Preview
FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009
NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022
EXHIBIT D
FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009
NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022
BUPREME UOURT OF TIE STATE OF NEW YORK
COUNTY OF NEW YORK
-----.----..----------------------··-------X
STREET SNACKS, LLC,
Index No.:
Plaintiff, Date of Purchase:
-against- . SUMMONS
BRIDGE ASSOCIATES OF SOHO, INC.,
ADAM D. LUCKNER, MIDWAY HOLDINGS CORP., Plaintiff designates New York
YORK RESOURCES LLC, STERLING NATIONAL County as the place of trial. The
BANK, NEW YORK STATE DISTRICT ATTORNEY, basis of venue is the county in
STATE OF NEW YORK, CITY OF NEW YORK, NEW which the Property is situate.
YORK CITY ENVIRONMENTAL CONTROL BOARD,
NEW YORK CITY DEPARTMENT OF FINANCE
25,"
and "JOHN DOES, Numbered 1 through the names ngw yos
of the last twenty-five named defendants being fictitious, CLEBK S
oguNTY
real names unknown to plaintift the parties intended being
tenants or persons or corporations having an interest in as 0.5 2009
gg
tenants or persons in possession of portions of the mortgaged
premises, COMPARED
07
COPY Fli.E
gTH ·--
Defendants. -
---------..--..--..-----------------------X
TO THE ABOVE NAMED DEEENDANTS:
YOU ARE HEREBY SUMMONED to answer the complaint in this action and to serve
a copy of your answer, or, if the complaint is not served with this summons, to serve a notice of
plaintiffs'
appearance, on the attomey within 20 days after the service of this summons, .
exclusive of the day of service (or within 30 days after the service is coinplete if this summons is
not personally delivered to you within the State of New York); and in case of your failure to
-appear or answer, judgment will be taken against you by default for the relief demanded in the
complaint.
NOTICE
YOU ARE IN DANGER OF LOSING YOUR HOME
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IF YOU DO NOT RESPOND TO THIS SUMMONS AND COMPLAINT BY SERVING A
COPY OF THE ANSWER ON THE ATTORNEY FOR THE MORTGAGE COMPANY
WHO FILED THIS FORECLOSURE PROCEEDING AGAINST YOU AND FILING
THE ANSWER WITH THE COURT, A DEFAULT JUDGMENT MAY BE ENTERED
AND YOU CAN LOSE YOUR HOME.
SPEAK TO AN ATTORNEY OR GO TO THE COURT WHERE YOUR CASE IS
PENDING FOR FURTHER INFORMATION ON HOW TO ANSWER THE SUMMONS
AND PROTECT YOUR PROPERTY.
SENDING A PAYMENT TO YOUR MORTGAGE COMPANY WILL NOT STOP THIS
FORECLOSURE ACTION.
YOU MUST RESPOND BY SERVING A COPY OF THE ANSWER ON THE
ATTORNEY FOR THE PLAINTIFF (MORTGAGE COMPANY) AND FILING THE
ANSWER WITH THE COURT.
Dated: New York, New York
July 27, 2009
LAROCCA HORNIK ROSEN
GREENBERG & BLAHA LLP
By: An f D. Carlin, Esq.
Attorneys for Plaintiff
The Trump Building
32"d
40 Wall Street, Floor
New York, NY 10005
212-530-4822
TO: Bridge Associates of Soho, Inc.
619 Bridge Street,
Woodmere, New York 11598
Adam D. Luckner
619 Bridge Street,
Woodmere, New York 11598
Midway Holdings Corp.
619 Bridge Street,
Woodmere, New York 11598
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York Resources LLC
8001
510 East Street
New York, New York 10075
Sterling National Bank
650 Fifth Avenue
New York, New York 10019
New York State District Attorney
One Hogan Place
New York, New York 10013
People of the State of New York
W.A. Harriman Campus
Albany, New York 12227
City of New York Envirownental Control Board
66 John Street
New York, New York 10038
New York City Department of Taxation and Finance
66 John Street
New York, New York 10038
Tenant
533 Greenwich Street, Unit #B-E
New York, NY 10013
Tenant
533 Greenwich Street, Unit #1-E
New York, NY 10013
Tenant
533 Greenwich Street, Unit #1-W
New York, NY 10013
Tenant
533 Greenwich Street, Unit #2-E
New York, NY 10013
Tenant
533 Greenwich Street, Unit #2-W
New York, NY 10013
Tenant
533 Greenwich Street, Unit #3-E
New York, NY 10013
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Tenant
533 Greenwich Street, Unit #3-W
New York, NY 10013
Tenant
533 Greenwich Street, Unit #4-E
New York, NY 10013
Tenant
533 Greenwich Street, Unit #4-W
New York, NY 10013
Tenant
533 Greenwich Street, Unit #5-E
New York, NY 10013
Tenant
533 Greenwich Street, Unit #5-W
New York, NY 10013
Tenant
533 Greenwich Street, Unit #6-E
New York, NY 10013
Tenant
533 Greenwich Street, Unit #6-W
New York, NY 10013
Tenant
533 Greenwich Street, Unit #7-E
New York, NY 10013
Tenant
533 Greenwich Street, Unit #7-W
New York, NY 10013
Tenant
619 Bridge Street
Woodmere, New York 11598
Tenant
62 Clark Street
Long Beach, New York 11561
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SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
__-------____________..________________________Ç
STREET SNACKS, LLC,
Index No.:
Plaintiff,
VERIFIED
-against- COMPLAINT
BRIDGE ASSOCIATES OF SOHO, INC.,
ADAM D. LUCKNER, MIDWAY HOLDINGS CORP.,
YORK RESOURCES LLC, STERLING NATIONAL
BANK, NEW YORK STATE DISTRICT ATTORNEY,
STATE OF NEW YORK, CITY OF NEW YORK, NEW
YORK CITY ENVIRONMENTAL CONTROL BOARD,
NEW YORK CITY DEPARTMENT OF FINANCE
25,"
and "JOHN DOES, Numbered 1 through the names
of the last twenty-five named defendants being fictitious,
real names unknown to plaintiff, the parties intended being
tenants or persons or corporations having an interest in as
tenants or persons in possession of portions of the mortgaged
premises,
Defendants.
