FILED: NEW YORK COUNTY CLERK 05/16/ :34 AM INDEX NO /2017 NYSCEF DOC. NO. 123 RECEIVED NYSCEF: 05/16/2018
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1 Home Office: Baltimore, Maryland SUPREME COURT OF THE STATE OF NEW YORK Bond No. CFB COUNTY OF NEW YORK X THIRD AVENUE SPE LLC, -against- Plaintiff, BOND OF TEMPORARY RECEIVER Index No / AVE LLC a/k/a AVE LLC, et al, X Defendants. KNOW ALL MEN BY THESE PRESENTS, That we, PAUL SKLAR with an office located at 551 Fifth Avenue, Suite 2200, New York, NY 10176, as Principal and the FIDELITY & DEPOSIT COMPANY OF MARYLAND, having an office and place of business at 4 World Trade 54th Center, Floor, 150 Greenwich Street, New York, NY 10007, as Surety, are held and firmly bound unto THE PEOPLE OF THE STATE OF NEW YORK, in the sum of TWO THOUSAND FlVE HUNDRED AND 00/100ths-----($2,500.00)DOLLARS, lawful money of the United States, to be paid to THE PEOPLE OF THE STATE OF NEW YORK, for which payment, well and truly to be made, the said PAUL SKLAR binds himself/his heirs, executors and administrators, and the said Company binds itself, its successors and assigns, jointly and severally, firmly by these presents. Sealed with our seals and dated the 8th day of May, WHEREAS, by an Order made on the 20th day of March, 2018, by the Honorable Judith N. McMahon, the above named PAUL SKLAR was duly appointed Temporary Receiver in the above entitled action, and by an Order Amending the Caption and Substituting THIRD AVENUE SPE LLC as the Plaintiff dated April 10, 2018 and filed on April 20, 2018, the Plaintiff was changed from CATHAY BANK to THIRD AVENUE SPE LLC, NOW, The CONDITION OF THIS OBLIGATION IS SUCH, That, if the said PAUL SKLAR, shall faithfully discharge the duties of his trust, and shall duly account for all moneys received by him as such Temporary Receiver, then this obligation shall be void, otherwise to be in full force and effect. By: Ptpl Sklar, Principal FIDELITY 8 DEPOSIT COMPANY OF MARYLAND By: 1 of 7
2 SURETY ACKNOWLEDGMENT STATE OF NEW YORK COUNTY OF NEW YORK On the 8TH day May, 2018, before me personally came Maria Sponza, resides at 370 Lexington Avenue, New York, NY 10017, that she is Attorney-In-Fact of Fidelity and Deposit Company of Maryland, the corporation described in and which executed the within instrument; that she knows the corporate seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by the Board of Directors of said corporation, and that she signed her name thereto by like order; and that the Fidelity and Deposit Company of Maryland is duly authorized to transact business in the State of New York in pursuance of the statutes in such case made and provided; that the Superintendent of Insurance of the State of New York, has, pursuant to Chapter 28 of the Consolidated Laws of the State of New York, known as the Insurance Law, issued to the Fidelity and Deposit Company of Maryland a Certificate of Solvency and of Qualification to become surety or guarantor on all bonds, undertakings, recognizances, guaranties and other obligations required or permitted by law; and that such certificate has not been revoked. CAROLLEVINE NOTARYPUBLIC,STATEOFNEWYORK Notary Public RegistrationNo.01LE QualifiedinNewYork County CommissionExpires January31,2022 'JP State County of I l~ ss. Individual Acknowledgment On this I I r II day of 2018, before me, the undersigned, a notary public in and for said state, personally appeared PAUL SKLAR personally known to me or proved tome on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s) or the person upon behalf of which the individual(s) acted, executed the instrument. SAMUllKESLER Notary Public - StateofNewYork NO. 01KE Notary Public QualifiedinKingsCounty 2 of 7
3 ZURICH AMERICAN INSURANCE COMPANY COLONIAL AMERICAN CASUALTY AND SURETY COMPANY POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: That the ZURICH AMERICAN INSURANCE COMPANY, a corporation of the State of New York, the COLONIAL AMERICAN CASUALTY AND SURETY COMPANY, a corporation of the State of Maryland, and the FIDELITY AND DEPOSIT COMPANY OF MARYLAND a corporation of the State of Maryland (herein "Companies" collectively called the "Companies"), by DAVID MCVICKER, Vice President, in pursuance of authority granted by Article V, Section 8, of the By-Laws of said Companies, which are set forth on the reverse side hereof and are hereby certified to be in full force and effect on the date hereof, do hereby nominate, constitute, and appoint Sybil LEVINE, Maria SPONZA, Anita HUNTER, Margaret MCLAUGHLIN and Carol LEVINE, all of New York, New York, EACH its true and lawful agent and Attorney-in-Fact, to make, execute, seal and deliver, for, and on its behalf as surety, and as its act and deed: