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HomeMy WebLinkAbout96-02213 I' I KLEIIR,IIARRISON.IIARVEY, BRANZBURG & ELLERS By: Morton R. Bnlllzburg. JelTrey II. Cohen Allol'/ley I.D, Nos, 24477,69740 1401 Walnut Street Philadelphia. I' A 19102 Allorneys lor Plaintiff (215) 568.6060 PNC Bank, National Association, successor in interest to CCNB Bank, N.A. , I !i PNC BANK, NATIONAL ASSOCIATION. successor in interest to CCNB Bank, N.A. 4242 Carlisle Pike Camp Hill, PA 17011. CUMBERLAND COUNTY Plaintiff. - - CASE NO. (It. ..J..l/~ (~ /.u.- , " I i 1 I COURT OF COMMON PLEAS v, ROBERT J. and JEAN E. COLAIZZI 428 Lamp Post Lane Camp Hill, PA 17011 Defendant. COMPLAINT IN MORTGAGE FORECLOSURE I. Plaintiff. PNC Bank, National Association ("PNC") is a national banking association organized and existing under the laws of the United States of America with a place of business at 4242 Carlisle Pike. Camp Hill, Pennsylvania 170 II. PNC is the successor-in-interest to CCNB Bank. N,A. ("CCNB") by virtue of a merger. (PNC and CCNB are collectively referred to herein as the "Bank"). 2. Defendant Robert J. Colaiui is an adult individual residing at 428 Lamp Post Lane, Camp Hill. Pennsylvallia 17011. PHILl \604!!t.l 3. Delendant Jean E. Colail.1.i is an adult individual rcsiding at 428 Lump Post Lane. Camp Hill. Pennsylvania 170 II. 4. Upon information and belief, the Bunk alleges that Robert J. and Jean E. Culaizzi (thc "Colaizzis") are husband and wile, 5 _ On or about October 31. 1988. the Bunk mnde certain loans. advances and/or extcnsions of credittu Colaizzi and !lager Partners and linger-Grandon Insurance Services. Inc. (the "Borrowers") in the aggregate principal amount of$I.340,000.00 (the "Loan"). As evidence of the Loan. the Borrowers executed in favor of CCNB that certain Mortgage Note dated October 31. 1988 (the "Note"), A true and correct copy of the Notc is attached hereto as Exhibit "A", 6, In consideration of and as security lor the Loan. the Colaizzis executed and delivered to the Bank that certain Open-End Mortgage and Security Agreement dated July I. 1992 (the "Mortgage") which was duly recorded on July 30. 1992 with the Office of the Recorder of Deeds for Cumberland County. Pennsylvania at Mortgage Book 1080. Page 473. A true and correct copy of the Mortgage is auached hereto as Exhibit "B", 7. The Mortgage covcrs thc property located at 428 Lamp Post Lane., Camp Hill. Pcnnsylvania (the "Property"). 8. The Colaizzis are the real owners of the Property. 9. The Colaizzis arc in dcfault under the terms of the Note and Mortgage in that they have failed to make monthly payments of principel and interest as and when due. PHIL1\6045-' 2 10. As of April 23, 1996, thc Colaizzis ore indcbtcd to the BWlk under thl1 Note WId Mortgage us tilllows: Principal: SI,423.834.53 Interest: 90.842.64 Il21lIl: SI.514.677.17 together with late chorges WId continually accruing intercst lit the rate of $336.18 per diem. II. The notice provision of Act 6. 41 P.S. ~ 101 ~ Kij. ore not applicable because the underlying obligation is in WI wnount in excess ofS50.000,OO. The notice provisions of Act 91, 35 P.S. ~ 1690.401 ~ Kij, IIrc not applicable !lccause the underlying loan ohligation WIIS a commercial obligation. 12. Pursuant to the Mortgagc Documents. the Bank is entitled to all attorneys' fees. costs and expenses incurred by the Bank in connection with this motter, PH1Ll\'045-1 3 , " 1"'_. .......-1 YmUfICA TION I Eric D. Krimmel, verify as follows: I. I am a Risk Management Officer of PNC Bank, National Association, successor in interest to CCNB Bank, N.A.; 2. I am authorized to make this Verification on its behalf; 3. I have read the statements contained in the foregoing Complaint in Mortgage Foreclosure; 4. The statements contained therein are true and correct to the best of my knowledge. information and belief. I make this statement understanding that it is subject to the penalties of 18 Pa.C.S.A. ~4904 relating to unsworn falsification to authorities. '.;1 '1" ,-! Dated: April 23. 1996 f-A":_c-;:,. ~ - Q.... Eric D. Krimmel I )0 " " ~ I' I ", " , '. " " -,,, Mortgage Note US\ 1,340,000.00 ...:' tl. 1.". , I I" IllI "'OR VAlL:E RECE 1\'1:0. th. IJf1'Jl:r~.I~nrJ I herCllUltef ~'allrd the "'Oorru..-,.r") prllmlU" hI pit)' CCNR D.jnk. N A, a nllllunlll bllnlllnlllHHln'H J~~,)o;I;llllln ..:rulrd b~ anI! r_l~tlnl under 11\,14"'\ Ilf Ihe UnllcJ SIIII" 1\,1\111' Us prm,.pal pia.;:. ul h\J\1I1(~' al .n! Brill" Street, Nc... Cumberland. ('umbcrlilllJ C.IIJnt)'. Ptnn,~hl.nIJ. Ihcr'lnatltr ..:allcd th, "Ollnk", .If Itl II.. <mJcr. lh, pnn":lplIl 'um Ilf ac MlILI~ 'ntRtZ fllflJaD roRI'Y 'l1DJ5MI) NlD 1<<)/100 ____________________ISI.34o.000.oo--lllllll,\~S h}IClher "-Itn Inltrnt 11M In, unplllJ ~H1n,,:,p4J bala"..:. atlh, fllll .)f' u.~, pCh;cnl pcr .Innl.un. 'Jld "tin. ":Ipaland Int'ful Itl be pl1uJ .1\ Ihe umc~ .:In!.! In the mOnnll'f "1 fonh IU J',Jlll)"u, (0) ...It 011. 1I1lllon nr.. HWI,"" ~'orly '","..end Iftd 00/100 (.1.~40.000.00) lloU_, '"wrul ,"0".' as atoresald, payable rive (j) yuu trom tile date herl!O(, together wttl1 Intl!rld:st ,m t'l~ unpaid t'Je,(ance at the rllte o( etfven and one..half (11 l/2,,) percent per IlIlnum, ,.,11 I prlnci~.l I1l1d Interest to be paid In monthly Installment:s ot rhtttlen 'ThUlJ5ant! SI:< lIuntlrl!' Twenty Dollar. end Slxty-EIIlhI Ce"t. ($lJ,,'IO.~8) .ach, cOIM1encln~ on the "r day 0 ().. .......~. , 1 ~88 and CGntinulng on the :'tame day ot each month tllm81t.er Wltt I ~,lnc,~.1 ..,d Inlo,..t ate tully peld. ' II I. underslood and "ll'1'.ed that the p,oVi.lon t<A' the ~aYTlle"t or ~'In.ipel 8I1d lot....t .hat not aile' <A' Change tho t."" or ,"atu,lty ot thl. obligation. Borrowers to pay r."l est..te taxes and present receipts to 8I.nk (or verl!icllt!on privr t Decambe, l.t or each yo.,. TlDS LOAM IS PAYAIlLS IN I'IJLL AT TIlE I!lID OF FIVB ($) YI!ARll. AT 'wtATUI\1TY YOI MUST REPAY 11IE BIlTIRE PRINCIPAL BALANCE OP 11IE LOAM A.HD UNPAID lJf1'BRES' THEN IJUB, THE BANK IS UNDBR NO OBLIGATION TO REl'IIIA.NCB THE LOAM AT TIlA.' TIML YOU WILL, 11IBREPORl!, BB RBlUIRED TO MAKB PAYMENT oor OF arHB! A.8IIBTlI mAT YOU MAY OWII, OR YOU WILL HA.VB TO PIND A LSNDIlR, WIIICH MAY B THE BAHK YOU HAVB TlUS LOAM WITH, WILLIIfO TO LIND YOU 11IE 1I0NEY. IF YO UPIIWICB TIDS LOAM AT lIVo'rollITY. YOU MAY HAYB TO PAY SOMB OR ALL OP TH CLOSING COSTS NORMALLY ASSOClATBD WITH A NEW LOAM, BVBN IP YOU OBTAI UFIIWICING PRO"t THE SA.MIl BAHK. rhe provtsions ot a LaM Agreement betwe.n the parties of even l1ate art! Incorpr,lrll.ter1 her,,! by ,ererence. mlthromc. o(slld Swlor su,hoth.r pla~e u d,sllI,atN In Vintinl by th. hold.r hereol) and shall mlso. from time to time. unul UJdd.bt and Interesl bt fully plld, rcnew and kup.lw.. by paYlnlth. necenary prlmlums and ,hllrllls on such poli.;y or pcbcit. of fir.. slorm. Uplollon Insurance, *u dam... inlurance. or on any and mil other InSUranlo:e. ...l1ich th. Bank. lU 5Ulo:Io:tslOn or lUlllT'l, m.y dtmll'ld for tuMor Sfcunty of !lId dlbt upon lh. bUlldln" Ilnd Impro~.m'ntJ d..cnbcd 1ft !.he MonAl11 I(companYlnlll\d SI,unn. tNl prtl.nl obh.allon. ur any which may be htr,afterlrelo:tcdth.rtOn,I&1d pollcllsoflnsuran,.o("hluocver und to be dtposittdVillhth. Bank. III !UIO:Cluors or UIIIM. Ind tranaf.rrtd by properly rl~sttred and mpprovtd ullpunlnll Viun non.IO:onU1buunli monlal" dauslS 3uach.d, and any ren.wall o(,lJd j)OhclI' to be lUmtshcd to 'lid Blnk at I.ut :I'~lnI7) daYI before lht elplfauon or said pollei..: In the ,'Vent l)( Iou or damllt, the prOl;ltdl of s&1d insurance shall be paid IIJ Bank alonl_ Bank IS authonttd to adjust andcompromlst such Iou wlthou' thl conllnlofSorrow.r, to coll.ct. rec'I'V' and r"llpt for 'u..:h pruneda In lhl namt of Bank and Borrow.,. and to cndon. Borro....,.s namt upon any 1o:t1ICk 111 pay mint thlreof Such prO(:I.da ,hall be applied toward rllmbunlm.nt of III COlt. and Iltptnltl of 8ank In coll.IO:tina !ald prolo:uds. and towud th. Plym.nt of all amounU pIYlIbl. by Borrowlr to Bank her.und.r, and tow.uo the plyment ot' thl Ind.bt.dn.ss 5C1o:urcd hereby or Iny pun Ion thlreof. whtlhlr or not th._n due or payabl.. or Bank ml It30 option, may apply Slid Insurance proclldlor any 11ar1 thlrlOrto lh.r,pI110r rebulldlnlofstJd pr.mlsas. In ,h. I""nt 01 !ill. ofth. premlsuon ror.c:lolurt. the ownlnhlpof.tJ1 poliCies of Insurance ,hall p,utotht purthucr It sa.d sal. and BOITOwcr hlreby appolnLl 8Mok It I anomIY'IJ..ra-:t. In 80nowl" name to lUSl",and tranlfer .U 'Iu,h poli~ltl to sUlo:h purchulr, Th. BOlTo....rshll1l.lso pay, from umt to Uml, until ,&id dtbtand lnltrtsl be fully plld. a1ltlJl.n. water ilnd 5.w.r rlnll and all charllS anlJ clllm, au.ueUIJI I.''''''.' ,..IY lllnt. prn.ntor fuNr., by any tawfullulhon,y upon thl monll,ld pnml.... wlmh by an~ ,Ire..nt oduturl llw or I....' shall havt pnonty In h.n or pay mint to tht debt rtprestnt.d by thll ,obhlauon, and ncurld by !&ld Monll", whtn and ..th. samllshlU btCdmt dUIlInd payabl., andshaJl also'llublt to IlId Bank,lU succeuon or aUIIP", ,.Ctlpll (or alltull. Wit., and stw.r r.nllIS5tSult upon orch.,...bl. toth. mort"&fdpropcny. at th. om" of slid Bank. or at ,uchotl'1or pl." u may be dtsi",attd by uid Bank lR wntin.. wttAm tw.nty 1201 day' Iftlr ~uc:h t...,sorwlltror "w., I'IntJ hav.lut be.n payabl.lu flee wltholl' the Impolllion of lntt".t or penallits, AI Will II rtCClpU for all other IUtl or charlt. or clatms of .~.ry kind and nlN,. which by any p"5tntorfuturtlIW or 1.w, mil)' be or bclo:om. ,1111'1 upon the monlalld prClplrty. pnor in h.n to ,.tdMtlnp.t, orw~uch may be orbt,om.. by any prluntorl'ututfll... orIIWI. nntdlstribu'ablt or aHowablt or pay- 3bl. befor. s~d d.bt. out ofth. PI'<X'Ns of any jUdl~laI SlI. forcoUfCuonolsaiddtbl.or sod\slt1butlbl. tlr allowlbl. nr pay'bl. out of th. proce.ds of lI1y oth.rJudICl.l sal., Without any trllMl or fUtur. delay, th.n t1UI obllllllon to be "'tJld; oth.fWlS. to ,.mlln In full ror" I\lld "'Itru.; It Mlnlund.nlOOd and ......d. ho"""'lr. th.l upon the falluff tlfth. 8tlrro,.er, Borrowlr's hll" or US I,"" (I,) mllnl~n 'ltd InIUrIl1C" upon Ut. bvild1n.. or to pa~ the tUtl. wlter and "wlr rentJ, or other !;harllS. claims or hlns a.s alortslld.lh. BanIL. its ,u"..a.on or USlI1\I. may Inlure th. buddin", ,,, pay 5u,h lues. wltlr and It....r rent! or other ,har.... clwn. or Iitn..lIldth. suml so adl,lnc:.d by th. Bank. Its ,UIo:":ISSO" and aUltP'\lS. ,hall be payabll by th. BOrTower. 80rrowtr's h.irs and ""IT".ll,)tht 8ank.lu ,ucctuors and as!ulP". and ,hall be 3dd.d to aIld btlo:tlm. 1& plU1 o(tht pnnelpal d.bt her.by ..cured and ,hall bur Int. rest thtrton.. lh. tilt \It fonh abu" I unul paid. rhe Hllrrlllur \l)~~nllnt.\ tUhl i&tlTl'~~' rhill ~Ilh the plI~nH:nI~ ,II pnn";lplIl JnJ IMten:,1 h... ....111 pll~ I,) fhnk 1I prll r.llOl P'll1llm"llh'fIIlU\, a''''"mtn" .lnJ In~lJrlln\c prCmllJm,nf\! [II nrt,;llmt dut .1' l"II'nllt~Jn) thll Rank "llhallhr U..nk "III hll\o' ,ulll...ll:nl flJnJr. l'n hanJ hI pu~ 111\1\. a"c"mcnl\ ,IOJ In,urlln..c pfl'flllum"lhH1) j )tll ,Ja~.. hclurl.' the JUt ..laic lh"rnl ^n~ Jrlh:11 ..halllmmrJllllcl) he p,lId hI Bank h~ 811rtll'oHr M.me), ~",hcl.t ,hull nlll o('lIr IOI('''N. unlc.... nl h...,..... I.., rt4ulrrJ b~ 111...., ;mJ. up"," ..lelaull. mil) he -apphed h) BlIllk.1M n\\lllJTlI ,lithe m'l"~IIIlC mJllhlcdnc" It ,hall he the tt:,ptlM~I".II" III the 8'lft"...cr hI tumllth Bank IIollh hill!. 10 ,urli.;urnllLll1t to! pa'o 1,1\" heIdtI:' Iht I".:nllll) lIl1a..:hc, Tt", 8nfTll...rr hllttln lI_,rc,lhullrllhr Ie\ (nll)1 the PIl~~Il~f, allltr thl: dall: III thl\ 1"1111. ,)1 an\ laVl ,)1 thl: ("1/111n,lO' Vl!lllllh 0)1 Pcon~~l\anla. d.:Ju..:tLn~ Ir'lm thl: \ Illue1I1 Ihe lI1nd r,'tlhe purpilU e,/ t,11311I1O. an) lI.n Ih.'flln, 'lr..:han~nli I/llln~ "'a) !t,. I.."" 0'1'<10 1M !'llt.:ld'Jr the IIIUII,lr ,)1 mnrt.liQ,n \Jr.tch" ~c~urcd thfrtb)'. hlr \tatt: ur 1,1~...1 purp.l\!!\, ,lr thl/ mllnner 01 the ';1l11e..:llllO ill An) \u..:h tun. ,,1 In 10 ...,le..:llht IOlftUI ,lIthe Bank. thr '<Iohlll~ III \ald pnn~lpl1l sum \1I.:ured h) thl\ N,)le. hJ,ether ~llh Ihe Inlfrrsl.tue lherl/nn. ..hall. at the ,)pllllO III the Bank. Immedllll.:ly h':":'lme dUll .1Od Pl)llbl, The 81l1T,)'oller h.reln funher apcc, Ihllt II illl) In~llIllrn'nlllrlnt.rellt be nul pllJ 'ollhrn du.. su..:h lnstallm.nl ,hili hear lntere~tal th' rll. ":I t"rth ahu\, until paid In Ih, C\ lI'nlthat an)' pa\mrnt pr,l\ h.h:d I',)r hfrtln ,hall nl:~'umf'" -. JUflll( /I PftllllJ Inu~,ullfllt\ccn' I ~ I Jay~. Bnnll\Hr Ilaf,ret\h)pll) a" (I1t. ..:hil1'r" 'II fl\t ..:tnl.\l ~,c I tll11111..:hdllllar \U 11\crdu, ")1 Ihlt purpme III delrl)lnll e.pen~e~ In":ldcnt tl) han.thnllth, dtlln~uent pay mtnt A.nd turthtr. BIlrTI1Vlcr nglu'\ nill tu ..:un\,) ,)r ulher"tlo IU tll'n~lcr tllle I fllher 11/1010' f'lullabl'l to Ihe ptfrnlU\ dn..:nhcd '" Ihe ml)Ml/.aw.e \1I..:unnlllhu Nut' '<Iolth'lUI prlllr '*nnrn ':llOlient ~~ Ihe BOrftl'<lorr tu Ihe "pc~ln..: trnnlirer A. trnn~lcr t'llhe ~Ul'\ 1\~1t or ,jot\lUeli 111 he In 'llthr BI)fTt)\ur 1M Ihe e\ent ,)1' Bnrro'ollt(, Jrath ..hall not ':llmc '*llhll1 the prllhlblll\lO llllhlli ":Il\tnlllll PROVIDED. HOWEVER. and It 1$ htnby upr.:nl) .t~ntdthlllll' Illlln)' tlmc default br made If\ pa~mcnl 1)1' ~I1J,j pnr':lplllium.or'lf Iny ln~lilllmrnt'lllnl,rul or premlum~lJfjOliurlln.:e, IlS alore~lld. for th. ~pll.:e ott'ollenlY (20) JllY~. or,,!, an)' lun. ,*llcr II1d 5t,*fr renls. munh;lpllllueUmenul)r .:harlln Is\eued 1,llnstl)r U~lM IhL'mllnll1lled prc'1Uua It aforeslld. ,lr Iny plrt thcreof.ur 1M the Uhlblllon llhhr tt":C1PU for t.~n and ....,uer and s''''er renu Ilnd all l)ther lallea ur..:harll" 111 claims 11.JI)rCS&ld. on or bef,Jre th, Ilmf htrelnat\er sptclOed for Ih, ,.hll:nl!un Ihereof. lor the !lpl..:e ufl....'nlYI201 dilY~, Ihe ....hole 01 '11d pnnclplldfbt or sum to,.lh, r 'olllth all premlumll Ofln5Urlln.:e.tue" waler anJ ""'er ',nu paid ~hall Ih'.'eupt.ln hc~llme du", Ind 1'1)1 Dbl'.lIliJ ludam,nl may be entered Ind ne.;ullon may I~sue furthYwUh 1'01 the ~oUc.;llt)n ollhc ~amc. and alllnlerul thcrton. to'llh,r ....lth.1I feu. COlU tlnd CIl~nUf of 0;01l"1In, the u.me. Inl.:ludinlln Gltomey's ..:nmmllli\lUn IIf n\'. pcr "ntum I ~'lt,1. 1I1)'lhlOlI herein ..:onluln.d II) th, ..:nntrIl1}'. nOI....lthslandln... In Ih. Uen! oflhe l.ulIn. ,)1'.11 or any ponlon llfthe prcmlJCI .tncrllJed in the mort,.,t ~e..:unn, t:m Nolt In MY prIXeedlnp under th, pO\lotr of Imlf\enl domain. Ule entire a\loud rtndered In lu..:h prOl;udlnl~ ,hall be paid tu Bank. In bt applied IO'oloard 1Ilmbunem.nlllf .11 'oIlS and .lIpenuI of Bank In 'onncctlon wl1h $lId prOl:eedlnlJ5 and toward payment of 1)11 Iml)unu p.~abl, h~ BOrTow" to Bank under the monaa.. !.,unn, thiS 1'101. .nd lu.....rd the pll~rnent ,)l Ihe Indtbt.dn'" her~b)' \tcured. or any pol"tIlln Ihttcof. ....hflher or not th,n due or pay.hle.or 8ank at 1\.\ ,)pllon. ma) appl)' said award or any plr1 thenot", 10 the rtplU' or rebtllJdJ.n. of sAId prtl1\lsn descnbN In slid ml)rtp,e And II is htrcb)' iJl!;llltd Ihlllhls ublll.uon 15 .l.:&;omp.n1ed by Indenlure 01' Mortll.t, of ,..en dall! henwlth, made bllll...."n 8orro\lloJr and Slid Bank. litl;urcd upon real UII" Sllualed In the 'l'<Mwhip of Hstpien, CowIty of CIJItJer!Jnl. Cu",~. ,olth of PBrwwylvenia. _.. ll~ and 201 st. Jcma <hIrt:h ibid. Call> 1liU. PA 17011 10 !'ld Indentur, of MM.." mort particularly iJescnbfd. and i~ subJtct to .11 th, 1'""1 and conditions of uld Mon'III" AND PROVIDED further and it II hcr,b)' and thereby npr.nly I.,.ed thlt in th, '\I,nl of any bruch by BI)rro....". of any !;onnant., condition or a"cemen,1 of this obhpllon. or of said Mort,II', it sh.1I be Ilwful forth. 8,n'" to enttt ur?n III and sm.ull' th.lands, bulldlnp and prcmlsts II'lnled by said Mon.aae to "CUrt Ihll obi IS'" tlon, tOlelh" With the hartditam,nta and .ppurtenanl:'I, and caCh and ....." plrt Iharto(, andlotu. polltsSlon otth. slim. and ,>( the nUurn, .ppllanctl and ,qulpment th,rein conl&ln.d, and to hl\l', hold. m.n.p, leu. to the Borrower or Illy other person or person" use and optr.t. Ih. lamt in such pucci, and on such lerml and ror such pcnodl o(uma as Bank may, 1M Ih, sole discralton of Ban1&.. dltmr.opcr, the Borrower '1P',"n, thlt Borrower shill Ill"ld will, ....htn.\ltrrequtll.d by Bank so to do, .lIian, tranlf.r and eli~trunlo BllIkllly such le,u, orlubltu.,; Ilndto .:ulle~t and ,.ctl\l.111 r.nu. IIIUts and prontl of the sl,d pnm..u ar.nted 10 "CUrt thla oblt,ation and '\1,1)' part thereof. (or whlchthlsobhlloon sh.1I be . sufficient wmlnt '...heUlcror nOl sUl:h I.U.orlubllat ha be.n .IIIJI'ltdto Mlmlaltc. and to mak. from lint. to um. .lIalter.llons. r.nO'llUOnl, "pll" and npl.c.m.nu thereto IS may stirn Judicious 10 Bank. and after deductin. the cu,t of any or.U such Illefllions, rtno~ llioM, rlp.in and rtpl.c'rn.nts and upcnscl1ncidtnt 10 luina and retllnln. poIstSlIOn oflh. Slid property and the man".m.ntlnd operation Ihereof. and kttplnllh, ~1I"t property lnlurad, 10 apply the rtlldu. ofluchrcnts, ISIUtl and profltl. i(.ny, anlin,11 arorallid, 10 the payment of .!Illltl, char,el, Cl.unl, anumtntl, watcrand sewer rentl and any och.r IIlnllhll m.y be prior in h~n or payment to said Monl.a. or thiS, oblipuon Ind prtmlull\l for said inluranet, with Intt.rlll ther.on, or to the Inttrut Md pnnclptl dUt und.r IhlS obh.auon and Itcurtd by Slid Ind.nlurt of Mon..", With III casu and .ttor- ney'~ fns. In ,uchurdararpnonty, as Bank. U1lh.loltdiscretlonofBank. may dtttrmln. .ny 1I.1ut., law, custom or u!e ta Ih, contra" notwltlulandlna: II belnl up"nly ....e.d, howe\'er th.t Ihl Iwn. of poll'lIian by B.nk. und.r thiS pro\lision, ~h.1I nOlfthe\lt any d'f.ull....hich may h.\If bttnm.d. by Iklrrow.r,orpl't~lntlh, Inrorctm.nt orany oflh, rem,dles by thiS obhs.uon or Iccomp.nyl"a WIfT&n1 of Allome)' or or,aid Mon.... pro~id.d In clSe oflul:h default: and It IS funher upressly und,rstood and IlTtN that t1terem.dlfS by thIS obli..uon .nd WltTanto( Altomey llJ1d Slid Indtnturc pro\lid.d (or Ih. ,nfor"mtnl of ,he paym.nt o( the princip.1 .um secured by Slid MonS"" lo~'thcr With Inrtrtst thereon. IS hcreinbeforc spccltlcd, and for Iho performan" or th, con\l.nanlG, condition" and JIVCCm,nts. mltters and thlnas h.reln contllRed, or in said Mort,_a' r.t.rrtd to, If. cumul.li\l..nd coneurrlnt and m.y be pursu'd slna!y or ~ucctUl~,ly or loatther II the !lol. dlsmtlon otthl B.M and may be .urelsed I" often a nC~IUlon thcrefor shalllX!;ur AND for the purpost of 'fcunn, Slid po55ts!ion I)r s.id morl.aa.d pramll'S 10 Bank. in tt'1 1~lnt.or.ny brtl,h as aforesaid, Borro.....crdo's h,reby IlIthonl' andtmpowtl" any AnOmty of any coun o(Commofl 'I.u In any Count)' ~l(th. Commonwulth of Ptnnlylviml, or of any other court \hcrt or elsewh.re, II Ittorn.y fur Borrow.r, .. W'lIl'l for III persons ,;I.imlnlunder. by. or throu&h Borrower, to Ilan an Illl'ttm.nt rortnt,"n'ln Iny competent coun an IImIClbl.I"Uon in 'Jtctmtnt for poUU\lon ofth. premis.s ","IN by said Mon,'ae. lOlltlher with the her.dltam.nta and 'f,puntnancn 4S ....ell... all Ihturu. appl1lncts and .qulrmlnl of any natul"f ....h.uot\ler. now or h.rtlfttl" in'\tal ed upon or In 'lId mon,laed prlml"s (....uhout any stay 0 Utcution or .ppeal) ..",nlt Slid Borrow.r and III pltnan! clalmlnllund,r. by or throulJh Borrower and therein confess Judfl"1.nt "or th. "CO\l'1)' by Ih, Bank or Ih. pmstUlOn o(lh, ,aid monalll,d pfdml'1l5tollethar ....'th Ihe harfdltam'"t' and .ppunlnanclI. "5 "-ell U III f1"UIfIl. appliances and equlpmenlofany nature ....h.!sot\'fJ, now or h.reafterlnlllaJl,d upon or in Slid mort....d pr,mlsa.. (or , , I' I CD . "I,) ~ i " , I, I If, ! , " , ~ I 1'1 I " , " .,1' ') ,I' I, i, " , , , I;, " , , I )1 >.)\ " " ,~ i . , .r',J 1'" " (. '~, .' .,:1' I , , , ,i' ,~ ,t, . I' ,~ I~; ~ I' " ," ',( !' ~ " , ...1 "i ,'!l ,Ii, ii' " I,. 'i~ " . ",,," ~ i;t. l ,. I ~"~':l!iIl::'~:'" 'f ,,"I' . '. " ., ~ 'lI, " '" ,:. 'j' ""," "Ai:' '.'\, ,", If .-, ','0'""':, ~'~:", :"'1"-':' , :,~'i"fl'I_';~~l!\iJ' , i.t 1'-_' )',J~'I{- (~::, "<'~""U,;.J 1:.;r,__,nJ1_",t1 .:,...,', " I ........ :or. ..,' .. .. ~ I . r . '\. .. _.-0 .,., "":', , . . ') , ..... . " - - -- O.Ba-aND KORTOAO. AND SaCURITY AORaBMBHT THIS INITIIUMINT I.CUIIU 'UTUIlI ADV,.Ncn 'U11IUANT TD JlNNIVLVANIA ACf NO, 121. This Open-End Mortgage and Security Agreement ("Kortgag.") il mad. this /~. day of 1"~.. , 1992 between Robert J. Colaizzi and Jean E. Colaizzi, individual. (hereinafter referred to collectively and obligated as "Mortgagor") and CCNB Bank, N.A., a banking corporation having office. at 4242 Carlille Pike, Camp Hill, Pennsylvania 17001-8874, as mortgagee (hereinafter referred to as "Bank"). In conlideration for and to secure payment and pertormance to Bank of all of the obllgations, al that term is defined in subparagraph. (a) through (g) below, Mortgagor has granted, bargained and sold, conveyed, aliened, relea.ed, aSligned, transferred, mortgaged and confirmed, granted a security interest in and let-over and by these presents doe. hereby grant, bargain and I.ll, convey, release, al.ign, tran.fer, mortgage and confirm unto Bank, its suocessors and assignl, forever: ALL THAT CERTAIN real estate situated in the TownShip of Hampd.n, County of Cumberland, Commonwealth of penn.ylvania, known a. 428 Lamp Post Lane, camp Hill, penn.ylvania, all a. mora particularly described on Exhibit "An attached hereto, incor- porated herein by this reterence and made a part hereot (the "Premi.e.") ; TOGETHER WITH all right, title and interest ot Mortgagor in and to allot the tollowinq, whether now-owned or hereatter acquired (collectively, along with the premiles, hereinafter referred to as the "Mortqaged Property"): (i) pre.ent and future Itructures, buildin9., improve.ents, cOlllllon area., street., lanes, sid.walks, alllYI, paslaqeway., pa.lage., way. and public place., open or proposed, on or adjoining the pre.ises, riqht.-ot-way, public or private, water., watercoursel, strips and gore. ot land, e.tat.s, libertie., privilegel, intere.ts, hereditam.nts and appurt.nance. what.o.ver belon9inq to or in any way made appurtenant; all .ale..nt. and covanant. now exi.ting or hereatter creat.d for the b.n.tit of the Mortgagor or any lubsequent owner or t.nant of the Pre.i.e. or OV8r qround adjoining the pr.mi.el and all right. to entorce tha maintenance th.reof; all other right., liberties and pr1v- ileqe. ot whatsoever kind or character includin9, without limitation, any right. in and to any land lyinq in the bed of any .tr..t, road or av.nue, open or propoled, or in tront of or adjoininq the premi.e.; and all r.verlion. an~ r..aind.r., clai.. and d.mandl whatlo.ver; the air Ipaoe above and the riqht to u.. the air Ipac. above the Premise., and the drainage, crop., timb.r, aqricultural, horticultural, mineral, water, oil and q.. right. with respect thereto, at law or in .quity; ~.~, lO~O r~Ct 473 -. (ii) All now existinq or hereinafter iSlued licen.el, permit. or aqreement., with, from or at any and all governmental or other board., bureauI, or instrumentalitie., public utilities, aqenciel or department. relating to the pre.i.es or any bu.inel. conducted by Kortgagor thereon, or the use or occupancy of all or any part thereot ("Licenael and Permit."); (iii) All tOOll, partl, tixture., appliances, machinery, and equipment of any nature what.oever, and other article. ot personal property now or hereafter owned or acquired by Kortgaqor which are now or at any time hereafter inltalled in or attached to, in or upon the Premilea or in, on or in connection with any buildings and .mprovementa now or hereafter erected thereon, or ueed or intended to be used in connection with the premi.e. or in the operation at any buildingl and improvements now or hereatter erected thereon, or in the operation or maintenance ot any suoh building and improvement situate thereon or any bUlinel1 ot Mortqaqor conducted thereon, only in the event that the personal property is or shall be affixed thereto, including but not limited to all turniture, furnilhinql, apparatu., trade fixtures, appliances, screen., storm and screen doors, awnings, window sh~~e., venetian blind., floor cQverinq., carpeting and other furnishings and other peraonal property of every kind and nature whatsoever; motor., elevator., e.calator., fittin~., radiator., gas ranges, ice boxes, compres.or., mechanical refrigerator., couplinql, communication equipment, computer facilities and equipment, .torag. tank., drums and container. (includinq all right. of Mortgagor a. les.ee at any ot the toregoinq), plumbinq, hsating, lighting, cookinq, laundry, ventilatinq, throuqh putting, air oonditioning, air coolinq and retriqeratinq equipment and Iy.tems, turnaces, boiler., oil and gas burners, pipe., conduits, pipeline., engine., Iprinkler and security equip.ent and Iy.tem., incineratinq equipment and .y.tems and fire tightinq equipment and syste..; and all renewals, rapl.ce.ents or articles in substitution of any ot the tore90inq, ollly it the ...e are or shall be attached to the Premises or any buildingl or improvements thereon in any mann.r, and all acc..sorie., parts or accel.ions thereto now or her.atter owned or acquired by Kortgaqor or in which Kortq.qor has or .ay acquire an intere.t, and all product I and proceeds thereot; (iv) All building material., buildin9 aachinery and buildinq equipment now or hereafter delivered on lite to the pre.ises arising out ot or in connection with tne construc~ion of or recon.truction ot, or rehabilit.tion or re.odelinq to, any building. or improvement. now or hereatt.r located on the pre.- bel; (v) All right, title and intere.t of Mortqaqor in and to all leases or .ubleas.. coverinq all or an1 part of the -3- ~oo~ 10~O FACt ~74 ,....6\ -. premi.e. .nd Mortgaqed Property or .ny portion thereof now or here.tter exilting or ent.red into, .nd all right, titla .nd intere.t ot Kortgagor thereund.r includinq, without limit.tion, all pre.ent .nd tuture rent., issue., and/or protit., and all other exi.tinq and future rights to p.yment or contr.ct rights (includinq any right to p.yment, thereunder, whether or not earned by performance) at any n.ture arising out of the premi..1 and Kortgaqed prop.rty or from the .al. or le.s. of any prop.rty, goods or mat.rials or trom the r.ndering of services including, but not limited to, the 1..le ot .11 or a portion of the prami.es (allot .uch proceedl, receipt. .nd income are herein.fter collectivoly referr.d to !I. the "Income .nd Rent." and all such right. are hereinlltter reterred to oollectively as "Rights to Payment"); and any other incom. of any and all kinds (including depo.it.) belonginq to or in .ny way pertaining to the pr.mie.s; all rights ot paym.nt, c.sh or security d.pOlits, advance rental., and depo.it. or payment of similar nature; (vi) All right, title and inter.lt of Kortgagor in and to all options to purchas. or lease the Mortgag.d Property or any portion thereof or interest th.rein, and any gr.ater e.tat. in the pr.mi.e. owned or her. after acquired by Kortgagor; (vii) All award. and other comp.nlation heretotor. and hereatt.r to be made to Kortgagor for any takin9 by eminent domain, eith.r p.rmanent or t.mporary, ot all or any part of the Praai... or any ea..ment or appurtenanca thereof or therato includinq, without limitation, special and cons.quential damaq.., which said awardl and oomp.n.ation are h.reby as.igned to Bank, and Mortqagor doe. hereby appoint Bank, and any of Bank'l offi- cerl, it. attorney-in-tact couplad with .n intere.t and autho- rity, and diract. and empower. .uch attorney, at tha option of .uch attorn.y, on b.half ot the Mortqaqor, it. .ucce..orl and a.liqn., to adju.t or c~promi.. the claim for any luoh award and to collect and rec.ive the procaedl ther.ot; (viii) All inlurance policie. coverinq the pre.ile. and all proceed. ot any unearned premium. on any luch inluranc. polici.. including, without limitation, the riqht to reoeiv. and apply the proceed. ot any inlurance, judqment., or .ettlea.nt. made in lieu thereof, for da.a9. to the Mortqaqed Property; (ix) Any .eouritie. or guarante.. held by Kortqaqor with re.p.ct to any of the Riqht. to paym.nt, Lic.n.e. and Perait. and leales and .ublea... ot the praail.., or any part thereot, and any note., dr.!t., acceptanc.., chattel paper, document. or other inltruaent. evidencinq the .a..' and (x) The right, in the naa. and on behalf of it.elf or Mortqagor, to appear in or det.nd any action or prooeedift9 -3- &00<<1080 ~~Cf 475 -. " . -..OA '\ brought with r.lpect to the premi.e. (including, without limita- tion, any condemnation or arbitration proc..dings), and to co.- m.nc. any action or proce.dinq to protect the interelt at the Bank in and to the Kortqaq.d Prop.rty. TO HAVE AND TO HOLD the Kortqaged Prop.rty hereby conveyed or mentioned and intended so to b., unto Bank, its successorl and a..iqn., to it. own use, torever. PROVIDED, ALWAYS, that this instrument is upon the exprel. condition that if Mortgagor latisti.. all of the Obligationl, a. h.reinatt.r d.tined, in accordanc. with the provisionl at the Financing Aqr.ement., a. h.reinatter defin.d, and this Kortgage, at the ti.ea and in the manner sp.citied, without deduction, traud or delay, and if all the agreementl, conditionl, covenant., provi.ions and .tipulations contain.d ther.in and in this Mortgag. are fully p.rform.d and co.plied with, then this Mortgag. and the e.tate hereby granted .hall ceas., determine and becoae void. Thi. Kortgag. covers, amonq other thingl, all preaent and future advanc.s made pur.uant to this Mortgag' and the Financing Agree..nt. which future advance. shall relate baok to the date ot this Mortgage. A. u.ed in this Mortqage, "Obliqation." means any or all of the followinq indebtedness, liabilities and obligationl ot Mortgagor to Bank and any replace.ent. or sub.titutions th.reot: (a) The exietinq and future debts, liabiliti.. and obligations ot Kortgagor, Con.olidat.d In.urance Group, Ino., Haqar-Grandon Insurance s.rvices, Inc., Colaizzi and Hag.r Partner. and David M. Hag.r (collectively, the "Borrower.") to Bank including, without li.itation, thOle .vidanc.d, in part, by the Aoqui.ition Loan Not.s, the Workinq capital Notel and the S.oond Working capital Not.1 (such in.trum.nt. being her.inatt.r coll.ctiv.ly ret.rre4 to a. the "Notes"), a. allwa.d by Borrow.r. in that c.rtain Forbearanc. Agr...ent dat.d of .v.n date h.r.with by and among Borrowerl and the Bank (the "Agr....nt"). All t.~ not oth.rwil. defin.d her. in Ihall have the lame meaninq. asorib.d to .aid term. in the Aqr....nt; (b) Performance by Mortgagor ot all warrant i.., r.pre- s.ntations, cov.nant. and agre...nt. .et torth in the Not.., the Agr....nt, and in any oth.r in.tru..nts, a9raea.nt. and do~.nt. .xecut.d and/or d.livered in conn.otion h.r.with and th.r.with, and any other exi.tinq or future in.trum.nt., .gr...ent. or docuaent. execut.d and/or deliver.d by and/or a.ong Borrow.r. and Bank a. now or he~eafter a.end.d (colleotiv.ly, alonq with the Not.s and the Agr.e.ent, her.in r.f.rr.d to al the "Financin9 Agr.e..nt."); I [ l -4- &O~ 1080 PAti 478 -. (c) P.rformance by Kortgagor at all warranties, rapr..entationl, covenants and agreem.nt. set forth in this Mortgage; (d) Th. COlt. of curing any Event ot Default s.t forth in thil Mortgage or in the Financing Agree.entl which the Bank el.ct. to cure; and (e) Tha costs and expenles including, without limitation, r.asonabl. attorneYI' fe.. and disburlem.nts, incurr.ed by Bank in enforcing any of the Obligation.. MORTGAGOR REPRESENTS, COVENANTS AND WARRANTS to and with Bank that, until the Obligation. seoured h.r.by are fully paid and pertorm.d: 1. pavment and Pertormance. Borrow.rl and/or Mortgagor shall pay to Bank, in accordanc. with the terms ot the Note., the FinanCing Agre.ments and this Kortgage, the principal, int.r..t ~nd other sum. ther.in and herein let forth; shall pertorm and comply with all the agre.ment., condition., cov.nantl, provi.ion. and .tipulations ot the Not.s, the Financing Agre.m.nt. and this Kort9ag.; and Kortgagor shall timely pertorm all obligation. and duti.. as landlord under any l.a.e ot all or any portion at the Kortgaqed prop.rty now or h.reatter in ett.ct. 2. Warrantv of Titl.. Mortgagor warrant. that Kortgagor poa....el good and ~ark.table te. simple title to the Kortga9ed property, subject to no li.n, charge or .ncumbranc. at any nature .xcept tor those title exception. li.ted in the intormation certiticate approv.d by Bank. Mortgagor .hall provide such title and all at it. rights in and to the Mortgaged Prop.rty and .hall prel.rve such title and all ot its right. in and to the Mortgaged property and .hall torev.r warrant and d.f.nd the validity and priority of the lian her.of again.t the claial of all parson. or entiti.. what.oever. Kortgagor turther warrant. that Kortgagor haa all pow.r and authority and capacity to mort9age the Kort- gag.d Property to Bank and to qrant a lien on and lecurity intere.t th.r.in in the mann.r .at torth h.r.in. 3 . Maintenance ot Kortaaaed Proaertv. Kortgagor Ihall k.ep and maintain or ~au.a to be k.pt and maintain.d tha Kortgaqed Prop.rty including all building. .nd i.prove..nt. now or at any ti.a heraatter erect.d on the pr..ile. and the .ide- walk. and curbl abutting them, in good order and condition .nd in a rentabla and tenantable stat. ot r.pair, and will proaptly mak. or cau.a to be mada, al and whan nec..I.ry, all r.p.ir., r.n.wal. and r.placem.ntl, .truotural and non.tructur.l, exterior .nd interior, ordinary and extraordinary, for..e.n and unfor....n. Mortgagor .hall ab.tain froa and eh.ll not permit the coaai..ion -5- BOOK 10"0 pm 4 n -. of waate in or about the Mortgaged Property; shall not cause or permit any building or improvement upon the Premise. to be re- moved or demolished or structurally altered without the prior written consent ot Bank; and shall not permit the Mortgaged Property to become deserted or abandoned. ... Inauranc.. (a) Mortgagor shall keep the Mortgaged property continuously insured, to the extent of its full insurable value, but in any event not less than that amount to which any co- insurance provisions would apply, and not less than the outstanding am,unt of the Obligations, against loss or damage by fire, with extended coverage and coverage againat loss or damage by theft, vandaliam, malicious mischief, aprinklsr leakage and, if applicable, against flood, and against other hazards as Bank may reasonably require froa time to time. Mortgagor shall also maintain comprehensive general liability insurance (including, without limitation, personal injury and property da.age) and workmen's compensation insurance in such total a.ounts as Ba.lk may rsasonably require from time to time. In connection with any construction, remodeling, and rehabilitation work now or hereatter on the Mortgaged Property, Mortgagor ahall keep applicable insurance in attect. (b) Subject to the rights of prior lienholders, all original policies, including policies for any a.ounts carried in excess of the required minimum and policies not specifically required by Bank, shall be in torm and content aatisfactory to Bank, shall be issued by companies satistactory to Sank, shall at all ti.es be maintained in tull force and effect, shall be assigned to Bank, with premiUIIs prepaid, as additional oollateral security for payment of the Obligations, shall be endor.ed with a standard mortgage~, loss payee or additional in.ured claus., a. applicable, in favor of Bank, shall not be subject to oon- tribution, and shall provide for at lea.t thirty (30) days' notioe to Sank of cancellation or modifioation in coverage, and shall insure Bank notwithstanding any act or negligence on the part ot Mortgagor. At least thirty (30) day. prior to the expiration date ot any insurance pOlicy Mort,a,or shall deliver to Sank satistactory evidence ot tha renewal of all such in.urance. i, f (c) If the insurance, or any part thereof, shall expi.re, be cancelled, beco.e void or voidable by rea.on of Hon- gagor's breach of any condition thereof, or if tor any raa.on whatavar the insurance shall be unsatisfactory to .ank, Kort,a9OC shall within tive (5) days of Bank's notice to Mort,a,or, place new insurance on the Mortgaged Property reasonably .atisfaotory to Sank. -.