_________________________________________Ç
Plaintiff Street Snacks, LLC, by its attorneys LaRocca Hornik Rosen Greenberg
& Blaha LLP, as and for its complaint, alleges as follows:
PARTIES
1. Plaintiff Street Snacks, LLC ("Street Snacks") is a foreign limited liability
company authorized to do busmess m the State of New York and having its principal
place of business located in the County, City and State of New York.
2. Street Snacks is the holder in due course and owner of the right, title and
interest in the various debt instruments and loan documents evidencing or referring to the
commercial mortgage (collectively the "Loan Documents") referenced herein, all of
which have been assigned to itby First Central Savings Bank ("FCSB"). See Exhibit A.
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3. Upon infonnation and belief, defendant Bridge Associates of Soho, Inc.
("Bridge Associates") is a New York corporation having its principal place of business
located at 619 Bridge Street, Woodmere, New York 11598.
4. Bridge is the owner in fee simple absolute of the land, buildings,
structures, other improvements, and certain property subject to the New York State Lien
Law and the Unifonn Commercial Code located at 533 Greenwich Street, New York,
New York, (a/1da 99 Van Dam Street, New York, New York) more particularly described
in Exhibit B (the "New York City Property").
5. Upon infonnation and belief, Adam D. Luckner ("Adam Luckner") is a
citizen of the State of New York, residing at 619 Bridge Street, Woodmere, New York
11598.
6. Adam Luckner is the owner in fee simple absolute of the land, buildings,
structures, other improvements, and certain property subject to the New York State Lien
Law and the Uniform Commercial Code located at 619 Bridge Street, Woodmere, New
York, more particularly described in Exhibit C (the "Woodmere Property").
7. Adam Luckner is the owner in fee simple absolute of the land, buildings,
structures, other improvements, and certain property subject to the New York State Lien
Law and the Uniform Commercial Code located at 62 Clark Street, Long Beach, New
York, more particularly described in Exhibit D (the "Long Beach Property") (the New
York City Property, Woodmere Property and Long Beach Property are hereinafter
sometimes collectively referred to as the "Mortgaged Properties").
8. Defendants Bridge Associates and Adam Luckner have, claim to have, or
may claim to have some legal or equitable ownership or possessory interest in the
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Mortgaged Properties or some part thereof that is inferior to that of the subject mortgages
Snacks' Snacks'
and subject to Street right to foreclose such interest or Street right to
possession of the Mortgaged Properties.
9. Upon information and belief, defendant Midway Holdings Corp.
("Midway") is a New York corporation having itsprincipal place of business located at
619 Bridge Street, Woodmere, New York 11598.
10. Upon information and belief, York Resources LLC ("York") is a New
806
York limited liability company having a principal place of business at 510 East
Street, New York, New York.
11. York is made a party to this action by virtue of being the alleged holder of a
Subordinate Mortgage and Assignment of Leases and Rents dated as of May 30, 2008 and
in the recorded in the Office of the Register of the County of New York on June 23, 2008 at
CRFN 2008000250818, which mortgage is subject and subordinate to lien of Street Snacks
being foreclosed herein.
12. Upon information and belief, Sterling National Bank ("Sterling") is a New
York banking institution, having a principal place of business at 650 Fifth Avenue, New
York, New York.
13. Sterling is made a party to this action by virtue of being the alleged holder
of a Collateral Assignment of Mortgage and Loan Security Agreement dated as of July 31,
2008 and recorded in the Office of the Register of the County of New York on August 22,
2008 at CRFN 2008000336710, which collateral assignment is subject and subordinate to
the lien of Street Snacks being foreclosed herein.
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14. Upon information and belief, defendant New York State District Attorney
(the "District Attorney") is a governmental entity of the State of New York, which has
designated its address as One Hogan Place, New York, New York.
15. The District Attorney has, or claims to have, or may claim to have, some
interest in or lien upon the Mortgaged Properties or any part thereof as set forth in Exhibit E,
and any such lien or interest has occurred subsequent to,and is subject to and subordinate to,
the lien of Street Snacks being foreclosed herein.
16. Upon infonnation and belief, defendant State of New York ("NY State")
is a governmental entity which has designated itsaddress as Building 9, W.A. Harriman
Campus, Albany, New York 12227.
17. NY State is made a party to this action to bar it from any right, title or
interest it has, or may claim to have, in the Mortgaged Properties or any part thereof as
set forth in Exhibit E, for any unpaid New York State franchise, business, estate, gift or
transfer taxes or such other charges as may constitute a lien against the Mortgaged
Properties, to the extent such lien is subject and subordinate to the lien of Street Snacks
being foreclosed herein.
18. Upon infonnation and belief, defendant City of New York Environmental
Control Board (the "Enviromnental Control Board") is a governmental entity of the City
of New York, which has designated its address as 66 John Street, New York, New York
10038.
19. The Enviromnental Control Board is made a party to this action to bar it
from any right, title or interest it has, or may claim to have, in the Mortgaged Properties
or any part thereof as set forth in Exhibit E, for any unpaid enviromnental judgments or
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such other charges as may constitute a lien against the Mortgaged Properties that is
subject and subordinate to the lien of Street Snacks being foreclosed herein.
20. Upon infonnation and belief, defendant New York City Department of
Taxation and Finance (the "NYC Department of Finance") is a governmental entity of the
City of New York, which has designated its address as 66 John Street, New York, New
York 10038.
21. The NYC Department of Finance is made a party to this action to bar it
from any right, title or interest it has, or may claim to have, in the Mortgaged
Properties or any part thereof as set forth in Exhibit E, for any unpaid New York City
franchise or business taxes or such other charges as may constitute a lien against the
Mortgaged Properties that is subject and subordinate to the lien of Street Snacks being
foreclosed herein.
1-25"
22. Defendants "John Does are as of yet unknown persons or entities
which may or have an interest in the Mortgage Properties which interest is junior and
subordinate to that of Street Snacks, but whose joinder in the action is necessary to afford
plaintiff complete relief and eliminate any redemption rights of such parties following a
foreclosure sale.
