IN THE CIRCUIT COURT OF THE STATE OF OREGON FOR THE COUNTY OF LANE

Michael and Donna Esauk, husband and wife, pro se ) ) Civil Action No.: 16 11 00139 ) Plaintiff, ) ) vs. INTENT TO ) TAKE ) BENEFICIAL OREGON, INC., dba DEFAULT IN 10 BENEFICIAL MORTGAGE, CORP., a ) DAYS ) foreign company; dba HSBC CONSUMER ) LENDING MORTGAGE SERVICING PRE DISCOVERY ) FAILURE TO DISCLOSE SHAPIRO & SUTHERLAND, LLC, TRUSTEE ) KELLY D. SUTHERLAND OSB#873575 ) And ) ) JOHN AND JANE DOES (Investors) 1-10,000 ) QUIET THE TITLE and XYZ CORPORATIONS 1-10, et al., ) . Defendants. Filed in the Record ) ) )

NOTICE FOR REQUEST OF CONFIRMATION:

INTENT TO TAKE DEFAULT IN 10 DAYS Pre Default Request Relating to Terms and Conditions of Agreement and Adequate Assurance of Due Performance that Finance Company did not Breach Agreement, and Offer Pending Validation to settle this suit with out further damages to all parties. Time is of the essence and full disclosure before court actions commences. Response by February 28, 2011
Re: Account # 17499195, and LOAN AGREEMENT 8/15/2007 Loan Number 66170600-583004 the crossed out number # 583004 and added hand written number # 583080 then the Trust Deed #501706 of the Loan Instrument for the claimed debt is disputed in letter dated December 10, 2010 and the first time we ever saw this copy of the LOAN AGREEMENT which we believe to not be true and a fake. Please provide the true copy both sides and the allonge to 1
INTENT TO TAKE DEFAULT IN 10 DAYS

the Trust Deed and the changing of numbers to quiet the title. Also to determine the obligated you must provide me the details of what the entire Agreement is, and if you performed according to the Agreement. 1. Please explain here: Re: False Foreclosure and Sale of Property without proof as requested November 2nd and 9th 2010 of the nature and intent of the non disclosed parties and accounting required under RESPA TILA and FDCP to verify the foundation of who credit was used and who is the Holder in due Course of the Note, Allonge and the Deed of Trust. 2. Please explain and provide a conclusion Dear Beneficial of Oregon Inc.; HSBC, Shapiro and Sutherland, LLC, officer and/or Agent for alleged Lender, 3. It has come to the attention of the alleged Borrower, after much consultation and research of the United States Code, the corresponding Code of Federal Regulations, the Uniform Commercial Code, and certain Federal Reserve Bank Publications, that there is reason to believe that the alleged Lender is not the Holder in Due Course of the Borrowers alleged loan contract or retail installment agreement and/or may have breached the contract/agreement concerning the above-referenced loan. Since the Borrower agreed to perform according to the contract/agreement, the Borrower is now hereby requesting Adequate Assurance of Due Performance that the alleged Lender has performed according to the Retail Installment Sale Contract and that the original lender used their own money to purchase the Borrowers contract/agreement and did not accept the Borrowers contract/agreement as money or like money to fund a check or similar instrument that the alleged Lender then lent to the Borrower - which would have an economic effect similar to stealing, counterfeiting, and swindling - and that the alleged Lender has followed the Federal Laws 12 USCA Sec. 1831n(a)(2)(A) and/or 12 CFR 741.6(b) regarding Generally Accepted Accounting Principles and Generally Accepted Auditing Standards concerning the alleged loan. Please TAKE NOTICE that this is not a refusal to pay a debt, but we disputing the alleged debt referenced by the above account, and am making this good faith Offer to pay in full, the alleged debt to Triad Financial Corporation, provided you can verify and validate said debt by providing to us Adequate Assurance of Due Performance. Validation requires confirmation of correctness, truth, or authenticity by affidavit, oath, or deposition. This verification of Adequate Assurance of Due Performance should include, but not be limited to, answering the enclosed questions verifying the terms and conditions of the alleged loan, point by point. The living person who signs the affidavit and answers the inquiries must be competent to testify, must have personal knowledge, must make all statements under penalty of perjury under the Laws of the United States, and must make statements that are true, correct, complete, and not misleading. 2
INTENT TO TAKE DEFAULT IN 10 DAYS

