They have at least a lien now and could take the property. The "pledge agreement" was not in the 8K for May 27, 2012. The Pledge could also involve an already executed "Deed" (if done correctly), which upon default would require only notice of default, time to cure, then failure would permit recording. Nothing esle UNDER NORMAL CIRCUMSTANCE...but without reading pledge can't tell for sure.
ALSO....USPR..executed a release of all claims against Duane Morris for its representation...so to say they gave "time" because of poor representation...is bogus.
read from last 10Q:
In addition, under a settlement agreement, we are obligated to pay Duane Morris LLP, our former attorneys, the sum of $ 1,614,216 in four equal payments, at 90 day intervals, beginning in May 2012. Certain other conditions may apply which would result in an acceleration of such payments (Please refer to our Form 8-K filed with the Securities and Exchange Commission on May 27, 2011). O n January 7, 2010, our Mexican subsidiary granted and pledged to Duane Morris, as security for the payment of outstanding legal bills, a security interest in and a lien on all of its rights to our mining concessions in Mexico. A Payment Agreement and General Release also were signed by the Mexican subsidiary which imposes restrictions on our ability to conduct our business without the prior written consent of Duane Morris. Under the settlement agreement, we also released Duane Morris and, inter alia , its partners, from any and all liabilities or claims the Company may have had in connection with the provision of legal services rendered by Duane Morris.
As of the date of this report, we have not paid the holders of certain of the notes described above as required under their terms. In addition, we have amounts due under the settlement agreement with our former attorney’s discussed above. If we are unable to pay these notes or our other outstanding payables in the immediate future or otherwise re-negotiate their terms, we may be required to seek protection under the US bankruptcy laws or otherwise be forced into bankruptcy.