- BoodO~O rAGE 478 -. (d) Subj.ct to the right. ot prior li.nhold.rs, in the .v.nt of 10.., Mortgagor will give immedi.t. notic. th.reof to Sank, and Bank m.y make proof or proot. of 10.. on beh.lf of Mortg.gor .nd any adju.tment of . proot of los. shall require the prior written con.ent of B.nk. Each in.urance company conc.rned i. hereby authorized and direct.d to m.ke p.yment under such in.ur.nc., including r.turn ot unearned premium., directly to Senk in.t.ad ot to Mortg.gor and B.nk jointly, and Mortgagor hereby appoint. B.nk, irr.vocably, a. Mortgagor's attorney-in-fact to endor.e any dr.ft ther.for. Bank sh.ll have the right in it. .01. .nd ab.olut. di.cr.tion to retain and apply the proc.ed. of any .uch insuranc., at its election, to reduction of the Obligation., or to re.toration or repair of the prop.rty damag.d. Such policies of insuranc. and all ren.wals ther.of are h.reby a..igned to Bank. as additional .ecurity tor payment of the Obligation. and Mortgagor hereby agree. that att.r an Event of Oltault h.reunder any v.lue~ available th.reund.r upon cancellation or termin.tion of any of s.id policies or renewal., whether in the form of r.turn of premium. or otherwi.e, .hall be payable to B.nk .. as.ign.. thereof. If Bank b.come. the owner of the Mortgaged prop.rty or .ny p.rt thereot by foreclosure or otherwi.., such policie., including .11 right, title .nd int.r..t of Mortg.gor thereunder, shall b.co.. the ab.olut. property of Bank. 5. Tax.. and Other Chara... (.) Mortgagor .hall p.y or cau.e to be p.id wh.n due and payable .nd be for. interest or p.n.ltie. ar. due th.r.on, without any deduction, d.f.lcation or .bat.ment, all tax.. of any kind what.oever (inclUding .11 r..l and per.onal prop.rty, in- co.e, franchi.., profit., s.l.., u.., incom., gro.. r.c.ipt. and withholding t.xe.), gen.r.l .nd .p.ci.l ........nt., water and ..Ver rent., levie., encumbr.nc.., p.rmit., licen.e and in.pec- tion f.e., .nd .ll other ch.rg.. or cl.ia. of every n.tur. and kind which may b. .......d, l.vi.d, impo.ed, .uff.red, plac.d or filed at .ny time .gain.t Mortg.gor or the Mortgag.d Prop.rty or any part th.r.of or again.t the int.r..t. of Bank in the Mort- gaged Prop.rty, which by .ny pr...nt or future law .ay have priority ov.r the Oblig.tion. .ith.r in li.n or in di.tribution out of the proc.ed. of .ny judicial ..1.; and Mortgagor .hall produce to B.nk, not l.t.r than .uch d.te., copi.. ot r.ceipt. (or other .videnc.) for the paym.nt th.r.ot. (b) SUbject to the right. ot prior lienholder., without limiting the g.n.rality of .ny of the tor.going, Mortgagor .hall on Bank'. requ..t pay to Sank aonthly, on the fir.t day ot every month, an .mount equal to 1/12 of the annual pre.iu.. for .uch tire and ext.nd.d cove rag. in.uranca and such annual r..l e.t.te t.x.., w.t.r r.nt., ..w.r rents, Ipacial -7- b~O~ lObO PAC, 4 7~ -, ..,1> _c aa......nt., .nd any oth.r tax, ........nt, claim, li.n or encu.branc. which .ay at any time b. or b.com. a li.n upon the Mortgag.d Prop.rty prior to the li.n of thia Mortgag., and on de.and fro. time to time sh.ll pay to Bank all addition.l .u.. .. Bank in it. di.cr.tion .ay d... n.c.aaary to pay such pr..ium. and oth.r paym.nt., the a.ounts so paid to be security tor such pr..ium. .nd other paym.nts and to b. u.ed in paym.nts th.r.of. No amount so paid .hall b. d....d to b. truat funde but ..y b. commingl.d with g.n.ral fund. of Bank, and no int.r..t sh.ll b. payable th.r.on. If, pur.uant to any provision of this Mortgeg., the whole a.ount of the Obligations b.co..s due and pay.ble, B.nk shall have the right at it. el.ction to apply any a.ount. so h.ld aqainet the entire ind.btedne.. secured h.reby. 6. CO.Dliance with Law and Reaulation.. Mortgagor shall co.ply with all law., ordinances, r.gulations and ord.r. now or hereaft.r in .ff.ct of all t.d.ral, at.t., municip.l .nd oth.r gov.rnm.ntal authoriti.. r.lating to the Mortgaged prop.rty. 7. InsD.ction. Bank and any p.r.ons authorized by Bank ahall have the right at .ny ti.. and tro. ti.. to tim., to .nt.r the pr..i... to in.p.ct and photograph it. condition and .t.t. of repair and the Mortgag.d Prop.rty and the record. of Mortgagor with r..p.ct th.r.to. 8. D.claration of No Set-Off. Within on. (1) w..k aft.r requ..ted to do .0 by Bank, Mortgagor .hall c.rtify to Bank or to any a..ign.. or propos.d a..ign.e of this Mortgag., in writing duly acknowl.dg.d, the a.ount of principal, inter..t and oth.r charge. th.n oWing on the Obligation. and on any Obligation. secured by prior li.ns upon the Mortg.ged Prop.rty, if any, and whether th.r. are any s.t-ott. or d.t.n... again.t th... 9. S.curitv Aar....nt. Thi. Mortg.qe constitut.s a aecurity .gr....nt und.r the Uniform Co...rcial Cod. and Mort- gagor hereby grant. Bank . li.n on .nd a security inter..t in all p.r.onal prop.rty of Mortgagor now or her.att.r in.talled in or attach.d to, in or upon the Mortgag.d Property, inoluding without li.itation, all .quipa.nt, furnitur., machin.ry, and fixtur.s, vh.th.r now owned or h.r.att.r .cquired, only in the .vent that such p.r.onal prop.rty i. or .hall be atfix.d to the Mort9a.ed Property tog.th.r with .11 r.plac...nt. and .ubetitution. th.refor, .nd addition. th.reto and ca.h and non-cash proce.d. (including in.uranc. proce.d. .nd proce.d. ot proc.ed.) tberaof. Mortgagor .hall .x.cut., d.liv.r, tila and r.fil. any financinq state..nts, continuation atat...nt., or oth.r .ecurity aqr....nt. Bank may r.quir. fro. ti.e to ti.. to contirm the lien ot thi. Mortgage with r..p.ct to .uch property. Without li.itin, the tor.going, Mortgagor h.r.by irr.vocably appoints lank attor- ney-in-tact tor Mortgagor to .x.cut., d.liver and tile such in- -1- wo" lObO uc[ 480 "1, -. .trum.nt. for and on b.half ot Mortgagor. Mortg.gor shall not chanq. it. chi.f .xecutiv. ottic. without givinq Bank at l...t thirty (30) day. prior written notic. th.r.of, which notic. .hall be accoapani.d by n.w financing .tat...nt. .x.cut.d by Mortgagor in the .a.. for. a. the tinancing .tate..nt. deliv.r.d to Bank on the d.t. h.r.of .xc.pt for the ch.ng. ot addre... Upon .ny default or Ev.nt of Default h.r.und.r or und.r any of the Financing Agr....nt., B.nk .hall h.v., in addition to any other right. and r...di.. h.r.und.r or und.r said Financing Agr....nt., allot the right. and r...di.. gr.nt.d a s.cured party und.r the Unitorm Comm.rcial Cod. with r..p.ct to .11 p.r.onal prop.rty. Notwith.tanding any r.l.... ot any or all of the prop.rty in- clud.d in the Mortgag.d Prop.rty which i. d..med "r.al prop.rty", any proc..dings to for.clo.e this Mortgag. or its satisfaction of record, the t.rms her.of .hall survive a. a .ecurity agr....nt with r..p.ct to the s.curity int.r..t cr.ated her.by and r.ferr.d to above until the r.paym.nt or satisfaction in full of the Obli- gation. of Mortgagor. 10. Financial statement.. Mortgagor shall furni.h to Sank such data and information (tinancial and oth.rwis.) as may be r.quir.d pursuant to the term. and condition. of the Financing Agree.ents. 11. Reauir.d Notic... Mortgagor .hall notify Bank pro.ptly of the occurr.nce of any ot the tollowing: (s) a tire or oth.r mat.rial ca.u.lty causing da.ag. to all or .ny part of the Mortgag.d prop.rty; (b) rec.ipt of notice of e.inent domain proc..ding. or condemnation of all or any part of the Mortg.q.d prop.rty; (c) r.ceipt of notic. frOB any governmental authority r.lating to the .tructur., u.. or occup.ncy ot the Mortgag.d prop.rty; (d) r.ceipt ot any notic. troa any t.nant of all or any portion ot the Mortgag.d Prop.rty or any 1..... ot any of the Mortgag.d Prop.rty relating to occupancy or the paym.nt ot rent or any br.ach of a l.a.. for the Mortgaq.d prop.rty; (.) a chang. in the occupancy of the Mortqag.d prop.rty; or (f) comm.nc.m.nt of any litigation aff.cting the Mortgag.d Prop.rty. 12. Cond.mnation. -,- bOO' lO~O PA~, ~81 -. (a) Subj.ct to the right8 ot prior lienholders, in the .vent of any cond..nation or taking ot any part of the Mortgaged Prop.rty by .minent do.ain, alt.ration of the grade ot any .tr..t, or other injury to or d.cr.a.. in the value ot the Mortgag.d prop.rty by any public or quasi-public authority or corporation, .xorcising the power ot eminent domain or oth.rwis., all proc.ed. (that i., the award or agre.d compensation for the damaq.. sustained) allocabl. to Mortgagor, atter d.ducting ther.from all co.t. and expens.. (r.gardl... ot the particular natura th.r.ot and wh.th.r incurr.d with or without suit) includ- ing attorn.y'. te.. incurr.d by Bank in connection with the coll.ction ot such proceeds, shall b. paid over to Bank and appli.d tir.t tJ paym.nt ot the Obligation.. No settlement for dallage. sustain.d .hall b. mad. by Mortqagor without Bank'. prior writt.n approval, which approval shall not be unreasonably withheld. R.ceipt by Bank ot any proc..d. les. than the full amount ot the th.n outstanding balance of the Obligation. shall not alt.r or .odify Mortgagor's obligation. for the install.ent. ot principal, int.r.st and oth.r charg.s .p.cified in the Not.. and the Financing Agr....nt.. All proc..d. so paid to or rec.iv.d by Bank 8hall b. applied in the ordlr and in the amount. that Bank, in Bank'8 .ole discretion, may elect, to the paym.nt ot principal (wh.ther or not then due and payable), inter.st, any SUII. ..cur.d by this Mortgag., or toward paymlnt, atter the ator..aid d.ductions, to Mortgagor, on such term. as Bank may .pecify, to b. u..d for the 80le purpo.. of alt.ring, r.storing or r.building any part ot the Mortgaged Property which may have b.en alter.d, damaged or d.stroyed a. a re.ult of the takinq, alt.ration of grad. or oth.r injury to the Mortgaged prop.rty. (b) It prior to the recsipt of the proc.ed. by Bank the Mortgag.d Prop.rty 8hall have be.n 80ld on for.clo.ure of this Mortgag., Bank .hall have the right to rec.iv. the proc..d. to the ext.nt of: (1) the full amount ot all auch proc.ed. it Bank ia the succe..tul purchas.r at the for.clo.ure sal.; or (ii) if anyone oth.r than Bank i. the .ucc...tul purcha..r at the tor.clo.ur. sal., any deficiency (as h.r.inaft.r dltin.d) due to Bank in conn.ction with the tor.cloaur. .al., with int.r..t th.r.on at the high..t rate thin payable on the Not.., and reasonable couns.l f..., cost. and di.bur....nt. incurr.d by Bank in connection with coll.ction of such proc..d. ot for.clo.ur. .ale and the ..tablishm.nt ot .uch d.ficiency. for purpos.. of this .ubparagraph, the word "d.tici.ncy" .hall be de...d to m.an the ditf.r.nc. b.tw..n (A) the net sal. proce.d. actually rec.iv.d by Bank a. a r..ult of .uch for.clo.ur. .al. la.. any co.t. and .xp.n... (includinq attorney.' t...) incurr.d by Bank in conn.ction with .nforc.m.nt of its rights und.r the -10- ~~O~ 1080 rACE ~82 _c Not.., the Financing Agr...ents and thia Mortgag. and (B) the aggr.gat. a.oun~ of all su.. which Bank i. entitl.d to coll.ct und.r the Not.., the Financing Agr...ent. and this Mortgag.. (c) Bank shall have the right to pro..cut. to tinal d.t.rmination or s.ttl...nt an app.al or other appropriate proc..dings in the na.. of Bank or Mortgagor, tor which Bank i. h.reby appoint.d irr.vocably a. attorney-in-tact tor Mortgagor, which appoint..nt, b.ing for ..curity, is irrevocabl.. In such ev.nt, the .xp.ns.. of the proc..dings, including r.asonable coun..l f..., .hall b. paid fir.t out ot the proc..ds, and only the .xc..., if any, paid to Bank shall b. credited again.t the a.ount. due und.r the Mortgag.. (d) Nothing h.r.in shall limit the rights otherwise available to Bank, at law or in equity, including the right to interv.n. a. a party to any cond.mnation proceading. 13. Mor~aaa.. and Li.n.. (a) Oth.r than as s.t forth on the information c.rtificat. a. ot the date h.r.of, without the prior writt.n con..nt of Bank, Mortgagor will not voluntarily cr.at. or p.rmit to b. cr.at.d or filed against the pr.mi..., any mortgage li.n or other lien or ..curity int.r..t inf.rior or sup.rior to the li.n of this Mortgag.. (b) Mortgagor will k..p and maintain the Mortgag.d Prop.rty fr.. fro. the claim. of all p.raon. aupplying labor or mat.rial. in connection with the construction, r.con.truction, r.habilitation or alt.ration of any or all building. and i.prov...nt. which are now or h.r.aft.r may b. er.ct.d upon the Mortgag.d Prop.rty, notwith.tanding by whom .uch labor or .at.rial. .ay b. have b.en contract.d. 14. L...... (a) Mortgagor h.r.by r.pr...nts that th.r. are no l.a..., .ubl.a... or agr....nt. to lea.. all or any part of Mort- gag.d Prop.rty now in .ft.ct .xc.pt tho.e li.ted on Exhibit "B- attach.d h.r.to and incorporat.d h.r.in. Mortgagor agre.. not to .nter into any lea... or agr....nt. to lea.. all or any part ot the Mortgag.d Prop.rty without the prior written cons.nt ot Bank. (b) Mortgagor h.reby a..ign. to Sank and grant. Bank a li.n on and ..curity inter..t in and to all prea.nt and future 1..... and allot Mortgagor'. right to rec.ive paym.nt. und.r any exi.ting and future l.a... of the Mortgag.d Prop.rty or any portion th.r.of including the r.nt., r.ceipt., i..ue., protit. and oth.r incom. ot any and all kind. (including d.po.its) -11- ~~odObO r~St 483 -. rec.ived or r.c.ivabl. by Mortgagor due or to become dUe fro. the .al. or l.a.. of any property, gooo. or .aterial. or tro. the r.nd.ring of ..rvic.. ot any n.tur. including, without li.itation the occupancy, lic.n.., r.nt.l or l.a.. of any part ot the Mortgag.d Prop.rty or the op.ration of any income facility on Mortqag.d Prop.rty, a. furth.r s.curity tor the paym.nt of the Obligation.. Mortgagor grant. to Bank the right to .nter upon and take po.....ion of the Mortgag.d Property tor the purpo.. of coll.cting the .a.. and to l.t or r.let th. Mortgag.d Prop.rty or .ny part th.r.ot, and to apply the r.nt., i..u.e, rec.ipts, profit. and other inco.. of any and all kind. (includinq d.po.it.) or .ny oth.r a.ounts r.c.iv.d or r.c.iv.bl. by Mortgaqor, due or to b.com. due fro. the sale or l.a.. ot any prop.rty, good. or m.t.rials or fro. the r.nd.ring of s.rvice. of any netur. inclUding, without limitation the occupancy, lic.n.., r.ntal or 1.... of any part ot the Mortgaqed l'rop.rty or the oper.tion of any incom. tacility on the Mortgaged Prop.rty, .fter paym.nt of all nec.ssary charqe. and .xp.na.., on account of the Obligation.. This a..ignment and grant sh.ll continu. in .ft.ct until all the Obligation. are paid and p.rtorm.d in full. Notwith.tanding the foregoing, so long a. no Event of D.fault ha. occurred, Mortgagor is authoriz.d to collect and r.c.ive .aid r.nts, rec.ipt., i..ue., profit. and oth.r income which .uthorization shall c.a.. imm.diat.ly upon the occurr.nc. of the Event of O.f.ult. Mortgagor agr... to u.. .uch r.nt., r.c.ipt., i..u.., profit. and oth.r incom. in paym.nt of the Obliqation. and in paym.nt of tax.., a.......nt., ..w.r and water r.nt., and carrying charg.. co.ing due ag.inst the Mortgaged Prop.rty. Ev.n prior to the occurr.nc. of an Ev.nt of O.f.ult, Mortgagor will not, without the written consent of the Bank, rec.iv. or coll.ct r.nt or oth.r amounts fro. any t.n.nt of the Mortgag.d Prop.rty or any part th.reof for a p.riod of .or. than one month in advance. 15. Modification of Mortaaa.. Bank may, at any ti.. and from ti.. to tim.: r.n.w or .xt.nd this Mortg.qe; waive any of the term., cov.nant. or condition. her.of, of the Not.., or ot the Financing Agr....nt., in whole or in part; r.l.a.. any portion of the Mortgag.d Prop.rty or any other ..curity; r.l.a.., sub.titut. or .dd any oth.r p.rty liable h.reund.r or und.r the Not.., or the Financing Agr....nt.; and grant such ext.n.ions and indulgenc.. in rel.tion to the Obligation. ..cured h.reby a. Sank .ay det.rmin., all without the con..nt ot Mortqagor and without .ny obligation to give notic. ot any kind th.r.to to Mortgagor o~ oth.rs and without, in any mann.r, aff.cting the liabiliti.. and obligation. of Mortgagor on the Obligation., and the prio~ity of the li.n h.r.of on all or any part of the Mortgag.d 'rop.~ty. 16. No Transf.r. Without the prior writtan con.ent of Bank, which B.nk in it. sol. diacretion may withhold, Mortga,or -J.2- BOOK 1O~(J PAGe ~B4 _c will ab.tain trom and will not cau.. or permit, to the .xt.nt it may do so, any tran.t.r of legal or .quitabl. title to, b.n.- ficial int.r..t in, or any ..tate or int.r..t in the Mortiag.d Prop.rtyor any part th.r.of, or ~f oth.r inter..t. in the Mort- gai.d Prop.rty, voluntarily or by op.ration of law (oth.r than by d.ath or by .x.cution or foreclo.ur. und.r this Mortgag. or by .x.rci.e of the pow.r of .min.nt domain), wh.th.r by .al., .xchange, l.a.., conv.yanc~, m.rg.r, con.olidation or the grantini of any li.n or s.curity int.r..t or oth.rwis., or any agr....nt to do any of the for.going. In the .v.nt that an att..pt to do or con..nt to any of the for.going with r..p.ct to all or any portion of the Mortgag.d Property occurs, the Obli- gation. .hall imm.diat.ly b.com. due and payable. 17. Bank'. Riaht to R.m.dv D.fault.. Mortgagor .hall pay or cau.e to be paid, from time to time a. and when the .a.. .hall b.coa. due, all clai.. and d..and. of any p.r.ons or .ntiti.. which, if unpaid, might re.ult in or p.rmit the cr.ation ot a li.n on the Mortgag.d Prop.rty or any part th.r.of, and .hall do or caus. to b. don. any and all thing. which may be n.c...ary .0 that the li.n of thi. Mortgag. .hall be fully pre..rv.d and .0 th.t th.r.. .hall not b. cr.at.d, p.rmitt.d or .utt.r.d to .xi.t any lien, .ncumbranc. or charge aff.cting the Mortgag.d Prop.rty oth.r than tho.. approv.d in writing by Bank, all at the .ol. co.t ot Mortiagor. If Mortgagor .hould fail to pay r.al ..tat. or oth.r tax.., a.......nt., wat.r and ..w.r r.nt., charg.. and clai.., .ua. due und.r any prior li.n, or in.uranc. pr..ium., or fail to mak. n.c...ary r.pairs, or p.rmit wa.t., or fail to cure any detault und.r any prior lien, Bank, at it. .l.ction, on .uch notice to Mortgagor a. may b. r.a.onabl. und.r th.n-.xtant circulI.tanc.., .hall have the right but not the obliqation to make any paym.nt or .xp.nditur. and to taka any action which Mortgagor .hould have .ad. or tak.n, or which Bank d.... n.c...ary or advi.abl. to protect the ..curity of this Mortga.. and the Mortgaq.d Prop.rty, without pr.judice to any ot Bank'. right. or r..edi.. available her.und.r or oth.rwi.., at law or in .quity. All .uch .um., a. w.ll a. cost., advanc.d by Bank pur.uant to this Mortgag. .hall b. due imm.diately froa Mortgaqor to Bank, .hall b. add.d to the obliqation. ..cur.d h.r.by and the li.n ther.tor .hall r.lat. back to the data ot thi. Mortgaq., and .hall bear int.r..t at a rate which .hall be the d.fault rat. of int.r..t .p.cifi.d in the Note. fro. the data ot paym.nt by ..nk until the data ot r.paym.nt. 18. Environm.ntal R.ar...ntation.. Warrant!.. aDd Covenant.. Mortgagor r.pr..ent., warrant. and covenant.r (a) ComDlianc. with Law. -"3- ~~o~ lObO ~ACt 485 _c (i) To the b..t of Mortgaqor's knowl.dg. (art.r due inquiry and inv.stigation), Mortgagor r.pr..ent. and warrant. that th.r. is no activity at the pr..i... which ha. b..n conduct.d by Borrow.r., or i. b.ing conduct.d, except in complianc. with (or which ha. b..n r.m.diat.d in accordanc. with) all .tatut.., ordinance., rogulation., ord.r. and r.quir.m.nt. of coamon law conc.rning (A) those activiti.., (8) r.pair. or con.truction ot any improv.m.nt., (C) handlinq ot any mat.rial., (D) di.charges to the air, soil, .urfac. vater or ground wat.r and (2) .torag., treatm.nt or dispo.al of any wa.t. at or connlct.d with any activity at the premi... ("Environm.ntal statute.") . (ii) Mortgagor shall cau.. all activities at the premi... to b. conducted in complianc. with all Environm.ntal statut... Mortgagor shall caus. all p.rmits, lic.nees or approval. to b. obtain.d, and shall cau.. all notification. to be .ad., a. r.quir.d by Environm.ntal statut.s. Mortqagor shall, at all tim.., cau.e complianc. with the t.rm8 and conditions of any such approvals or notification.. (iii) Mortgagor shall, upon r.ceipt thereof, provide to Bank copies of: (A) application. or other materials lubmittad to any gov.rnm.ntal ag.ncy in cQmplianc. with Environm.ntal statut..; (B) any notification. submitt.d to any p.r.on pursuant to Environm.ntal statut..; (e) any p.rmit, lic.n.e, approval, a..nda.nt or moditication th.reto grant.d pur.uant to Environm.ntal statut..; (D) any r.cord or .anife.t r.quir.d to be maintain.d pur.uant to Environmental statut..; and (E) any corr..pond.nc., notic. of violation, sumaon., order, complaint or oth.r docum.nt r.c.iv.d by Mortgagor, it. 1......, .ubl...... or a..ign., p.rtaining to complianc. with any Environm.ntal Statute.. (b) site Contamination. (i) To the b..t of Mortgaqor'. knowl.dg. (att.r due inquiry and inv..tigation), Mortgagor r.pra.ent. end warrant. the ab..nc. of contamination on or in the Mortqaged Prop.rty. Mortgagor shall not p.rmit contamination of Mortga,.d Prop.rty by hazardous .ub.tanc... Mortgagor .hall, at all time. c.u~. -It- ~OQ; 1080 rAt( 488 _c hazardous .ub.tances to be handled on the Premises in a manner which vill not caus. an undue risk of contamination ot the Mortgag.d Property. (ii) For purpo... of this s.ction, the term "conta.ination" shall m.an the uncontain.d presence ot hazardous substances at the pr..is.., or arising trom the Premis.s, which may r~quir. r.mediation und.r any applicabl. law. (iii) For purposes of this section, "hazardous substances" shall m.alt "hazardou. sub.tanc.s" as defined pursuant to the Compr.h.nsive Environm.ntal R..pons., Compensation and Liability Act, 42 U.S.C. 55 9601-9657, a. am.nded ~~ the Sup.rtund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499, 100 Stat. 1613 (Oct. 17, 1986), "1'.gulated substances" within the m.aning of subtitle I of the R.source Conservation and Recovery Act, 42 U.S.C. SS 6991-6991i, a. amended bv the Supertund Am.ndm.nt. and R.authorization Act ot 1986, Pub. L. No. 99-499, 100 Stat. 1613 (Oct. 17, 1986), and "hazardous wa.t.." a. defined pursuant to the P.nnsylvania Solid Waete Management Act, Pa. Stat. Ann. tit. 35, 556018.101 to .1003 (Purdon Supp. 1987), or any oth.r substances which may be the subject of liability pursuant to S.ctions 316 or 401 of the Pennsylvania Clean Str.a.. Law, Pa. Stat. Ann. tit. 35, 55 691.1 to .1001 (Purdon 1977 and Supp.1987). (c) Other Hazardou. or Toxic Materials. To the b.st of Mortgagor'. knowl.dg. (aft.r due inquiry and investigation), Mortgagor repr.sents and warrants that th.re are no polychlorinat.d biphenyls or sub.tanc.s containing polychlorinat.d biph.nyls pr..ent on or in the Premises; asb..to. or .at.rial. containing asb..to. pre..nt on or in the pr..is.s; Qr urea formald.hyd. form insulation on or in the Premi.... (d) Environmentallv S.n.itiv. Area.. To the best of Mortgagor's knowledge (aft.r due inquiry and investigation), Mortgagor repr.s.nt. and warrant. that no portion of the Premis.. con.titute. any of the following "Environmentally Sensitive Area.": (i) a w.tland or oth.r "water of the Unit.d Stat.... f.or purpos.. Qf Section 404 of the fed.ral Clean Wat.r Act, 33 U.S.C. S 1344, or any similar ar.a regulated under any stat. law; (ii) a floodplain or oth.r tlood hazard area as defined pursuant to the Pennsylvania Flood Plain Manag.m.nt Act, Pa. Stat. Ann. tit. 32, 51 679.101 to .601 (Purdon Supp. 1987); (Hi) a portion ot the coastal zone for purpo.e. of the t.deral Coastal Zone Manage.ent Act, 16 U.S.C. 55 1451-1464; or (iv) any other ar.a develop.ent ot which i. sp.cifically r..tricted und.r applicable law by reason of its physical charact.ristics or prior u... -11;- ~JC~ 1O~(J i'AG~ 487 ~ -. (.) ~don. To the be.t of Mortgagor's knowledge (atter due inquiry and inv.stigation), Mortgagor r.pre.ent. and warrant. that there is no inv..tigation ot the pr.mia.. being conduct.d tor the pr.sence ot radon ga. or the pr.s.nc. ot the radioactiv. d.cay products ot radon. Mortgagor shall cau.e all con.truction ot n.w structur.a on the pr.mis.. to use de.ign f.ature. which sat.guard against or mitigate the accum1llation of radon or radon-product. in conc.ntration. .xc.eding an acceptable level in any such n.w .tructur.. At the earlie.t feasible time during or aft.r construction of any new .tructure on the Pre.is.., Mortgagor shall commis.ion all inve.tigation of .uch n.w structure tor the pres.nc. ot radon or radon-products and shall provide a r.port of such inveatigation to Bank. For purpo... of this paragraph, "acc.ptable lev.l" shall m.an the lowest applicabl. maximum conc.ntration e.tabli.h.d by any governmental ag.ncy with jurisdiction over the premis... In the abs.nc. of a legally binding maximum concentration, the "acceptabl. l.v.l" shall b. an air conc.ntration of 4 picocurie./liter. (f) Tank.. To the best of Mortgagor's knowledge (after due inquiry and inve.tigation), Mortqagor repres.nts and warrant. that there are no tank. presently or tormerly u..d for the storage ot any liquid or ga. above or below ground pr..ent on the pr.mi... .xc.pt as d..cribed on Exhibit "C," attach.d hereto, incorporat.d her.in by this r.f.renc. and h.r.by mad. a part her.ot. Mortgagor .hall n.ith.r in.tall nor permit to be in.talled any t.mporary or p.rman.nt tank. for the .torage of any liquid or ga. above or b.low ground exc.pt as in complianc. with the oth.r provi.ion. of this section and after obtaining writt.n permi..ion to do 80 from Bank. 19. Environmental Investiaation.. (a) Upon the occurrence of an Ev.nt ot Default, Bank may, at it. di.cretion, commis.ion an inv..tigation at Mortgagor's .xp.n.. of (i) complianc. at the Premises with Environm.ntal Statut.., (ii) the pr..enc. ot hazardous .ub.tance. or contamination in the Mortgaged Property, (iii) the pr...nc. in the Mortgag.d Property of mat.rial. which are the aubject ot Paragraph 11(c), (iv) the pr...nce at the premi.e. of Environmentally Sen.itiv. Area. which are the subj.ct of paragraph 11(d), (v) the pr...nc. at the pr.mise. of radon-products, or (vi) the pr...nce on the premi.e. ot tank. which are the subject of Paragraph 11(f). (b) In conn.ction with any inv..tigation pur.uant to subparagraph (a) ot this Paragraph 19, Mortgagor, its 1......, .ubl..e... and a..ign., shall comply with any rea.onabl. r.qu..t for intormation made by Bank or it. ag.nt. in connection with any such inv..tigation. Mortgagor r.pr...nt. and warrant. that any -u- :~~. WhO '.\:, 488 --. re.pon.e to any such requ.st for information will b. tull and complete. (c) Mortgagor will a..ist Bank and it. ag.nt. in obtaining any r.cord. p.rtaining to the Mortgaged Prop.rty or to Mortqagor and the le.s..., subl....e. or a.signs of Mortgagor in connection with an inv..tigation pur.uant to Subparagraph (a) ot this Paragraph 19. (d) Mortgagor will accord Bank and it. ag.nts acce.. to all areas of the Mortgaq.d Prop.rty at r.asonabl. tim.. and in rea.onable mann.rs in connection with any inv.stigation pursuant to Subparagraph (a) of this Paragraph 19. (.) No inv.stigation commi..ion.d pursuant to this paragraph .hall have any .ff.ct upon the repr.s.ntations or warranties .ad. by Mortgagor to Bank in this Mortgag.. ~O. Indemnitication. Mortgagor h.r.by agr... to ind.mnity and to hold harml.s. Bank of, from and again.t any and all exp.nle., lo.s or liability 8utf.red by Mortgagee by r.ason of Mort~agor'. breach of any of the provision. of this Mortgag. including, without limitation: (a) Any and all exp.nse. that Bank may incur in complying with any Environmental statu..; (b) Any and all cost. that Bank may incur in .tudying or remedying any contamination of the Mortgaged Prop.rty; (c) Any and all fin.., p.nalti.. or oth.r .anction. (including a voiding of any tran.f.r ot the Mortgag.d Prop.rty) re.ulting from the tailure of Mortgagor to have compli.d with Environmental Statut.s; and (d) Any and all l.gal and prof...ional t... and co.t. incurred by Bank in conn.ction with the tor.going. Thi. indemnitication .hall .urvive paym.nt of the Not... ~1. Event. of Default. Anyon. or mora of the followin9 .v.nt. shall con.titut. an Ev.nt of D.tault h.r.und.r: (a) Failur. of Borrow.r. to make any paym.nt of principal or int.r.st or any oth.r .UII in accordanc. with the t.rm. ot the Not.. or the oth.r Financing Agr....nt. within applicable grac. p.riods; (b) Mortgagor'. nonperformance ot or nonco.pliance in any material r..p.ct with any oth.r agr....nt., condition., covenant., provi.ion. or .tipulation. contain.d in the Not.. or -17- ~JO~ 1tJ~O rA':t i~~ _c the Financing Agreements, not cured after any applicable notices and within applicable grace periods, if any, or Mortgagor's nonpertormance or noncompliance with any ot the agreements, conditions, covenants, provisions or stipulations contained in this Mortgage or any other agreement between Mortgagor and Bank, provided such nonperformance or noncompliance continuee tor a period of thirty (30) days trom the date ot Bank's notice to Mortgagor of such nonpertormance or noncompliance; (c) Any signature, statement, representation or warranty made in the Notes, the Financing Agreements or this Mortgaqe, or in any tinancial state.ent, certificate, applica- tion, request lOr other document furnished to Bank by Mortgagor at any tille prior to, now or hereatter, is not true and correct in any material respect when made or delivered; (d) The occurrence ot any Event of Oetault under any of the Financing Agreements; (e) The transfer or sale (except in the ordinary course of business) of any part of the Mortgaged Property or any intereat therein, including, without limitation, the acts of transter described in Paragraph 16 above, without the Bank's prior written consent; or (f) Receipt by Bank ot a notice trom Mortgagor pursuant to Subparagraph 27(b) ot this Mortgage or receipt by Bank ot any notice pursuant to 42 Pa.C.S.A. S 8143(b) and (d). 22. Remedies of Bank. (a) Upon the happening of any Event of Default, the entire unpaid balance of the Obligations, including interest as has accrued thereon, and all other suas .ecured by this Mortgaqe shall become immediately due and payable, at the option ot Bank, without notice to or demand upon Mortgagor or any other person. (b) When the Obligations shall become due and payable, either because of maturity or because of acceleration upon the occurrence of any Event of Default, or otherwise, then torthwith in addition to all other rights or reaedie. available under the Financing Agreements, at law or in equity: (i) Foreclosure. Bank may institute an action to foreclo.e upon this Mortgage by issuance of a co.plaint, or as, take such other action at law or in equity tor the enforceaent of this Mortgage and realization on the .ortgage security or Iny other security herein or elsewhere provided for, II the law as, allow, and may proceed therein to final judgment, execution and sale for the collection of the entire unpaid balance of the -11- ~vG/ lObO rASt iOO .-.' _c Obligation., with int.r..t th.reon at the th.n applicabl. rat. stipulat.d in the Not.. to the date of d.tault, and th.reafter until paym.nt in full i. r.c.ived by Bank at a rat. which sh.ll b. the d.fault rat. of int.r.st sp.cifi.d in the Not.., which Obligation. .hall includ. all oth.r .um. du. from Mortgagor to Bank in .ccordanc. with the provision. of the Notes, the Financing Agr.e..nt. and this Mortgage, including all su.. which m.y have b..n advanc.d by Bank to Mortgagor aft.r the date ot this Mortgag., and all sums which .ay have b..n advanc.d by Bank tor t.xe., wat.r or ..w.r r.nts, charg.. or claims, payments on prior lien., in.uranc. or repairs to the pre.is.., all coat. of .uit, and togeth.r with Bank's rea.onabl. attorney'. collection f..; and (ii) Possession. Bank may peaceably and qui.tly .nt.r upon, h.v., hold, u.., occupy, po....., rent and oth.rwis. .njoy the Mortg.g.d Property, with or without legal action and by forc. it n.c....ry; collect th.r.fro. all rents, issu.s and profit. th.r.ot (whiCh t.rm shall al.o includ. .UII. pay.bl. for u.. and occupation (of oth.r than Mortgagor) and wheth.r or not B.nk tak.. po....sion of the Mortgaged property) and, after d.ducting all costs ot coll.ction and admini.tration, apply the n.t r.ntal., is.u.. and protit. to any or all of the following in .uch order and a.ount. a. Bank, in Bank'. sol. di.cr.tion, .ay .l.ct: the paym.nt of any sum. due und.r any prior li.n(.), tax.., vater and sew.r rents, ch.rg.., collection te.. and exp.n..., and to the .ainten.nc., r.pair or r..toration ot the Mortgaged Prop.rty; and on account of and in r.duction ot the Obligation. h.r.by s.cur.d. Bank shall b. liable to account only for r.nt., protits, royalties and oth.r amount. actually rec.iv.d by Bank. In and for th.t purpo.. Mortgagor h.r.by a..ign. to Bank all r.ntal., protit., royalti.. .nd other a.ount. r.ceivabl. due and to b.com. due und.r any lea.. or lea..., or lic.n.. or lic.ns.., or right. to u.. and occupy the Mortgag.d Prop.rty now .xi.ting or h.r..ft.r cr.ated, a. well a. all right. and r...di.. provid.d in such 1.... or 1..... or lic.n.. or licens.. or at law or in .quity for the coll.ction of r.ntal. and royalti... Sank .hall have the ab.olut. right to the appoint..nt ot a r.c.iv.r for the rent., is.u.. and proUt. of the Mortgag.d Prop.rty with pow.r to tak. po.....ion of the Mortgag.d prop.rty inClUding po.....ion fro. the Mortgagor, it in po.....ion ot and occupying .ny portion of the Mortgag.d Prop.rty, and pow.r to l.a.. and r.pair the Mortgag.d Property and .uch oth.r pow.r a. may be d....d nec...ary, without any con.id.ration of and tor the value of the Mortgag.d Prop.rty, or it. d.pr.ciation in v.lue fro. any cau.e what.o.v.r, or the solv.ncy of Mortgagor or ot any p.rson or p.r.on. liable for the paym.nt of the Notes or other .UII. due h.r.und.r or th.r.und.r or any d.fault und.r the term. ot the Not.., the Financing Agr..ment. or this Mortgage. \ , ' r I ! ,( , " -lS- I:;Q~ lO~O PAGE is! _c (c) Bank shall have the riynt, at any time and trom ti.. to time, to bring an appropriate action to recover any sum. required to b. paid by Mortgagor und.r the term. ot this Mortgag., a. the sa.e shall b.colI. du., without regard to wh.th.r or not any oth.r sum. secured by this Mortgag. shall then b. du., and without pr.judic. to the right of Bank thereatter to bring an action to foreclose on this Mortgag., or any other action tor any oth.r d.tault by Mortgagor .xisting at the time the earlier action wa. comm.nced. (d) Upon the occurrence of an Event of Oetault (or, in the cas. of an emergency thr.at.ning the Mortgag.d Prop.rty or Bank'. rights therein, the occurrence of an event which it uncured will constitute an Ev.nt of D.fault with the pas.ag. of till.), Bank may (but is not obligat.d to) pay any sum or p.rform any oth.r obligation tor the account of Mortgagor which Mortgagor ha. failed to payor perform, and sum. so spent by Bank .hall be add.d to the principal sum s.cured by this Mortgage and b. r.payable by Mortgagor on demand, and shall b.ar int.re.t trom the date of advance by Bank at a rat. which shall b. two p.rc.nt (2') higher than the then otherwise highest applicable rat. sp.cifi.d in the Notes until paid. (.) Any r.al estate, aold h.r.under or under the Financing Agre..ents or other judicial proc.eding. may b. .old in on. parcel a. an entity or in such parc.ls and in such order and manner a. Bank, in its sole discretion may .l.ct. (f) All deposit. held in conn.ction with the r.ntal, lea.., lic.nse or use of space or other facilities on the Mortgag.d Prop.rty at the ti.. ot the occurrence ot such Ev.nt ot Default, all int.rest of Mortgagor in all pre.ium. tor, or div- id.nd. upon, any in.urance for the Mortgag.d Property, and all r.fund. or rebat.. ot tax.. and a..ea.m.nt. upon the Mortgaged Prop.rty, are hereby ...ign.d to Bank a. further IIcurity for the paym.nt ot the Obligations during the continuance ot any .uch Ev.nt of D.fault. I' ~. 