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HomeMy WebLinkAbout02-5051COMMERCE BANK/HARRISBURG N.A., Plaintiff DANIEL A. HOFFMAN and GAYLE A. HOFFMAN, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO.: 0~. ~-o~-! ~ 7-"0-.. CIVIL ACTION - LAW CONFESSION OF JUDGMENT NOTICE To: Daniel A. Hoffinan and Gayle A. Hoffman, Defendants You are hereby notified that on October !7 ,2002, judgment by confession was entered against you in the sum of $81,029.73 in the above-cap~on~ /~ Dated: October/74 2002 /-Piothono YOU SHOULD TA~ THIS P~ER TO YOUR LA~ER AT ONCE. IF YOU DO NOT HAVE A LAiR OR CANNOT AFFO~ ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO ~ND OUT WHE~ YOU C~ GET LEG~ HELP. CUMBERLAND COUNTY BAR ASSOCIATION 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 I hereby certify that the following is the address of the Defendants stated in the Certificate of Residence. Daniel A. Hoffman Gayle A. Hoffman 515 8th Street New Cumberland, PA 17070 A. Daniel A. Hoffman and Gayle A. Hoffman Usted esta siendo notificando que el __ de October del 2002, se anoto en contra suya un fallo por confesion en la smna de $81,029.73 en el caso mencionado en el epigrafe. Fecha: September ,2002 Protonotado USTED DEBE LLEVAR IMMEDIATAMENTE ESTE DOCUMENTO A SU ABOGADO, SI USTED NO TIENE UN ABOGADO O NO PUEDE PAGHARLE A UNO, LLAME O VAYA A LA SIGUIENTE OFICINA PARA AVERIGUAR DONDE PUEDE ENCONTRAR ASISTENCIA LEGAL. CUMBERLAND COUNTY BAR ASSOCIATION 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 Certifico que la siguiente direccion es la del defendido/a segun indicade en el certificado de residencia: Daniel A. Hoffinan Gayle A. Hoffman 515 8th Street New Cumberland, PA 17070 COMMERCE BANK/HARRISBURG N.A., Plaintiff Vo DANIEL A. HOFFMAN and GAYLE A. HOFFMAN, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : .. :NO.: O,~. _. _. : CIVIL ACTION - LAW : CONFESSION OF JUDGMENT NOTICE OF DEFENDANT'S RIGHTS To~ Daniel A. Hoffman 515 8th Street New Cumberland, PA 17070 Gayle A. Hoffman 515 8th Street New Cumberland, PA 17070 A judgrnent in the amount of $81,029.73 has been entered against you and in favor of the Plaintiff without any prior notice or hearing based on a confession of judgment contained in a written agreement or other paper allegedly signed by you. The sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVE DON YOU OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER AND CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICER SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 Dated: 10 11"l [0~x SERRATELLI, SCHIFFMAN, BROWN & CALHOON I.D. an, Esquire Suite 201, 2080 Linglestown Road Harrisburg, PA 17110 (717) 540-9170 COMMERCE BANK/HARRISBURG N.A., Plaintiff DANIEL A. HOFFMAN and GAYLE A. HOFFMAN, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA ._ : :NO.: : CIVIL ACTION - LAW : CONFESSION OF JUDGMENT COMPLAINT 1. PlaintiffCommerce Bank/Harrisburg, N.A. is a National Bank, with an office at 100 Senate Avenue, Camp Hill, Cumberland County, Pennsylvania, 17011. 2. Defendants Daniel A. Hoffman and Gayle A. Hoffman are adult individuals whose address is 515 8th Street, New Cumberland, Cumberland County, Pennsylvania, 17070. 3. On or about June 10, 1998, Dynamic Appraisals, Inc., for good and valuable consideration, executed and delivered a Note ("Note") to Plaintiff. A true and correct copy of said Note is attached hereto, made a part hereof and marked "Exhibit A'. 4. The Note referred to in Paragraph 3 above has not been assigned by Plaintiff to any person or organization. 5. Defendant Daniel A. Hoffman, on or about June 10, 1998, for good and valuable consideration, executed and delivered a Commercial Guaranty to Plaintiff guaranteeing the obligations of Dynamic Appraisals, Inc. under the "Note". A true and correct copy of said Commercial Guaranty is attached hereto, made a part hereof and marked "Exhibit B". 6. Defendant Gayle A. Hoffman, on or about June 10, 1998, for good and valuable consideration, executed and delivered a Commercial Guaranty to Plaintiff guaranteeing the obligations of Dynamic Appraisals, Inc. under the "Note". A true and correct copy of said Commemial Guaranty is attached hereto, made a part hereof and marked "Exhibit C". 7. Pursuant to the terms of the Note and the Guaranty, Dynamic Appraisals, Inc. is currently in default in its obligation to the Plaintiff and thus the Defendants Daniel A. Hoffman and Gayle A. Hoffrnan am in default to the Plaintiff for the entire amount owed under the Note and the Guarantees. 