JMORAN & ASSOCIATES, LOAN AUDITORS

Forensic Loan Audit prepared for: The Law Office of: TO BE DETERMINED Examination Date: 00-00-0000 On behalf of: Borrower Co-Borrower Address City, IL Zip Code, County
15345 S. Cicero Ave., Oak Forest, IL. 60452 Phone (773)445-1200 Fax (708)687-8110 email: johnbmoran@me.com

QUICK START
HOW TO GET THE MOST OUT OF THIS AUDIT REPORT
This report is divided into four (4) sections as listed below.

Section 1 will provide all the particular information regarding this transaction, including the names and addresses of all parties involved.

Section 2 is the test section where the examiner conducts tests based on the documents received from the Borrower, the Attorney and a search of the County Public Records. The findings may be a basis for Affirmative Defense, Answer, Motion to Dismiss, etc.

Section 3 is the Addendum section, which contains additional information and discussion related to the Section 2 tests performed by the Examiner.

Section 4 is the Exhibit section, which contains documents that were pulled from the Audit documents provided by the Borrower, or Attorney that may be used as an Exhibit in a Pleading or Motion to make a particular point. The Exhibits will include all documents found in the County public record search as well.

SECTION 1 (INFORMATION SECTION) Disclaimer letter to Law Firm and Client Interested Parties to this Transaction Loan Summary Early Disclosure and Closing Document Checklist Additional Documents Received for Examination but not included in the Above Checklist Attorney Securitization and Certification (if applicable) This document may be found in Section 4 Exhibits.

SECTION 2 (TEST SECTION) Real Estate Settlement Procedures Act Test Truth in Lending Test APR Recalculation Test Home Ownership Equity Protection Act Test Illinois High Cost Test Legal Description Test Complaint Test Lender/ Broker Licensing Test Secretary of State Registration Test MERS and Assignment Test Stated/ Verified Income Test Yield Spread Premium Test Homestead Test Appraisal Test Additional Examiner Comments Examiner Comments on Subordinate Liens

SECTION 3 (ADDENDUM SECTION) Mortgage Document Condition Precedent Addendum Promissory Note- Securitization Addendum Breach of Fiduciary Duty Addendum (applies only to stated income loans) Truth in Lending Addendum MERS Addendum (applies only to mortgages registered in the MERS system) HUD Addendum (applies only to HUD insured Mortgages)

SECTION 4 (EXHIBITS FROM BORROWER AND ATTORNEY PROVIDED DOCUMENTS AND PUBLIC RECORDS)

SECTION 1
INFORMATION SECTION
Disclaimer letter to Law Firm and Client Interested Parties to this Transaction Loan Summary Early Disclosure and Closing Document Checklist Additional Documents Received for Examination but not included in the Above Checklist Attorney Securitization and Certification (if applicable) This document may be found in Section 4 Exhibits.

DATE, 2011 To: Law office of Address City, State Zip Code In re: In the Matter of Borrower and Co-Borrower, for the property commonly known as: Address, City, State, Zip Code, County To Whom It May Concern, The loan transaction for the above-referenced borrower/property has been examined for violations of the Truth in Lending Act 15 USC 1601, Home Ownership Equity Protection Act 12 CFR 226.32, the Real Estate Settlement Procedures Act 12 USC 2601, Illinois High Risk Home Loan Act, as well as violations of other state and federal laws.

Disclaimer: JMoran and Associates, Loan Auditors, makes no representations and warranties of any kind, and assumes no liability whatsoever for any audit report findings, including incorrect findings arising from inaccurate data, improper classification of data, or erroneous interpretations of the loan data submitted for review. Important Information Procedures applied to all client supplied documents 1. All documents provided for the audit are treated as true and correct representations of the final and original mortgage loan documents. 2. The audit scope is limited to the documents provided and results are based solely on the documents provided 3. The results provided in this audit are for information use only and is not a legal opinion. Sincerely yours,

John Bernard Moran Examiner

INTERESTED PARTIES TO THIS TRANSACTION

MORTGAGE BROKER LENDER SERVICER INVESTOR PLAINTIFF PLAINTIFFS ATTORNEY NOTARY ON MORTGAGE SIGNOR ON ASSIGNMENT NOTARY ON ASSIGNMENT APPRAISER SETTLEMENT AGENT/TITLE CO. BUYERS ATTORNEY SELLERS ATTORNEY

LOAN SUMMARY
TYPE OF LOAN ORIGINATION DATE CLOSING DATE PROPERTY TYPE AMORTIZATION TYPE AND TERM LOAN NUMBER LIEN POSITION LOAN PURPOSE OCCUPANCY LOAN AMOUNT SALES PRICE APPRAISAL VALUE NOTE RATE ARM INFORMATION INITIAL FIXED RATE TERM OF INITIAL FIXED RATE FIRST CHANGE RATE ADJUSTMENT PERIOD CEILING FLOOR 1ST PERIOD CAP PERIOD CAP ARM CAP LIFE INDEX MARGIN LTV CLTV PRIMARY HOUSING RATIO TOTAL DEBT TO INCOME RATIO SUMMARY ON SECOND LIEN FIXED RATE TERM PRE-PAYMENT FEATURE APR ON TIL TOTAL CLOSING COST H-15 TREASURY MATURITY

An X marked in the column 1st and 2nd (Mortgages) indicates documents received. EARLY DISCLOSURE AND CLOSING DOCUMENT CHECKLIST 1003-Uniform residential Loan Application Settlement Cost Booklet Good Faith Estimate Truth in Lending Affiliated and/or Controlled Business Disclosure ARM Disclosure (if applicable) CHARM Booklet (if applicable) Interest Only Disclosure (if applicable) Negative Amortization Disclosure (if applicable) Prepayment Penalty Disclosure (if applicable) Transfer of Servicing Disclosure Credit Score Disclosure Privacy Policy Disclosure Illinois Escrow Account Act Disclosure Right to Copy of Appraisal Equal Credit Opportunity Act Disclosure Homeowner Insurance Disclosure Tangible Net Benefit Disclosure Rate Lock Agreement Mortgage Loan Commitment Occupancy Affidavit HUD 1 Preliminary (for one day advance inspection) MORTGAGE BROKER EARLY DISCLOSURES Loan Brokerage Agreement Loan Brokerage Disclosure Statement Borrower Information Document GOVERNMENT LOAN EARLY DISCLOSURES HUD/VA 2900 Assumption Notice Informed Consumer Choice Disclosure FHA Important Notice to Homeowner ADDITIONAL DOCUMENTS RECEIVED AT CLOSING Mortgage-Deed of Trust (and applicable Riders) Note (Fixed or ARM) HUD 1 (Final) Good Faith Estimate and/or Itemization (Final) Truth in Lending and TIL Disclosure Flood Notification Initial Escrow Account Disclosure / Waiver First Payment Letter Notice of Right To Cancel (refinance only) 1st 2nd SIGNED DATED

