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HomeMy WebLinkAbout00-01197 I iIIT-~_ r"-"~;i),,':X'L'i,r>,,'.':'_; 1;~,~:,';',\~<': "_'>-{:; ,~''';__ .' J ~ la' PENNSYLVANIA STATE BANK, Plaintiff - : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA Qt(.)~ J~ 00 - I/q7 : NO. v. CHRISTOPHER C. KAIN, and JILL E. KAIN, Defendants : CIVIL ACTION - LAW NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE 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. CUMBERLAND COUNTY BAR ASSOCIATION 2 Liberty Avenue Carlisle, Pennsylvania 17013 (717) 249-3166 NICHOLAS & FOREMAN ,/"l / I By / / , BRUCE . F R A, 4409 North Front Street Harrisburg, PA 17110 (717) 236-9391 Attorneys for Plaintiff Attorney 1.0. #21193 "....---.---..- --- ";"",,,,'I"j'_~_ '____,~, r .'!;fl_"",_,,,. "" _n.' - - PENNSYLVANIA STATE BANK, Plaintiff . : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : NO. v. CHRISTOPHER C. KAIN, and JILL E. KAIN, Defendants : CIVIL ACTION - LAW NOTICIA Le han demand ado a usted en la corte. Si usted quiere defenderse de estas demandas expuestas en las paginas siguientes, usted Iiene viente (20) dias de plazo al partir de la fecha de la demanda y la notificacion. Usted debe presentar una apariencia escrita 0 en persona 0 por abogado y archivar en la corte en forma escrita sus defensas 0 sus objeciones alas demandas en contra de su personal. Sea avisado que si, usted no se defiende, la corte tomara medidas y puede entrar una orden contra usted sin previa aviso 0 notificacion y por cualquier queja 0 alivio que es pedido en la peticion de demanda. Usted puede perder dinero 0 sus propiedades 0 otros derechos importantes para usted. LLEVE ESTA DEMANDA A UN ABOGADO IMMEDATAMENTE. SI NO TIENE ABOGADO 0 SI NO TIENNE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA 0 LLAME POR TELEFONO A LA OFICINA CUY A DIRECCION SE ENCUENTRA ESCRITA ABAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIRASISTENCIA LEGAL. CUMBERLAND COUNTY BAR ASSOCIATION 2 Liberty Avenue Carlisle, Pennsylvania 17013 (717) 249-3166 NICHOLAS & FOREMAN By BRU E . F E AN, S 4409 North Front Street Harrisburg, PA 17110 (717) 236-9391 Attorneys for Plaintiff Attorney 1.0. #21193 ~,_ '0 ," " - " c___" ~, ;111,_ """.f,'" " PENNSYLVANIA STATE BANK, Plaintiff : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : NO. tro- //9'1 Ch;J ~ v. CHRISTOPHER C. KAIN, and JILL E. KAIN, Defendants : CIVIL ACTION - LAW COMPLAINT AND NOW, comes the above-named Plaintiff, PENNSYLVANIA STATE BANK, by its attorneys, NICHOLAS & FOREMAN, brings this suit against Christopher C. Kain and Jill E. Kain, and, in support thereof, avers as follows: 1. Plaintiff, PENNSYLVANIA STATE BANK, is a Pennsylvania business corporation organized and properly existing under the laws of the Commonwealth of Pennsylvania with principal offices located at 2148 Market Street, Camp Hill, Cumberland County, Pennsylvania 17011. 2. Defendants, CHRISTOPHER C. KAIN and JILL E. KAIN, are adult individuals, husband and wife, sui juris, having a principal address of 135 North 26fu Street, Camp Hill, Cumberland County, Pennsylvania 17011. 3. At all times Defendants acted as agents for each other and are jointly and severally liable for all claims made herein. 4. On or about the 16thh day of December, 1997, Defendants jointly and severally, entered into an Executive Line of Credit Agreement with Plaintiff, whereby Plaintiff made available a line of credit in the amount of Sixty-Five Thousand ($65,000) Dollars which Defendants agreed to repay with interest. A true and correct copy of the said Executive Line of Credit Agreement, executed by each Defendant, is attached hereto, labeled Exhibit "A" and made a part hereof. -or: ,r- -"., . ~"_. 5. The said Agreement indicates default in the event when the payments were due with a default interest rate increasing by one-quarter of one percent (.25%) for the first thirty (30) days and an additional one quarter of one percent (.25%) for each thirty day period thereafter until the contract terminates. 6. Borrowers, Defendants herein, pay all costs of collection, including reasonable attorneys fees in the event of failure to pay. 7. As of March 1, 2000, Defendants owe the principal sum of FiftyThousand Seven Hundred Ninety-Five and 01/100 ($50,795.01) together with interest in the amount of $339.39 or a total of Fifty One Thousand One Hundred Thirty Four Dollars and 40/100 ($51,134.40). 8. Plaintiff demands collection fees, including reasonable attorneys fees in the amount of Five Thousand One Hundred Thirteen Dollars and 44/100. 