8. The Guaranty provides that Plaintiff may confess judgment against the Defendants for the amount of the obligation under the Note, plus ten pement (10%) added for collection fees and court costs. The principal amount due under the Note is $73,164.11. Ten percent (10%) of said stun is $7,316.41. 9. Plaintiff has been advised and therefore avers that Defendants executed the Guarantees referred to in Paragraphs 5 and 6 for business purposes. 10. The Confession of Judgment is not being filed against a natural person regarding a consumer credit transaction. WHEREFORE, Plaintiff demands judgment against Defendants in the amount of $73,164.11 in principal, $549.21 in interest, and $7,316.41 in attorney's fees and costs, plus $13.72 per diem until paid. Dated: [0 [Iq IO~.' Respectfully submitted, SERRATELLI, SCHIFFMAN, BROWN & CALHOON, PC ~v~qno.J' S548 ~l~a~~/Esquire ' i~;Sme ,~080~ng~lestown Road Harrisburg, PA 17110 (717) 540-9170 Attorneys for Plaintiff -3- Exhibit A PROMISSORY NOTE / References in Ihs shaded area are Ior Lender's use only and do n;~ 'llmit'th'e appli;;~ility n[/hi; documenl Io any parliculer 10;n o; it;m -- Borrower: Dynamic Appralsals, lnc, (TIN: 25-1715857) 4705 E, Trindte Road MechanJcsburg, PA 17055 Principal Amount: $50,000,00 Initial Rate: 10.000% Date of Note: June 10, 1998 PROMISE TO PAY, Dynamic App,'sisals, Inc. (*'Sorrower") promises to pay to Commerce Bank/HarSsburg~ National Asaociallon ('*Lender"), or order In lawful money of the United Sta es o Ama ca, he p nc pa amount gl Fifty Thousand & OO/100 Doliars {$50 O00 00) or so much as may be outstanding, Iogelher wllh interest On Ihs unpaid oulslandlng principal balance gl each advance. Inleresl S~lall be calculated ~rom the date of each advance unlli repayment ol each advance. PAYMENT. Borrower will pay this loan on demand, or If no demand is made, In one payment et ali outstanding principal plus all accrued unpaid Inlerest on June 10, 1999. In addition, Borrower will pay regular monlhly payments gl accrued unpaid interest beginning July 10, 1998, and all SUbsequent interest payments are due on Ihs same day of each monlh after that. The annual interest rate for Ibis Note is compuled on a 365/360 basis; lhal is, by apply{ng the ralio of Ihs annual inlerest rate over a year of 360 days mL)lliplied by the outManding pr nc pa ba ance, mu]tiglied by the actual number of days the principal balance is outstanding. Sorrower will pay Lender al Lender's address shown above or at surd other place as Lender may designers in writing. Unless oiherwise agreed or required by app{icable law paymenls wi{l be app ed $ o acc ued unpaid inierest, then 1o plincJpal, and any remaining amounl lo any unpaid collection coals and Isle charges. VARIABLE INTEREST RATE. The }nleresl rate on tMs Nole is subject 1o change from lime lo time based on changes in an index which is Ihs "COMMERCE SANS/HARRISBURG, NATION^L ASSOCIATION RETAIL PRIME RATE" (the "index"). The Commerce 0anklHarrisbulg, Naltonal Association Retail Prime Rate, hereinafle~ referred ~o as "Commerce Bank Prime" aha be ha a e wh ch Lender establishes as ils Piime Rate, whether or n01 published. The eslablishment and publication et Commerce Prime Rate by Lender shall not in any way preclude od Iimil Lender from lending Io 06-10-1998 PROMISSORY NOTE P~ge 2 Loan No 2771695 (Continued) CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR BORROWER A~TER JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS AUTHORITY SHALL NOT, IN ENFORCEMENT OF ANY SUCH JUDGMENT, BXECUTE, LEVY OR OTHERWISE PROCEED AGAINST ANY SUCH RESIDENTIAL REAL PROPERTY; PROVIDED, HOWEVER, THAT THE LiEN OF SUCH JUCGMENT SHALL EXTEND TO SUCH RESIDENTIAL REAL PROPERTY AND THAT THE HOLDER THEREOF SHALL BE PERMITTED TO EXECUTE, LEVY OR PROCEED AGAINST SUCH RESIDENTIAL REAL PROPERTY FROM AND AFTER THE ENTRY OF A JUDGMENT AS CONTEMPLATED BY SECTION 407 OF SUCH LOAN ~NTEREST AND PROTECTION LAW AND RULES 2981 TO 2986 OF THE PENNSYLVANIA RULES OF CIVIL PROCEDURE, OR SUCCESSOR OR SIMILAR STATUTES ENTER JUDGMENT. COPY OF THE NOTE. THIS NOTE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: Daniel A, HoRman, P~'esldent ATTEST: S~re~r'J or ( Corporate Seal ) FOR USE WITH PROMIE CRY NOTE CONTAINING CONFESSIOi~ OF JUDGMENT