution"), Is Indebted

3. to lYle.. (j\ r",f-e r Vl Q±:D /1\ {I.. f I Tn (, , (the 'Claimant") In the sum of(Name of Claimant)

4. $ / \ S- WIll/;0 VI

5. Description of Claim

8. FIRM

9. ADDRESS

(CltY,Stale, and ',ZIP Code)

10, TELEPHONE NUMBER(S)

The penalty for knoWingly making or InViting reliance on a false, forged, or counterfeit statement, document, or thing for the purpose ofInfluencing In any way the action of the Federal Deposit Insurance Corporation Is a fine of not more than $1,000,000 or Imprisonment for notmore than 30 years or both (18 U.SiC. Secllon 1007),

IMPORTANT NOTE: The bar code at the top of this Proof of Claim Is unique to this claim and may not be re-used for other claims which youmay have or by other potential claimants, If you 'have other unrelated claims, you must file a separate Proof ofClaim with Its own unique barcode. Additional Proof of Claim forms may be found on the FDIC web slta or obtained by mall at the respective addresses Indicated In theInstructions, Re·use of this Proof of Claim may result In processing delays or the rejection of your olaim.

PRIVACY ACTS'f.ATEMENT

The FDIC Is authorized to request this Information from you by 12 U,S,C, § 1819, 1821, and l:!xecutlve Order 9397, The purpose forcollecting the Information Is 10 support the administration of claims against the failed financial Institutlon,Furnlshlng the requestedinformation Is voluntary, but failure to provide the requested Information In whole or In part may delay or prohibit the processing of yourclaim, The Information prOVided by Individuals is protaeted by the Privacy Act, 6 USC 562(a). The Information may be furnished to thirdparties as authorized by law or used according to any of the routine uses described In the FDIC Insured Financial Institution LiquidationRecords (30·64-0013) System of Records. This System of Records Is available for review at www,fdlc.govlregulatlonsllawslrulesl2000·4060.html#20QQ~O-64-·0013. If you have questions or ooncerns about the collecllon or use of the Information, you may contact the FDIC'sChief Privacy Officer at [email protected],

FDIC 7200/19 (12-12)

Exhibit APage 1 of 2



REDACTED

The recent FDIC posting in Cowlitz County (Affidavit ofMailing and posting) was filed on 5/9/2013. It was on the Ihubtalk forum posting same day under the posters alias name of"Anvil" ho added his bias conclusions. It has now been removed.Tytan still has never been sent that document! Furthermore thatdocument says that Mark Leonard is his own attorney and hasnot had legal counsel since Wes Johnson handled the case. AttyAdams has had numerous correspondences with Michael Longand Matt Anderson. Totally untrue, as are the charges listed inAdam's documents that Mark Leonard has been uncooperativeor that the Kalama facility is not a home dwelling per theHomestead Act etc.

REDACTED

Exhibit APage 2 of2



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ENDORSED FILEDSUPERIOR COURT

JUN 10 2013

COWLITZ COUNTYBEVERLY RLITTLE, Clerk

SUPERIOR COURT OF WASHINGTON

FOR COWLITZ COUNTY

10 COWLITZ BANK, a Washington charteredcommercial bank,

11Plaintiff,

12vs.



Case No. 09-2-02188-1

-tJ4@j')0SeGj-·~·

ORDER GRANTING MOTION TOWITHDRAW WRIT OF EXECUTIONAND TO CANCEL SHERIFF'S SALE

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Defendant.

The Court having CONSIDERED the Motion to Withdraw Writ of Execution

18 and Cancel Sale filed herein by the Federal Deposit Insurance Corporation as Receiver for

19 Cowlitz Banle dba Bay Banlc, and it appearing that the FDIC as Receiver's Motion is well-

20 taken in light of the undisputed facts presented to this Court,

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ORDER GRANTING MOTION TO WITHDRAW WRIT ANDCANCEL SALE Page 1 689383



1 IT IS HEREBY ORDERED that the Federal Deposit Insurance Corporation as

2 Receiver for Cowlitz Bank's Motion to Withdraw Writ of Execution and Cancel Sale is

3 GRANTED, that the Writ of Execution is withdrawn, and that the sale scheduled for June 14,

4 2013 at 10:00, or any postponement of such sale, is cancelled.