23. Writ of E1.ctment. In the ev.nt ot the occurr.nce of an Event ot Default, Mortgagor her.by authorize. and e.pow.r. the Cl.rk of Court or any attorn.y ot any court of r.cord in the Commonw.alth of P.nnsylvania or el..wh.r., a. attornay for the Mortgagor and all p.reon. claiming undel' or through the Mortvagor to .ign an agr....nt for enter ing in any co.p.tent court an a.icabl. action in ej.ctment for po.....ion of the MortgavecS Property which is the subj.ct of this Mortgag. and to app.ar for and conte.. jUdgm.nt again.t the Mortgagor, and again.t all p.rson. claiming und.r or through the Mortgagor, tor the recovery by the Bank of po....sion of the .a.e, without any .tay ot exe- cution, tor which this Mortgage or a copy thereot verified by (, -20- ~jO' lObO PAGE ~92 _c .ttidavit, .hall be .Ilffici.nt warrant; and thereupon a writ of po.....ion ..y b. i..U.d forthwith, without any prior writ or proc..ding what.oev.r. The Mortgagor h.reby r.lea... the Bank tro. all .rror. and def.ct. whatso.v.r in ent.rinq .uch action and jUdgm.nt and in cau.ing such writ or writs to b. i.sU.d and h.r.by agr... that no writ or error, app.al, petition to op.n strike-off jUdq'm.nt, or other objection .hall be til..d or .ad. with re.p.ct th.r.to. If, tor any r.a.on aft.r .uch action has b.en comm.nc.d, the sam. shall b. di.continu.d or pOs..ssion of the Mortgag.d Prop.rty which i. the .ubj.ct of this Mortgag. .hall r.main in or b. r..tor.d to the Mortgagor, the Bank shall have the right tor the same d.tault or any sub.equent default to bring on. or more further amicabl. action. a. above provided to r.cover po.....ion of the Mortgag.d Property which is the .ubj.ct of this Mortgag.. The Bank may bring such amicabl. action in .ject..nt b.tor. or aft.r the institution of for.clo.u~. pro- c.eding. upon this Mortgag., or aft.r jUdgm.nt th.r.on, or aft.r .ale of the Mortgag.d Property which is the sUbject of this Mortgag. by the Sh.riff. 24. Riahts and R.m.dies Cumulativ.. (a) The rights and rem.di.s of Bank a. provided in this Mortgag., in the Not.s, and in the Financinq Agr....nt. shall b. cu.ulativ. and concurr.nt; .ay be pursu.d separat.ly, .ucc...iv.ly or tog.th.r again.t Mortgaqor, against the Mortgag.d Property, or any oth.r per.on liable h.r.under or th.r.und.r, at the .01. di.cr.tion of Bank; and may b. exeroi.ed as ott.n a. occasion thereof shall aris.. The failure by Bank to .x.rci.. any .uch right or r..edy on on. or more occa.ions shall in no ev.nt b. con.trued as a waiv.r or releas. th.reot. (b) Any tailur. by Bank to in.i.t upon strict p.rtormanc. by Mortgagor of any of the t.rm. and provi.ion. of this Mortgag., the Not.. or the oth.r Financing Agr....nt. .hall not b. d....d to b. a waiv.r of any of the t.rm. or provi.ion. ot this Mortgag., the Not.. or the oth.r Financing Agree..nts, and Bank .hall have the right thereaft.r to insist upon strict p.rformanc. by Mortgagor of any and allot th... (c) N.ith.r Mortgagor nor any oth.r per.on now or h.r.att.r obligat.d for paym.nt of all or any part of the Obliga- tion. .hall be r.li.v.d of .uch obligation by r.a.on of the failure ot Bank to comply with any r.qu..t ot Mortgagor or of any other p.r.on .0 obligat.d to take action to foreclo.e on this Mortgage or to oth.rwi.. enforce any provi.ion ot the Mortgag., the Not.., or the Financing Agr....nt., or by rea.on ot the r.l...., r.gardl... of con.id.ration, of all or any part of the ..curity h.ld fQr the Obligation. ..cur.d by this Mortgag., or by r.a.on ot any agreem.nt or stipulation b.tw..n any .ub.equ.nt -21- cOO~ 101;0 r~GE i93 ...._c owner ot the Mortgag.d ~rop.rty and Bank .xtending the time ot payment or modifying the t.r.. ot the Mortgag., the Notes or the Financing Agr....nt. without first h.ving obtain.d the cona.nt of Mortgagor or .uch oth.r person; and in the latt.r ev.nt Mortgagor and all .uch oth.r per.on. shall continu. to b. liable to m.k. p.yment. according to the t.rm. ot .ny .uch .xten.ion or modification agr..m.nt, unl... expr...ly rel.as.d and di.charged in writing by Bank. (d) Bank m.y r.l..s., regardl... of consideration, any part of the a.curity h.ld tor the Obligations without, as to the re.ainder of the s.curity, in any way i.pairing or atfecting the li.n of this Mcrtgag. or its priority ov.r any subordinate li.n. (e) For paym.nt of the Obligation. Bank may resort to any other security th.r.for h.ld by Bank in .uch ord.r and .ann.r as Sank m.y .l.ct. (f) The r.c.ipt by Bank of any .um. from Mortgagor aft.r the date on which Bank, by r.ason of default, elects to accelerate the Obligation. s.cured h.r.by und.r the Notes, or the Financing Agr...ent., shall not constitut. a cure or waiv.r of such detault or . r.in.tat...nt ot the Not.a or Mortgage unl... B.nk expr...ly agr.e., by writt.n notic. to Mortgagor, that such payment .hall b. accept.d a. a cur. or w.iver of the default. 25. Mortaaaor's Waiv.r.. Mortgagor hereby waiv.s and r.l.a...: (a) All errors, defects, and impertections in any proce.ding in.titut.d by Bank under the Notes or this Mortgage and/or the Financing Agre.m.nts; (b) All b.n.fit. that .ight .ccru. to Mortgagor by virtue ot any pr...nt or future law .x.mpting the Mortgag.d property, or any part of the proc..d. ari.ing from any sal. th.reof, trom attach..nt, l.vy or sal. on .xecution, or providing for any .tay of .x.cution, .xemption trom civil proc... or ext.n- sion of ti.e for payment; and (c) Unle.. sp.citically requir.d herein, all notice. ot Mortgagor's d.fault or of Bank'. .lection to .xerci.., or Bank'. actual .x.rci.. of any option und.r the Not.. or this Mortgage. 26. Coun..l FG... It Bank b.co... a party to any .uit or proc.eding (inclUding, without limitation, app.llate .nd bank- ruptcy or other insolv.ncy proc..ding.) aff.cting the Mortgag.d Property, title th.r.to, the li.n cr.at.d by this Mortgag., or Bank'. intere.t ther.in, or it Bank .ngag.. coun.el to collect I, " " " i. : I ji I:' i, I';, '" il'll Ii -22- BOO' toM f'~GE 19i _c any ot the Obligations or to entorc. p.rformance of the agr...ent., conditions, warranties, cov.nants, provisions or stipulation. ot this Mortgage, the Note. or the Financing Agr...ent., Bank's costs, exp.nse. and rea.onable coun.el f..., wh.th.r or not suit is instituted, shall b. paid to Bank by Mortgagor, on demand, with interest at the then etf.ctiv. rat. ..t forth in the Not.., and until paid shall b. deemed to b. part of the Obligation. s.t forth in the Not.s and secur.d by this Mortgag. . 27. Futur. Advances. (a) Without limiting any oth.r provisions of this Mortgag., this Mortgag. s.cur.s pres.nt and future loan., advancee and .xt.nsions ot credit mad. by Bank to or for the b.n.fit of Mortgagor and the lien of such tuture advance. .hall r.late back to the date of this Mortgag.. Thi. Mortgage .hall al.o .ecure additional loans h.r.after mad. by Bank to Mortgagor. Nothing contained h.r.in shall impose any obligation on the part of Sank to make any such additional loan., advances and .xt.n.ion. of credit to or for the benetit of Mortgagor. (b) If Mortgagor sends a wx'itten notice to Bank which purport. to limit the indebtedness s.cur.d by this Mortgage and to r.le... the obligation of the Bank to make any additional advance. to Mortgagor, such notice shall b. in.ftectiv. a. to any future advanc.. mad.l (i) to pay tax.., a...s.m.nt., maint.nance chargee and in.urance pr.miums; (ii) co.ts incurrad for the prot.ction of the Mortgaged Prop.rty or the li.n of this Mortgage; (iii) expenses incurred by Bank by rea.on of the d.fault of Mortgagor and (iv) any oth.r co.ts incurred by Mortgagor to protect and pre..rv. the Mortgaged Property. It i. the int.ntion ot the partie. her.to that any such advanc. mad. by L.nder atter any such notic. by Mortgagor .hall b. secur.d by the lien ot this Mortgag. on the Mortgag.d Prop.rty. 28. Communication.. All communications r.quired und.r this Mortgag. .hall b. in writing, and shall b. ..nt by regist.r.d mail, po.ta,. pr.paid, r.turn r.c.ipt r.qu.st.d, or tel.graph, addr...ed, a. tollowing or to such oth.r addr... a. the addr..... .ay d..ignat. in writing in the mann.r provided hereinl -11- ~ood080 ~ALE i95 _c It to Mortgagor: Robert J. and Jean E. Colaizzi c/o Consolidated Insurance Group, Inc. 115 st. Johns Church Road camp Hill, PA 17011 with a copy to: Rhoads , Sinon Dauphin Bank Building/12th Floor One South Market Square P. O. Box 1146 Harri.burg, PA 17108-1146 Attention: Jack F. Hurley, Jr., Esquire If to Bank: CCNB Bank, N.A. 4242 Carlisle pike Camp Hill, PA 17001-8874 Attention: Thomas L. Achey, Vice President with copies to: Klehr, Harrison, Harvey, Branzburg , Ell.rs 1401 Walnut Street Philadelphia, PA 19102 Attention: Morton R. Branzburg, Esquire 29. Covenant Runhina with the Land. Any act or agreement to be done or pertormed by Mortgagor shall be construed. a. a covenant running with the land. 30. Entire Aareement. Thi. Mortgage and the exhibit. and documents delivered pursuant hereto and in connection herewith constitute the entire understanding of the parties to this Mortgag. with respect to its subject .atter, and super..de and replace all oth.r prior or contemporaneous agreem.nt.. Mortgagor aCknOWledge. that there are no under.tandings or agree..nt. with respect to the matters set torth herein that are not .pecitically .et forth in this Mortgage and such exhibits and document.. If any provision of this Mortgage shall be held to be invalid, il- lega! or unanforceabls, such provision. shall neverthele.. remain valid, legal and enforceable in all other respect. to ehe extent permissible; and any such invalidity, illegality or unenforce- ability shall not attect any other provi.ion of this Mortgaga, but ~his Mortgage shall be construed a. it such invalid, illegal or unentorclable provision had never been contained in this Mortgage. -at- ~uo' 1080 PAGE ~9G -' I I I I I, , , i' Ii" " , '~ i ,L '. 'i I l ' ,I \ ' \. , \ I , IlXHIBIT "A" ALL THAT CERTAIN lot of land Cumberland County, Pennsylvania, described as fOlloWI, to wit: BEING ALL of Lot No. 4~, Block 0, Plan 11, Pine Brook, which Plan is recorded in the Cumberland County Recorder's Office in Plan Book 20, paqe 89. situate in Hampden Township, more particularly bounded and HAVING THEREON erected a dwellinq house known and numbered as 421 Lamp Poet Lane. UNDER AND SuSJECT, NEVERTHELESS, to conditions, restrictions, ealem.nts, and rightl-of-way of record. BEING the .a.. pre.ise. which MARTHA MAJERAN, by har deed dated March 29, 1972 and recorded March 30, 1972 in the Oft ice of the Record.r of D.eds in and for Cumberland County, Pennsylvania, in Deed Book "Nil, Volume 25, Page 1052, granted and conveyed unto D. ROGER MEABON AND ELIZABETH J. MEABON, hi. wire, Grantors herein. I I i . . "" ~ ~"n~YIYllnj. } , ,,/ ':',I'nbe,'and SS .,." , ,,' :n :ne oHlce fort he recording of DIIde .....;.;;:~:'"......:' LJ..L,;, !":o',\dIoJPe"'~d County, el:, :." ", ".-- ' '!~, r L t..<g: k /.!1ZSUol, _ PII'JI';.J...J ~''',''',' -... .4"4""'"", ...,', '" mv hand lI,ld 'u' offici .... , , ,~ ,)J",-r" "" ,I':',:'"'.....,.~, "...~~'..r/,.~, Pi\. Ih" ' cuyof ,.' ~ !'-,vl .iT""' ...' .-,~;~'. ' 7.. ,~~ . "~' "",.:oF . JT~ ~ J" ~'." "'U~' -.. . p' .#-"', ..' 'l" , ., ~ ~". ^.... " ..' ft".. "'~, > '." ,("<-. ... ~ _"/f."',' '~. . ,. -" ... . ',./ .'..... 'f". .) ."....", ., ::-:" ~ ~ ,....' . . ," ..... ",.., I ;.c'/1080 FAGt 500 _c 31. Bindina Effect - Am.ndment. This Mortgage is binding upon and inur.s to the b.nefit of Mortgagor and Bank and th.ir r.sp.ctive successors and assigns. This Mortgaqe cannot b. chang.d or a..nded .xc.pt by agr..m.nt in writing sign.d by the party aqainst whom enforcem.nt of the chang. or am.ndm.nt is sought. 32. ADDlicabl. Law. Notwithstandinq the Stat. and/or ted.ral law which may apply to the rights and obligations of the parti.s to the Not.. and oth.r Financing Agr....nt., this Mortgag. shall b. govern.d by and construed according to the laws ot the Commonw.alth of P.nnsylvania. 33. C~ptions. Th. captions pr.c.ding the text of the paragraphs or subparagraphs of this Mortgag. are inserted only tor conv.nienc. or r.f.r.nc. and shall not constitute a part of this Mortgage, nor shall th.y in any way aftect its meaninq, construction or .ffect. IN WITNESS WHEREOF, the Mortgagor has executed and deliver.d this instrument the day and year tirst above written. This instrument is int.nd.d to constitute an instrument under s.al. WITNESS: /-' (J (fd ~ _. /~~/~_-c-- ~ /.~~-- i ~. c-v- , // ~ E. Cola .? Thl'Undersigned, being authorized to do so, hereby c.rtifies that the pr.cis. addr... of the within na..d mortgagee is 4243 Carli.l. Pike, Camp Hill, Pennsylvania 17001-8874. CCNB BAN1<, N.A. '.' -11- ~~O, 1080 PACE 497 '''''-'-.' , , '~/t.. ~ - ~ , " " ,.,1 ~ '--'\i ~ '.', <->. ~;:f \ ....... 1<1 I ..... -....j <.....J \ ,~ .<::.~ ,\ , " \) , .I ~ I~ ,-.nl --.;: ......, , '-" ,- ~ , J~'~ ~'.:""' r,)\ ~ "" e- CI ... iii ..' " , , i " , , " 1;11 '! l'i " ill; 1;1 I" II \I , , '\' 'I' I" "1 , ' ,11\l] " " '.i' II '1,:'11 I 'J' " Iii, I." d,)' \! I' " '\ Illilli, " ,! ) ! I ,,\f'll 1 It " ! i,\ i I', ,J l'lf,'!, " , , " , " I,,: ! " , , " ,I ," ,I" '1''''1 " ), : 1 , " , , " ,,"', J Jll. ,< I , , , , , " , , , , ' II! \1.. " I"; I I Ii' ,-?C2;P' ~ ' of" ,,,.pJ!:..,~r~.C'.,.,,..c 1~~ , " " ',Ii :\',' .:' ,.., , " l~ 91. Tk"'l "-}'7 t '- q ))kii,,_, '~~,''''''-' ,I . ; --r'f"7 .... '. ! I I , , i I' I'" " , I " , I \1 1 " 'I" " , I , .t ~-J < " " " 'I ',1 11,'1 " .""., I , -)1 ", " I 1 , , , I ,I.' ij , " . I I.'ljLWRI. ,'"II , ,,\111,' , " , I " :,:1 , ':'1 , , II I 1'1 Ii'll ["Ff: , i ~ i ! 1 , , , III I, 1 i /, ~., j , , III' ! ,r, " " I " , " , 'I I \ " ',' " , " I , " , 1 " '.' '. I :';1 " \ ',I, .fl.", , t " ,I l" 'II ! 11.1'.' '!/lrJ1,l;'lli.:.!.' t hf}J' IJ.I(1 f. ',,:1 I'. .:, -,d/~11 ~./..d -f, ,;/...:w~~-:-~ 1~~ i >,'. ~I ,-' tl..'Ii. rr " ."I:)! I 'ii, ;'1' I' I I.: ,h \'1, r't ',1., /!-tAr " , .,:' " , " " , \ " "---)--, ~ c., ") , k<<..t..- t1,;c z;- " I' " , " , ,I OJ', ,.'J ". J I. ;, " . 1 S, Denied. Aller reasonable investigation. PlaintitT is without knowledge or information sufficient to fonn a belief as to the truth of this averment. In turther response, defendant Jean Colaizzi is a signatory and mortgagor with respect to the Open-End Mortgage and Security Agreement dated July I, 1992 (the "Open-End Mortgage") granted and delivered by Defendants to P!aintitfas security for. inla: lIIia. the obligations of Colaizzi and Hager Partners (the "Partnership"). Hager-Grandon Insurance Services. Inc, (the "Company"), David M, Hager ("Hager") and Robert J, Colaizzi ("R, Colaizzi")(collectively referred to herein as the "Borrowers") under the Mortgage Note and the Forbearance Agreement dated June 30, 1992 (the "Forbearance Agreement") to which defendant Jean Colaizzi is also a signatory, 16, Denied, On the contrary. the Partnership and the Company were not mdependently creditwonhy of obtaining said loan, By way of further response. the Open-End Mortgage was delivered as collateral security for the obligations of, inw: allii. defendant Jean Colaizzi and the Borrowers under. _alii. the Forbearance Agreement. when the Borrowers. including the Company and the Partnership. defaulted under the terms of the Mortgage Note, 17, Admitted, By way of further response, the Open-End Mortgage was executed and delivered by Detendants pursuant to the terms of the Forbearance Agreement executed by. inlu a1ia. Defendants, Plaintiff relied upon Defendants' execution and delivery of the Open-End Mortgage as a condition to the execution of the Forbearance Agreement. 18, Denied, The Open-End Mortgage was executed and delivered by Defendants as collateral security for the obligations of. inla: llliD, Defendants and the Borrowers under the tenns of, in1u aliA, the Forbearance Agreement when the Borrowers defaulted under the tenns of the Mortgage Note, By way of tiJrther response, PlaintitT obtained defendant Jean Colaizzi's sianature PIIIJ.IoUJ87.\ 2 on the Mort8B8e in order to create a valid and enforceable lien against the real property covered by the Mortgage in order to make such property available to satisfY the debt in the event ora default under the Mortgage Note and Forbearance Agreement. 19, Denied, The allegation contained in this paragraph is a conclusion of law to which no response is required, 20. Admitted 21. Denied, The allegations contained in this paragraph are conclusions of law to which no response is required, By way of further response, at the time that Jean Colai7.Zi executed the mortgage in question, it was clear that Robert J. Colaizzi. David M, Hager. the Partnership and the Company were not properly creditworthy due to. ~ alia. their default under the Mortgage Note, In addition, the marital status (1f Jean Colaizzi was not a factor in the determination of whether or not to accept her signature on the mortgage, To the contrary. her signature was obtained in order to create a valid lien to the mortgaged property and make such property available to satisfY the debt in the event ofa default under the Mortgage Note and Forbearance Agreement. ." PIIILlI''31101 3 .',1 .' 'jl' :::\',' JLL-11-1996 16117 PNC B~ 7177302373 P.02 VERmCATIO~ I, ErIc Krimmel, verify II follow: 1. lam It Risk Management Officer of PNC Bank, National AssociatioD. successor in iotereSI to CCND Dank. N,A. 2, I am authorized to make this VerificatioD on its behalf: 3. I bave Rid the statemelllS coDtaioed in the fORsoil1ll PlaiDtlfrs Reply to New Matter; 4, The SlatcmcDtIJ conlained therein a~ true alld comet to the best of my knowledge. information and belief. I make thia stalCment uDderSlandlng that It ill subject to the penalties of 18 PA. C.S.A. 4904 re1atlna to unawom falllificatlon to authorities, " Dated: July ....tL.. 1996 & "":-c:J, e: .. Q Eric D. Krimmel .',j " " , ,.,: 1 I. I.' ";I! , , 11,1 ," n \~ ("') ~I' -n \Ji,.' (..~ , ;.:;J I 1;'-TJ (1} ~ (', rrJ . ' I f- C'; I''''; , I roo' '( I,') " 1;~ ., ),' y',) 'r .J ~" " ! ....1 :~ r.~ .'.... . ., 'Ii' I " I I I, I ') d" ::; , ..... IX ~ _ l; - a- S ! ~ ' -~<", ~ ~ .. .. , ~ ~ ..,. ~ ' ! i :: ' M~~ , . PNC BANK, NATIONAL ASSOCIATION, successor in interest to CCNB BANK, N.A., 4242 Carlisle camp Hill, PA Pike 17011, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA 1, I , I VS. NO. 96-2213 CIVIL TERM ROBERT J. and 428 Lamp Post Camp Hill, PA JEAN E. COLAIZZI, Lane 17011 , Defendants ANSWER WITH NEW HATTIR 1. Admi tted. 2. Admitted. 3. Admi tted. 4. Admitted. 5. Admitted. 6. Admitted in part and denied in p~rt. It is admitted that Robert J. and Jean E. Colaizzi executed and delivered to the Bank a document entltled "Open-End Mortgage and Security Agreement" (hereinafter referred to as the "Mortgage"). It is denied that the Mortgage was dated July 1, 1992. It is further denied that the Mortgage was executed and delivered to the Bank in consideration of or as security for a loan. By way of further answer, atter reasonable investigation, Defendants are without sufficient information or knowledge to torm a belief as to when and/or it the Mortgage was recorded with the Office ot the Recorder ot Deeds for Cumberland County, Pennsylvania, at Mortgage Book 1080, Page 473. 7. AdmItted in part and denied in part. It is admitted that the Mortgage references and covers the property located at 428 Lamp Post Lane, Camp Hill, Pennsylvania. It is denied that the Mortgage was executed in consideration of or as ~ecurity for a loan. 8. Admitted. 9. Admitted in part and denied in part. It is admitted that Robert J. Colaizzi is in default under the terms ot the Note in that he has failed to make all monthly payments of principal and interest as and when due. It is denied that Robert J. Colaizzl is in default under the Mortgage. It is further denied that Jean E. Colaizzi is in default under the Note dated October 31, 1988, or Mortgage referenced in Plaintiff's paragraph six, or that she has failed to make monthly payments of principal and interest a. and when due. By way of further answer, Jean E. Colaizzi 18 not obligated under the Note or Mortgage. 10. After reasonable investigation, Detendants are without sufficient information or knowledge to form a beliet a. to the truth of the assertion concerning the amount that Robert J. Colaizzi is indebted to the Bank under the Note. By way of further answer, it is specifically denied that J8lIn E. colaizzi i. 1Niebte4 " " ' ',' I, to the Bank for any amount relative to the Note or that the Defendants are indebtad under the Mortgage reterenced in Plaintiff's complaint. 11. The allegations set forth in paragraph 11 are conclu9ions of law to which no response is required. To the extent that a response is required, the allegations set torth in paragraph 11 are specifically denied. 12. The allegations set forth in paragraph 12 are conclusions of law to which no response is required. To the ext3nt a response is required, it is denied that the Bank is entitled to attorneys fees, costs and expenses incurred by the Bank in connection with this matter. WHEREFORE, Defendants deny any and all liability to the Plaintiff under any cause of action declared or set forth in Plair.ti ff' s Complaint and accordingly request that Plaintitt' s Complaint be dismissed. Nil" MATTIlR 13. Paragraphs one (1) through twelve (12) ot Defendants' Answer are hereby incorporated by reterence as if fully .et torth henin. 14. Joan E. Colaizzi was not a borrower from CCNB, on the Mortgage Note dated October 31, 1988 in the amount at $1,340,000.00, referenced liS the "loan" in pllragl'aph 5 ot Plaintitt's Complaint. 15. Jean E. Colaizzi had no connection or relationship or involvement to the Mortgage Nota dated October 31, 1988 or the loan evidenced by said Mortgage Note. 16. Colaizzi and Hager Partners, and Hager-Grandon Insurance Services, Inc. were independently creditworthy of obtaining the principal amount of $1,340,000.00 from CCNB when CCNB made loans, advances, and/or extensions of credit to Colaizzi and Hager Partners ftnd Hager-Grandon Insurance Services, Inc. 17. CCNB and PNC Bank collectively referred to herein as the "Bank" did not rely upon Jean E. Colaizzi's assets, signature, or her marital relationship with Robert J. Colaizzi when the Bank made certain loans, advances, and/or extensions of credit to Colaizzi and Hager Partners and Hager-Grandon Insurance services, Inc. as evidenced by the Mortgage Note dated October 31, 1988 and attached to Plaintiff's Complaint as Plaintiff's Exhibit nA". 18. The purpose and reason for the subsequent roquest by the Bank for the execution of the document entitled "Open-1i:nd Mortgage and Security Agreement", attached as Exhibit "B" to Plaintiff's Complaint, was based solely upon the marital status of the Defendants Robert J. and Jean E. Colaizzi. " 19. The Blink is a "creditor" as defined under the Equal <, ~ Credit Opportunity provision of the Federal Consumer Credit " i,1 Protection Act, 15 U.S.C. S1691 n. tilQ., and Regulation B, 12 C.F.R. 202.1 ~. ~. 20. At all times relevant herein, Plaintiff, in the ordinary course of business, regularly extended, offered to extend or arranged for extension of credit to it customers for which a finance charge was imposed. 21. Plaintiff has violated the Equal Credit opportunity provision of the Federal Consumer Credit Protection Act, 15 U.S.C. S1691 ~. ~., and Regulation B, 12 C.F.R. 202.1 n. ~. by requiring Jean E. Colaizzi to sign the Mortgage notwithstanding the fact that: a. Robert J. Colaizzi, David M. Hager, Colaizzi and Hager Partners and Hager-Grandon Insurance Services, Inc. qualified under Plaintiff's standards for creditworthiness for the amount and terms of the credit requested; and b. Plaintiff required that Defendant Jean E. Colaizzi serve as a subsequent Co-Mortgagor of Defendants residence because of Jean E. Colaizzi's status of Robert J. Colaizzi's wife. WHEREFORE, Defendants respect tully request that the Complaint in Mortgage Foreclosure be dismissed and the Mortgage be declared invalid and stricken, and further: 1. neclare Plaintiff's action in requiring Jean E. Colaizzi to enter into the Open-End Mortgage and security , ,., "'-',1 PRAECIPE !,.~~.!.~1'.ING, CAS,? FOR ARGUMENT (Must be typewritten and subnittecl in duplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please list the within ITldt ter for the next ArgI.Jnent Court. --~--------------~------------------------------------------------------------"-------- CAPTION OF CASE (entire caption must be stated ,in full) PNC hank, Na.tIon'!l Allsocintion (Plaintiff) VB. Robert J. and Jean 1:). Colaizzi I, ( Defendant) No. 2213 Civil 19 96 1. State matter to be argued (i.e.. plaintiff's motion for new trial. defendant's demu~ to complaint, etc.): Plaintiff's Mot1on for ~;umm!lt.y ,Jud"ment 2. Identify counsel who will argue case: (a) for plaintiff: Address: 3. ,reffrey H. Cohen, Esquire Inehr, ffnrt'1son, Hnrvey, Branzburg & Ellers 1401 Walnut Street Philadelphia, PA 19102 I:ary I" Rothschild, Esquire "",'rite1.11, ~chlffm!ln, Brown & Calhoon, P.C. ;'()I,O Lln'cleGtown Rond, Suite 106 Hn.l'rLlbllq~, PA l'ill0 I will notify all parties in writing within two days that this ~ _ been listed for arg\Irent. (b) for defendant: Address: 4. AJ:"glJtEnl Court nate: (il'toller ;1. DBted: ^ 11 ~~ 11:; t. 1 I), 1 ~F~ tJ 25. PNC BANK, NATIONAL ASSOCIATION V. I IN THE COURT OF COMMON PLEAS OF I CUMBERLAND COUNTY, PBNNSYLVANIA I I I I NO. 96-2213 CIVIL TERM I I CIVIL ACTION - LAW ROBBRT J. AND ,lEAN E. COLAIZZI III RJ: I 8UMMARY JUDGMBNT BIPORl SHIILY. P.J.. HOPPER. J.. RES8. J. NZMORAHDUM OPINION AND ORDER or COURT This case was listed for Argument on October 2, 1996, on plaintiff's motion for summary judgment. On October 1, 1996, the Court recsived the following letter from counsel for defendants I Dear Sir or Madaml Please be advised that the Defendants in the ahove- captioned matter, Robert and Jean Colaizzi, shall not be submitting a brief in response to Plaintiff's Summary Judgment Motion. Additionally, Defendants shall not be presenting Oral Argument and concur in Plaintiff's entry of a judgment against Defendants. Thank you for your attention to this matter. Sincerely, Gary L. Rothschild, Esq. We will therefore grant the motion by PNC Bank, National Association, for summary judgment. ORDER AND NOW, this 11th day of OCTOBER, 1996, the motion by PNC Bank, National Association, for summary judgment is GRANTED. Jetfrey H. Cohen, Esq. For the Plaintiff Gary L. Rothchild, Esq. For the Defendants the Court, -// (V.l:'''l~.t.'l..''''' '''-(l,L ,( j tit '.1,\ 4 ,Ol ~ r .. T ('" 'I :~,.. , ,. I' ' r~'I' r, "I' ti', ':. t' 0 " " 'I ..' .' I !'. , H:.;\;:'~'.;'tL:j,\:',I,\ , , , " " '" ,,' , "', .1,( "'(\",', .,\-,',\'1 ;1'< " ;'1 , I ii " I I "J " ,I , ! . -' . "Company"). Consolidated Insurance Group. Inc ("Consolidated"), David M, Hager ("Hager"). Robert J. Colaizzi C'R, Colaiuj") and Jean E. Colaizzi ("1. Colaizzi") (R Colaizzi and 1. Colaizzi are collectively referred to herein as the "Mortgogors"), Krimmel Affidavit at ~3. allached hereto as Exhibit "A", A true and correct copy of the Loan Agreement is allached hereto as Exhibit "B", 3, Pursuant to the Loan Agreement, on October 31, 1988. CCNB made an acquisition loan in the original principal amount of$I.~40,OOO to the Company, the Partnership, Hager, and R, Colaizzi (collectively the "Borrowers") for the purpose of acquiring and operating a full service restaurant and bar commonly known as Gigante Restaurant located at 115 Sl. John's Church Road, Camp Hill, Pennsylvania (the "Restaurant"), together with a liquor license and all inventory. equipment, business and goodwill of the restaurant located thereon, Krimmel Affidavit at ~4, 4, As evidence of the loan, the Borrowers executed in favor of CCNB that certain Mortgage Note in the original principal amount $1,340,000 (the "Acquisition Note"), Krimmel Affidavit at ~5, A true and correct copy of the Acquisition Note is allached hereto as Exhibit "C", 5. Pursuant to the Borrowers' request. CCNB modified the terms of the Acquisition Note and Mortgage pursuant to the tenns of that certain Mortgage Note and Mortgage Modification and Extension Agreement (the "Modification Agreement") dated February 26, 1990, Krimmel Affidavit at ~6, A true and correct copy of the Modification Agreement is allached hereto as Exhibit UD", 6, The Borrowers defaulted on, in!<< lllia, the Acquisition Loan by failing to make payments as and when due, As a result of such defaults, the Bank accelerated the balances due, demanded payment and confessed judgment in the Court of Common Pleas of Cumberland County. Pennsylvania The Borrowers requested that the Bank forbear from further exercising its rishts and PlIIl.II24426.1 2 . remedies in connection with such default, Krimmel Allidavit at ~7, 7, Accordingly. the Bank and Borrowers entered into that certain Forbearance AsJ'cement dated June 30. 1992, Krimmel Affidavit at ~8 Pursuant to the Forbearance Agreement, the Bank agreed to forbear from exercising its rights with respect to the Borrowers' defaults under the Acquisition Loan until April 30, 1994. on which date all of the Borrowers' obligations under the Acquisition Loan were due and payable, Krimmel Allidavit at ~8, A true and correct copy of the Forbearance Agreement is attached hereto as Exhibit "E", The Loan Agreement, Acquisition Note. Modification Agreement and Forbearance Agreement are sometimes referred to herein collectively as the "Loan Documents", 8, As additional collateral for the obligations of Borrowers under the loan documents and the Forbearance Agreement, the Mortgagors executed and delivered to the Bank the mortgage dated July I, 1992 which was duly recorded on July 30. 1992 with the Office of the Recorder of Deeds. for Cumberland County at Mortgage Book 1080, Page 473 (the "Mortgage'), The Mortgage grants the Bank a lien on the real property located at 428 Lamp Post Lane. Camp Hill, Pennsylvania, Krimmel Affidavit at mJ9, 10, A true and correct copy of the Mortgage is attached hereto as Exhibit "F", 9. On April 25, 1996, the Bank commenced this foreclosure action against the Colaizzi. due to their default under the terms of. ~ lIiill. the Mortgage, The complaint alleges. inW alia. I default under the Mortgage due to the nonpayment payment of principal and interest as and when due, Krimmel Affidavit at ~ II, A true and correct copy of the Complaint is attached hereto as Exhibit "G", 10, On June 6, 1996, the Mortgagors tiled their Answer with New Matter, The Mortgagors admit that they executed and delivered the Mortgage to the Bank, Mol'ICYIf, " , PIIII.I\24426-1 3 -' . Mongagors admit that Roben J, Colaizzi is in default under the terms of the Acquisition Note as a result ofms failure to make payments of principal and interest as ~nd when due, :w: Answer at ~9, For her pan. defendant/mongagor Jean E, Colaizzi denies that she is in default under the terms of the Monlll8e, ld, As her only defense to this Ibredosure action. Jean E Colaizzi improperly invokes the Equal Credit Opponunity Act in New Matter She assens that the Bank violated the Act by requiring her to execute the Mongage since she was not obligated on the underlying loan, and her husband was independently creditworthy at the time the Bank made the original loan, A true and correct copy of the Answer and New Matter is attached hereto as Exhibit "U" 11, There are no genuine issues of material fact as set forth in the accompanying memorandum oflaw, and the Bank is entitled to judgment as a matter of law, 12, The Mongagors continue to be in default of their obligations pursuant to the Loan Documents such that the amounts owed to plaintilf as of July 19, 1996 are as follows: Principal: $1,423,834,53 Interest: 120,426,76 Ill1al: $1,544,261. 29 Interest continues to accrue, from and after July 19. 1996 at the rate $336,18 per diem, together with late charges, costs. attorneys' fees and costs ot'suit. Su Krimmel Affidavit at ~ 12, P1I1LII14426-1 4 . . CERTIFICATE OF SERuo; I, JeftTey H, Cohen, hereby certify that on the 30th day July. 1996. a true and corr~t ': ' cop~ of the foregoing Plaintiff's Motion for Summary Judgment and Memorandum in Support of Summary Judgment was cauiied to be served via first class. United States mail, postage prepaid upon the following: Gary L. Rothschild. Esquire Serratelli. Schiffman, Brown & Calhoon. P,C, 2040 Linglestown Road Suite 106 Harrisburg. PA 17110 , " ", " PIIILlI2++26.1 . . i :. " " ,iI " ' "1 , I 1\11 \ I' I II \ 11 ' ! J 0"1, @ I " i " " " I " " i 'I" I " I,.; , I( , 1 , '" I c' " a ",' , , , " -' . Services, Inc, (the "Company") and Consolidated Insurance Group, Inc,("Consolidated"). Robert J. Colaizzi ("R, Colaizzi") and Jea.l E, Colaizzi n Colaizzi")(collectively the "Mortgagors") and David M, Hager ("Hager"), 4, Pursuant to the Loan Agreement, on October 31, 1988. CCNB made an acquisition loan in the original principal amount of $1.340,000 to the Company. the Partnership. Hager, and R, Colaizzi (the "Borrowers") for the purpose of acquiring and operl\ting a full service restaurant and bar commonly known as Giganle Reslaurantlocated at 115 SI. John's Church Road. Camp Hill. Pennsylvania (the "Restaurant"). together with a liquor license and all inventory, equipment, business and goodwill of the restaurant located thereon, 5, As e\.idence of the loan, the Borrowers executed in favor of CCNB that certain Mortgage Note in the original principal amount $1,340,000 (the "Acquisition Note"), 6, Pursuant to the Borrowers' request, CCNB modified the terms of the Acquisition Note and Mortgage pursuant to the terms of that certain Mortgage Note and Mortgage Modification and Extension Agreement (the "Modification Agreement") dated February 26. 1990, 7, The Borrowers de!llulted on. inlcI alia. tile Acquisition Loan by failing to make payments as and when due, As a result of such defaults. the Bank accelerated the balances due, demanded payment and confessed judgment in the Court of Common Pleas of Cumberland County. Pennsylvania, The Borrowers requested that the Bank forbear from further exercising its rights and remedies, 8, Accordingly, the Bank and Borrowers entered into that certain Forbearance Agreement dated June 30, 1992, Pursuant to the Forbearance Agreement. the Bank agreed to forbeu from exercising its rights with respect to the Borrower's defaults under the Acquisition Loan until '1111.1\240426-1 2 . April 30, 1994. on which date all of the obligations under the Acquisition Loan were due and payable. The Loan Agreement. Acquisition Note, Modification Agreement and Forbearance Agreement are sometimes referred to herein collectively as the "Loan Documents", 9, As additional collateral for the obligations of Borrowers under the loan documents and the Forbearance Agreement. the Mortgagors ellecuted and delivered to the Bank the mortgage which is the subject of this foreclosure action, Such mortgage grants the Bank a lien on the real property located at 428 Lamp Post Lane, Camp Hill, Pennsylvania and was duly recorded on July 30, 1992 with the Office of Recorder of Deeds for Cumberland County at Mortgage Book 1080, Page 473, 10, BCil',ause the mortgaged property is jointly owned by the Mortgagors, the Bank required that Mrs, Colaizzi ellecute the Mortgage in order to create a valid security interest in the mortgaged property and make such property available to satisfy the debt in the event of a default under the Loan Documents, II, The Mortgagors are in default under the terms of the Loan Documents by virtue of various events. including. without limitation, the non-payment when due of the amounts payable on account of the Loan Documents, P111L1124416-1 3 i III 'I LOAII AGREEMENT I' nns LOAN AGREEMENT, made thlS day of , 1988, between CCNB BAlIK. N.A. (h.r.lnlft.r Semltlm.s reforr.d to as 'Blnk"), and HI..r-Grandon Insuranc. Services. Inc:. (h.r'lnafte-[' somctt.1D1.5 referred to as .Compan).), a Penn.svlvan:..