CLAUSE EXPLANATION OF RIGHTS-CONFESSION OF JUDGMENT On the date hereof, Dynamic Appraisals, Inc. with offices located at 4705 E. Tdndle Road, Mechanicsburg, Pennsylvania (the "Sorrower"), as Maker executed a Promissory Note Payable to the order of Commerce Bank/Harrisburg, N. A., its successors and assigns ("Commerce") in the original principal amount of $50,000.00 together with interest thereon and all other charges as set forth therein or in any other Loan Document as defined therein (the "Loan Document"). Borrower desires to induce Commerce to close the loan to Borrower. Borrower clearly and specifically understands that by signing the Promissory Note (tile "Note"), which contains a Confession of Judgment Clause: and in Commerce's favor, which will give Commerce a lien upon any real estate which the Borrower may own; (b) Borrower gives up the right to any notice or opportunity to be heard prior to the entry of such Judgment on the records of tbe court; (c) Borrower agrees that Commerce can enter the Judgment after default as defined in the Note or in any other Loan Docum~n_t executed by Borrower simultaneously herewith; rd) Borrower subjects Borrower's property, real, personal and mixed, to execution and sheriff's sale, pursuant to the Judgment, prior to proof of non- payment or other default on Borrower's part; Borrower will be unable to challenge the Judgment, should Commerce enter it except by proceeding to seek relief from or to open or to strike the Judgment, and such a proceeding will result in attorneys' fees and costs which the Borrower will have to pay; {f) Borrower gives up the right to require Commerce to present a sworn document settin'g forth in non~conclusory terms the basis for its claim before' obtaining a writ of garnishment or a writ of attachment or a writ of execution; {g) Borrower agrees that the writ of garnishment or writ of attachment or writ of execution may be issued without notice and without the necessity of a review and approval by an official vested with requisite discretion; and (h) Borrower gives up the right or opportunity for a prompt hearing after seizure of or execution or levy on the Sorrower's property, at which hearing Commerce must demonstrate at least the probable validity of its claim and that Borrower voluntarily, intelligently and knowingly gave up Borrower's constitutional right to notice and hearing prior to entry of tbe Judgment. 2. Borrower knows and understands that it is this instrument and the confession of judgment clause in the Note which gives Commerce the rights and benefits enumerated in subparagraphs {a) through (h) of paragraph 1 above. IF SORROWER DOES NOT SIGN THIS INSTRUMENT AND THE NOTE WHICH CONTAINS THE CONFESSION OF JUDGMENT CLAUSE, BORROWER UNDERSTANDS THAT SORROWER WOULD HAVE THE FOLLOWING: (a) the right to have notice and an opportunity to be heard prior to entry of the Judgment; (b) tbe right to have the burden of proving default rest upon Commerce before Borrower's property can be exposed to levy, attachment, garnishment or execution; (c) the right to avoid the additional expense of attorneys' fee and costs incident to seeking relief from or opening and striking off a judgment; (d) the right to require Commerce to present a sworn document setting forth in non- conclusory terms the basis of its claim before Commerce obtains a writ of garnishment or a writ of attachment or a writ of execution; (e) the right to condition the issuance of a writ of garnishment or a writ of attachment or a writ of execution on notice and review and approval by an official vested with requisite jurisdiction; (f) the opportunity for or right to a prompt bearing after seizure of or levy or execution on Borrower's property, at which hearing Commerce must demonstrate the probable validity of its claim and that Borrower voluntarily, intelligently and knowingly gave up Borrower's constitutional right to notice and hearing prior to entry of Judgment. 