ADDITION DOCUMENTS RECEIVED FOR EXAMINATION BUT NOT INCLUDED IN THE ABOVE CHECKLIST

SECTION 2
TEST SECTION
Real Estate Settlement Procedures Act Test Truth in Lending Test APR Recalculation Test Home Ownership Equity Protection Act Test Illinois High Cost Test Legal Description Test Complaint Test Lender/ Broker Licensing Test Secretary of State Registration Test MERS and Assignment Test Stated/ Verified Income Test Yield Spread Premium Test Homestead Test Appraisal Test Additional Examiner Comments Examiner Comments on Subordinate Liens

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REAL ESTATE SETTLEMENT PROCEDURES TEST

EARLY AND FINAL DISCLOSURE OF CREDIT TERMS
FDIC 6500 Consumer Protection Section 12 CFR 226.19--Certain Mortgage and Variable Rate Transactions. 19(a)(1)(i) Time of disclosure. 1.Coverage. This section requires early disclosure of credit terms in mortgage transactions that are secured by a consumer's dwelling (other than home equity lines of credit subject to 226.5b or mortgage transactions secured by an interest in a timeshare plan) that are also subject to the Real Estate Settlement Procedures Act (RESPA) and its implementing Regulation X, administered by the Department of Housing and Urban Development (HUD). To be covered by 226.19, a transaction must be a federally related mortgage loan under RESPA. "Federally related mortgage loan" is defined under RESPA (12 U.S.C. 2602) and Regulation X (24 CFR 3500.2), and is subject to any interpretations by HUD. 2. Timing and use of estimates. The disclosures required by 226.19(a)(1)(i) must be delivered or mailed not later than three business days after the creditor receives the consumer's written application.

PASS FAIL
Special information booklet at time of loan application
24 CFR 3500.6 (a) Lender to provide special information booklet. Subject to the exceptions set forth in this paragraph, the lender shall provide a copy of the special information booklet to a person from whom the lender receives, or for whom the lender prepares, a written application for a federally related mortgage loan. When two or more persons apply together for a loan, the lender is in compliance if the lender provides a copy of the booklet to one of the persons applying.

Good faith estimate

24 CFR 3500.7 (a) Lender to provide. Except as provided in this paragraph (a) or paragraph (f) of this section, the lender shall provide all applicants for a federally related mortgage loan with a good faith estimate of the amount of or range of charges for the specific settlement services the borrower is likely to incur in connection with the settlement. The lender shall provide the good faith estimate required under this section (a suggested format is set forth in appendix C of this part) either by delivering the good faith estimate or by placing it in the mail to the loan applicant, not later than three business days after the application is received or prepared. (f) Open-end lines of credit (home-equity plans) under Truth in Lending Act. In the case of a federally related mortgage loan involving an open-end line of credit (home-equity plan) covered under the Truth in Lending Act and Regulation Z, a lender or mortgage broker that provides the borrower with the disclosures required by 12 CFR 226.5b of Regulation Z at the time the borrower applies for such loan shall be deemed to satisfy the requirements of this section.

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Use of HUD1 or HUD1A settlement statements

24 CFR 3500.8 (a) Use by settlement agent. The settlement agent shall use the HUD1 settlement statement in every settlement involving a federally related mortgage loan in which there is a borrower and a seller. For transactions in which there is a borrower and no seller, such as refinancing loans or subordinate lien loans, the HUD1 may be utilized by using the borrower's side of the HUD1 statement. Alternatively, the form HUD1A may be used for these transactions. Either the HUD1 or the HUD1A, as appropriate, shall be used for every RESPAcovered transaction, unless its use is specifically exempted, but the HUD1

One-day advance inspection of HUD1 or HUD1A

24 CFR 3500.10 (a) Inspection, one day prior to settlement upon request by the borrower. The settlement agent shall permit the borrower to inspect the HUD1 or HUD1A settlement statement, completed to set forth those items that are known to the settlement agent at the time of inspection, during the business day immediately preceding settlement. Items related only to the seller's transaction may be omitted from the HUD1.

Prohibition against kickbacks and unearned fees

24 CFR 3500.14 (a) Section 8 violation. Any violation of this section is a violation of section 8 of RESPA (12 U.S.C. 2607) and is subject to enforcement as such under 3500.19. (b) No referral fees. No person shall give and no person shall accept any fee, kickback or other thing of value pursuant to any agreement or understanding, oral or otherwise, that business incident to or part of a settlement service involving a federally related mortgage loan shall be referred to any person. Any referral of a settlement service is not a compensable service, except as set forth in 3500.14(g)(1). A company may not pay any other company or the employees of any other company for the referral of settlement service business

Affiliated business arrangements

24 CFR 3500.15 (a) General. An affiliated business arrangement is defined in section 3(7) of RESPA (12 U.S.C. 2602(7)). (b) Violation and exemption. An affiliated business arrangement is not a violation of section 8 of RESPA (12 U.S.C. 2607) and of 3500.14 if the conditions set forth in this section are satisfied. Paragraph (b)(1) of this section shall not apply to the extent it is inconsistent with section 8(c)(4)(A) of RESPA (12 U.S.C. 2607(c)(4)(A)). (1) The person making each referral has provided to each person whose business is referred a written disclosure, in the format of the Affiliated Business Arrangement Disclosure Statement set forth in appendix D of this part, of the nature of the relationship (explaining the ownership and financial interest) between the provider of settlement services (or business incident thereto) and the person making the referral and of an estimated charge or range of charges generally made by such provider (which describes the charge using the same terminology, as far as practical, as section L of the HUD 1 settlement statement). The disclosures must be provided on a separate piece of paper no later than the time of each referral or, if the lender requires use of a particular provider, the time of loan application, except that: (i) Where a lender makes the referral to a borrower, the condition contained in paragraph (b)(1) of this section may be satisfied at the time that the good faith estimate or a statement under 3500.7(d) is provided;

Title companies
24 CFR 3500.16 No seller of property that will be purchased with the assistance of a federally related mortgage loan shall violate section 9 of RESPA (12 U.S.C. 2608). Section 3500.2 defines required use of a provider of a settlement service. Section 3500.19(c) explains the liability of a seller for a violation of

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this section.

