DOB: Lexington Capital Corporation d/b/a Lexington Mortgage, Settlement Agreement and Withdrawal of Notice of Automatic Suspension

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IN THE MATTER OF:

LEXINGTON CAPITAL
CORPORATION d/b/a LEXINGTON
MORTGAGE

    ("LEXINGTON CAPITAL")

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SETTLEMENT AGREEMENT

AND

WITHDRAWAL OF NOTICE OF
AUTOMATIC SUSPENSION 

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part I of Chapter 668, Sections 36a-485 to 36a-534a, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Brokers and Originators”;
 
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Lexington Capital to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
 
WHEREAS, on February 29, 2008, acting pursuant to Sections 36a-494(a)(1)(C), 36a-492(b) and 36a-51 of the 2008 Supplement to the General Statutes, the Commissioner issued a Notice of Automatic Suspension, Notice of Intent to Revoke First Mortgage Lender/Broker License and Notice of Right to Hearing (collectively “Notice”) against Lexington Capital, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleges that Lexington Capital, in violation of Section 36a-492(a) of the 2008 Supplement to the General Statutes, failed to maintain a surety bond that runs concurrently with the period of the license granted to Lexington Capital to engage in the business of a first mortgage lender/broker in Connecticut from 3 Imperial Promenade, Suite 100, Santa Ana, California;
 
WHEREAS, on March 3, 2008, Lexington Capital filed with the Commissioner a replacement bond numbered 285-02-9220 issued by Liberty Mutual Insurance Company;
 
WHEREAS, on March 7, 2008, Lexington Capital specifically assured the Commissioner that it has not engaged in the business of a first mortgage lender/broker in Connecticut since the expiration of its surety bond for 3 Imperial Promenade, Suite 100, Santa Ana, California, on February 8, 2008;
 
WHEREAS, Section 4-177(c) of the Connecticut General Statutes and Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by agreed settlement, unless precluded by law;
 
WHEREAS, Lexington Capital agrees to voluntarily enter into this Settlement Agreement and Withdrawal of Notice of Automatic Suspension (“Settlement Agreement and Withdrawal”) solely for the purpose of obviating the need for formal administrative proceedings concerning the allegation contained in the Notice;
 
WHEREAS, Lexington Capital, through its execution of this Settlement Agreement and Withdrawal, voluntarily agrees to waive any rights to a hearing upon the allegation contained in the Notice, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement and Withdrawal;
 
AND WHEREAS, upon the entry of this Settlement Agreement and Withdrawal, this matter will be resolved and the Commissioner will not take any future enforcement action against Lexington Capital upon the allegation contained in the Notice.
 
NOW THEREFORE, the Commissioner and Lexington Capital enter into this Settlement Agreement and Withdrawal as follows:

1. Lexington Capital shall cease and desist from violating Section 36a-492(a) of the 2008 Supplement to the General Statutes and agrees to maintain surety bonds that run concurrently with any license issued to Lexington Capital under Part I(A) of Chapter 668 of the Connecticut General Statutes;
2. Nothing in this Settlement Agreement and Withdrawal shall adversely affect the ability of Lexington Capital to apply for or obtain a license or renewal license under Part I of Chapter 668 of the Connecticut General Statutes in the future;
3. The Notice of Automatic Suspension of the license of Lexington Capital Corporation d/b/a Lexington Mortgage to engage in the business of a first mortgage lender/broker in Connecticut from 3 Imperial Promenade, Suite 100, Santa Ana, California, issued on February 29, 2008, is hereby WITHDRAWN; and
4. Notwithstanding anything to the contrary in this Settlement Agreement and Withdrawal, execution of this Settlement Agreement and Withdrawal is without prejudice to the right of the Commissioner to take enforcement action against Lexington Capital to enforce this Settlement Agreement and Withdrawal if the Commissioner determines that Lexington Capital is not fully complying with any term or condition stated herein or if any representation made by Lexington Capital and reflected herein is subsequently discovered to be untrue.  For purposes of this paragraph, a violation of this Settlement Agreement and Withdrawal shall be deemed to be a violation of an order of the Commissioner.

IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement and Withdrawal to be executed by each of them or their duly authorized representatives on the dates hereinafter subscribed.


Dated at Hartford, Connecticut
this 28th day of March 2008.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, Spiros Cheng, state on behalf of Lexington Capital Corporation d/b/a Lexington Mortgage that I have read the foregoing Settlement Agreement and Withdrawal; that I know and fully understand its contents; that I am authorized to execute this Settlement Agreement and Withdrawal on behalf of Lexington Capital Corporation d/b/a Lexington Mortgage; and that Lexington Capital Corporation d/b/a Lexington Mortgage agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

                                          By:  ________/s/_________
                                                 Name:  Spiros Cheng  
                                                 Title:  Licensing & Compliance
                                                 Lexington Capital Corporation
                                                 d/b/a Lexington Mortgage


State of:  California

County of:  Orange


On this the 26th day of March 2008, before me, Elizabeth P.R. Butteling, a Notary Public, personally appeared Spiros Cheng, who acknowledged himself to be the Authority of Lexington Capital Corporation d/b/a Lexington Mortgage, a corporation, and that he, as such capacity, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Licensing & Compliance.

In witness whereof I hereunto set my hand.

                                           ________/s/_________
                                           Notary Public
                                           Date Commission Expires:  March 24, 2011


Administrative Orders and Settlements