3. Fully, completely and knowingly understanding these rights which Borrower has prior 1:o s~gning the Note and this instrument and clearly aware that these rights will be given up, waived, relinquished and abandoned if Borrower signs the Note and this instrument, Borrower nevertheless freely and voluntarily chooses to sign the Note and this instrument, Borrower's intentions being to give up, waive, relinquish and abandon its known rights (as described in paragraph 2 above), and subject itself to the circumstances described Jn paragraph 1 above. PA~E 2 4. Borrower acknowledges that (a) the Note and this instrument have been executed in a commercial transaction for business purposes; (b) at all times material hereto Borrower was represented by counsel in connection with the execution of the Note and every other Loan Document, and in particular the Note and this instrument; and (c) Borrower reviewed the Note and this instrument with Borrower's attorney before signing them. 5. Whenever the context of this instrument requires, a~l terms used in the singular will be construed in the plural and vice versa, and each gender wilt include each other gender. Dated this lO'hday of June 1998. BORROWER HAS READ THIS ENTIRE FORM. BORROWER FULLY UNDERSTANDS ITS CONTENTS AND INTENDS TO BE LEGALLY BOUND HEREBY. BORROWER: Dynamic Appraisals, Inc. NAME: Daniel A. Hoffman TITLE: President Exhibit B COMMERCIAL GUARANTY Guarantor: Daniel A. Hoffman 515 8Ih Slreel New Cumberland, PA 17070 AMOUNT OF GUARANTY. This is a guarsnty of payment of 100.000% of the Note, including wllhout llmllalio~ Ihe principal Note amount 06-10-1998 Loan No 2771695 COMMERCIAL GUARANTY Page 2 (Continued) If now or hereafter (a) Borrower sheJl be or become insolvent, and (b) the Indebtedness shall no~ at atl limes unJil paid be fully secured by collateral pledged by Borrower, Guaran[or hereby f(3revei waives and relinQ~Jishes ~n laver et Lender and Borrower, end their respeclive successors, any claim or SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees thai the In(Jebledness of E~orrower to Lender, whelher nov, 06-10-1998 COMMERCIAL GUARANTY 'Page 3 Loan No 2771695 (Continued) CONFESSION OF JUDGMENT. GUARANTOR HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY A3~-ORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TiME FOR GUARANTOR AFTER A DEFAULT UNDER THIS GUARANTY, AND WITH OR WITHOUT COMPLAINT FILED, AS OF ANY TERM, CONFESS OR ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY, ALL ACCRUED INTEREST, LATE CHARGES, AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURtNG THE INDEBTEDNESS TOGETHER WITH INTEREST ON SUCH AMOUNTS, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS 15500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE ~MMEDIATELY; AND FOR SO DOING, THIS GUARANTY OR A COPY OF THIS GUARANTY VERIFIED BY AFF!DAVIT SHALL BE SUFFICIENT WARRANT, THE AUTUORIT~ GRANTED IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOR SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS GUARANTY. GUARANTOR HEREBY WAIVES ANY RIGHT GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING iN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT, EXCEPT ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO EXECUTION OF THE JUDGMENT, AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED TH~S CONFESSION OF JUDGMENT PROVISION TO GUARANTOR'S A~FENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL THE LIEN ARISING FROM ANY JUDGMENT CONFESSED OR ENTERED PURSUANT TO THE FOREGOING AUTHORITY SHALL NOT EXTEND TO ANY OF GUARANTOR'S RESIDENTIAL REAL PROPERTY AS THAT TERM IS DEFINEQ IN THE PENNSYLVANIA ACT OF JANUARY 30, 1974 (PA. LAWS 13, NO. E), REFERRED TO AS THE LOAN iNTEREST AND PROTECTION LAW, AS AMENDED, AND TNE HOLDER OF ANY JUDGMENT CONFESSED OR ENTERED PURSUANT TO THE FORGOING AUTHORITY SHALL NOT, IN ENFORCEMENT OF ANY SUCH JUDGMENT, EXECUTE, LEVY OR OTHERWISE PROCEED AGAINST ANY SUCH RESIDENTIAL REAL PROPERTY; PROVIDED, HOWEVER, THAT THE L~EN OF SUCH JUDGMENT SHALL EXTEND TO SUCH RESIDENTIAL REAL PROPERTY AND THAT THE HOLDER THEREOF SHALL BE PERMITTED TO EXECUTE, LEVY OR PROCEED AGAINST SUCH RESIDENTIAL REAL PROPERTY FROM AND AFTER THE ENTRY OF A JUDGMENT AS CONTEMPLATED BY SECTION 407 OF SUCH LOAN INTEREST AND PROTECTION LAW AND RULES 2981 TO 2986 OF THE PENNSYLVANIA RULES OF CIVIL PROCEDURE, OR SUCCESSOR OR SIMILAR STATUTES AND RULES. NO LIMITATION OF LIEN OR ANY EXECUTION, LEVY OR OTHER ENFORCEMENT CONTAINED IN THE IMMEDIATELY PRECEDING SENTENCE SHALL APPLY WITH RESPECT TO ANY JUDGMENT OBTAINED OTHER THAN BY THE FOREGOING AUTHORITY TO CONFESS OR ENTER JUDGMENT, EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS. IN ADDITION, EACH GUARANTOR UNDERBTANDB THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR'S EXECUTION AND DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION