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LAW O"PICES
SNELDI\I<ER.
BRENNEM,\N
& SPARE
which this Complaint For Confession of Judgment is based.
6. The Promissory Judgment Note dated November 7, 1997
which is referenced in the Guaranty is attached hereto and
incorporated by reference herein as "Exhibit B".
7. Judgment entered hereby is not being entered by
confession against a natural person in connection with a
consumer credit transaction.
8, The attached Guaranty or the Note referenced therein
have not been assigned.
9. Judgment has not been entered on the attached Guaranty
in any jurisdiction.
10. Judgment under the Guaranty need not be entered only
after a default or t.he occurrence of a condition precedent.
11. The amounts due by Defendants under the Guaranty
presently are itemized as follows:
A. Principal Sum: $150,000.00
B. Unpaid Interest: 7,000.00
C. Collection Fees (15% of items
A and B, above) : -23.550.00
Tota 1 : $180,550.00
WHEREFORE, Plaintiffs demand judgment against Defendants
Keith L. Plasterer and Jamie Lee Plasterer as authorized by the
warrant in the attached Guaranty in the principal sum of
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liYf\RANT~
THIS GUARANTY made, executed and delivered this
of November, 1997 by:
"1 day
,-
KEITH L. PLASTERER and JAMIE LEE PLASTERER,
hereinafter called "Guarantors",
to
MARY A. KELLY and W. WAYDE KELLY, as joint
tenants with right of survivorship and not as
tenants in common, of 101 Kelly Drive, Carlisle,
PA 17013-9001, hereinafter called "Obligees":
WITNESSETH:
WHEREAS, KLP ENTERPRISES, INC., (hereinafter called
"Obligor") is obligated to Obligees under a certain promissory
Judgment Note of even date herewith (hereinafter called "Note")
in the principal amount of $150,000.00, the obligation as
documented by said Note hereinafter called "Obligation"; and
WHEREAS, Obligor has offered the guarantee of Guarantors to
Obligees in order to enhance Obligees' assurance of payment of
the Obligation;
NOW, THEREFORE, in consideration of the sum of One and
NO/l00 ($1.00) Dollar in hand paid by Obligees to Guarantors, the
receipt of which is hereby acknowledged by Guarantors, for other
good and valuable consideration and intending to be legally bound
hereby, Guarantors hereby jointly and severally and absolutely
and unconditionally guarantee and promise to pay to Obligees or
their order, in legal tender of the United States of America, one
hundred percent (100%) of the obligation of Obligor on the terms
and conditions set forth in this Guaranty.
EXIIIBlT A
NATURE or GUARANTY. Guarantors' liability under this
Guaranty shall be open, unlimited and oontinuous for so 101lg as
this Guaranty remains in force. Guarantors intend to guarantee
at all times the performance and prompt payment When due, Whether
at maturity or earlier by reason of aoceleration or otherwise, of
all the Obligation. Accordingly, no payments made upon the
Obligation will discharge or diminish the continuing liability of
Guarantors in connection with any remaining portions of the
Obligation.
DURATION OF GUARANTY. This Guaranty will take effect when
received by Obligees without the necessity of any acceptance by
Obligees, or any notice to Guarantors or to Obligor, and will
continue in full force until all indebtedness incurred or
contracted before receipt by Obligees of any notice of revocation
shall have been fUlly and finally paid and satisfied and all
other Obligations of Guarantors under this Guaranty shall have
been performed in full. If Guarantors elect to reVoke this
Guaranty, Guarantors may only do so in writing. Guarantors'
written notice of reVocation must be delivered to Obligees at the
address of Obligees listed above or SUch other place as Obligees
may designate in writing, This Guaranty may be reVoked only with
respect to Obligation incurred or contracted by Obligor, or
acquired by Obligees thirty (30) days or more after the date on
which written notice of reVocation is actually received by
Obligees. No notice of reVocation hereof shall be effective as
to any Obligation: (a) existing at the date of receipt of SUch
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notice; (b) incurred or contracted by Obligor, or acquired by
Obligees, within thirty (30) days after receipt of such notice;
(c) now existing or hereafter crebted pursuant to or evidenced by
any loan agreement or commitment under which Obligor is or may
become obligated to Obligees; or (d) renewals, extensions,
consolidations, substitutions, and refinancings of the foregoing.