Escrow accounts
24 CFR 3500.17 Initial escrow account statement means the first disclosure statement that the servicer delivers to the borrower concerning the borrower's escrow account. The initial escrow account statement shall meet the requirements of 3500.17(g) and be in substantially the format set forth in 3500.17(h).

Transfer of servicing disclosure

24 C.F.R. 3500.21 (b) Servicing Disclosure Statement and Applicant Acknowledgement; requirements. (1) At the time an application for a mortgage servicing loan is submitted, or within 3 business days after submission of the application, the lender, mortgage broker who anticipates using table funding, or dealer who anticipates a first lien dealer loan shall provide to each person who applies for such a loan a Servicing Disclosure Statement

Disclosures of Credit Scoring Information and Notice to the Home Loan Applicant
Section 212(c) of the FACT Act amends Section 609 of the FCRA by adding a subsection (g). Subsection 609(g) applies to all persons making or arranging loans and who use a consumer credit score, as defined in Subsection 609(f) of the FCRA, in connection with a consumer's application for a closed end loan or the establishment of an open end loan for a consumer purpose that is secured by one (1) to four (4) units of residential real property. Although Subsection 609(g) of the FCRA refers to these persons as "lenders", the provisions under this Subsection will apply to both lenders and brokers of residential mortgage loans. This article will collectively refer to lenders and brokers as "lenders". Fact 1 - Under Subsection 609(g) of the FCRA, a lender must provide the following to the consumer as soon as reasonably practicable: 1. The credit score obtained from a consumer reporting agency or which was developed and used by the user of the information (the "credit scoring information"); and 2. The name, address, and telephone number of each consumer reporting agency providing a credit score that was used together with a notice entitled "Notice to the Home Loan Applicant".

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Disclosure of institution privacy policy

15 USC 6803. (a) Disclosure required At the time of establishing a customer relationship with a consumer and not less than annually during the continuation of such relationship, a financial institution shall provide a clear and conspicuous disclosure to such consumer, in writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title, of such financial institutions policies and practices with respect to (1) disclosing nonpublic personal information to affiliates and nonaffiliated third parties, consistent with section 6802 of this title, including the categories of information that may be disclosed; (2) disclosing nonpublic personal information of persons who have ceased to be customers of the financial institution; and (3) protecting the nonpublic personal information of consumers.

Responsibilities of furnishers of information to consumer reporting agencies

15 USC 1681s2. (7) Negative information (A) Notice to consumer required (i) In general If any financial institution that extends credit and regularly and in the ordinary course of business furnishes information to a consumer reporting agency described in section 1681a (p) of this title furnishes negative information to such an agency regarding credit extended to a customer, the financial institution shall provide a notice of such furnishing of negative information, in writing, to the customer.

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TRUTH IN LENDING TEST

Where a material disclosure was not given or inaccurate (APR, finance charge, amount financed, payment schedule, or total of payments), or consumer was not provided with proper notice of right to cancel, the right of rescission is extended to 3 years Statutory (up to $4000 per violation) and actual damages, as well as attorney's fees, may also be available for the violations noted in accordance with 12 CFR 226.23 (3) with tolling the statute of limitations. SEE TRUTH IN LENDING ADDENDUM FOR ADDITION DISCUSSION ON THIS MATTER.

PASS

FAIL
Notice of Right to Cancel (2 copies per borrower; signed and dated). 12 CFR 226.23(b) Final TIL Disclosure Statement provided. 12 CFR 226.17, 226.18. Itemization of amount financed. 12 CFR 226.18(c) (Final GFE can be substituted) Prepayment Penalty disclosed. 12 CFR 226.18(k) Property Hazard Insurance disclosure (Allows consumer to choose carrier) 12 CFR 226.4(d)(2) Negative-amortization payment adequately disclosed. 15 USC 1638,12 CFR 226.17-18 Interest-only payment adequately disclosed. 15 USC. 1638, 12 CFR 226.17-18. Delivered estimates of disclosures (preliminary TIL and GFE) within 3 days of loan Application 12 CFR 226.19(a) "Consumer Handbook on Adjustable Rate Mortgages" (CHARM) provided within 3 days of application or equivalent disclosure ARM disclosure-see 12 CFR 226.19(b)] Payment Schedule correctly identified on TIL 12 CFR 226.18(g), (h).

Interest rate consistent and properly disclosed 1003, GFE, and Mortgage Loan Commitment 12CFR 226. 17-18

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APR RECALCULATION
Examination to calculate APR based upon the charges found in the final HUD 1 Settlement Statement and compare to the final Truth in Lending Disclosure AUDITOR FINDINGS: N/A - We are unable to determine if the APR is calculated correctly due to the fact we do not have the Final HUD 1, Final TIL or the Final Itemization of Amount Financed in the audit documentation. The APR is in compliance with the Final Truth in Lending Disclosure. The Lender over disclosed the fees by $62.00, which is compliant with the Act.

HOME OWNERSHIP EQUITY PROTECTION ACT

AUDITOR FINDINGS: The Initial Disclosures were included in the audit documentation. The appropriate TSI rate taken from the H-15 report is from , which is the month prior to the application date. The APR is plus 8% (1st Mortgage) equals . The APR on the Final Truth in Lending Disclosures is , and does not exceed the HOEPA calculation, and is in compliance with the Act. The total fees and points, paid on or before closing, do not exceed 8% of the loan amount. We are unable to conduct this test. The initial disclosures were not included in the audit documentation. The appropriate TSI rate taken form the H-15 report is calculated by using the month prior to the application date to properly conduct this test. Neither statute applies as the estimated APR _________% would not exceed 8% (first mortgage liens) or 10% (subordinate liens) over the comparable yield on Treasury securities, having comparable periods of maturity on the 15th day of the month immediately preceding the month in which the application is received by the creditor; nor do the total points and fees paid on or before closing exceed 8%, of the loan amount. Note: In the case where the preliminary Truth in Lending form is not provided for the audit. Auditor will conduct this test using the final Truth in Lending Disclosure.

