FILED: MONROE COUNTY CLERK 03/12/2024 09:10 AM INDEX NO.

E2024004498
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 03/12/2024

STATE OF NEW YORK SUPREME COURT

COUNTY OF MONROE
________________________________________________
Plaintiff designates Monroe
ESL FEDERAL CREDIT UNION, County as the place of trial

Plaintiff, SUMMONS

v. Index No.

COMMUNITY RESOURCE COLLABORATIVE, INC.,

Defendant.
________________________________________________

TO THE ABOVE-NAMED DEFENDANT:

YOU ARE HEREBY SUMMONED and required to serve upon Plaintiff’s attorney an
Answer to the Complaint in this action within twenty (20) days after the service of this Summons,
exclusive of the day of service, or within thirty (30) days after service is complete if this Summons
is not personally delivered to you within the State of New York. In case of your failure to answer,
judgment will be taken against you by default for the relief demanded in the Complaint.

The basis of venue in this action is the Plaintiff’s principal place of business and the
residence and principal place of business of the Defendant.

Dated: March 8, 2024

HARRIS BEACH PLLC

BY:
David M. Capriotti, Esq.
333 West Washington Street, Suite 200
Syracuse, New York 13202
Telephone: (315) 423-7100
DEFENDANT’S ADDRESS:

Community Resource Collaborative, Inc.

100 College Ave – Suite 130
Rochester, NY 14607

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STATE OF NEW YORK SUPREME COURT

COUNTY OF MONROE
________________________________________________

ESL FEDERAL CREDIT UNION,

VERIFIED COMPLAINT
Plaintiff,
Index No.
v.

COMMUNITY RESOURCE COLLABORATIVE, INC.,

Defendant.
________________________________________________

Plaintiff, ESL Federal Credit Union, by and through its attorneys, Harris Beach PLLC, as

and for its Complaint against Defendant, Community Resource Collaborative, Inc., hereby alleges

as follows:

1. ESL Federal Credit Union (“Plaintiff”) is a federal credit union, authorized to

transact business by the National Credit Union Association and authorized to transact business

within the State of New York with its principal place of business located at 225 Chestnut Street,

Rochester, New York 14604.

2. Upon information and belief, defendant Community Resource Collaborative, Inc.

(“Defendant”) is a corporation, organized and existing under the laws of the State of New York

with its principal place of business located at 100 College Ave, Suite 130, Rochester, NY 14607.

Loan I - $32,200.00 Term Loan

3. On or about April 1, 2023, Defendant executed a Business Loan Agreement with

Plaintiff evidencing a term loan in the principal amount of $32,200.00 and memorializing the terms

of the loan. A copy of the Business Loan Agreement is attached here to as Exhibit “A”.

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4. On or about April 1, 2023, Defendant borrowed $32,200.00 from Plaintiff pursuant

to a promissory note (“Term Note”) evidencing the $32,200.00 indebtedness to Plaintiff. A copy

of the Term Note is attached hereto as Exhibit “B”.

5. By executing the Business Loan Agreement and Term Note, Defendant bound

themselves, their successors, their administrators, their assigns, their officers, and each and every

one of them, jointly and severally, to pay Plaintiff the amount of the Term Note according to the

terms set forth therein.

6. On or about April 1, 2023, as security for the payment of the Term Note, Defendant

executed a Commercial Security Agreement which granted Plaintiff a security interest in certain

collateral, such as an Epson SC-F2100 Direct to Garment Printer White Edition, a Tajima Single

Head Embroidery Machine, accounts and inventory of Defendant, and collateral more particularly

described in a copy of the Commercial Security Agreement Exhibit “C”.

7. Plaintiff released the entire $32,200.00 to Defendant.

8. Under the terms of the Term Note, the loan was to be repaid in 36 monthly

payments of $995.26, with the first payment due on June 1, 2023. See Exhibit “B”.

9. By letter dated February 13, 2024, Plaintiff demanded payment on Loan I from

Defendant. A copy of the Demand Letter is attached as Exhibit “D”.