The death of either or both of the Guarantors shall not operate
as a revocation of liability hereunder of the estate of either
Guarantor as to transactions entered into or Obligation created
subsequent to such death until actual receipt by Obligees of
written notice of the death of Guarantor. Any payment by
Guarantors with respect to the Obligation guaranteed shall not
reduce the maximum obli,gation hereunder, unless written notice to
that effect be actually received by Obligees at or prior to the
time of such payment. This Guaranty shall bind the estate of
each of the Guarantors as to the Obligation created both before
and after the death or incapacity of either Guarantor, regardless
of Obligees' actual notice of either Guarantor's death. Subject
to the foregoing, a deceased Guarantor's executor or
administrator or other legal representative may terminate this
Guaranty in the same manner in which Guarantor might have
terminated it and with the same effect. It is anticipated that
fluctuations may occur in the aggregate amount of the Obligation
covered by this Guaranty. This Guaranty is binding upon each
Guarantor, jOintly and severally, and on each Guarantor's heirs,
personal representatives, successors and assigns so long as any
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of the guaranteed Obligation remains unpaid.
GUARANTORS' AUTHORTZATION TO OBLIGBES. Guarantors authorize
Obligees, either before or after any revocation hereof, without
notice or demand and without lessening Guarantors' liability
under this Guaranty, from time to time: (a) to alter,
compromise, renew, extend, accelerate or otherwise change one or
more times the time for payment or other terms of the Obligation
or any part of the Obligation; extensions may be repeated and may
be for longer than the original loan term; (b) to determine how,
when and what application of payments and credits shall be made
on the Obligation; (c) to sell, transfer, assign or grant
participations in all or any part of the Obligation; and (d) to
assign or transfer this Guaranty in whole or in part.
GUARANTORS' REPRESENTATIONS AND WARRANTIES. Guarantors
represent and warrant to Obligees that (a) no representations or
agreements of any kind have been made to Guarantors which would
limit or qualify in any way the terms of this Guaranty; (b) this
Guaranty is executed at Obligor's request and not at the request
of Obligees; (e) Obligees have made no representation to
Guarantors as to the creditworthiness of Obligor; (d) upon
Obligees' request, Guarantors will provide to Obligees financial
and credit information in form acceptable to Obligees, and all
such financial information provided to Obligees shall be true and
correct in all material respects and fairly presents the
financial condition of Guarantors as of the dates thereof, and no
material adverse change has occurred in the financial condition
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of Guarantors since the date of the financial statements; and (e)
Guarantors have established adequate means of obtaining from
Obligor on a continuing basis information regarding Obligor's
financial condition. Guarantors agree to keep adequately
informed from such means of any facts, events or circumstances
which might in any way affect Guarantors' risks under this
Guaranty, and Guarantors further agree that, absent a request for
information, Obligees shall have no obligation to disClose to
Guarantors any information or documents acquired by Obligees in
the course of their relationship with Obligor.
GUARANTORS' WAIVERS. Except as prohibited by applicable
law, Guarantors waive any right to require Obligees: (a) to make
any presentment, protest, demand, or notice of any kind,
inclUding notice of any nonpayment of the Obligation or of any
nonpayment related to any collateral, or notice of any action or
nonaction on the part of Obligor or Obligees in connection with
the Obligation; (b) to resort for payment or to proceed directly
or at once against any person, including Obligor; (c) to proceed
directly against or exhaust any collateral held by Obligees from
Obligor, any other guarantor, or any other person; Cd) to pursue
any other remedy within Obligees' power; or (e) to commit any act
or omission of any kind, or at any time, with respect to any
matter whatsoever.
If now or hereafter (a) Obligor shall be or become
insolvent, and (b) the Obligation shall not at all times until
paid be fully secured by collateral pledged by Obligor,
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Guarantors hereby forever waive and reHnquish in favor of
Obligees and obligor, and their respective successors, any claim
or right to payment Guarantors may now have or hereafter have or
acquire against Ob1i.gor, by subrogation or otherwise, so that at
no time shall Guarantors be or become a "creditor" of Obligor
within the meaning of 11 U.S.c. Section 547(b), or any successor
provision of the Federal bankruptcy laws.