TITLED "DURATION OF GUARANTY." NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE, THIS GUARANTY IS DATED JUNE 10~ 1998. THIS GUARANTY HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. Daniel A, Hoffman Slgned./a~)~vle.ged a~ld dellv~d In ,h~) presence o,: X Witness FOR USE WITH GUA ,NTY CONTAINING CONFESSION OF .JDGMENT CLAUSE EXPLANATION OF RIGHTS-CONFESSION OF JUDGMENT On the date hereof, I, Daniel A. Hoffman residing at 515 8TM Street, New Cumberland, Pennsylvania (the "Guarantor") as Guarantor executed a Guaranty in favor of Commerce Bank/Harrisburg, N.A., its successors and assigns ("Commerce") guaranteeing the payment and performance of the obligations a defined therein. The obligations include loan proceeds issued or to be issued by Commerce to or for the benefit of Dynamic Appraisals, Inc., 4705 E. Trindle Road, Mechanicsburq, Pennsylvania, (the "Borrower"). Guarantor is the President of the Borrower. Guarantor desires to induce commerce to close the loan to Borrower. Guarantor understands clearly and specifically that by signing the guaranty, which contains a Confession of Judgment Clause: {a) Guarantor authorizes Commerce to enter a Judgment against Guarantor and in Commerce's favor; which will give Commerce a lien upon any real estate which the Guarantor may own; (b) Guarantor gives up the right to any notice or opportunity to be heard prior to the entry of such Judgment on the records of the court; (c) Guarantor agrees that Commerce can enter the Judgment after default as defined in the Guaranty or in any other Loan Document as defined therein Jthe "Loan Document"~ executed by borrower simultaneously herewith; (d) Guarantor subjects Guarantor's property, real, personal and mixed, to execution and sheriff's sale, pursuant to tile Judgment, prior to proof of non payment or other default on Guarantor's part; (e) Guarantor will be unable to challenge the Judgment, should Commerce enter it except by proceeding to seek relief from or to open or to strike the Judgment, and such a proceeding will result in attorneys' fees and costs which the Guarantor will have to pay; (f) Guaranto~ gives up the right to require Commerce to present a sworn document setting forth in non-conclusory terms the basis for its claim before obtaining a writ of garnishment or a writ of attachment or a writ of execution; (g) Guarantor agrees that the writ of garnishment o~ writ of attachment or writ of execution may be issued without notice and without the necessity of a review and approval by an official vested with requisite discretion; and (h) Guarantor gives up the right or opportunity for a prompt hearing after seizure of or execution or levy on the Guarantor's property, at which hearing Commerce must demonstrate at least the probable validity of its claim and that Guarantor voluntarily, intelligently and knowingly gave up Guarantor's constitutional right to notice and hearing prior to entry of the Judgment. 2. Guarantor knows and understands that it is this instrument and the confession of judgment clause in the Guaranty which gives Commerce the rights and benefits enumerated in subparagraphs (a) and through (h) of paragraph 1 above. IF GUARANTOR DOES NOT SIGN THIS INSTRU~/IENT AND THE GUARANTY WHICH CONTAINS THE CONFESSION OF JUDGMENT CLAUSE, GUARANTOR UNDERSTANDS THAT GUARANTOR WOULD HAVE THE FOLLOWING: la) the right to have notice and an opportunity to be heard prior to entry of the Judgment; (b) the right to have the burden of proving default rest upon Commerce before Guarantor's property can be exposed to levy, attachment, garnishment or execution; (c) the right to avoid the additional expense of attorneys' fees and costs incident to seeking relief from or opening and striking off a judgment; (d) the right to require Commerce to present a sworn document setting forth in con-conclusory terms the basis of its claim before Commerce obtains a writ of garnishment or a writ of attachment or a writ of execution; (e) the right to condition the issuance of a writ of garnishment or a writ of attachment or a writ of execution on notice and review and approval by an official vested with requisite jurisdiction; (f) the opportunity for or right to a prompt hearing after seizure of or levy or execution of Guarantor's property, at which hearing Commerce i;qust demonstrate the probabte validity of its claim and that Guarantor voluntarily, intelligently and knowingly gave up Borrower's constitutional right to notice and hearing prior to entry of Judgment. 