This will be used in the Complaint filed January 5, 2011 and take default on you and your principle. 4. The general terms of the contract/agreement must include the following: The alleged Lender must use its own money or credit as adequate consideration to purchase the contract/agreement from the alleged Borrower to repay the loan. The alleged Lender involved in the alleged loan did not accept anything of value from alleged Borrower that would be used to fund a check or similar instrument in approximately the amount of the alleged loan. The alleged Lender must follow the generally accepted accounting principles as required by CPA audit opinions. The intent of the contract/agreement is that the party who funded the loan is to be repaid the money. All material facts are to be disclosed in the written contract/agreement. The alleged Borrower must repay the loan in the same specie of money or credit or thing of value the financial institution involved in the loan used to fund the loan check or similar instrument thus ending all interest and liens. The loan transaction does not create the economics similar to stealing, counterfeiting and swindling. Only one party signed the alleged Note and Deed of Trust and the Lender was not present According to standard bank bookkeeping entries, it would seem the alleged Lender breached all 7 basic elements of the alleged contract/agreement and then concealed material facts of the alleged contract/agreement. Therefore, I am demanding Adequate Assurance of Due Performance that the above 7 elements are part of the alleged loan contract/ credit agreement or we demand that the alleged Lender return a zero loan balance. Through much diligent research and certain information from Federal Reserve Bank publications, the proof that the alleged Lender breached the contract/agreement is that their assets and liabilities increased while loaning the alleged Borrower money; providing prima facia Evidence the alleged Lender recorded a loan from the alleged Borrower to the alleged Lender. Then, returned the money to alleged Borrower, falsely claiming the money was a loan from alleged Lender to alleged Borrower. The alleged Lender did the opposite of what was advertised and agreed to and concealed the fact that alleged Lender accepted money or credit or thing of value from the alleged Borrower which funded a check or similar instrument in the amount of the alleged loan. 3
INTENT TO TAKE DEFAULT IN 10 DAYS

If you claim that there was a valid contract/credit agreement, then I demand that you explain the details of the contract/credit agreement by answering the following inquiries, point by point, by affidavit: 1) Is it true that when the Borrower signed the contract/agreement that the contract or agreement was used as a bank asset to give value to a check or similar instrument or credit to a bank account resulting in a new bank asset and new bank liability? Please respond with a Yes or No, in writing. 2) Is it true that alleged Lender follows Generally Accepted Accounting Principles (GAAP)? Please respond with a Yes or No, in writing. 3) Was full disclosure provided regarding whether the borrower was to provide the funding for the alleged loan per bookkeeping entries? Please respond with a Yes or No, in writing. 4) Did alleged Lender accept something of value from the Borrower that was recorded as an asset on the books of alleged Lender resulting in a new liability on the books of alleged Lender? Please respond with a Yes or No, in writing. 5) The alleged Lender lent its own money to the alleged Borrower? Please respond with a Yes or No, in writing. 6) Is it the intent of the contract or installment agreement that the party who funded the loan (per the bookkeeping entries) is to be repaid the money lent? Please respond with a Yes or No, in writing. 7) According to the bookkeeping entries of the alleged Lender, when the alleged Borrower signed the contract/agreement, the alleged Lender accepted a new asset from the alleged Borrower that funded the loan in the same transaction? Please respond with a Yes or No, in writing. 8) Did the alleged Lender involved in the loan record an asset showing that the alleged Borrower owes money to the alleged Lender involved in the alleged loan? Please respond with a Yes or No, in writing. 9) Did the alleged Lender follow all Federal Reserve Bank policies and procedures in the loan transaction? Please respond with a Yes or No, in writing. 10) Is it true that according to the bookkeeping entries that the alleged Borrower funds the loan to the same alleged Borrower? Please respond with a Yes or No, in writing.