BACKGROUND
A. The January 9, 2003 Loan Transaction.
23. On January 9, 2003, Bridge Associates duly executed, acknowledged and
delivered to FCSB a Mortgage Note (the "2003 Note") in the original principal sum of
$1,200,000, which sum it covenanted and agreed to pay in monthly instalhnents of interest
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on the principal sum at an annual rate equal to nine (9%) percent to FCSB, its successors
and assigns, commencing on March 1, 2003 and a like sum on the first day of each and
every month thereafter until August 1, 2003, when the entire principal would become due,
unless otherwise extended.
24. Section 3 of the 2003 Note provides that an Event of Default, as defmed
therein, shall include any failure to pay, when due, any amounts due thereunder, or the
failure to perform any of the tenns, covenants or conditions thereof or of any mortgage,
security agreement, loan agreement, promissory note, guaranty or other agreement executed
by Bridge Associates in connection with the 2003 Note or any other loan from FCSB either
to Bridge Associates or upon any guaranty or collateral of Bridge Associates.
25. Section 3 of the 2003 Note further provides that if an Event of Default
occurs, then all amounts due and owing under the 2003 Note shall forthwith become due
and payable at the option of FCSB without notice or demand.
26. Pursuant to the terms of the 2003 Note, Bridge Associates agreed to pay a
late charge of five (5%) percent of any payment or part thereof which is not paid within
fifteen (15) days of itsdue date.
27. Pursuant to the tenns of the 2003 Note, Bridge Associates further agreed that
interest after default or maturity thereunder shall be at the rate of twenty-four (24%) percent
per annum, and such rate shall continue after judgment until payment of the entire sum
owed thereunder.
28. Simultaneous with the execution of the 2003 Note and as security for its
payment, Bridge Associates duly executed, acknowledged and delivered to FCSB a
Mortgage (the "2003 Mortgage"), wherein and whereby.it mortgaged the New York City
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Property to FCSB. The 2003 Mortgage was duly recorded on October 20, 2003 in the
Office of the Register of New York County in CRFN#2003000429701, and the mortgage
tax duly paid thereon.
29. Pursuant to Section 1(b) of the 2003 Mortgage, Bridge Associates warranted
that there are no defenses, counterclaims, cross-claims or other claims, demands or offsets of
any nature whatsoever which can be asserted to: (i)reduce or eliminate all or any part of
Bridge Associate's liability under the 2003 Note or (ii)seek affinnative relief or damages
from FCSB.
30. Pursuant to Section 7 of the 2003 Mortgage, Bridge Associates agreed that
the whole of the principal sum and any interest shall become due and payable at the option
of FCSB, upon the occurrence of any default as defined therein, including, but not limited to
the default in the payment of any installment of principal or interest for ten (10) days.
31. The 2003 Mortgage provides the following: (a) that the holder of the 2003
Mortgage, in any action to foreclose it,shall be entitled to the appointment of a receiver; (b)
that upon default, in the event the FCSB retains counsel to foreclose the 2003 Mortgage, the
attorneys'
amount of reasonable fees, expenses, costs incurred and interest thereon at the
rate of twenty-four (24%) percent shall be payable by Bridge Associates and added to the
indebtedness secured; and (c) that in the case of a foreclosure sale of the mortgaged
premises, the mortgaged premises may be sold in one (1) parcel.
32. Simultaneously with the execution of the 2003 Note and 2003 Mortgage, and
in order to further induce FCSB to loan the sums set forth herein, Bridge Associates
executed and delivered to FCSB an Assignment of Rents and Leases (the "2003 Assignment
of Rents") related to the occupancy or right of possession of the New York City Property
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which was duly recorded in the Office of the Register of the County of New York on
October 20, 2003 at CRFN 2003000429703.
33. Pursuant to the 2003 Assignment of Rents, Bridge Associates absolutely
assigned to FCSB allleases, subleases, licenses, rental contracts and other agreement and all
rents, issues, profits, income and proceeds of the New York City Property and authorized
and conferred upon FCSB the right to collect, retain and realize the benefits of same. Bridge
Associates further appointed FCSB as its agent and attorney in fact to enforce payment,
collection and the benefit of and for allsuch rents, issues, profits, income and proceeds and
apply same to the indebtedness in accordance with the terms of the 2003 Note and 2003
Mortgage.
34. The 2003 Note, which was executed by Adam Luckner, as President of
Bridge Associates, and Susan J. Luckner ("Susan Luc1mer"), as Vice-President of Bridge
Associates, is guaranteed by Adam Luclmer, individually and Susan Luckner, individually
(hereinafter Adam Luckner and Susan Luckner are sometimes collectively referred to as the
"Luckners") pursuant to a Commercial Loan Guaranty dated January 9, 2003 (the "2003
Guaranty"). The 2003 Guaranty is an absolute and unconditional guarantee of payment of
allsums owed by Bridge Associates to FCSB and performance of all obligations of Bridge
Associates under the 2003 Note and 2003 Mortgage.
35. As security for the payment of the 2003 Guaranty, on January 9, 2003,
Adam Luckner duly executed, acknowledged and delivered to FCSB a Guaranty Mortgage
(the "2003 Woodmere Guaranty Mortgage"), wherein and whereby he mortgaged the
Woodmere Property to FCSB.
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36. Pursuant to Paragraph 1(b) of the 2003 Woodmere Guaranty Mo1tgage,
Adam Luckner warranted that there are no defenses, counterclaims, cross-claims or other
claims, demands or offsets of any nature whatsoever which can be asserted to: (i)reduce or
eliminate all or any part of his liability under the Guaranty or (ii)seek affinnative relief or
damages from FCSB.
37. Pursuant to Section 7 of the 2003 Woodmere Guaranty Mortgage, Adam
Luckner agreed that upon the occurrence of any default as defined therein, including, but not
limited to the default in the payment of any obligation under the 2003 Guaranty, FCSB may
take such action, without notice or demand, as it deems advisable, to protect and enforce its
rights against him an in and to the Woodmere Property.
38. The 2003 Woodmere Guaranty Mortgage further provides the following: (a)
. .
that FCSB, in any action to foreclose the 2003 Woodmere Guaranty Mortgage, shall be
entitled to the appointment of a receiver; (b) that upon default, in the event the FCSB retains
counsel to foreclose the 2003 Woodmere Guaranty Mortgage, the amount of reasonable
attorneys'
fees, expenses, costs incurred and interest thereon at the rate of twenty-four (24%)
percent shall be payable by Adam Luckner and added to the indebtedness secured; and (c)
that in the case of a foreclosure sale of the mortgaged premises, the mortgaged premises
may be sold in one (1) parcel.
