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HomeMy WebLinkAbout5764RESOLUTION NO. 5764 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO EXECUTE DOCUMENTS TO SETTLE A PROPERTY FORFEITURE CLAIM BETWEEN THE CITY OF AUBURN AND VARIOUS CLAIMANTS WHEREAS, in 2020 and 2021, the City of Auburn seized $59,462.35 in cash, five vehicles, and two real properties from several individuals pursuant to RCW 69.50.505. The City seized these items because the property owners used or intended to use them to facilitate the sale, delivery, or receipt of controlled substances, and/or used them to illegally manufacture marijuana, and/or acquired them with proceeds from the illegal manufacture of marijuana; and WHEREAS, the property owners challenged these City property seizures through administrative and superior court causes of action; and WHEREAS, to avoid further litigation, the City and the property owners have agreed to resolve the causes of action by dividing the seized property between the parties; and WHEREAS, accordingly, the parties have negotiated the terms of a proposed settlement, which terms are memorialized by the agreement documents that are attached to this Resolution. These proposed settlement documents consist of a written settlement agreement, and several additional legal instruments necessary to secure faithful performance of the agreement. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, RESOLVES as follows: Resolution No. 5764 March 28, 2024 Page 1 of 3 Rev.2019 Section 1. The Mayor is authorized to execute an Agreement to settle the City seizure legal causes of action between the City and Huipeng Liao, Wai Pheng Chan, Yizheng Chen, Huiping Liao and Xuchu Huang, which agreement will be in substantial conformity with the agreement attached as Exhibit A to this Resolution. Section 2. The Mayor is further authorized to execute two promissory notes (one for$199,000.00 and one for$158,492.00) between the City and Huipeng Liao, Wai Pheng Chan, Yizheng Chen, Huiping Liao, Rachel Chan, and Alan Chan, which notes will be in substantial conformity with the notes attached as Exhibit A to this Resolution. Section 3. The Mayor is further authorized to execute a deed of trust between the City and Huiping Liao and Yizheng Chen which deed of trust will be in substantial conformity with the deed of trust attached as Exhibit A to this Resolution. Section 4. The Mayor is further authorized to execute a deed of trust between the City and Huiping Liao and Wai Pheng Chan, which deed of trust will be in substantial conformity with the deed of trust attached as Exhibit A to this Resolution. Section 5. The Mayor is further authorized to assent to two confessions of judgment (one concerning a debt of$159,200 and one concerning a debt of$126,792.00) which confessions of judgment will be in substantial conformity with the confessions of judgment attached as Exhibit A to this Resolution. Section 6. The Mayor is authorized to implement those administrative procedures necessary to carry out the directives of this legislation. Resolution No. 5764 March 28, 2024 Page 2 of 3 Rev.2019 Section 7. This Resolution will take effect and be in full force on passage and signatures. Dated and Signed: A V\ ED)-()11 CITY OF AUBURN NCY BS, MAYOR ATTEST:APPROVED AS TO FORM: Ociu or3 Qxn C Shawn Campbell, MMC, City Clerk Douglas Ruth, Assistant City Attorney Resolution No. 5764 March 28, 2024 Page 3 of 3 Rev.2019 i SETTLMENT AGREEMENT REGARDING SEIZED PROPERTY This Agreement is entered into as of the .2.2 day of Sa7tuar~y • , 2024, by and between the City of Auburn Police Department ("City") and Huiping Li o, Wai Pheng Chan, Yizheng Chen Xuchu Huang ("Claimants"). RECITALS Huiping Liao and Wai Pheng Chan own real property located at 3922 284th PI SE in Auburn, Washington (King County parcel number 3874010450). Huiping Liao and Yizheng Chen own real property located at 12330 S 204th Street in Kent, Washington King County parcel number 937840-0040). On or about May 6, 2020, the Auburn Police Department (APD) executed search warrants at the above-referenced real properties under APD case number 19-11955 after an investigation gave them probable cause to believe that the properties were being used to illegally grow marijuana. Following execution of the warrant, the Auburn Police seized the following personal property: 59,462.35 in U.S. currency b 2014 Lexus IS (VIN JTHCEI D21 E5002526) • 2019 Subaru Wrx (VIN JF1VAIA6XK9822756) 2006 Honda Odyssey (VIN 5FNRL387X6B037665) 2015 Mercedes C30 (VIN 55SWF4KBOFU060335) 2013 Mazda 3 (VIN JM1BL1L85D1.704718) Various indoor growing equipment The Claimants contested the seizure of the property and there are currently pending 15 Auburn administrative actions regarding title to the personal properties. The currency was seized as there was probable cause to believe that the property was furnished or intended to be furnished by any person in exchange for a controlled substance; and/or acquired in whole or in part with proceeds traceable'to an exchange or series of exchanges; and/or was used or intended to be used to facilitate violations of Chapter 69.50, 69.51, or 69.52 RCW. 44 The vehicles were seized as there was probable cause to believe that they were used, or intended for use, in a manner that facilitated the sale,•delivery and/or receipt of a controlled substance. 4+ On February 24, 2021 and March 9, 2021 the Auburn Police Department seized the following parcels of real property ("Real Property") pursuant to 'ROW 69.50.505(1)(h) as there was evidence to believe that the real properties were used with the 21-2-02404-8 Settlement Agreement December 28, 2023 Page 1 of 11 knowledge of the owner for the manufacturing, compounding, processing, delivery, importing, or exporting of any controlled substance, or were acquired in whole or in part with proceeds traceable to an exchange or series of exchanges in violation of Chapter 69.50 RCW. 3922 284th PI SE in Auburn, parcel no. 3874010450 12330 S 204th Street in Kent, parcel no. 937840-0040. On February 5 & 2, 2021, the City filed two civil actions in the King County Superior Court to seize the Real Property pursuant to RCW 69.50.505. Following consolidation of the two actions, one civil action is presently pending in the King County Superior Court, cause number 21-2-02404-8. The parties have reached,an.:agreement.aa to.,tf e:.disposition of-the seized property in' .. consideration'of the uncertainty of litigation and'the time and expense associated with proceeding to a trial. AGREEMENT For good and valuable consideration, the receipt and sufficiency of which is hereby I mutually acknowledged, the City and Claimants agree as follows: 1. Good Faith Seizure. There was probable cause sufficient for the seizure of the above-listed real and personal property. Seizure of the property was lawful and notice of the seizures followed due process. It is undisputed that the Auburn Police Department acted in good faith in pursuing the seizure and intended forfeiture of the real and personal property. 2. Property Awarded to City. The Claimants agree to'forfeit to the City their right, title, and interest to the following property: 59,462.35 in U.S. currency (see Exhibit A for individual amounts); 2014 Lexus IS (VIN JTHCEI D21 E5002526) 2019-Subaru:Wrx{UINuJff .VAIASXK9822756) 2006 Honda'Odyssey (VIN 5FNRL387X6B037665) 2015 Mercedes C30 (VIN 55SWF4KB0FU060335) 2013 Mazda3 (VIN JM1 BL1 L85D1704718) Various indoor growing equipment The Claimants dismiss all administrative actions contesting the seizure of the above listed personal property, forfeit the personal property to the City, and release and forever discharge the City from every claim, demand, and cause of action whatsoever, of any kind and nature, whether presently known or unknown, suspected or unsuspected, arising or alleged to have arisen or which shall arise hereafter as a result of the City's seizure of their property. 21-2-02404-8 Settlement Agreement December 28,2023 Page 2 of 11 In the event it is necessary for the City to convey any of the personal property, Claimants agree to provide and execute any document reasonably necessary to facilitate a transfer. 3. Property Awarded to the Claimants & Dismissal of all Superior Court Action. Conditioned upon Claimants' compliance with the terms of this Agreement, the City agrees to relinquish its claims under RCW 69.50.505 to the Real Property, Within five (5) business days following the later of Claimants' compliance with section 5 below and the payment by Claimants of the Settlement Funds according to section 4 below, the City will file a Motion and Order of Dismissal with prejudice and without costs in King County Superior Court cause number 21-2-02404-8 and 21-2-03016-1. The City shall also file a Release of Lis Pendens with the King County Superior Court and the King County Recorder's Office for each parcel of the Real Property, The. City and the Claimants.shall _pay: their- own.•attorney's fees,- costs, and expenses incurred in connection with the superior court and administrative actions. The City will provide to Claimants copies of the executed motions. 