\ (OrpOrlllon, Collizzi Ind HI..r Plrtn.rs ,h.runlft.r SOmltlmes ,,!erre1 '0 JS i I I 'Partn.rship'), a Pennsvlvanla pann.rsr.1P, Dlvid H. HI..r (herelnafter somHlme' I ~ '; referred to as 'Ha..r'), Rob.rt J. Collizzi Ind Jean E. Colaizzi. his wHI Ihlrflnafter I I I, 'omHlmu referr.d to as 'Collizzi'), and Conlolidatld Inluranc. Croup. Inc" J I ;',' Pennsvlvanu corporanon I horunaftor som.umes reforrld to as 'Consolidat.d'), '~n. I I. I ' , t " II feregoLng Company. Pann.rshlp. Hager, COl31::L and Consolldoe.d semeum,s b..r~ I I i: referred to collectivelv as 'Debtors'): II I II ! I Iii WIT N E 5 SET H: I I I i_ I, Repros.ntatiens, The Dlbtors hereby represent. cov.nant and warrant that: Ii II , I A, Corporat. Exist.n'. ar,d Powlrs, Th. Company and Consol idated ar. corporltions duly incorporlt.d and vllidly .xisting under the laws of the Commonw.alth of Pennsylvania, and have the corporat. powers to make and perform this Agr..m.nt, and to execute, acknowledge and deliver any and all docum.nts. Slcur lty agr..m.nts, notes and lnstrum.nts reqllir.d htreund.r, 8, Corporate Authority, Th. making and p.rformanc. by the Comp:iny and Consolidlted of this Agrum.nt, security agr..m.nts. not.s, ano ail other docum.nts Ind instrum.nts r.qu,ir.d h.reund.r hlv, been duly aut.h~riud bv n.cesslry corporlt. Iction of t.h. Company and Consolidat.d and ar. the valid. bindin. Ind .nforceable obligat ions of the Complny and Censol idat.d in accordlnc. with th.ir respect iv. terms, C, Plrtnership Exist.nce and Pow.rs, The Partnership is a valid plrtnership orglnued and exist in, und.r the ldws of the Commonw.alth of P.nnsylvanu and David /'I, Hagor and Rob.n J, Coiaizzi are the sole panners of the partn.rship, The mlklng and p.rformance by the Partnershlp of thlS A~r<.ment. security agreem.nts, notes. and all other documents and lnStrum.nt~ requlred hereunder hive bun duly luthorlud by necelSary Ictlons of the partner, aM are val id. binding ar,d enforctable obllgations 0: thtt PHtn..nh:p ... accordanctt with th.lr rcsp.ctlV' t.rms, ,I I '! O. Litiution. Thttr. Irt no suits or proc..dings pendln. or to th. knowlttdg. of thtt Company, the PHtnershlp. COlaHZl or Hager thrut.n.o a,linst or Iffect:ng the Debtors. or which, lf adversely a.tHmlnea. h.v. . mlterial adverstt .ffttct on thtt finano.l condition of the Companv. the Partnttrship, Hager or Colaiz%l, , , :1 E, Connnts, No conStnt. approval or .uthorization of or reglStonon, dttclaration or fillng with any govtrnmttntal body or .uthority lS rttqulrea :r. conn.ction with th. valid e.ttcutlon. deliv.ry or perform.nctt of th:, Agrttttmttnt. the notes. the s.curity .grettmttnts. or other aocum.nts I collatttralizing thtt loan, I I I :1 I , ,I " F, Compli.nctt wlth Chaner. Etc, Thtt Company and Consolld.ted artt not In violation of any matttrul tttrm of any chartttr. bylaw, mong.... ind.ntur., indttbtttdnus or othlC instrumttnt or .grum.nt. of any ordttr. wrlt. Judgm.nt, injunction. dttcrtt.. Or d.mand. or any statut... rul. or regulation: th. tt.ttcution Ind dttlivttry of thtt LOin Agr..ttment. th. nottts, thtt ucurlty agrumttnts. and th. performance of all of thtt sam. ar.. and 101111 b. ln compliance with th.. foregolng, il iI II II h il II I I G. Marktttable Titl., Debtors hay. good and marknabltt tieltt to thtt property which collateralizu this Loan and th. samtt arlf not subject to any mortgagtt. indttnturtt. pledgtt. littn. conditional saltts contract, security interlSt, ttncumbrance. clailll. t rust or charge unless otherwise disclosttd in this Agrumen t , H, LiQuor Licenu, Thtt Company lS thtt ownttr of Rutaurant LiqUOr Licttnse No. TR-l9823 and thtt said licttnn is in full forctt and dfttct and is not th. subj.ct of suspttnsion Or r.vocation procudin.s, I, Rttpreuntations and Warrantiu, Thtt abovtt rttprttuntations and warrantl.. shall survlV. thtt makin. of this Agrumttnt and th. ilSuanet of any not~s - 2 - 'I !I I I pursulnt h.roto. :e,dudlnl Inv r.n,wI. notfl. and the off.rlng th.r.oi to ',",' alnk shall b. I n.w Ind lnd.p.nd.nt r.:r.s.n..atlon and wlrranty to the asnK 0: all mltt.rs s.t forth ln thlS Artl::. 1S of the dlt. of such off.r, ~ I' ! i " I' Ii I, II , I: II t [ t' ~. 2, Th. AeQuidtion Loan, Th. Bank agr.ts, subJ'ct to the terms and condalorls Sft forth hlrun. to l.nd ,h. Complnv. the ?sr,n.rshlp. Colunl and Haglr.::lnt,,,. and tn. Company, the Partnlrshlp. Coll1:u ano "aglr JOlntly agr.. to borrow ircn ,e.. Bank, contlmporan.ously h. rlwah, thl sum 0 f On. Killion Three HWld....d Forty thou.and i and Mo/100 ($1.340,000.00) noll....s fo~ thl p'JrpOSl of aC'luH'lnl thl rul IStat. loclt.d , 'I It 115 st. Johns Road and :01 St, Johns Road :n Hampdln Township. Cumberland Count", Pennsdvania. R.staurant L~quor '_lcen51 No, 7R-19823. and all lnv.ntory. ''lulpm.n" bUSlnus and good will of the rutaurant known as thl Jolly Bull Rlstaurant $ltuate at the afor.said addrttss, ~ I I I: II Note Loan !I I! " !\ J, Te..... of the Acquisition Loan, Th. Acquuition LOlln shall b. .vid.nced bv . of the Compllny. the ?....tnership. Colai:zl and Hllg.r jointly dat.d th. date of th. and payabll to the ord.r of the Bank as fo:lows: A. Intttr.st on the afor,sllid Loan shall b. payabltt at thl rllt. of .l.v.n and on.-halt (11.5%) p.rcent p.r annum, .h. Ottbtors shall make payment to thl aank on account of prinClpal and i:uerut in monthly installm.nts of Thirt..n Thousand Six Hundrld Tw.nty Dollars and Sixty-Eight Clnts (513,620.68) nch convn.nclng on ~ " 1988 and continulna on the sam. day of tach month ther.aft.r for a p.rlod of fifty-nine (59) additionll months, 8, Th. .ntirl pnnClpal balanc.. if ",ot soon.r paid or du.. shill b. due and payable fiv. (5) y.ars from the dati of this Agr'"m.nt, C, Th. D.btors shllll Join t I y uecut. and d.l ivar to the Sank I Mot. in the amount of On. Hillion Thr.. Hundr.d Forty Thousand and No/100 (51.340.000.001 Dollars cont.mporlln.ously with th. .x.cution of this Aar..m.nt. 0, Th.rtt shall b. no p.nalty fOl the pr.paym.nt of principii or any part thar.of, - 3 - E, Interest day yur. II II F, Ttle Bank Ttlouund Eignt sna II b. calc\lllted on tn. basis of a ttlrtt hundr.d s CXtv ,;,0 I shall b. pald a nrV1Cf ctlarle in ttl. amouM of ,w'Mv-S.x Hundr.d and No/100 (S26.800,OO) Collars In conn.cuon wcth thlS Loan contemporaneously wlth th. .xecution of this Agreem.nt, " i' (;, For th. purpose of thu inc1ud. Jean E, Colal%%i. paragraph. No, 3. the t.rm Co ll1%% 1 shall not 'I , :1 :! II ", Workin.. Callital Loan, Ttle Bank agrftS, subject to th. terms and condct.ons :i SIt forttl. to tend th. Company, ttl. Parenershlp. Colaini. Hager and Consol1dated " :1 JOlntly. and ttle Partnership. the Company, Colaini. Haler and Consol1dated J01M'" :i agru to borrow from the Bank cont.mporan.ously hefewah th. sum of One Hundred 'I 1 L Thouaand and No/lOa ($100.000.00) Co lara for the purpose of provlding working capital " to the Company and ttl. Partnershlp, '1'1 5, Tenaa of the Workin.. Callital Loan, The Loan shall be .videnc.d by a I ttl. Cebtors Jointly. dat.d the date of the Loan and payable to the order of the I, I I I ,I II I Not. of SInk as follows: A, Th. lnt.rut rat. on th. funds b;, :ow.d will be at the F.d.ral Ciscount ~at. plus iiv. (5%) perCfne. rate on 90-day commercial pap.r Philad.lphia as it fluctuates The F.d.ul Ciscount Rate means the discount monthly comm.ncina ~. uch month tntr.after, in effect at the Philadelphia Ruefve SInk at from tlme to time. Interest shall be paid . 1988. and cont inuini on the same day of 8, The Debtors shall pay on acco~ of principal the sum of On. Thousand Six Hundred Sixty-Seven (SI.6~7,OO) Collars per month. said payment commene!nl on the L day of '. 1989 and continuinl on the lime day of neh, month thereaft.r until princlpal and interest are fully paid. C, Th. entH' pnnClpal balance. if not sooner paid or due. shall be due and payabl. five 15) years from ttle date of this Alreement. - 4 - I' i' II :1 , II D, Th' D.btors shall .x'cut. and d,llv.r to th, Bank a Not. In the amount .f On, Hune!r.e! Thousand and NollOO '$100,000,00) Collars cont.mporan,ouslv >11th the ,x'cutlon of thlS Agr"m.nt, E, Th'r. shall b. no p,nalty for pr.pavm,nt of prlnclpal, f, Int,r.s: shall b, calculat.d on the bulS of a thru hune!r.d SlXtV <3601 e!ay yur, " " " " C, Th. &.Ink sha 11 No/100 ,$2.000,00) of T>lO Thousane! and ,x.cution of :hls b, paid a s.rV1C' chari' ln the amount Collars contomporan.ously with the Agrtlm.nt, 6, Collat.ral. ;ho C.btors Jointly hor.by pl.dg., assiln ane! grant to the Bank, or agr.. to hav, pl.e!goe!. assign.d ane! grant.e! to the Bank by the own.rs th.reof. as security for th, porformanc. of ,his Agr'.m'nt and the Notll lssu.d h.r.une!.r. and all othtr lJ.abllitits. whothor dir.ct or ine!iroct, absolute or contlnl.nt. du, or to b,com, duo, or which may htruft,r b, contract.d or acquir.e!. of the Company and Partn.rship to th, Bank h.r.undor the follow1ng collateral. , ,I II 'I II ~ ' A, A firs: li.n on th, Partn.rship s rul ,stat. locat.d at ll~ and 201 St, Johns Road (Tax Parc.l Nos, 74, 75 ane! 76 of Map No, I. Hampd.n Township. Cumbtrland County. P.nnsylvania, with r.sp'Ct to the AcqulIitiOn ~oan, and a third li.n with r,sp.ct to the Workina Capital Loan. the afor,sale! r.al ,stat. to b. subj.ct to a s.cond li.n 1n the amount of Fiv. Hundr.d Sixty Thousand and NO/100 (S~60.000,OO) Collars to C.rtrue!. Kindl.r, B, A pleda. of all of the issu,d ane! outstandina share. of the Company pursu,nt to a Pl.da' Agr..m.nt of ,v.n dat., C. An allilnm.nt of the 1.11. b.tw..n the the pr.mius locat.d at ll~ and 201 St, Cumb.rland County. Pennsylvania. Partn.rship and the Company fOr John. Road. Hampd.n Tovnahip. II I' I! II II " C. A first li.n on all of the Company s machin,ry. .quipment and inv.ntory including any product. or proc..d. th.r.of. now own.d or h.r,aft,r acquir,d. . 5 - :, I .....' ',I' E, A first li.n on R,staurant ~1quor ~1c.ns. No, TR-19823, 'I " r, A s.cond li.n in tho amount of On. Hundr.d Thousand (5100,000,00) Dollars on prop.rty own.d by Consolidlt.d locat.d It ~020 East Tnndl. Road, M.chanicsburg. Hampd.n Townsh1p, Cumb.rland County, ?nnsylvania, sud lion b.1na ucond only to a lun giv.n to Comm.rc. Bank 1n tho amount of E1ghtv Thousand ,$80,000,001 Dollars, 0, A s.cond li.n 1n tho amount of On. Hundr.d Thousand (5100.000,001 Dollars against tho prop.rty own.d by Caluni locat.d at "8~ ~ampost ~.n., Hampd.n Township. Cumb.rland County. P.nnsylvlnia. said li.n b.~ng Slcond only to a li.n giv.n to Th. Valley Trust Complny of Palmyra in th.. amount of Thirty-S.v.n Thousand Slv.n Hundred Fifty <537. 7~O,OO) Dolllrs, H, A policy of life insuranc. 1n tho amount of Two Hundr.d Fifty Thouund ' (52~O,OOO,OO) Dollars on tho life of Robert J. Colaini. w~th th. Bank b.in, nam.d as b.neficiary, 7, P.rticul.r Cov.n.nt. of tho D.btor, " otherwis. Igr...d in writing by tho 8ank, O.btors .gr.. that th.y will. unltu " II I' " Ii ,I Ii \1 A, Furnuh Financial Stat.m.nts, rurnish to tho Bank within nin.ty (90) days after tho cion of tho fiscal yur of tho Company and tho Partn.rship. a, c.rtified copy of tho annual audit of tho Company and tho Partn.rahip which shall includ. tho Comp.ny's and tho Plrtn.rship's y,"r-.nd bll.nc. sh..t and profit and loss stat.m.nt for uch .ntity. .nd a similar audit .t an" oth.r time upon d.mand of the Bank. such audits to b. pr.pared by the Company's and tho Partnership's r'lular. ind.p.nd.nt certifi.d public .ccoununn. who mu~t b. acc.ptable to the Sank, Th. cartific.t. of such accountant and hil work sch.dul.s. worksh..ts. not II and comm.nts p.ruininl th.reto mutt alia b. furnish.d to the Bank upon the Bank's r.qullt, In addition. Cllahli .n4 Ha,er shall b. r.quir.d to furnish the Bank with annull p.rson.l financitl stat.m.ntS pr.par.d by an ind.p.nd.nt c.rtifi.d public .ccount.nt. Ii I I Ii :1 I II II I' ,I Ii 8, Mainain Corporat. Exist.nc., corporat. .xist.nc. and right to carry Proserv. and lIII inu!,n th' COIlpan,'. on in bulin... and ftIIinuin. ,,,..,,,, . 6 - Ii ,I II olnd USIt its bltst .ffons to proeur. olll r.n.wals olnd fXtltnS1cns d 1;' ci t."" Company's rights, pew.rs, pnvlleg.s, frsnehislts and e:hu :ogl; authorizations now or hHuft.r r.qulrltd b~ the Compan~, wh1ch the COmpll\'. duml adviubllt 1n order to earry on the Complny s bus 1nfSS 1n tM 'JSU1; mannlt r , C, Malnt.nlnclt of Prop.nus, Hainu1n ali of thlt proptrtus &lv.n .as couatltral in good WOrk1n& ord.r olnd condit.on olnd maklt ail nudltd r'paHs, oldditions, improvfln.nts olnd rtplac.mltnts thtrltto so that the .ft.c"nn' 0: such propltrtilts Sholll be fully pr.s.rved and maintlinltd, 0, Notic. of L1ciiat10n, Promptly glVIt notlCIt in wr1t1ng to thlt Bank of a;: litigatlon and/or procnd1ngs before any govltrnmltntal agltncy afffCung tho Compiny or thlt Pannersh1p wherlt thlt amount .nvolvltd 11 in ..CItIS of Fifn Thousand <550,000,001 Oollolrs, " I " Ii r II E. Notict of Caanons wah RItSPfCt to L1QuOr Llcltnn, Notify the Bank. 1n wrinng. by cHuntd mail. of ..ch and eVHY cHation which may bit issultd bv thlt Pltnnsylvanlol Liquor Control Board against thlt Company and the Company s Liquor LictnSlt. Thlt nouclt shall bit mailltd t~ thlt Bank within Evlt (5) days aftltr rltcltipt of the citoltlon notlCIt by thlt Company, F, Pavmltnt of Tol.ItS, Pay olnd discharge eil taxes. assllSmltntS, and govHnmltntal chargll or leults 1mpoSltd upon thlt Oltbtors or any of Oebtors incnmes or profits or upon any property bit longing to Oltbtors prior to thlt date on which p.naltilts it tach thltrltto, providltd that Oltbtors shall not bit required to pay any sueh tax, asSltssmltnt, charglt 0: levy, thlt paymltnt of which i. biting contested in good falth and by propltr proeltedings. and if noticlt of this fact is glven to thlt aanl<, I II I' II !I I G. !nlunnCIt, Huntain adltquate firlt and ItXtlndltd coyeng. insurance on inventory. machintry, equ1pmltnt and buildings, and aiso insurance against liability for damaglt to puson or property in such a1ll0\lnu and b, '\Iell companiltl a. may bit Satls!actory to the 8ank. Ind furnish to the 'Ink poliei.s and/or c.rtificatlts o! coveraglt for the abovlt inl\lranc.. - 7 - I :, " H, e'P.ns.s of Bank, Pay all OOHS and ..p.nus of the hn~ 'n oenntet:,," w~th the p~'paration. .xeout~on and d.liv.rv of th~s Ag~"m.nt and any Jnc a;: docum.nts ~.qu:~.d her.und.r, nling fus and stamp :ax.s, if a"v, anc ~noluding f.es of oounsel for the Bank ~nourred ~n oonn.otlon with thl$ Loan, and without lImitation to any .xp.nse :nOld.n: to th, tnforo,m.nt of an" I p~OVlS~on of this Agrum.nt and the docum.nts seoun'lg or aooompanv:ng th,s Loan, 'I , I! :, I' il II ,I I. D.posit AcoOunts,' Maintain all d,posiUna of the Company and the Partnersh1p wuh the Bank, 8, !l...tiv. Covenants, Th. Company and the Partn'~ship ag~.. that th,y wU I not, ~ w,chout the p~io~ w~itten cons.nt ot the Bank, I 'I I, 'I I, if II I, r A, Limnat ions on Red.mptlon. Th. Company Io'ill not pu~chas., ~.dltm or oth.~wis. acqulr. fo~ value o~ ~.ti~. any shar.s of its capital stock, B, Limitations on lnd.bt.dn.ss, Th. Company and the Pannership will not borrow any mon.y f~om. o~ issue any ,vid.nc. of ind.bt.dn.ss to any other p.rson, o~ inour any ind.bt'dn.ss o~ 'nt.~ into Ius. aarllm.nts I,xc'pt fo~ those l,as. agr,.ments now in .xist.nc.) oth.~ than a sho~t-t.~m (uP to tw.lv. (12) months) buis In the o~dina~y cou~n of business other than the .ncumb~anc.s sp,oifically ~.f.~~.d to 1n this Aa~..m.nt. C, Additional Encumb~anclS, C~.at., assum., o~ suff.~ to .xist any mongaa', pl.dg., .ncumb~anOl. o~ ncu~ity int.~est of any kind upon o~ in ~esp.ct to any of the oollateral, wheth.r now own.d or hereaft.r aoqui~.d. 0, M.n.r, M.rl' o~ consolidat. with o~ into any oth.r corporation. or sell. lun, transfer o~ oth.rwin dispose of all or a substantial part of th.i~ prop.rty or ass.ts to any oth.~ p.~son. firm or corporation. N.ith.r the Company no~ the Partn.~ship will chang. ita name without the prior writun autho~ization of the Bank, E, Investments or Advanc.s, l1.ak. any inv.stm.nts in or adyanee. to any other p.~son. firm, o~ co~po~Hion. p~incip.ls and offic.ra of th. COlllplny Or - 8 - -A,i " ~C Vj, AGREE f I 1:' the Pannership anel relateel. aHiliateel or subsieliary companus. tllCfpt \ ~ I aelvance payments for elep~s1ts against purchases maele in the orelinary cours. of buain..s or (Hi elirect oblilauons of the Uniteel States of /\menca, , , I! :1 I! II II 11 ~, Guarantee.!, Becoml a luarantor. surety or otherwul liabll for the deb<s or o"her obi il ,'ons of any other person. firm or corporatolon and IXcept as an onelorStr of 1nStruments for payment of any money elepouteel by thl Company or the Partnership for collect1on to its account in any bank in the ordlnarv course of buslness, I , G. Transfer of Asuts, Sell. loase or transhr any substantial part of the Company or the Partnersh1p' s machinery. equipment or properties. or remove the same from their preunt locauons, " I I' il II If I I Ii I , II 9, Evenu of Default, In the Iv.nt that. A. Debtors shall faU to make payment of any installment of principal anel/or inttrest on the Nott or Notes issued hlnuncler for a period of ten Cl0) daya after the payment is due, whether by acclleration or otherwise: or s.' Any reprflentation. warranty. certificate. statement or audit hetttofore or hereafter furnuhed by or on behalf of the Debtors pUrluant to tM. Alreement shall prove to be in any mater1al respect fal.e or misle.e1ins: or C. Any of thl Debtors shall default in the performance of any of the terM. covenants anel conditions of this Aarefment: or D. Any elefault by any of the Debtors shall occur in the p.rfoflllnct of ..~, ',,!l' of the terms. covenants and conditions contained in thl 1I0u or, -",I'", '>f', security alr"ments. pledle agrttments. or any other in.trllllln"II~~'~~~ ;q' pursuant to this "Irnment: or ' ' "',,,' ':)I!<,~<<\1j . I 1,'_ rll:~,:/:~I:t{t' . " ' . 1,'I.:-':"",'I,l~ E, Any of the Debtors shall blcome inaolvtnt or unable to,.,' .....:Il~t<;:. elebts as ',hey mature or shall voluntarily suspend tunllnion .f n,~,W~ usual business 01' shall file a voluntary petition in banruv,tC",,,.:~. petition seeklng rtorganization or to efhet a plan or o''',.r '.'t~."tl~"~', , ""l."'1II~I, "',II'>,I,:.I:;?/i',l. , '"'-__I'p,,,!I, - 9 - I ,!-"-\ . ;'-;JI,I,,(rj~\;: ,;1,. .:,.,II,!,"'! 1"'_':\~'r:~'I\:" ' 'f' ,t_., i:ri;i,;t,:/;'lr;lt.. ! ....../'\t......\oII\:.:O I' Ii II II !I er.llitors. or sha.: file an answ.r admntlnl the JClrudleuon ot the eO'Jrt and the materIal alle.atlons of an invulClntary petitIon pursClant to any Act ~: Conlress relatlna to bankrClptey. or shall be adJCldleit.d bankrupt. or shal: make an assi,nm.nt for the b.nefit of er.dltors or to any alent aClthonztd .., li,qClidat. allY sClbstantul amOClnt of ItS or their asuts or shall apply tor or consent to or sClf~er the appOlntm.nt of any r.e.ivllr or trust" for It or a sClbstantul part e: its prop.rty: or 'I II I F, M ord.r shall b. .ntlr.d pursuant to any Act of ConlrtSS r.latlng to bankruptcy approv~::1 an involuntary petitIon se.kinl r.orlanUatlon of or an ord.r shall b. .nar.d appointlnl any rec.iv.r or trustu for the Companv or any r.e.iver or tr"stu of a substantial part of the property of the Companv or the PartnlrShl;: or a writ or warrant of auachm.nt or any SImIlar proe.ss shall be issu.d against a substantial part of the property of the Company or I the Partn.rShip ar:a such ord.r approvlnl a petition suklng f.orlanuatlon or appoinunl a r'C'~'lfr or trust.. is not vacated or suoh warrant of attaehm.nt or any umilar proc.ss is not r.lused or bond.d within t.n (10) days after its .ntry or l.vy: or G. In the .v.nt thr.. ()) citations are issued und.r the P.nnsylvanla LlqClor Cod. alainst the :iqClor lie.ns. of the Company dClrinl a four-y.ar period: H. Then. and in sCleh .v.nt. the aank may. at ItS optIon. d.clare the unpal:l balanc. of the Notes and acerCl.d int.rest thereon to b. immediately due and peyeble. without prasentment. demand. protast or notie. of any l<1nd. all of which are har.by e.pressly waived and any security rilhts which may have bun arlnted to or obtained by the Sank shall forthwith beeom. .nforeeabl.: provided. however. that b.for. ...rei.inl the rilht to declare an .v.nt of d.fault und.r this Loan Alrum.nt. or Clnd.r any alrument r.lat inl to this Loan beinl ..ecut.d eont.mporan.ously her.wnh. the Sank shall Ilv. the Oebtors ten (10) days' prior ...ritt.n notie. of said .v.nt of d.faCllt and the Oebtors shall have t.n (10) days from the mailinl of SlId notic. tv curt said default . . 10 - I! II Ii I 1 I I I II , I II II ,I II ;1 Ii I: il I I I I .: AN, ...IiR.. 10, "beellaneouI, .... Non-Waiver of Rill.hts or Rem.dies, No failure or delay on the pHt cf tr" Sank in txerCiSlnll any rlght. power. pnvilege or ~emedy hereunder sha,; ope rat. as a wuver ther.of: nor shall any ungle or parual ."erC1Sf of an" right, power. pnvlleg. or r.m.dy hereund.r preclude any other or brthH ."ercu. thereof. or the exercu. of any othor right. pow.r, prlvd.g. or remedy, The <llhts and remedi.s her.in provlded are cumulanv. lnd net '''CIUS1V' of any rlghts or r.medl'S provlded by law, S, "'dditional Documents, deliver any oth.r documents purposes of these Loans, The Debtors agree to e"ecut., acknowl.dge ana that may be required by the Sank to eff~ctuat~ th~ C, Sindinlt Eff~ct, ThlS ...gr..ment shall b. and rema1n 1n full force ana .ffect until th~ principal lnd.btedness evidenced by the Notes and inter.st thereof or any charges due her.under shall have been paid 1n full. and supersede any letter. allreement or commitment Nde by the Bank or any other institutional panlclpant in the Loan with the Sank, 0, Notices. Any notic. or d.mand to be given h.reund.r or any other instrument accompanying the Loan shall b. sufficiently given if milled by Unit.d States Mail. first class. c.rtitied. return rec'lPt r.quest.d. 1n cas. of the Dank to l31 Bridg. Street. N.w Cumb.rland. PA 17070. and ln cue of the Company to ll~ St. Johns Church Road. Camp Hill. Pennsylvania 17011. and in cast of the Partnership to 115 St, Johns Church Road. Camp Hill. Pennsylvania 17011. in caSt of Hag.r to ~020 East Trlndle Road. Mechanicsburl. Pennsylvania 170~~. in case of Colaizzi to 428 Lampost Lan.. Mechanicsburl. Par.nsylvania 170~~. and in the cast of Consolidat.d to ~020 East Trindle Road. Mechanicsburl. Pennsylvania 170~~ or such other address.. as NY ba desilnat.d from time to time by either party. by notic. giv.n to the oth.r in writin., E. Applicable Law, This Agreem.nt. the transactions involved hHeby. and the obligations of the parties hereunder shall be constru.d and int.rpreted in accordanc. with the laws of the Commonw.alth of Pennsylvania. - II - ..\ 11J'. 1\....".;..;,. F. Walver of Jury Tn_I, The Debtors htreby wlive the rllht to a tr:a; ~v Jury in any litilatlon In connection wIth the enforcement of thIS ~J.n Alrnment or any Notes or other documents or actions aruinl out of these loan trans.ctionl with the lank, G, Modificatlon, No modificatlon. reculon. waiver. ralease or amendment 01 any provlsion of thu Alrument or any other inltruments accompanYlnl tho L.oans shall be made except by writt~n "Ireements sublcrlbed by the dulY authorized officers of the Bank, H, Cross Default. My default by the Company, the Partnership. COIII::l. Haler or Consolidated in the performanca of any of the term.. covenants and conditions contained in the Notes evidencinl the indebtedness hereunder. or any security alreement collateralizlnl the Note. shall constitut. a default In all the Notes and security Igre.ments issued hereund.r, !, Joint Lilbility, Th. Company. the Partn.rship, Colaini. Haler and Consolidated Icknowledl' that their liability is joint and several and that each is liable to the Bank for the full aDlOunt due the Bank und.r this Alrnmant, D.btors further a~knowledg. that in the ev.nt of default the Bank may pursue one or mora of the above for the .ntira amount of the debt and the lank has no duty to pursue the Company or the Partnership first for Plym.nt prior to pursuinl any of the individual Debtor.. IN WITNISS WIIEREOF, the parti.. have her.unto cauud this Alr...nt to b. duly .xecut.d as of the day and y.ar abov. first wrin.n, tlTQ!~ As St nt S fltuy CCNI lANK. N ,A. (~ Vice Pr...t.cltnc ATTEST: (SEAL) " - 12 . , , " " i 01 ~ , , " , " I' , I I ! I , " Ie, " i"..'" I' '~ I' \:1' ,II I , ,[ ~ '(~ I . tl' ~:~ ,. e I 'I I I / ,',> .. ,', ,,'.i " .' ~~ (':'1: i'~"": , ',' " " " , " " ,~ Mortgcage Note I;S' 1,340,000,00 ... "I". -' ' , ,18 FOR VALLE RECEIVED tM' .n\J.f\IIlJ'l..,J1 hCrtlnoltler :olll,1J tht BlJrro...r' , r,:~,)mun I~ ~..., I..:("B B..~". SA, .. n.uIJnal ~.nllln, ~1J\111'" U\~I.tll.ln .;r.~t.\J "'., .anl.1 "lslInaun..!" I~t I...., ,:r in. L'",tt,J 'ir~t" ~",,~, III pn""!)11 pl..:' .;1 ~'J'lnt" .It .\) I Bn..!,_ Strut '4,.. (-1mbtrllng, (JmO,,:.nd (.:llnt), Pt,n,\" 1"..1. 1~.r'lna.n,r ~all..j th. 8011"1' ) ,f!l,l ,I, .:rdcr 'I'll PMIo:IPII him .); IX MJ.LL1CJ\lnRZ /-flJNRI) roIU'Y '\1D.&IH) IHJ t<<)/l00 '1l.J.40.ooo,oo-' DOLL 'RS (l'lllh., "'ll'llnt'fut 'J" HI. lnpIIJ pnn":lpII "alolJ'h.:t .It In. rate 'jl _U..~'- ;:'f..:tnt per !nMUm IJ,J ~r'n. .11),1 .an..! Intlrn' (I) b, p.ltJ d ll\t lomn .nLJ .n In. ''runner \.1 I\1M" .u (,lilo,)....'. (I.) o\olL OM ..1111... nw.. H...~ ~.erIY ''''''..and and 00/100 (tl,340,OOO.00l DoU... 1'.('lL man. IS .toru&1d, ".ysblt (1'" I j, ],." (rom the ~t. h.rtO(, tOli.ther Nltn lntttnt )0 ~' l.mptld bll.f1ee It tl'l. r'tt. ,]t ellven Il\d on...halt (Ll 1-2.l pereent ;Jer 'l.'1num, H "rlne'pal .tI1d tnttrllt to be ~Id In'nonthly InUIUmtnt:j ot Thlrtlen t'?'\Q1uand )1;( rlutl~l Twtnty r.A)lllu IIId Stxty-Elli{nt ('.nts., $Ut~20.tU) e.eh, ~olnmlnclnli on t1e ,'" ,a, n'L; _.. ... t 1.Me and l,"OntlnUlni on the SAIne day of each :nonth to,erl!atter unt ~'In.,pel .,,~ ,nl.,ut ... (ully ~old. II I. Wld,,"00d II1d .","d lhal Ih. ",ovlllon (er tho \l&yn1f1lt o( ~"n.,~.l ..,d "tor..t Ih. nol .11., ar ohll1l1' tho lum o( mOlUl'lty o( thl. obUpllon. Borrowers to ~y "11 ..tate tIX" IJ\d ",.lInt ftctiplJ to Bank tOf' vlrlC(clltlOn prt\Jr" Df..mber III o( ...h 1''', TIDI LOAM II PArAllLl III PULL AT 1'11I IHD or FM (5) 'f1All& "T 'tIA'IVlUTY '(I IlIUrr lLIPAr 11lB BIII'IIlI PalNCIPAL B~ or TRI LOAM AJl1) lIN'PAJD 1ln'DE; 'rID" OOL TRI BAlIK IS UNOI. HO OaLlGATIOM TO RU11IAMCI Till LOAM AT TBo TINL TOU ifiLL, TBIRlrOIU, SI IUIQOmID TO MAlt. PAnt.1IT 001' O. C1fHJ ASl8TS ntAT 'fOU MAT OWM, ~ '{OU ifiLL HAn TO riND A LSNDlI, W1IICK MAY 'rID BAllI: ,{OU HAn TBIS LOU Wl1'H, IfILLIMO TO LIHD '{OO 1'BI 1l01laY. .. Y' unllAMCl TIDI LOAM AT 'IU'I'llIIJT'l, TOG MAT RAn TO PAr sora oa ALL OP T CLOI\JlO rom HOIlMALLY ASlOClAno WITH A III. LOAJf, !VIM .. ,(OU 08T" UFIIWfCI IlO PlIO". Till SAMJl BA1II. Th. ",".Vi.lon. o( . 1..oan ""..mflll balw..n Ih. petll.. of .ven dal. ... Ineo'parotld ho" by "Ior.n.., II tM omc, ofllld .WI or sucbwwr pia".. _IFelld i8 WfIunltty tM boWl' ",not) andsllaU also, from time to UIM.IIDul said.. ud lJ\lInll be tI.lUy paMI. reMW aDd knp allYl. by pay",. tM nee.ulI")' pnrftlWftS aM ,I\I,,,s Oft \\K" policy Of poUC1.1'Jl ft.,., 1\01'11I. IIpk)eU)ll U\lWI""'. *u dun... iUW'UC'. or OIIIDY uwa III otIM, lI\lvr.'. ,.llid lilt ...... "' ''''....... 0< ...._ may olfm..... ro< _ IfCIInly 01.... _ .pot llIo bIIddl... IIllI ............... ~...nb&d III llIo ,",0"_ __""iAllIllIlOClIIIIIlIliI,... ,*,~ 01 ..y ,.h,.a 10', Ilf hll"l. II'ICted tMrtoa. Iud polk,.. of iftllUuctl)fwtwloeY" kUId lObe .......wtm 1M ..1" SWCClllOnOf ...,.... .....1IIlIO(...... b, prop..!y ................ _.. __... .'Ill__lilII__ ,1- ....1lIlI. .......y .....010 01...4 poU".....1lf """"1IolI....... ......I.MI.....(7)clay.llflOltlll. 0,v0ll0&0I I'" poUclOC III llIo "... 01 Iou 0< dam.... Ill. __ 0Il4id ..._ Ill&IlIlf "'" ... .... 110M, .... II ..............OlIj1u.....'omproau..I"'h Ieo. ,.,1lloW1IIt _01.......... ...coI_ ....1.. MIl....,,, r...,,,,a _.... III lilt ..... oI.w M111omlw", ond ...._ ........~.._ ."'" OIy __ 1ft poym... """",, S...b __ Ihollllf I(II>liod 10.lId ...._10...01 oIl.ON ......._ ot.....,. coIltcli...... _.. _lOW"" lilt PO,IN.' 01 011 ...-... p.,obla by _or ... ..... .....-. .... _..., llIo "'10'" 01 "'" ,ndo-' ltC.rod .roby 0< .., _w."", ._ 0<'" ilia $Ie.. po,"" .. ..,.. 0-' ",y appI, IIId "".nnco __ o<..y part IIItreof...llIo _....lIIuldilIIot....-. I.""'..... ot....ot"'" pro..... oa rotKloolllf, W ownfn"'p 01 011 poIle,.. 01.......... .1laII_...1Ie """h_ "........ MllIIorro." h...by _ ..... ,.. .......y-6r.... ,. 1Iorro.,~. ._ ... _ aM .....,.. 011 ....b poIle... ... 'llCa pun_., Tho Iom>wor.hollollop.y, _"""'........ ..........""-..._.~1Iy,.0II...... ._M11 ,,' ICWfI'l'IDU ud aUclWJll u4cllUftl UMlMUvt I.'"'' ~y WM,,,.....OI ftIwt...,. My 'I.nw I~" 101" lilt -PIId 11I'-, .",cD b, OIy p........ 11I....1.... 1....IlaII_,nonoy ..Iita.. "'_ ....IIe_ ,,"'....;.0 by 11I11 '*'........ .... MC\IIfd by .1Id '"'''''- .1In aM Mille _ ....._... MIl ,.y-' ...lIboll olooul\lill.... ..........,.............. OIl''', r_,,"rorolllU'" .-....---."" o"b...._ lOW ...n..... _fty, .. ""'oIIIc.ot....._.. ......_..... - ftIIl, ......" IIIlI " ........n..... .'llIuI....lyI201 d.y. ....,...., IU" ..._.. _...... _I.._,.y.... (-.- lilt IllPOO'IiotI 01 ,....., 01 "".0I1i.. M w.U .. ....llIlI r... 011_.........,..... .1_ ot ...ry 11IM MIl ......."'.,by .., pro...... 11I....1.... I... ..., Ilf.._ .1ita_1Ie_____, _1.lin. ,..4/01..._,.. .III'~ ..., Ilf"'_.... by..y pro_..lIaIIin 1....1awI, lInIdlIiMula...............,.,. .ble blroro ...4olfll<. "'" 0111I. """_ 01.., JIldlc,oI."'I'",,~afllill"" ..IO~.........._.... o,pa,U1.""lotlllo_lflIoo'OIY o<lIf, JIIlIIe'al..... ._.Y 1\o.....~_...y.IilaIlIllil"".. ' n... ,o'd: 0<11I......'0 ......n ,. 1Il~ rOtC' MIl'''''''' '11lf....__08II....... _...III__llIo,...,.otlle Borro.." aono.-.,s htln Of &III". to maU'lllUllald lftIW'uc. 1.1'" tie....... 0110'" lJiIIlIIn...., 1M ".,r ,..1"'. or otIMr~hll"', .;11111\101 Illna u lIonlucL 1M lulL 111.......01...... ru, I.............~ oj' P" IlICh W". *"" ADd "w.r I'1ftLl Qf' 011\" ell"..., el&YBIOf ,..... ....IUllIO..........,.... ."'111 ,....lIOn MIl UllpII, ,~oIl bf p.,.bl. by tII. _or, ........... lie," _..........."'" ._'11.....- MIl ""pII, ond .~oIIllf odol.d 10 and bocom. . pori 01 lilt prlDClpallM-.Ilt.." ........... .llaIIllfer ........ 1IIt_.. lh. r." NI (onfl lbo\O. lllIlU pl&d, rh, 8&J",Q"'rN~fnIUlU Ullo1.1cnn Tlul .'Ih In. p~\m.nl, ,'f p~n~:p.j .u'l1l~1""1 "!. .,011',)\ h) BoIJ'Ill. ~ ;rr 'uaponlon'l'th'lun. .u"Hm.nU.u'llJ InHIUJh:e prtmll.m, l1ut I" "'~IJm. ,Jut .l\"llfTIJlel.1 I'!\ III' 8~nll. ,,)1"<11111. !hnk ....111 hl\' tuffl":l,nl t\md,.:;n haniJ t" Pi" loLU\ oIucnmenu Uh1In\lH1rh':' p"mll.m\ Ihln.. :Ii~ Jo1\ \ ~f()r,:h. J~. Jollllhlrlof "n) J,tkll \nllllmm.tJl,JlIl~ I'f plld t.) a.na b\ 8.H1'o,.,t 'l.ml'\ Iv ntl\S 1"0111 M,.'I ",<<.ar '"lrr'H. .nl.H')I".,....". t'qulred b) I,,,, Ind, '..po" ,J.tJuIL mol\...... .applied t,~ 8..nll.m .....;u\lnt 11 th, 'l1""'U" ,nJ,l"lcoJnc\\ II ,n..UM th. r"P&Jn51~11l1" 'lllnt 8.)",,,..,t l~' I\lm'ln Ban. ....11l'! "tll. .n \ylti';ltnl ljme !., pll\ '.1'1\ ~r"rt :nt p,nall) .alta..:"" The 80tT"..., htf'ln ,11/'" lhal ,n lhl C\ ,nt Qllh, PI"".'. .&I1.t lhe J,"'~I \hl' SUI. ,'1 Jr'l\ I~" ,'I lhl \..' .'mm.:n. oloUltht,f PIIV\"I\.ll\I.J.. J.l.luIo:llnl Imm thl \.J.IIJ' 'lr t"lllI\l1 l.:lt lh, pur~" oJ! IUo1llon..lI1~ II.n In.rt.:ln. ,'r ":11<lnlJJnli ,n oUt) wi) thlll"\ n.:l" In IIlr" 'orlh. IVIlll,)n l)1' mQ"41," <Jr <J.bu ",ur.12 lhlrt~v !~r ,1,)11 8r \'\\:,J PUf"PlHU Jr 'fl. mllln'r Ollh. ":lJll""tl,m ,)1 &11:- \\JIo:h tlln. \0) Ii 10) ilSf.,t 1M Inllrllt 01 th. BW.lh. ..t1\ll' ')(I,al~ pnn';lp,1 \~m "I:ur.tJ b)' I~, ~t)t._ hl,elner Illilh lhlllnllrnt <Ju. tn.r.on. ~haJl. ,Ulh. opllOn ojr'lh. 8~nk. ,mm'l.llltlt'!' !'Iclo:vm. J~. 1nl1 pI)abl, Th. BlJPTo..,r h.r'ln /\inher '''"' Ihlll".1Il\ IMtlJlmllnl ,}llnllrnl be nOI PIl<J ..1'I.n IJIJ', \\J,"nln,tallm.nl \hall "'U".lnl.rUI al Ih.ra" \II "lnh .bo\, un III Pi&!~ In th..\.nl Ihal An) pa.,m.nl pr()\Il.l'iJhJr l1'r'IM Ihall t1t<.;<.Jm. ~'.. :... rot" ptnod In n..:.u ,)('H~unl I ~ I ..1'\1. BQrrowlr I"'"to PI., a "Iat. ..:hl1ll11' ,;fFI\' ..:.nU,~' I 10t ..1..;1'1 o.!llllu \01 'l~.rl1u' lor th. pUI1'OU 0' J.!rl~I"I"j)4n". Inlo:ld.nltl,l huu,SILllltn. J.hn~u.nt PI.,m.n1 ..'nl.ll'unh.r BOrT"...r ..".n n')llQ ..:on\.) ,Jr ,JII'IINIU tranll.r 1111. I IIllh.r l'lll 0r '~Ulllbl'.llJ Ih. pr.ml'" >JUIo:ntctJ ,n lh. m~'I1III' \IWmnllhll NOl' "III'IIJUI pnot \~nn.n ":IJn,lnl by 11'1. Bl1l'TO"lIr tl) the 'j)4l:I"Io: tran,l'.r A lto1lutu IIllhe ~u,... \~0' .)r JI\I"" 0t h.ln 01 the BorfllVlltr In Ih, .~tnt 0' BIJPTo....r 1 Jlltn ,hall not ..:om. .lll'Iln tl'l. prohlbllll,Jl'l 'llulU _o~'"lI\l PROVIDED, HOWEVER. anl.1lt \1 h.reby upu"l.., lpctd thillI'll any tLmeJ.f.ult b' m"Il'ln ~.\m.nl 'If \114 pnnclpal, \um. 0r o( an.,. InSUdlm,nIO(lrH.rfll or pnmlum' Qf .nsuran". IS afOt'U1l1 lor tit. 'p.It:.1)1 l...nr:-I :01 JIY'. OrQ(anYIUII, "'".r Illd,....trr.nu. mUIUlt:lpaJ I.....m."uor It:hll"" U"~ltd"IIIlS1~tll~nth. m-.Jl'1I.,.11 pr.ml'" II &l'or'llJd.or In) pan tn.reof. Ilr In Ih. UhlblUl,)n lJIth. r.e'lP'J (0' lUll An4 ....t.t In4 stVIIlr rln1l an<J III .lUl.r I.... or ell III" I)' clllms 1/0n'lId. on Qt be(or.th. um, h'rllnal\lr sptl:lt1.d rotlh' 'llh.btuon Ih'reQf. for th. 'P.UtJ(t...ntyl 20)I1IYI.lh. "hol'of Slid p"n"pal, d.bt or lum IQpth.r WIth all pr.rruum,Qr Inluran". lUll. O\ller ,Jnd Sf...1t r.nu plld ih&lllhtrlupon beeom. .ju. and pIYlbl.. andJudpn.nt mlY be .nltred and '.11'111101'1 mIYI".... '-0""...10'1 (ur th. ~olltcuQn ol'tn. '1m" &nO 111 Inttr"lll'ltrten.lol.thtr '*Ith all (.IS. ":011.1 and upen,,, o( Io:lJIII<.;ttn. the l&m., .nch.\l1'"'lI1lnomIY I CQr"'IUUlon I)( n". per Clnnun I "t. lI1yUun, hltlln ..:onlllnld to lh. ~onlt&l)'. nOMlthltandJ.n.. In Ih. .".nl o(lJ'I. laIL1n.ot all or any pQf\Ion o(th. preml.1I dllcnbtd In the mQ"PII tllCUnntthJI Noll In any proclldlnp un1tr thl po...r of IImln.nl domllA. lh. .nu,.. ....1Id Andlred lIl.uell proc.tdlllll 'hal be plld to BanL to be 'PJlhtd to"'"~ rllmbun.mllnt o( 11II:OIU and 'Iptn... of Iw In r.OMKtlon wIlJ'Il1ld procllllc1lnp &nd 10"W pa)m.nl r.)( IU amounll plyabl. by BotTo..., to lank u.nd.r t1'It mon.... MelOni'll thn Not. and toww \h. p*ym.ftl lj' tilt U\!J.bttdn..1 ",,,by 'ICUrtd. or lilY porIlOft th.rtof'. ...h.UWror not thtn due orp.y.bl.. or Bank It III OptlOI\ m'l appll .1Id '''anI. '" lilY pan IIltrool. lD lilt _ '" ...lIwIdint at.... pnt1\INI da..,bod 1ft .1Il! """'lOtI' AnlS 1111 h.rtb) declared Ul.tltu. obliJluon II ICl:OmPWtd by Indlnrvrt o( MOf"lPI', ol'~ln dlt. h.t'''IIn. mid. btrwlln Borrow.r and lIid IIN. MCUrtd upon real ""11 'INIled In Lbt ~ of ",-, _ "'--., Cclmy 01 ~W1d. c...,_ nlth of "*-Yl...... _., 115 11II ~01 St. J_ 0aIrcIl _. C-.