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ILLINOIS HIGH COST

(Applies to City of Chicago and Cook County Ordinances-if applicable) AUDITOR FINDINGS: The Initial Disclosures were included in the audit documentation. The appropriate TSI rate taken from the H-15 report is from , which is the month prior to the application st Mortgage) equals date. The APR is plus 8% (1 . The APR on the Final Truth in Lending Disclosures is , and does not exceed the HOEPA calculation, and is in compliance with the Act. The total fees and points, paid on or before closing, do not exceed 8% of the loan amount. We are unable to conduct this test. The initial disclosures were not included in the audit documentation. The appropriate TSI rate taken form the H-15 report is calculated by using the month prior to the application date to properly conduct this test. Neither statute applies as the estimated APR _________% would not exceed 6% (first mortgage liens) or 8% (subordinate liens) over the comparable yield on Treasury securities, having comparable periods of maturity on the 15th day of the month immediately preceding the month in which the application is received by the creditor; nor do the total points and fees paid on or before closing exceed 5%, of the loan amount. Note: In the case where the preliminary Truth in Lending form is not provided for the audit. Auditor will conduct this test using the final Truth in Lending Disclosure.

LEGAL DESCRIPTION
Examination comparing the legal description of the Deed to the Mortgage, Assignments, Lis Pendens, and Complaint for accuracy. AUDITOR FINDINGS: There are no errors or discrepancies with the legal description found on the Complaint to Foreclose Mortgage, the Lis Pendens/Notice of Foreclosure, The Corporate Assignment of Mortgage, and the 1st Lien Mortgage Document. This was verified by comparing the aforementioned documents with the Quit Claim Deed dated June 1, 2002, and recorded, March 26, 2003, as found in the public records (Exhibit A). The Pin # is correct on all the documents.

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COMPLAINT
Auditor to examine the Complaint for any defects relating to the documents relied on in the Complaint.
SEE MORTGAGE DOCUMENT AND PROMISSORY NOTE ADDENDUMS FOR ADDITIONAL DISCUSSION ON THIS MATTER.

AUDITOR FINDINGS: The Complaint was not submitted for this examination, nor was a Lis Pendens/Notice of Foreclosure found in the public records, as of the date of this report.

The Complaint was submitted for this examination, and the information contained in the complaint is correct as matched with the documents reviewed for this audit. The exhibits attached are correct and complete including attachments that maybe required. Also attached to the audit, is the Lis Pendens/Notice of Foreclosure dated February 28, 2011, and recorded, February 28, 2011, as found in the public records (Exhibit B).

LENDER/BROKER LICENSING
Examination to verify compliance with State licensing regulations at the time of application for credit. AUDITOR FINDINGS: The Department of Financial and Professional Regulation Licensee Search, regarding the Broker, Greater Investment shows DBA as Mutual Trust Funding Corporation, which is inactive at all locations since 03/22/2005, 7/18/2004 and 3/22/2007 (Exhibit F). The Department of Financial and Professional Regulation Licensee Search, regarding the Lender, First Magnus Financial Corporation shows DBA Charter Funding, which is inactive as of 01/15/2008 (Exhibit G)

SECRETARY OF STATE REGISTRATION

Examination to determine Plaintiff registration as a domestic or foreign corporation to have authorization to file a lawsuit in State court.

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AUDITOR FINDINGS: The Corporation Search Results regarding the Broker, Greater Investment Mortgage Corporation, shows Dissolved Involuntary Dissolution, as of 02/09/2007 (Exhibit H). The Corporation Search Results regarding the Lender, First Magnus Financial Corporation, shows revoked, as of 05/08/2008 (Exhibit I).

MERS AND ASSIGNMENT

Examination of the MERS registration to verify the servicer and investor registration with MERS. Auditor search of the County records and report on the recorded assignments.
SEE MERS ADDENDUM FOR ADDITIONAL DISCUSSION ON THIS MATTER.

AUDITOR FINDINGS: The Mortgage was originated as a MERS Mortgage (12/21/2005). The MIN #10003922315005897-3, assigned by MERS, reveals that the SERVICER is Aurora Bank FSB and the INVESTOR is, U. S. Bank as Trustee (Exhibit J). The MIN Status is stating active. A search was performed with Fannie Mae and the result shows it is not the owner (Exhibit K). A search was performed with Freddie Mac and the result shows it is not the owner (Exhibit L). There was no copy of an Assignment of Mortgage found in the Will County Recorder of Deeds records. Attached to this audit is a copy of the Mortgage executed, December 21, 2006, and recorded, February 26, 2007, as found in the public records (Exhibit J)

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STATED/VERIFIED INCOME
Examination of the Uniform Residential Loan Application statement of income in relation to tax documents and/or feasibility of stated income in relation to type of occupation
SEE BREACH OF FIDUCIARY DUTY ADDENDUM FOR ADDITIONAL DISCUSSION ON THIS MATTER.

AUDITOR FINDINGS: The 1003 (Uniform Residential Loan Application) shows the income for the Borrower(s) at, $3,148 per month, as displayed in the Monthly Income and Combined Housing Expense Information Section, on page 2 of the form. There are no income documents included in the audit documentation, therefore we cannot state with certainty the underwriting standards used to approve this loan.

YIELD SPREAD PREMIUM

SEE BREACH OF FIDUCIARY DUTY ADDENDUM FOR ADDITIONAL DISCUSSION ON THIS MATTER.

Yield Spread Premium/Broker Premium. The broker received a Broker Premium of $_________ from ________________. To earn a Broker Premium the broker will increase the interest rate that the borrower will pay. It takes a borrower about three years to repay the Broker Premium. Once the three year repayment period has ended, the interest rate does not drop. Instead, the borrower continues to pay at the same interest rate and the lender reaps the benefits of the higher payment. Broker Premium significantly affects the borrowers payment and financial situation. Absent the presence of a separate fee agreement regarding Broker Premium and that the borrower agreed to pay such an

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excessive amount to the broker, and in evaluating the Broker Premium, it is the contention of the auditor that the broker and the lender have enjoyed the benefits of Unjust Enrichment as well as unearned fees under RESPA. 12 CFR sec. 226.4(a), 226.17, and 18(d) and (c) (1) (iii) Under the EOCA, a borrower is entitled to the same terms of credit issuance that another borrower of equal characteristics is entitled to. The lender placed borrower into a loan that had a significantly higher interest rate than what was qualified for. This was a result of paying a Broker Premium to the broker which benefited the lender and engaged in a pattern or practice of extending such credit to a borrower based on the borrower's collateral rather than considering the borrower's current and expected income, current obligations, and employment status to determine whether the borrower is able to make the scheduled payments to repay the obligation, is in violation of Section 129(h) of TILA, 15 U.S.C. 1639(h), and see also, Regulation Z, 12 C.F.R. 226.32.

