TERMS AND CONDITIONS OF SALE
1. Sale Procedure
A. Conduct of the Auction. The Auction shall be conducted on July 29, 2006 at
11:00 a.m., before the Honorable Arthur J. Gonzalez, United States Bankruptcy
Judge for the Southern District of New York, United States Bankruptcy Court, One
Bowling Green, New York, New York 10004. Any individual or entities who wish to
submit a bid shall enter their appearance on the Bankruptcy Court’s record and
submit to the jurisdiction of the Bankruptcy Court. Any entity wishing to bid
for the Property must designate one individual who is authorized to submit
verbal bids on behalf of the entity. The Bankruptcy Judge will conduct the
Auction in accordance with these procedures and any other terms announced by the
Bankruptcy Judge at the Auction.
B. Bids. All bids must be in the form of cash or other immediately available
funds, must be without contingencies or conditions of any kind, and must be
irrevocable.
C. Bid Acceptance. At the conclusion of bidding, the Trustee shall determine if
any of the bids made in open Court are an acceptable highest and best bid. The
Bid Deposit (as defined in Paragraph 4 below) of the successful bidder shall be
deposited by the Trustee in a segregated account, and will be applied towards
the purchase price. The bid deposit of the second highest and best offer (as
determined solely by the Trustee) shall be held by the Trustee for not more than
fifteen (15) business days after the completion of the Auction. In the event
that the successful bidder defaults, the Trustee shall immediately either (i)
notify the second highest and best bidder that it will be required to close on
the sale of the Property as if initially selected as the successful bidder or
(ii) seek to require the successful bidder to close, and return the Bid Deposit
of the second highest and best bidder. The Bid Deposit of all other unsuccessful
bidders will be returned at the conclusion of the Auction.
D. Order Approving Sale. Counsel for the Trustee shall ask the Bankruptcy Court
to enter a written order in open court approving the sale to the successful
bidder.
2. Minimum Initial Bid
The minimum initial bid for the Property shall be set at the hearing.
3. Property Being Sold
The Trustee is selling his right, title and interest in a real property located
at 1750 Walton Avenue, Bronx, New York 10453. The Trustee makes no
representation or warranty as to the existence, condition or title of such
Property.
4. Deposit
Any person wishing to bid on the Property shall deposit with the Trustee prior
to the commencement of the Auction a deposit in the amount of $65,000, in the
form of cashier’s check or certified check drawn on a bank acceptable to the
Trustee, such cashier’s check or certified bank check made payable to "David
Kittay, Trustee" (the “Bid Deposit”). Only those parties who submit a Bid
Deposit to the Trustee prior to the commencement of the Auction shall be
entitled to bid on the Property at the Auction. The deposit made by the
successful bidder shall be non-refundable except in the event that a closing
does not take place as a consequence of the disapproval of the sale by the
Trustee or the Bankruptcy Court. The Bid Deposit shall be applied to the
purchase price.
5. Closing
The purchase and sale of the Property will close within fourteen days after the
purchaser is given notice of entry of an Order approving the sale of the
Property. The purchaser shall pay half of any and all taxes and recording fees
on notes, mortgages and financing statements including, without limitation,
recording fees for the deed and transfer taxes.
6. Free and Clear
The sale shall be free and clear of all valid liens, claims, encumbrances and
security interests with any such valid liens, claims, encumbrances or security
interests to attach to the net proceeds of the sale.
7. "As Is", No Representations or Warranties
The purchaser takes the Property "as is - where is." The Trustee makes no
representations or warranties whatsoever. The purchaser avers that he/she has
not relied on any statements, representations or information furnished by the
Trustee or any agent, employee or other person.
8. Trustee not liable
All sales shall be subject to such additional or different terms and conditions
as the Trustee or the Court shall require. In no event shall the estate or the
Trustee have any liability beyond return of the deposit. Each bidder and
purchaser acknowledges that the Trustee is offering the Property for sale in his
capacity as bankruptcy Trustee for the estate of Erik Stephan Brous and not in
his individual capacity and, as such, shall have no personal liability
whatsoever to any bidder or purchaser.
9. Financial Statement
Bidders must deliver to the Trustee no later than twenty-four hours prior to the
Auction a current financial statement and/or bank statement supporting the
bidder’s ability to close the sale of the Property.
10. Purchaser Representation
Each prospective bidder, in obtaining a bid paddle, must sign an attestation
clause stating that “I am not a stockholder, agent, employee or insider of an
appraiser, auctioneer, the Trustee, attorney or accountant or any other retained
professional in this matter or a relative of any of the foregoing”.
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All information is from sources deemed
reliable. Bankruptcy Sale is subject
to errors, omissions, prior sale and
withdrawal without notice.
Bankruptcy Auction
________, 2006
Conducted by David R. Kittay,
Bankruptcy Trustee, Sanjai Properties, Inc.
Agreed and accepted by:
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