3. Fully, completely and knowingly understanding these rights which Guarantor has prior to signing the Guaranty and this instrument and clearly aware that these rights will be given up, waived, relinquished and abandoned if Guarantor signs the guaranty and this instrument, Guarantor nevertbeless freely and voluntarily chooses to sign the Guaranty and this instrument, Guarantor's intentions being to give PAGE 2 up waive, relinquish and abandon its known rights as described in paragraph 2 above), and subject himself or herself to the circumstances described in paragraph 1 above. 4. Guarantor acknowledges that (a) the Guaranty and this instrument have been executed in a commercial transaction for business purposes; (b) at alt times material hereto Guarantor was represented by counsel in connection with the execution of the Guaranty and every other Loan Document, and in particular the Guaranty and this instrument; and (c) Guarantor reviewed the Guaranty and this instrument with Guarantor's attorney before signing them. 5. Whenever the context of this instrument requires, all terms used in the singular will be construed in the plurat and vice versa, and each gender will include each other gender. Dated this 10~h day of June 1998. GUARANTOR HAS READ THIS ENTIRE FORM. GUARANTOR FULLY UNDERSTANDS ITS CONTENTS AND INTENDS TO BE LEGALLY BOUND HEREBY. GUARANTOR: Daniel A. Hoffman Exhibit C COMMERCIAL GUARANTY Borrower: Dynamic Appraisals, inc. (TIN: 25-1715857) 4705 E. Trlndle Road Mechanlcsburg, PA 17055 Guarantor: Gayla A. Hoffman 515 8th Street New Cumbertand~PA 17070 P.O. I~ox 8590 100 Senate Avenue Camp Hill~ PA 17001-8599 AMOUNT OF GUARANTY. This Is a guaranty of payment of 100.000% Of the Note, rncludlng wlthoul gmltabon the principal Nolo amount or FIBy Thousand & 00/100 Dollars ($50,000.00). GUARANTY. For gooc[ and valuable consideration, Gayla A. Hoffmen ("Guaranlor*') absolulely and unconditionally guaranlees and promises pay Io Commerce Bank/Harrisburg, National Association ("Lender") or tls order, on demand, In legal fender of lbo Unlled States of Amerlca~ 100.000% o! the indebtedness (as that 1erin ia defined below) et Dynamic Appraisals, Inc. ("Borrower") to Lender on the farms and condllions set forth Pl this Guaranly. Guarantor agrees that Lender, I~ its sole discretion, may delermlne which portion of Borrower's Indebtedness Lender is covered by Guarantor's percentage guaranty. DEFINITIONS. The folrowlng words shall have the following meanings when used in this Guaranty: Borrower. The word "Borrower" means Dynamic Appraisals, Inc.. Guarantor. The wold "Guarantor" means Gayla A, Hotfman Guaranty. The word "G~Jaranty" means this Guaranty made by Guarantor for Ihe benefit of Lender deled June 10, 1998. [ndebledness. The word "Indebtedness" means the Nole, includio0 fa) all principal, (bi all interest, (c) all late charges, (d) ali loan lees end loan charges, and (e) all collection COalS and expenses relating to the Note or Io any collateral lot 1he Note. Collection costs and expenses include wdhouI limitation a~l of Lender's a o heys' ees and Lender's legal expenses, who her or not suit is insfi/uled, and atlorneys' fees and legal expenses for bankroptcy proceedings (including effods to modify or vacale any automatic slay or injunction), appeals, and any anticipate0 post-judgment collection services. Lender. The word "Lender" means Commerce Bank/Harrisburg, National As$ociallon, its successors and Note. The word "Note" means the promissory hole or credit agreemenl dated June 10, t998, In the original principal amount of $50,000.00 hem 06-10-1998 COMMERCIAL GUARANTY Page 2 Loan No 2771695 (Continued) matler whal$oever. 