4. Payment of Settlement Funds.. In partial consideration for the covenants and promises contained herein, Claimants agree to pay the City seventy-one -thousand, five hundred dollars ($71,500.00) ("Settlement Funds Amount") according to the provisions of the two Promissory Notes attached as Exhibit B and incorporated herein. This amount - shall serve as the combined downpayment to both Notes as well as partial consideration for the covenants and promises contained herein. The payment shall be made to City of Auburn in good funds by wire transfer, cash, or cashier's check payable to City of Auburn and delivered to the City Attorney within seven (7) business days of the execution of this Agreement by the Auburn City Council. 5. Security & Default, In partial consideration for the covenants and promises contained herein and no later than. seven (7) business days after execution of this Agreement by the Auburn City Council, Claimants agree to provide to•the Auburn City • Attorney the ink originals of the following six instruments executed by Huiping Liao, Yizheng Chen, Wai Pheng Chan, Huipeng Liao and Allen and Rachel Chan, as indicated on the instruments, and appropriately notarized: A. Promissory Note, attached as Exhibit B and incorporated herein, obligating the Claimants to pay to the City of Auburn sum one-hundred, fifty-eight thousand, four- hundred, and ninety-two dollars ($158,492.00) with interest, A Promissory Note, attached as Exhibit B and incorporated herein, obligating the Claimants to pay to the City of Auburn one hundred, ninety-nine thousand dollars 199;000.00) with interest. To secure the Promissory Note for$158,492.00, a•Deed of Trust, attached as Exhibit C and incorporated herein that provides the City a security interest in 3922 284th PI SE in Auburn, parcel no. 3874010450. To secure the Promissory Note for$199,200.00, a Deed of Trust, attached as Exhibit C and incorporated herein that provides the City a security interest in 12330 S 204th Street in Kent, parcel no. 937840-0040. 21-2-02404-8 Settlement Agreement December 28, 2023 Page 3of11 A Confession of Judgment In the amount of$126,792.00 plus interest and penalties, in the form attached as Exhibit D. A Confession of Judgment in the amount of$159,200.00 plus interest and penalties, in the form attached as Exhibit D. 6. Enforcement. If the Claimants are in default of either Promissory Note, the Claimants shall be in breach of this Agreement. Without waiving any other rights the City may have, failure by the Claimants to cure the Default according to the provisions of the Promissory Note shall grant the City the immediate right to file the corresponding Confession of Judgment upon affidavit or affirmation of noncompliance in a court .of competent jurisdiction in the amount of the outstanding balance plus accrued interest and penalties. Alternatively, and without waiving. any other=•rights.the City may have, failure by.the • Claimants to pure a default shall result in the immediate right of the City to enforce the corresponding deed of trust according to the provisions of that instrument. These remedies shall not be the exclusive remedies available to the City, and it may, at its discretion, pursue any of these remedies or other legal remedies at its disposal. 7. . Release of Liability. For and in consideration of the execution of this Agreement and the covenants and promises contained herein, the City hereby releases and forever discharges, the Claimants and each of them, from every claim, demand, and cause of action whatsoever, of every kind and nature,, whether presently known or unknown, suspected or unsuspected, arising or alleged to have arisen or which shall arise hereafter as a result of or in connection with the facts described by the Warrants of Arrest In Rem filed under both cause number 21-2-03016-1 and 21-2-024048 and all claims for relief in those actions. 8. Waiver of Future Defenses. In consideration of the execution of this Agreement and the covenants and promises contained herein Claimants agree that if either the real property at 3922 284th Place SE Auburn or at 12330 South 204th Street Kent is subject to a criminal investigation of manufacturing marijuana by Claimants, and is seized again by a law enforcement agency, the Claimants will waive any right to claim innocent ownership of that property under RCW 69.50,505 in any action to forfeit the property(ies) to the seizing agency. 9. Warranties. Each of the Parties represents and warrants that it has full power and authority to enter into, bind himself or herself to, and perform this Agreement. Huiping Liao and Yizheng Chen specifically warrant that they are the owners of 12330 South 204th Street, Kent. Wai Pheng Chan and Huiping Liao warrant that they are owners of 3922 284th PI SE. These parties warrant that they have had an opportunity to review this Agreement with Karl Groeschel, their counsel. 10. Indemnification. The Claimants shall indemnify, defend, and hold harmless the City, its agents, and employees from and against any and all liability arising from its forfeiture actions regarding all personal and real property. In the event that the City shall 21.2-02404-8 Settlement Agreement December 28, 2023 Page 4 of 11 elect to defend itself against any claim or suit arising from this agreement, the Claimant shall, in addition to indemnifying and holding the City harmless from any liability, indemnify the City for any and all expenses incurred by the City in defending such claim or suit, including reasonable attorneys' fees. 11. Reliance Upon Own Judgment and Counsel, The City and Claimants have read this Agreement and its exhibits and have knowingly, intelligently, and voluntarily entered into said Agreement and exhibits with full knowledge of the consequences of such documents. The City and the Claimants agree that each of them was represented by counsel, or had the opportunity to independently consult with counsel of their choosing, As such, this Agreement shall not be construed against either party as the drafter. 12, Integration. The terms and conditions of this Settlement Agreement, including the exhibits, •shall.constitute the.entire.:agreement4n compromise and :,tettlernent 'of the real property forfeiture actions and administrative personal property cloinis, Either party may request changes to the Agreement. Proposed changes that are mutually agreed upon shall be incorporated by written amendments to this Agreement. 13. Binding on Successors and Assigns, All the terms ;Incl conditions of this Settlement Agreement and its exhibits shall be binding upon and inure to the benefit of the Claimants and the City and their respective heirs, successors, and a ,signs. 14, Counterparts. This Settlement Agreement may be c:xocuted by multiple counterparts, each of which shall be deemed an original, binding on the parties to the Agreement, and all of which shall constitute one final agreement. 15. Attorneys' Fees. All costs and attorneys' fees incurred by t!-,o Parties to date shall be borne by the Party incurring them. In the event of a .breach or a default under this Settlement Agreement, the breaching or defaulting party agrees to tray all attorneys' fees and costs incurred by the prevailing party in enforcing.the agreemell; or collecting amounts owed. SIGNATURE DATE City Of Auburn lib. . 2024 ancy B ( s, Mayor Q4L-65 q i/ 2 ...._____, 2024 D glas Ruth, WSBA 25498 Attorney for City of Auburn 21-2-02404-8 Settlement Agreement December 28, 2023 Page 5 of 11 I Claimants 2,1, 2024 Huipeng Liao d Wal Pheng Chan • 2—., 2024 Ytzliem-okeo Yizheng Chen 2.2_, 2024 Hui 'ng Liao 22_, 2024 tA.C11 1iUai1r . cf-ea'y )7 , 2024 Xuchu Huang s/ Karl Groeschel 12146:19L.,2024 Karl Groeschel, WSBA 56859 Attorneys for Claimant 21-2.02404.8 Settlement Agreement December 28, 2023 Page 6of11 Exhibit A Huang, Xuchu JSC19 $1,920,00 1,920.00 Chen, Yizheng AWL02 $6,892,29 AWL16 $9,795.60 JAH22 •$260.00 JAH23 $1,347.00 JAH24 $1,000.00 JAH11 $4,292.00 i JAH13 $21,375.00 JAH14 $1,000,00 JAH14 $1,000.00 JAH1.4 $1,000.00 JAH14 $1,000.00 JAH14 $1,000,00 JAH14 $1,000.00 JAH14 $1,000.00 JAH14 $500.00 JAH14 $500.00 JAH14 $500.00 JAH21 $440.00 53,901.89 Liao, Huipeng AWL01 $2,873.46 JI<S23 $767.00 3,640.46 Llao, Huiping AWL01 $2,873.46 AWL02 $6,892.29 AWL16 $9,795.60 JAH11 $4,292.00 JAH13 $21,375.00 JAH14 $1,000.00 21-2-02404-8 Settlement Agreement December 28, 2023 Page 7of11 JAH14 $1,000,00 JAH14 $1,000.00 JAH14 $1,000.00 JAH14 $1,000.00 JAH14 $1,000.00 JAH14 $1,000.00 JAI-114 $500,00 JAH14 $500,00 JAH14 $500.00 JAH21 $400.00 JAH22 $260,00 JAH23 $1,347.00 JAH24 $1,000.00 56,735.35 21-2-02404-8 Settlement Agreement December 28,2023 Page 8 of 11 Exhibit B Promissory Notes) 21-2-02404-8 Settlement Agreement December 28, 2023 Page 9of11 PIt.l N 'TJ AUTHORIZING CONFESSION OF JUDGMENT IF NOT PAID WHEN DUE AMOUNT DUE: $ 158,492.00 January 2,2024 DEBTORS: Huiping Liao Wai Pheng Chan Yizheng Chen I-luipeng Liao Rachel Chan Alan Chan CREDITOR:City of Auburn PROMISE TO PAY For value received,without grace,Debtors promise to pay to the order of the City of Auburn the principal sum one-hundred,fifty-eight thousand,four-hundred;and ninety-two dollars($158,492,00), This Note will be repaid by.an initial down payment of thirty-one thousand,seven-hundred dollars($31,700,00)and then subsequently through consecutive monthly installments, Pursuant to the terms and conditions contained herein,the Debtors promise to pay to the order of Creditor by installment payments the sum of one-hundred,twenty- six thousand,seven-hundred,and ninety-two dollars($126,792.00),with interest at the rate of 8,5%per annum on the unpaid balance of the principal, • PAYMENT Said principal plus interest shall be paid as follows: thirty-one thousand,seven-hundred