4
INTENT TO TAKE DEFAULT IN 10 DAYS

11) Is it true that according to the bookkeeping entries of the alleged Lender that the alleged Borrower is the lender to the alleged Borrower? Please respond with a Yes or No, in writing. 12) Is it true that according to the bookkeeping entries of the alleged Lender involved in the alleged loan that new money or credit was created when the alleged Borrower signed the contract/agreement? Please respond with a Yes or No, in writing. 13) Is it true that according to the contract or installment agreement that the alleged Lender received permission from the alleged Borrower to deny the alleged Borrower equal protection under the loan contract/agreement? Please respond with a Yes or No, in writing. 14) Is it true that according to the contract/agreement that the alleged Borrower agreed to economics similar to stealing, counterfeiting and swindling against the alleged Borrower? Please respond with a Yes or No, in writing. 15) Is it true that the alleged Lender violated GAAP, generally accepted accounting principles, thus making the agreement null and void? Please respond with a Yes or No, in writing. 16) Is it true that the alleged Lender converted the contract/agreement by using the contract/agreement as value, to give value to a check or similar instrument as proven by the bookkeeping entries thus proving that the alleged Borrower funded the loan and proving that the alleged Lender used false statements that the alleged Lenders money funded the loan? Please respond with a Yes or No, in writing. 17) Is it true that the alleged Lender violated the matching principle of GAAP in that if the alleged Lender accepted an asset from the alleged Borrower, the alleged Lender did not credit a liability account showing that the alleged Lender owed money to the alleged Borrower for the asset received from the alleged Borrower? Please respond with a Yes or No, in writing. If you refuse to answer these inquiries, I can only presume that there is concealment of material facts and that the contract/agreement has been altered and stolen and that I provided the money that the alleged Lender claims was lent to the alleged Borrower. If you refuse to answer these inquiries and provide an affidavit, in order to provide verification and validation of Adequate Assurance of Due Performance regarding the alleged debt in question then please return a zero balance statement and return the original contract/agreement. If you choose to reply via an attorney, who may respond without giving specifics to these questions, said attorney may be added to a future lawsuit. We will then be empowered to call the attorney as a hostile witness and, compel this attorney, under Oath, to explain the Nature and 5
INTENT TO TAKE DEFAULT IN 10 DAYS

Cause of the alleged contract/agreement. Remember, if you allege there is a lawfully binding contract or installment agreement, the attorney will have to answer the above questions in a deposition or in court under oath. If the attorney commits perjury he or she will be disbarred. Please take further NOTICE that your failure to timely respond and provide to us point by point answers to all inquiries contained herein and sign the enclosed affidavit within ten (10) days of receipt of this NOTICE will place you in Fault, and your Fault will be your agreement that you are refusing our good faith Offer to pay off the alleged debt, pursuant to the Uniform Commercial Code at UCC 3-603(b), when an Offer to pay off a debt is refused, the debt is discharged to the extent of the amount offered. The alleged Borrower is hereby requesting that an authorized officer or Agent of the alleged Lender answer all inquiries contained herein and sign an affidavit with these answers within ten (10) days of your receipt of this notice. This is the alleged Borrowers good faith attempt to settle this matter and clear up any confusion about the terms of the contract/agreement prior to an Administrative Hearing on the matter. Failure to respond will be deemed a dishonor of this Notice. This Notice, its affidavit and inquiries, and any Lender's acquiescence thereto, may be used as evidence, according to the Federal Rules of Evidence, to prosecute or enforce any default by you in this matter in further actions, and if necessary, to obtain full disclosure of the alleged Loan agreement and its performance. A nationally known CPA is prepared to offer Expert Witness testimony should court proceedings be necessary. If you choose legal means to attempt to collect this unsubstantiated debt, then the enclosed questions will be used as interrogatories and admissions, and you will be compelled under threat of Contempt of Court to answer them. This Notice will remain as fact of the Elements of the Agreement and the breach of alleged Lender unless alleged Lender disputes this Notice within 10 days or a Motion for Default will be filed for lack of response and fraud on the court. Further action will be taken against all authorized officer or Agent to take the Notice of Sale and process Respectfully submitted, ___________________ Michael and _____________________ Donna Esauk, pro se

1379 N Street Springfield, OR 97477 (541) 747-9645 mdEsauk@mail.com

6
INTENT TO TAKE DEFAULT IN 10 DAYS

CERTIFICATE OF SERVICE
ORIGINAL delivered to the Court this ___ day of _________, 2010. I HEREBY CERTIFY that a true and correct copy of the COMPLAINT have been furnished by certified U.S. Mail this date to:

BENEFICIAL P.O. BOX 5233 CAROL STREAM, IL 60197-5233 HSBC CONSUMER LENDING MORTGAGE SERVICING P.O. BOX 3437 BUFFALO, NY 14240-9 734 SHAPIRO & SUTHERLAND, LLC 5501 N.E. 109TH COURT, SUITE N VANCOUVER, WA 9866 Fax: (360) 260-2285

X____________________________________

X ____________________________________

Michael and Donna Esauk

1379 N Street Springfield, OR 97477 (541) 747-9645

7
INTENT TO TAKE DEFAULT IN 10 DAYS