9. Despite repeated demands by Plaintiff, Defendants refuse and continue to refuse to make payments required under the aforesaid loan and to pay the same. WHEREFORE, Plaintiff demands judgment against the Defendants, jointly and severally, in the amount of Fifty Six Thousand Two Hundred Forty-Seven ($56,247.84) Dollars, together with interest at the rate of 13.07 per diem from March 1, 2000 until paid in full and costs of suit. Respectfully submitted, NICHOLAS & FOREMAN By ~ ~.- BRUdE D. FOREMM, E UIRE 4409 North Front Street Harrisburg, PA 17110 (717) 236-9391 Attorneys for Plaintiff Attorney I.D. #21193 I"~ ., ,~, ' , , # . VERI FICA TION I verify that the statements made in this Complaint are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. , "\-~~ ] l\;< \:'C~ ;)(:-L U' . ~~~~~~~arv r"~ 1'- ,- "~--""'-'-~' ", '"'.,~, .. ,- ., " "~-- EXEl TIVE LINE OF CREDIT AGF. '::MENT Borrower: Christopher C. Kaln (SSN: 197-5G-ll3n) Jill E. Kaln (SSN: ) 135 N. 26th St. Camp Hili, PA 17011 Lender: PENNSYLVANIA STATE BANK Camp Hili 2148 Market Street, P.O. Box 487 Camp Hili, PA 17001-0487 CREDIT LIMIT: $65,000.00 Date of Agreement: December 16, 1997 Introduction. This EXECUTIVE LINE OF CREDIT AGREEMENT ("Agreement") governs your line of credit (the "Credit Line" or the "Credit Line Account") issued through PENNSYLVANIA STATE BANK. In this Agreement, the words "Borrower," "you." 'Your," and "Applicant" mean each and avery person who signs this Agreement, including all Borrowers named above. The words "we," "us," "our," and "Lender" mean PENNSYLVANIA STATE BANK. Vou agree to the followIng terms and conditions: Promise to Pay. You promise to pay PENNSYLVANIA STATE BANK, or order, the total of all credit advances and FINANCE CHARGES, together with all costs and expenses for which you are responsible under this Agreement or under the "Pledge Agreement" which secures your Credit Line. You will pay your Credit Line according to the paymantterms set forth below. II there Is more thsn one Borrower, each Is Jointly and severally liable on this Agreement. This means we can require anyone 01 you to pay all amounts due under thIs Agreemenl, IncludIng credit advances made 10 any of you. Each Borrower authorl2es any other Borrower, on his or her signature alone, to cancel the Credit Line, to request and receive credit advances, and to do all other things necessary to carry out the terms of this Agreement. We can release any of you from responsibility under Ihls Agreement, and the others will remain responsible. Term. The term of your Credit Line will begin as of lhe dele 01 the Agreement ("Opening Date") and will continue unlil December 20, 2007. Aii indebtedness under this Agreement, if not already paid pursuant to the payment provisions below, will be due and payable upon maturity. The draw period of your Credit Agreement will begin on a date, after the Opening Date, when the Agreement is accepted by us in the Commonwealth of Pennsylvania, following the expiration of the right to cancel, the perfection of the Pledge Agreement, the receipt of all required certificates of noncancetlation, and the meeting of all of our other conditions and wilt continue as follows: 120 months. You may obtain credit advances during this period ("Draw Period"), You agree that we may renew or extend the period during which you may obtain credit advances or make payments. You further agree that we may renew your Credit Line Account or extend its term, Minimum Payment. Your "Regular Payment" will be .50% ollhe oulslandlng principal balance plus all accrued IInance charges to the dale of the periodic slalemen\. Your "Minimum Payment" wlll be your Regular Payment plus all amounts past due, any voluntary credllllle and dlsablllty Insurance premiums, and all other charges. YoU agree to pay not less than the Minimum Payment on or belore the due dale Indicated on your periOdiC billing statement. An increase in the ANNUAL PERCENTAGE RATE will increase the amount 01 your regular periodic payments, In any event, if your Credit Line balance la\ls below $50.00, you agree to pay your balance in full. Balloon Payment. Your Credit Line Account is payable in full upon maturity in a single balloon,paymenl. You must pay Ihe entire outstanding principal, interest and any other charges then due. Unless otherwise required by applicable law, we are under no obligation 10 refinance the balloon payment atlhat time. You may be required to make payments out 01 other assets you own or find a lender, which may be us, willing 10 lend you Ihe money. "you refinance the balloon, you may have to pay some or all 01 the Closing costs normally associated wllh a new credllllne account, even II you obtain refinancing Irom us. Application of payments. Unless otherwise agreed or reqUired by applicable