39. As further security for the payment of the 2003 Guaranty, on January 9,
2003, the Luclmers duly executed, acknowledged and delivered to FCSB a Guaranty
Mortgage (the "2003 Long Beach Guaranty Mortgage"), wherein and whereby they
mortgaged the Long Beach Property to FCSB.
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40. Pursuant to Paragraph 1(b) of the 2003 Long Beach Guaranty Mortgage, the
Luckners warranted that there are no defenses, counterclaims, cross-claims or other claims,
demands or offsets of any nature whatsoever which can be asserted to: (i) reduce or
eliminate all or any part of their liability under the Guaranty or (ii) seek affinnative relief or
damages from FCSB.
41. Pursuant to Section 7 of the 2003 Long Beach Guaranty Mortgage, the
Luclmers agreed that upon the occurrence of any default as defined therein, including, but
not limited to the default in the payment of any obligation under the 2003 Guaranty, FCSB
may take such action, without notice or demand, as it deems advisable, to protect and
enforce itsrights against them an in and to the Long Beach Property.
42. The 2003 Long Beach Guaranty Mortgage further provides the following:
(a) that FCSB, in any action to foreclose the 2003 Long Beach Guaranty Mortgage, shall be
entitled to the appointment of a receiver; (b) that upon default, in the event the FCSB retains
counsel to foreclose the 2003 Long Beach Guaranty Mortgage, the amount of reasonable
attorneys'
fees, expenses, costs incurred and interest thereon at the rate of twenty-four (24%)
percent shall be payable by the Luckners and added to the indebtedness secured; and (c) that
in the case of a foreclosure sale of the mortgaged premises, the mortgaged premises may be
sold in one (1) parcel.
B. The May 24, 2004 Loan Transaction.
43. On May 24, 2004, Bridge Associates duly executed, acknowledged and
delivered to FCSB a Mortgage Note (the "2004 Mortgage Note") in the original principal
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sum of $4,416.97 with interest thereon at an annual rate of eight and 75/100 (8.75%)
percent, which sum itcovenanted and agreed to pay on demand.
44. Simultaneous with the execution of the 2004 Mortgage Note, and as security
for itspayment, Bridge Associates, duly executed, acleowledged and delivered to FCSB a
Mortgage (the "2004 Mortgage"), wherein and whereby it mortgaged the New York City
Property to FCSB. The 2004 Mortgage was duly recorded September 1, 2004 in the Office
of the Register of New York County in CRFN#2004000548045, and the mortgage tax duly
paid thereon.
45. Pursuant to the 2004 Mortgage, Bridge Associates agreed that the whole of
the principal sum of the 2004 Note and interest shall become due at the option of FCSB after
the default in the payment of any installment of principal or of interest for ten (10) days.
46. The 2004 Mortgage provides that the holder of the 2004 Mortgage, in any
action to foreclose it,shall be entitled to the appointment of a receiver.
47. Pursuant to the 2004 Mortgage, Bridge Associates agreed that
simultaneously therewith, the lien evidenced by the 2004 Mortgage was being
consolidated with other existing mortgage liens to form a consolidated firstmortgage lien
in the amount of $1,188,000 pursuant to a Modification, Extension and Consolidation
Agreement of the even date. Bridge Associates further agreed that upon the execution
and recording of said agreement, the tenns and conditions thereof applied to the lien
evidenced by the 2004 Mortgage and the payment of the indebtedness secured thereby.
48. Simultaneous with the execution of the 2004 Mortgage Note and the 2004
Mortgage, Bridge Associates duly executed, acknowledged and delivered to FCSB a
Substitute Mortgage Note (the "2004 Substitute Note") in the original principal sum of
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$1,188,000, which sum it covenanted and agreed to pay in monthly instalhnents of interest
on the principal sum at an initial annual rate equal to eight and 75/100 (8.75%) percent,
commencing on July 1, 2004 and a like sum on the firstday of each and every month
thereafter untilJanuary 31, 2005, when the entire principal would become due.
49. Pursuant to Section 12 of the 2004 Substitute Note, Bridge Associates agreed
that said note substitutes for and supersedes the 2003 Note and the 2004 Mortgage Note.
Bridge Associates further agreed that the debt represented by the 2003 Note and the 2004
Mortgage Note is consolidated by the 2004 Note, but that those notes were not deemed paid
thereby.
50. Section 3 of the 2004 Substitute Note provides that an Byent of Default, as
defmed therein, shall include any failure to pay, when due, any amounts due thereunder, or
the failure to perfonn any of the terms, covenants or conditions thereof or of any mortgage,
security agreement, loan agreement, promissory note, guaranty or other agreement executed
by Bridge Associates in connection with the 2004 Substitute Note or any other loan from
FCSB either to Bridge Associates or upon any guaranty or collateral of Bridge Associates.
.
51. Section 3 of the 2004 Substitute Note further provides that if an Event of
Default occurs, then all amounts due and owing under the 2004 Substitute Note shall
forthwith become due and payable at the option of FCSB without notice or demand.
52. Pursuant to the tenns of the 2004 Substitute Note, Bridge Associates agreed
to pay a late charge of five (5%) percent of any payment or part thereof which is not paid
within fifteen (15) days of itsdue date.
53. Pursuant to the tenns of the 2004 Substitute Note, Bridge Associates further
agreed that interest after default or maturity thereunder shall be at the rate of twenty-four
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(24%) percent per annum, and such rate shall continue afterjudgment until payment of the
entire sum owed thereunder.
54. As security for the payment of the 2004 Substitute Note, on May 24, 2004,
Bridge Associates, duly executed, acknowledged and delivered to FCSB a Modification,
Extension and Consolidation Agreement with Spreader (the "2004 Consolidation
Agreement"), wherein and whereby itmortgaged the New York City Property to FCSB.
The 2004 Consolidation Agreement was duly recorded in the Office of the Register of the
County of New York on September 1, 2004 at CRFN 2004000548046, and the mortgage tax
duly paid thereon.