>> 1lU1.'A 17011 In l&ad IndtnNl't 01 MortaaII mort plnu:ularly dtlcnbecl, and i, IUb,KI to IU 1M tlrma and ~ondlllon. of IIId Monp.., llNO 'II0VlDEO 1IInIla, UId II .. ",...by I/llI Ulortby .._.Iy 'If"" tIIa.,n Illa ava" oIlnl b,u.h by BarTOW", oIuy COVlaam. condtCMXI Of ....meftl 01 tNI obllpliOft. Of 0I11ld Mon'.... II Ihall be la..ful (or lht aw,o "11' .pon 1II1/ll1......iar tlIe 1_, buddinp I/llI pn.._ .....11II by .1Id M""".. '0 ....... IN. obh.. tlon. lOp\hI! WI'" W IWrtd1ta1D1ntllDd tppUIttftanc.el. W'lGh and I",ry pat1 IMltoI.1lMi1O W:'poIH..lon or'thl saml and 01 tbll\ntnt. IpplilllC. IDd tqUlptnlIn. """ill conlAUled.. Iftd to hl"l. hakl. man.... I.... 10 t1'Ie BorTOW., Of uy 0Ihtr ptnOG Of ptnOIIII, \III lid.,.. the'lIM l,ft luctt parull aM on .\aCh ('mII and (Of IliCh panodaatlime "'1lIIi may, ,n lIla ooledllc...... at.1IIk. dII"'_r, tlIe _.. ..."in.llllllo"".... .hlll and wilL ...twnt"" I'IqUlltId by Iw 10 to do, Uti'" "witt and dlli"" unlD laM any l1Ieh I.... or l\abl.u.: and to ,01l1Cl1/lll....". III "'.11, 1111II' and prol\lI of """.1Id _. .....11II co ....... llIla obllp_l/llI..ary pili th.l'fOtl (ot wl\ach WaoblillllOlllhaU be I.ufftcila. wurlD& w",*," M """ I~b l.uI OI.ubl.... hu bretn ullpld to M"""... and co _".",. WDI,lDlIJllO 11I11II_, ........-, ,.,..,.1/llI ...pI_nll tlIeraco II may ..t.. J.d&C1"'CO .lIIk.and _ _.....tlIe _ at IDY 0111I Nch ......\ICIDI, .......011I, If"'" and ...pI...m..lland llPO_'_CO lIllin.and ,1WIIin. pol........ oItl1e.1id proptfty I/llI tlIt m......... and oparalion tII....,. and k""n. tlIe..... _10) INIIIOd.CO 'PIlIY tlIe ...._ of'lICh ,...., ......1/llI pn>llII, III.y, .."ID. 1I1I....1Id. 1001. ptymtlllotaUt&i.. ct\araft, ,11ImI. U.......,U.. wlIlIf Md..w.r'lftulDduy .rU.nad'tllmlY be pnor", heft Of ptyMIIK lG'ud MOft.... or tNI obUaaoon ud,reftUUIftI (or Iud iftlW'lftCl. wM In""'1 tMrtOft. or to OM ,nil........ ",IIC'pal due ._ llll. obll...... I/llI _ by UId I_NIt of "lOII_, w,llll11 '0111 and .""'. nlY'. r.... Nch onlar.. pnOIIly, u'lIIk... tlIe toll dl........of.1IIk. may dII4"",....y '\lNII, law, ,,,"com.. ... co lIla -.ry """,,_nJ ,. be... ..pnuly ....... """'.... tlItl tlIe ....... of _.ion by .1IIk. .n" tIUS Pf'OVtIMMI. Ihlll not rth.."lfty deflult whle" rillY hi.' beln midi by Iorfowtrl ~r PrI""U 1M tnl'orc.mtnl of any oItl1e..- by 1llI. obll......'" _y,n. W...... of "'_y ..at.IId..= "...,dad ..c... nf'lICh d.rlUh; and"" """"'''pIOuly WldImoodand.... t11l1tl1eramldl" by IN. obli.. and W...... of "nom'Y and .Iid IndI.N" pro._ r.. lIla .oI01um... at tlIe PlY"''' 01,,,,, pttllCtpal.... .....,11I by .1Id "lOft....' IOIlIhlr wi'" I"....... tMl'IOI\. u htr''''bI(ort .pec"'''' ..... (Of "" ptrfonnlftC. 01 tJ'tI COIInft_, eondllKJftl 11I4 ......""nll, min." and """'II h.NU1 COftwned. Of l,ft laid Mort.... ref"," 10, IF' eumullunw ~*ulTWn. and may be""...1IId IInlly '" ,.","""ty at co..."., II tlIeooledllC.......oItl1e.uII ""'...y be...",ud II 011.. u OCl:UM)ft lJ\Irefor .h&U OC~UI IINO ror tlIe "".,.,.. at ""lnn,,1Id _uion 0I.1id _~ pmn....co...... in tlIt ...nl or IDY br.lCh ..lIo'nlld.lorro....doa. h....by ..llIonuand'mpow....y ........y at..y COlIn atCommon PI... ,nID, COIInly \J( lJ'l1 CommonwIIM of'.Mlylvuul, or of Ifty oIMt eoun thtrI or IlMwtwr.. U IUOI'INY (Of Ionow". u ..11 u ror In penon. c1aunutlllndlr. by. Of tIvoup Ion'owtr. 10 1111. ~I (or .nll"", 1ft any COIIIpeI"" tGUn III ....ubl.......... ')IC...n. rorpoall.."",attlle pIOml........lod by.1Id "lOft_"OII'IIIr WI.hlllah..ldl__nll and "","Inanell. u w.1I u .u Ibtultl. IppIlUIC. and eqUipment 01 MY nlNt. whlllOl"", ItOW Of lMr..A" In,l.&Iltd IlI'Oft or In .&ad monillid pt'lm,... (WIO'touI an)' IllY of..,CUIJOftOf .",,11) ......., .lId torro-It anG all "'''ON 'I...... .ndlr, by or UvouI/l '"""w..1/llI tlIe...,n cont... JIId_, ror tlIe 'ICOvary by'''' 'UIIl 01,,,, poll.IIIOII ollh. Slid monillid pAml". toptlWr w,.,. UM h.t'tdtIUIIIftII and appIftIftllC... u w.1l u.u ft...ur... .pphan'tI and equIpment 0( any nleur. *I'lIUOl.,,,. now or ""re""r lIuwled IoIpon or 1ft IIId monillid prenuH'. (or .111'" Ih,. .,"11'111"" I oJI' I';"P~ th"llJf ~t"ll.d b~ .uftdl'l'ltl '"III be a l!.ill\'l'"' "'arrant. ,..I'l,u~pon ,I '1'1, aanll II) JUI'''. 01 Wnl"i P"u,uu)n may t,e ,ulJ.d hll"'l:h...uft. "'lthOUI an., pnor "'11." prlXUl1lnl Iloh'U(l'~'I', 8..,1'1")".' her,tI., ttlUlln,.&rId ..",tll"lIllJr,l.nl tn. B&I\I. from "llllTon And d.I'.'tI....".uot~.r In .nlfnn,lI.;'''' .....:110" An~ ')I' ,lJlJIf",nl J.nd ,n .:al.i1unl UJ,.." '.nt0r ..nU Il) bllul.ltd. and In.allY prlX'~lJ\.t".rto" <Jr..:"n"nun, tl'l. ,,am., .1lIIJ thlft!)., ..",uln,th,at no .nl 'l'ClTCr<ll'vb'C"lhJn '''&11 be mw.", I....." th.r,Io. pro"'d.llthlt thl Bw ,I'I..III1~\. rilelt In \u,hal:tllJn .an Ufh!I" It ml..l. b\ 8&1'11 oJ, 'iJm.on.lJn b.hlir"flllli If"'''' ("nh tl1,I.,U "....nary 10 '&l.ilhOM,If lhl '"Iry III ,,,,,..I1,lJoJ,,,,.nt. J.:..~fdln'llJ lh. l.m",JI Itlll "JbIL,IUt,)n. IJt ..I'll'" ""LI lu,n ,l,fhta\lll ,hall be' ':""'1"'.'" 1\ld.n.:. "nd 8.>l'To\ll,r ,hJU h,r,l)y .mpo..., 11'11 .",(tom'lI 'Jr IAII CllUn or Record. ',,"111'1111 the L.'Rlt.iJ Slolt.. v, ,I"..h.r..lo ."pur Ill' 8IJI'T0....'r In iM I.: <.l~n. and ..uh iJ, "",tJkJu'. decl.,.uon ril'd. ';iJlU'.uJul1.,m.nl lJr lu.J.",.nll II~nll'll"o..'r. 9IJrTow.r, h'l" and uI'IN. In "."0' lJl tJI, ..,d 1&I\i. Ilr III IU"'''IO''IJr UIIIJ'lI. II <.11 In) I,rm, t<Jtlh. abr,)... pn"'lpaJ lum. IOI,l.htr \lI1l.ft 'IJIUl.l' lUlL "'4 mom')'. .;omrNII'On IJrn.., per.;.nluml ~'lt,l for .,:,:11" tllJn. on ","'.:It Ju"s"".nL Utl.':Ullon <Jr 'l"UUl)nJ mlIlIUI,I' forUt"lth, l.ln flilu.. to .:omply ..Ill'! IA) <Jllh, .,;.;ondl(10n. .)IIIu. No"~ h.reby ....IfI".ln~IUlluon and .:ond.mnauon l't' any p'OJltrty I'''IN ...pon b) ~I"u,of an) lu.:h ."..u. tlOr\, Utd 1110 ..1i..'n.IlI....mpuon lrom ,,~ and.ll. on 1ft) propl"'lIlltl' now 'I <J,tJtllh,,,att,,ml) M .,.mptt"s .onder 4ft)' A.:t orU'l. AII.mbly. and wuh" r.l.u. of &11.lTOn. "'NO PROVIDED Fl.'RTHER. ut4 1111 h."bY uti!th....bll..P"..I'lI .:0".nanl"an4 ."..dlhiI1n 11'1, .~.nl 11'1"'11 morllhan I)'" plI"fY named h,,"n u . 90"ow". lI\1l1n~III"I"d. "Iorro..,(', ",-P"n"., 'X':UITI", h.r'ln, 11'1.11 be dllmld and tlk.rt to mun the plura1, AND PIlOVIDED fURTHER. t!lll ,,11 .:o","""u. """''',n. l'puon'. IlIpu1luonl, prom,..., \lnd'nulnp. .....m.nLl. a.nd "af\LI &nG lMnll1u ,,"In to. MOobhl"uona Of ltab,Uun Impottd upon. .ach and III <lI" III~ 1'&111" hll'110 .hal} U1UtlIO "'4 bind tJ'I.mJolnlJy and ""'fajl)' and IU, Iu.. h.r. an4 th'.f, &nd 'Wh o( lh"f rupttr:t1.., n'I". '''C\llOtI. wnunlllrllM. 11,I,:,,"on .nd ...,..... ""'",rpl _ ... PNlltIM. W\1ll~~Sl - . 6r , ~ -- - ~i//,~. II '~._ .- :, :-- lSIALI nllvldll&l.ly ISlALI __ , SIAL) ya,-- aMUII ..m~ savICIII. DC.a .....?"'~:~ . ~ ~ ....J.dInt - .,/ - " 'J /'9' !~/"".rJ c. ... J SIlnt.-y '....1 L \ ~ " ,I j' " I ' I, r \ ,I ," "".~ I, I ,0 " I';, "'i 1.1 I' " ", , , ,') , I' " I' II I i " " I: , ,~, ,I ' I, , Ci) I I ! I I i " ," I., , I I!\ ~ i 11'-, Ie ,I ,,', ,', " ,I " iii" , , I; " ',.," ','" I, , " TIll. AG""""j ,lof.d. t"1, ~6r:h d.y at FebrulrY ~O.TCAcr NOn ~NI) ~O.TCAcr ~ODIFICATlON ANI) UTrNsrON ~c.nMJ~O I~,~,~ 12 ~,l ~~ 57 PUt:lt1 ot t"e seCond Plrt. .nd b""..n CCNI S.nk, N,~" P'.,y of tn. It... P''', ..d Cot..." . H'..r Pot..". A. 0" 1990 I 0;'- secure o"e ml1110n T!1ru I'tundr'd Forey thol.lund 'IIIIW. .h. porev of 'h. H... por. .. .h. P...... hold.. of . ""Un bon. '0 . Il..n b. .h. p'r".. of .h. "'on. p.r. '0 CCNI S.nk. N,~, d.... .h. Dall.u (Sl,)40,OOO,I.)O OCtober 1985 . whLch I. ..cu.... by . oort.... boo".. Ilk. ..... on lllt dn ot d.y ot Iud prUI1U, th.rUI1 ducr1bed, recorded 1n Cu.b.r1Ind l'Iov'lIIb, r 19.. , 111 ~ortl'" look ~ COl.lluy 011 the lu bond .nd IIIQrt...., end .0...... .nd hi" Uk... .h. P'''y of 'h. fl... pu. '0 ,o"lfy 'h. ,'... ot .h. 'Ud 1lll1IIU. .h. pun.. of 'h. "con" p... or. .h. 0"",,, of .h. Ill. P"'lou '0 921 Pt,e ':t on. 'ud bon. .n.. .0...... upon .h. ..r....n. ot .h. 101" PUtl.. '0 "0 WhU I. h.roln.t.., 1lll1LU. .h. 101" P'''y ot 'h. flu. pu. hu con..n.... '0 '0 ".lfy .h. ..... ot "l)eClu.d. IIClIl TaU All"""" MITaI.Rft. 'hot I. ....... by .n.. b.."... .h. PUtl.. h....o I. conUderll:lon ot the P"_h.. end ot INCl..! pre.he. " fOllo"" 1, rho p.r.y ot .h. fir.. p.r. h.'.by .,r... '0 ...... .h. ...url'y '.d 'odlty .h. 10.'hl, 1....11..... ot P'I..I,.I '.d In...... ot .h. wi. hi. /lion.... It th, H.. Ind 1n thl &lnn.r " fOl1o". .. VH. three ye.u .nd .lev.n ~nrh. tr~ 4.r. h.rlof. r~. ~ft,.l. PrinCipal '1.1. ot S 1.321,570,'3 Ind inter..t th.,... .. I~. ".. ot ... .n.. on'-h.lt ( lali') ,.. .... "' .._ .. .. P.I.. I. 'O"hly 1n'..ll..... ot rv.I.. .hou".d .1. h'.d.., .11" I~. . 2~tfO .011... ( 112.664,20 ) CO_.C1., O. Ih. tlr.. ...,., III... " " 19 90 t .nd th.reafur I likl Inll1 .i.4&1r '.""1, n .11. of .ach 1II0uh until prtnclp.l 'nd tntl".. .r. fUll, ,.,.. he .., , , I;~~ 377 lAC! 641 ........ ,\ CUKMONWIALTH or '!~~SYLVAN[A, COUNTY or CUMS!~LA~D ." On th. ~c., ~IV of P"e.e~~\ ,l990. btfon mi. tnl undlrulnld offLcer. l).nondLy .o"und OAVID M. MACIR and ltOlllT ), COUI::t, wl'lo ;cl.nowlld,.d tl'llmuL..,., to be ClnlraL Partnln of COLAIZZI AHD HACiU PAlttftlS. , Pennlvlvan... putntutHD, .nd that thlY at luch ClnlraL ParCntrl, bun, authoUlld to do 10. IlCIcut.d the fon,oLn. tnHfUlDlnt for thl purllOU' th"tLn conuLntd bv u,nLnl t!lt n.ml of th~ partnlrlhlp by thlm..lv'l .1 Ctntral Partn.r., Notary ...L. [1'4 W['t~US Wltlun, , [ M,,'.unto lit my hand and ~ COHMONWIALTH or PI~~SYLVAKIA, "' COUNTY or CUMU~LAlI1l On thil tnl d-~ da" of fUt~\..f . L"O. blfon ".1. thl lJnd.fI\lntd oUt.c:u, p.non.1Ly IP'PI.nd DAVID M. HAGEl, \l.noVft to III (or IItUflnouLy pro",n) to b. thl plrlon vhO'1 n... La .ubacriblcl to thl vHt\U lnltru.lnt, and Iclcnowltd"cI that MI Iltlcuttd the .... for thl pur,o... tht,,,n contli.n.". [~ WITKISS W1\IUOr, " '"r:. '.I)" ..":' ,",' '. COHMONWIALtH or FlIlNSYLVAKIA, "' I ( I I' f. COUNTY 0' CUMIUI.AND Oft ,hi. ,h. .:1(" d.y .f '~"V""'"1 . 19.0. b.fo.. ... ,h. .ad..,II_.d officn, plllonllLy .,pluld 10lUT J. COLAUZl, known to eo (or u.UfluorUy ,ro".,,) to bl the ,Iraon wnO'1 n... ~. ,,,b,nt.blct to thl viChtn tnanuMn., In. ICknowltd". cha. hi IK.cuud th. ""1 for th. plolr,ol.1 there1n conuine.. l~ WITKISS wHIUOr. Nol r, ~ My ''''l.~loft ..,1 (SIAL) " .. ~.", ,'. , "~I r. t,....'...M Glrtlllt ';,.,., He"", Ill,. NfIf c:.'"'c,....Il.. C"........cCf!IIIW I,t'j ::o."1lWI fl.. "If', U ',. ' Yvt.. 'W'~'~'''''''UI''' ~t'W.,. . , " '. :,~,. ",' II ':'i: ,,1 ,,," ( '" " !;1l 377 ~ICI 1J:3 i ,i , I, , , illl " ,I, , " " @ I ,I , " , , I I \ " ,J , , Ii " ',' " 'Ii " , I I \ 1 L ~~" I I ,.. \ " , i l' ~, ~ l"" , , I ,~ I II I I 'I . ; ~ I ,~ ~~ t " I I'i' '} , " PO.BIARAHCI AGRIBMIHT This Forb.arance Agreem.nt ("Agreement") is made thil 1(' day of June, 1992, by and between CCNB Bank, N.A. ("Bank") , Hager-Grandon Insuranc. Services, Inc. (th. "Corporation"), Colaizzi and Hager Partners (th. "Partnership"), David M. Hag.r ("Hag.r"), Robert J. Colaizzi ("RJC"), Jean E. Colaizzi ("JEC") and Consolidated Insuranc. Group, Inc. ("Consolidated") . Th. Corporation, the partn.rship, Hag.r, RJC, JEC and Consolidated are sometimes each individually referr.d to herein as the "Borrower" and coll.ctively referr.d to as the "Borrow.rs". BACIGROOllJ) Und.r the terms and sUbject to the conditions set forth in that carta in Loan Agreement dated October 31, 1988 among Borrow.rs and Bank (the "Acquisition Loan Agreement"), Borrowers are currently indebt.d to Bank tor the repaym.nt of various loans, advances and extensions of cr.dit made by Bank to or for the b.n.tit ot Borrowers under a certain loan facility (th. "Acquisition Loan") in the original principal sum of One Million Thr.e Hundred Forty Thousand ($1,340,000.00) Dollars, which indebt.dne.. is further evidenced by that certain Mortgage Note dated October 31, 1988 in the original principal sum ot One Million Thr.. Hundred Forty Thousand ($1,340,000.00) Dollartl from the partn.rship, Hager, RJC and the Corporation to Bank, as amend.d pursuant to a certain Mortgage Note and Mortgage MOdification Extension Agr....nt dat.d February 26, 1990 by and between the partn.rship and the Bank (collectively the "Acquisition Loan Not.") and for the repayment of a certain loan tacility (the "Working capital Loan") in the original principal sum ot One Hundred Thou8Ind ($100,000.00) Dollan, which indebt.dn.ss is fUl'ther evid.nc.d by that c.rtain Mortgage Not. dated Octob.r 31, 1988 in the original prinCipal sum ot One Hundr.d Thousand ($100,000.00) Dollars (the "Working Capital Not.") frolll Borrowers to Bank. Ae collateral s.curity for the debts, liabilitiea and obligations of the Partnership, Hager, RJC and the Corporation to Bank .videncsd by the Acquisition Loan Note, pursuant to the terms and subj.ct to the conditions of that certain Ind.nture dated October 31, 1988 trom the Partnership, the Corporation, Hager and RJC to Bank, as amended pursuant to a c.rtain Mortgage Note and Mortgag. MOdification and Exteneion Agr..mftnt dat.d F.bruary 26, 1990, betwe.n the Partnership and the Bank, the partn.rship, Hag.r, RJC, and the Corporation granted to Bank a first lien on and security int.rest in and to certain r.al property located at 115 and 201 St. Johns Road, Hampd.n Township, Cumb.rland County, Pennsylvania (the "Hampden Prembes"), which mortgage was recorded on Nov.mber 1, 1988 in the otfice for Recording of Deeds in and for Cumberland County, P.nneylvania in Book 921, at Pag. 721, At aag. II_I As additional collateral s.curity tor the debts, liabilities and obligations of the Partnership, Hager, RJC and the corporation to Bank evidenced by the Acquisition Loan Note, pur.suant to the term. and sUbject to the condition. ot that certain A.signment of Lease dated October 31, 1988 trom the Partnership to Bank, the Partnorship granted to Bank a lien on and security interest in and to all leases ot the Hampden Pr.mi.e.. As additional collateral .ecurity tor the debts, liabilities and obligation. ot the Partnership, Haqer, RJC and the corporation to Bank evidenced by the Acquisition Loan Note, pursuant to the terms and SUbject to the conditions of that certain Security Agreement dated October 31, 1988 from the Corporation to Bank, the corporation granted to Bank a lien on and security intere.t in and to the Corporation's right, title and interest in all inventory, machinery, equipment and a certain Ponnsylvania Liquor License No. TR-19823. As collateral security tor the debts, liabilities and obligatiQns ot Borrower. to Bank evidenced by the Acquisition Loan Note and Working capital Note (collectively, the "1988 Notes"), pursuant to the terms and SUbject to the conditions of that certain Collateral Assignment of Lite Inlurance Policy dated October 31, 1908 from the Corporation to the Bank, the Corporation collaterally assigned to Bank Continental Assurance Co.pany poUcy No. insuring the life of RJC in the principal sum ot ($ _I. - As collateral security tor the debt., liabilities and obligations of Borrowers to Bank evidenced by the 1988 Notes, pursuant to the terms and subject to the conditions ot that certain Pledge Agreement dated October 31, 1988 from Hager and RJC to Sank, Hager and RJC pledged to Bank all their right, title and intere.t in and to all i.sued and outstanding .hares of stock ot the Corporation. J.s collateral security tor the debt., liabilities an4 Obligations of Borrowers to Bank evidenced by the Workin9 capital Note, pursuant to the terms and subject to the conditions ot that certain Indenture dated October 31, 1988 troa Borrow.rs to Bank, the Borrowers granted to Bank a third lien on and security intere.t in and to the Hampden Premt.es and to certain real property locatlel at 201 St. Johns Road, Hampden Township, cuaberland County, Penn.ylvania, (the "Adjacent Parcel"), which mortgage was recol'dlel on November 1, 1988 in the office tor Recording ot Oe.d. in ,and for Cumberland County, Pennsylvania in Book 921, at Page 735, 1$ .... Borrowers are also currently indebted to Bank tor the repayment of various loans, advances and extensions ot credit .... ' by Bank to or tor the benefit of Borrowers under a certain loan 2 " 'j I\i :1 'j.!: It,! , ,-~ "\.1- l' \1: , \;. If_I tacility (th. "Second Working Capital Loan") in the original principal sum ot One Hundred Thousand ($100,000.00) Dollars, which ind.bt.dn.ss is further evidenced by that certain Note dated April 6, 1989 from Borrowers to Bank in the original principal sum of On. Hundred Thousand ($100,000.00) Dollars (th. "Second Working Capital Not."). A. collateral security tor the debts, liabilities and obligations ot Borrowers to Bank evidenced by the Second Workin9 Capital Not., pursuant to the t.rms and subj.ct to the condition. of (i) that certain Mortgage dated April 6, 1989 trom ths partn.r.hip to Bank, the Partnership granted to Bank a fourth li.n on and ..curity interest in and to the Hampden premises, which mortgage was recorded on May 7, 1990 in the office for Recording of D.eds in and tor Cumberland County, Pennsylvania in Book 975, at Page 1066, At ~.; (ii) pursuant to the term. and SUbject to the conditions ot that c.rtain Mortgage dated April 6, 1989 from the partn.r.hip to Bank, the Partnership granted to Bank a fourth li.n on and ..curity int.rest in and to the Adjac.nt parc.l, which mortgage was r.corded on May 7, 1990,in the office for R.cording ot D..d. in and tor Cumberland county, Pennsylvania in Book 975, at Page 1068; At ~.; (iii) pursuant to the terms and subject to the condition. of that c.rtain Mortgage dated April 6, 1989 from RJC and JEC to Bank, RJC and JEC granted to Bank a tourth lien on and s.curity int.re.t in and to c.rtain real prop.rty locat.d at 42. Lamp po.t Lan., Camp Hill, penn.ylvania (the "Lamp Post pr.mis.."), which mortgage was recorded on May 7, 1990 in the offic. for R.cording of De.d. in and for cumberland County, p.nn.ylvania in Book 975, at Page 1064, I!. 0Sl.; and (iv) pursuant to the term. and subject to the conditions ot that certain Mortgag. dat.d April 6, 1989 trom Con.olidat.d to the Bank, Consolidated grant.d to Bank a third lien on and security inter..t in and to certain r.al property locat.d at 5020 Ea.t Trindle Road, Mechanicsburg, Pennsylvania (th. "Mechanic.burg pr.mis.."), which mortgage wa. r.corded on May 7, 1990 in the otfic. for Recording ot Oe.d. in and for CWDJ:l.rland County, p.nn.ylvania in Book 975, at pag. 1070, At -.g. Th. Acquisition Loan, the Working Capital Loan and the S.cond Working Capital Loan (her.inaft.r, the "Loans") are in default by virtu. of, but not limit.d to, Borrow.r. failure to make monthly payment. pur.uant to the Acqui.ition Loan Not., the Work!", capital Not. and the Second Working Capital Note (coll.ctively, the "Not.."). A. a re.ult ot the default., the Bank ha. accel.rated the balanc.s dU., demand.d payment and cont....d judgment in the Court of Common Pl.a. ot Cumb.rlan~ County, Pennsylvania. Th. Borrow.r. have r.qu.sted that the Bank tor bear f~oa the turth.r .x.rcise ot it. rights and r..edie.. Th. Bank ha. agr..d to torbear only upon the t.rm. and condition. hereinaf~.r s.t forth. , I I ( I I , I I \ ') , " , " 3 .-. incorporated intending to follow.: NOW, THEREFORE, with the toregoing Background deemed herein by this reference, the parties hereto, be legally bound hereby, covenant and agree a. 1. The indebtedness evidenced by the Acquisition Loan Note, the Working Capital Note and the Second Working capital Note i. hereby as.umed by each Borrower. 2 . The Borrowers, and each of them, acknowledge and agree that a. ot July 1, 1992, the Borrowers were indebted to the Bank under the Acquisition Loan Note as follows: principal: Interest through July 1, 1992: Total as ot July 1, 1992: $1,313,464.99 153. 461. 39 $1,466,926.38 together with subsequent interest, cost. and attorney.' tee. a. have accrued and may accrue pursuant to the terma of the Acqui.ition Loan Note. The Borrowers acknowledge, ratify and confirm that the foregoing described indebtedness i. matured and immediately due and owing without otf.et, claim, deten.e or counterclaim of any kind or nature. 3. The Borrower., and each of the., acknowledqe and agree that a. of June 22, 1992, the Borrowers were indebted to the Bank under the Working Capital Note as follows: Principal: Intere.t through June 22, 1992: Total a. of June 22, 1992: $100,000.00 5.687.50 $105,687.50 toqether with subsequent intere.t, co.t. and attorney.' fee... have accrued and may accrue pursuant to the term. of the Working capital Note. The Borrower. acknowledge, ratify and contirm that the foregoing de.cribed indebtedne.. i. mat.ured and illllllediately due and owing without off..t, claim, deten.e or counterclaim of any kind or nature. 4. The Borrower., and each of the., acknowledqe and agree that .s of June 12, 1992, the Borrowers were indebted to the Sank under the Second Working Capital Note a. tollow.: Principal: Intere.t through June 22, 1992: Total a. of June 22, 1992: $74,074.40 1.269.!JI $75,343.98 4 -' II_I toq.th.r with sUDsequent inter.st, co.t. and attorneys' r... a. have accru.d and may accrue pursuant to the terms uf the S.cond working Capital Note. Th. Borrow.r. acknowledg., ratity Ilnd contirm that the foregoing describ.d ind.btedness is matured and imm.diat.ly due and owing without otts.t, claim, de tense or count.rclaim ot any kind or nature. 5. The Borrowers, and each ot them, acknowledge and agr.. that it and to the extent any of th.. maintain any det.nse. to th.ir r.sp.ctiv. obligation. und.r the Notes or any related in.trument., docu1Dents or agr...ent. (collect i v.ly, the "Financ ing Agr....nt."), that those detens.s are h.r.by waived and r.l....d a. a sp.cific condition ot this Agreement, which waiv.r and rel.a.. are unconditional and without limitation. 6. The Borrow.rs h.r.by ratity and acknowledge the validity and binding nature, both at the time ot d.liv.ry and at the pre..nt tim., ot the .ortgages and related and other a..ign.ents and s.curity agre.m.nts as more fully d.scrib.d in the FinancJ.ng Agree.lInts and the Background ot this Agr.em.nt. 7. Borrowers hereby ratity and confirm the validity ot the tollowing judqments: CCNB Bank. N.A. v. Colaizzi and Haa.r Partn.rs. t/d/b/a Giaal'\t. Restaurant. David M. Haa.r. Robert J. Colaizzi. J.an E. Colaizzi. Consolidated Insurance GrOUD. Inc. and Haa.r-Grandon Insurance Servic.s. Inc., Court of Common Pleas, Cumb.rland County, Civil Division, No.. 1298 and 1299, civil 1992, and CCN8 Bank. N.A. v. Colaizzi and Haa.r partn.rs t/d/b/a Giaante Re.taurant. David M. Haaer. Rob.rt J. Colaizzi. Haaer-Grandon Insurance S.rvice.. Inc., Court of Common Pl.as, Cumberland county, Civil Division, No. 1300, Civil 1992 (th. "JudqDIents"). 8. The torb.aranc. p.riod will run from the date her.ot through April 30, 1994 (ths "Forbearance p.riod"), on which date, all indsbtedne.. of Borrower. to Bank .hall be, without notice or de.and, paid and sati.ti.d in tull. How.ver, provid.d that there have been no d.faults und.r the t.rm. ot this Agreement during the Forbearanc. PeriOd, th.n upon the Bank's sole and absolute di.cr.tion, the Forbearance P.riod shall be extended until D.cember 31, 1994. \ . " 9. Int.re.t on the Loan. shall accru. and b. payable at the rat. ot eight and on.-halt p.rcent (8;') per annum during the Forbearance Period. 10. Borrow.re shall .ak. the following paym.nts at the Loan. during the Forb.aranc. P.riod: (a) From June 1, 1992 through December 31, 1992, payment. shall total One Hundr.d Nin.te.n Thousand ($119,000.00) I ~. 5 , .........' 11"'1 Dollar. and shall be made pursuant to a w..kly schedule of payments submitt.d by Borrowers, SUbject to the approval of the Bank. (b) From January 1, 1993 through December 31, 1993, paym.nt. shall total Two Hundred Thirty Five Thousand Seven Hundred Fitty Thousand ($235,750.00) Dollars and shall be mad. pursuant to a w..kly sch.dule of payments to b. submitted by the Borrow.re, subj.ct to the approval ot the Bank. (c) From January 1, 1994 through April 30, 1994, paym.nts shall total Sev.nty-Eight Thousand six Hundred ($78,600.00) Dollars and shall b. mad. pursuant to a w..kly sch.dul. of payments to be submitted by the Borrowers, subj.ct to the approval ot the Bank. (d) In the event that the Borrowers are unable to make paym.nt. pursuant to the budgets as provided in SUbparagraphs (a), (b) and (c) abov., on a w.ekly basis, th.n Borrow.rs .hall have a thirty (30) day grac. p.riod in which to pay any deficiency. In no .v.nt, how.ver, shall Bank accept le.. than nin.ty perc.nt (90') of the budgeted amc~nt in any given w..k. The d.fici.ncy which may be paid in the tollowing thirty (30) days shall never exce.d ten p.rcent (10\) ot the budget.d amount. (e) All paym.nt. mad. pursuant to Subparagraph. (a) through (c) above shall b. appli.d by the Bank to the Second Working Capital Loan, the Working Capital Loan or the Acqui.ition Loan in such ord.r and in such mann.r as Bank shall d... appropriate in its sol. and ab.olut. disor.tion. 11. If the Bank choo..., it may r.tain .uch prot...ionals as it deem. appropriate to con.ult with it concerning the operation of Gigant.'s Re.taurant locat.d on the Ha.pd.n pr.mis.. and the collection of the out.tanding ind.bt.dn.... Tho.. consultants may include a r..taurant con.ultant or accountant familiar with r.staurant op.ration. or other appropriate prof...ional.. If the Bank choose. to r.tain such con.ultant. or prof.s.ionals, the Borrow.rs will be r..ponsibl. for any co.t. incurred in conn.ction with tho.. con.ultant. or prote..ional., and any Obligation. incurred in conn.ction with the r.tention ot tho.. prot...ional., shall b. payable upon d.mand. 12. The Borrow.r. .hall provide to Bank .onthly profit and 10.. .tat.m.nt. and balance sh.ets and .uch oth.r tinanClial information a. the Bank may r.qu.st. 13. Without the prior written con..nt ot Sank, the, Borrow.rs will not creat., incur, a..uae or suffer to exist anr furth.r mortgag., pledg., li.n or any other .ncumbrance ot any ki~ upon any of th.ir assat.. 6 ,III' II_I 14. As additional collateral tor the obligations or Borrow.r. under the Financing Agr.e..nt. and this Agreem.nt, concurrently with the execution ot this Agreement, Borrowers shall d.liv.r to Bank the tollowing: (al Ha.pd.n Premises, pr.mis.s; and Mortgages encumbering the Adjacent Parcel, the the Lamp Post pre.i..s, and the Mechanicsburg (b) the proce.ds trom a dat.d F.bruary 1, P.nnsylvania, Inc., A collateral aseignment trom Hager certain Agr....nt and Covenant Not 1992 by and b.tw..n Robinson , Hager and Vickie A. Bailey. to Bank ot to compete Conner ot 15. The Borrowers sha 11 r. i.burse the Bank tor all exp.ns.s, f.es and co.ts, including attorneys' tees incurred by the Bank in conn.ction with the docum.nt r.vi.w, the Judgment. and this Agr....nt (her.inafter, the "cost."). Th. Costs shall b. add.d to the principal balance ot the Loans and shall be due and payable in accordanc. with the terms herein. 16. Nothing contained in this Agreement shall b. construed to extend the maturity at the Notes. 17. Th. Borrowers agr.. that imm.diately upon b.co.ing awar.. of any development or other intormation which may mat.rially and adv.rs.ly attect their ability to p.rfor. und.r this Agreem.nt, th.y shall g.ive the Bank notic. specifying the nature ot such dev.lopm.nt or intormation and such anticipated etfect. 18. Each of the tollowing shall constitut. an Ev.nt of Oetault with resp.ct to this Agreem.nt and the Financing Agr....nts, and all oth.r agre...nts with the Bank, upon the occurr.nc. of which ~h. Bank at its option may d.clar. all .xisting liabiliti.s, ind.bt.dn.s. and obligations of Borrow.rs to the Bank imm.diat.ly due and payabl., inClUding, but not li.it.d to, int.rest, principal, .xp.ns.s, advances to prot.ct the Bank'. int.r.st in any cOllat.ral and reasonable couns.l t..s to .ntorce this Agr....nt and the Finar.cing Agre..ents and the Bank's right. h.r.und.r and th.reund.r, all without d.mand, notic. or present.ent or prot.st or furth.r action, of any kind exc.pt as expressly provid.d h.r.in: (i) PaYments: If the Borrow.rs tail to .ake any paym.nt of principal or int.rest wh.n du., subj.ct to any applicabl. grac. periods as set torth h.rein; or (ii) Particular Cov.nant O.faults: It the Borrow.rs fail to p.rfor. or observe any cov.nants, term. and conditions contained in this Agre...nt, the Financing Agr..ment. or 7 ._.J\ "_I any oth.r .xisting or future agr.em.nt between the Borrowers and the Bank within t.n (10) days at.t.r notice trom the Bank; or ( ii i) Other Charq.s: I f the Borrow.rs fat 1 to tim.ly pay any other charges of the Bank arising out of or incurred in conn.ction with this Agr..ment or any related in.tru..nt., agr....nt. or documents ~ithin ten (10) day. of notice thereot trom the Bank to the Borrowers; or (iv) Financial Informatiop: It any r.port, financial statement, or certiticat. .ade or deliv.r.d by the Borrow.r. to the Bank is not true and correct, in any .at.rial r.sp.ct wh.n 'lade or deemed made; or if any statem.nt mad. or d.liv.r.d by the Borrow.rs to the Bank i. not true or corr.ct in any mat.rial respect; or (v) Uninsured LOlJs: If th.re shall occur any material uninsur.d damage to or loss, th.ft or d.struction ot any IIss.ts ot the Borrow.r. in exc.ss of Five Thousand ($5,000.00) Dollars in the aggregat.; or (vi) Warranties or ReDresentation.: It any warranty, r.presentation or other state.ent by or on b.half of the Borrow.r. contained in this Agre.ment or in any in.trument furnished in compliance with or in r.f.r.nc. to this Agr....nt, or in any oth.r existing instrument or docum.nt issu.d by the Borrow.r., or in any existing agre.m.nt betw..n the Borrow.r. and the Bank is false, erroneous, or mi.l.ading in any matsrial r..p.ct; or ,I !,' " , ".t (vii) Aareem.nts with Other.: Only with reqard to obligation. in excess of Fiv. Thou.and ($5,000.00) Dollar., it the Borrow.rs shall d.fault b.yond any grac. p.riod ot any aqreemant with any cr.ditor ot Borrower., if the .ft.ct ot .uch detault is to permit the hold.r ot Borrowers obligation. or any repr..entative on the hold.r's behalf to declare any such obligation ot the 10rl'OVSl'a to b.co.. due prior to its maturity date or prior to its requlal'11 sch.du~.d date of payment; or (viii) JudOlllent: It any final judqasn' 'or judgm.nt. for the payment of .on.y in .xce.. of rive TbOUMnlll ($5,000.00) Dollar. in the aggregat. .hall be rendered by a court of record aqain.t any Borrower and .uch Borrower shall. .. diecharge the .a.. or provide for it. di.charge in accordanoe vltb it. t.rm. or procure a .tay of ex.cution thereon within s1xt1 ('0) day. tro. the date ot .ntry th.reot, ancl within .aid pe1'104 of sixty (60) day., or such longer p.riod during which axeout1on or .uch jUdCJII.nt shall have b.en stay.d in good tilth, a"..l ther.froa with due dilig.nce and cau.. the .xecution thereof '0 lie stay.d during .uch appeal: or "I ;, 8 U_I (ix) Assianment tor Benefit of creditors. etc.: It any Borrow.r becomes insolvent or admits in writing his, her or its inability to pay his, her or its debts as they mature, make an as.ign..nt tor the b.netit of creditors, otter a composition or ext.nsion to creditors, or make or send notice of an intended bulk sale ot any business now or hereafter conducted by any Borrower wh.ther or not for any ot the collateral herein described; or (x) BankruDtcv. Dissolution. etc.: upon the commenc..ent of any proceeding in the bankruptcy court or proceedings for dissolution, termination, liquidation or an arrangem.nt, reorganization or readjustm.nt ot any Borrower's d.bts und.r stat. or federal law, now or hereafter enacted for the reliet ot debtor., whether instituted by or against any Borrower; or (xi) IJIrmination ot Business: If any Borrow.r ceases to operate his, her or its business as now conducted by hi., h.r or it. 19. upon the occurrence ot an Event of Default the Bank shall have all rights granted to it h.reunder, under the Uniform comm.rcial Code and any other applicable law, and the Financing Agr.e..nts, and related agreements with Borrowers referred to h.r.in and hereafter executed and any other remedies the Bank may hav.. 20. Thti Bank shall have the right to proc.ed against the Borrow.rs, and all or any portion of the collateral, or any other prop.rty pl.dg.d to it in any order. All rights and r...dies granted to the Bank hereund.r and under any agre.ment r.t.rr.d to her. in shall be deem.d concurrent and cumulativ. and not alt.rnativ. r..edies, and the Bank may proc..d with any numb.r ot r...di.. at the sam. ti.. until all liabiliti.. and Obligations .videnc.d by the Financing Agr..m.nt. of Borrow.r. to the Bank ara satisfi.d in tull. Th. ex.rcis. of any on. right or r.m.dY .hall not b. d....d a waiv.r or r.leas. of any oth.r right or r.m.dy, and the Bank, upon the occurr.nce of an Ev.nt ot D.fault, may proceed against any or all Borrowers at any tim., und.r any agr...ent, with any available rem.dy and in any ord.r. 21. This Agr..m.nt, all r.lat.d in.tru..nt., agr....nt. and docum.nt. shall b. govern.d by and con.tru.d in accordanc. with the law. of the commonwealth of p.nn.ylvania. Th. prOVision. of this Agr..m.nt and all oth.r agr....nt. and docum.nt. r.terr.d to h.r.in are to be de...d sev.rabl., ard the invalidity or un.ntorc.ability of any provision shall not attect or impair the remaining provisions which shall continua in full forc. and .ff.ct. 22. This Agr..ment and all agr..m.nt. and document. .x.cut.d in conjunction h.r.with, contain the .ntir. a9r....nt. 9 U_l between the partie. hereto and there have be.n and are no oral aqr.ement. b.tween the parti.s of any kind whatso.v.r a. a condition pr.c.dent or to indue. anyone in the eiqninq hereof or otherwiae concerninq this Aqr..m.nt. This Aqreement shall b. de.med incorporated into and made a part ot all agr.em.nt. b.tween the Bank and the Borrowers ref.rred to h.rein. All such aqreement. and thi. Agreement shall be con.tru.d as inteqrated and complimentary of each other ar.d as auqmenting and ~ot r..trictinq the Bank'. riqhts. If, after applying the foreqoinq, an incon.i.tency still exists, the provision. of this Aqreement shall govern and control. 23. No omission or delay by the Bank in exercisinq any riqht or power under this Aqreement or any related aqr.ement or document will impair such riqht or power or be construed to be a waiver of any Event of Default or an acquiescence therein, and any sinqle or partial .xerci.e of any such right or power will not preclude other or further exer.cise thereof or the exercise of any other riqht, and no waiver will be valid unless in writinq and siqned by the Bank, and th.n only to the extent specified. 24. Whenever Borrowers shall be required to make any payment, or p.rform any act on a Saturday, Sunday or a l.qal holiday und.r the laws of the Commonwealth of P.nn.ylvania or such other jur ildiction where Borrow.rs may be r.quir.d to make any payment or p.rform any act, such payment may be made, or such act may be pertormed, on the n.xt .ucceedinq bus in... day. Tim. i. of the ....nc. in Borrowera' performance under any provi.ion of thi. Aqre.ment and any other aqr.ement with the Bank. 25. The Borrower. shall be liable to the Bank for such expen.es relating to the .nforcement of this Aqr.em.nt, the enforc.ment of the riqht. of the Bank to take po.....ion of any collateral and the pr.oceed. thereof and to hold, coll.ct, prepare for .ale, .ell and di.po.e of any collat.ral and any .xp.n.e. relating to am.ndment., waiver. or con.ent. pur.uant to the provi.ion. hereof, or r.latinq to agreement. with oth.r creditor., or termination of this Agreement, or the Bank'. rights or s.curity intere.t. in the collateral or to protect, .nforce, perfect or defend the Bank'. riqhta hereunder. 