law, payments and other credits will be applied in the following order: to billed finance charge, billed credillife insurance premium, billed principal, late charges and balance to unpaid principal. Receipt of Payments. All payments must be made by a check, money order, or olher instrument in U.S. dollars and must be received by us at the remittance address shown on your periodic billing statement. Payments received at that address prior to 3:00 P,M. Eastern Standard Time on any business day will be credited to your Credit Line as of the date received. If we receive payments at other locations, such payments will be credited promplly to your Credit Line, but crediting may be delayed for up to five (5) days after receipt. Credit Limit. This Agreement covers a revolving line of credit for Sixty Five Thousand & 00/100 Dollars ($65,000.00). which will be your "Credit Limit" under this Agreement. You may borrow against the Credit Line, repay any portion of the amount borrowed, and re-borrow up to the amount of the Credit LImit. Your Credit Limit is the maximum amount you may have outstanding at anyone time. You agree not to attempt, request, or obtain a credit advance that will make your Credit Line Account balance exceed your Credit Limit. Your Credit limit will not be increased should you overdraw your Credit Une Account. \f you exceed your Credit limit, you agree to repay immediately the amount by which your Credit Line Account exceeds your Credit Limit, even if we have not yet billed you. Charges to Your Credit Line. We may charge your Credit Line to pay other fees and costs that you are obligated to pay under this Agreement or under any other document related to your Credit Line. Any amount so charged to your Credit Line will be a credit advance and will decrease the funds available, it any, under the Credit Line. However, we have no obligation to provide any of the credit advances referred to in this paragraph. Credit Advances. After the Effective Disbursement Date at this Agreement, you may obtain credit advances under your Credit Line as follows: (a) Writing a preprinted "Executive line at Credit Check" that we will supply to you. (b) Requesting a credil advance from your Credil Line 10 be applied 10 your designated accounl by Ielephone. YOU agree that we do nol accepl responsibility for the authenticity of telephone Instructions and that we will not be liable lor any loss, expense, or cost arising oul of any telephone requesl, Including any fraudulent or unauthorized telephone request, when acting upon such Instructions believed to be genuine. (c) Requesting a credit advance\ in person at any of our authorized locations. (d) Requesting an advence by mall. If there is more than one person authorized to use this Credit Line Account, you agree not to give us conflicting instructions, such as one of you telling us not to give advances to the other. Limitations on the Use of Executive LIne of Credit CheckS. We reserve the right not to honor Executive Line of Credit Checks in the fallowing circumstances: (a) Your Credit Limit has been or would be exceeded by paying the Executive Line of Credit Check. (b) Your Executive Line of Credit Check is post-dated. If a post-dated Executive Line of Credit Check is paid and as a result any other check is returned or not paid, we are not responsible. (c) Your Executive Line of Credit Checks have been reported lost or stolen. Cd) Your Executive Une of Credit Check is not signed by an "Authorized Signer" as defined below. (e) Your Credit Line has been terminated or suspended as provided in this Agreemenl or could be If we paid the Executive Line of Credit Check. (f) Your Executive Line of Credit Check is lass than the minimum amount required by this Agreement or you are in violation of any other transaction requirement or would be if we paid the Executive Line of Credit Check. If we pay any Executive Line of Credit Check under these conditions, you must repay us, subject to applicable laws, for the amount of the Executive Line cl Credit Check. The Executive Line of Credit Check itself will be evidence of your debt to us together with this Agreement. Our liability, if any, for wrongfut dishonor of a check IS limited to your actual damages. Dishonor for any reason as provided in this Agreement Is not wrongful dishonor. We may choose not to return Executive Line of Credit Checks along with your periodic billing statements; however, your use of an Executive Line ot Credil Check will be reflected on your periodic statement as a credit advance, We do not "certify" Executive Line of Credit Checks drawn on your Credit Line. Transaction Requirements. The following transaction