55. The 2004 Consolidation Agreement modified, extended, consolidated and
spread the 2003 Mort
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FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 EXHIBIT D FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 BUPREME UOURT OF TIE STATE OF NEW YORK COUNTY OF NEW YORK -----.----..----------------------··-------X STREET SNACKS, LLC, Index No.: Plaintiff, Date of Purchase: -against- . SUMMONS BRIDGE ASSOCIATES OF SOHO, INC., ADAM D. LUCKNER, MIDWAY HOLDINGS CORP., Plaintiff designates New York YORK RESOURCES LLC, STERLING NATIONAL County as the place of trial. The BANK, NEW YORK STATE DISTRICT ATTORNEY, basis of venue is the county in STATE OF NEW YORK, CITY OF NEW YORK, NEW which the Property is situate. YORK CITY ENVIRONMENTAL CONTROL BOARD, NEW YORK CITY DEPARTMENT OF FINANCE 25," and "JOHN DOES, Numbered 1 through the names ngw yos of the last twenty-five named defendants being fictitious, CLEBK S oguNTY real names unknown to plaintift the parties intended being tenants or persons or corporations having an interest in as 0.5 2009 gg tenants or persons in possession of portions of the mortgaged premises, COMPARED 07 COPY Fli.E gTH ·-- Defendants. - ---------..--..--..-----------------------X TO THE ABOVE NAMED DEEENDANTS: YOU ARE HEREBY SUMMONED to answer the complaint in this action and to serve a copy of your answer, or, if the complaint is not served with this summons, to serve a notice of plaintiffs' appearance, on the attomey within 20 days after the service of this summons, . exclusive of the day of service (or within 30 days after the service is coinplete if this summons is not personally delivered to you within the State of New York); and in case of your failure to -appear or answer, judgment will be taken against you by default for the relief demanded in the complaint. NOTICE YOU ARE IN DANGER OF LOSING YOUR HOME FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 IF YOU DO NOT RESPOND TO THIS SUMMONS AND COMPLAINT BY SERVING A COPY OF THE ANSWER ON THE ATTORNEY FOR THE MORTGAGE COMPANY WHO FILED THIS FORECLOSURE PROCEEDING AGAINST YOU AND FILING THE ANSWER WITH THE COURT, A DEFAULT JUDGMENT MAY BE ENTERED AND YOU CAN LOSE YOUR HOME. SPEAK TO AN ATTORNEY OR GO TO THE COURT WHERE YOUR CASE IS PENDING FOR FURTHER INFORMATION ON HOW TO ANSWER THE SUMMONS AND PROTECT YOUR PROPERTY. SENDING A PAYMENT TO YOUR MORTGAGE COMPANY WILL NOT STOP THIS FORECLOSURE ACTION. YOU MUST RESPOND BY SERVING A COPY OF THE ANSWER ON THE ATTORNEY FOR THE PLAINTIFF (MORTGAGE COMPANY) AND FILING THE ANSWER WITH THE COURT. Dated: New York, New York July 27, 2009 LAROCCA HORNIK ROSEN GREENBERG & BLAHA LLP By: An f D. Carlin, Esq. Attorneys for Plaintiff The Trump Building 32"d 40 Wall Street, Floor New York, NY 10005 212-530-4822 TO: Bridge Associates of Soho, Inc. 619 Bridge Street, Woodmere, New York 11598 Adam D. Luckner 619 Bridge Street, Woodmere, New York 11598 Midway Holdings Corp. 619 Bridge Street, Woodmere, New York 11598 IA18222.03\Sunmens.doc 2 FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 York Resources LLC 8001 510 East Street New York, New York 10075 Sterling National Bank 650 Fifth Avenue New York, New York 10019 New York State District Attorney One Hogan Place New York, New York 10013 People of the State of New York W.A. Harriman Campus Albany, New York 12227 City of New York Envirownental Control Board 66 John Street New York, New York 10038 New York City Department of Taxation and Finance 66 John Street New York, New York 10038 Tenant 533 Greenwich Street, Unit #B-E New York, NY 10013 Tenant 533 Greenwich Street, Unit #1-E New York, NY 10013 Tenant 533 Greenwich Street, Unit #1-W New York, NY 10013 Tenant 533 Greenwich Street, Unit #2-E New York, NY 10013 Tenant 533 Greenwich Street, Unit #2-W New York, NY 10013 Tenant 533 Greenwich Street, Unit #3-E New York, NY 10013 L:\18222.03\Sununons.doc 3 FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 Tenant 533 Greenwich Street, Unit #3-W New York, NY 10013 Tenant 533 Greenwich Street, Unit #4-E New York, NY 10013 Tenant 533 Greenwich Street, Unit #4-W New York, NY 10013 Tenant 533 Greenwich Street, Unit #5-E New York, NY 10013 Tenant 533 Greenwich Street, Unit #5-W New York, NY 10013 Tenant 533 Greenwich Street, Unit #6-E New York, NY 10013 Tenant 533 Greenwich Street, Unit #6-W New York, NY 10013 Tenant 533 Greenwich Street, Unit #7-E New York, NY 10013 Tenant 533 Greenwich Street, Unit #7-W New York, NY 10013 Tenant 619 Bridge Street Woodmere, New York 11598 Tenant 62 Clark Street Long Beach, New York 11561 L:\18222.03\Summonsdoc FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK __-------____________..________________________Ç STREET SNACKS, LLC, Index No.: Plaintiff, VERIFIED -against- COMPLAINT BRIDGE ASSOCIATES OF SOHO, INC., ADAM D. LUCKNER, MIDWAY HOLDINGS CORP., YORK RESOURCES LLC, STERLING NATIONAL BANK, NEW YORK STATE DISTRICT ATTORNEY, STATE OF NEW YORK, CITY OF NEW YORK, NEW YORK CITY ENVIRONMENTAL CONTROL BOARD, NEW YORK CITY DEPARTMENT OF FINANCE 25," and "JOHN DOES, Numbered 1 through the names of the last twenty-five named defendants being fictitious, real names unknown to plaintiff, the parties intended being tenants or persons or corporations having an interest in as tenants or persons in possession of portions of the mortgaged premises, Defendants. _________________________________________Ç Plaintiff Street Snacks, LLC, by its attorneys LaRocca Hornik Rosen Greenberg & Blaha LLP, as and for its complaint, alleges as follows: PARTIES 1. Plaintiff Street Snacks, LLC ("Street Snacks") is a foreign limited liability company authorized to do busmess m the State of New York and having its principal place of business located in the County, City and State of New York. 2. Street Snacks is the holder in due course and owner of the right, title and interest in the various debt instruments and loan documents evidencing or referring to the commercial mortgage (collectively the "Loan Documents") referenced herein, all of which have been assigned to itby First Central Savings Bank ("FCSB"). See Exhibit A. FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 3. Upon infonnation and belief, defendant Bridge Associates of Soho, Inc. ("Bridge Associates") is a New York corporation having its principal place of business located at 619 Bridge Street, Woodmere, New York 11598. 4. Bridge is the owner in fee simple absolute of the land, buildings, structures, other improvements, and certain property subject to the New York State Lien Law and the Unifonn Commercial Code located at 533 Greenwich Street, New York, New York, (a/1da 99 Van Dam Street, New York, New York) more particularly described in Exhibit B (the "New York City Property"). 