dollars($31,700,00)by cashier's check,wire transfer,or cash within 7 days of execution of the Settlement Agreement by the City of Auburn,and one-thousand,one-hundred dollars and thirty- three cents($1,100.33),or more, on the q th day of 24 and the same sum,or whatever portion remains outstanding,on the_LC_ th da)'o•eac t at every month thereafter, unless the payment date falls on a Saturday,Sunday,or federal holiday, in which case the payment is due on the working day after the__,(,c 'I'day(collectively the"Due Date"),until the said principal sum,along with any accrued interest and penalties,shall have been fully paid. Said principal shall be paid in lawful money of the United States and in immediately available funds. The attached payment(amortization)schedule reflects the terms of this obligation and Debtors agree to make payments according to the amounts shown on the schedule(unless the Liao/Chan/Chen Promissory Note Page 1 of l 0 payment date falls on a Saturday,Sunday,or City holiday,in which case the payment is due on the next working day). Payments shall be applied to each monthly amount in the order in which it became due, Any remaining amounts shall be applied to reduce the principal balance of the Note. Any prepayment or partial payments shall not extend or postpone the due date or change the amount of the monthly amount owed, INTEREST The amount of all principal and(to the extent permitted by•then applicable law)all interest which is not paid when due(whether on the maturity date set forth above or by acceleration)shall bear interest,froth the time such amount becomes due until payment of this note in full,at an annual rate of eight and a-half percent(8.5%),or in a rate.otherwise established in this Note, Interest shall be computed on the basis of a year of 365 or 366 clays,as applicable, and actual number of days elapsed. Any unpaid interest shall be added to the principal of the Nate and compounded. SECURITY This note la secured by a second lien,deed of trust,recorded on ee o q J,202.3 14L for the property located at 3922 S 284th Place,Auburn;Washington("Sedated Property")under Auditor File No.2024 OU 02-000 King County. It is executed In fulfillment of the Debtor's obligations raider,the Settlement Agreement between Fluiping Liao,Wal Pheng Chan, and.Yizheng Chen and the City of Auburn,dated Mdoeck o ,20221- 1. DEFAULT,ACCELERATION and COLLECTION If the Creditor does not receive payment within 15 calendar days of the Due Date of any month Debtors shall owe a late payment fee equal to ten dollars($10.00)per day on every daily occurrence of apayment being late, The Debtors shall be in default if the Creditor does not. receive payment within 30 calendar days of the Due Date or.if.Debtors otherwise material breaches this instrument or the deed of trust, Upon default,Debtors shall have 14 calendar days to cure the default from the date of either Creditor depositing a"Notice of Default and To Cure" in the US Post mail or completing personal service of the notice. The notice shall contain the information required by RCW 61,24,030, The notice shall be sent first-class certified or registered mall,return receipt requested,to: Hui ing,Liao&Yizheng Chen Wal 'hong Chan&I4'uipeng Liao Rachel&Allen Chan With a copy to; . Liao/Chan/Chen Promissory Note Page 2ofJO mn<wnn<,weadsuxxti 4s 6 t i Karl Groesehel Lee&Lee,PS 3400 188th St,SW Ste 440 Lynnwood WA 98037 If Debtor fails to cure default within the 30-day cure period,then Creditor may,at its option,without further notice,declare all outstanding sums owed on the Note to be immediately due and payable. Additionally,Creditor may,at its option,and without further notice declare that the unpaid principal shall accrue interest at eighteen percent(18%)per annum,which sums . shall be added to the principal of the Note,until the default is cured. Furthermore,Creditor may, at its option,without further notice,and without waiving any other rights,exercise its rights to enforce the deed of trust according to the provisions of that instrument. To further secure the payment of this note,Debtors jointly and severally irrevocably authorize Creditor,upon Debtor's Default,to hmuediately in a court of competent jurisdiction confess a judgment in favor of.the Creditor,upon affidavit or affirmation of default of the note,without process against them,or any one of more ofthem,for such sum as may appear to be unpaid and owing thereon together with interest,costs,and attorneys' fees,and to take and release all errors or irregularities which may Intervene in such proceeding and consent to Immediate execution upon such judgment,with all surplus proceeds being discharged to Debtors. This grant of right to confess judgment against Debtors shall be without the opportunity of notice to the Debtors or prior hearing,and Debtors expressly waivethe benefit of all exemption laws,stay of execution,right of appeal, and other relief from the enforcement of the judgment or related proceedings on a judgment. This grant of right to confess judgment is effective.whether other collateral or security or means of obtaining payment is then available to the Creditor. Exercise of the power to confess judgment granted in this Section shall be at the sole discretion of the Creditor to exercise and shall not be exhausted upon exercising the power,regardless of whether such exercise is ruled invalid,void,or voidable by any court. Failure to exercise any or all of these options at any time shall not constitute a waiver of either upon any subsequent default or breach,or the right to exercise the same for continuance of arty default or breach, ALLOCATION OF PAYMENTS Payments shall be first credited to any late fees clue,then to interest due,and any remainder will be credited to principal. PREPAYMENT Debtors may pre-pay any amount of this Note at any time without penalty; l..iao/Chan/Chen Promissory Note Page 3 of 10 METHOD OF PAYMENT In the absence of acceleration for reason of default,the amount due will be paid monthly. Payments shall be made by personal check,cashier's check,or credit card, Debtors agree to be charged an additional 3%service fee of any installment payment made by credit card, Check payments shall be made out to the"City of Auburn"and sent to, City of Auburn Attn:Finance Dept, 25 West Main St. Auburn,WA 98001 Or delivered to', 1 East Main St.,Auburn Second floor Credit card payments shall be made at the above address or via phone at, 253-931-3038 (during normal business hours) A payment shall be complete and deemed paid upon receipt by the Creditor of the full monthly amount owed,plus any late fees and/or penalties that may be owed,at the above address,or other location designated by Creditor, Payment made by check that is subsequently returned'unpaid due to Insufficient funds or otherwise,shall not be deemed to have been made and shall continue to bear interest until collected, Creditor may accept any payment or partial payment insufficient to bring the Loan current,without waiver of any rights hereunder or prejudice to its rights to refuse such partial payments in the future, JOINT AND SEVERAL. . Debtors' obligations and liability under this Note shall be joint and several. WAIVER The waiver by the Creditor of any-erm,covenant or condition herein contained shall not be deemed to be a waiver of such term,covenant or condition on any subsequent breach of the same or any other term,covenant or condition herein contained, The subsequent acceptance of payments hereunder by the Creditor shall not be deemed to waive any preceding breach by the undersigned of any term,covenant.or condition of the Note other than the failure of the undersigned to make the particular payment so accepted, No waiver,excuse,or remedy shall arise regardless of Creditor's knowledge of any preceding breach at the time of the acceptance of Liao/Clean/Chen Promissory Note Page 4 of 10 such payment or due to Creditor's failure to provide at any time a monthly statement detailing the amount owed. No offset or claim which Debtor may have now or in the future against Creditor shall relieve Debtor from making payments due under the Note. The acceptance of a partial payment by the Creditor shall not be deemed a waiver. ATTORNEY FEES In the event of a breach or a default under this agreement,the breaching or defaulting party agrees to pay the fees-of all attorneys.