06-10-1998, COMMERCIAL GUARANTY 'Page 3 Loan No 2771695 (Continued) CONFESSION OF JUDGMENT. GUARANTOR HEREBY ~RREVOCAELY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TiME FOR GUARANTOR AFTER A DEFAULT UNDER THiS GUARAN3~/, AND WITH OR WITHOUT COMPLAINT FILED, AS OF ANY TERM, CONFESS OR ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY, ALL ACCRUED INTEREST, LATE CHARGES, AND ANY AN[~ ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDEBTEDNESS TOGETHER WITH iNTEREST ON SUCH AMOUNTS, TOGETHER WITH COSTS OF SUIT, AND AN A]-rORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, TH~S GUARANTY OR A COPY OF THIS GUARANi/ VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHOR}TY GRANTED IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOR SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER TH~S GUARANTY. GUARANTOR HEREBY WAIVES ANY RIGHT GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT, EXCEPT ANY NOTICE AND/OR REARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO EXECUTION OF THE JUDGMENT, AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO GUARANTOR'S ATI'ENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL THE LIEN ARISING FROM ANY JUDGMENT CONFESSED OR ENTERED PURSUANT TO THE FOREGOING AUTHORITY SHALL NOF EXTEND ¥O ANY OF GUARANTOR'S RESIDENTIAL REAL PROPERTY AS THAT TERM iS DEFINED IN THE PENNSYLVANIA ACT OF JANUARY 30, 1974 (PA. LAWS 13, NO S), REFERRED TO AS THE LOAN INTEREST AND PROTECTION LAW, AS AMENDED, AND THE HOLDER OF ANY JUDGMENT CONFESSED OR ENTERED PURSUANT TO THE FORGOING AUTHORITY SHALL NOT, tN ENFORCEMENT OF ANY SUCH JUDGMENT, EXECUTE, LEVY OR OTHERWISE PROCEED AGAINST ANY SUCH RESIDENTIAL REAL PROPERTY; PROVIDED, HOWEVER, TtlAT THE LIEN OF SUCH JUDGMENT SHALL EXTEND TO SUCH RESIDENTIAL REAL PROPERT~¢ AND THAT THE HOLDER THEREOF SHALL BE PERMITFED TO EXECUTE, LEVY OR PROCEED AGAINST SUCH RESIDENTIAL REAL PROPERTY FROM AND AFTER THE ENTRY OF A JUDGMENT AS CONTEMPLATED BY SECTION 407 OF SUCH LOAN INTEREST AND PROTECTION LAW AND RULES 2981 TO 2986 OF THE PENNSYLVANIA RULES OF CIVIL PROCEDUGE, OR SUCCESSOR OR SIMILAR STATUTES AND RULES. NO LIMITATION OF LIEN OR ANY EXECUTION, LEVY OR OTHER ENFORCEMENT CONTAINED IN THE IMMEDIATELY PRECEDING SENTENCE SHALL APPLY WITH RESPECT 'ro ANY JUDGMENT OBTAINED OTHER THAN BY THE FOREGOING AUTHOGITY TO CONFESS OR ENTER JUDGMENT. EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THiS GUARANTY AND AGREES TO ITS TERMS, IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THiS GUARANTY IS EFFECTIVE UPON GUARANTDR'S EXECUTION AND DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION TITLED '*DURATION OF GUARANTY," NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY IS DATED JUNE 10~ 1998. THIS GUARANTY HAS eEEN SIGNED AND SEALED BY THE UNDERSIGNED, G~yle ~ HoNman '~U ' FOR USE WITH GUA .NTY CONTAINING CONFESSION OF ~JDGMENT CLAUSE EXPLANATION OF RIGHTS-CONFESSION OF JUDGMENT 1. On the date hereof, I, Gayla A. Hoffman residing at 515 8th Street, New Cumberland, Pennsylvania (the "Guarantor") as Guarantor executed a Guaranty in favor of Commerce Bank/Harrisburg, N.A., its successors and assigns ("Commerce") guaranteeing the payment and performance of the obligations a defined therein. The obligations include loan proceeds issued or to be issued by Commerce to or for the benefit of Dynamic Appraisals, Inc., 4705 E. Tdndle Road, Mechanicsburg, Pennsylvania, (the "Borrower"). Guarantor is the spouse of the President of the Borrower. Guarantor desires to induce commerce to close the loan to Borrower. Guarantor understands clearly and specifically that by signing the guaranty, which contains a Confession of Judgment Clause: (al Guarantor authorizes Commerce to enter a Judgment against Guarantor and in Commerce's favor; which will give Commerce a lien upon any real estate which the Guarantor may own; (b) Guarantor gives up the right to any notice or opportunity to be heard prior to the entry of such Judgment on the records of the court; lc} Guarantor agrees that Commerce can enter the Judgment after default as defined in the Guaranty or in any other Loan Document as defined therein (the "Loan Document") executed by borrower simultaneousIy herewith; (d) Guarantor subjects Guarantor's property, real, personal and mixed, to execution and sheriff's sale, pursuant to the Judgment, prior to proof of non- payment or other default on Guarantor's part; (el Guarantor will be unable to challenge the dudgrnent, should Commerce enter it except by proceeding to seek relief from or to open or to strike the Judgment, and such a proceeding will result in attorneys' fees and costs which the Guarantor will have to pay; (fl Guaranto~ gives up the right to require Commerce to present a sworn document setting forth in non conclusory terms the basis for its claim before obtaining a writ of garnishment or a writ of attachment or a writ of execution; (gl Guarantor agrees that the writ of garnishment or writ of attachment or writ of execution may be issued without notice and without the necessity of a review and approval by an official vested with requisite discretion; and (h) Guarantor gives up the right or opportunity for a prompt hearing after seizure of or execution or levy on the Guarantor's property, at which hearing Commerce must demonstrate at least the probable validity of its claim and that Guarantor voluntarily, intelligently and knowingly gave up Guarantor's constitutional right to notice and hearing prior to entry of the Judgment. 