5. Upon infonnation and belief, Adam D. Luckner ("Adam Luckner") is a citizen of the State of New York, residing at 619 Bridge Street, Woodmere, New York 11598. 6. Adam Luckner is the owner in fee simple absolute of the land, buildings, structures, other improvements, and certain property subject to the New York State Lien Law and the Uniform Commercial Code located at 619 Bridge Street, Woodmere, New York, more particularly described in Exhibit C (the "Woodmere Property"). 7. Adam Luckner is the owner in fee simple absolute of the land, buildings, structures, other improvements, and certain property subject to the New York State Lien Law and the Uniform Commercial Code located at 62 Clark Street, Long Beach, New York, more particularly described in Exhibit D (the "Long Beach Property") (the New York City Property, Woodmere Property and Long Beach Property are hereinafter sometimes collectively referred to as the "Mortgaged Properties"). 8. Defendants Bridge Associates and Adam Luckner have, claim to have, or may claim to have some legal or equitable ownership or possessory interest in the LA18222.03\Complaint7-31-09(2).doc 2 FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 Mortgaged Properties or some part thereof that is inferior to that of the subject mortgages Snacks' Snacks' and subject to Street right to foreclose such interest or Street right to possession of the Mortgaged Properties. 9. Upon information and belief, defendant Midway Holdings Corp. ("Midway") is a New York corporation having itsprincipal place of business located at 619 Bridge Street, Woodmere, New York 11598. 10. Upon information and belief, York Resources LLC ("York") is a New 806 York limited liability company having a principal place of business at 510 East Street, New York, New York. 11. York is made a party to this action by virtue of being the alleged holder of a Subordinate Mortgage and Assignment of Leases and Rents dated as of May 30, 2008 and in the recorded in the Office of the Register of the County of New York on June 23, 2008 at CRFN 2008000250818, which mortgage is subject and subordinate to lien of Street Snacks being foreclosed herein. 12. Upon information and belief, Sterling National Bank ("Sterling") is a New York banking institution, having a principal place of business at 650 Fifth Avenue, New York, New York. 13. Sterling is made a party to this action by virtue of being the alleged holder of a Collateral Assignment of Mortgage and Loan Security Agreement dated as of July 31, 2008 and recorded in the Office of the Register of the County of New York on August 22, 2008 at CRFN 2008000336710, which collateral assignment is subject and subordinate to the lien of Street Snacks being foreclosed herein. D\18222.03\Complaint.7-31-09(2).doc 3 FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 14. Upon information and belief, defendant New York State District Attorney (the "District Attorney") is a governmental entity of the State of New York, which has designated its address as One Hogan Place, New York, New York. 15. The District Attorney has, or claims to have, or may claim to have, some interest in or lien upon the Mortgaged Properties or any part thereof as set forth in Exhibit E, and any such lien or interest has occurred subsequent to,and is subject to and subordinate to, the lien of Street Snacks being foreclosed herein. 16. Upon infonnation and belief, defendant State of New York ("NY State") is a governmental entity which has designated itsaddress as Building 9, W.A. Harriman Campus, Albany, New York 12227. 17. NY State is made a party to this action to bar it from any right, title or interest it has, or may claim to have, in the Mortgaged Properties or any part thereof as set forth in Exhibit E, for any unpaid New York State franchise, business, estate, gift or transfer taxes or such other charges as may constitute a lien against the Mortgaged Properties, to the extent such lien is subject and subordinate to the lien of Street Snacks being foreclosed herein. 18. Upon infonnation and belief, defendant City of New York Environmental Control Board (the "Enviromnental Control Board") is a governmental entity of the City of New York, which has designated its address as 66 John Street, New York, New York 10038. 19. The Enviromnental Control Board is made a party to this action to bar it from any right, title or interest it has, or may claim to have, in the Mortgaged Properties or any part thereof as set forth in Exhibit E, for any unpaid enviromnental judgments or IA18222.03\Complaim.7-31-09(2).doc FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 such other charges as may constitute a lien against the Mortgaged Properties that is subject and subordinate to the lien of Street Snacks being foreclosed herein. 20. Upon infonnation and belief, defendant New York City Department of Taxation and Finance (the "NYC Department of Finance") is a governmental entity of the City of New York, which has designated its address as 66 John Street, New York, New York 10038. 21. The NYC Department of Finance is made a party to this action to bar it from any right, title or interest it has, or may claim to have, in the Mortgaged Properties or any part thereof as set forth in Exhibit E, for any unpaid New York City franchise or business taxes or such other charges as may constitute a lien against the Mortgaged Properties that is subject and subordinate to the lien of Street Snacks being foreclosed herein. 1-25" 22. Defendants "John Does are as of yet unknown persons or entities which may or have an interest in the Mortgage Properties which interest is junior and subordinate to that of Street Snacks, but whose joinder in the action is necessary to afford plaintiff complete relief and eliminate any redemption rights of such parties following a foreclosure sale. BACKGROUND A. The January 9, 2003 Loan Transaction. 23. On January 9, 2003, Bridge Associates duly executed, acknowledged and delivered to FCSB a Mortgage Note (the "2003 Note") in the original principal sum of $1,200,000, which sum it covenanted and agreed to pay in monthly instalhnents of interest L"\18222.03\Comp1nint.7-31-09(2).doc FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 on the principal sum at an annual rate equal to nine (9%) percent to FCSB, its successors and assigns, commencing on March 1, 2003 and a like sum on the first day of each and every month thereafter until August 1, 2003, when the entire principal would become due, unless otherwise extended. 