26. Any notic.. or con.ent. required or permitted by thh Aqr.ement .hall be in writinq and .hall be doemed given it d.livered in per.on or if sent by certified or reqi.tered mail, po.taqe prepaid, return receipt requeated, a. follow., unle.. .uch addre.. i. chanqed by written notic. hereund.r: 10 ".... If to the Bank: CCNB Bank, N.A. 4242 Carlisle Pike camp Hill, PA 17001-8874 Attention: Thomaa L. Achey, Vice Preaident With copies to: Klehr, Harrison, Harvey, Branzburg & Ellera 1401 Walnut Street Philadelphia, PA 19102 Attention: Morton R. Branzburq, Esquire If to the Corporation, the Partnership, Robert J. Colaizzi, Jean E. Colaizzi and Con.olidated: c/o Gigante 115 St. Johns Church Road Camp Hill, PA 17011 With copiea of any notice to the Borrowers to: Rhoads & Sinon Dauphin Bank Buildinq, 12th Floor One North Market Square P. O. Box 1146 Harrisburg, PA 17108-1146 Attn: Jack F. Hurley, Jr., E.quire Any notice aent by the partiea by reqiatered or certified mail Ihall be deemed to be given two (2) daya after mailinq. 27. All warrantiea, repreaentationa and covenants made by the Borrowera herein, or in any agreement referred to herein or on any certificate, document or other in.trument delivered by it or on ita behalt under thil Aqreement, Ihall be conaidered to have been relied upon by the Bank, and ahall aurvive the delivery to the Bank of the documenta required hereby regardle.. of any inveatiqation made by the Bank or on it. behalf. All statements in any auch certificate or other in.trument Ihall conatitute warrantie., repreaentationa and covenanta made by Borrowera hereunder or under any other aqreement or inatrument and ahall be deemed continuinq until all of the liabilitie. and obliqationa to the Bank are aatilfied in full. 11 u_. 1- ,(, . , j<.~J b ~ ./4) ~<-' - , -' /. -1 ,., & YJ ;' L ,J, -;J ".t 9"'" 4e.,Y' /1\ / , /,'):! t'-'iv 1~ 'r ,;' - --., BY: ~ ~~ - - ~~d M. HageV ? / 1 . BY: RO\';':! IJ ~Lt~:iZZ i, Individually BY: ~ ;/~ David M. Ha94ff;- Indi~uallY ~' BY: ~...<J 'j!:.' ..rean E. Co a z , 'individually i I' i ATTEST: CONSOLIDATED INSURANCE GROUP, INC. " ~l.{}bJJU ,~ [Aftix corporate Seal] BY:;:;?~ ' me: Title:, /- I. . , 1 1 .. , . ,.' , ,\ '" \ . ,'I,:' .,.' I',,' . .' '. I 13 , ,;,;1 'i, I' " , " I .,. . ' @ e I I i " i II I ~ ; ~ J " " " , I'll , ,I , ' ., I,: " ,'1:1\ :',;-,11'-:; .1 'I' 'i'!, " , , , ' - - ., . OPIfN-1l1fD MORTGACI. AIm ..CtJRITY AClRIfIlMlfN't TIU IN.TIIUMINT I.CUl\~' 'UTUIII AOVANCU 'UII.UANT TO NIiIN.VLVANIA ACT NO. 121. Thi. Op.n-End Mortgag. and Security Agu.ment ("Mortqag.") h lI.de thi. I). day of J.,.. , 1992 between RObert J. Colaizzi and Jean E. Colaizzi, lndlviduals (hereinatter referred to collectively and Obligated a. "Mortgagor") and CCN8 8anJc, N.A., a bankinq corporation having ottice. at 4242 Carlisle Pike, Camp Hill, Pennsylvania 17001-8874, a. 1I0rtgaqe. (hereinatter ref.rred to a. "Bank"). In con'ideration tor and to secure payment and performance to Bank ot all of the Oblig.tion., a. th.t term i. detined in subp.ragraph. (a) through (g) below, Mortgagor ha. granted, bargained and sold, convey.d, aliened, r.lea.ed, as.ign.d, tran.terred, mortqaq.d and contirm.d, granted a security intere.t in and set-over and by the.e pre.ent. does h.reby grant, bargain and sell, convey, r.lease, a.sign, transt'r, mortgage and confirm unto Bank, it. succ...or. and a..igns, forev.r: ALL THAT CERTAIN real e.tat. situated in the Town'hip ot Hampd.n, County of Cumberland, Commonw.alth ot PennsYlvania, known a. 428 Lamp po.t Lane, Camp Hill, Penn,Ylvania, all a. more particularly de.crib.d on Exhibit "A" attached h.reto, incor- porat.d her. in by thi. r.t.rence and made a part hereot (the "premis.."); TOGETHER WITH all right, title and intere.t ot Mortgaqor in and to allot the tOllowing, whether now-own.d or her..tt.r acquired (collectiv.ly, along with the premis.s, her.inafter r'ferred to a. the "Hortqag.d Prop.rty"): (i) pr'.~nt and tutur. .tructur.., bUildinq., improve.ent., comaon ar.ae, street., lane., sidewalk., .lley., p...aq.w.y., pa...g.., w'Y. and pUblic pl.ce., open or propo..d, on or 'djoining the Pre.i..., right.-ot-wey, pUblic or private, water., wat.rcour..., strip. and gore. ot l.nd, eetate., lib.rtie., privil.q.., int.re.t., hereditam.nt. and appurt.n.nc.. wh.t.oever b.longing to or in .ny way lI.de appurt.nant; .11 ......nt. and cov.nant. now eXisting or her.aft.r cr..t.d tor the b.n.tit ot the Mortqagor or any lub..qu.nt owner or t.nant ot the pr'.i.e. or Over qround adjoining the Pr'.i... and all riqht. to entorc. the maint.nanc. ther.ot; all oth.r riqhte, lib.rtie. and priv- il'g.. of what,oever kind or charact.r inClUding, without limit.tion, .ny right. in and to any land lying in the bed of any str.et, road or avenu., op.n or propo.ed, or in front of or adjoining the pr..i...; .nd all r.v.r.ion. and r..aind.r., clai.. and d'.and. wh.tsoev.r; the air space above and the right to U.e the .ir .pacI above the pre.i.e., and the drainaqe, crop., timb.r, .qricultural, horticultural, mineral, wat.r, oil and ga. right. with r'sp.ct th.reto, at law or in equity; ~"~. lObO ;A~t ~T3 - - ..... _c (ii) All now exieting or h.r.inafter i.aued licenee., permita or aqr..m.nt., with, from or of any Ind all qov.rnm.ntal or oth.r bo.rd., bur..ue, or inetrum.ntalitiee, public utiliti.a, .qenci.a or d.partment. rll.tinq to the premiee. or any buain..a conducted by Mortq.qor th.reon, Qr the ua. or occup.ncy ot III or any part ther.of ("Lieene.e and Permita"); (iii) All toole, parte, fixturea, appliancea, machin.ry, and equipment of Iny nature whataoev.r, and other articlea of p.raon.l property now or h.r.after owned or acquired by Mortqlqor which .re now or at any time hereatt.r inatall.d in or att.ch.d to, in or upon the P~.mie.. or in. on or in connection with any buildinqa and .mprov..ente now or her.atter erected ther.on, or ua.d or intand.d to be u..d in conn.ction with tha Pramia.. or in the oparation ot any buildinqa and improvam.nt. now or haraaft.r .r.ct.d thareon, or in the operation or maint.nanca ot any euch buildinq and improv...nt eituat. th.raon or any buainaaa ot Hortqaqor conduct.d ther.on, only in tha avent that the p.reonal prop.rty ia or .h.ll b. aftix.d th.r.to, includinq but not limit.d to all furnitur., turniehinga, apparatu., trade fixtur.., appli.nc.., acreen., storm and ecr.an doora, awninga, window ah.d.a, v.n.tian blind., floor cov.rinq., carpatinq and oth.r furni.hing. and other p.reon.l prop.rty ot av.ry kind and n.ture wh.taoav.r; motor., el.v.tora, ..calatora, tittinq., r.di.tora, ga. ranq.a, ic. boxa., co.preaaor., .,ch.nical retriqarator., couplinqa, comaunic.tion .quip..nt, computar taciliti.. .nd .quip..nt, ator.g. tank., druma and cont.in.r. (includinq all riqht. ot Hortq.qor a. 1..... ot .ny ot the tor.qoinq), pluabinq, h..tinq, liqhtinq, eookinq, laundry, v.ntilatinq, throuqh puttinq, air conditioning, .ir coolinq .nd ratriq.r.tinq .quip..nt .nd ay.t..., furnac.., boil.r., oil and q.. burn.ra, pip.., conduit., pipelin.a, engin.., aprinkl.r .nd ..curity .quip..nt and ay.te.., incinar.tinq equip.ent and ay.t... and fir. tiqhtinq .quip.ent .nd eyat...; .nd .11 r.naw.l., r.plac...nt. or .rticl.. in .ub.titution ot any ot the tor.qoinq, only if tha .... ere or ahall be att.ched to the Pr..i... or any buildinqa or improve..nt. th.r.on in .ny mann.r, and all acce.aorie., p.rt. or .cca..ion. ther.to now or h.r.aft.r owned or .cquired by Mortqaqor or in which Mortq.qor h.. or may .cquir. an intar..t, .nd .11 producta .nd proc..d. thar.ot; (iv) All buildinq ..t.ri.l., buildinq machinary and buildinq .quip.ent now or h.reaft.r d.liv.r.d on .ite to the pr..ia.. ari.inq out ot or in conn.ction with the con.truction of or recon.truction of, or r.h.bilitation or r..od.linq to, .ny buildinq. or improve..nt. now or h.r.attar locat.d on the Pr..- i.a.; (v) All riqht, title and inter.at of Mortqaqor in and to all 1..... or .ubl..... coverinq .11 or any part of the -a- eoo~ lObO PACt ~74 -. pr..i... and Mortgaqed Prop.rty or any portion th.r.of now or h.r.att.r exi.tinq or entered into. and all right, title and int.re.t ot Mortqaqor thereunder includinq, without limitation, all pre..nt and future rent., iaau.., and/or profit., and all oth.r exi.tinq and tuture righta to payment or contract righta (includinq any riqht to payment, th.reund.r, whether or not earn.d by performance) of any nature ari.inq out of the pr.miae. and Mortgag.d Property or from the aale or 1.... of ~ny property, qood. or materiale or from the rend.rinq ot a.rvices including, but not limited to, the lea.. of all or a portion of the premis.. (allot euch proceed., receipt. and income ar. hereinatt.r coll.ctiv.ly r.t.rred to a. the "Incom. and R.nt." and all such riqht. are her.inaft.r referr.d to collectiv.ly a. "Right. to payment"); and any other incom. of any and all kind. (includin9 depoait.) b.longing to or in any way pertaining to the Premia..; all riqht. of payment, ca.h or security d.po.it., advance rental., and d.po.it. or paym.nt of aimilar natur.; (vi) All riqht, title and intere.t ot Mortqaqor in and to all option. to purcha.. or lea.. the Mortgag.d Property or any portion th.reot or int.re.t therein, and any greater ..tate in the pre.i... owned or hereatter acquir.d by Mortgaqor; (vii) All award. and oth.r compen.ation hereto tor. and her.att.r to b. mad. to Mortqagor tor any takinq by e.inent domain, either perman.nt or t.mporary, ot all or any part ot the pre.i... or any .a....nt or appurtenance th.r.ot or th.r.to includinq, without li.itation, .pecial and con.equ.ntial da.aqe., which .aid award. and cOIP.n.ation are h.reby a..iqn.d to Bank, and Mortqaqor do.. h.r.by appoint Bank, and any ot B.nk'. otfi- cer., it. attorn.y-in-tact coupled with an int.r..t and autho- rity, and direct. and ..power. auch attorney, at the option ot .ucb attorn.y, on behalt of the Mortqaqor, it. .ucc...or. and a..iqn., to adju.t or co.pro.i.. the cl.i. tor any .uch aw.rd and to coll.ct and r.ceive the proceed. th.r.of; (viii) All in.uranc. polici.. coverinq the Pre.i... and all proc..d. of any un.arn.d pr..ium. on any .uch in.uranc. pOlici.. including, ~ithout liaitation, the riqht to r.c.iv. and apply the proceed. of .ny in.uranc., judqa.nt., or ..ttl..ent. .ad. in li.u th.r,of, tor da.aqe to the Mortqaq.d Prop.rty; (ix) Any ..curiti.. or quarant... h.ld by Mortq.qor with r..pect to any of the Riqht. to p.ya.nt, Lic.n... and P.rait. and l.a... and .ubl..... ot the Pr..i..., or any part th.r,of, and any not.., draft., acc.ptanc.., ch.tt.l p.p.r, docua.nt. or oth.r in.trua.nt. evid.ncing the ....; and (x) Th. right, in the na.. and on behalt of it..lf Or Mortgaqor, to app.ar in or d.tend any action or proc..ding -3. ~tlllf( 1080 1m 475 --. brouqht with r..p.ct to the pr.mi... (includinq, without limita- tion, any cond.mnation or arbitration proc..ding.), and to co.- m.nc. any action or proc..dinq to prot.ct the int.r.st of the Bank in and to the Mortgag.d Prop.rty. TO HAVE AND TO HOLD the Mortqaq.d Prop.rty h.r.by conv.y.d or m.ntion.d and int.nd.d so to b., unto Bank, it. .ucc...or. and a..iqn., to it. own US., for.v.r. PROVIDED, ALWAYS, that thi. in.trum.nt is upon the .xpr... condition that it Mortgaqor .ati.ti.. all of the Obliqation., a. h.r.inatt.r d.fin.d, in accordanc. with the provi.ion. of the Financinq Aqr..m.nt., a. h.r.inatt.r d.tin'd, and thi. Mortqaq., at the tim.. and in the mann.r sp.cifi.d, without d.duction, fraud or d.lay, and it all the aqr....nt., condition., cov.nant., provi.ion. and stipulation. contain.d th.r.in and in thi. Mortqaq. are tully p.rform.d and co.pli'd with, th.n thi. Mortqaq. and the ..tat. h.r.by grant.d .hall c.a.., d.e.rain. and b.co.. void. Thi. Mortgaq. cov.r., a.onq oth.r thinq., all pr...nt and tutur. advanc.. mad. pur.uane to thi. Mortqage end the Financinq Aqr..m.nt. which future advanc.. .hall r.lat. back to the date ot thi. Mortgaq.. A. u..d in th1a Mortgaq., "Obligation." m.an. any or all of the tOllowinq ind.bt.dn..., liabiliti.. and obligation. ot Moreq.qor to Bank and any r.plac...nt. or lub.titution. th.r.ot: (a) Th. .xi.tinq and tutur. d.bts, liabiliti.. and obliq.tions ot Mortq.qor, Con.olid.t.d Insuranc. Group, Inc., H.q.r-Grandon In.uranc. S.rvica., Inc., Colaiazi and Haqar Partn.r. and D.vid M. Hag.r (coll.ctiv.ly, the "Borrow'r.") to B.nk includinq, without limitation, those .vid.nc.d, in part, by the Acqui.ition Loan Not.., the Workin9 Capital Not.s .nd the S.cond Workinq capital Not.s (.uch in.trua.nt. beinq h.r.inatt.r coll.ctively ref.rr.d to a. the "Not....), .. a..um.d by Borrow.r. in th.t c.rtain Forbe.ranc. Aqr....nt dat.d ot .v.n date h.r.with by and a.onq Borrow.r. and the Bank (th. ..Aqr....nt..). All tarae not oth.rwis. d.tin.d h.r.in .hall have the .a.. ...ninq. a.crib.d to ..id t.rm. in the Aqr....nt; (b) P.rform.nc. by Mortgagor of all warranti.., r.pr.- ..nt.tion., cov.n.nt. and .qr....nt. ..t forth in the Not.., the Aqr....nt, .nd in .ny oth.r in.tru..nt., aqr....nt. and docuaant. .x.cuted .nd/or d.liv.r.d in conn.ction h.r.with and th.r.with, and .ny oth.r .xi.tinq or tutur. inetrua.nt., .qr....nt. or docum.nt. .x.cut.d and/or d.liv.r.d by and/or ..onq Borrow.r. .nd Bank a. now or h.r..tt.r a..nd.d (coll.ctiv.ly, alonq with the Not.. and the Agr....nt, h.r.in r.f.rr.d to a. the "Pinanainq Aqr....nt...); -4- a.~o_1080 PAC, 476 -. (c) P.rformanc. by Mortgagor of all warrantie., r.pr...ntation., cov.nant. and agr..m.nt. s.t forth in thi. Mortgag.; (d) Th. co.t. of curing any Event ot O.fault ..t torth in thi. Mortgag. or in the Financing Agr....nt. which the Bank .l.ct. to cur.; and (.) Th. co.t. and .xp.n... includinq, without limitation, r.a.onabl. attorn.y.' f... and di.bur....nt., incurr.d by Bank in .ntorcinq any of the obligation.. MORTGAGOR REPRESENTS, COVENANTS AND WARRANTS to and with Bank that, until the Obligation. ..cur.d h.r.by are fully paid and p.rtorm.d: 1. pavm.nt and pertormanc.. Borrower. and/or Mortqagor .hall pay to Bank, in accordanc. with the term. ot the Not.., the Financinq Agr..m.nt. and thi. Mortgag., the principal, int.r..t and oth.r .um. th.r.in and h.r.in ..t forth; .hall p.rform and comply with all the agr..m.nt., condition., cov.nant., provi.ion. and .tipulation. ot the Not.., the Financinq Agr....nt. and thi. Mortgag.; and Mortgaqor .hall tim.ly p.rtorm all obligation. and duti.. a. landlord und.r any l.a.. ot all or any portion ot the Mortgag.d Prop.rty now or h.r.att.r in .tf.ct. 2. Warrantv ot Titl.. Mortgaqor warrant. that Mortgagor po....... good and mark.tabl. t.. .impl. title to the Mortgaq.d Property, .ubj.ct to no li.n, charg. or encuabranc. ot any nature .xc.pt tor tho.. title .xc.ption. li.t.d in the intormation c.rtiticat. approv'd by Bank. Mortqaqor .hall provide .uch title and all of it. right. in and to the Mortgag'd Prop.rty and .hall pr...rv. .uch title and all of it. right. in and to the Mortgaqed Prop.rty and .hall tor.v.r warrant and d.fend the validity and priority ot the li.n h.r.ot again.t the claim. of all p.r. on. or antiti.. what.o.v.r. "ortgagor turther warrant. that Mortqaqor ha. all pow.r and authority and capacity to mortgag. tb. Mort- gaq.d Prop.rty to Bank and to qrant a li.n on and ..curity int.r..t th.r.in in the .ann.r ..t torth h.r.in. 3. Maint.nanc. of Mortaaa.d proa.rty. Mortqaqor .hall k..p and aaintain or cau.. to be k.pt and maintain'd the Mortgagad Prop.rty including all building. and i.prov...nt. now or at any ti.. her.aft.r .r.ct.d on the Pr..i... and the .id.- walk. and curb. abutting th.., in good ord.r and condition and in a r.ntabl. and tenantable .tat. ot r.pair, and will pro.ptly .... or cau.. to be .ad., a. and wh.n n.c...ary, all r.pair., ran.wal. and r.plac...nt., .tructural and non.tructural, .xt.rior and int.rior, ordinary and .xtraordinary, tor....n and unfor....n. Mortgagor .hall ab.tain tro. and .hall not p.rait the co..i..ion -1- &ao~ lO~O P~C( 4n -. ot waate in or about the Mortgagad Property; shall not cauae or permit any buildinq or improvement upon the Premise. to be re- moved or demolished or structurally altered without the prior written conaent o( Bank; and shall not permit the Mortqaqed Property to become de.ertad or abandoned. 4. Inaural1a. (a) Mortqaqor shall keep the Mortqaqed Property continuoualy inaured, to the extent of it. full inaurable value, but in any event not laaa than that amount to which any co- in.urance proviaion. would apply, and not laaa than tha outatandinq am(unt ot tha Obligation., aqainat loa. or damage by fire, with extanded coverage and coveraqe aqainat loaa or damaqe by thett, vandaliam, malicioua miachiet, aprinkler leakaqa and, it appliceble, aqainat tlood, and aqain.t other hazarda a. Benk may reaaonably require trom time to time. Mortqaqor shall alao maintain comprehenaive general liability in.ur.ance (including, without limitation, per.onal injury and property da.aqe) and workmen'a compenaation inaurance in auch total a.ount. aa Bank may reaaonably require trom time to time. In connection wi~h any con.truction, ramodelinq, and rehabilitation work now or . hereatter on the Mortgaqed Property, Mortqaqor ahall kaep applicable ineurance in eftect. (b) Subject to the riqht. ot prior lienholder., all orivinal pOlicie., includinq policiea for any amount. carried in excea. ot the required minimum and policie. not apecifically required by Bank, ahall be in tora and contant .ati.factory to Bank, ahall be ia.ued by companie. .ati.factory to Bank, ahall at all time. be maintainad in tull torca and ettact, ahall be a..iqned to Bank, with pr..iua. prepaid, a. additional collateral .ecurity tor payaent ot the Obligation., .ball be andor.ed vith a .tandard mortgagee, 10.. pay.e or additional in.ured clau.e, a. applicable, in tavor of Bank, .hall not be .ubject to con- tribution, and ahall provide tor at lea.t thirty (30) day.' notice to Bank of canc.llation or moditic.tion in coverage, and .hall in.ure Bank notwithatanding any act or negligence on the pert ot Mortgagor. At lea.t thirty (30) day. prior to tha expiration date of any inauranee policy Mortqagor .hall deliver to Bank .atiefactory evidence ot the r.newal ot all .uch insurance. ec) If the in.urance, or any part th.reof, .hall expire, be cancelled, beco.e void or voidable by rea.on ot Mort- qaqor'. breach ot any condition ther.ot, or if tor any rea.on whatever the in.uranee .hall be un.ati.factory to lank, Mort,~ shall vithin tive (5) day. of Bank'. notice to Mortga,or, place nev ineuranee on the Mortqaved property rea.onably "~i.f.o~ory to Bank. -e- ~oodO~O ~Ar.E 478 ;1:, I , --. Cd) Subject to the riqht. of prior li.nholder., in the event ot 10", Mortqaqor will qive immedi.t. notice thereof to B.nk, and B.nk may m.k. proof or proot. ot 10.. on behalt ot Mortq.qor and any adju.tment ot a proof ot 10.. sh.ll require the prior written con.ent ot B.nk. Each inaur.nce company concerned i. hereby authorized and directed to m.ke payment under luch in.urance, includinq return ot une.rn.d premium., directly to B.nk in.tead of to Mortqagor and 8.nk jOintly, and Mortqaqor hereby appoint. Bank, irrovocably, al Mortqaqor'l attorney-in-tact to endor.e any dr.tt theretor. Bank shall h.ve the riqht in it. aole and ab.olute di.cretion to ret.in and apply the proceed. ot any .uch inlurance, .t it. election, to reduction of the Obligation., or to re.tor.tion or repair ot the property da..qed. Such policie. ot in.urance and all renewal. ther.ot are hereby a..iqned to Bank .. additional .ecurity tor paym.nt ot the Obliqation. and Mortqaqor hereby aqre.. that after an Event ot D.tault hereunder any value. avail.ble th.reund.r upon canc.llation or terwin.tion ot any of ..id policie. or ren.w.l., wh.th.r in the forw ot return ot pre.ium. or oth.rwi.e, .hall be p.y.bl. to B.nk a. a..iqn.e thereot. It Bank b.come. the own.r ot the Mortgaqed Property or any part thereot by toreclo.ure or otherwi.., such polici.., includinq all riqht, title and int.re.t ot Mortg.q~r thereund.r, sh.ll b.co.. the ab.olut. prop.rty of B.nk. 5. Tax.. and O~h.r Chara... (.) Mortqaqor .h.ll payor cau.e to be p.id when due .nd peyable and betor. intere.t or p.nalti.. are due th.r.on, without any deduction, defalcation or abat.ment, all tax.. ot .ny kind what.o.ver (includinq .11 r..l and p.r.onal property, in- co.., franchise, protit., .ale., u.., inco.e, qro.. rec.ipt. and withholdinq tax..), qen.ral .nd .pecial ........nt., wat.r and "Wer r.nt., l.vie., .ncuabranc.., perait., lic.n.. .nd in.p.c- tion te.., and all oth.r charqe. or clai.. of every nature and kind which aay b. a......d, levi.d, i.po.ed, .utter.d, plac.d or til.d at any time .qain.~ Mortqaqor nr the Mortgaqed Property or any part th.r.of or aqain.t the inter..t. of Sank in the Mort- gaqed Property, which by any pr...nt or future law may have priority over the Obliqa~ion. .ither in lien or in di.tribution out of the proc..d. of any jUdicial .al./ and Mortgaqor .hall produ~. to Sank, not lat.r than .uch date., copi.. of receipt. (or other .videnc.) tor the payment thereof. (b) Subjec~ to the riqht. of prior li.nholder., without liaitinq the q.nerality of .ny of the tor.qoinq, Mort~aqor .hall on Sank'. requ..~ pay to Sank aonthly, on the tir.t day ot ev.ry month, an ..ount equal to 1/12 of the annual pr..ium. tor .uch tire and extended coveraqe in.urance and .uch annual real eetate tax.., water rent., .ever r.nt., .p.cial -7- ~~O~ lObO rJ~t 47:l -. a.....m.nt., and any oth.r tax, a.....m.nt, claim, li.n or .ncumbranc. which may at any time b. or b.com. a li.n upon the Mortqaq.d prop.rty prior to the li.n of thi. Mortqaq., and on d..and from time to time .hall pay to Bank all additional sum. .. B.nk in it. di.cr.tion may d..m n.c....ry to pay such pr.mium. and oth.r p.ym.nt., the amounts so p.id to b. security tor .uch pr.mium. and other p.ym.nts and to be u.ed in paym.nt. th.r.ot. ~o amount .0 paid .h.ll b. d..m.d to be tru.t fund. but m.y b. coaainql.d with g.n.ral tund. ot Bank, and no int.reat sh.ll b. p.y.bl. th.r.on. If, pur.uant to any provi.ion ot this Mor.tg.g., the whole amount ot the Obligation. b.co... due and payabl., B.nk shall have the right at it. el.ction to apply any amount. so h.ld aq.in.t the .ntir. indsbt.dne.. .ecur.d h.r.by. 6. Comolianc. with Law and R.aulation.. Mortg.qor .h.ll comply with all law., ordin.nc.., r.qulation. and ord.r. now or h.r..tt.r in .tfect ot all fed.ral, stat., municipal and oth.r qov.rnaental authoritie. r.lfttinq to the Mortgag.d Prop.rty. 7. In.o.ction. Bank and any p.r.on. authorized by B.nk .hall h.v. the right at any time and trom ti.. to tim., to ent.r the pr..i... to in.p.ct and photoqraph it. condition and stat. of r.p.ir and the Mortgag.d Prop.rty and the r.cord. ot Mortgagor with r..p.ct th.reto. 8. D.cl.ration ot ~o s.t-ott. Within on. (1) w..k att.r r.qu..t.d to do .0 by B.nk, Mortq.gor shall c.rtity to Bank or to any a..iqn.e or propo..d a..iqn.. ot thi. Mortq.q., in writinq duly .cknowl.dqed, the amount ot princip.l, int.r..t .nd oth.r charq.. th.n owinq on the Obliq.tion. and on any obliqation. ..cur.d by prior li.n. upon the Mortq.q.d Prop.rty, it any, and wh.th.r th.r. .r. any ..t-ott. or d.t.n... aq.in.t th... 9. Securi~v Aar....nt. Thi. Mortqaq. con.titute. a ..curity .qr....nt und.r the Unitora Co...rcial Cod. and Mort- q.qor h.reby qrant. B.nk . lien on .nd a ..curity int.re.t in .11 pereon.l prop.rty ot Mortqaqor now or h.r.att.r in.tall.d in or attach.d to, in or upon the Mortqaqed Prop.rty, includinq without li.itation, all .quip..nt, furniture, aachin.ry, and tixtur.., wh.th.r now own.d or h.r.aft.r acquired, only in the .v.nt that .uch p.r.onal property i. or .hall be aftix.d to the Mortqa~ed Prop.rty toq.th.r with all replac...nt. .nd .ub.titution. th.r.tor, and addition. th.r.to and ca.b and non-caeb proc..d. (includinq in.uranc. proc..d. and proc..d. ot proc..d.) th.reof. Mortqaqor .hall .x.cute, d.liv.r, tile and r.fil. any tinancinq .tat...nt., continu.tion .t.te..nt., or other ..curity .qr....nt. Bank .ay r.quir. fro. time to ti.. to confirm the 11.n of thi. Mortqaq. with r..p.ct to .uch prop.rty. Without li.itinq the tor.qoinq, Mortq.qor h.r.by irr.vocably .ppoint. lank attor- ney-in-t.ct tor Hortqaqor to .x.cut., d.liv.r .nd file such in- I I I i I, I I, I " r l I I I I I " I ~ I, -1- euo' lO~O P.CC 480 -. strum.nt. for and on behalf of Mortqaqor. Mortgaqor ahall not chanq. it. chiet executive oft ice without qivinq Bank at lea.t thirty (30) day. prior written notic. th.reot, which notice shall b. accompanied by new tin.ncinq state..nt. ex.cut.d by Mortqaqor in the .... torm a. the tin.ncinq stat..ent. delivered to Bank on the date hereot exc.pt for the chanq. ot addr.... Upon any default or Event of Detault h.reund.r or under any of the Financinq Aqreement., Bank ahall have, in addition to any other right. and r~m.di.. hereunder or und.r .aid Financinq Agreem.nt., allot the riqht. and r...die. granted a secured party und.r the Unitora Commerci.l Code with re.pect to all per.onal property. Notvith.tandinq any relea.e ot any or .11 ot the prop.rty in- cluded in the Mortgaged Prop.rty which i. d.emed "r.al property", any proce.ding. to toreclo.e thi. Mortqaqe or it. satiataction ot record, the t.rm. hereot .hall survive .. a a.curity .qre.m.nt with re.pect to the security intere.t cr.ated her.by .nd reterred to above until the r.payment or sati.taction in full ot the Obli- qation. ot Mortgagor. 10. Financial Statement.. Mortq.gor shall turni.h to Bank such data and information (financial and otherwi.e) .. may be required pur.uant to the t.rms and condition. ot the Financinq Aqr....nt.. 11. Raauired Notice.. Mortqaqor .h.ll notity Bank promptly ot the occurr.nce ot any of the tollovinq: (a) a tire or oth.r mat.rial ca.ualty cau.inq da..q. to all or any part ot the Mortqaq.d prop.rty; (b) rec.ipt ot notice ot ..inent do.ain proce.dinq. or condemn.tion ot all or any part ot the Kortqaq.d Prop.rty; (c) receipt of notic. troa any qovernaantal authority r.latinq to the .tructur., u.. or occupancy of the Kortqaq.d Prop.rty; (d) rec.ipt of any notice troa any t.nant of all or any portion of the Mortq.qed Prop.rty or any 1..... ot any of the Mortqaqed Property r.latinq to occupancy or the p.ya.nt of r.nt or .ny br.acb of a 1.... tor the Kortqaq.d Property; (.) a chanq. in the occupancy of the Mortqaqed Property; or (f) coma.nc...nt of any litiqation aff.ctin9 the Mortqaq.d Prop.rty. 12. Cond.mnation. .,. &OO~ lObO m, ~81 ~...,. , -. (a) Subject to the rights ot prior lienholders, in the ev.nt ot any condemnation or takinq ot any part ot the Mortqaq.d Prop.rty by emin.nt domain, alt.ration of the qrad. of any stre.t, or oth.r injury to or decreae. in the value ot the Mortgaqed property by any public or quaai-public authority or corporation, exerciainq the power of .min.nt domain or oth.rwia., all proceeda (that ia, the award or agreed compenaation for the damaqea .uatained) allocable to Mortqaqor, att.r deductinq th.retrom all coeta and exp.n.ea (raqardleaa ot the particular nature th.reot and whether incurred ~ith or without auit) includ- inq attorney' a ta.a incurr.d by Bank in conn.ction with the coll.ction ot auch proc.eda, ahall b. paid ov.r to Bank and applied fir.t t~ paym.nt ot the Obliqationa. No .attlement for damaqea .uatainad shall b. mad. by Mortqaqor without Bank'a prior vritten approval, which approval .hall not b. unreaaonably withh.ld. R.caipt by Bank ot any proc..da la.. than the tull amount ot the than outatandinq balance of the Obliqationa .hall not alt.r or modity Mortgaqor'a obliqationa tor the in.tall..nt. ot principal, int.reat and othar charq.. ap.cifiad in the Nota. and tha Pinancinq Aqr....nt.. All proca.da so paid to or r.c.ivad by Bank .hall b. appli.d in the ord.r and in the a.ount. that Bank, in Bank'a sole diacr.tion, .ay .l.ct, to the paym.nt ot principal (wh.ther or not then due and payabl.), inter..t, any aum. ..cured by thi. Mortqaqe, or to~ard paym.nt, att.r the atora.aid daductiona, to Mortqaqor, on auch t.rm. a. Bank may ap.city, to be ua.d for the aol. purpoa. ot alt.rinq, r..torinq or r'buildinq any part ot the Mortqaq.d Prop.rty which may have ~..n alt.r.d, damaged or d..troy.d aa a reault ot the takinq, alt.ration ot grad. or oth.r injury to the Mortqag.d prop.rty. (b) It prior to the r.c.ipt ot the proc..da by Bank the Mortqaq.d Prop.rty ahall have bean .old on tor,clo.ur. of thi. Mortqaq., Bank .hall have the riqht to r.c.ive the proc.ed. to the .xt.nt of: (i) the tull a.ount of all auch proc..d. it lank i. tho aucce.atul purchaa.r at the foreclo.ure .ale; or (ii) if anyone oth.r than lank i. the .ucce..tul purcha..r at the torecloaur. aal., any d.ficiency (a. her.inatt.r d.fin'd) due to Bank in conn.ction ~ith the foreclo.ur. .al., with int.r..t th.r.on at the hiqh..t rate th.n payable on the Note., and r.a.onabl. coun..l t.e., co.t. and di.bur....nt. incurred by lank in conn.ction with collection ot .uch proceed. ot tor,clo,ur. .al. and the .atabliaha.nt ot .uch deticiency. ror purpo... ot thi. .ubparaqraph, the word Ndetici.ncy. .hall be d....d to ..an the ditt.r.nc. between (A) the n.t ..1. proceed. actually r.ceiv.d by lank .. a re.ult ot euch torecloeure .ale le.. any co.t. and exp.na.. (includinq attorney.' f.e.) incurred by lank in conn.ction with .ntorc...nt ot it. r1qht. under the -10- ~~Ot 1080 ~A(E ~82 . -~. -. Not.., the Financing Aqre.m.nt. and thia Mortgag. and (B) the aggr.gat. amount of all .um. which Bank i. entitled to collect undor the Note., the Financing Agr....nt. and this Mortgag.. (c) Bank ahall have the right to pro.ecut. to final det.rmination or a.ttl.m.nt an app.al or other appropriate proc..ding. in the name of Bank or Mortgagor, for which Bank ia h.r.by appointed irr.vocably a. attorn.y-in-fact tor Mortgagor, which appointment, beinq for .ecurity, i. irrevocable. In such .v.nt, the .xp.n... ot the proc.eding., includinq r.a.onabl. coun..l t..., ahall b. paid tir.t out ot the proceed., and only the .xc..., it any, paid to Bank shall b. cr.dit.d again.t the amount. due und.r the Mortgage. (d) Nothing her.in shall limit the right. otherwise available to Bank, at law or in equity, includinq the right to int.rv.n. a. a party to any cond.mnation proc.edinq. 13. Morta.a.. and Liana. (a) Oth.r than a. s.t forth on the intormation c.rtiticat. a. ot the date her.ot, without the prior written con..nt ot Bank, Mortq.qor will not voluntarily cr.ate or permit to be cr.at.d or til.d again.t the pr..i.e., any mortgage lien or oth.r li.n or ..curity int.re.t int.rior or .uperiQr to the li.n ot thi. Mortqag.. (b) Mortgagor will k.ep and maintain the Mortq.q.d PrQP.rty tr.e trom the clai.. ot all p.r.on. .upplyinq labor or mat.ri.l. in conn.ction with the con.truction, r.con.truction, r.habilitation or alt.ration of any or .11 b~ildinq. and improv.m.nt. which .r. now or h.r.att.r may be .r.ct.d upon the Mortq.q.d PToperty, notwith.tandinq by whom .uch l.bor or ..t.ri.l. may be h.ve been contr.cted. 14. La..... (.) Mortg.gor h.r.by r.pr...nt. th.t th.re .r. no l.a..., .ubl..... or .qT....nt. to 1.... all or .ny p.rt ot Mort- g.ged Property now in ett.ct .xc.pt tho.. li.t.d on Exhibit .,. attached h.r.to .nd incorpor.ted h.r.in. Mortq.gor agr... not to .nt.r into .ny 1..... or agr....nt. to 1.... .11 or .ny part ot the Mortg.ged Prop.rty without the prior written con..nt ot lank. (b) Mortgaqor h.reby ...ign. to I.nk and grant. lank . li.n on .nd ..curity inter..t in .nd to .11 pr...nt .nd tutuw. 1..... .nd .11 of Mortqagor'. right to r.c.iv. payaent. ~ any .xi.tinq and tuture 1..... of the Mortg.qed Property or any portion th.r.of includinq the r.nt., r.c.ipt., i..u.., profit. .nd other inco.. ot .ny and all kind. (including dapoaita) ,II, , -U.- ::0; lObO p~" 483 I!,' '.' ,I ;1 " -. rec.iv.d or r.c.ivable by Mortgaqor due or to b.com. due from the s.l. or l.a.. of any prop.rty, qood. or mat.rial. or from the r.nderinq ot s.rvic.. ot any nature includinq, without limit.tion the occupancy, lic.n.., r.ntal or lea.. ot any part of the Mortqaq.d Property or the operation ot any incom. tacility on Mortqaqed Property, aa furth.r security for the paym.nt of the Obliqationa. Mortgaqor granta to Bank the right to .nt.r u~on and take po....aion of the Mortg.g.d Prop.rty for the purpo.. ot collectinq the same and to let or ralet the Mortgaqed Property or any p.rt ther.ot, and to apply the rent., is.ue., rec.ipts, profit. and oth.r incom. ot any and all kind. (includinq depo.it.) or any oth.r amount. r.ceived or r.ceivable by Mortqaqor, due or to become due trom the s.l. or lea.. ot any property, good. or materiala or from the rendering of s.rvice. ot any nature includinq, without limitation the occupancy, lic.n.e, r.nt.l or 1.... of any part of the Mortqaqed property or the operation ot any incom. facility on the Mortqag.d Property. .tt.r p.ym.nt ot all n.c....ry charg.. and .xpen..., on account of the Obliqation.. Thia a..ignment and grant ahall continu. in .tf.ct until all the Obliqation. are paid and p.rtorm.d in tull. Notwith.tandinq the toreqoing, .0 lonq a. no Event ot D.t.ult h.. occurr.d, Mortqagor i. authoriz.d to coll.ct and r.c.iv. .aid r.nt., r.c.ipt., i..u.., profit. and oth.r incom. which authoriz.tion .hall c.... imm.diat.ly upon the occurr.nce ot the Ev.nt ot D.t.ult. Mortq.qor aqr... to u.. .uch r.nt., r.c.ipt., i..u.., protit. .nd other incom. in p.ym.nt of the Obliq.tion. and in p.ym.nt ot taxe., a.....m.nt., ..w.r .nd w.t.r r.nt., and c.rryinq charq.. coainq due again.t the Mortq.q.d Property. Ev.n prior to the occurr.nc. of an Ev.nt ot D.t.ult, Mortq.qor will not, without the writt.n cons.nt ot the B.nk, r.c.iv. or coll.ct r.nt or oth.r amount. trom any t.n.nt of the Mortqaq.d Prop.rty or .ny p.rt th.r.of tor a p.riod of more th.n one month in adv.nc.. 15. Modification ot Morta.a.. B.nk m.y, .t .ny ti.e .nd tro. ti.. to ti..: r.n.w or .xt.nd thi. Mortgaq.; waive .ny of the t.ra., cov.n.nt. or condition. h.r.ot, of the Not.., or of the rinancinq Aqr....nt., in whole or in p.rt; r.l.... .ny portion of the Mortqaq.d Property or any oth.r ..curity; r.l...., sub.titut. or .dd anI oth.r party liable h.r.und.r or und.r the Not.., or the Pinanc nq Aqr....nt.; .nd qrant .uch .xt.n.ion. .nd indulq.nce. in r.lation to the Obliq.tion. ..cur.d h.r.by a. lank m.y d.t.rain., all without the con..nt of Mortqaqor .nd without .ny ob1iqation to qiv. notic. ot .ny kind th.r.to to Mort9a90r or oth.r. and without, in any mann.r, att.ctlnq the liabiliti.. .nd obliq.tion. of Mortqaqor on the Obliq.tion., and the priority ot the li.n h.r.of on .11 or any p.rt of the Mortq.qad Prop.rty. 16. No Tr.n.t.r. Without the prior writt.n con..nt ot S.nk, which B.nk in it. .01. di.cr.tion ..y withhold, Mort9a90r -13- ~OOK lO~O rlGt ~~ ...... ., , '.\ 1\ -10 -. will ab.tain trom and will not cau.. or p.rmit, to the .xt.nt it m.y do '0, any tran.t.r ot legal or .quitable title to, b.n.