(including in-house attorneys).and costs incurred by the prevailing party in collecting amounts owed hereunder or enforcing this agreement. CHANGE OF ADDRESS Debtors agree to inform the other party of any change in mailing address from the addresses listed in this agreement. Notice to the above-listed address shall be valid unless updated by the Debtors by sending a notice in writing to the City at the below address, City Attorney 25 West Main St. Auburn WA 98001 RECONVEYANCE FEE Debtors will pay the City two hundred thirty dollars($230)for any request for reconveyance and the processing of the reconveyance. INTERPRETATION. The parties agree that this Note is related to and is being executed along with execution of a Settlement Agreement,dated 20?.;find a Deed of Trust for 3922 284th Place,Aubtirn,Washington, While this Note's terms are cbntractual and not a mere recital,and no verbal statements shall modify or affect them,the terms should be interpreted consistent with the terms and conditions of these other instruments. This Note is part of a settlement of litigation and is not primarily for personal family,or household purposes being rather for business, governmental,commercial,or investment purposes. i SEVERABILITY In the event any one or more of the provisions contained in this Note shall for any reason be held to be invalid,illegal,or unenforceable in any respect,such invalidity,Illegality,Or unenforceability shall not affect any other provision,and this Note shall be construed if such provision had not,been contained herein. ENFORCEMENT Liao/Chan/Chen Promissory Note Page 5 of i 0 1 This Note shall be binding upon and be enforceable by Creditor against the Debtors and the Debtors' successors and assigns. All remedies provided in this Note are distinct and cumulative to any other right or remedy under this Note or afforded by law or equity, and may be exercised concurrently,independently,or successively,all at the sole discretion of the Creditor. VOLUNTARY,INFORMED ACCEPTANCE I acknowledge that I have earthily read this document and know its contents, I have signed below as an act of free will,relying only upon my own judgment,after having an opportunity to consult with an attorney, Accordingly,this agreement shall not be construed against either Party as the drafter, In addition,each party acknowledges that, a, no promise or inducement not listed in this agreement has been made to either party, b. the party did not rely upon statements or presentations made by the other,or any agent of the other,that is not stated in this agreement,and e. this agreement is fair and reasonable;and each party intends to be bound by it. WAIVER OF PRESENTMENTS. Debtors waive presentment for payment,notice of dishonor,protest,and notice of protest, and expressly agrees that this Note,or any payment hereunder,may be extended from time to time without affecting the liability of the Creditor. DEBTORS ACKNOWLEDGE LIABILITY FOR PAYMENT OP ALL AMOUNTS OWING UNDER THIS NOTE AND AGREE THAT CREDITOR DOES NOT HAVE TO RESORT TO ANY COLLATERAL BEFORE DEMANDING FULL PAYMENT FROM DEBTORS. ORAL AGREEMENTS •OR ORAL COMMITMENTS TO LEND MONEY, EXTEND CREDIT, OR FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. EXECUTED the date written above. DEBTORS CREDITOR Iluipir g Lino ancy Ti• !;sit;. Mayor City of Auburn Wal?hongCChan c Ci ,A I.,iao/Chan/Chen Promissory Note Page 6 of 10 ichl"---- Yizheng Chen C N.., Huipen8Liao Allan Chan Rachel Chan Acknowledgement of City STATE OF WASHINGTON ss, COUNTY OF KING 2 On this -- day of ivrk I 20 L, 41,fore me,a Notary Public in and for the State of Washington,personally appeared Rob Roscoe,personally known to me to be the person who executed this instrument,on oath stated that he was authorized to execute the instrument, and acknowledged it as the Promissory Note of CITY OF AUBURN,to be the free and voluntary act and deedof said municipal corporation for the uses and purposes mentioned in the instrument, pre,vA, 0 Ili '1 I otai ulbliC 4NOTAI PUBLIC in and•the State of Washington, State of' ashington residing at HANNAH SCHOLL ly appointment expires 0'lot-202(.0 LICENSE#202199 print Name gG; !JONI coMYCOMMISSIONEXPIRES SEPTEMBER 19,2026 4Acknowledgement of Huiping Liao STATE OF WASHINGTON ) ss, County of KING Liao/Chan/Chen 1 Promissory Note Page 7 of 10 t:a'F ,., ...fig•. ....;Y s3ae'.Jhi sh N2liie m,, fu'F,. ,:V ...,.. E01Yt4.RL'KttYuLSY'4rL'). °`•T. I certify that I know or have satisfactory evidence that I•IUIPING MAO is the person who appeared before me,and said person acknowledged that he signed this instrument,on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of.such party for the uses and purposes mentioned In this instrument. Dated J/4/71-`• NOTARY PUB IC in,nd for the State of Washington rzU'L'S aq sa idx3 wtua w I residing at isV/a'4" 05Z2Q0tr u uoissiu,woO ( My appointment expires uol5uitisvM)o awls Print Name oii(ind AleloN 1 JNO)I UNV111133 r:-.r,...,,..:,,... ., ,.t FERRAND KONG Ae anoivledgement of Yizheng Chen Notary Public State of Washington Commission N 21002250 My Comm.Expires Dec 5,2024 STATE OF WASHINGTON ) ss. County of KING I certify that I know or have satisfactory evidence that YIZIIENG CHEN is the person who appeared before me,and said person acknowledged that he signed this.instrument,on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of such party for the uses and purposes mentioned in this instrument. Dated /4/ '''. s ..r>. :_,.. •..-.,N. .:t...NOTARY PUBLIC in nd for 'he State of Washington FERRAND KONG residing at r r 7f ii4 Notary Public My appointment expiresStateofWashtnpten Commission 1/2100i250 Print Name My Comm.Expires Dec 5,2024 r Acknowledgement of Wal Meng Chan STATE OF WASHINGTON ) ss. County of KING I certify that I know or have satisfactory evidence that WAI PHENG CH.AN is the person who appeared before me, and said person acknowledged that he signed this instrument,on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of such party for the uses and purposes mentioned in this instrument. Dated, $441141, Liao/Chan/Chen Promissory Note Page 8 of 10 qtr FERRAN°KONG NOTARY PUBLIC in and for the State of Washington Notary Public State of Washington residing at Commission II 21002250 i My appointment expires My Conn.Expires Dec 5,2024 ! Print Name Acknowledgement of I Iuipeng Liao STATE OF WASHINGTON ) ss, County of KING I'certify that I know or have satisfactory evidence that I•I:UIPENG LIAO is the person who appeared before me,and said person acknowledged that.he signed this instrument,on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of such party for the uses and purposes mentioned in this instrument, Dated '1149/7 NOTARY tonPUBLICinandfheStateofWashingtong FERRAND KONG residing at 1s'5 +,//,JA/4- 4Notary Public My appointment expires tix,a , State of Washington Jy Commission II 21002250 I Print Name K d My Comm,Expires Doc 5,2024 1 Acknowledgement of Allan Chan STATE OF WASHINGTON) ss, County of KING I certify that I know or have satisfactory evidence that ALLAN CLAN is the person who appeared before me,and said person.acknowledged that he signed this instrument,on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of such party for the uses and purposes mentioned in this instrument, Dated NOTARY PUBLIC in and for the State of New York residing at My appointment expires Print Name I,iao/Chan/Chen Promissory Note Page 9 of 10 I Acknowledgement of Rachel Chan STATE OF\WASHINGTON ) ss, County of KING I certify that I know or have satisfactory evidence that RACHEL CHAN Is the person who appeared before me, and said person acknowledged that:he signed this instrument,on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of such party for the uses and purposes mentioned in this instrument, Dated NOTARY PUBLIC in and for the New York residing at My appointment expires Print Name l,iao/Chan/Chun Promissory Note Page 10 of 10 Yizheu 01' 11 liui ent Liao 41latt-lra Awl t,Low RaeheFeha. othA tle o I+iv Acknowledgement of City STATE OF WASHINGTON . ) COUNTY OF KING On thin 1, day,ofY7 1 .•• ,2 4,before me,a Notary Public in and for the State of Washington,personally ppeared Rob Roscoe,personally known to me to be the person who executed this instrument,on oath.stated that he was authorized to execute the instrument, and acknowledged it as the Promissory Note of CITY OF AUBURN,to be the free and voluntary act and deed of said municipal corporation for the uses and purposes mentioned in the instrument, L-` j Dated: ' Q ' i' TAII PUBLIC in and for the State of Washington, Notary Public re` ding at (lA\jtAvr'! State of Washington M, appointment expires Dol--1I Cl—2 HANNAH SCHOLL P t Name 6kax\y\OIn TO/I,D111LICENSE#202199 COMMISSIONMY '` j. EXPIRES I A,r.e[1i;•A[iii [ t517V',. itf3.i`i' 1 1' 2,5 f-7t1...t.3 L+.sa.F I STATE OF WASHINGTON) ' ss. County of.KING Liao/Chan/Chen Promissory Note Page 7of10 Scanned with CamScanner Acknowledgement of Allan C11,1111 STATII,or WASHINOTON) . ss. County of IMO I gOLA 1144 certify that I know Or have satisfactory eVidence thatAl71/04.CIIAN is the person Who appeared before me;and said person acknowledged that he signal this Instrument,ort oath stated that be WAS authorized to execute the instnitnent and acknowledged it as the fro and voluntary act of such patty for the uses and purposes mention. i$'is instrument. a bated 1.#6/ •rf. 0TARY C n and for the State of New York residing it S 41) My appointment expires 44 •• " >0) . print Name 1, • , • • Ltiyofitu• IQ, 300 ovaork No:01046188342 Qualified in Kings CountyCommissionExpiresJune9,20AcknowledgementofRachelChan SITE OF WAVINGTON ss. County of KING .. par ( Uao. I certify that I know or have satisfactory evidence thataA-C-HEL-C-HAN-is the person who appeared before me,and said person acknowledged that he signed this instrument,on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of such party for the uses and purposes mentioned in this instrument. bated . NOTA BLIC in andd for Ii:New York residing at AN 19.