limitations will apply to acceSSing your Credit Line by writing a Executive Line of Credit Check requesting an advance by telephone, requesting an advance in person or requesling an advance by mail. ' Minimum Advance Amount. The minimum amounl of any credit advance Ihat can be made on your Credit Line is as follows: $250.00. This means any Executive line of Credit Check must be written for at least the minimum advance amount. Authorl2e~ Signers, ~he.words "~uthori~ed.Signer" ~n Exe~utive Line of Credit Checks as used in this Agreement mean and include each person who (a) signs the application for thiS Credit Line, (b) signs thiS Agreement, or (c) has executed a separate signature authorization card for the Credit Line Account. 1_'-'l!lII_~ ~ - ~ ~.,,"," ,..,"- .~"..,.. ~ - ".- - 12-16-1997 ,Loan No 7004211-01 EXECUTIVE L1t-.jE OF CREDIT AGREEMENT (Continued) Page 2 Lost Executive Line 01 Credit Checks. If you los. your Ex.cutlve L1n. of Cr.dlt Ch.cks or som.on. is using th.m without your p.rmission. you agree to let us know Immediately. The fastest way to notify us is by calling us at (717) 731-7272. You also can notify us at our addr.ss shown at the beginning of this Agreement. Future Credit Line Services. Your application for this Credit Line also serves as a request to receive any new services (such as access devices) which may be available at some future time as one of our services In connection with this Credit LIne. You understand that this request Is vOluntary and that you may refuse any of these new services at the time they are offered. You further understand that the terms and conditions of this Agreement will govern any transactions made pursuant to any of these new services. Security Requirements. For this Cr.dlt L1n., w. r.quir. s.curily In the form of a Pladg. Agr..m.nt on L1f. insuranc. polley numb.r NW3-S44645 In the name of Christoph.r C. Kein in the amount of $100,000.00. You agr.. to tha terms of the PI.dge Agreement, all of the terms and condilions of which are Incorporated by reference in this Agreement. Right 01 Setoll. You grant to us a contractual possessory sacurity Interest in, and hareby assign, convey, deliver, piedg., and transfer to us all right, title and interest in and to, your accounts with us (whether checking, savings, or some other account), Including without limitation all accounts held jointly with someone else and all accounts you may open In the future, excluding however alllRA, Keogh, and trust accounts. You authorize us, 10 the extent permitted by applicable law, to charge or setoff all sums owing on this Agreement against any and all such accounts. Periodic Statements. If you have a balance owing on your Credit Une Account or have any account activity, we will send you a periodic statement. II will show, among other thirlgs, credit advances, FINANCE CHARGES I other charges, payments made, other credits, your "Previous Balance," and your "New Balance." Your statement also will identify the Minimum Payment you must make for that billing period and the date it is dUe, When FINANCE CHARGES Begin to Accrue. Pariodic FINANCE CHARGES for credit advanc.s under your Credit Line will begin to accrue on the date credit advances are posted to your Credit Une. There is no "free ride period" which would allow you to avoid a FINANCE CHARGE on your Credit Line credit advance$, Method Used to Determl~e the Balance on Which the FINANCE CHARGE Will Be Computed. A daily FINANCE CHARGE will be imposed on all credit advances made under your Credit Line imposed from the date of each credit advanc. based on the "daily balance" method. To get the dally balance we take the beginning balance of your Credit Line Account each day, add any new advances and subtract any payments or credits and any unpaid FINANCE CHARGES. This giv.s us the "daily balanc.... M.thod 01 Determining the Amount 01 FINANCE CHARGE. Any FINANCE CHARGE is determined by ap'plying the "Periodic Rate" to the balance described above. Then we add together the periodic FINANCE CHARGES for each day in the billing cycle. This Is your FINANCE CHARGE caiculated by applying a Periodic Rate. Periodic Rate snd Corresponding ANNUAL PERCENTAGE RATE. We will determine the Periodic Rate and the corresponding ANNUAL PERCENTAGE RATE as folloWS. We start with an ind.pendent index, (the "Index"), which Is the Prime Rate as publlsh.d in tha Wall Street Journal. When a range of rates has been published, the higher of the rates will be used. We will use the most recent Index value available to us as of the date of any ANNUAL PERCENTAGE RATE adjustment. The Index is not necessarily the lowest rate charged by us on our loans. To determine