HOMESTEAD
AUDITOR FINDINGS: The borrower, Steven W. Johnson was the only party that signed the Note and all Mortgage documents. Mr. Johnson signed as a single person.

APPRAISAL REVIEW
AUDITOR FINDINGS: N/A The Appraisal report was not included in the audit documentation. The value that was used for this examination was obtained from the 1003 (Uniform Residential Loan Application) stating the value of the subject property at $285,000.00

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ADDITIONAL EXAMINER COMMENTS

No additional comments are needed at this time.

EXAMINER COMMENTS ON SUBORDINATE LIENS

No second lien was found in the public records.

SECTION 3
ADDENDUM SECTION
Mortgage Document Condition Precedent Addendum Promissory Note- Securitization Addendum Breach of Fiduciary Duty Addendum (applies only to stated income loans) Truth in Lending Addendum MERS Addendum (applies only to mortgages registered in the MERS system)

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HUD Addendum (applies only to HUD insured Mortgages)

MORTGAGE DOCUMENT-CONDITION PRECEDENT ADDENDUM

Section 22 of the underlying mortgage, entitled Acceleration Remedies, provides that the Plaintiff was to provide a written notice of default of the terms and provisions as a Condition Precedent, to accelerating said mortgage or instituting any foreclosure proceedings. Suggest getting an affidavit from client stating that said notice has not been received, and if a notice was received inquire if the lender waited 30 days to file the foreclosure proceeding. Note: FRCP 12(b)(1).(2). And (6) failure to perform a condition precedent effectively eliminates the courts jurisdiction to hear the claim. FRCP Rule 9(c). Note: that including this in an answer, but waiting too long, may waive the defense. Note: it may be prudent to include this in a motion to dismiss for failure to state a claim upon which relief can be granted, instead of using this as a defense in an answer.

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PROMISSORY NOTE-SECURITIZATION ADDENDUM

It appears the Note was converted into a negotiable instrument that was securitized and issued a CUSIP number for the Security. This may also apply to the 1003, Uniform residential Loan Application. It may be prudent during the discovery phase of litigation to request the CUSIP number for both the Note and the 1003, and to inquire if the Lender has complied with and will provide the S3A registration statement; 424 B-5 prospectus (security filing); RC S & RC B call schedules; FASB (Financial Accounting Standards Board) part of GAAP (Generally Accepted Accounting Standards) FAS 125, 133, 140, 5, & 95 and if the Lender has complied with the 2046 balance sheet as it relates to the original "loan" as proof of the mandatory filing pursuant to Title 12 U.S.C. 248 & 347, and has complied with all IRS reporting requirements. Such documents reported to the IRS are including but not limited to, 1099A, 1099OID, 1099C, 1099B, 1096 and 1040V and any other 1099. Request to see if the Lender has a "Valid" OMB(Office of Management and Budget) Control Number pursuant to 12 U.S.C. 248(a)(2) and (i) and 327(b) on said note (Negotiable Security Instrument) as well as disclosure as to which Federal Reserve Bank window such promissory note was deposited in, and if the Trust for the Asset Backed Security requires the physical note to be deposited into the trust.

BREACH OF FIDUCIARY DUTY ADDENDUM

According to the 1003, Uniform Residential Loan Application this loan was done as a No Income Verification Loan, as the income was left blank. Mortgage companies do have a fiduciary duty to insure that the borrower can qualify and make payments. In certain situations, courts have implicitly recognized imposing fiduciary duties on lenders based on policy grounds. For instance, a lender may be considered a fiduciary when it takes control of the borrower, or when moral, social, personal, or domestic relationships are shown to exist between the parties. (Cases cited in American Bar Association Business Tort Litigation - 2nd Ed.) Further, when the lender undertakes to perform a task on behalf of the borrower, then it is likely that the lender has made itself a fiduciary for the borrower, based on the law of agency. Often times, when a loan officer or mortgage broker is helping to arrange a loan for a borrower, that loan officer/mortgage broker is, in reality, acting as the agent for both the lender and borrower.

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The fiduciary duty of the lender is a responsibility to perform their own diligence to determine if a customer is being placed in a loan that is legal, properly disclosed, is the best loan for the consumer given their financial circumstance and affordable over the life of the loan if present financial positions hold steady. If the lender knew or should have known that the Borrower has a likelihood of defaulting on this loan, he/she has a fiduciary duty to the borrower to not place them in that loan (in harms way). When a loan transaction occurs, any missteps in the loan transaction process can lead to dire consequences for the borrower. It is for this reason that the law should impose more liberally a fiduciary relationship between borrower and lender, especially in the residential home loan marketplace where the average borrower is not as sophisticated as the lender. If fiduciary relationships were more liberally imposed, we would likely see lenders implementing more safeguards before underwriting a loan. If the lender is aware that the borrowers would be better off with another type of loan that the lender offers, they have violated their duty to the consumers and such act of deception would be likely be considered fraud on the consumer and predatory. Brokers owe a fiduciary duty to borrowers. Liability potential for lender may exist if borrower can prove either that: (1) a special relationship or circumstance existed, (2) the lender directly ordered, authorized or participated in the brokers tortuous conduct, or (3) that broker acted as lenders agent for the transaction.

TRUTH IN LENDING ADDENDUM

Under the Truth in Lending Act ("TILA"), rescission rights arise when: (1) the transaction is a consumer credit transaction; (2) in which a non-purchase lien or security interest is or will be placed; and (3) on the consumer's principal dwelling. In a rescindable transaction, each consumer must be given a copy of the TILA disclosure statement with all "material" information correctly disclosed and notice of a three-day right to rescind. If these material disclosures are not properly provided, the three-day right to rescind is extended until one of the following events occurs: (1) all materials disclosures are correctly given and a new three day notice of cancellation, (2) the expiration of three years after consummation of the transaction; (3) the transfer of all of the consumer's interest in the property; or (4) the sale of the property. All persons entitled to rescind under TILA must receive two copies of the rescission notice rights and one copy of the material disclosures at or before closing. The notice of rescission must provide the following information: (1) the retention or the acquisition of a security interest in the consumer's principal dwelling; (2) the consumer's right to rescind; (3) how to exercise the right to rescind with a form for that purpose, designating the address of the creditor's place of business; (4) the effects of rescission; and (5) the date the rescission period expires.