10. Borrower did not respond to Plaintiff’s demand for payment.

11. Borrower has failed to make a payment to Plaintiff.

12. Borrower been in default since February 23, 2024.

13. There remains an outstanding balance on the loan of $24,883.20, along with interest

at the rate of 6.590%, beginning on February 23, 2024.

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Loan II - $125,000.00 Line of Credit

14. On or about August 25, 2023, Defendant executed a Business Loan Agreement with

Plaintiff evidencing a revolving line of credit in the principal amount of $125,500.00 and

memorializing the terms of the loan. A copy of the Business Loan Agreement is attached hereto

as Exhibit “E”.

15. On or about August 25, 2023, Defendant borrowed $125,500.00 from Plaintiff

pursuant to a promissory note (“Promissory Note”) evidencing the $125,500.00 indebtedness to

Plaintiff. A copy of the Promissory Note is attached hereto as Exhibit “F”.

16. By executing the Business Loan Agreement and Promissory Note, Defendant

bound themselves, their successors, their administrators, their assigns, their officers, and each and

every one of them, jointly and severally, to pay Plaintiff the amount of Promissory Note according

to the terms set forth therein.

17. On or about August 25, 2023, as security for the payment of Promissory Note,

Defendant executed a Commercial Security Agreement which granted Plaintiff a security interest

in certain collateral, such as accounts and inventory of Defendant, and collateral more particularly

described in a copy of the Commercial Security Agreement Exhibit “G”.

18. Plaintiff advanced the entire $125,500.00 to Defendant.

19. Under the terms of the Promissory Note, Defendant was to pay regular monthly

payments of all accrued unpaid interest due as of each payment, beginning September 15, 2023,

with all subsequent interest payments to be due on the same day of each month after that. See

Exhibit “F”.

20. By letter dated February 13, 2024, Plaintiff demanded payment on Loan II from

Defendant. See Exhibit “D”.

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21. Borrower did not respond to Plaintiff’s demand for payment.

22. Borrower has failed to make a payment to Plaintiff.

23. Borrower been in default since February 23, 2024.

24. There remains an outstanding balance on the loan of $124,445.49, along with

interest at the rate of 9.50%, beginning on February 13, 2024.

Loan III - $5,000.00 Business Credit Card

25. On or about February 15, 2023, Plaintiff approved Defendant’s request for a

business credit card (“Business Credit Card”) with the principal amount/maximum limit of

$5,000.00 and a variable rate of interest. A copy of the Business Credit Card Agreement and

Approval Letter are attached as Exhibit “H”.

26. Borrower did charge the maximum amount of $5,000.00 on the Business Credit

Card.

27. By letter dated February 13, 2024, Plaintiff demanded payment on the Business

Credit Card from Defendant. See Exhibit “D”.

28. Borrower did not respond to Plaintiff’s demand for payment.

29. Borrower has failed to make a payment to Plaintiff.

30. Borrower been in default since February 23, 2024.

31. Borrower did not respond to Plaintiff’s demand for payment and has been in default

since February 23, 2024.

32. There remains an outstanding balance on the Business Credit Card of $5,313.51,

along with interest at the rate of 15.24%, beginning on February 13, 2024.

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Loan IV - $5,000.00 Business Overdraft Line of Credit

33. On or about August 22, 2023, Plaintiff approved Defendant’s request for a business

overdraft line of credit (“Business Overdraft Line of Credit”) with the principal amount/maximum

limit of $5,000.00. A copy of the Business Overdraft Line of Credit Agreement and Approval

Letter is attached as Exhibit “I”.

34. Plaintiff did disburse $5,000.00 to Defendant under the Business Overdraft Line

of Credit.

35. By letter dated February 13, 2024, Plaintiff demanded payment on the Business

Overdraft Line of Credit from Defendant. See Exhibit “D”.

36. Borrower did not respond to Plaintiff’s demand for payment.

37. Borrower has failed to make a payment to Plaintiff.

38. Borrower been in default since February 23, 2024.

39. There remains an outstanding balance on the Business Overdraft Line of Credit of

$5,104.28, along with interest at the rate of 17.90%, beginning on February 13, 2024.