Guarantors also waive any and all rights or defenses ariSing
by reason of (a) any "one action" or "anti-deficiency" law or any
other law which may prevent Obligees from bringing any action,
including a claim for deficiency, against Guarantors, before or
after Obligees' commencement or completion of any foreclosure
action, either jUdicially or by exercise of a power of sale; (b)
any election of remedies by Obligees which destroys or otherwise
adversely affects Guarantors' subrogation rights or Guarantors'
rights to proceed against Obligor for reimbursement, including
without limitation, any loss of rights Guarantors may suffer by
reason of any law limiting, qualifying or disCharging the
Obligation; (c) any disability or other defense of Obligor, of
any other guarantor, or of any other person, or by reason of the
cessation of Obligor's liability from any cause whatsoever, other
than payment in full in legal tender, of the Obligation; (d) any
right to claim discharge of the Obligation on the basis of
unjustified impairment of any collateral for the Obligation; (e)
any statute of limitations, if at any time any action or suit
brought by Obligees against Guarantors is commenced there is
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out~tanding Obligation of Obligor to Obligees which is not barred
by any applicable statute of limitationSi or (f) any defenses
given to guarantors at law or in equity other than actual payment
and performance of the Obligation. If payment is made by
Obligor, whether voluntarily or otherwise, or by any third party,
on the obligation and thereafter Obligor is forced to remit the
amount of that payment to Obligor's trustee in bankruptcy or to
any similar person under any federal or state bankruptcy law or
law for the relief of debtors, the Obligation sh~ll be considered
unpaid for the purpose of enforcement of this Guaranty.
Guarantors further waive and agree not to assert or claim at
any time any deductlons to the amount guaranteed under thi.s
Guaranty for any claim of setoff, counterclaim, counter demand,
recoupment or similar rights, whether such claim, demand or right
may be asserted by the Obligor, the Guarantors, or both.
GUARANTORS' UNDERSTANDING WITH RESPECT TO WAIVERS.
Guarantors warrant and agree that each of the waivers set forth
above is made with Guarantors' full knowledge of its significance
and consequences and that, under the circumstances, the waivers
are reasonable and not contrary to public policy or law. If any
such waiver is determined to be contrary to any applicable law or
pUblic policy, such waiver shall be effective only to the extent
permitted by law or pUblic policy.
SUBORDINATION OF OBLIGOR'S DEBTS TO GUARANTORS. Guarantors
agree that the Obligation of Obligor to Obligees, shall be prior
to any claim that Guarantors may now have or hereafter acquire
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against Obligor, whether or not Obligor becomes insolvent.
Guarantors hereby expressly subordinate any claim Guarantors may
have against Obligor, upon any account whatsoever, to any claim
that Obligees may now or hereafter have against Obligor. In the
event of insolvency and consequent liquidation of the assets of
Obligor, through bankruptcy, by an assignment for the benefit of
creditors, by voluntary liquidation, or otherwise, the assets of
Obligor applicable to the payment of the claims of both Obligees
and Guarantors shall be paid to Obligees and shall be first
applied by Obligees to the Obligation of Obligor to Obligees.
Guarantors do hereby assign to Obligees all claims which they or
either of them may have or acquire against Obligor or against any
assignee or trustee in bankruptcy of Obligor; provided, however,
that such assignment shall be effective only for the purpose of
assuring to Obligees full payment in legal tender of the
Obligation. If Obligees so request, any notes or credit
agreements now or hereafter evidencing any debts or obligations
of Obligor to Guarantors shall be marked with a legend that the
same are subject to this Guaranty and shall be delivered to
Obligees. Guarantors agree, and Obligees hereby are authorized,
in the name of Guarantors, from time to time to execute and file
financing statements and continuation statements and to execute
such other documents and to take such other actions as Obligees
deem necessary or appropriate to perfect, preserve and enforce
its rights under this Guaranty.
CONFESSION OF JUDGMENT. Guarantors hereby irrevocably
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authorize and empower any attorney or the Prothonotary or Clerk
of any Court in the Commonwealth of Pennsylvania, or elsewhere,
to appear at any time for Guarantors, and with or without
complaint filed, as of any term, confess or enter judgment
against Guarantors for the entire principal balance of this
Guaranty and all accrued interest, together with costs of suit,
and an attorney's commission of fifteen percent (15%) of the
unpaid prindipal balance and accrued interest for collection, but
in any event not less than Five Hundred Dollars ($500)/ and for
so doing, this Guaranty or a copy of this Guaranty verified by
affidavit shall be sufficient warrant. The authority granted in
this Guaranty to confess judgment against Guarantors 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. The authority granted in this
Guaranty to confess judgment shall not be limited to any prior
default by Guarantors or Obligor, but may be exercised by
Obligees to protect and preserve Obligees' rights against
Guarantors.
MISCELLANEOUS PROVISIONS. The fOllowing miscellaneous
provisions are a part of this Guaranty:
Amendments. This Guaranty constitutes the entire
understanding and agreement of the parties as to the
matters set forth in this Guaranty. No alteration of
or amendment to this Guaranty shall be effective unless
given in writing and signed by the party or parties
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sought to be charged or bound by the alteration or
amendment.