- ficial int.r..t in, or any ..tat. or int.r..t in the Mortq.q.d Prop.rty or any part theraot, or of othar inter..t. in the Mort- q.q.d Prop.rty, volunt.rily or by op.r.tion ot law (oth.r th.n by de.th or by .x.cution or tor.cloaur. und.r this Mortgag. or by .xerci.. ot tha pow.r of .min.nt do..in), wh.th.r by sale, .xch.nq., l.a.., conv.yanca, m.rq.r, con.olidation or the grantinq ot any lien or ..curity int.r..t or oth.rwi.., or any aqr....nt to do any ot the for.qoing. In the av.nt that an att..pt to do or con..nt to any ot the tor.qoinq with r..p.ct to all or any portion ot the Mortq.q.d Prop.rty occur., the Obli- g.tion. .h.ll immediat.ly b.coma due .nd p.yabl.. 17. Bank's Richt to R...dv Datault.. Mortqagor ahall pay or cau.. to b. paid, from time to ti.a a. and wh.n tha .... .hall beco.. du., all ol.im. and d..and. ot any par.on. or .ntiti.. which, if unp.id, might r..ult in or p.rmit the cr.ation of . li.n on the Mortqaq.d Property or any p.rt th.r.ot, and .h.ll do or cau.. to be don. any and all thing. which may b. n.c....ry .0 that the li.n ot thi. Mortqaq. sh.ll be tully pre..rv.d and .0 th.t th.r. .h.ll not be cr..t.d, p.rmitt.d or .utt.r.d to .xi.t any li.n, .ncuabranca or ch.rg. .tt.ctinq the Mortq.q.d Prop.rty other th.n tho.e approv.d in writinq by B.nk, all .t the .ole co.t of Mortqaqor. It Mortq.qor .hould t.il to p.y r..l ..t.te or oth.r t.x.., a.......nt., w.t.r and ..w.r r.nt., ch.rq.. .nd clai.., sua. due und.r .ny prior li.n, or in.ur.nc. pr..iua., or f.il to ..k. n.c...ary r.pair., or parmit w..t., or t.il to cure any d.f.ult und.r any prior li.n, Bank, .t it. .l.ction, on .uch notica to Mortq.qor .. m.y be rea.onable und.r th.n-.xtant circum.t.nc.., .hall have the right but not the obliq.tion to make any p.ym.nt or .xp.nditur. .nd to taka .ny action which Mortq.gor .hould have ..de or taken, or which I.nk d.... n.c....ry or advi.abl. to prot.ct the .ecurity of thi. Mortgage and the Mortgaged Prop.rty, without pr.judice to .ny of B.nk', right. or reaedi.. .v.ilable her.under or otherwi.e, .t lav or in equity. All .uch .ua., a. w.ll .. co.t., advanc.d by lank pur.u.nt to thi. Mortq.qe .h.ll be due i...di.tely fr.o. Mortgagor to I.nk, .hall be .dd.d to the obliqation. ..cur.d her.by .nd the lien ther.for .h.ll r.lat. b.~k to the date of thi. Mortg.ge, .nd .h.ll bear inter..t .t a rat. which .h.ll be the d.f.ult r.t. of inter..t .pecifi.d in the Not.. fro. the date of payment by lank until the d.te of repaym.nt. to. i I ~ . '\ l_t ,I: 11. EIlviroftll.nt.al R.ar...r.t.at.iona.. Warranto i.. and Covenante. Mortqagor r.pr...nt., w.rr.nt. and cov.n.nt.l (a) Coaalianc. vit.h Law. I.,;', -11- ~ja~ lObO fA:( 485 -. (i) To the b.st of Mortqaqor's knowl.dq. (att.r due inquiry and investiqation), Mortgagor r.pre..nts and warrant. that th.r. i. no activity at the Premi... which ha. been conduct.d by Borrow.r., or is beinq conducted, except in compliance with (or which ha. been r...diat.d in accordanc. with) all statut.e, ordinance., requlation., ord.r. and r.quirem.nt. ot common law concerning (A) tho.e activitie., (B) repairs or con.truction ot any improvement., (C) handling ot any mat.rial., (D) di.charqe. to the air, soil, surfac. wat.r or ground water and (E) .torage, tr.atm.nt or dispo.al of any wast. at or conn.cted with any activity at the pr..i... ("Environmental Statute.") . (ii) Mortgagor shall cau.e all activitie. at the premi.e. to be conducted in complianc. with all Environmental Statut... Mortgaqor shall cau.. all p.rmit., licen... or approval. to b. obtain.d, and shall cau.e all notitication. to be mad., a. required by Environmental Statut... Mortgaqor shall, at all tim.., cau.. compliance with the term. and condition. ot any such approval. or notitication.. (iii) Mortgagor shall. upon r.c.ipt th.r.ot, provide to Bank copi.. ot: (A) application. or other material. .ubllitt.d to any qovernm.ntal aq.ncy in complianc. with Environm.ntal Statut..; (B) any notification. .ubaitted to any p.r.on pur.uant to Environm.ntal Statute.; (C) any permit, lic.n.., approval, ...nda.nt or lIoditication ther.to qrant.d pur.uant to Environaental Statut..; (0) any record or lIanit..t required to be maintain'd pur.uant to Environm.ntal Statut..; and (E) any corre.pond.nce, notice of violation, .uaaon., ord.r, cOllplaint or oth.r docUII.nt r.c.iVed by Mortgagor, it. 1......, .ubl...... or a..ign., p.rtaining to co.plianc. with any Environm.ntal Statute.. (b) site Contallination. (i) To the b..t ot Mortgagor'. knowl.dge (atter due inquiry and inve.tigation), Mortgagor r.pr..ent. andvarrant. the ab.enc. ot contaaination on or in the Mortgaq.d Prop.rty. Mortgagor .hall not p.rmit contamination of Mortgag.d Property by halardou. .ub.tance.. Mortgagor .hall, at all ti.e. cau.. -14- ~Og; 1080 P.l(,f 488 --. hazardou. .ub.tanc.. to b. handl.d on the pr.mi... In a mann.r which will not caus. an undue risk of contamination of the Mortgag.d Prop.rty. (ii) For purpo... of thi. ..ction, the t.ra >>contamination>> shall m.an the uncontain.d pr...nc. of hazardou. sub.tanc.. at the pr.mi..., or ari.ing trom the Pr.mi.... which may r.quir. r.m.diation under any applicabl. law. (iii) For purpo... of thi. .ection, >>hazardou. sUb.tanc..>> shall m.an >>hazardou. .ub.tanc.a" a. d.fined pur.uant to the Compr.h.nsive Environm.ntal R..pon.., Comp.n.ation and Liability Act, 42 V.S.C. 55 9601-9657, a. amended by the Supertund Am.ndm.nts and R.authorization Act of 1986, Pub. ~. Ho. 99-499, 100 Stat. 1613 (Oct. 17, 1986), "r.qulat.d ,ub.tanc.s" within the m..ning ot .ubtitl. I of the R..ourc. Con..rv.tion and R.covary Act, 42 U.S.C. 55 6991-6991i, aa am.nd.d bv the Sup.rtund Aa.nda.nt. and R.authoriz.tion Act ot 1916, Pub. L. Ho. 99-499, 100 St.t. 1613 (Oct. 17, 1986), and >>haaardou. wa.t.." a. detin.d pur.uant to the p.nn.ylvania Solid Wa.t. M.nag.m.nt Act, Pa. Stat. Ann. tit. 35, 55 6018.101 to .1003 (Purdon Supp. 1917), or any other sub.tanc.. which m.y be the aubj.ct of liability pur.uant to S.ction. 316 or 401 of the P.nn.ylvani. Cl.an Str.... L.w, Pa. Stat. Ann. tit. 35, SS 691.1 to .1001 (Purdon 1977 and Supp. 1917). (c) Oth.r Haz.rdou. or Toxic Mat.ri.l.. To the be.t ot Mortg.gor" knowledge (.ft.r due inquiry and inv..tigation), Mortqaqor r.pr...nt. and w.rrant. th.t there ar. no polychlorinat.d biph.nyl. or ,ub.tanc.. containin9 polychlorinat.d biphenyl. pr...nt on or in the Pr.mi"" a.be.to. or m.t.ri.l. containing ..be.to. pr...nt on or in the Pr..i.." or urea forw.ld.hyd. fora in.ulation on or in the Pr..i.... (d) !nvironaent.llv S.nsitive Ar.a.. To the b..t of Mortqaqor'. knowl.dqe (atter due inquiry and inv..tiqation), Mortgaqor r'pr...nt. and warrant. th.t no portion ot the Pre. i... con.titute. any ot the tollowin9 "Environa.ntally S.nsitiv. Ar....: (i) a w.tland or other "w.ter ot the Unit.d State.. for purpo... ot S.ction 404 of the t.d.ral Cl.an Wat.r Act, 33 U.S.C. S 1344, or any .i.ilar ar.. r.qulat.d und.r any .t.t. lawl (ii) a tloodplain or oth.r tlood hazard ar.a a. d.fin.d pur.uent to the P.nn.ylvania rlood Plain Manaq..ent Act, Pe. Stat. Ann. tit. 32, II 679.101 to .601 (Purdon Supp. 1917)1 (iii) a portion ot the coa.tal zone tor purpo... of the fld.ral Coa.tal Zone Man.g...nt Act, 16 U.S.C. 51 1451-14641 or (iv) any oth.r are. d.velop..nt ot which i. .pecifically r..tricted und.r applicabl. law by r.a.on of it. phy.ical ch.ract.ri.tic. or prior u... -11- ',JC' lO~O il':~ ~~7 --, (.) Radon. To the b..t of Mortgagor's knowl.dq. (attar due inquiry and investigation), Mortgagor repr..ents and warrant. that there is no inva.tigation of the Premi... beinq conducted tor the pr...nc. of radon gal or the pr..enc. of the radioactiv. decay product. of radon. Mortgaqor shall cau.. all con.truction of new structur.. on tha pr.mi.e. to u.e d..ign t.atur.. which safeguard against or mitigate the accumulation ot radon or radon-products in conc.ntration. axceeding an acc.ptabl. lev.l,in any such new structur~. At the .arli..t t.a.ibl. time during or att.r construction of any new .tructure on the Premi.e., Mortgagor shall commis.ion an inve.tigation of .uch n.w .tructur. tor the pr...nc. of radon or radon-product. and shall prOVide a report ot such inv..tiqation to Bank. For purpo.es ot thi. paraqraph, "acc.ptabl. lavel" shall m.an the lowe.t applicable maximum concentration ..tabli.h.d by any gov.rnmental aq.ncy with jurisdiction over the Pr.mi.... In the ab..nc. ot a l.gally bindinq maximum concantration, the "acceptabl. lev.l" shall b. an air conc.ntration ot 4 picocurie./lit.r. (t) Tank.. To the b..t of Mortgagor'. knowledqe (aft.r due inquiry and inv..tigation), Mortgagor repr...nt. and warrant. that there are no tank. pres.ntly or tormerly u..d tor the .torag. of any liquid or ga. above or below ground pr..ent on the Pr.ai... .xcept a. de.crib.d on Exhibit "C," attached h.reto, incorporated h.rein by thi. r.t.r.nce and h.r.by mad. a part her.ot. Mortqagor .hall neith.r in.tall nor p.rmit to be in.tall.d any t.mporary or perman.nt tank. for the storage ot any liquid or ga. aboVe or b.low ground .xc.pt a. in complianc. with the oth.r provi.ion. of this s.ction and att.r obtaining writt.n p.rmi..ion to do so from Bank. 19~ Environmantal Inv..tiaa~ion.. (a) Upon the occurr.nce of an Event ot D.tault, Bank may, at it. di.cr.tion, comai..ion an inv..tigation at Mortgagor'. exp.n.. ot (i) complianc. at the Pr.mi... with Environa.ntal Statut.., (ii) the pre..nce of hazardous ,ub.tanc.. or contaaination in the Mortqag.d Prop.rty, (iii) the pr..ence in the Mortqaged Prop.rty ot mat.rial. which are the .ubject ot Paragraph 18(c), (iv) the pr...nc. at the pre.i... ot Environa.ntally S.n.itiv. Ar.a. which are the .ubj.~t ot Paragraph 18(4), (v) the pr...nc. at the pr..i... ot radon-product., or (vi) the pr...nc. on the Premia.. ot tank. which are the .ubj.ct ot Paragraph 18(t). (b) In connection with any inve.tiqation pur.uant to Subparagraph (a) ot thi. Paragraph 19, Mortgagor, it. 1......, .ubl...... and a..ign., .hall comply with any r.a.onabl. r.qu..t tor intormation made by Bank or it. agent. in connection with any such inv..tigation. Mortqaqor r.pr..ent. and warrant. that any -1'- :::. lOhO ;\:: 488 -. re.pon.. to any such request for information will be full and complete . (c) Mortgaqor will a..ist Bank and it. aq.nt. in obtaininq any r.cord. pertaining to the Mortgag.d prop.rty or to Mortgaqor and the 1......, subl...... or a..iqn. ot Mortqaqor in conn.ction with an inv..tiqation pur.uant to Subparaqraph (a) of thi. Paragraph 19. (d) Mortgagor will accord Bank and it. aq.nt. ace... to all are.. ot the Mortqaq.d prop.rty at r...onabl. ti.e. and in rea.onable manners in connection with any inve.tiqation pur.uant to Subparaqraph Ca) of this Paragraph 19. (.) No inv..tiqation co..i..ion.d pur.uant to thi. paraqraph .hall have any eftect upon the r.pre..ntation. or warrant i.. made by Mortgaqor to Bank in thi. Mortqaqe. 20. Indemnitication. Mortqaqor hereby aqre.. to indemnify and to hold harmle.. Bank ot, from and aqain.t any and all .xpen.e., 10.. or liability su~ter.d by Mortqaqee by r.a.on of Mortqaqor" breach ot any ot the provi.ion. ot thi. Mortqaqe includinq, without limitation: (a) Any and all e~.n.e. that Bank .ay incur in complyinq with any Environmental Statu.., (b) Any and all co.t. that Bank .ay incur in .tudyinq or r...dyinq any contamination ot the Mortq.qed Prop.rtY1 (c) Any and all fin.., penaltie. or oth.r ..nction. (includinq a voidin9 ot any tran.ter ot the Mortqaq.d Prop.rty) r,.ultinq tro. the tailure of Mortqaqor to haVe co.pli.d vith Environm.ntal Statute., and (d) Any and all leqal and prot...ional f... and co.t. incurr.d by B.nk in conn.ction with the tor.qoinq. Thi. indemnitication .hall .urvive p.yment of the Not... 31. Event. ot Detault. Anyone or .or. ot the follovinq .vent. .hall con.titute an Ev.nt ot D.fault h.r.und.ra (a) Failure ot Borrov.r. to sak. any payaent of principal or int.re.t or any oth.r .u. in accordanc. with the t.rm. ot the Note. or the oth.r rinancinq Aqr....nt. within applicabl. qrace period., (b) Mortq.qor'. nonp.rtora.nc. of or noncomplianc. in any .aterial r..pect with any other .qr....nt., condition., covenant., provi.ion. or .tipulation. contain.d in the Hot.. or "I I, " ':1';.'. ' ' 'f:,. , '. " " i (,I -17- ., i' " .', ,!,{ ,I~ ~,c, 10~O rJ.t .~~ _c the Financing Agreements, not cured atter any applicable notice. and within applicable grace periods, it any, or Mortgaqor's nonpertormance or noncompliance with any of the agreeme~ts, condition., covenant., provision. or stipulation. contained in thi. Mortgaqe or any other agreement between Mortgagor and Bank, provided such nonperformance or noncompliance continue. for a period of thirty (30) day. from the date ot Bank'. notice to Mortgagor ot such nonperformance or noncompliance; (c) Any signature, statement, representation or warranty made in the Note., the Financinq Agreement. or this Mortgage, or in any financial statement, certificate, applica- tion, reque.t "r other document furni.hed to Bank by Mortgagor at any time prior to, now or hereafter, i. not true and correct in any material re.pect when made or delivered; (d) The occurrence ot any Event ot Detault under any ot the Financinq Agreement.; (e) The tran.fer or sale (except in the ordinary course or bu.ine..) of any part of the Mortqaged property or any intere.t therein, including, without limitation, the act. ot tran.ter de.cribed in paragraph 16 above, without the Bank'. prior written con.ent; or (t) Receipt by Bank of a notice troa Mortgagor pur.uant to subparagraph 27(b) or thi. Mortqaqe or receipt by Bank ot any notice pur.uant to 42 pa.C.S.A. S 8143(b) and (eI). 22. R..adi.. ot Bank. (a) Upon the happening of any Event ot Default, the entire unpaicS balance of the Obliqation., includinq inter..t a. ha. accrued thereon, and all other .us. .ecured by this Mortgaqe .hall beco.e i..ediately due and payable, at the option of 'ank, without notice to or demand upon Mortqaqor or any other per.on. (b) When the Obligation. .hall beco.e cSue and payable, either becau.e of .aturity or bec.u.e of acceleration upon the occurrence of any Event or Oetault, or otherwi.e, then torthvith in addition to all other right. ar re.edie. available under the Financinq ACJTCle.ente, at law or in equity: (i) Foreclosure. Bank aay in.titute an ace ion to foreclo.. upon thi. Mortgaqe by i..uance of a co.plaint, or aay taka .uch oth.r action at law or in equity for the enforceaant of thi. Mortqaqe and reelization on the acrt,a,e .ecurity o~ any other .ecurity herein or el.ewhere provicSecS for, a. the lav aay allow, and .ay proceed therein to final judqaent, eXecution and .ale tor the collection or the entire unpaicS balance of the -11- ~JC/ lO~O FACt iOO -. Obliqation., with intara.t th.r.on at tha than applicabl. rat. stipulat.d in tha Note. to the data of d.fault, and th.r.aft.r until p.ym.nt in full i. r.c.iv.d by Bank at a rat. which .hall b. the d.tault rat. of int.r..t sp.citi.d in the Not.., which Obliqation. shall includ. all oth.r su.. due from Mortqaqor to Bank in accordanc. with the provi.ion. ot the Not.., the Financing Agraamant. and thi. Mortgaq., inclUding all .um. which m.y h.v. b..n advanc.d by Bank to Mortg.gor att.r the date of thi. Mortgag., and all sum. which may have b..n advancad by Bank for tax.., wat.r or s.w.r rant., charga. or cl.im., paym.nt. on prior li.n., in.uranca or r.p.ir. to the Pre.i..., all co.t. ot suit, and tog.thar with Bank'. r.a.onabla attorn.y's coll.ction f..; and (ii) Po....sion. Bank may p.ac.ably and qui.tly antar upon, h.v., hold, us., occupy, po....., r.nt and oth.rwi.. anjoy the Mortgag.d prop.rty, with or without lag.l action .nd by tore. it n.c....ry; coll.ct th.r.tro. all r.nt., i..ua. and protit. ther.ot (WhiCh t.rm .hall al.o includ. .um. payable tor u.. and occup.tion (ot oth.r th.n Mortg.gor) and wh.th.r or not B.nk take. pO.....ion ot the Mortgag.d ~rop.rty) .nd, att.r d.ductinq all co.t. of coll.ction and administration, apply the n.t r.nt.l., i..u.. and profit. to any or .11 ot the followinq in such ord.r and amount. a. Bank, in B.nk'. .01. di.cr.tion, m.y .l.ct: the p.ymant ot any .um. due und.r any prior lien(.), tax.., w.t.r and s.w.r r.nt., charg.., coll.ction t... and .xp.n..., and to the m.int.n.nc., r.p.ir or r..tor.tion of the Mortgag.d prop.rty; and on account ot and in r.duction of the Oblig.tion. h.r.by ..cur.d. Bank .hall b. liable to account only tor r.nt., protit., royalti.. and oth.r amount. actually r.c.iv.d by Bank. In and tor th.t purpo.. Mortq.qor h.r.by a..iqn. to Bank all r.ntal., protit., royalti.. and oth.r ..ount. r.c.ivabl. due and to beco.. due und.r .ny l.a.. or 1....., or lic.n.. or licen..., or riqht. to u.e .nd occupy the Mortq.q.d Property now .xi.tinq or h.r..tt.r cr..t.d, a. w.ll a. all r1qht. and r...di.. provid.d in .uch 1.... or 1..... or licen.. or lic.n... or at law or in .quity tor the coll.ction ot r.ntal. .nd roy.lti... B.nk .hall have the ab.olut. riqht to the appointm.nt of a rec.i~'r tor the r.nt., i..u.. and protit. ot the Mortq.q.d Prop.rty with pow.r to talc. po.....ion of the Mortqaq.d Prop.rty includinq po.....ion fro. the Mortg.qor, it in po.....ion of and occupyinq any portion of the Mortg.q.d Prop.rty, and pow.r to 1.... and r.pair the Mortgaq.d Prop.rty and .uch oth.r pow.r a. .ay be d....d n.c....ry, without .ny con.id.ration of and tor the v.lu. ot the Mortq.q.d Prop.rty, or it. d.pr,ciation in value tro. any cau.. what.o.v.r, or the ,olv.ncy ot Mortq.qor or ot any par.on or p.r.on. liable tor the p.ym.nt ot the Not.. or oth.r .ua. dua h.reund.r or th.reund.r or any d.tault undar the tara. of the Not.., the Financinq Aqr....nt. or this Mortq.q.. -1'- c~~ 10~O PACE is! ...".' -.. -. (c) Bank shall have the right. at any time and from time to tim., to bring an appropriate action to recover any sum. r.quired to b. paid by Mortgagor und.r the terms ot thi. Mortgag., a. the sam. shall b.come du., without r.qard to wh.th.r or not any oth.r sum. s.cured by thia Mortqage ahall th.n be due, and without prejudice to the riqht of Bank thereatter to brinq an action to foreclose on thi. Mortqage, or any other action tor any oth.r detault by Mortgagor existing at the time the .arlier action w.. commenced. (d) Upon the occurrence of an Event of D.fault (or, in the c... ot an .m.rg.ncy threat.ninq the Mortgaq.d Property or B.nk's riqht. th.r.in, the occurr.nc. ot an event which if uncured will con.titut. an Event ot Det.ult with the pa..ag. of tim.), B.nk may (but is not obliqat.d to) p.y any sum or pertorm any oth.r obliq.tion for the account ot Mortqaqor which Mortgaqor ha. tailed to p.y or perform, and sum. .0 spent by Bank shall be add.d to the principal sum secur.d by thi. Hortgaq. and b. r.p.yabl. by Mortqagor on demand, and sh.ll b.ar int.r..t tro. the date ot .dv.nc. by Bank at a rate which shall be two p.rcent (2') hiqh.r than the then oth.rwis. highest applicable rate sp.citi.d in the Not.a until paid. (.) Any re.l ..tate, sold h.r.und.r or und.r the F1n.ncinq Aqr....nt. or other judicial proc.edinqa may b. sold in on. parc.l aa an entity or in such parcel. and in such ord.r and mann.r a. Bank, in it. sol. di.cr.tion may .l.ct. (t) All d.po.it. held in conn.ction with the r.ntal, 1...., licen.. or u.. ot spac. or oth.r t.ciliti.. on the Mortg.q.d Prop.rty at the tim. of the occurr.nce ot auch Ev.nt of O.fault, all int.r..t ot Mortgaqor in all pr..,uma tor, or div- id.nd. upon, any inauranc. for the Mort9.g.d Prop.rty, and all refund. or r.bat.. ot tax.. and a.......nt. upon the Mortqa9e4 Property, are h.r.by a..iqn.d to B.nk a. turth.r ..curity tOr ttle p.ym.nt of the Obliqation. durinq the continuance of any .uch Ev.nt ot Oef.ult. 23. Writ ot E1ectment. In the .v.nt of the occurr.nce of an Evellt of Oefault, Mortqa90r h.r.by authoriz.. and ..pover. the Cl.rk of Court or any attorn.y of any court of r.cord in the Coaaonw.alth of P.nn.ylvani. or el..wher., .. .ttorn.y for th. Mortq.90r .nd all p.r.on. clai.inq under or throuqh the Mort9a9or to .i9ft an .qr....nt tor .nt.rinq in .ny comp.t.nt cou~t an amic.ble action in .j.ctm.nt tor po.....ion of the Mort9a9.4 Prop.rty which i. the ,ubj.ct of thi. Mort9aq. .nd to .ppear for and conf... judqm.nt a9.in.t the Mort9a9or, and .qain.t all p.r.on. claimin9 und.r or throuqh the Mort9aqor, for the r.cov.ry by the Bank of po.....ion of the ...., without any .tay ot ex.- cution, for which thi. Hort9age or a copy ther.ot verifi.4 by -20- ~,jollObO PAGE ~92 -. aftid.vit, .h.ll b. sufticient warrant; and th.reupon a writ of po.....ion m.y be is.ued torthwith, without any prior writ or proc..dinq wh.t.o.v.r. The Hortqaqor h.r.by r.lea... the B.nk from .11 error. and d.tects what.oev.r in entering such action and jUdgm.nt and in cau.ing such writ or writ. to b. is.ued and her.by aqre.. that no writ or error, app.al, p.tition to op.n strik.-off judgment, or oth.r objection .hall b. filed or mad. with r..p.ct thereto. It, tor any rea.on att.r .uch action ha. b..n co...nc.d, the sam. shall b. di.continu.d or po.....ion of the Mortqaq.d Prop.rty which i. the ,ubj.ct ot thi. Mortgaq. sh.H r.main in or b. r..tored to the Mortqagor, the Bank sh.ll have the riqht for the sam. d.fault or any sUb..qu.nt d.fault to brinq on. or more furth.r amicabl. action. a. above provided to recov.r po.....ion of the Mortgaq.d Prop.rty which is the .ubject of thi. Mortq.q.. The Ba~ may brinq .uch amicabl. action in ej.ctm.nt b.tor. or aft.r the in.titution ot tor.clo.ur. pro- ce.dinq. upon thi. Mortqaq., or att.r judqm.nt th.reon, or att.r ..1. ot the Mortqaq.d Prop.rty which i. the ,ubj.ct of thi. Mortg.q. by the Sh.rift. 24. Riaht. and R.m.die. Cumulativa. (a) Th. right. and r.m.di.. ot Bank a. provid.d in thi. Mortgaq., in the Not.., and in tha Fin.ncinq Aqr..m.nt. sh.ll be cumul.tiv. and concurr.nt; m.y ba pur.u.d .ap.r.t.ly, succ...iv.ly or toq.th.r aqain.t Mortq.qor, aqain.t the Mortqaqed Prop.rty, or any oth.r par.on li.bl. h.raund.r or th.r.und.r, at the .01. di.cration of Bank; and m.y ba ax.rci..d a. ott.n .. occa.ion thar.ot .hall ari... Th. f.ilur. by B.nk to .x.rci.. any .uch riqht or r.m.dy on on. or more occ..ion. .hall in no .v.nt be con.tru.d a. a waiv.r or r.l.... th.r.of. (b) Any tailur. by Bank to in.i.t upon .trice p.rtora.nc. by Mortq.qor of any ot the t.ra. .nd provi.ion. ot this Mortqav., the Not.. or the oth.r rinancinq Avr....nt. .hall not be d....d to b. . w.iv.r of any of the t.raa or provi.ion. ot thi. Mortqaq., the Not.. or the oth.r rinancin, Aqr....nt., and Bank .hall have the riqht th.r..tt.r to in.i.t upon .trict p.rtoraanc. by Mortvaqor of any .nd all of th... (e) N.ith.r Mortgagor nor any oth.r p.r.on now ~r h.r.aft.r obltqat.d tor paym.nt ot all or any part of the Ob11,a- tion. .hall be r.li.v.d of such obliqation by r.a.on of the failure of lank to co.ply with any r.qu..t of Hort,a,or or of any oth.r p.r. on .0 obliqat.d to taka action to tor.olo.. on th1. Mort,a,. or to otherwi.. .nforc. any provi.ion of the Mort,a.., the Not.., or the Financinq Agr....nt., or by r.a.on of the r.l...., r.vardle.. of con.id.ratio , of all or any part of th. ..curity h.ld tor the Obliqation. I ..:ur.d by thi. MOl't,a,., Or '" rea.on of any aqr..m.nt or .tipulat .., "tw..n any .~.equ..nt -21- ~OQ~ lO~O pm 493 _c owner ot the Hortgaqed Property and Bank extending the time of p.yment or modifying the terma of the Mortgage, the Notes or the Financinq Aqreements without first having obtained the con.ent of Mortg.gor or such other person; and in the latter event Mortq.gor and .11 such other peraon. shall continue to be liable to make p.yment. according to the terma ot any such ext.n.ion or modification agreem.nt, unle.a expreaely relea.ed and discharged in writing by Bank. (d) Bank may release, regardle.. ot consideration, any part ot the security held tor the Oblig.tion. without, .. to the r.mainder of the security, in any way impairing or affectinq the lien of thi. Mtrtgage or its priority over any subordinate lien. (e) For payment of the obliqation. Bank may re.ort to any oth.r security therefor held by B.nk in such order and manner a. B.nk m.y elect. (f) The receipt by B.nk ot any sum. from Mortgaqor atter the date on which Bank, by rea.on of det.ult, elect. to accelerate the Obligation. secured hereby under the Not.., or the Financing Agreement., shall not con.titute . cure or w.iv.r ot such det.ult or a reinat.tement of the Note. or Mortgag. unle.. B.nk .xpre..ly .gree., by written notice to Mortgagor, that such payment sh.ll be accepted .. a cur. or waiver ot the detault. 25. Mortaaaor's w.ivera. Mortqagor hereby waive. and r.l.....: (a) All error., defect., and impertection. in any proc..ding inetituted by Bank under the Note. or thi. Mortqaqe and/or the Fin.ncing Agreement.; (b) All ben.tit. th.t might accrue to Mortqaqor by virtu. ot any pre.ent or future law exeapting the Mortqaged Property, or any part ot the proceed. ari.inq trom any .ale thereot, troa .ttachment, levy or .ale on execution, or providing for any .tay of .xecution, exemption troa civil proce.. or exten- .ion of ti.. tor payment; and (e) Unle.. apecifically required h.rein, all notice. ot Mortgaqor" detault or of Bank'. election to exerci.., or Bank'. .ctual exerci.. of any option under the Note. or this Mortgaga. 26. Coun..l F.... It Bank become. a party to any .uit or proceeding (including, without liaitation, appellate and bank- rup~cy or other in.olv.ney proceedinga) affacting the Mortgaged Property, title thereto, the li.n created by thi. Mortgaga, or Bank'. int.re.t therein, or it Bank .nqaqe. coun.al to collect -aa- ~oo~ lObO P~CE 491 -, any ot the Obligations or to entorc. p.rformanc. of the aqr....nt., conditiona, warrant i.., covenants, provision. or stipulation. ot this Mortqaqe, the ~ot.. or the Financing Aqr....nt., Bank's cost., expen... and r.aaonabl. couns.l f..., wh.th.r or not auit ia in.titut.d, shall b. paid to Bank by Mortqaqor, on d.mand, with int.r.st at the then .tf.ctiv. rat. s.t forth in the Not.a, and until paid shall b. de.med to be part ot the Obligations a.t forth in the Not.. and s.cured by thi. Mortqaqe. 27. Futur. Advanc... ea) Without limitinq any oth.r provi.ion. ot thi. Mortgaqe, thi. Mortgag. s.cure. prea.nt and future loan., advanc.. and ext.nsion. ot credit mad. by Bank to or for the b.n.tit ot Mortgagor and the lien of such future advanc.. ahall r.lat. beck to the data of thi. Mortgaq.. This Mortqaq. .h.ll al.o a.cure additional loan. her.aft.r .ad. by Bank to Mortq.gor. Nothinq contain.d h.r.in shall impoa. any obliqation on the p.rt ot Bank to make any such additional loan., advanc.. and .xtenaion. of cr.dit to or for the b.n.tit ot Mortqagor. (b) It Mortgaqor s.nds a writt.n notic. to Bank which purport. to limit the indebtedne.. s.cur.d by thi. Mortqaq. and to r.l.... the obligation ot the Bank to make any additional advanc.. to Mortqaqor, such notice ahall b. in.tt.ctiv. a. to any tutur. advanc.. .ad.: ei) to pay tax.., a.....m.nt., ..int.nanc. charqe. and in.uranc. pr.miuma; (ii) co.t. incurr.d tor the protection ot the Mortgaqed Property or the li.n ot thi. Mortgag.; (iii) .xp.na.. incurr.d by Bank by r.a.on ot the d.tault ot Mortqaqor and (iv) any oth.r co.t. incurr.d by Mortgaqor to prot.ct and pr...rve the Mortqaq.d Prop.rty. It i. the int.ntion ot the parti.. h.reto th.t any .uch advanc. .ade by L.nd.r atter any .uch notice by Mortqaqor .hall be ..cur.d by the li.n ot thi. Mortqaq. on the Mortgag.d Prop.rty. 21. Comaunications. All co..unication. r.quir.d und.r thi. Mortqaq. .h.ll b. in writing, and .hall b. ..nt by r.qist.red .ail, po.taq. pr.paid, return r.ceipt r.qu..t.d, or t.l.gr.pn, addr....d, .. tollowinq or to .uch oth.r addr... as the .ddr..... may d..iqnat. in writing in the mann.r provid.d h.r.inl -11- ~5iJ-' lO~O ~A~c i95 ..-. If to Mortqagor: Rotlert J. and Jean E. Colaizzi c/o Conaolidated Inaurance Group, Inc. 115 St. John. Church Road Camp Hill, PA 17011 With a copy to: Rhoada , Sinon Oauphin Bank Buildinq/12th Floor One South Market Square P. O. Box 1146 Harrisburg, PA 17108-1146 Att.ntion: Jack F. Hurley, Jr., Eaquir. It to Bank: CCNB Bank, N.A. 4242 Carlisl. Pike Camp Hill, PA 17001-8874 Attention: Thomaa L. Achey, Vice Pre.ident With copi.a to: Klehr, Harrison, Harvey, Branztlurq & Eller. 1401 Walnut Street Philad.lphia, PA 19102 Att.ntion: Morton R. Branzburq, Eaquire 29. Cov.nant Runnina with the Land. Any act or agreem.nt to be done or p.rtorm'd by Mortgaqor ahall be con at rued a. a covenant runninq with the land. 30. En~ire Aar....nt. Thi. Mortgaqe and the exhibit. and document. delivered pur.uant her.to and in connection h.rewith con.~itute the en~ire under.tandinq ot the partie. to thi. Kortqaqe with reapect to i~. aubject ..t~er, and auper.ede .nd repl.ce .11 other prior or contempor.neou. .qreement.. Mortqaqo~ acknowledqe. that there are no und.r.tandinqa or .qr....nt. with re.pect to the ..ttera .et torth herein ~hat are not .pecifically s.t torth in thi. Mortg.q. and auch exhibit. .nd document.. If any provi.ion of thi. Mortqaqe shall be held to be invalid, il- leqal or un.nforceable, auch provi.ion. .hall neverthele.. r...in v.lid, leqal and enforce.ble in all other reapect. to the ext.n~ perai..itlle; and any auch inv.lidity, ill.q.lity or unenforce- ability .hall not att.ct any other provi.ion of ~hi. Mortqa,e, but thi. Mortqaq. shall be con.tru.d a. if auch invalid, ille,al or unentorce.ble proviaion had never been contained in thi. Kortqaqe. -a.- ':Ja~ lOBO P~Ct ~9G _c 31. Bindina Eftact - Amandment. Thia Mortqage ia bindinq upon and inurea to the benetit ot Mortgaqor and Bank and thair re.pective aUCce..or. and aaaign.. Thi. Mortqaqe cannot be chanqed or a.ended except by aqree.ent in writinq siqned by the party aqainat whom antorce.ent ot the chanqe or amendmant i. louqht. 32. ~DDlicabla Law. Notwithatandinq the Stata and/or federal law which may apply to the righta and obligation. of the partie. to the Nota. and other rinancinq ~gree.ent., thi. Mortqaqe ahall be governed by and conatrued accordinq to the lawa of the Co..onwealth of pennaylvania. 33. CaDtiona. Th. caption. precedinq the text of the paraqraph. or aubparaqraph. of thia Mortqage are inaerted only tor convenience or reference and shall not con.tit~te a part of thi. Mortqaqe, nor ahall they in any way attect it. meaninq, con.truction or effect. IN WITHESS WHEREOP, the Mortqaqor haa executed and delivered thi. in.trument the day and yelr tir.t above written. Thia in.trument i. intended to conltitute an in.trument under .eal. WITNESS: 5 ~A;'-4-.- Qw~ ru A A" , Robert J .1;1-;z1l"~{ ~,~~.;'., - ~~ _ _--== ;IkJ j. ~, J E. Cola ~ ./ / Th~nd.r.iqn.d, beinq authorized to do ao, hereby certifies that the preci.e addrea. of the within n..ed .ortqaqee i. 4242 carli.le Pike, ca.p Hill, Pennaylvania 17001-8174. By: ~.,~..... co '. .~.....".,~,. . .;. "'I . . ............... . '; '~i'l.:l''- ~~ c:; , .w. " ,. . ,'. "'i,\o#,j' .."..' .' '. . /, .... ,"" ..'. , . ,.~"......,. '~.M"..t.ltm:.;,1.;.. ,.. . .,':".,,,... ....., .' ", ,.'~ e.. . ,4 CCNI BANI(, M.A. -11- rro; 1080 PACl ~ 97 IXJn:BI'l' "A" ALL THAT CERTAIN lot of land Cumb.rland County, Penn.ylvania, d.acrib.d aa follow., to wit: BEING ALL ot Lot No. 4~, Block 0, Plan 11, Pine Brook, which Plan ia record.d in the Cumb.rland county R.cord.r's Office in Plan Book 20, Paqe 89. situate in Hampden Townahip, more partlcularly bounded and HAVING THEREON er.cted a dwellinq houae known and numbered a. 4~' Lamp po.t Lane. UNDER AND SUBJECT, NEVERTHELESS, to conditions, restriction., ....m.nt., and riqhta-of-way ot record. BEING the .ame pr.milea which MARTHA HAJERAN, by h.r d..d datect March ~g, 1973 and recorded March 30, 1972 in the ottic. of the R.corder ot D..d. in and tor Cumb.rland County, P.nnaylvania, in Oeed Book "N", Volume 25, paqe 1052, qranted and conv.y.d unto O. ROGER MEASON AND ELIZABETH J. MEASON, hi. wit., Grantora her.in. . '. :'" ~~n~yIYlnj. } . "I.:..'1'1ller'lnd S8 . . . . . . . ,. ..' : n :~,e oHicelOt 'he recordl", of 0.- . ':";";':'::":"~..."-',:' LLL.;. ~ !or~ll~ County, r'~ "~,,'."...,,. ..' "-' )-L~ .-N.~. -page'$.LJ /.:..... ,..;;;;J..4.....,... .' '.: ,"'v nlnd 'old , 01 office :...,.-~.~, :M~'.,rl,.~,i'I~lh'l . cIoIyol - ..... .,.. , .' . ,.ICJ, ;r'.- ...,; ,.' ~. ,..., '. ff"" ,.,-1 "P': ~ 1,.\,. " ;'f". , . II. ...,IJ'.... jt" .., ,". ''f'' ,.t.. "_.. ~' ) .. ._ '"c-:.' ..... .-,(",' ',. ...." .1' "- t, _/ ,'.. ,.. .:', ) . .",. .. '.".\ '". . ", '-J'::--... I '..."...... :.;/1080 ;ACE 500 .,' , '1 " @ I I Ci) . i I 1 ~ , .. , .,: .. , / ,; '. .. .. , ;: ....,. . 3. Defendant JeWl E. Colaizzi is ll/l adult individual residing at 428 Lamp Post LWle, Camp Hill. PeMsylvWlia 17011. 4. Upon information WId belief, the Bank alleges that Roben 1. ilIld Jean E. Colaizzi (the "Co1ai12Is") ilI'e husbWld WId wife. 5, On or about October 31. 1988. the Bank made cenain loWls. ildvWlces ll/ldlor extensions of credit to Colaizzi WId Hager Partners and Hager.Grillldon InsUTilIlce Services. Inc, (the "Borrowers") in the aggregate principal WllOunt ofS 1.340,000.00 (the "Loilll"). As evidence of the LoWl. the Borrowers executed in favor ofCCNB that certain Mongage Note Wlted October 31, 1988 (the "Note"). A true WId correct copy of the Note is attached hereto as Exhibit "A". 6. In consideration of ilIld as security for the Loan. the Colaizzis executed WId delivered to the Bank that certain Open-End Mortgage and Security Agreement dated July I, 1992 (the "Mortgage") which was duly recorded on July 30, 1992 with the Office of the Recorder of Deeds for Cumberland County, Pennsylvania at Mortgage Book 1080, Page 473. A true and correct copy of the Mongalle is allached hereto as Exhibit "B", 7. The Mongage covers the property located at 428 Lamp Post LWle. Camp Hill. Pennsylvania (the "Property"), 8, The Colaizzis are the real owners of the Property, 9, The Colaizzis are in default under the terms of the Note WId Monllalle in that they have failed to make monthly payments of principal WId interest as and when due, ~HIL1\60U'l 2 WHEREFORE. PNC BWlk. National Msodalion. successor. in. interest to CCNB Bank. N.A,. demands judgment in mortgalle foreclosure in its favor and against Robert J. and Jean E. Colaizzi. jointly and severally. in the amount of $1.5 14.677. 17. plus interest. late charges. attorneys' fees and costs as they accrue and for the sale of the Property. KLEHR, HARRISON. HARVEY, BRANZBURG & ELLERS I I I. By: I ranzburg. Esquire Jeffrey H. Cohen. Esquire 1401 Walnut Street Philadelphia. PA 19102 (215)568.6060 . Attorney for PNC Bank. National Association. successor. in. interest to CeND Bank. N,A. ( , ,. Dated: April 24. 1996 " . , , '; I,; ., F. Ih , , [.' . . '" I I' 'I, t'l ">I '-iI, . " " .',1', I 1'1 ,',' -'r' ',I "1"'.1 ',t",\' ."",1.'1 '\": ':,::.,1":11;1\:"': t ',', 1"\'1 '"II ".\>1,\' ;'1"','i"'/,('\',I , . l '"fll;~'l' ",dh:,' .'1',,'1[',:,\'. /' ~ 'Ii. if!; 'n;'r: .. -, "j'I' "1'1 'Yt q~;,i,~f~ I"~"~ ",,',1.' ~KIL1"OU'1 4 .. I." '",,' ,( ',; 'j " VERIFICATION I Eric 0, Krimmel. verify as follows: I, I am a Risk Management Offic\!r of PNC Bank, National Association. successor in interest to CCNB Bank. N,A,; 2, I am authorized to make this Verification on its behalf; 3, I have read the stalemems contained in the foregoing Complaint in Mortgage Foreclosure: 4. The statements contained therein are true and correct to the best of my knowledge, information and belief. I make this statement understanding that il is subject to the penalties of 18 Pa.C.S.A. ~4904 relating to unsworn falsification to authorities. Dated: April 23. 1996 fA ~C?':-. ~ - <:::L Eric D. Krimmel , , 'I" . , i,l, , "I " . " . I '1 , " '. ., ,\ , i II , \ "- ,I " ,~ I " / ,. , I /,i , I . , i I ~ I: (j) I I I I t ~ '. ~ ,', I % o'r 1" I ,I ' \,1' I," Ii' i ~, I' ~ I, . II I';' " / , i I ......' ; PNC BANK, NATIONAL ASSOCIATION, succe..or in interest to CCNB BANI< , N . A. , 4242 Carlisle camp Hill, PA IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Pike 17011, Plaintiff vs. NO. 96-2213 CIVIL TERM r '.":J '?, ~.; '" ;::'. "'" -,j . I~ .'. , I "3 ;:0. ~, C"' ~- .:, "" ':~ ;,....: ?il " I < " .