Loan V – Overdrawn Checking Account

40. On or about January 25, 2023, Defendant opened a business checking account

(“Business Checking Account”) with Plaintiff. A copy of the Business Checking Account

Agreement evidencing the terms of the Business Checking Account is attached as Exhibit “J.”

41. As of February 2, 2024, Defendant has overdrawn on the Checking Account in the

amount of $29,139.22.

42. By letter dated February 13, 2024, Plaintiff demanded payment on the Checking

Account from Defendant. See Exhibit “D”.

43. Borrower did not respond to Plaintiff’s demand for payment.

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44. Borrower has failed to make a payment to Plaintiff.

45. Borrower been in default since February 23, 2024.

46. On March 4, 2024, Plaintiff applied an offset amount of $158.14.

47. There remains an overdrawn balance on the Checking Account of $29,016.08, as

of March 4, 2024.

AS AND FOR A FIRST CAUSE OF ACTION AGAINST DEFENDANT

(Breach of Contract – Loan I)

48. Plaintiff repeats and realleges the allegations contained in paragraphs 1 through 47

as set forth in detail herein.

49. The Business Loan Agreement, Term Note, and Commercial Security Agreement

(“Loan Documents”) constitute a valid and binding agreement between Plaintiff and Defendant.

50. In failing to make the required monthly payments on the loan, Defendant has

breached the contract with Plaintiff.

51. Plaintiff has fully performed its obligations under the Loan Documents.

52. Plaintiff is entitled to payment of the full remaining balance due under the Loan

Documents from Defendant, along with applicable interest and attorney’s fees and costs.

53. By reason of the foregoing, Plaintiff is entitled to judgment against Defendant in

the amount of $24,883.20, along with interest at the rate of 6.590% on the unpaid principal balance

from February 23, 2024, along with costs, disbursements, and attorney’s fees.

AS AND FOR A SECOND CAUSE OF ACTION AGAINST DEFENDANT

(Breach of Contract – Loan II)

54. Plaintiff repeats and realleges the allegations contained in paragraphs 1 through 53

as set forth in detail herein.

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55. The Business Loan Agreement, Promissory Note, and Commercial Security

Agreement (“Loan Documents”) constitute a valid and binding agreement between Plaintiff and

Defendant.

56. In failing to make the required regular monthly payments of all accrued unpaid

interest due on the loan, Defendant has breached the contract with Plaintiff.

57. Plaintiff has fully performed its obligations under the Loan Documents.

58. Plaintiff is entitled to payment of the full remaining balance due under the Loan

Documents from Defendant, along with applicable interest and attorney’s fees and costs.

59. By reason of the foregoing, Plaintiff is entitled to judgment against Defendant in

the amount of $124,445.49, along with interest at the rate of 9.50% on the unpaid principal balance

from February 23, 2024, along with costs, disbursements, and attorney’s fees.

AS AND FOR A THIRD CAUSE OF ACTION AGAINST DEFENDANT

(Breach of Contract – Loan III)

60. Plaintiff repeats and realleges the allegations contained in paragraphs 1 through 59

as set forth in detail herein.

61. The Business Credit Card Agreement constitutes a valid and binding agreement

between Plaintiff and Defendant.

62. In failing to make the required monthly payments on the loan, Defendant has

breached the Business Credit Card Agreement with Plaintiff.

63. Plaintiff has fully performed its obligations under the Business Credit Card

Agreement.

64. Plaintiff is entitled to payment of the full remaining balance due under the Business

Credit Card Agreement from Defendant, along with applicable interest and attorney’s fees and

costs.

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65. By reason of the foregoing, Plaintiff is entitled to judgment against Defendant in

the amount of $5,313.51, along with accrued interest at the rate of 15.24% on the unpaid principal

balance from February 23, 2024, along with costs, disbursements, and attorney’s fees.

