2014-00161735-CU-OR

Yosemite Mortgage Fund vs. Jai Shri Ram Hospitality Group

Nature of Proceeding: Motion to Appoint Receiver

Filed By: Martinez, Amy E.

Appearance is required. The Court fully expects to be presented with the declaration
previously requested by the Court, with the required information. Absent this, the
matter will be dropped, without prejudice.

This motion was continued to today’s date at the parties’ request. No further
documents having been received by the Court, the tentative ruling from May 14, 2014
is repeated below for reference.

Plaintiffs’ Application for Appointment of a Receiver is CONTINUED to Monday, May
19, 2014, as the Court has not received moving party’s declaration as ordered by the
Court on May 9, 2014. C.C.P., sec. 564.

Plaintiffs’ Complaint sets forth three causes of action against defendant Jai Shri Ram
st
Hospitality Group of Sacramento, LLC: the 1 for foreclosure of deed of trust [CCP §§
725a, 726]; the 2nd for assignment of rents [California Civil Code §2938]; and the 3rd for
appointment of a receiver [CCP § 564]

Defendant sought financing to purchase and improve the real property known as
Quality Inn & Suites, located at 1413 Howe Avenue, Sacramento, California. On Dec.
16, 2008, Defendant obtained a $3,900,000.00 loan, evidenced by a Promissory Note
in favor of Yosemite Mortgage Fund II, LLC, Joan A. Ferrari, Trustee, Joan A Ferrari
Trust u/a dated 10/15/2007 and James & Sharon Rhodes, Trustees, James L &
Sharon P. Rhodes Living Trust u/a dated 7/20/1996 (the “Note”), and secured by a
“Deed of Trust, Assignment of Rents, Security Agreement, Financing Statement and
Fixture Filing” (the “Deed”) encumbering the real property. The loan was also secured by a Personal Guaranty, dated December 18, 2008, and
executed by Vinod Kumar Sharma and Rajminder Sharma, managers.

On or about December 20, 2013, the Note matured and Defendant refused and
continues to refuse to repay the loan in full. Due to Defendant’s default under the terms
the Note and Deed, Plaintiffs recorded a Notice of Default against the Property on
March 28, 2014. Defendant has advised plaintiffs that it has no means of repaying the
loan.

Defendant is also in default on a second lien and its property taxes. Defendant owns
multiple other hotels in the area, and moving parties are concerned that defendant will
take the personal property to the other hotels.

The Deed specifically includes the Assignment of Rents and allows plaintiffs to seek
appointment of a receiver in the event of default.

The Court finds that plaintiffs will suffer irreparable harm if a receiver is not
immediately appointed to collect rents, etc.

Moving parties have requested the appointment of John Manderfeld of Marin
Management as Receiver. The Court has requested a declaration be submitted as to
his compensation.

While the Court is inclined to grant the motion to appoint a receiver, the moving parties
have failed to state his hourly rate, or to provide sufficient information on the rents to
be collected for the Court to determine the appropriate amount of the required
undertaking.

The minute order is effective immediately. No formal order pursuant to CRC Rule
3.1312 or further notice is required.