24. Section 3 of the 2003 Note provides that an Event of Default, as defmed therein, shall include any failure to pay, when due, any amounts due thereunder, or the failure to perform any of the tenns, covenants or conditions thereof or of any mortgage, security agreement, loan agreement, promissory note, guaranty or other agreement executed by Bridge Associates in connection with the 2003 Note or any other loan from FCSB either to Bridge Associates or upon any guaranty or collateral of Bridge Associates. 25. Section 3 of the 2003 Note further provides that if an Event of Default occurs, then all amounts due and owing under the 2003 Note shall forthwith become due and payable at the option of FCSB without notice or demand. 26. Pursuant to the terms of the 2003 Note, Bridge Associates agreed to pay a late charge of five (5%) percent of any payment or part thereof which is not paid within fifteen (15) days of itsdue date. 27. Pursuant to the tenns of the 2003 Note, Bridge Associates further agreed that interest after default or maturity thereunder shall be at the rate of twenty-four (24%) percent per annum, and such rate shall continue after judgment until payment of the entire sum owed thereunder. 28. Simultaneous with the execution of the 2003 Note and as security for its payment, Bridge Associates duly executed, acknowledged and delivered to FCSB a Mortgage (the "2003 Mortgage"), wherein and whereby.it mortgaged the New York City LA18222,03 ComplainL7-31-09(2)Ac FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 Property to FCSB. The 2003 Mortgage was duly recorded on October 20, 2003 in the Office of the Register of New York County in CRFN#2003000429701, and the mortgage tax duly paid thereon. 29. Pursuant to Section 1(b) of the 2003 Mortgage, Bridge Associates warranted that there are no defenses, counterclaims, cross-claims or other claims, demands or offsets of any nature whatsoever which can be asserted to: (i)reduce or eliminate all or any part of Bridge Associate's liability under the 2003 Note or (ii)seek affinnative relief or damages from FCSB. 30. Pursuant to Section 7 of the 2003 Mortgage, Bridge Associates agreed that the whole of the principal sum and any interest shall become due and payable at the option of FCSB, upon the occurrence of any default as defined therein, including, but not limited to the default in the payment of any installment of principal or interest for ten (10) days. 31. The 2003 Mortgage provides the following: (a) that the holder of the 2003 Mortgage, in any action to foreclose it,shall be entitled to the appointment of a receiver; (b) that upon default, in the event the FCSB retains counsel to foreclose the 2003 Mortgage, the attorneys' amount of reasonable fees, expenses, costs incurred and interest thereon at the rate of twenty-four (24%) percent shall be payable by Bridge Associates and added to the indebtedness secured; and (c) that in the case of a foreclosure sale of the mortgaged premises, the mortgaged premises may be sold in one (1) parcel. 32. Simultaneously with the execution of the 2003 Note and 2003 Mortgage, and in order to further induce FCSB to loan the sums set forth herein, Bridge Associates executed and delivered to FCSB an Assignment of Rents and Leases (the "2003 Assignment of Rents") related to the occupancy or right of possession of the New York City Property LAl8222.03\Comphint.7-31-09(2),doc FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 which was duly recorded in the Office of the Register of the County of New York on October 20, 2003 at CRFN 2003000429703. 33. Pursuant to the 2003 Assignment of Rents, Bridge Associates absolutely assigned to FCSB allleases, subleases, licenses, rental contracts and other agreement and all rents, issues, profits, income and proceeds of the New York City Property and authorized and conferred upon FCSB the right to collect, retain and realize the benefits of same. Bridge Associates further appointed FCSB as its agent and attorney in fact to enforce payment, collection and the benefit of and for allsuch rents, issues, profits, income and proceeds and apply same to the indebtedness in accordance with the terms of the 2003 Note and 2003 Mortgage. 34. The 2003 Note, which was executed by Adam Luckner, as President of Bridge Associates, and Susan J. Luckner ("Susan Luc1mer"), as Vice-President of Bridge Associates, is guaranteed by Adam Luclmer, individually and Susan Luckner, individually (hereinafter Adam Luckner and Susan Luckner are sometimes collectively referred to as the "Luckners") pursuant to a Commercial Loan Guaranty dated January 9, 2003 (the "2003 Guaranty"). The 2003 Guaranty is an absolute and unconditional guarantee of payment of allsums owed by Bridge Associates to FCSB and performance of all obligations of Bridge Associates under the 2003 Note and 2003 Mortgage. 35. As security for the payment of the 2003 Guaranty, on January 9, 2003, Adam Luckner duly executed, acknowledged and delivered to FCSB a Guaranty Mortgage (the "2003 Woodmere Guaranty Mortgage"), wherein and whereby he mortgaged the Woodmere Property to FCSB. IA18222.03\Compinint,7-31-09(2)£oc FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 36. Pursuant to Paragraph 1(b) of the 2003 Woodmere Guaranty Mo1tgage, Adam Luckner warranted that there are no defenses, counterclaims, cross-claims or other claims, demands or offsets of any nature whatsoever which can be asserted to: (i)reduce or eliminate all or any part of his liability under the Guaranty or (ii)seek affinnative relief or damages from FCSB. 37. Pursuant to Section 7 of the 2003 Woodmere Guaranty Mortgage, Adam Luckner agreed that upon the occurrence of any default as defined therein, including, but not limited to the default in the payment of any obligation under the 2003 Guaranty, FCSB may take such action, without notice or demand, as it deems advisable, to protect and enforce its rights against him an in and to the Woodmere Property. 38. The 2003 Woodmere Guaranty Mortgage further provides the following: (a) . . that FCSB, in any action to foreclose the 2003 Woodmere Guaranty Mortgage, shall be entitled to the appointment of a receiver; (b) that upon default, in the event the FCSB retains counsel to foreclose the 2003 Woodmere Guaranty Mortgage, the amount of reasonable attorneys' fees, expenses, costs incurred and interest thereon at the rate of twenty-four (24%) percent shall be payable by Adam Luckner and added to the indebtedness secured; and (c) that in the case of a foreclosure sale of the mortgaged premises, the mortgaged premises may be sold in one (1) parcel. 