the Periodic Rate that will appiy to your account, we add a margin to the value of the Ind.x, then divide the valua by the number of days in a year (dally). To obtain the ANNUAL PERCENTAGE RATE we multiply the P.rlodlc Rat. by tha number of days in a year (dally). This result is the ANNUAL PERCENTAGE RATE. The ANNUAL PERCENTAGE RATE includes only Interest and no other costs. The Periodic Rate and tho corresponding ANNUAL PERCENTAGE RATE on your Credit Line will Increase or decrease as the Index Increases or decreas.s from time to time. Any Increase In the Periodic Rate will take th. form of higher paym.nt amounts. Adjustments to the Parlodlc Rate and the corresponding ANNUAL PERCENTAGE RATE resulting from changes in the Index will take eHect dally. In no evenl will the ANNUAL PERCENTAGE RATE be more than the lesser of 18.000% or the maximum rate allowed by applicable law. Today the Index Is 6.500% per annum, and therefore the initial Periodie Rate and the corresponding ANNUAL PERCENTAGE RATE on your Credit Line are as stated below: Range of Balance Margin Added ANNUAL PERCENT AGE Dally Periodic or Condlllons to Index RATE Rate All Balences 1.000 % 9.500 % 0.02603 % Notwithstanding any other provision of this Agreement, we will not charge Interest on any undisbursed loan proceeds. Forgo Rate Increases. If we lorgo an ANNUAL PERCENTAGE RATE increase. at the lime of a later adjustment we may return to the full Index value plus margin. Condlllons Under Which Other Charg.s May be Imposed. You agree to pay all the other fees and charges related to your Credit Line as set forth below: Returned lIems. You may be charged $20.00 If you pay your Credll Line obligallons with a check, draH, or other item that Is dishonored for any reason, unless applicable law requires a lower charge or prohibits any charge. Fee to Stop Payment. Your Credit Line Account may be charged $20.00 when you request a stop payment on your account. Late Charges. Your payment will be late if it is not received by us within 14 days of the "Payment Due Date" shown on your periodic statement. If your payment Is late we may charge you 5.000% of the payment or $5.00, whichever is greater. Lender's Rights. (a) Termination and Acceleration. We can terminate your Credit Line Account and require you to pay us the entire outstanding balance in one payment, and charge you certain fees, if any of the following happen: (1) You commit f(aud or make a material misrepresentation at any lime in connection with this Credit Line Account. This can include I for example, a false statement about your income, assets, liabilities, or any other aspects of your financial condition. (2) You do not meet the repayment terms of this Credit Line Account. (3) Your action or inacllon adversely affects the collateral for the plan or our rights in the collaterai. This can include, for example, failure to maintain required ins\Jranc8, wa~te or destructive use of the Property, failure to pay taxes, death of all persons liable on the account, transfer of title or sale of the Property, creation of a senior lien on the Property without our permission, foreclosure by the holder of another lien or the use of funds or the dwelling for prohibited purposes. (b) Suspension or Reduction. In addition to any other rights we may have, we can suspend additional extensions of credit or reduce your Credit Limit during any period in which any of the following are In effect: (1) The value of your Property declines significantly below the Property's appraised value for purposes of this Credit Line Account This includes, for example, a decline such that the Initial difference between the credit limit and the available equity is reduced by fifty percent and may include a smaller decline depending on the individual circumstances. (2) We reasonablY believe that you will be unable to fulfill your payment obligations under your Credit Line Account due to a material change in your financial circumstances. (3) Y.ou ar~ in ?ef8~1t under any material obl~gations of this Credit Line Account. We consider all of your obligations to be material. Categories of m~te.rlal. obligatIOns Incl~de the ev~nts described ~bove under Termination and Acceleration, obligations to pay fees and charges, obligations and limItations on the receIpt of credit advances, obligations concerning maintenance or use of the Property or proceeds, obligations to pay and perform the terms of a.ny other d~ed of t~USt, mo~ga~e or lease of the Property, obligations to notify us and to provide documents or information to us (such as updated !manclal Inf.ormatlo~), obll~atlons to. comply with applicable laws (such as zoning restrictions), and