# <XI ~ ROBERT J. and 428 Lamp Post Camp Hill, PA JEAN E. COLAIZZI, Lane 17011, Detendants MQII~.E YOU HAVE BEEN SUED IN COURT. It you wish to defend against the claims set forth in the tollowing paqes, you must take action within twenty (20) days after this Complaint and Notice are served, by enterinq a written appearance personally or by attornoy and filinq in writing with the Court your de tenses or objections to the claim. set torth against you. You are warned that it you fail to do '0, the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money in the Complaint or for any other claim or relief requested by the Plaintitt. You may lose money or property or other rights important to you. YOU SHOULD TAl<E THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. COURT ADMINISTRATOR CUMBERLAND COUNTY COURTHOUSE 1 COURTHOUSE SQUARE FOURTH FLOOR CARLISLE, PA 17013 (717) 240-6200 , i! t- , ., I' '. r intormation or knowledge to form a belief as to when and/or it the Mortgaqe was recorded with the Office of the Recorder of Deeds for Cumberland County, Pennsylvania, at Mortgage Book 1080, Page 473. 7. Admitted in part and denied in part. It is admitted that the Mortgage references and covers the property located at 428 Lamp ~ost Lana, Camp Hill, Pennsylvania. It is denied that the Mortgage was executed in consideration ot or as security for a loan. 8. Admitted. 9. Admitted in part and denied in part. It is admitted that Robert J. Colaizzi is in default under the terms of the Note in that he has failed to make all monthly payments ot principal and interest as and when due. It is denied that Robert J. Colaizzi is in detault under the Mortqage. It is turther denied that Jean E. Colaizzi is in detault under the Note dated October 31, 1988, or Mortgaqe raterenced in Plaintitt's paragraph aix, or that she ha. failed to make monthly payments of principal and intere.t aa and when due. By way ot further answer, Jean E. Colai z z i i. not obligated under the Note or Mortgage. 10. After reasonable investigation, Defendants are without sutUcient intormation or knowledge to form a belief a. to the truth ot the assertion concerning the amount that Robert J. Colaizzi is indebted to the Bank under the Note. By way ot further answer, it is specifically denied that Jean E. colaizzi i. indebted to the Bank for any amount relative to the Note or that the Defendants are indebted under the Mortgage referenced in Plaintift's Complaint. 11. The allegations set forth in paragraph 11 are conclusions of law to which no response is required. To the extent that a response is required, the allegations set forth in paragraph 11 are specifically denied. 12. The allegations set forth in paragraph 12 are conclusions of law to which no response is required. To the extent a response is required, it is denied that the Bank is entitled to attorneys fees, costs and expenses incurred by the Bank in connection with this matter. WHEREFORE, Detendants deny any and all liability to the Plaintitt under any caua.. of action declared or set torth in Plaintift's Complaint and accordingly requeat that Plaintiff'. Complaint be dismisaed. NIW MATTIR 13. Paraqrapha one (1) through twelve (12) ot Defendant.' Answer are hereby incorporated by reterence .a it tully .et torth herein. 14. Jean E. Colaizzi was not a borrower trom CCHB, on the Mortqage Note dated October 31, 1988 in the amount ot . $1,340,000.00, referenced as the "loan" in paragraph 5 of Plaintiff's Complaint. 15. Jean E. Colaizzi had no connection or relationship or involvement to the Mortgage Note dated October 31, 1988 or the loan evidenced by said Mortgage Note. 16. Colaizzi and Hager Partners, and Hager-Grandon Insurance Services, Inc. were independently creditworthy of obtaining the principal amount of $1,340,000.00 from CCNB when CCNB made loans, advances, and/or extensions of credit to Colaizzi and Hager Partners and Hager-Grandon Insurance Services, Inc. 17. CCNB and PNC Bank collectively referred to herein as the "Bank" did not rely upon Jean E. Colaizzi's assets, signature, or her marital relationship with Robert J. Colaizzi when the Bank made certain loans, advances, and/or extensions of credit to Colaizzi and Hager Partnors and Haqer-Grandon Insurance Service., Inc. as evidenced by the Mortgaqe Note dated October 31, 1988 and attached to Plaintiff's Complaint as Plaintif(' s Exhibit "A". 18. The purpose and reason for the subsequent reque.t by the Bank for the execution of the document entitled "Open-End Mortgaqe and Security Agreement", attached as Exhibit "B" to Plaintitt'8 Complaint, was based solely upon the marital status ot the Defendants Robert J. and Jean E. Colaizzi. 19. The Bank is a "cred! tor" as defined under the Equal Credit Opportunity provision of the Federal Consumer Credit . Protection Act, 15 U.S.C. 51691 ~. u.g., and Regulation B, 12 C.F.R. 202.1 ~. ~. 20. At all times relevant herein, Plaintiff, in the ordinary course of business, regularly extended, offered to extend or arranged for extension of credit to it customers for which a tinance charge was imposed. 21. Plaintiff has violated the Equal Credit opportunity provision of the Foderal Consumer Credit Protection Act, 15 U.S.C. 51691 ~. ~., and Regulation B, 12 C.F.R. 202.1 ~. ~. by requiring Jean E. Colaizzi to sign the Mortqage notwithstanding the fact that: a. Robert J. Colaizzi, David M. Hager, Colaizzi and Hager Partners and Hagel:-Grandon Insurance Services, Inc. qualified under Plaintiff's standards for creditworthiness for the amount and terms ot the credit requested; and b. Plaintitt required that Defendant Jean E. Colaizzi serve as a subsequent Co-Mortgagor ot Detendants residence because of Jean E. Colaizzi's status of Robert J. Colaizzi's wife. WHEREFORE, Detendants respect tully request that the Complaint in Mortgaqe Foreclosure be dismissed and the Mortgage be declared invalid and stricken, and further: 1. Declar€l Plaintiff's action in requirinq Jean E. Colaizzi to enter into the open-End Mortgage and Security A9reemen~ to be in violation of the "Equal credit opportunity" provision of the Federal Consumer Credit Protection Act, 15 U.S.C. 51691 g,.t. ~., and Regulation B, 12 C.F.R. 202.1 g,.t. .u.g. 2. Enjoin Plaintift, its agents, employees and assigns from collectinq or attempting to collect by any means from the Detendants any monies outstanding on the loan from Plaintitf which are asserted by Plaintiff in Chis matter. 3. Award Detendants reasonable attorney's fees as provided by law, costs and such other relief as the Court may deem just and proper. a Gary re II TILLI, ICHIFFMAN, BROWN' CALHOON, P.C. 2040 Linglestown Road Suite 106 Harrisburg, PA 17110 (717) 540-9170 Attorney for Defendants " , , I I :;'.t, ,", (~. I , , . 'J "'.; , I I" 'f.}, '" r:: , , I r" .'-. il' ,. ; ,'.;, I I " "q ,. ., . l;,.l ,I,' , ,1'\1 ',1,0,. .. .." ..:::~ , , I ~ ',....,-. 'll -\ ~ ~I ~ g Q ,... r ~ ,... I ~ i i , F I , I I v., ~ I ... "" lI\ '& d ~ Ii ~ ] ,'. i. I. i, , , i I , . I ~ -..l ..., .., ...... " " ,. " , . " ., , ("- t.:') ()', ('." 0, -to, on,'" .", )::[ (.III 'I :""I~'J ", ':~i "'.-. " "j / ')1; !f/ r,.t,:.. C~.:' I. '.J ";,' :;',.-, ;J~ ....'. r' -"t- ",' <<';-, ~. ;}- )..",,", ,~... t.~5n "..., ',,1 ::> '~11 -, I..., ... ,I>' I,'. , , 1',' ." .. , , I '1 :, I I f I . I I '1 ., ,. KLEHl{. HARRISON. HARVEY, BRANZBlIlW & ELI.ERS BY: MORTON R, DRANZBURO, ESQUIRE/JEFFREY H. COHEN. ESQUIRE IDENTIFICATION NOS. 24477/69740 1401 WALNUT STREET PHlLADELPHIA,I'A 19102 (215) 568-6060 Attorneys ti.n Plaintiff I'NC Bank. National Association. successor in intereslto CeNB Bank, NA --~ PNC BANK. NATIONAL ASSOCIATION. successor in interest to CCND Bank. N.A. 4242 Carlisle Pike Camp HiII.PA 17011, CUMBERLAND COUNTY COURT OF COMMON PLEAS PlaintitT. NO, 96-2213 Detendanls, I , I I . " I ,. ',J , .. '.~ III i", 'I " .~. ,) '. I v, ROBERT J, COLAIZZI and JEAN E, COLAIZZI 428 Lamp Post Lane Camp Hill, PA 17011, NOTICE OF SHERIFF'S SALE NOTICE OF SHERIFF'S SALE OF REAL PROPERTY TO DEFENDANTS: Robert J. Colaizzi and Jean E. Colaizzi TO ALL OTHER PARTIES IN INTEREST: PNC Bunk. N.A, Gertrude Kindler Valley Trust Company of Palmyra The Delendants' real eslate, and any improvemenls thereon. located at 428 Lamp Post Lane, Camp Hill, Pennsylvania (as more fully described in Ihe mete.~ and bounds description attached hereto) is scheduled 10 be sold al Sheriffs Sale on Wedne!d~. MBreh!\. 1997 at 10:00 L.... in the Commissioners' Hearing Room, Second Floor, Cumberland Counly Courthouse, Carlisle,PA to enforce the court judgment of $1.544.261.29 obtained by plaintiff. PNC Bank. N,A, apinst the defendants in the above..caplioned uction, The owners and reputed owners of the property to be sold are: Robert J. Colaizzi and leun E. Colaizzi. . 462.l1/3.~.WO()f) \I I, " '':''':''.i''l ... i, I " -I' r"j ,', r " . "J " " ~1,' ;' .J I [, I " J loq I I'-~ I.' :;J ' .,~ [. J:~ ", i ',,) ,', , ",1 ):,., , - :,:") .. I.ll!'l ::l ~; : f .. ""i r ,) ....1.1. " NOTICE OF SHERIFF'S SAtE OF REAL PROPF.RTY TO: All Parties in Interest and Claimants FROM: Morton R. Branzburg. Esquire Jeffrey H, Cohen, Esquire Klehr. Harrison, Harvey. Branzburg & Ellers 1401 Walnut Street Philadelphia, PA 19102 (215) 568.6060 OWNERS: Robert 1. Colaizzi and Jean E, Colaizzi PROPERTY: 428 Lamp Post Lane, Camp Hill. PA 17011 NO, 96.2213 The above-captioned property is scheduled to be sold at the Cumberland County Sheriff's Sale on WednHd~. March 5. 1 tJ97 at 10:00 A,M, in the Commissionen' Hearing Room. Second Floor, Cumberland County CourthQuse. Carlisle. PeMSylvania, Our records indicate that you may hold a mortgage, lien or judgment on the property which may be extinguished by the sale, You may wish 10 attend the sale to prolect your interests, A schedule of distribution will be filed by the Sheriff on a date specified by the Sheriff not later than thirty (30) days after the sale, Distribution will be made in accordance with the schedule unless exceplions are filed thereto within ten (10) days after the filing of the schedule, " 4621111119006 :,~ \ " \ ,I I ':', "" I i ! I !I"\"'I \ \ ' ,\ \:\ I \ . '" <' , ! I , " 1 1-' I l "-1 - "J ,'; j' \ t~ ,;, .1 I " In \ .. I " ,.::> ,".. t.,)' t , ,j 1 ....... I i I I . r , I I, , !'., I I. " ' I . jl I ;i I , \ i, , I l :! I 'I I , I' ! It ., , ~, , I! . , I . ., I. I , i 'I " r , . i i ) j , I I t \ I Ii, 'I I \ , i I \ ; I !I, " ~ I r l I' j; 't I " , I )0 \ . " A , ~ I i , , y i} I I ./ " " i I , ;;, i i ',' ii, " Ii; . " ~ I;' ~ , '" I . I lD " ,( 1~'" 'I " l! I I I I. I~ I , (,1 .u n '~ ...J :'1 -: \ "1"11 'i " ' ''1 r: ~ ,',J "('" I " '11 , ,J \1.' l...J , ,1.., r "'I , ' , -, , ':'? . tt1 ), , ,) I :n ,.:! I' Iv -<; i , \ !' , , .. ~ I' ; , I , .. 2, Namc and Addrcss of Dcfcndants in thc judgmcnt: lSlIIns: Addrcss Robert J. Colaizzi and Jean E. Colaizzi 428 Lamp Post l.anc Camp Hill. PA 17011 3, Nwne and last known address of every judgmcnt creditor whose judgmcnt is a record lien on the real property 10 be sold: tiwns: Address PNC Bank. N.A, 4242 Carlislc Pike Camp Hill, PA 17011 Gertrude Kindler 107 St, John's Church Road Camp Hill, PA 17011 James C. Bartoli, Inc. 325 S, Cemelery Avenue Carlisle. PA 17013 4, Name and Address of Ihe last recorded holder of every mortgage of record: ~ M~ PNC Bank, N.A, 4242 Carlisle Pike Camp Hill, PA 1701! Valley Trust Company of Palmyra (Address cannot be reasonably ascertained allhis time) 5, Name and Address of every olher person who has any record lien on Ihe property: ~ Address None 6, Name and Address of every other person who has any record interest in the property which may be afti:cled by the sale: ~ Address None Plln,llll),\),1 "". " , \ , , ,: 1," !' .. ' " ~ EX1ltII'! "l" I I f [, I I t, ALL THAT CERTAIN lot of lan~ Cumberhn~ County, P.nn.ylvlni.a, d..cric.d I' follow., to Wlt: BEING ALL of Lot No. 43. Block 0, Plln 11, Pine srook. which Plan i. recorde~ in the Cl.I.IIlberland County R.corder'. Of fie. i.n Plan Book 20, P.qe 89. situate in Hampd.n TQwn.hip, more particularly bound.d and KAVING THERION er.ct.d I dw.llinq hou.. known and numcereel a. 42. I...p Po.~ tAne. UNDER AND SlJBJECT, NEVERTHELESS, to condition., re.triction., ......nt., Ind riqht.-of-way ot r.cord. BEING the .... pr..i.e. which MAR'rHA KAJERAN, cy her d.ed dat~ Marcb 29, 117" and recorded Marcb 30, 1972 in the ottic. of the R.cord.r ot D.ed. in and tor CUmDerland County, Penn.ylvani., in D.ed look "N", Volume 25, paqe 1052, qrant.d and convey.d unto D. ROGER MIAION AND ELIZABETH J. MEAlON, hi. wit., Grantor. herein. . . ~. ~ ~~",v'v.nj. } SI , "/" ..'TlDt".nd . . " - ..' ," :~. offlC41 fOt I'"~ 'ecOtdl". of D... ....~~;-"'".c- " f--t/g,:" ~O'Lfm:'II"d cou:45:s ...~ ..,........" . - :,~,.#,,,,.~. !..... ; :"'1( Ot. _pt. !.~,'~' ,....~.......... . .... . ': ,"'v "and 'old 101 offlc. ...,:'"'~..~' . ~Frl"\,, i'A 11'11' . doIyoI ~, , ~.-<, - ." ,J fI.: '''i'W'' \.1" ..' . ~'." , . '~'''';' '. '" ", ~....-. !'.,.r.. ... '. '. ...#II'. ~. . jt..' " ,'. Of' !'t", ."" "'\' )..'" .. ,.~ ,.,"'~l' " .. ~ . " 0" ,'. "1":'"' ," . ~ ... \. " " ".J...' '" , ,.,<,6 .....".... ::; 1OS0 ;ACE 500 ~ .. h en lO') <.; ',~ -.J " , , 0...,,1. . , "1 r, '~I . " I'~ "'J ,> r- 0_0 '[ , ~ f, ., .'1"1 i ~I '. : " , ",h1 ~'J J I .,,' ,~,,) ;q ., 'T' 0', tl PNC Bank National Association vs Robert J, Colaizzi and Jean E. Colail.zi In Ihe Court of Common Pleas of Cumberland County. Pennsylvania Writ No. 96-2213 Civil Term Timothy Reitz. Depuly Sheriff. who being duly sworn according to law. says on January 6, 1997 a112:11 o'clock I'.M.. E.S,T" he po sled Ihe property of Robert J. Colaizzi and Jean E. Coluizzi at 428 Lamp Post Lane, Camp Hill, Cumberlnnd County, Pennsylvania. wilh u copy of Real Estate Writ, Notice Poster and Description according to law. Timolhy Reitz, Deputy Sheriff. who being duly sworn according to law, says on Januury 14, 1997 at 7:32 o'dock P,M.. E,S,')',. he served Irue copies of Real Estate Writ. Notice Poster and descriplion in the above entitled uction upon one of the within named defendants. to wit Robert J, Colaizzi by making known unto Robert J, Colail.zi ul428 Lump Post Lane. Camp Hill, Cumberland County, Pennsylvaniu, its contenls and atlhe same time handing to him personally the said Irue and aUested copies of Ihe same. Timothy Reitz. Depuly Sheriff: who being duly sworn according to law. says on January 14. 1997 at 7:32 o'clock P.M., E.S:r.. he served Irue copies of Real Estate Writ, Notice Poster and Descriplion in the above entitled aClion upon one of the within named defendants. 10 wit: Jean E, Colaizzi by making known unto Jean E. Colzizzi at 428 Lamp Post Lane, Camp Hill. Cumberland County, Pennsylvaniu its conlenls and al the same time handing to her personally the sa'Rt Irue and aUested copies of the same. R, Thomas Kline. Sheriff, who being duly sworn according to law. says that he served the above Real Estate Writ. NOlice Posler and Description in the following manner: The Sheriff mailed one of the within named defendanls. to wit: Robert J, Colaizzi a notice of Ihe pendency of the action by regular mail 10 his last known address at 428 Lamp Post Lane. Camp Hili, Pennsylvania 17011. This leuer was mailed under the date of January IS. 1997 and was never returned to the Sheriff s Office. R. Thomas Kline Sheriff: who being duly sworn according 10 law. says Ihat he served the above Real Eslale Wril, NOliee Poster and Descriplion in the following manner: The Sheriff mailed one of the within named defendants, to wil: Jean E, Colaizzi a nOlice of the pendency of the action by regular mail 10 her last known address al428 Lamp Post Lane, Camp Hill. Pennsylvania 170 II, This le/ler was mailed under the date of January 15. 1997 and was never returned to the Sheriffs Office. Real Eslate sale was poslpone till June 4. 1997 by AUorney Jeffrey Cohen R, Thomas Kline, Sheriff, who being duly sworn according to law, says thaI after due and legal notiee had been given according to I,IW, exposed the within described premises al public venue or outcry at the Court House. Carlisle, Cumberland County, Pennsylvania on June 4. 1997 at 10:00 A.M., E.n.S:r., and sold Ihe same filr the slim of$I.OOO.()() 10 At/orney Johnna J, Dcily for Land Holding Corp. Of Pa., Its successors nnd nssigns al4242 Carlisle Pike, Camp Hill, Pa.17011. It being highest bid nnd Ihe besl price reccived lilt the same Land Holding Corp, Of Pa. Its successors and assigns al 4242 Cmlisle Pike. Camp Hill. Pennsylvania 17011. being the buyer in this Execution paid SheriffR, Thomas Kline.lhe sum 01'$758,73, it being poundage. stamps etc, Sheriffs COSls listed below. See at/ached distribution sheet for additional costs, Sheriffs Costs: . Docketing Poundage Posting Bills Advertising Acknowledging Deed Auctioneer Law Library County Mileage Cert Mail Levy Poslpone Sale Surcharge Legal Search Law Journal Palriot Posters Disl. Of Proceeds Sheriff's Deed Total 30,00 20.00 15,00 15,00 30,00 10,00 .sO, 1.00 17.36 3.73 15,00 25,00 6,00 150,00 166,25 163,75 40,64 25,00 24,50 $758,73 Pd, By Ally, 7.4.97 So answers'(',,(" " " ." J/{~~ ' R, T;C-Kii~~.'SheritT ',' ~.. Sworn and subscribed to before me this I,.~ dayof~_1997 -QI~~~' ~w~ ,~ by , (1((<,1... ~ .Jl 0.2,1.>,>,-, Deput SheritT " ,~,~ ,0 oJ':> Gk. 17 7 ~ ., :u /, ) 4, tf..;~1.1 - -..II, ~ SCHEDULE OF D1STRIBTUION REAL ESTATE SALE NO.4 Date Filed: June 26, 1997 Writ No, 96.2213 Civil Term Sale Date: June 4, 1997 Amount of Bid: $1,000,00 Buyer: Land Holding Corp, Of Pa 4342 Carlisle Pike Camp Hill, Pa. 17011 Atty,: Johnna Diely PNC Bank Nalional Assocition Vs Robert 1. Colaizzi and Jean E, Colaizzi 428 Lamp Post Lane Camp Hill, Pa. 17011 Real Debl Interest Atty, Wril Costs Total $1,544.261,29 87,070,62 72,00 $1,631.403,91 758,73 758,73 000,00 Total Amount Collected SheritY's Costs Total $ Distribution: 241.27 1. Credit Writ No, 96.2213 Civil PNC Bank Nat. Assoc, $241.27 Refund to Ally Advance Costs Refund 5241,27 SO ~::~;~~,:I.<.I-1~, ['~dmB5 Kline. Sheri~ by t1w.l~ l2Q'l ,.... Real Estate Deputy WRIT OF EXECUTION end/or AnACHMEN'r COMMONWEAL TH OF PENNSYLVANIA) COUNTY OF CUMBERLAND) NO. 96-2213 CIVIUIJ..n:EM CIVIL ACTION, LAW TO THE SHERIFF OF ....-ClDnberli'md ,_COUNTY: To sallsly the debt, Inlerest and costs due _l'N.cllank~.lIationa l_l\ssncintion 4242 Carlisle Pike , CaDp Hill., Pa. 1701l lrom.. Robert J. Co1aizzuod...J,CilD....h..t;:Ql<l.Uz i 17011 ______.______..____._,____.. PLAINTIFF(S) 428....1~..l'Qll..U,ane. CiJTlD Hill. Pd. DEFENDANT(S) (1) You are directed to levy upon the property 01 the defendant(s) and to sell real propert,y, of _c;!~f~n9!!n.t.~_J~,'!,te(LQL~1!Ll.t!l'J2..l'os.L.l,arl'~~L~~.!'fU.LUl.~ ] 170 11 (2) You are also directed to allach the property of the delendant(s) not levied upon In the possession of . GARNISHEE(S) as follows: and to nollly the garnlshee(sl that: (a) an allachment has been Issued; (b) the garnlshee(s) Is/are enjoined Irom paying any debt to or lor the account of Ihe defendant(s) and from delivering any property of tha defendant(s) or otherwise disposing thereot; (3) II propertyoflhedelendant(s) nollevledupon an subjeclto allachmentls found In the possession of anyone other than a named garnishee, you arB directed to notlly hlrTVher that he/she has been added as a garnishee and Is enjoined as above stated, Amount Due .__..ll....5.iL1H.l'L___. n ...._.. . _. ..,_., ___ , Ihfe7J'st6:~~:_~33f?, 18 per diE~'JL____.___.. Ally's Comm ______.____.._% _,_________ Ally Paid ___.____.....1l..lliL Plalnlilt Paid ___ __...____..._ __.. , L.L. ___J!O . 5,Q Due Prothy _hlllL-- Other Costs Date: ,__Ilecember.A.....mli.._...__... Lawrence E. Welker Prothonotary, Civil Division C)lM.f Jl.. 0 "Y\\.I 0.. . , I' by: REQUESTING PARTY: Name .J"ffrey,..u......ColJen~~ Address: lAni. Wa 1 nil t s t rf',' t Deputy _1'11i ladf.!1phla......ra~ I nJ Allorney lor: _,........l'..!'K:~'-l!.LI.:'~"____ TeleptlOne _..1115) 'i68:6QpO....___..___...____ Supreme CourtlD No, _.JJ~)HJlHUH_.._.... ____.__... , ........' ;"1 KLEHR, HARRISON, HARVEY, BRANZBURG & ELLERS BY: MORTON R, BRANZBURG, ESQUIRE/JEFFREY H. COHEN, ESQUIRE IDENTIFICATION NOS. 24477/69740 1401 WALNUT STREET PIIILADELPIIlA, PA 19102 (215) 568-6060 Attorneys for Plainliff I'NC Bank, National Association, successor in interest to CCNB Bank, NA I, 1 PNC (lANK, NATIONAL ASSOCIATION, su.;cessor in interest to CCNB Dank, N,A. 47.42 Carlisle Pike Camp 11ill, PA 17011. CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, NO, 96-2213 v, ROBERT J, COLAIZZI and JEAN E. COLAIZZI 428 Lamp Post Lane CampHiIl,PA 17011, Defendanls. NOTICE OF SHERIFF'S SALE NOTICE OF SHERIFF'S SALE OF REAL PROPERTY TO DEFENDANTS: Robert J, Colaizzi and Jean E. Colaizzi TO ALL OTHER PARTIES IN INTEREST: PNC Bank, N.A. Gertrude Kindler Valley Trust Company of Palmyra The Defendants' rea! eslale. and any improvements Ihereon, located at 428 Lamp Post Lan.l, Camp Hill, Pennsylvania (as more fully described in Ihe metes and bounds description attached hereto) is scheduled 10 be sold al Sheritl's Sale on WIiIncsday. March !I. 1997 a. IO:OCh.... in the Commissioners' lIearing Room. Second ;'Ioor. Cumberland Counly Courthouse. CIU'1isle, PA to enforce Ihe court judgment of $1,544.261.29 ohlained hy plaintiff. PNC Bank. N,A. against the defendanls in Ihe uhove-caplioned aclion. The owners and repllled owners of the property to be so~ arc: Ruhert J. Colaiai and Jcan E. <.\)Iaizzi, 462JlllH9I}Ol'l NOTICE OF OWNER'S RIGHTS i " i To prevent this sheriffs sale, you must lake immediate action: , I ( I: I I TO THE DEFENDANTS: Robert 1. Colai7.zi and Jean E, Colaizzi YOU MA Y BE ABLE TO PREVENT THIS SHERIFF'S SALE I The sale will be canceled if you pay to Plamtiff, PNC Bank, N.A. SI,544,261.29 plus interesl and costs. To find how much you must pay, you may call: (215) 568-6060. 2. You may be able 10 SlOP Ihe sale by tiling a petition asking the Court to strike or open thejudgmelll, iflhejudgrnent was improperly enlered, You may also ask the Court 10 poslpone the sale for good cause, 3. You may also be able to stop the sale through other legal proeeedinll~, You may need an allomey 10 assert your rights. The sooner you contact one,the more chance you will have al stopping the sale, (See notice 011 page 3 011 how 10 oblain an allomey,) YOU MAY STILL BE ABLE TO SAVE YOUR PROPERTY AND YOU HAVE OTHER RIGHT~ EVEN IF TilE SHERIFF'S SALE DOES TAKE PLACE. I. Iflhe Sheriffs Sale is not slopped, your property will be sold to the highest bidder. You may find oullhe price by calling (717) 240-6390. 2, You may be able to petilion the Court to set aside the sale if the bid price was grossly inadequate compared to Ihe value of your property, 3. The sale will go through only if Ihe buyer pays the Sheriff the full amount due in ,he sale, To fi"d llUt if this has occurred, you may call (717) 240- 6390, 4. If the amount due from Ihe buyer is nol paid to Ihe Sheriff, you will remain the owner of Ihe property as if Ihe sale never happened. 5, You have a right to remain in Ihe property until the full amount due is paid to Ihe Sheriff and the Sheriff gives a deed to the buyer, At that time, the buyer may brinlllellal proceedings to evicl you. 6. You may be enli:led to a share oflhe money which was paid for your real eSlate, A schedule of distribution of the money bid for your real estate will he tiled by the Sheriff Oil a date specified by the sherilTnot later than thirty (30) days ti.lllowinlllhe sale, This schedule will stale who will be receivina 4ft,!lln'19006 ! f., " .),!., PROOF OF PUBLICATION 0[0' NOTICE IN CllMUERLAND LA W JOlJRNAL (Under Act NIO. 5li7. approved May 1(1. 1'12'1). p, L.17K4 STATE OF PENNSYLVANIA : ss. COUNTY OF CUMUERLAND : Roger M. Morgenthul, Esquire, Editor of the CumberlanJ l.aw Joul'l1al. of the County and Stale aforesailJ. being duly sWlOrn. a\xlOrding tlO law, llepo"es anJ MIYS that the Cumberland Law Journal. a legal periodical puhli,hed in the Borough of Carlisle in the County and State afOJ'esllid. was established January 2. 1952, and designated by the I",:al courts as the oflicial legal periodical for the publicalion of all legal notices. and ha" since January 2. 1'152. been regularly issued weekly in the said County, am] that the printed Illllice or publication attached hereto is exactly the same as was printed in the regular editions and issues of the said Cumberland LI!W Journal on Ihe following dates, vi'/.:___ ___.._,______._. JANUARY 24, 31. I'EBIWARY 7. 1'1'17 Aftiant further deposes that he is authorized to verify this statement by the Cumberland Law Journal. a legal periodical of general circulation. and that he is not interesled in the subject matter of the aforesaid notice lOr advcltisement. and that all allegatilOns in the foregoing statements us tn lime. place and character of publication are true, IUtAL I.TAft IALI: NO, 4 Wrlll'lo, 91;"2213 Civil PN(: BIUlk Nllllol\at ^~,"lt)c1uIJOIl VH, Rob<."rt ,J, Colal.l.ll and .Jean E. Colaiul Alty,: .JI'llrl'Y ('ohl'n EXHIBIT "A" ^J.l, THAT CERTAIN lot d land situate In Hallllxll'n TOWlll'lhlp, Cum" ht.'rland County, Pr'nnsylvanln. 1II0rt> particularly uoundt"d and cl('li('rll~d a~ follows, to wit: BEING ALL of Lot No, 4~. BI,,,,k 0, Pllln II, PhK Brook. whIch Plan Is f('corded in the Cumt)('rland Count.y Rtcord~r's O(ficr In Plan Book 20. Pnli(e89. IIAVINCI TIII;:HI;;q:'\i ,'rl'l'If'(\ 11 dWt"lllnll, bow'il' kl10wn ,llll! lI\lllI lwft'd ;I~ ,~:lH [~\t1IJlI'ni'l' \..;mt', lJNrll::H ^~r) :-;1 :U../I':("\', :\1';VE1{ nll';u,:SS. to tfllldlll!lll~. l'I'i'ltrll !low", l'aN'lIIt'lll", illld rllZlLl:-l III W;IY orn'l'ord, lH,:tN<i till' '\>1111(' IJI'I'lIlhl':-O whkh MAI{THA M/\Jl<;Ui\;..o, bv h,'r d"t'd dalt'd \01011'1'11 :l~'. I ~17'2 and rei md,'1! Marl'll :\0, 1\l'l'2 III IIII' otller' tit lh~' Ht'('orclror of U"I'di'! In <Incllnr ('11111 ht'rLuld {'OUllly, j't,'IlIl"lylvilllld In Drt'cl Book ";.j". V"llllllf' '2G, Pall,!' tor,:l. ,ll.rilll!t'd ,HId IllIlVI',VI'd ILlllo \>. '-i();l22 j[ _' /lc! ------ Rogel' M. Morgcnthal. Edillll' SWORN TO AND SUBSCRIBED before me Ihis -L,dayof FEBRUARY, 11)117 \, /tfl-I I' 1 (( t ,LliJ./si i " I ( /( 'if NOlary r"---NOiiJi'iALsl'/.l I, l<l'i' ,:,~ MIRHEVKA No., ~ll<. ,~"t~ 'l, CII/T',Mnand (;COjIC' I, L__I:~:roiUiOnEAPw"b<I>""1 , , ,,' ~ Proof of Publication of Notle. In The Patriot and The Ev.nlng N.ws an~.d!h~<t ~!n.!~lp!v~t~I!~!:.~!.~ ('o,","n".wealth 01 Penn'/lltonnia, } Co,.,.ty of nallllhin ,...: ..,................,........Jl~,c;;l:\it\:J..,~!9.n:~:,~............,......,......beinll' duly sworn according to law, deposes and says: ^~5t. C"ntrcllt!r That he Is the ....,..........,............of TUE PATRIOT - NEWS CO., a corporation orll'llnlzed and exlstlne under the law. of ~he Commonwelllth of Pennsylvania, with its principal ofllee and place of business at 812 tn 818 M.rket Street, in the City of Uarri,burg, COllnty of Dauphin, State of Pennsylvania" owner and publisher 01 THE PATRIOT and THE EVENING NEWS and the SUNDAY PATRIOT. NEWS newspapers 01 Ileneral circulation, printed and published at 812 te 818 Market Streot, in the City, County and State aforesaid: that nn; PATRIOT and THE EVENING NEWS and the SUNDAY PATRIOT - NEWS were established March 4th, 1854, and February 15th, 1917 and September 18th, 1049, respectively, and all have been continuously published ever since; That the printed notice or publication which is securely attached hereto Is exactly as printed and ~Ietro West 21st and 20th days published in their rel'Ulsr ,.editions and Issues which appeared on the ,....,..,..,..........,.,................................. .. ..':'.,L,~:'!.!: !:!~.~L.~ ,r:',~... .:-.~~,~,.. ~ ,~~.., .~: ~,IX.,. ~:. ~... :..~ t" ~,~~, ~ .Y.... ~?.'!.?..:..........",............."""",...,......".....,............ That neither he nor said Company is Interested In the subject matter of said printed notice or adver- tleine, and th.t .11 of the alleeatlons of this statement as to the time, place and character of publication are true; and That he has peraonal knowledge of the tacts aforesaid and Is duly authorized and empowered to verify thll .t.lement on behalf of The Patriot.News Co. aforesaid by virtue and pursuant to a resolu- tion unanimously passed and adopted severally by the stOCk!llders and board of directors of the said Company and .ubsequently duly re.:orded in the omce for the !rdin(J1f Deeda in and for said County of Dauphin In Mi"'.II.n.o.,, Book '.M". Volume II, P.~. :117, , Copy of Nolle. or Publication .................................0 ,. 0.:.:.. . ~~m~\..................,....,...., IIAlwllAlIrlrt4 Sworn to and subscribe~,.bffore m, t ",,<7.?t~J,....day of ~t:;.. I F:fi,R.J;',1l.k1IY A, N6/: ' ' '. I V) I'p (;l /' PNC .1InllNlI..IiaI.~II.lnm '1e'rtC:l\u~!.. ol.,~/~utirr.v;,>.. (,,~...;..,;,(......,:...., IIolllllJ.I..lIll Harti.burg, Oauphln ~';'mIY ota'1l Publtc ~, My com El<jlltesJuns6, '0911 ...,..,...... ~r~~Mj ~ ltm 1WuaI& Aa;;ril;c;g Costs In Hal, .,..Jl..J , Cumberland ' County. .nnlyl onlo, mo,. ~lOwtt: and dtlcrlbed ~~loINo. ~~kO. Plan In 'he C!,I=ond ~~ ll::J.'..0Ib In PIon Book 20, ~1lfON1ltCfed a dweIlIno Lamp Poet loI'rtfN ~ 01 42B - . - ..... .,- -..._,~,....... S A r. E #4 C.umbc.:c.L<lnd.. ,CQ!.lX\tY....II.ll.~h,:j, .U.~...R,f. ftc;;~.. c a r1~.[jJ,!i'. t.,.....!: A.,., ....J.7..~.~,~. ........, ,... '" "".......,..... To THE PATRIOT.NEWS CO,. Dr, For publishing the notice or publication attached hereto on the 162.75 above stated dates. .,......,..,..........,...... . 1.00 Probatir.g same ............1'(;':1..,'75.. Total ..........,.........,....,... Publish.r's Receipt for Adv.rtising Costs THE PATRJOT.NF.WR CO., puhlisher of THF. PATIlIOT "nd THF. EVENING NEWS and the SUNDAY PATRIOT.NEWS, new<pllpers 01 Ilene,'al circulation, hereby acknowledll'e receipt of the .foreaaid notice and puhlication costs and certifies thllt the same have been duly paid, TilE PATRIOT,NEWS CO. fly........, .... ,...,.,',.,""",.,.,.,.,.,...,...."..,..,.,..... ...~",' '14', . , TITLE REPORT THE PREMISES ENDORSED HEREON ARE SUBJECf TO THE FOLLOWING ITEMS, WHICH WILL BE EXCEPTED IN THE POLICY UNLESS SATISFACfORY EVIDENCE PERMITIINO THEIR REMOVAL IS PRODUCED. SHERIFF SALE NO. 4 Held Wednesday, June 4, 1997 Dille: June 6, 1997 TAXES: Receipts for all taxes for the years 1992 to 1996 inclusive, Taxes for the current year 1997, , f MORTGAGES: Listed Under Other Exceptions Beluw. JUDGMENTS: Listed Under Other Exceptions Below. INSTRUMENTS TO BE PRODUCED: Deed from Cumberland County Sheriff to dated , 1997. and recorded . 1997, in Cumberland County Deed Book , Page RECITAL: Being all of the property which D. Roger Meabun and Elizabeth J. Meabon. husb.md and wife, by their deed dateu June 28, 1977, and recorded July I, 1977. in the Office of the Recorder of Deeds in and for Cumberland County at Carlisle, Pennsylvania, in Deed Book "0". Volume 27, Page 843, granted and conveyed to Robert J, Colaizzi and Jean E, Colaizzi, husband and wife, OTHER EXCEPTIONS: I , The identity and legal competency of panies at the closing of this litle should be established to the satisfaction uf the closing attorney acting fur Ihis Company. 2, Rights or claims of panies in pussession, if any, other than the owner, 3, Unrecorded easements. discrepancies or connicts in boundary lines, shortage in area and encroachments which an accurate and complete survey would disclose. 4, Payment of State and local Real Estate Transfer Taxes, if required. 5. Public and privale rights in the roadbed of Lamp Post Lane, 6. Conditions shown on Plan No. II of Pine Brook recorded in Miscellaneous Record Book 20. Page 89, 7, Easement located along Ihe southern portion of Lot No, 2 as shown on Plan No, II of Pine Brook recorded in Cumberland County Plan Book 20, Page 89. 8, Building and use reslrictions applicable to Plan No. II of Pine Brook recorded in Cumberland County Miscellaneous Record Book 185. Page 5\7, 9. Rights granted to Bell Telephone Company of Pennsylvania by instrument recorded in Cumberland County Miscellaneous Record Book 456, Page 11OJ. 10, Real estale taxes returned delinquenlto the Cumberland County Tax Claim Bureau in the approximate amount of $1,536.'16. II, Satisfactory evidence to be produced that proper notice was given to lh<e holder of all liens and encumbrances intended 10 be divested by subject Sheriff Sale, 12, Satisfactory evidence to be produced that mandatory stay as a result of bankruptcy has been lifted 10 permit subject Sheriff Sale and that jurisdiction of Trustees and bankruptcy as recorded in Miscellaneous Record Book 546, Page 1103. have yielded jurisdiction for disposition of subject real estate. 13, Mortgage given by Robert J. Colaiui and Jean E, Colaizzi. husband and wife, tu The Valley Trllst Company of Palmyra, Pcnnsylv<lnia dated June 2!l, 1'177. and recorded July I. 1977, in Mortgage Book 624, Page 351, in Ihe amounlof $47,000.00. 14, Mortgage given by ColaiZli and Hager Panners, a Pennsylvania pannership, Hager- Grandon Insurance Services, Inc.. a Pennsylvania corporation. Dave M, Hager and Robert J, Colaizzi and Jean E. Colaizzi, to CCNB Bank, N,A, dated October 31, 1980, and recorded November I. 1980, in Mortgage 800k 921, Page 735, in the amount of $100.000.00, which mortgage covers six trncts of which Tract No, 6 is Lot No, 42 of 810ck "0" of Plan II of Pine 8rook. A relief from said mortgage of property at 5050 East Trindle Road is recorded in Miscellaneous Record 800k 490, Page 659, IS. Mortgage given by Robert J, Colaizzi and Jean E, Colaizzi to CCN8 8ank, N,A" dated November 5, 1980. and recorded November 7.1980, in Mortgage Book 922, Page 229, in the amount of $65,000,00, I Mongage given by Robert J, Colaizzi and .Jean E, Colaizzi to CCNB Bank, N,A,. dated April 6, 1989, and recorded May 7.1989, in Mortgage Book 975, Page 1064. in the amount of $100,000,00, 17, Open-end mortgage and security agreement given by Robert J, Colaizzi and Je.m E, Colaizzi to CCNB 8ank, N.A" dated July I, 1992, and recorded July 30, 1992, in Mortgage Book 1080, Page 473, in which no amount is given, 16. 18. Judgment enlered in favor of CCNB Bank, N,A" against Colaizzi and Hager Partners. tJdlbla Giganle Reslaurant, they being David M, Hager, Robert J, Colaizzi, Jean E. Colaizzi, Consolidated Insurance Group, Inc" Hager-Grandon Insurance Services, Inc, enlered on April 9, 1992, to No. 1298 Civil 1992 in the amount of $118,756.89, 19. Judgmenl entered in favor of CCNB Bank, N.A., against Colaizzi and Hager Partners, tJdlb/a Gigante Restaurant, David M, Hager, Robert J. Colaizzi, Jean E, Colaizzi, Consolidated Insurance Group, Inc" Hagar-Grandon Insurance Services, Inc" entered on April 9, 1992,10 No. 1299 Civil 1992 in Ihe amount of $80,141.46, 20, Judgment in favor of ceNB Bank. N,A,. against Colaizzi and Hager Partners. IId/b/a Gigante Reslaurant. David M. Hager, Robert J. Colaizzi, Hagar-Grandon Insurance Services, Inc,. entered on April 9, 1992, to No. 1300 Civil 1992 in the amount of $1,531,826,61. . 21. Judgmenl enlered in favor of Gcrtrud~ Kindler against Colaizzi and Hager Partners, Hager-Grandon Insurance Services, Inc,. David M, Hager, Robert J, Colaizzi. and Jean E. Colaizzi pursuant 10 Complaint filed January 21,1993, to No. 209 Civil 1993, with judgmem enlered in the amounl of $697,612,25, 22, Complaint in Mortgage Foreclosure filed April 25. 1996, to No, 1996-02213 in favor of PNC Bank. National Associalion, against Robert C, Colaizzi and Jean E, Colaizzi. with judgment enlered in the amount of $1,544,261.29. Writ of Execution issued April 29, 1996, 23, Judgment entered in favor of James C. Bartole, Inc" against David M. Hager and Roben J. Colaizzi filed on July 9, 1996,10 No, 1996-03783 in Ihe amount of $22.265,20. 24. Real estale taxes accruing on and after July I, 1997, nOI yet due and payable, _ '-o.i--,-- .!1,' Robert G, Frey. Agenl Nole: Thi. Tille Repon ,hall nol be id >r bindinll unlil counlersigned by an uUlhoriled ,ignalOry.