°1 My appointment ex ires r . Print Name 11— %LA' • Notary Riblio,8iate of Now YorkNo,01CH6188342 Qualified In Kings CountyCommissionExpiresJune9,204 Liao/Chan/Chen ' Promissory Note Page 10 of 10 Scanned with CamScanner PROMISSORY NOTE AUTHORIZING CONFESSION OF,IUI)GMENT IF NOT PAID WHEN DUE AMOUNT DUE:$ 1,99,000.00 January 2,2024 DEBTORS: Huiping Liao Wai Pheng Chan Ylzheng Chen Huipeng Liao Rachel Chan Alan Chan CREDITOR:City of Auburn PROMISE TO PAY For value.received,without grace,Debtors promise to pay to the order of the City of Auburn the principal sum one-hundred,ninety-nine thousand dollars($199,000,00). This.Note will be repaid by an initial down payment of thirty-nine thousand,eight-hundred dollars 39,800,00).and then subsequently through consecutive monthly Installments, Pursuant to the terms and conditions contained herein,the Debtors promise to pay to the order of Creditor by installment payments the sum of one-hundred,fifty-nine thousand and two hundred dollars 159,200.00),with interest at the rate of 8,5%per annum.on the unpaid balance of the principal. PAYMENT Said principal plus interest shall be paid as follows: thirty-nine thousand,eight-hundred dollars($39,800.00)by cashier's check,wire transfer,or cash within 7 clays of execution of the Settlement Agreement by the City of Auburn,and one-thousand,three-hundred,and eighty-one dollars and.fifty-seven cents($1,381.57),or more,on the•Q th day of sbsV, 4 and the same sum,or whatever portion remains outstanding,on the,__j,$ th cia n.ai evety month thereafter,unless the payment date falls on a Saturday,Sunday,or federal holiday,in which case the payment is due on the working day after the "'day(collectively the"Due Date"),until the said principal sum,along with any accrued interest and penalties,shall have been fully paid, Said principal shall be paid in lawful money of the United States and in immediately available funds, The attached payment:(amortization)schedule reflects the terms of this obligation and Debtors agree to make payments according to the amounts shown on the 1.Jao/Chan/Chen Promissory Note Page 1 o1.'10 schedule(unless the payment date falls'on a Saturday,Sunday,or City holiday,In which case the payment is due on the next working day). Payments shall be applied to each monthly amount In the order in which it became due, Any remaining amounts shall be applied to reduce the principal balance of the Note, Any prepayment or partial payments shall not extend or postpone the due date or change the amount of the monthly amount owed, INTERI;ST The amount of all principal.and(to the extent permitted by then applicable law)all interest which is not paid when One(whether on the maturity date set forth above or by acceleration)shall bear interest,from the time such amount becomes die until payment of this note in full,at an annual rate Of eight and a-half percent(8,54),or in a rate otherwise established in:this Note, Interest shall be computed on the basis of ayear of 365 or 36.0 days,as applicable, and actual number of days elapsed. Any unpaid interest shall be added to the principal of the Note and compounded, SECURITY A -L ThisThis note is secured by a second lion deed of trust,recorded on Mo_' rzck 9 ,2022'for the property at:12330 SE 204th Street,Kent, Washington("Seetired Property")under Auditor Pile No, 202`-t NO King County; It is executed In fulfillment of the Debtor's obligations under t'he Settlement Agreement between.Huiping Liao,Wai,Pheng Chan, and Yizheng Chen and the City of Auburn,dated•Mdre.k - o Q ,202K"N DEFAULT,ACCELERATION and COLLECTION If the Creditor does not receive payinentwithin 15 calendar days of the Due Date of any month Debtor shall owe.a late payment fee equal to ten dollars{$10,00).per day on every daily occurrence of a payment being late, The Debtors shall be in default if the Creditor does not reeeive payment within 30 calendar,days of the Due Date or if Debtors otherwise materially breach this lnstrument.or the deed of trust, Upon default,Debtors shall have 14 calendar days to cure the default from the date of either.Creditor depositing.a"Notice of Default and To Cure"in the US Post mail or completing personal.service of the notice. The notice shall contain the information.required by RCW.61,24.030, The notice shall be.sent first-class certified or registered mail,return receipt requested,to: Nuiping Liao&Yizheng Chen W, I Pheng Chan&Huipeng Liao Rachel&Allen Chan With a copy to: Liao/Chan/Chen Promissory Note Pagc 2 of 10 Karl Groesehel Lee&Lee,Y? 3400 188th St, SW Ste 440 Lynnwood WA 98037 if Debtor fails to cure default within the 30-day cure period,then Creditor may,at its option,without further notice,declare all outstanding sums owed on the Note to be immediately due and payable. Additionally, Creditor may,at its option,and without further notice declare that the unpaid principal shall acerae interest at eighteen percent(18%)per annum,which sums shall be added to the principal of the Note,until the default is cured. Furthermore,Creditor may, at its option,without further notice,and without waiving any other rights,exercise its rights'to enforce the deed of trust according to the provisions•of that instrument. Creditor is entitled to collect all expenses incurred in pursuing the remedies provided herein,including costs of title evidence, To further secure the payment of this note,Debtors jointly and severally irrevocably authorize Creditor,upon Debtor's Default,to immediately in a court of competent jurisdiction confess a judgment in favor of the'Crediton,upon affidavit or affirmation of default of the'note,without process against them,or any one of more of them,for such sum as may appear to be unpaid and owing thereon together with interest,costs,and attorneys' fees,and to take and.release all errors or irregularities which may intervene-in such proceeding and consent to immediate execution upon such judgment,with all surplus proceeds being discharged to Debtors. This.grant of right to confess judgment against Debtors shall be without the opportunity Of notice to the Debtors or prior hearing,and Debtors expressly waive the benefit of all exemption laws,stay of execution,right of appeal, and other relief from the enforcemenit of the judgment or related proceedings on a judgment. This grant.of right to confess judgment is effective whether other collateral or security or means of obtaining'•paymont is then available,to the Creditor. Exercise of the power to confess judgment granted in this Section shall be at the sole discretion of the Creditor to exercise and shall not be exhausted upon exercising the power,regardless of whether such exercise is ruled invalid,void,or voidable by any court, Failure to exercise any or all of these options at any time shall not constitute a waiver of either upon any subsequent default or breach,or the right to exercise the same for continuance of any default or breach, ALLOCATION OF PAYMENTSNTS Payments shall be first credited to any late fees chic,then to interest due,and any remainder will be credited to principal. PREPAYMENT Debtors may pre-pay any amount ofthis Note at any time without penalty. Liao/Chan/Chen Promissory Note Page 3 of 10 METHOD OF PAYMENT In the absence of acceleration for reason of default, the amount due will be paid monthly. Payments shall,be made by personal check,cashiers check,or credit card, Debtors agree to be charged an additional 3%service fee of any installment payment made by credit card. Cheek payments shall be made out to the"City ofAuburn"and sent•to, City of Auburn . Attn:Finance Dept, 25 West Main St. Auburn, WA 98001 Or delivered to, 1 East Main St.,Auburn Second floor Credit card payments shall be made at the above address or via phone at, 253-931-3038(during normal business hours) A payment shall be complete and deemed paid upon receipt by the Creditor of the full monthly amount owed,phis any late fees and/or penalties thatmay be owed;at the above address, or other location designated by Creditor, Payment made by check that is subsequently returned unpaid due to.insufficient funds or otherwise,shall not be deemed to have been made and shall continue to bear interest until collected. Creditor may accept any payment or partial payment insufficient to bring theLoan current,without waiver of any rights hereunder or prejudice to its rights to refuse such partial payments In the'future. JOINT AND SEVERAL. Debtors' obligations and liability under this Note shall be joint and several. WAIVER The waiver by the Creditor deny term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition on any subsequent breach of the same or any other term,covenant or condition herein contained, The subsequent acceptance of payments hereunder by the Creditor shall not be deemed to waive any preceding breach by the undersigned of any term,covenant or condition of the Note other than the failure of the undersigned to make the particular payment so accepted, No waiver,excuse,or remedy shall arise regardless of Creditor's knowledge of any preceding breach at the time of the acceptance of Liao/Chan/Chen Promissory Note Page 4of10 such payment or due to Creditor's failure to provide at any time a monthly statement detailing the amount owed, No offset or claim which Debtor may have now or in the future against Creditor shall relieve Debtor from making payments due under the Note. The acceptance of a partial payment by the Creditor shall not be deemed a waiver. ATTORNEY FEES In the event of a breach or a default under this agreement,the breaching or defaulting party agrees to pay the fees of all attorneys(including In-house attorneys)and costs incurred by the prevailing party in collecting amounts owed hereunder or enforcing this agreement. CHANGE OF ADDRESS Debtors agree to inform the other party of any change in mailing address from the addresses,listed in this agreement, Notice to the above-listed address shall be valid,unless updated by the Debtors by sending a noticein writing to the City at the below address. City Attorney 25 WestMain.