2. Guarantor knows and understands that it is this instrument and the confession of judgment clause in the Guaranty which gives Commerce the rights and benefits enumerated in subparagraphs la) and through (h) of paragraph 1 above. IF GUARANTOR DOES NOT SIGN TFllS INSTRUMENT AND THE GUARANTY WHICH CONTAINS THE CONFESSION OF JUDGMENT CLAUSE, GUARANTOR UNDERSTANDS THAT GUARANTOR WOULD HAVE THE FOLLOWING: (al the right to have notice and an opportunity to be heard prior to entry of the Judgment; {b) the right to have the burden of proving default rest upon Commerce before Guarantor's property can be exposed to levy, attachment, garnishment or execution; (c) the right to avoid the additional expenso of attorneys' fees and costs incident to seeking relief from or opening and striking off a judgment; (d) the right to require Commerce to present a sworn document setting forth in con-conclusory terms the basis of its claim before Commerce obtains a writ of garnishment or a writ of attachment or a writ of execution; (el the right to condition the issuance of a writ of garnishment or a writ of attachment or a writ of execution on notice and review and approval hy an official vested with requisite jurisdiction; (fl the opportunity for or right to a prompt hearing after seizure of or levy or execution of Guarantor's property, at which hearing Commerce must demonstrate the probable validity of its claim and that Guarantor voluntarily, intelligently and knowingly gave up Borrower's constitutional right to notice and hearing prior to entry of Judgment. 3. Fully, completely and knowingly understanding these rights which Guarantor has prior to signing the Guaranty and this instrument and clearly aware that these rights will be given up, waived, relinquished and abandoned if Guarantor signs the guaranty and this instrumem, Guarantor nevertheless freely and voluntarily chooses to sign tile Guaranty and this instrument, Guarantor's intentions being to give PAGE 2 up waive, relinquish end abandon its known rights as described in paragrapb 2 above), and subject hh~self or herself to the circumstances described in paragraph 1 above. 4. Guarantor acknowledges that (a) the Guaranty and this instrument bare been executed in a commercial transaction for business purposes; (b) at all times material hereto Guarantor was represented by counsel in connection with the execution of the Guaranty and every other Loan Document, and in particular the Guaranty and this instrument; and (c) Guarantor reviewed tbe Guaranty and this instrument with Guarantor's attorney before signing them. 5, Whenever the context of this instrument requires, all terrns used in tbe singular will be construed in the plural and vice versa, and each gender will include each other gender. Dated this 10~'' day of _June 1998. GUARANTOR HAS READ THIS ENTIRE FORM. GUARANTOR FULLY UNDERSTANDS ITS CONTENTS AND INTENDS TO BE LEGALLY BOUND HEREBY, GUARANTOR: Gayle A. Hoffman VERIFICATION The undersigned, Angela Masser, hereby verifies and states that: 1. She is Vice-President of Commerce Bank/Harrisburg, N.A. herein; 2. She is authorized to make this Verification on its behalf; 3. The facts set forth in the foregoing Complaint are tree and correct to the best of her knowledge, information and belief; 4. She is aware that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unswom falsification to authorities. Dated: Angela~asser COMMERCE BANK/HARRISBURG N.A., Plaintiff DANIEL A. HOFFMAN and GAYLE A. HOFFMAN, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : _. :NO.: : CIVIL ACTION - LAW : CONFESSION OF JUDGMENT CONFESSION OF JUDGMENT By virtue of the authority conferred by the Guaranty, a copy of which is attached to the Complaint filed in this action, I appear for the Defendants and confess judgment in favor of the Plaintiff and against the Defendants for the sum of $81,029.73 and costs of suit.