any and all bonds and undertakings, and the execution of such bonds or undertakings in pursuance of these presents, shall be as binding upon said Companies, as fully and amply, to all intents and purposes, as if they had been duly executed and acknowledged by the regularly elected officers of the ZURICH AMERICAN INSURANCE COMPANY at its office in New York, New York., the regularly elected officers of the COLONIAL AMERICAN CASUALTY AND SURETY COMPANY at its office in Owings Mills, Maryland., and the regularly elected officers of the at its office in Owings Mills, Maryland., in their own proper persons. The said Vice President does hereby certify that the extract set forth on the reverse side hereof is a true copy of Article V, Section 8, of the By-Laws of said Companies, and is now in force. IN WITNESS WHEREOF, the said Vice-President has hereunto subscribed his/her names and affixed the Corporate Seals of the said ZURICH AMERICAN INSURANCE COMPANY, COLONIAL AMERICAN CASUALTY AND SURETY COMPANY, and, this 6th day of November, A.D ATTEST: ZURICH AMERICAN INSURANCE COMPANY COLONIAL AMERICAN CASUALTY AND SURETY COMPANY )) Ol)lag I)II ~III SEAL ~NNI g)tt IN un) Z I...* II ~I~... III Pi By:,,=. )tt:ii j;,1 '.. '' 1 tl ".. 1 I ti.g-i Assistant Secretary Vice President Dawn E. Brown David McVicker State of Maryland County of Baltimore On this 6th day of November, A.D. 2017, before the subscriber, a Notary Public of the State of Maryland, duly commissioned and qualified, DAVID MCVICKER, Vice President, and DAWN E. BROWN, Assistant Secretary, of the Companies, to me personally known to be the individuals and officers described in and who executed the preceding instrument, and acknowledged the execution of same, and being by me duly sworn, deposeth and saith, that he/she is the said officer of the Company aforesaid, and that the seals affixed to the preceding instrument are the Corporate Seals of said Companies, and that the said Corporate Seals and the signature as such officer were duly affixed and subscribed to the said instrument by the authority and direction of the said Corporations. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my Official Seal the day and year first above written ) lill,); ) 11 1 Constance A. Dunn, Notary Public My Commission Expires: July 9, 2019 )li POA-F A 3 of 7
4 EXTRACT FROM BY-LAWS OF THE COMPANIES "Article V, Section 8, Attorneys-in-Fact. The Chief Executive Officer, the President,.or any Executive.Vice President or Vice President may, by written instrument under the attested corporate seal, appoint attorneys-in-fact with authority to execute bonds, policies, recognizances, stipulations, undertakings, or other like instruments on behalf of the Company, and may authorize any officer or any such attorney-in-fact to affix the corporate seal thereto; and may with or without cause modify of revoke any such appointment or authority at any time." CERTIFICATE I, the undersigned, Vice President of the ZURICH AMERICAN INSURANCE COMPANY, the COLONIAL AMERICAN CASUALTY AND SURETY COMPANY, and the, do hereby certify that the foregoing Power of Attorney is still in full force and effect on the date of this certificate; and I do further certify that Article V, Section 8, of the By-Laws of the Companies is still in force. This Power of Attorney and Certificate may be signed by facsimile under and by authority of the following resolution of the Board of Directors of the ZURICH AMERICAN INSURANCE COMPANY at a meeting duly called and held on the 15th day of December RESOLVED: "That the signature of the President or a Vice President and the attesting signature of a Secretary or an Assistant Secretary and the Seal of the Company may be affixed by facsimile on any Power of Attorney...Any such Power or any certificate thereof bearing such facsimile signature and seal shall be valid and binding on the Company." This Power of Attorney and Certificate may be signed by facsimile under and by authority of the following resolution of the Board of Directors of the COLONIAL AMERICAN CASUALTY AND SURETY COMPANY at a meeting duly called and held on the 5th day of May, 1994, and the following resolution of the Board of Directors of the at a meeting duly called and held on the 10th day of May, RESOLVED: "That the facsimile or mechanically reproduced seal of the company and facsimile or mechanically reproduced signature of any Vice-President, Secretary, or Assistant Secretary of the Company, whether made heretofore or hereafter, wherever appearing upon a certified copy of any power of attorney issued by the Company, shall be valid and binding upon the Company with the same force and effect as though manually affixed. IN TESTIMONY WHEREOF, I have hereunto subscribed my name and affixed the corporate seals of the said Companies, this 8 day of Ma y, 20_U3. q OfPd~ 'P 4I»~»»» Michael Bond, Vice President TO REPORT A CLAIM WITH REGARD TO A SURETY BOND, PLEASE SUBMIT ALL REQUIRED INFORMATION TO: Zurich American Insurance Co. Attn: Surety Claims 1299 Zurich Way Schaumburg, IL of 7