$t. Auburn WA 98001 RECONVEYANCE FEE Debtors will pay the City two hundred thirty dollars($230)for any request for reconveyance and the processing of the reconveyance. INTERPRETATION. The parties agree that this Note is related to and is being executed along with execution of a Settlement Agreement,dated 'Qin' `: 202 and a Deed of Trust for 3922 284`x` Place,Auburn,Washington. While this Note's terms are c Actual and not a mere recital,and no verbal statements shall modify or affect them,the terms should be interpreted consistent with the terms and conditions of these other instruments. This Note is part of a settlement of litigation and is not primarily for personal family,or household purposes being rather for business, governmental,coimnercial,or investment purposes, SEVERABILITY In the event any one or mote of the provisions contained in this Note shall for any reason be held to be invalid,illegal,or unenforceable in any respect,such invalidity,illegality,or unenforceability shall not affect any other provision,and this Note shall be construed if such provision had not been contained hereht, ENFORCEMENT Liao/Chan/Chen Promissory Note Page 5 of 10 This Note shall be binding upon and be enforceable by Creditor against the.Debtors and the Debtors'successors and assigns, All remedies provided in this Note are distinct and. cumulative to any other right or remedy under this Note or afforded by law or equity,and may be exercised concurrently,independently,or successively,all at the sole discretion of the Creditor. VOLUNTARY,INFORMED ACCEPTANCE I acknowledge that I have carefully read this document and know Its contents, I have signed below as an act of free will,relying only upon my own judgment,after having an opportunity to consult with an attorney. Accordingly,this agreement shall not be construed against either Party as the drafter, In addition,each party acknowledges that. a. no promise or inducement not listed in this agreement has been made to either party, b, the party did not rely upon statements or presentations made by the other,or any agent of the other,that is not stated in this agreement,and o, this agreement is fair and reasonable,and each party intends to be bound by it, WAIVER OF PRESENTMENTS. Debtors waive presentment for payment,notice of dishonor,protest,and notice of protest, and expressly agrees that this Note,or any payment hereunder,may be extended from time to time without affecting the liability of the Creditor. DEBTORS ACKNOWLEDGE LIABILITY FOR PAYMENT. OF ALL AMOUNTS OWING UNDER THIS NOTE AND AGREE THAT CREDITOR DOES NOT HAVE TO RESORT TO ANY COLLATERAL BEFORE DEMANDING FULL PAYMENT FROM DEBTORS. ORAL AGREEMENTS OR ORAL COMMITMENTS TO LEND MONEY, EXTEND CREDIT, OR FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER'WASHINGTON LAW. EXECUTEDCUTED the date written above, DEBTORS CREDITOR 0011.1. 01111". Huipi . iao 4 ahoy Back nyo , City of Auburn Wai Pheng Chan 4 1 u cc, Gam/ A Liao/Chan/Chen Promissory Note Page 6 of J O 4.50:27:7' • i.zheng Chen L,'c I-Iuipeng Liao Allan Chan Rachel Chan Acknowledgement of City STATE OF WASHINGTON ss. COUNTY OF KING • Z Ai On.this \ day of 20 ,before me,a Notary Public in and for the State of Washington,personally feared Rob Ro coe,personally known to nie'to be the person who executed this instrument,on oath stated that he was authorized to execute the instrument, and acknowledged it as the Promissory Note of CITY OF AUBURN,to:be the free and voluntary act and deed of said-municipal or oration for the uses and purposes mentioned in the instrument, 3''1 • iI ,i t I`i No Public NO '1'le' PUBLIC in anI"or the State of Washington, State of Washington I residing at PtAh rYfl1 IMP, HANNAH SCHOLL IMy appointmen•expires i — / —ZO i LICENSE#202199 i Print Name t. I A .UM MY COMMISSION EXPIRES SEPTEMBER 19,2026 Acknowledgement o •'u p"lig.iao STATE OF WASHINGTON) ss, County of KING Liao/Chan/Chen Promissory Note Page 7 of 10 I certify that 1 know or have satisfactory evidence that HUIPING LIAO is the person who appeared before me, and said person acknowledged that he signed this instrument,on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of such party for the uses and purposes mentioned in this instrument, Dated 3 /I/ NOTARY PUBLIC i and for re State of Washington FERRAND KONG p residing at 80rl Notary Public 0 My appointment expires j Twp State of Washington Print Name Commission U 21002250 t My Comm.Expires Dec 5,2024 Acknowledgement of Yizheng Chen STATE OF WASHINGTON ) ss, County of KING I certify that I know or have satisfactory evidence that YIZIIENG CHEN is the person who appeared before me,and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of such party for the uses and purposes Mentioned in this instrument. Dated A( '• NOTARY PUBLIc in and for, le State of Washington FERRAND KONG I residing at f •41-41-414-1 /444 6 Notary Public i State or Washington My appointment expires 2-/Gir - z . Commission N 210027.50 Print Name FrareP97,0 My Comm.Expires Dec 5,2024 Acknowledgement of Wal Pheng Chan STATE OF WASHINGTON ) ss, County of KING I certify that I know or have satisfactory evidence that WAI,P.I IENG CIIAN is the person who appeared before me,and said person acknowledged that he signed this Instrument,on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of such party for the uses and purposes mentioned In this instrument, Hated Liao/Chan/Chen Promissory Note Page 8 of l 0 i FERRAND KONG NOTARY PUBLIC in and for the State of Washington 4 • Notary Public residing at. G. AAStateofWashington Commission 11 21002250 My appointment expires_ fsif.p f „7 6 My Comm.Expires Dec 5,2024 PrIM Name Pdf '—* -• Acknowledgement of Huipeng Liao STATE OF WASHINGTON) ss. County of KING I certify that I know or have satisfactory evidence that HUIPENG LIAO is the person who appeared before me,and said person acknowledged that he signed this instrument,on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of such party for the uses and purposes mentioned in this instrument. Dated '•//` '. NOTARY PUBLIC i and f ( the State of Washington FERRAND KONG residingat Notary Public S S' `, k. /4aA_' State of Washington My appointment expires /.2.45 Ti CommExpires1 21002250 Print Name E My Comm..Expires Dec 5,2024 p-- -- amemptrwrictpvegerirriergra Acknowledgement of Allan Chan STATE OF WASHINGTON ) ss. County of KING ii I certify that I know or have satisfactory evidence that ALLAN CHAN is the person who t appeared before me,and said person acknowledged that he signed this instrument,on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of such party for the uses and purposes mentioned in this instrument. Dated NOTARY PUBLIC In and for the State of New York residing at My appointment expires Print Name Liao/Chan/Chen Prom i ssory Note Page 9of1O Acknowledgement of Rachel Chan STATE OF WASHINGTON ) ss, County of ICING I certify that I know or have satisfactory evidence that RACHEL CHAN is the person who appeared before me,and said person acknowledged that he signed this instrument,on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of such party for the uses and purposes mentioned in tills instrument, Dated NOTARY PUBLIC in and for the New York residing at My appointment expires Print Name Liao/Chan/Chen Promissory Note Page 10 of 10 zhCng doh lzuipetitg Liao flarait- Alavk doh A aeh yaw koLo CINV\ Acknowledgement of City STATE OF WASHINGTON.: ... ,) .r,_ COUNTY OF KING ss.: . On this day of 204,rare me,a Notary Public in and for the State of Washington,personally appeared Rob Roscde,personally known'to me to be the person who executed this instrument,on oath stated that he was authorized to execute the instrument, and acknowledged it as the Promissory Note Of CITY OF AUBURN,to be the free and voluntary act and deed of said municipal corporation for the uses and purposes mentioned in the instrument. Dated: .• _ State of w6ington NOTA PUBLIC in and for the State of Washington, HANNAH.SCHOLL, . ` residing at nnlA V,111 WIA' LICENSE#202199 .. My appointment expires MY COMMISSION EXPIRES - Print Name 4Wf1k,Y1V1 ki DI SEPTEMBER 19,2026 Acktiowledgenient of Huiphig Liao" STA-TB OF WASHINGTON) ss. County.of.KING Liao/Chan/Chen Promissory Note Page 7 of 10 Scanned with CamScanner Acknowledgement of Allan Chan STATI3 OC WASIItNaTON) as. County of KING I midi that I know or have satisfactory evidence thatAbIAN-CUU'AN is the pet's&t who , appeared before me,and said person acknowledged that he signed this instrument,.on oath stated that be was authorized to execute the instrument and acknowledged it as the Free and voluntary act of such party for the uses and purposes mentioned in this i; trument, Dated. l 1 Z NOTA P C in and for the St to of NF York residing at g- O' N 4U I„ My appointment ex ires . , • Print Name Notary Public,Stale of Nov,York No.010116188342 Qualified In Kings County Acknowledgement of Rachel Chan Commission Expires Juno 9,20" STATE OF WASHINGTON) ss, County of KING Vnr,L(( L'ao CketA tL I certify that I know or have satisfactory evidence that•Rr*CI#ErCf? I'is the person who . appeared before me,and said person acknowledged that he signed this instrument,on oath stated that he was authorized to execute the instrument and acknowledged it as the free and voluntary act of such party for the uses and purposes mentioned in thi .'nstrument. Dated -31e14 Ne" ARY BLIC in . d for the New York residing at _ 1.' 