Applioable La.,. This Guaranty has beon deliverod
to Obligees and acoepted by Obligees in the
Commonwealth of Pennsylvania, If there is a lawsuit,
Guarantors agree upon Obligees' request to submit to
the jurisdiction of the courts of CUMBERI~ND County,
Commonwealth of Pennsylvania. Obligees and Guarantors
hereby waive the right to any jury trial in any action,
proceeding, or counterclaim brought by either Obligee
or Guarantors against the other. This Guaranty shall
be governed by and construed in accordance with the
laws of the Commonwealth of Pennsylvania.
Attorney's raes; Expenses. Guarantors agree to
pay upon demand all of Obligees' costs and expenses,
including attorneys' fees and Obligees' legal expenses,
incurred in connection with the enforcement of this
Guaranty. Obligees may pay someone else to help
enforce this Guaranty, and Guarantors shall pay the
costs and expenses of such enforcement. Costs and
expenses include Obligees' attorneys' fees and legal
expenses whether or not there is a lawsuit, including
attorneys' fees and legal expenses for bankruptcy
proceedings (and including efforts to modify or vacate
any automatic stay or injunction), appeals, and any
anticipated post-judgment collection services.
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Guarantors also shall pay all oourt oosts and suoh
additional fees as may be direoted by the oourt.
Notio... All notioes required to be given by
either party to the other under this Guaranty shall be
in writing and shall be effective when aotually
delivered or when deposited with a nationally
reoognized overnight oourier, or when deposited in the
United states mail, first class postage prepaid,
addressed to the party to whom the notice is to be
given at the address shown above or t.o such other
addresses as either party may designate to the other in
writing. For notice purposes, Guarantors agree to keep
Obligees informed at all times of Guarantors' current
address or addresses.
Interpretation. The words "Guarantors", "Obligor"
and "Obligees" include the heirs, successors, assigns
and transferees of each of them. Caption headings in
this Guaranty are for convenience purposes only and are
not to be used to interpret or define the provisions of
this Guaranty. If a court of competent juriSdiction
finds any provi.sion of this Guaranty to be invalid or
unenforceable as to any person or circumstance, such
finding shall not render that provision invalid or
unenforceable as to any other persons or circumstances,
and all provisions of this Guaranty in all other
respects shall remain valid and enforceable. If any
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'..-;'....
one or more of Obligor or Guarantors are corporations
or partnerships, it is not necessary for Obligees to
inquire into the powers of Obligor or Guarantors or of
the officers, directors, partners, or agents acting or
purporting to act on their behalf, and any Obligation
made or created in reliance upon the professed exercise
of such powers shall be guaranteed under this Guaranty.
"aiver. Obligees shall not be deemed to have
waived any rights under this Guaranty unless such
waiver is given in writing and signed b~' Obligees. No
delay or omission on the part of Obligees in exercising
any right shall operate as a waiver of such right or
any other right. A waiver by Obligees of a provision
of this Guaranty shall not prejudice or oonstitute a
waiver of Obligees' right otherwise to demand strict
oompliance with that provision or any other provision
of this Guaranty. No prior waiver by Obligees, nor any
course of dealing between Obligees and Guarantors shall
constitute a waiver of any of Obligees' rights or of
any of Guarantors' obligations as to any future
transactions. Whenever the consent of Obligees is
required under this Guaranty, the granting of such
consent by Obligees in any instance shall not
constitute continuing consent to subsequent instances
where such consent is required and in all cases such
consent may be granted or withheld in the sole
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EXPLANATION OF RIGHTS
(Full confession)
A. I/we, the undersigned Guarantors, clearly and specifically
understand that by signing the above Guaranty dated November
, 1991, in the amount of One Hundred Fifty Thousand and
No/100 ($150,000.00) Dollars in favor of MARY A. KELLY and W.
WAY DE KELLY which contains a Confession of Judgment clause:
1. I/wa am/are authorizing MARY A. KELLY and W. WAYDE
KELLY, or the survivor of them, Obligees, to enter a judgment
against me/us in his/her/their favor which will give the Obligees
a lien upon any real estate which I/we may own, inclUding my/our
home and personal resi.dence;
2. I/we gi.ve up the right to any notice or opportunity to
be heard on the entry of said judgment on the record of the
court;
3. I/we agree that MARY A, KELLY and W. WAYDE KELLY, or the
survivor of them, can enter this judgment without any proof of
non-payment or other default on my/our part;
4. I/we will subject all of my/our property, both personal
property and real estate, to execution (and Sheriff'S sale)
pursuant to this judgment, prior to proof of non-payment or other
default on my/our part;
5. I/we will be unable t.o challenge such judgment, should
the Obligees enter it, except by a proce~ding to open or strike
the judgment; and that such a proceeding will result in
attorney's fees and costs which I/we will have to pay.