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1. Annual Percentage Rate Tolerances and Right of Rescission. An APR deviation is a material violation permitting the right of rescission if: (a) it was a refinance, (b) within 3 years of the transaction, and (c) outside the tolerances set forth below. 12 CPR 226.22(a)(2) provides: "As a general rule, the annual percentage rate shall be considered accurate if it is not more than 1/8 of 1 (.125%) percentage point above or below the annual percentage rate determined in accordance with paragraph (a)(I) of this section." Under 12 CPR 226.22(a)(3): "In an irregular transaction, the annual percentage rate shall be considered accurate if it is not more than 1/4 of 1% (.25 %) percentage point above or below the annual percentage rate determined in accordance with paragraph (a)( I) of this section." 2. Finance Charge Tolerances and Right of Rescission 12 CPR 226.18(d) requires the disclosure of the finance charge amount. For purposes of "mortgage loans," 12 CPR 226.18(d)(l) provides: "In a transaction secured by real property or a dwelling, the disclosed finance charge and other disclosures affected by the disclosed finance charge (including the amount financed and the annual percentage rate) shall be treated as accurate if the amount disclosed as the finance charge: (i) is understated by no more than $100; or (ii) is greater than the amount required to be disclosed." Statutory and actual damages are available for this violation. A finance charge deviation is a material violation permitting the right of rescission if: (a) it was a refinance, (b) within 3 years of the transaction, and (c) outside the tolerances set forth below. 12 CPR 226.23(g) provides: "Tolerances for accuracy. (1) One-half of 1 percent tolerance. Except as provided in paragraphs (g)(2) and (h)(2) of this section, the finance charge and other disclosures affected by the finance charge (such as the amount financed and the annual percentage rate) shall be considered accurate for purposes of this section if the disclosed finance charge: (i) is understated by no more than 1/2 of 1 percent of the face amount of the note or $100, whichever is greater; or (ii) is greater than the amount required to be disclosed. (2) One percent tolerance. In a refinancing of a residential mortgage transaction with a new creditor (other than a transaction covered by 226.32), if there is no new advance and no consolidation of existing loans, the finance charge and other disclosures affected by the finance charge (such as the amount financed and the annual percentage rate) shall be considered accurate for purposes of this section if the disclosed finance charge: (i) is understated by no more than 1 percent of the face amount of the note or $100, whichever is greater; or (ii) is greater than the amount required to be disclosed." 15 U.S.C. 1635(i) also provides: "Rescission Rights In Foreclosure (2) Tolerance For Disclosures Notwithstanding section 106(f), and subject to the time period provided in subsection (f), for the purposes of exercising any rescission rights after the initiation of any judicial or nonjudicial foreclosure process on the principal dwelling of the obligor securing an extension of credit, the disclosure of the finance charge and other disclosures affected by any finance charge shall be treated as being accurate for purposes of this section if the amount disclosed as the finance charge does not vary from the actual finance charge by more than $35 or is greater than the amount required to be disclosed under this title."

Attorney Note: If the 3-year Statute Of Limitations has expired. There are some arguments for, Tolling The Statute Of Limitations, as disclosed below.
(1) The Doctrine Of Fraudulent Concealment - If a lender conceals wrongdoing, thereby preventing a borrower from discovering a cause of action, the statute of limitation will be tolled until the date the plaintiff, through due diligence, would have learned of the existence of a claim. The doctrine of fraudulent concealment operates to toll the statute of imitations, when a plaintiff has been injured by fraud and remains in ignorance of it, without any fault or want of diligence or care on his part. Holmberg v. Arnlbrecht , 327 U.S. 392, 397 (1946) (quoting Bailey v. Glover, 88 U.S. (21 Wall.) 342, 348 (1874); see Maggio v. Gerard Freezer & Ice Co. , 824 F.2d 123, 127 (1 st Cir. 1987).

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(2) Argumentum Theory - As in criminal codes, the District Attorney must bring charges against a bank robber within 5 years. However, if the bank robber leaves the State, the Statute Of Limitation stops to accrue until such time as the bank robber returns to the jurisdiction. Same can be argued if the lender leaves the state, goes out of business, or the address and phone number disclosed on a document for communication purposes is no longer valid, time should stop running as of the date of the lender's disappearance and not started again until a receiver of liabilities is notoriously identified. (3) Fraud In The Factum -The misrepresentation must go to the essential nature or existence of a contract, for example, a misrepresentation that an instrument is a promissory note when in fact it is a mortgage. Or, a misleading statement by an agent that a loan contains certain terms desirable to the consumer when it does not. (4) Fraud In The Inducement - The use of deceit or trick to cause someone to act to his/her disadvantage, such as signing an agreement or deeding away real property. The heart of this type of fraud is misleading the other party as to the facts upon which he/she will base his/her decision to act. Example: "there will be tax advantages to you if you let me take title to your property," or "you donlt have to read the rest of the contract, it is just routine legal language" but actually includes a balloon payment or other features that left undisclosed, induces the consumer into signing the documents. (5) Bankruptcy - Regulation Z sections 226.15 and 226.23 taken from the Comptroller of Currency Handbook 2006 states: On certain loans in foreclosure and in conjunction with recent case law, the consumers right to rescind can be extended for a period of greater than 3 years when a consumer files bankruptcy, and the consumer used that as a defense to a foreclosure action.

MERS ADDENDUM
See Federal Trade Commission Sec 5 -Unfair Business Practices - Deceptive Business Acts. Pursuant to the Mortgage, Mortgage Electronic Registration Systems Incorporated (MERS) is acting solely as nominee for Lender and Lender's successors or assigns and is the beneficiary under that security instrument. In that capacity, MERS initiated the foreclosure process by executing and recording certain instruments which sets in place the entities that carry out the process of foreclosure. However, there are many judicial opinions in several different states that MERS does not have the capacity as only a nominee to execute the process of foreclosure or to assign security instruments from one beneficiary to the other. In Luis E. Gallardo, 1O-0471O-MM7, vs Movant, US Bank National Association, as Trustee for CSMC Mortgage-Backed Pass-Through Certificates, Series 2006-7, a recent San Diego Bankruptcy decision handed down by the Honorable Judge Margaret M. Mann, Judge Mann ruled "Movant has not supplied evidence that establishes that Movant has standing to seek