obligations of any comaker. No default WIll occur unhl we mall or deliver a notice of default to you, so you can restore your right to credit advances. (4) We are preciuded by government acllon from imposing the ANNUAL PERCENTAGE RATE provided for under this Agreement. (5) The priority of our security interest is adversely aHected by government action to the extent that the value of the security interest is Jess than 120 percent of the Credit Limit. (6) We have been notified by governmental authority that continued advances may constitute an unsafe and unsound business practice. (c) Change In Terms. We may make changes to the terms of this Agreement if you. agree to the change in writing at that time, if the change will unequlvocalf~ benefIt you throughout the remainder of yo.ur Credit Ll~e Account, or If the change is insignificant (such as changes relating to our data processmg SYS,tElms): ~f the Index i~ ~o longer available, we Will choose a new Index and margin, The new Index will have an historical movement substantlelly Similar ,to the onglnai Ind.x, and the new Index and margin will result in an ANNUAL PERCENTAGE RATE that is substantially simi1~r ~o .the r~te In effect at. the t~me the ori~inal index becomes unavailable. We may prohibit additional extensions of credit or reduce your Credit LIrl1lt dUring any pf -lm which the maxImum ANNUAL PERCENTAGE Rr '': under your Credit Line Account is reached. (d) Collection Costs. If you do not ""....t, we may hire or pay someone else to help collect )_...r Credit Line Account. You also will pay us that <'-,~ ~~ ]T~~~ - ~,~-,...""",~ - ",~ 12-;16-199'1 LQan No 7004211-01 E: :UTIVE LINE; OF CREDIT AGRE .ENT (Continued) . Page 3 amount. This includes, subject to any limits under applicable law, our attorneys' fees and our legal expenses whether or not there Is a lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings (Including efforts to modify or vacate any automatic stay or injunction), appeals. and any anticipated post-judgment collection services. (e) Access Devices. If your Credit Line is suspended or terminated, you must Immediately return to us all Executive Line of Credit Checks and any other access devices. Any use ot Executive Line of Credit Checks or other access devices following suspension or termination may be considered fraudulent. You will also remain liable for any further use of Executive Line of Credit Checks or other Credit Line access devices not returned to us. Delay In Enlorcement. We may delay or waive the enforcement of any of OUr rights under this Agreement without losing thaf right or any other right. If we delay or waive any of our rights, we may enforce that right at any time in the future without advance notice. For example, not terminating your account for non-payment will not be a waiver of our right to terminate your account in the future if you have not paid. CanceUatlon by You. (f you cancel your right to credit advances under this Agreement, you must notify us and return all Executive Line of Credit Checks and any other access devices to us. Despite cancellation, your obligations under this Agreement will remain In full force and effect until you have paid us all amounts due under this Agreement. Prepayment. You may prepay all or any amount owing under thl. Credit Line at any time without penalty, except we will be entilled to receive all accrued FINANCE CHARGES. and other charges. if any. Payments In exce.. of your Minimum Payment will not relieve you of your obligation to continue to make your Minimum Payments. Instead, they will reduce the principal balence owed on the Credit Line. if you merk a check, money order. or other instrument sent in payment with "paid in FUll" or with similar language, we mey accept the payment, and you will remain obligated to pay any further amount owed 10 us. Nollces. All notices will be sent to your address as shown in this Agreement. Notices will be mailed to you af a different address if you give us wrillen nollce of e different address. You agree to advise us promplly if you change your mailing address. Annuel Review. You agree that you will provide us with a current financiai .tatement, a new credit application, or both, annually, on forms provided by us. Based ,upon this information we will conduct an annual review of your Credit Line Account. You also agree we may obtain ,credit reports on you at any time, at' our sole option for any reason, including but not limited to determining whether there has been an adverse change in your IInancial condition. We may require a new appraisal of the Property which secures your Credit Line at any time, including an Internal Inspection, at