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10 Submitted by:

DATED this::L dayof~, 2013.

MICHAEL H.EVANSSuperior Court Judge

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11 BLACK HELTERLINE LLP

0l··1·~I\/~By:J", ~L/ 0\ ) I')\J~J--JRonald T. Adams, WSBA No. 36013

14 [email protected]: (503) 224-6148Of Attorneys for FDIC as Receiverfor Plaintiff Cowlitz Bank

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ORDER GRANTING MOTION TO WITHDRAW WRIT ANDCANCEL SALE Page 2 689383



Portland, OR 97205 (503) 224-5560

Page 1 of 2 – NOTICE OF OBJECTION TO EXEMPTIONS AND HEARING 737571

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The Hon. Paul B. Snyder Chapter 7

Federal Building 500 W. 12th Street, 2nd Floor

Vancouver, Washington 98660 Hearing Date: October 1, 2013

Hearing Time: 9:00am Response Date: September 24, 2013

UNITED STATES BANKRUPTCY COURT WESTERN DISTRICT OF WASHINGTON

AT TACOMA

In re Mark A. Leonard, Debtor.

Case No. 13-43836-PBS

NOTICE OF OBJECTION TO EXEMPTIONS AND HEARING THEREON

The Federal Deposit Insurance Corporation, as Receiver for Cowlitz bank has

filed an Objection to Exemptions.

PLEASE TAKE NOTICE THAT THE HEARING IS SET as follows:

JUDGE: Paul B. Snyder TIME: 9:00 am

PLACE: Vancouver, WA DATE: October 1, 2013

IF YOU OPPOSE the Motion, you must file your written response with the

Court Clerk, serve two (2) copies on the Judge’s chambers, and deliver copies to the

Case 13-43836-PBS Doc 27-1 Filed 08/29/13 Ent. 08/29/13 17:26:07 Pg. 1 of 3


Portland, OR 97205 (503) 224-5560

Page 2 of 2 – NOTICE OF OBJECTION TO EXEMPTIONS AND HEARING 737571

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undersigned at the Black Helterline LLP law firm NOT LATER THAN THE RESPONSE

DATE, which is September 24, 2013.

IF NO RESPONSE IS TIMELY FILED AND SERVED, the Court may, in its

discretion, GRANT THE MOTION PRIOR TO THE HEARING, WITHOUT FURTHER

NOTICE, and strike the hearing.






Portland, OR 97205 (503) 224-5560

CERTIFICATE OF SERVICE 737571

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CERTIFICATE OF SERVICE

I hereby certify that I served a true and correct copy of the foregoing NOTICE

OF OBJECTION TO EXEMPTIONS AND HEARING THEREON upon:

Mark A. Leonard PO Box 1249 Kalama, WA 98625 Debtor

GMAC Mortgage, LLC ATTN: Bankruptcy Department 1100 Virginia Dr. Fort Washington, PA 19034 Special Notice Request

McCarthy &Holthus, LLP 19735 10th Ave. NE, Ste. N200 Poulsbo, WA 98370 Special Notice Request

by mailing a true copy thereof in a sealed, first-class postage prepaid

envelope, to said addresses as shown above and deposited in the United States Mail at Portland, Oregon on the date set forth below.

And upon:

Russell D. Garrett [email protected] Chapter 7 Trustee

Robert C. Brungardt [email protected] Debtor’s Attorney

US Trustee’s Office [email protected] US Trustee

by electronic notification via the Court’s ECF system.





13-43836-PBS FDIC Objection to Exemptions

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Transcript of 13-43836-PBS FDIC Objection to Exemptions