39. As further security for the payment of the 2003 Guaranty, on January 9, 2003, the Luclmers duly executed, acknowledged and delivered to FCSB a Guaranty Mortgage (the "2003 Long Beach Guaranty Mortgage"), wherein and whereby they mortgaged the Long Beach Property to FCSB. LA18222,03Tomplaint.7-31-09(2)4oc FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 40. Pursuant to Paragraph 1(b) of the 2003 Long Beach Guaranty Mortgage, the Luckners warranted that there are no defenses, counterclaims, cross-claims or other claims, demands or offsets of any nature whatsoever which can be asserted to: (i) reduce or eliminate all or any part of their liability under the Guaranty or (ii) seek affinnative relief or damages from FCSB. 41. Pursuant to Section 7 of the 2003 Long Beach Guaranty Mortgage, the Luclmers agreed that upon the occurrence of any default as defined therein, including, but not limited to the default in the payment of any obligation under the 2003 Guaranty, FCSB may take such action, without notice or demand, as it deems advisable, to protect and enforce itsrights against them an in and to the Long Beach Property. 42. The 2003 Long Beach Guaranty Mortgage further provides the following: (a) that FCSB, in any action to foreclose the 2003 Long Beach Guaranty Mortgage, shall be entitled to the appointment of a receiver; (b) that upon default, in the event the FCSB retains counsel to foreclose the 2003 Long Beach Guaranty Mortgage, the amount of reasonable attorneys' fees, expenses, costs incurred and interest thereon at the rate of twenty-four (24%) percent shall be payable by the Luckners and added to the indebtedness secured; and (c) that in the case of a foreclosure sale of the mortgaged premises, the mortgaged premises may be sold in one (1) parcel. B. The May 24, 2004 Loan Transaction. 43. On May 24, 2004, Bridge Associates duly executed, acknowledged and delivered to FCSB a Mortgage Note (the "2004 Mortgage Note") in the original principal LA18222.03\Complaint.7-31-09(2).doc FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 sum of $4,416.97 with interest thereon at an annual rate of eight and 75/100 (8.75%) percent, which sum itcovenanted and agreed to pay on demand. 44. Simultaneous with the execution of the 2004 Mortgage Note, and as security for itspayment, Bridge Associates, duly executed, acleowledged and delivered to FCSB a Mortgage (the "2004 Mortgage"), wherein and whereby it mortgaged the New York City Property to FCSB. The 2004 Mortgage was duly recorded September 1, 2004 in the Office of the Register of New York County in CRFN#2004000548045, and the mortgage tax duly paid thereon. 45. Pursuant to the 2004 Mortgage, Bridge Associates agreed that the whole of the principal sum of the 2004 Note and interest shall become due at the option of FCSB after the default in the payment of any installment of principal or of interest for ten (10) days. 46. The 2004 Mortgage provides that the holder of the 2004 Mortgage, in any action to foreclose it,shall be entitled to the appointment of a receiver. 47. Pursuant to the 2004 Mortgage, Bridge Associates agreed that simultaneously therewith, the lien evidenced by the 2004 Mortgage was being consolidated with other existing mortgage liens to form a consolidated firstmortgage lien in the amount of $1,188,000 pursuant to a Modification, Extension and Consolidation Agreement of the even date. Bridge Associates further agreed that upon the execution and recording of said agreement, the tenns and conditions thereof applied to the lien evidenced by the 2004 Mortgage and the payment of the indebtedness secured thereby. 48. Simultaneous with the execution of the 2004 Mortgage Note and the 2004 Mortgage, Bridge Associates duly executed, acknowledged and delivered to FCSB a Substitute Mortgage Note (the "2004 Substitute Note") in the original principal sum of IA18222,03Tomplaint.7-31-09(2).doc FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 $1,188,000, which sum it covenanted and agreed to pay in monthly instalhnents of interest on the principal sum at an initial annual rate equal to eight and 75/100 (8.75%) percent, commencing on July 1, 2004 and a like sum on the firstday of each and every month thereafter untilJanuary 31, 2005, when the entire principal would become due. 49. Pursuant to Section 12 of the 2004 Substitute Note, Bridge Associates agreed that said note substitutes for and supersedes the 2003 Note and the 2004 Mortgage Note. Bridge Associates further agreed that the debt represented by the 2003 Note and the 2004 Mortgage Note is consolidated by the 2004 Note, but that those notes were not deemed paid thereby. 50. Section 3 of the 2004 Substitute Note provides that an Byent of Default, as defmed therein, shall include any failure to pay, when due, any amounts due thereunder, or the failure to perfonn any of the terms, covenants or conditions thereof or of any mortgage, security agreement, loan agreement, promissory note, guaranty or other agreement executed by Bridge Associates in connection with the 2004 Substitute Note or any other loan from FCSB either to Bridge Associates or upon any guaranty or collateral of Bridge Associates. . 51. Section 3 of the 2004 Substitute Note further provides that if an Event of Default occurs, then all amounts due and owing under the 2004 Substitute Note shall forthwith become due and payable at the option of FCSB without notice or demand. 52. Pursuant to the tenns of the 2004 Substitute Note, Bridge Associates agreed to pay a late charge of five (5%) percent of any payment or part thereof which is not paid within fifteen (15) days of itsdue date. 53. Pursuant to the tenns of the 2004 Substitute Note, Bridge Associates further agreed that interest after default or maturity thereunder shall be at the rate of twenty-four L:\18222.03\Complaint.7-31-09(2),doc FILED: NEW YORK COUNTY CLERK 12/14/2022 06:03 PM INDEX NO. 602374/2009 NYSCEF DOC. NO. 170 RECEIVED NYSCEF: 12/14/2022 (24%) percent per annum, and such rate shall continue afterjudgment until payment of the entire sum owed thereunder. 54. As security for the payment of the 2004 Substitute Note, on May 24, 2004, Bridge Associates, duly executed, acknowledged and delivered to FCSB a Modification, Extension and Consolidation Agreement with Spreader (the "2004 Consolidation Agreement"), wherein and whereby itmortgaged the New York City Property to FCSB. The 2004 Consolidation Agreement was duly recorded in the Office of the Register of the County of New York on September 1, 2004 at CRFN 2004000548046, and the mortgage tax duly paid thereon. 55. The 2004 Consolidation Agreement modified, extended, consolidated and spread the 2003 Mort