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stay relief Movant has attached an ''Assignment of Deed of Trust" from MERS to Movant, which assigns the trust deed and the related note. But, there is no evidence that MERS ever received an assignment of the note or had the ability to assign the note to Movant. The note attached to the motion does not indicate that the note has been endorsed to Movant or endorsed in blank such that it became bearer paper. Without evidence either that MERS could properly assign the note, or that the note was endorsed to Movant or in blank. Movant has not established standing to seek slay relief . The United States Bankruptcy Court for the Eastern District of California has issued a ruling dated May 20, 2010 in the matter of In Re: Walker. Case No. 10-2165-E-ll which found that MERS could not, as a matter of law, have transferred the note to Citibank from the original lender, Bayrock Mortgage Corp. The Court's opinion is headlined stating that MERS and Citibank are not the real parties in interest. The court found that MERS acted "only as a nominee" for Bayrock under the Deed of Trust and there was no evidence that the note was transferred. The opinion also provides that "several courts have acknowledged that MERS is not the owner of the underlying note and therefore could not transfer the note, the beneficial interest in the deed of trust, or foreclose on the property secured by the deed or mortgage", citing the well-known cases of In Re Vargas (California Bankruptcy Court), Landmark v. Kesler (Kansas decision as to lack of authority of MERS), LaSalle Bank v. Lamy (New York), and In Re: Foreclosure Cases, (the "Boyko" decision from Ohio Federal Court). The opinion states: '''Since no evidence of MERS' ownership of the underlying note has been offered, and other courts have concluded that MERS does not own the underlying notes, this court is convinced that MERS had no interest it could transfer to Citibank. Since MERS did not own the underlying note, it could not transfer the beneficial interest of the Deed of Trust to another. Any attempt to transfer the beneficial interest of a trust deed or mortgage without ownership of the underlying note is void under most state laws." This opinion thus serves as a legal basis to challenge any foreclosure based on a MERS assignment; to seek to void any MERS assignment of the security instrument or the note to a third party for purposes of foreclosure; and should be sufficient for a borrower to not only obtain a TRO against a Foreclosure Sale, but also a Preliminary Injunction barring any sale pending any litigation filed by the borrower challenging a foreclosure based on a MERS assignment. The Court concluded by stating: "Since the claimant, Citibank, has not established that it is the owner of the promissory note secured by the mortgage, Citibank is unable to assert a claim for payment in this case." Thus, any foreclosing party which is not the original lender which purports to claim payment due under the note and the right to foreclose in on the basis of a MERS assignment does not have the right to do so under the principles of this opinion. This ruling is more than significant not only for California borrowers, but for borrowers Nationwide, as this California court made it a point to cite non-bankruptcy cases as to the lack of authority of MERS in its opinion. Further, this opinion is consistent with the prior rulings of the Idaho and Nevada Bankruptcy courts on the same issue, that being the lack of 28

authority for MERS to transfer the note as it never owned it (and cannot, per MERS' own contract which provides that MERS agrees not to assert any rights to mortgage loans or properties mortgaged thereby. Authority Of Mortgage Electronic Registration Systems (MERS) MERS is an enterprise that holds the mortgages of 60 million American homes. It was created by the Mortgage Bankers Association in the 1997 to run a computer registry that records mortgage loan trading activities in connection with the securitization of asset backed investments. It was primarily set up to cut costs on paperwork and publication requirements by registering the assignment of security instruments from one investor to the other. In the securitization process, mortgage loans may be purchased by one single investor or a group of many under one depository trustee without the need to record the transaction in the County in which the asset is located. The problem with MERS is that the real beneficiary is faceless and obscured from public records. By MERS standard contract agreement with its member banks, Notes are assigned to MERS in blank in order to affect the transfer of securities from one investor to the other. The problem here is, a blank note docs not set a paper trail of who the owners of these investments were at any given time and therefore, a note assigned in blank does little as to enforcement. Essentially, anyone could come forth with a copy and claim to be the owner of the note. MERS has since evolved from that of a simple registration system to that of the custodian of powers. As such, MERS has essentially blocked homeowners from preventing their houses from becoming foreclosures and loan fraud victims from pursuing their cases in court because they could not identify the companies holding their mortgage notes. Recent court rulings in several states have challenged MERS in foreclosure cases and have found that, at best, MERS only holds a copy of the blank note with the true beneficiary holding the original note. MERS however commences the foreclosure process by supposedly assigning the security instruments to a Trustee. At best, the Trustee is in possession of blank security instruments at the time the Notice Of Default is recorded while the still unidentified holder of the real Note remains obscured. In a foreclosure situation whereby MERS is the claimed beneficiary and the true beneficiary obtains the Trustee's Deed affecting a credit sale back to the lender, MERS schemes to avoid the transfer tax of the transaction. Furthermore, in non-judicial states. MERS admits to merely holding title as nominee for the true beneficiary. Here is an excerpt from their on web site. "Normally, where the name of the grantee under the Trustee's Deed Upon Sale is different than the name of the foreclosing entity, the Trustee's Deed Upon Sale states that the "Grantee was not the foreclosing beneficiary. " This designation triggers the imposition of transfer taxes on the sale. It is important to note that in a MERS foreclosure sale, even where the property reverts, the name of the grantee will be different than the name of the entity foreclosing. Nonetheless, the Trustee's Deed Upon Sale should state that, "The Grantee was the foreclosing beneficiary." This is because MERS merely holds title as nominee for the true beneficiary; it is the true beneficiary that has actually foreclosed and acquired title. By this admission, MERS has stated that they are not, and was not, the true beneficiary thereby nullifying the nomination pursuant to the Deed Of Trust. Pursuant to the foregoing, in foreclosure cases, the borrower is encouraged to demand that the foreclosing institutions provide prima fascia evidence that they are indeed the legal beneficiary, and legitimate owner of the Note with power of sale.

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In the Superior Court of New Jersey, Bank of New York v. Victor and Enoabasi Ukpe, case #10-43081, a deposition by MERS Secretary Hultman revealed that MERS has no employees, and that the signers on the assignments are certifying officers whose only link to MERS is a corporate resolution signed by MERS Secretary Hultman. Accordingly, the certifying officers are employees of MERS Member Financial Institutions and Attorneys at firms doing foreclosures for MERS banks, as well as non-member employees. The problem exists in the MERS companies bylaws which state that only the board of directors can appoint a certifying officer and that there is no evidence MERS Secretary Hultman was given the power to appoint the certifying officers. If Boards cannot pass resolutions that violate their companies bylaws any resolution MERS Secretary Hultman may have in his possession may be invalid.