4)t'3 My appointment e i es M . Print Name A - o ary Public,State of Now York No.01 0116188342 qualified In Kings County . Commission Expires June 9,20.7,T Liao/Chan/Chen Promissory Note Page 10of10 Scanned with CamScanner i Exhibit C Deeds of Trust) 21-2-02404-8 Settlement Agreement December 28, 2023 Page 10 of 11 is Exhibit D Confessions'of Judgment) 1 21-2-02404-8 Settlement Agreement December 28, 2023 Page 11 of 11 2 3 4 KING COUNTY SUPERIOR COURT IN AND FOR THE STATE OF WASHINGTON6 7 s CITY OF AUBURN, a municipal NO, corporation, 9 Plaintiff, CONFESSION OF JUDGMENT vs. 10 11 WAI PHENG CHAN and HUIPENG LIAO, a marital community, and HUIPING LIAO J2 and YIZHENG CHEN, a marital community, 13 • Defendants. 14 15 JUDGMENT SUMMARY 16 17 1. Judgment Creditors: City of Auburn is 2. Judgment Debtors:Huiping Liao, Yizheng Chen, Hulpeng Liao, and Wai Pheng Chan 19 1 Principal Judgment: 126,792,00 20 4. Interest to Date of Judgment: 8.5% per annum 21 5, Post-Judgment Interest: 8.5%per annum 22 6. Attorney for Judgment Creditor: Douglas Ruth 23 7. Attorney for Judgment Debtor: Karl Groeschel 24 25 26 CONFESSION OF JUDGMENT CITY OF AUBURN 27 Page 1 of 6 Legal Department 25 West Main Street Auburn Washington 98001.4998 253)931-3030 FAX(253)931-4007 Pursuant to Chapter 4.60 RCW, Defendants WAI PHENG CHAN, HUIPENG 2 LIAO, YIZHENG CHIN and HUIPING LIAO, hereafter collectively referred to as 3 "Defendants," hereby confess judgment in favor of plaintiff City of Auburn ("City") for the 4 principal sum of One Hundred Twenty-slX Thousand, Seven-Hundred, Ninety-two Dollars and 5 00/100 ($128,792.00), plus Interest at the annual rate of eight and a-half percent (8.5%), and 6 any additional sums owed pursuant to the terms of the Settlement Agreement and the 7 Promissory Note (true and correct copies of which are attached as Exhibit A and 13$ respectively). Defendants are Indebted to the City for these.amounts and agree that in the event they fail to pay the amounts due to the City when due, as required by the Promissory to • Note, the Court Is hereby authorized to enter. this dOnfession of Judgment and order that Judgement Be Entered, without notice, for unpaid amounts upon the City's presentation of 12 this Confession of Judgment to the Court. ExecUtIon'May Issue as permitted by law against 13 the Defendants, Joint and severally, for the entire amount of the debt remaining unpaid, 14 including accrued Interest and penalties, and for costs, Including attorneys' fees, Incurred in 15 entering and executing on this Judgment. 16 Factual Basis for Judomont 17 This confession of Judgment is for money due as shown by the following facts: 18 1. Pursuant to RCW 69.50.505, on March 9, 2021, the City seized the Defendants 19 real property at 3922 S 284th Place, Auburn, Kent, WA, along with various amounts of cash, 20 personal property, and vehldies. The City alleged that the Defendants were knowingly using21 the seized personal property and other real property for the manufacturing, processing, and22 delivery of a controlled substance. The facts of the City' investigation can be found in the23 Auburn Police Department incident report#197-11955, a copy of which was provided to the24 Defendants. 25 26 CONFESSION OF JUDGMENT CITY OF AUBURN 27 Page 2 of 6 Legal Department 25 West Main Street Auburn Washington 98001-4908 253)031-3030 FAX(253)031-4007 2. The City filed an action In the King County Superior Court under cause number 2 21-2-02404-8 for forfeiture of the real property and filed several administrative actions for 3 forfeiture of the seized personal property. 4 3. After negotiations between the City and the Defendants, both parties agreed to 5 settle the forfeiture matter In lieu of proceeding in court. The Parties executed the Settlement G Agreement attached as Exhibit A to resolve the action, The Agreement requires the 7 Defendants to execute a promissory note for payment over time to the City of forty percent 8 (40%) of the equity in the real property as of December 1, 2023, or$158,492,00. Thirty-one 9 thousand, seven-hundred ($31,700) of this amount was immediately paid by Defendants as a 10 down payment. As a condition of settlement, the City required that the Defendants provide 11 security for the Note through a confession of judgment. 12 Defendant Acknowledgements 13 Defendants acknowledge that: 14 a. This Confession of Judgment Is for money justly due to the City on the 15 Promissory Note, attached as Exhibit B, executed by Defendants in the amount of 16 158,492.00 plus interest at the rate of 8.5% per annum and penalty amounts for late 17 payment and default according to the terms of that note. 1s b. This Confession of Judgment Is executed as security for the Promissory Note 19 and as consideration for the City's execution of the Settlement Agreement. 20 c, The specified sum stated above does not exceed their contingent liability 21 created by the Promissory Note and Settlement Agreement. 22 d. They have no claims, defenses, or counterclaims and are not entitled to any 23 credits or offsets against the amount for which judgment is hereby confessed, 24 e, They enter this Confession of Judgment after having consulted with legal 25 counsel of their choosing. 26 CONFESSION OF JUDGMENT CITY OF AUBURN 27 Page 3 of 6 Legal Department 25 West Main Street Auburn Washington 98001.4998 253)0314030 FAX(253)9314007 f. This constitutes authorization for entry of Judgment against them Jointly and 2 severally and such judgment may be enforced against their joint and separate property. 3 Authorization for ntry of Judgment 4 Defendants accept liability for the debt created by the Settlement Agreement and the Promissory Note, they agree that execution of this Confession of Judgment Is In settlement of 6 the City's claims against them, and they consent that judgment may be entered against them 7 for all unpaid amounts of the above specified sum if they default upon the terms of the 8 Promissory Note, 9Verification of Confession of Judgment 10 1t I, YIZHENG CHEN, verify under oath that the above confession of judgment is authorized by me and that the facts set out above are true to the best of my knowledge and 12 belief. 13 Dated this I„day of . ra"rk 2024. 14 zheng Chen 15 16 I, HUIPING LIAO, verify under oath that the above confession of judgment is authorized by 17 me and that the facts set out above are true to the best of my knowledge and belief. 1f1 Dated this .el day of C"t r'G 2024. 19 Hupng 20 21 I,, WAI PHENG CHAN, verify under oath that the above confession of judgment Is authorized 22 by me and that the facts set out above are true to the best of my knowledge and belief, 23 Dated this q day of Me v"e..kK 2024. 24 Wal Phong Chart 25 26 CONFESSION OF JUDGMENT CITY OF AUBURN 27 Page 4 of 6 Legal Department 25 West Main Street Auburn Washington 98001-4998 253)931-3030 FAX(253)931-4007 1 I, HUIPENG LIAO,verify under oath that the above confession of judgment is authorized by me and that the facts set out above are true to the best of my knowledge and belief. 2 Dated this 9 .day of lictre: 2024.s 3 f ( Al.1 4 Hulpeng Liao 5 6 Notary Acknowiodgo ants 7 S STATE OF WASHINGTON ss y COUNTY OF KING to This record was a knowledged before me by Yl Z/-iA.k Chu/ name ii of individual)on this day of )- 1i c- i . , 2024. 1,..00.02.0.46.A.46.40.2.11.11.0 1. 12 FERRAND KONG 0 Notary Public I NOTARY PU LIC I nd for the 13 State of Washington State of Washington, residing at Commission es Dec250 1 4/ My Comm.Expires Dec 5,2024 7 11 Comm. Expires: /2f t/2o . STAT OF WAS IiNGfON ) 15 ss COUNTY OF KING 16 17 This record was acknowledged before me by 1ac/Pe4,4 L//e .name of individual) on this day of ittt?? 4. , 2024. 18 PERRAND KONG 19 a' Notary Public 1 NOTARY PU LIC in nd for the State of Washington State of Washington, residing at Commission I/210027.50 r ,t • VI 4420MyComm.Expires Dec 5,2024 1 Comm. Expires: /j ,sem M 21 STATE OF WASHINGTON ) 22 SS COUNTY OF KING 23 24 This record was a knowledged before me by kit/Pl1$+vIb.. name of Individual) on this dayday of F'i , , 2024. z 25 26 k CONFESSION OF JUDGMENT. CITY OF AUBURN 27 Page 5 of 6 Legal Department 25 West Main Street Auburn Washington 95001-4998 253)031-3030 FAX(253)931-4007 rtRRAND KONG 1 y. Notary Public r e0,7-__1 State of Washington Commission U 21002250 NOTARY PUBLIC in d for the 2 My Comm. Expires Dec 5,2024 State of Washington, residing at 1 .3Comm. Expires: /2/ tr/ 1 . STATE OF WASHINGTON ) 4 ss COUNTY OF KING 5 6 This record was acknowledged before me by )1Gt/P 44 . name of individual) on this , erf't day of ltior4C.I 2024. 7 r-1 8 r ,....,:..,._..,,,.,._= NOTARY P BLIC i and for the i 1'1:RRAND KONG 9 f Notary Public i State of Wac+.shington, residing at State of Washington Q'`rie,eh Commission 11 21002250 ) Comm. Expires: /1-7/4).5,74,7,414 10 a My Comm.Expires Dec 5,2024 11 Assent to Confession of Judgment 12 13 Plaintiff City of Auburn assents to the entry of the above Confession of Judgment and Order that Judgment.be entered as verified by defendants. 1.4 Dated this k day ofY\` 2024. 