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1 assess the owner, Leonard Lynch, for the costs of such removal or to place a lien against the <br /> 2 Lynch Property during the time that Mr. Lynch was the owner. <br /> 3 -6. DELTA FUNDING is further informed and believes that commencing <br /> 4 in or about April 1997, SJPHS-EHD took additional action to abate conditions on the Lynch <br /> 5 Property, including demolishing substandard structures and removing solid waste and debris <br /> 6 from the property. <br /> 7 7. From on or about May 1, 1997 until on or about February 18, 1998, <br /> 8 when the Lynch Property reverted to DELTA FUNDING as the result of a foreclosure and <br /> 9 trustee's sale, DELTA FUNDING, in its capacity as a lender, maintained a security interest in <br /> the Lynch Property for the purpose of securing its loan to Leonard Lynch. On or about May <br /> 10 <br /> 1, 1997, unaware that SJPHS-EHD had taken abatement and enforcement action against the <br /> 11 Lynch Property, DELTA FUNDING recorded a first trust deed on the property in the amount <br /> 12 of$30,000. At the time of DELTA FUNDING's loan to Leonard Lynch, the appraised value <br /> 13 of the Lynch Property was approximately $110,000. Mr. Lynch defaulted on the loan, and on <br /> 14 October 14, 1997, DELTA FUNDING recorded a Notice of Default against the Lynch <br /> 15 Property. <br /> 16 8. On February 18, 1998, a foreclosure sale was conducted and the Lynch <br /> 17 Property reverted to DELTA FUNDING. Shortly thereafter, DELTA FUNDING listed the <br /> 18 property for sale. At the time, DELTA FUNDING had no notice of the inspections, <br /> investigations or previous cleanups of the Lynch Property by SJPHS-EHD. <br /> 19 <br /> 9. DELTA FUNDING has never operated a solid waste disposal facility <br /> 20 <br /> on the Lynch Property, or permitted or authorized anyone else to operate such a facility or <br /> 21 otherwise disposed of waste of any kind on the property. <br /> 22 10. On February 27, 1998, the SJPHS-EHD filed a Notice of Abatement <br /> 23 Action against the Lynch Property under California Health & Safety Code §17985. At <br /> 24 DELTA FUNDING's request, and admitting that DELTA FUNDING was a bona fide <br /> 25 purchaser without notice, SJPHS-EHD; on or about May 27, 1998, released the Notice of <br /> 26 Abatement Action that it had recorded against the Lynch Property. On the same day, May 27, <br /> 27 1998, San Joaquin County Code Enforcement began evaluating the Lynch Property for <br /> 28 eligibility for AB 2136 (Solid Waste Disposal and Codisposal Site Cleanup Program) <br /> 3 <br /> COMPLAINT FOR DECLARATORY RELIEF AND DAMAGES <br />