AS AND FOR A FOURTH CAUSE OF ACTION AGAINST DEFENDANT

(Breach of Contract – Loan IV)

66. Plaintiff repeats and realleges the allegations contained in paragraphs 1 through 65

as set forth in detail herein

67. The Business Overdraft Line of Credit Agreement and Approval Letter constitutes

a valid and binding agreement between Plaintiff and Defendant

68. In failing to make the required monthly payments on the Business Overdraft Line

of Credit, Defendant has breached the Business Overdraft Line of Credit Agreement with Plaintiff.

69. Plaintiff has fully performed its obligations under the Business Overdraft Line of

Credit Agreement.

70. Plaintiff is entitled to payment of the full remaining balance due under the Business

Overdraft Line of Credit from Defendant, along with applicable interest and attorney’s fees and

costs.

71. By reason of the foregoing, Plaintiff is entitled to judgment against Defendant in

the amount of $5,104.28, along with interest at the rate of 17.90% on the unpaid principal balance

from February 23, 2024, along with costs, disbursements, and attorney’s fees.

AS AND FOR A FIFTH CAUSE OF ACTION AGAINST DEFENDANT

(Breach of Contract – Loan V)

72. Plaintiff repeats and realleges the allegations contained in paragraphs 1 through 71

as set forth in detail herein.

73. Defendant has overdrawn the Checking Account in the amount of $29,016.08.

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74. Plaintiff is entitled to payment of the full overdrawn amount, along with applicable

interest and attorney’s fees and costs.

75. By reason of the foregoing, Plaintiff is entitled to judgment against Defendant in

the amount of $29,016.08, along with accrued interest on the unpaid principal balance from March

4, 2024, along with costs, disbursements, and attorney’s fees.

WHEREFORE, Plaintiff demands judgment against the Defendant as follows:

A. Judgment against Defendant under the first cause of action in the amount of

$24,883.20, plus late fees thereon at the rate of six point five nine percent (6.95%)

from February 23, 2024, attorneys’ fees, costs and disbursements;

B. Judgment against Defendant under the second cause of action in the amount of

$124,445.49, plus late fees thereon at the rate of nine point five percent (9.5%) from

February 23, 2024, attorneys’ fees, costs and disbursements;

C. Judgment against Defendant under the third cause of action in the amount of

$5,313.51, plus late fees thereon at the rate of six point seven four percent (6.74%)

from February 23, 2024, attorneys’ fees, costs and disbursements;

D. Judgment against Defendant under the fourth cause of action in the amount of

$5,104.28, plus late fees thereon at the rate of sixteen percent (17.90%) from

February 23, 2024, attorneys’ fees, costs and disbursements;

E. Judgment against Defendant under the fifth cause of action in the amount of

$29,016.08, plus attorneys’ fees, costs and disbursements;

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C. For such other and further relief as this court may deem just and proper.

Dated: March 8, 2024

HARRIS BEACH PLLC

____________________________
David M. Capriotti, Esq.
Attorneys for Plaintiff
333 West Washington Street, Suite 200
Syracuse, New York 13202
Tel: 315-423-7100

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VERIFICATION

STATE OF NEW YORK )

COUNTY OF MONROE ) ss:

Alan Heizmann, being duly sworn, deposes and says that deponent is the Sr. Portfolio

Analyst & Credit Approver with ESL Federal Credit Union, the credit union named in the within

action; that deponent has read the foregoing Verified Complaint and knows the contents thereof;

and that the same is true to deponent's own knowledge, except as to the matters therein stated to

be alleged upon information and belief, and as to those matters deponent believes it to be true.

This Verification is made by deponent because ESL Federal Credit Union is a banking

institution and deponent is its Sr. Portfolio Analyst & Credit Approver.

Deponent further says that the grounds of deponent's belief as to all matters in the Verified

Complaint not stated to be upon deponent's knowledge, and are based on documentary evidence

from the records of the Plaintiff substantiating the claim.

ESL FEDERAL CREDIT UNION

By:
Ålan Hei afiI
Sr. Port lio Analyst & Credit Approver

Sworn to before me this

day of March, 2024.

JOEL DUTTON
Notary Public, State of New York
No. 01DU6403029
Qualified in Monroe
County
Commission Expires
January 13, 20_c
otafy Public

HARRISBEACHE

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