our sole option. You agree to reimburse us for any costs we Incur in connection with the annual review. You authorize us to release Information to others (such as credit bureaus, merchants, and other fin~ncial institutions) about the statu. and history of your Credit Line Account. Transler or Assignment. Without prior nollce or approvai from you, we reserve the right to sell or transfer your Credit Line Account to another iender, entity, or person, and to assign our rights under the Pledge Agreement. Your rIghts under this Agreement belong to you only and may not be transferred or assigned. Your obligations, However, are binding on your heirs and legal representatives. Tax Consequences. You should consull a tax advisor regarding the deductibility of interest and Charges under the Credit Line Account. Governing Law. This Agreement will be governed by lederal law and by the lawa 01 the Commonwealth 01 Pennsylvania. The Credit Line which Is the subject of this Agreement haS been applied lor, considered, approved, and made In the Commonwealth 01 Pennsylvania. Interpretation. The names given to paragraphs or sections In this Agreement are for convenience purposes only. They are not to be used to Interpret or define the provisions of this Agreemerlt. You agree that this Agreement, together with the Pledge Agreement, Is the best evidence of your agreements with us. If a court finds that any provision of this Agreement is not valid or should not be enforced, that fact by itself will not mean thai the rest of this Agreement will not be valid or enforced. Therefore, a court may enforce the rest of the provisions of this Agreement even if e. provision of thIs Agreement may be found to be invalid or unenforceable. If we go to court for any reason, we can use a copy, filmed or electronic, of any periodic statement, this Agreement, the Pledge Agreement, or any other document to prove what you owe us or that a transaction has taken place. The copy, microfilm, microfiche, or optical image will have the same vaUdity as the original. You agree that, except to the extent you can show there is a billing error, your most current periodic billing statement is the best evidence of your obligation to pay. DEFAULT INTEREST RATE. In the event of default for which the Bank does not accelerale the Loan. including Ihe failure of Borrower to provide the financial statements as required hereunder or under the Loan Agreement, the applicable interest rate on the Loan, for a period beginning three (3) days after wrillen notice of such default and ending upon the curing of seld noticed default, shall increase one quarter of one percent (.25%) for the first thirty (30) days of said default and increase an additional one quarter of one percent (.25%) during eech thirty (30) day period thereafter during which the notice default continues. Such default interest rates shall apply to the outstanding principal balance of the Loan. Upon the curing of the noticed default, the interest rate on the Loan shall ravert to the initially agreed-upon interest rate effective on the date on which the default is cured. REQUIRED DEPOSIT ACCOUNT. The Credit Line Is subject to malnteining a $5,000 deposit relationship with Pennsyivania State Bank or holding a minimum of $5,000 in Pennsylvania State Bank stock for the duration of the Line. ANNUAL REVIEW. You agree thai you will provide us with a current financial statement and current year tax return, a new credit application, or both, annually, on forms provided by us. Based upon this information we will conduct an annual review of your Credit Line Account. You also agree we may obtain credit reports on you at any time, et our sole option and expense, for any reason, incfudlng but not limited to whether Ihere has been en edverse change In your financial condition. You authorize us to release Information to others (such as credit bureaus, merchants, and other financial Institutions) about the status and history of your Credit Line Account, I Acknowledgment and Amendments. You understand and agree to fhe terms and conditions in this Agreement. By signing this Agreement, you acknowiedge that you have reed this Agreement. You also acknowledge receipt of a copy of this Agreement, including the Fair Credit Billing Notice and the early home equity line of credit application disclosure, in addition to the handbook entitled 'When Your Home Is On the Une: What You Should Know About Home Equity Lines of Credit," given with the application. This Agreement is daled December 16, 1997. I iHIS AGREEMENT HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: i I '\ ' ww.:"':A~~:h"..:.:/ ..