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8. I/we know and understand that it is the Confassion ot
Judgment clause in the above-described Guaranty whiL1h give.
Obligees the rights enumerated in sub-paragraphs 1 through !l of
paragraph A above.
IF I/WE DO NOT SIGN THE ABOVE GUARANTY WHICH CONTAINS ^
CONFESSION 0.' JUDGMENT CLAUSE, I/WE UNDERSTAND 'f"^,f l/WE WOULD
HAVE THE FOLLOWING:
1. The right to have notice and an opportunity to be heard
prior to judgment;
2. The right to have the burden of prOVing default rest
upon the Obligees before my/our property could be exposed to
execution;
3. The right to avoid the additional expense of attorney's
fees and costs incident to opening or striking off a confessed
judgment.
C. Fully and completely understanding these rights which I/we
and each of us have prior to signing the above-desoribed Guaranty
and clearly aware that these rights will be given up, waived,
relinquished and abandoned if I/we sign said Guaranty, I/we
nevertheless freely and voluntarily choose to sign said Guaranty,
my/our intention being to give up, waive, relinquish and abandon
my/our known rights (as described in paragraph B above) and
subject myself/ourselves to tho circumstances described in
paragraph A above.
D. Each of the undersigned hereby certifies that (he) (she)
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PROMISSORY JUDGMENT NOTE
$150,000.00
November ~___, 1997
On demand after date, RLP ENTERPRISES, INC., the undersigned
Maker, hereby promises to pay to MARY A. KELLY and W. WAYDE
KELLY, joint tenants with right of survivorship and not as
tenants in common, or their assigns, the sum of One Hundred Fifty
Thousand and NO/lOO ($150,000.00) DOllars, without defalcation,
value received, with interest at the rate of fourteen per centum
(14%) per annum from the date hereof, said interest to be paid
monthly on the 7th day of e3ch calendar month, the first such
payment to be due and payable on December 7, 1997. In addition
to the foregoing, Maker promises and agrees to pay the sum of
$165.00 as a late charge for each monthly installment of interest
which remains unpaid more than five (5) calendar days after its
due date aforesaid; said charge being as liquidated damages in
lieu of actual damages and not as a penalty. And further, said
Maker does hereby authorize and empower the Prothonotary or any
attorney of any court of record of Pennsylvania or elsewhere at
any time or times and without default to appear for and enter
jUdgment against it for the above principal slim and interest,
with costs of the action, with or without declaration or
complaint, release of all errors, without stay of execution, and
with fifteen per centum (15%) added for collection fees; and said
Maker also waives the right of inquisition on any real estate
which may be levied upon to collect the obligations evidenced by
this tlote and it vo luntar i 1 y condemns the same and author i zes the
EXHIBIT B
Prothonotary to enter said voluntary condemnation upon ~ny Writ
of Execution issued upon the judgment or judgments entared
hereon; and said Maker further agrees that any property, real,
personal or mixed, may be sold on, through and by any Writ of
Execution issued upon the judgment or jUdgments entered hereon;
and further waives and releases all reliet' from any and all
apprais~ment, stay or exemption laws of any state now in force or
hereafter enacted,
WAIVER
IN EXECUTING THIS PROMISSORY JUDGMENT NOTE, THE MAKER HEREBY
DECLARES THAT IT UNDERSTANDS THE TRANSACTION I AND KNOWINGLY AND
VOLUNTARILY WAIVES ITS RIGHTS TO CONTEST THE ENTRY OF JUDGMENT
AGAINST IT ON AND UNDER SAID NOTE, AND DOES HEREBY CONSENT TO THE
ENTRY OF JUDGMENT BY CONFESSION WITHOUT DEFAULT AS ABOVE PROVIDED
AND AUTHORIZED.
IN WITNESS WHEREOF, the undersigned Maker has caused this
Promissory Judgment Note to be executed by its President,
attested by its Secretary and impressed hereon its corporate seal
the day and year first written above intending to be legally
bound hereby.
ATTEST:
"~
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r'~ ~._~
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Secretary
KLP ENTERPRISES, INC.
....=\..,- -----.
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By --~~ ~
, resident
(SEAL)
(Corporate Seal)
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