15 lG tyofA ,..i Q4, . ‘ 17 t CiiY -t" - ' STATE OF WASHINGTON ) 18 ss COUNTY OF KING 1.9 20 This record was acknowledged before me by umCy c, w name of individual) on this 1 day of,- v( \ 2024, 21• 22 Notary Public NO Y PUBLIC and for the State of Washington Stto 6 f Washington, residing at 23 HANNAH SCHOLL T '"' 0W1Witk LICENSE#202199 Comm. Expires: _ t 4-tq-2.W ZQQ 24 MY COMMISSION EXPIRES SEPTEMBER 19,2026 25 26 CONFESSION,O,JUDGMENT • CITY OF AUBURN 27 Page 6 alp; Legal Department 25 West Main Street Auburn Washington 98001.4998 253)931-3030 FAX(253)931-4007 . F1 RECEIVED MAR 21 2024 CITY OF AUSDRN 3 LEGAL DEPARTMENT 5 KING COUNTY SUPERIOR COURT IN AND FOR THE STATE OF WASHINGTON l s' s CITY OF AUBURN,a municipal NO. corporation, 9 Plaintiff, CONFESSION OF JUDGMENT vs. lU WAI PHENG:CHAN and HUIPENG LIAO, a marital community, and HUIPING LIAO 12 and YIZHENG CHEN, a marital community, 13 Defendants. 14 15 JUDGMENT SUMMARY 16 17 1. Judgment Creditors: City of Auburn 18 2. Judgment Debtors:Huiping Liao, Yizheng Chen, Huipeng Liao, and Wai Pheng Chan 19 3. Principal Judgment: 159,200.00 20 4. Interest to Date of Judgment: 8.5% per annum 21 5. Post-Judgment Interest: 8.5% per annum 22 6. Attorney for Judgment Creditor: Douglas Ruth 23 7. Attorney for Judgment Debtor: Karl Groeschel 2.1 25 CONFESSION OF JUDGMENT CITY OF AUBURN 27 Page 1 of 6 Legal Department 25 Wost Main Street Auburn Washington 98001-1998 253)931-3030 FAX(253)931.4007 Pursuant to Chapter 4,80 ROW, Defendants WAI PHENG CHAN, HUIPENG 2 LIAO, HUIPING LIAO and YIZHENG CHEN, hereafter collectively referred to as 3 "Defendants," hereby confess judgment in favor of plaintiff City of Auburn ("City") for the principal sum of One Hundred• Fifty-Nine Thousand, Two-Hundred Dollars and 00/100 159,200.00), plus interest at the annual rate of eight and a-half percent (8.5%), and any 6 additional sums owed pursuant to the terms of the Settlement Agreement and the Promissory Note (true and correct copies of which are attached as Exhibit A and B, respectively). • Defendants are Indebted to the City for these amounts and agree that in the event they fail to 9 pay the amounts due to the City when due; as required by the-Promissory Note, the Court is 10 hereby authorized •to••enter this Confession of Judgment and order that Judgement Be 1i Entered, without notice,for unpaid amounts upon the City's presentation of this Confession of 12 Judgment to the Court. Execution may Issue as permitted by law against the Defendants, 13 joint and severally, for the entire •amount of the debt remaining unpaid, including accrued 1d interest and penalties, and for costs; including attorneys' fees, Incurred in entering and 15 executing on this judgment, • 16 Factual Basis for Judgment . 17 This confession of.judgment Is for money due as shown by the following facts: 18 1. Pursuant to ROW 69.50,505, on March 9, 2021, tide City seized the Defendants 19 real property at 12330 SE 204'" Street, Kent, WA; along with various amounts of cash, 20 personal property, and vehicles, The City alleged that the Defendants were knowingly using 21 the personal,property and other real property for the manufacturing, processing, and delivery 22 of a controlled substance and that the 12330 SE 204th Street property was acquired with 23 proceeds from•that activity. The facts of the City's Investigation can be found in the Auburn 24 Police Department incident report #197-11955, a copy of Which was provided to the 25 Defendants, 26 CONFESSION OF JUDGMENT CITY OF AUBURN 27 Page 2 of 6 Legal Department 25 West Main Street Auburn Washington 96001-4998 253)931-3030 FAX(253)931-4007 2, The City filed an action In the King County Superior Court under cause number 2 21.2-03016-1 for forfeiture of the seized real property and filed several administrative actions 3 for forfeiture of the seized personal property. 4 3. After negotiations between the City and the Defendants, both parties agreed to 5 settle the forfeiture matter in lieu of proceeding in court. The Parties executed the Settlement 6 Agreement attached as Exhibit A to resolve the action. The Agreement requires the 7 Defendants to execute a promissory note for payment over time to the City of forty percent 40%) of the equity in the real property as of December 1, 2023, or$199,000,00. Thirty-nine 9 thousand, eight-hundred ($39,800) of this amount was immediately paid by Defendants as.a 10 down payment. As a condition of settlement,the City required that the Defendants provide 11 security for the Note through a confession of judgment. 12 Defendant Acknowledgements 13 Defendants acknowledge that: 14 a. This Confession of Judgment is for money justly due to the City on the 15 Promissory Note, attached as Exhibit B, executed by Defendants in the amount of lu $ 199,000.00 plus Interest at the rate of 8,5% per annum and penalty amounts for late 17 payment and default according to the terms of that note. 18 b, This Confession of Judgment is executed as security for the Promissory Note 19 and as consideration for the City's execution of the Settlement Agreement, 20 c. The specified sum stated above does not exceed their contingent liability 21 created by the Promissory Note and Settlement Agreement. 22 d. They have no claims, defenses, or counterclaims and are not entitled to any 23 credits or offsets against the amount for which Judgment Is hereby confessed. 24 e. They enter this Confession of Judgment after having consulted with legal 25 counsel of their choosing. 26 CONFESSION OF JUDGMENT CITY OP AUBURN 27 Page 3 of 6 Legal Department 25 West Main Street Auburn Washington 98001.4998 253)931-3030 FAX(253)931-4007 ted. f. This constitutes authorization for entry of judgment against them jointly and 2 severally and such judgment may be enforced against their joint and separate property. 3 Authorization for Entry of Jud iment 4 Defendants accept liability for the debt created by the Settlement Agreement and the 5 Promissory Note, they agree that execution of this Confession of Judgment is in settlement of 6 the City's claims against them, and they consent that judgment may be entered against them 7 for all unpaid amounts of the above specified sum if they default upon the terms of the 8 Promissory Note. 9 10 Verification of Confession of Judgment it I, YIZHENG CHEN, verify under oath that the above confession of judgment is 12 authorized by me and that the facts set out above are true to the best of my knowledge and belief. 13 Dated thiiss q day of t461rr.h 2024. 14 15 Yizheng Chen 16 17 I, HUIPING LIAO, verify under oath that the above confession of judgment is authorized by me and that the facts set out above are true to the best of my knowledge and belief. 18 Dated this ' day of / A" 1Qre k 2024. 19 20 Hole' 21 22 1, WAI PHENG CHAN, verify under oath that the above confession of judgment is authorized by me and that the facts set out above are true to the best of my knowledge and belief. 7.3 Dated t is „day of Kir?:k 2024. 7rt 25 Wal Phong Chan 26 CONFESSION OF JUDGMENT CITY OP AUBURN 27 Page 4 of s Legal Department 25 West Main Street Auburn Washington 98001.4998 253)931-3030 FAX(253)031-4007 I I, HUIPENG LIAO, verify under oath that the above confession of judgment is authorized by me and that the facts set out above are true to the best of my knowledge and belief. z Dated this../..day of Mar, .k 2024. 4 Huipeng Liao s Notary Aoknowledciements G STATE OF WASHINGTON ) 7 as 8 COUNTY OF KING 9 This record was a_clnowledged before me by 7IZH .?4 Cl1 VAi. name of Individual) on this ir day of stmoy , 2024. 10 is e. .is" ., .". AS. ". ..,la. f.` 11 FERRAND KONG NOTARY PU LIC i nd for the Notary Public State of Washington, residing at 12 State of Washington 11 !!,iihh,,, AA My 11 21002250 0'01 A'`! 13 My Comm.Expires Dec 5,2024 ) Comm. Expires: /2-rL.17 14 STATE OF WASHINGTON ) ss Is COUNTY OF KING 16 This record was acknowledged before me by 4 1l7IH L J*d name 17 of Individual) on this "`'day of `7CN 2024, 18 8 FERRAND KANG NOTARY PUBLI in a for the Notary Public State of Washington, residing at19 mmi Aonf/Washington002 j ICommission1121002250I 20 My Comm.Expires Dec 5,2024 Comm, Expires: /7104717-02-1' , 21, STATE OF WASHINGTON ) ss 22 COUNTY OF KING 23 This record was acknowledged before me by j41/)2. (211 feet- N6j G1i ) name 24 of individual) on this ' day of M. , , 2024, Iadwr wi.,a 25 FERRAND KONG i Notary Public 1 26 State of Washington CONFESSION OfJUDGMF if Commission 11 21002250 My Comm,Expiros Doc.3,20241 CITY oto AUBURN 27 Page 5 of 6 Legal Department 25 West Main Street Auburn Washington 98001-4998 253)93113030 FAX(253)931-4007 1. 1 NOTARY P I3LIC and for the 2 State of Washington,residing at Aid 44 3 Comm. Expires: O1.. - 4 STATE OF WASHINGTON ) ss 5 COUNTY OF KING 6 This record wasacknowledged before me by HeitPTA6 UM) ' name 7 of individual) on this day of. /44/A0t.2024. 8 e'l NOTARY BLt and for the 9 risRRnN0 KONG State of Wshirigt n,•residi at Notary e 1.0 State of Washington S Commission/!21002250 Comm. Expires: /21m-724%14, My Comm,Expires Dec 5,2024 ; 11 12 Assent to Confession of Judciment 13 Plaintiff City of Auburn assents to the entry of the above Confession of Judgment and 14 Order that Judgment be entered as verified by defendants. 15 Dated this ` day of P )Yl\C`- 2024. 16 ty of A. 17 i v c G. A-rsnnL'Y 18 STATE OF WASHINGTON ) ss 19 COUNTY OF KING 20 This record was acknowledged before me by CONN bOt 3JLc (name 21 CO/14 of individual) on this l ,day of e11 O n I O.s 22• Notary Public NOTAR PUBLIC in and for the 23 State of Wasbingto®State of Washington, residing atHANNAHSCHOLL1PMIO\ '-Yf (Ar_c 24.LICENSE#202199 t Comm. Expires: Qck-t41-2o7,(pMYCOMMISSIONEXPIRES SEPTEMBER 19.202625 26 CONFESSION OFJUDGMENT CITY OF AUBURN 27 Page 6 of 5 Legal Department 25 West Main Street SAuburnWashington98001.4098 253)031-3030 FAX(253)931-4007 1