-:.: '~::'/:::.:':::' ............... ... Chr stopher CCEPTED: PENNSYLVANIA STATE BANK ~ - c few {1.t- kv. x mf1;}j~kiifW~lWIIlli~~f' -""JIII . aln ...........:.~.:,.~:... ....... ..............................,.............. i'i:W!/Nt$~F y: Ellectlve Disbursement Date: fJI II. ,19 \ 7 NOTICE TO COSIGNER u are being asked to guarantee this debt. Think carelully belore you do. II the borrower doesn't pay the debt, you will have to. Be sure u can allord 10 pay" you have to, and that you want to accepl this responsIbility. u may have to pay up to the full amount 01 the debt If the borrower does not pay. You may also have to pay late lees or collection costs Ich Increase this amount. ' e creditor can collect this debtlrom you without Ilrst trying to collect from the borrower, The creditor can use the same collection methods ~alnst you that can be used against the borrower, such as suing you, garniShing your wages, etc, If this debt Is ever In delault, that lact may come a part of YOUR credit record. Is notice Is not the contract that makes you liable lor the debt. , 'i"~~~, ~,-., ~ ~ . . 12-16-1997 loan No 7004211-01 EXECUTIVE LINE OF CREDIT AGREEMENT . (Continued) Page' Variable Rate. LIne of Credit. LASER 8le.1lJNG' 1:PlflI()R'.fM GH1'Ss'<VICOS. 100. All "ghts ',,"cvod.IPA-D25 CAIN.LN L 11 ,DVl YOUR BilLING RIGHTS KEEP THIS NOTICE FOR FUTURE USE This nDtlce contains Importsnt Information about your rights and our responsibilities under the Fair Credit Billing Act. Notify us In case of errors or questions about your bill. If you think your bill Is wrong, or If you need more Informetlon about a transaction on your bill, write us on a separate sheet et2148 Market Street, P.C Box 487, Camp Hili, PA 17001-0487 or at the address listed on your bill. Write to us es soon as possible. We must heer from you no later than six! (60) days after we sent you the first bill on which the error or problem appeared. You can telephone us, but doing so will not preserve your rights. In your leller. give us the following Informelion: Your name and account nU~ber. The dollar amount of the suspe'cted error. Describe the error and explain, jf VOU can, Why you believe there is an error. If you need more information, describe the item you are not sur about. If you have authorized us to pay your bill automatically from your savings or checking account, you can stop the payment on any amount you think i wrong. To stop the payment. your leller must reach us three (3) business days before the automatic payment is scheduled to occur. Your rlghtil and our responsibilities after we receive your written notice. Wa must ecknowledge your leller within thirty (30) days, unlass we heve corrected the error by then. Wlthinl.ninety (90) days, we must either correct tho error or explain why we believe the bill was correct. After we receiiVa your laUer, we cannot try to collect any amount you question, or report you as delinquent. We can continue to bill you for the amoun you question,; Including finance charges, and we can apply any unpeld amount against your Credit limit. You do not have to pay any questlonsl amount while We arelnvestigaling, but you ere s\11I obligated \0 pay the parts of your bill that are not 1.0 question. If we find tha\.we mede a mlsteke on your bill, you will not have to pay any finance charges related to any questioned amount. If we didn't make I misleke, you (nay have to pey finance charges, and you will heve to make up any missed payments on the questioned amount. In either case, we wll send you a stBlement of the emount you owe and the date on which It Is due. If you fall to pay the amount that we think you owe, we mey report you as delinquent. However, If our explanation does not satisfy you and you write tl us within ten (10) days telling us that you stili refuse to pay, we must tell anyone we report you to that you have a question about your bill. And, WI must tell you the neme of anyone we reported you to. We must tell anyone we report you to that the mailer has been settled between us when It flnali! Is. It we don't follow these rules, we can't collect the first $50 of the questioned amount, even if your bill was correct. :^,>:W,!lI"'~"'l'''-"" " "'"!-~~, ~~ -"~~ ~""'- ~ >- - ~i ~~~ 3 w~ .3 <) .. ....... - ,00 t'- ....... ~ 1 If:~ x: I I ~ r6 Cl.. ~~ BB G :::. 0- ~v N , ~- 3~ ; 0_ I . . 0i .Ii!w 0.-:: cr.z: ~UJj S~ F: "" ii1,~ :IE: ~ ::1#-;: IJ,.. <::) 0 0 0 I 0 Cl U 0 ..... ~i ~ ~ 0 t-~ _r. UJ ...... z w..... ~ a: ~ P<~ t-<( . r.n en Z,... ~ ~~ ! ~ ~~!Z~gj z Ul ~~ ~~~ ~~ +> ~ ~ ~~ IZ- ~~ j ti: g: ~ ~.~ u ..~ ~ <:IJ 0 .- -< Z CJ !! i~ ~~~ ~ ...:i Cl a: 8 0 o o:J :> == ::J:~ i ~hi u a: ..... a: ~~ Ul Z <( ~~ I . \. . . NICHOL,\S & FOREMAN, PoCo o