HUD ADDENDUM TO FORENSIC AUDIT

FAILURE TO COMPLY WITH FHA PRE-FORECLOSURE REQUIREMENTS DEFINED Federal law and the U.S. Department of Housing and Urban Development CRUD) require lenders to take specific loss mitigation steps before filing a foreclosure action on loans insured by HUD. These steps include mailing a publication called How to Avoid Foreclosure, and in some instances, arranging a face-to-face meeting with the borrower. If the lender does not take the minimum steps necessary that comply with the law, then the foreclosure cannot proceed. Failing to comply with FHA pre-foreclosure requirements is treated as a failure to meet a condition precedent. Limitations This defense is limited to loans that are insured by HUD (FHA mortgages). Conventional loans through Fannie Mae or Freddie Mac, as well as sub-prime loans, are not covered by this defense. The V A requires lenders make every effort to help veterans avoid foreclosure. This defense is limited to the pre-foreclosure steps that the lender must take. Once the lender has satisfied the initial steps (conditions precedent), it may proceed with the foreclosure process, even if loss mitigation or a loan workout is pending.
24 C.F.R. 203.500, et. scq.; HUD Mortgagee Letter 00-05: Loss Mitigation Program - Comprchensive

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Clarifications of Policy and Notice of Procedural Changes. " in Federal National Mortgage Association v. Moore, 609 F.Supp. 194 (N.D.IlI. 1985), a case involving an FHA-insurcd mortgage, foreclosure was denied because of the mortgagee's failure to give to the mortgagor written notice of default and of intention to foreclose and of the mortgagor's right to apply to HUD for assignment of the mortgage in the form required by HUD regulations. See also, Mellon Mtge. CO. v. Larios, 97 C 2330, 1998 WL 292387 (N.D.1ll., May 20, 1998); federal Land Bank v. Overhoe, 404 N. W.2d 445 (N.D.1987); Union Nat 'I Bank v. Cobbs, 567 A.2d 899 (Pa.Super. 1989)." Federal Land Bank of St. Paul v. Overboe, 404 N.W.2d 445 (N.D. 1987), 24 C.F.R. 203.602; HUD Mortgagee Letter 00-05: Loss Mitigation Program - Comprchcnsive Clarifications of Policy and Notice of Procedural Changes at page 5. 24 C.F.R. 203.604(b). 24 C.F.R. 203.500. As put by the North Dakota Supremc Court, " .... various courts have held that the failure of a lender to follow HUD regulations governing mortgage servicing constitutes a valid defense sufficient to deny the lender the relief it seeks in a foreclosure action. See Federal National Mortgage Association v. Moore, 609 F.Supp. 194 (N.D.lI1.1 985); Cross v. Federal National Mortgage Association, 359 So.2d 464 (Fla.Dist.Ct.App. 1978); Bankers Lile Co. v. Denton, 120 IlI.App.3d 576,458 N.E.2d 203 (1983); Heritage Bank, N.A. v. Ruh, 191 NJ..Super. 53, 465 A.2d 547 (1983); Associated East Mortgage Co. v. Young, 163 N.J.Super. 315, 394 A.2d 899 (1978); Federal National Mortgage Association v. Ricks, 83 Mise.2d 814, 372 N.Y.S.2d 485 (1975). But see Manufactllrers Hanover Mortgage Corp. v. Snell, 142 Mich.App_ 548, 370 N.W.2d 401 (1985); Federal National Mortgage Association v. Prior, 128 Wis.2d 182.381 N.W.2d 558 (Ct. App. 1985)." Federal Land Bank of St. Paul v. Overhoe, 404 N.W.2d 445 (N.D. 1987)_ See the 26-94-01 V A Servicing Guide H26-94-1 at http://www.vba.va.gov/ro/south/spete/rie/Servicer _Handbook. pdf (last visited Aug. 10, 2008.)

POTENTIAL RECOVERY The failure to provide the necessary disclosures and counseling has been successfully used as an affirmative defense. Additionally, the disclosure requirements create a condition precedent to foreclosure. That is, foreclosure cannot be filed until all of the pre-foreclosure conditions are satisfied. (See Mortgage Document section on: Conditions Precedent.)

APPLICABLE LAW The federal law governing FHA lenders' foreclosure duties can be found at 24 C.F.R. 203.500, et. seq. The guidelines published by HUD that detail FHA lenders' requirements under the law can be found in HUD Mortgagee Letter 2000-05: Loss Mitigation Program Comprehensive Clarifications of Policy and Notice of Procedural Changes. ELEMENTS The loan must be insured by HUD. There is no statute of limitations, but the borrower must be in default to trigger a lender's responsibility under this section of the law. The lender must mail How to Avoid Foreclosure by the end of the second month of any delinquency before foreclosing. If the loan is reinstated after the pamphlet has been mailed, the lender must mail another copy if the loan again goes delinquent. However, the lender only needs to send one copy every six months. The lender must make a reasonable effort to arrange a face-to-face meeting with the borrower before three monthly installments are due on the mortgage and are 31

unpaid, unless any of the following things apply: The borrower does not reside in the mortgaged property; The property is not within 200 miles of the lender, its servicer, or a branch office of either; The borrower has clearly indicated that he or she will not cooperate in the interview; A repayment plan in created and the payments become current; or a reasonable effort to arrange a meeting is unsuccessful (consisting or at a minimum of one letter sent and certified as dispatched by the post office, and at least one trip to the property). The lender may not initiate foreclosure until at least three full monthly installments due under the mortgage are unpaid.
Federal Land Bank of St. Paul v. Overboe, 404 N.W.2d 445 (N.D. 1987). 724 C.F.R. 203.602; IIUD Mortgagee Letter 2000-05: Loss Mitigation Program - Comprehensive Clarifications of Policy and Notice of Procedural Changes at page 5. 24 C.F.R. 203.602. 24 C.F.R. 203 .604(b).

DEFENSES This defense should be raised in a motion to dismiss for failing to perform a condition precedent. (SEE MORTGAGE DOCUMENT SECTION) Otherwise, a failure to perform duties under this section of the code may be raised as a defense or affirmative defense.

SECTION 4
EXHIBIT LIST
EXHIBIT A: EXHIBIT B: EXHIBIT C: EXHIBIT D: EXHIBIT E: EXHIBIT F: EXHIBIT G:

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EXHIBIT H: EXHIBIT I: EXHIBIT J: EXHIBIT K:

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EXHIBIT A

34

EXHIBIT B

35

EXHIBIT C

36

EXHIBIT D

37

EXHIBIT E

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