5 THE FIDELITY AND DEPOSIT COMPANY OF MARYLAND 600 Red Brook Blvd., Suite 600, Owings Mills, MD Statement of Financial Condition As Of December 31, 2017 ASSETS Bonds... $ 131,463,323 Stocks... 23,365,385 Cash and Short Term Investments... 15,943,690 Reinsurance Recoverable... 7,520,824 Federal Income Tax Recoverable... 62,266 Other Accounts Receivable... 35,672,323 TOTAL ADMITTED ASSETS... $ 214,027,811 LIABILITIES, SURPLUS AND OTHER FUNDS Reserve for Taxes and Expenses... ~- -- ~ "... $ 580,990 Ceded Reinsurance Premiums Payable......, ,235,595 Securities Lending Collateral Liability... 0 TOTAL LIABILITIES... ~ -" ~ $ 42,816,584 Capital Stock, Paid Up.... $ 5,000,000 Su1plus Surplus as regards Policyholders......,..., ,211,226 TOTAL... $ 214,027,811 Securities carried at $62,198,396 in the above statement are deposited with various states as required by law. Securities carried on the basis prescribed by the National Association of Insurance Commissioners. On the basis of market quotations for all bonds and stocks owned, the Company's total admitted assets at December 31, 2017 would be $213,515,173 and surplus as regards policyholders $170,698,588. I, DENNIS F. KERRIGAN, Corporate Secretary of the FIDELITY AND DEP OSIT COMPANY OF MARYLAND, do hereby certify that the foregoing statement is a correct exhibit of the assets and liabilities of the said Company on the 31st day of December, Cot porate Secretar y State of Illinois City of Schaumburg SS Subscribedandsworn to, before me, a Notary Public of the State of Illinois, in the City of Schaumburg, this 96 day of March, J Notary Public OFFICIAL SEAL DARRYL JOINER Notary Public - State of lilinois 5 of 7
6 CERTIFICATE OF SOLVENCY UNDER SECTION 1111 OF THE NEW YORK INSURANCE LAW STATE OF NEW YORK DEPARTMENT OF FINANCIAL SERVICES It is hereby certified that Owings Mills, Maryland a corporation organized under the laws of the State of Maryland and duly authorized to transact the business of insurance in this State, is qualified to become surety or guarantor on all bonds, undertakings, recognizances, guaranties and other obligations required or permitted by law; and that the said corporation is possessed of a capital and surplus including gross paid-in and contributed surplus and unassigned funds (surplus) aggregating the sum of $171,211,226 (Capital $5,000,000) as is shown by its sworn financial statement for Year-End as of December 31, 2017, on file in this Department prior to audit. The said corporation cannot lawfully expose itself to loss on any one risk or hazard to an amount exceeding 10% of its surplus to policyholders, unless it shall be protected in excess of that amount in the manner provided in Section 4118 of the Insurance Law of this State. donb y0r/( In Witness Whereof, I have here- ~ N4% unto set my hand and affixed the * official seal of this Department at the City of Albany, this [ 18th day of April, 2018 Maria T. Vullo Superintendent By f l F Ja ueline Catalfamo Special Deputy Superintendent t j 6 of 7 1
7 State of New York. DEPARTMENT OF FINANCIAL SERVICES VlHEREASIT APPEARS THAT Fidelity and Deposit Company of Maryland Home Office Address Owings Mills, Maryland Organized under the Laws of Maryland has complied with the necessary requirements of or pursuant to law, it is hereby licensed to do within this State the business of. fire, miscellaneous property, water damage, burglary and theft, glass, boiler and machinery elevator, collision, workers' personal injury liability, property damage liability, compensation and employers' liability, fidelity and surety,. credit, motor vehicle and aircraft physical damage and marine and inland marine(inland only) insurance,as specified in paragraph(s) 4, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, 16, 17, 19 and 20 of Section 1113(a) of thenew YorkInsurance Law, and as authorized by Section 4102(c), reinsurance of every kind or description to the extent permitted by certified copy of its charter document on file in this Department until July 1, In Witness Whereof, I have hereunto set * ~ york S ~, *, my hand and affixed the official seal of this Department at the City of Albany, New York, this 1st day of July, 2017 Maria T. Vullo Superintendent. kj:~gg. F09 4P c) of FiNP~ By Jacqueline Special beputy Catalfamo Superintendent I I j i Original on Watermarked Paper 7 of 7
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