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HomeMy WebLinkAbout03-0946ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 2 ! 3 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA oo3- c44 CIVIL TERM MORTGAGE FORECLOSURE NOTICE TO: John S. Vayanos 213 North Prince Street Shippensburg, Pennsylvania 17257 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 Two Liberty Avenue Carlisle, Pennsylvania 17013 (717) 249-3166 ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff Vo JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- d'~ CIVIL TERM MORTGAGE FORECLOSURE NOTICE TO: John S. Vayanos 213 North Prince Street Shippensburg, Pennsylvania 17257 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 Two Liberty Avenue Carlisle, Pennsylvania 17013 (717) 249-3166 ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- CIVIL TERM MORTGAGE FORECLOSURE COMPLAINT 1. The Plaintiff and Mortgagee is Orrstown Bank, a Pennsylvania corporation, with a place of business located at 77 East King Street, Shippensburg, Cumberland County, Pennsylvania. 2. The Defendant is John S. Vayanos, an adult individual, residing at 213 North Prince Street, Shippensburg, Cumberland County, Pennsylvania. 3. By Deed acknowledged on August 6, 1981, Dorothy O. Russell, by her attorney- in-fact, conveyed the premises described in Exhibit "A", attached hereto and made a part hereof, to John S. Vayanos and Evangeline Vayanos. This Deed was recorded in Cumberland County Deed Book "N", Volume 29, Page 61, et seq. all of which pages are incorporated herein by reference and made a part hereof. The premises are further described as being 213 North Prince Street, Shippensburg, Cumberland County, Pennsylvania. By Deed acknowledged on January 6, 1984, Eleanor M. Hargleroad and Kurt M. Hargleroad, conveyed the premises described in Exhibit "B", attached hereto and made a part hereof, to John S. Vayanos and Evangeline Vayanos. This Deed was recorded in the Cumberland County Deed Book "N", Volume 30, Page 233, et seq. all of which pages are incorporated herein by reference and made a part hereof. The premises being further described as 36 South Queen Street, Shippensburg, Cumberland County, Pennsylvania. By Order of Court dated January 8, 2001, Woodside, J., John S. Vayanos was made the sole owner of the properties described in Exhibits "A" and "B". A copy of said Order was recorded in the Cumberland County Record Book 665, Page 464, et seq. all of which pages are incorporated herein by reference and made a part hereof. 4. On or about, January 26, 2001, John S. Vayanos as Mortgagor made, executed and delivered a written Note secured by a Mortgage made, executed and delivered the same day to Plaintiff as Mortgagee on the premises described in Exhibits "A"and "B". This Mortgage was recorded in the Cumberland County Office of the Recorder of Deeds on January 31,2001, at Cumberland County Record Book 1667, Page 176, et. seq., all of which pages are incorporated herein by reference and made a part hereof. 5. A true and correct copy of the aforesaid Note is attached hereto and made a part hereof as Exhibit "C". A tree and correct copy of the aforesaid recorded Mortgage is attached hereto and made a part hereof as Exhibit "D". 6. Defendant defaulted under the terms and conditions of the Mortgage and Note by failing to make payment of remaining unpaid principal and interest due January 31, 2002. 7. Defendant is the present record owner of the premises described in Exhibits "A" and "B" and the real owner of the premises. 8. Plaintiff served Notice of Plaintiff's Intention To Foreclose on the real estate of 3 the Defendants, described in Exhibits "A" and "B" by registered mail on or about September 16, 2002, and served Notice Of Defendants Rights Under Act 91 of 1983 (Homeowners Emergency Mortgage Assistance Law) by registered mail on the same date. 9. Attached hereto and marked as Exhibit "E", are true and correct copies of the Act 91 Notice and Notice Of Plaintiff's Intention To Foreclose provided to Defendant. 10. Attached hereto as Exhibit "F', is the true and correct copy of the certified mail receipt. 11. Under the terms of the Mortgage and Note, if any monthly payment of principal and interest is not made when due or any other obligations of the Note or Mortgage is not met, then the entire indebtedness owing on the Mortgage and Note obligation shall become due and payable immediately at the declaration of Mortgagee. 12. Plaintiff as Mortgagee has exercised its option and declared the entire unpaid balance of principal and interest as immediately due and owing. 13. The following amounts are presently due on the said Mortgage and Note calculated to February 10, 2003: Principal Interest to February 10, 2003 (per diem $34.52) $198,837.50 $ 12,677.76 Reasonable attorneys fees fixed $ 9,941.87 by Plaintiff for purposes of this Complaint (5% of principal debt) Late charge $_ 9,941.87 TOTAL: $231,399.00 WHEREFORE, Plaintiff demands Judgment in Mortgage Foreclosure in the sum of 4 $231,399.00, plus interest thereafter, at the contract per diem from February 10, 2003, and costs against Defendant, Mortgagor and real owner, and seeks foreclosure and Sheriff's Sale of the mortgaged property in Exhibits "A" and "B" hereto. Respectfully submitted, O'BRIEN, BARIC & ~.R David A. Baric, Esquire I.D. # 44853 17 West South Street Carlisle, PA 17013 (717) 249-6873 Attorney for Plaintiff, Orrstown Bank dab.dir/orrstownbank/vayanos/foreclosure-pld VERIFICATION I, Betsy J. Smith, verify that the statements made in this Complaint are tree upon my personal knowledge or information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. § 4904 relating to unswom falsifications to authorities. Dated: d, o~ ~ .o :~ B/e-ets~ J. Smith, Collector Orrstown Bank Exhibit A Exhibit B ALL tl~a~ cercein lo~ of Rround vi~h the buildings and improvements thereon erected, situnte on ~he corner of Oran~.e and Queen $~ree~s in the Boroush of Shippensbur8. Cumberland County..Pennsylvania. bounded and. described as follows: ON ~he Ens~ by Queen Street; on the North by property formerly of Hrs. Emma Secrets. boy or formerly of Percy 14. Farner~ on the 14es~ by property formerly of John Boher. nov or formerly of 14111lam A.'Fnrner: on ~he South by Orense $~reet. Said havin~ e frontage on Queen $~reec of fifty (50) fee~. more or less. end an even depth of seven~y-five (75) fee~. more or less. KNOWN as No. 36 South Queen Street. ~A I(. 11114 Exhibit C PROMISSORY NOTE ._. References in Ihs shaded area are for Lender's use only and do not limit the applicability of this document to an~/particular loan or item. Borrower: JOHN S. VAYANOS (SSN: 192-50-9986) Lender: ORRSTOWN BANK 213 N. PRINCE ST. King Streel Office SHIPPENSBURG, PA 17257 P.O. Box 250 77 East King Street Shlppensburg, PA 17257 Principal Amount: $200,000.00 Initial Rate: 11.000% Date of Note: January 26, 2001 PROMISE TO PAY. I promise to pay to ORRSTOWN BANK ("Lender"), or order, In lawful money of the Unlled Stales of America, the principal amount of Two Hundred Thousand & 001100 Dollars ($200,000.00), togelher with interest on the unpaid principal balance from January 31, 2001, until paid In full. The interest rate will not Increase above 18.000%. PAYMENT. I will pay lhis loan on demand, or If no demand is made, in one principal payment of $200,000.00 plus Interesl on January 31, 2002. This paymenl due January 31, 2002, will. be for all principal and accrued interest not yet paid. In addition, I will pay regular monlhly paymenls of all accrued unpaid interest due as of each payment date, beginning February 28, 2001, with all subsequent Interest payments to be due on Ihe same day of each month after that. Interest on this Note is compuled on a 365/365 simple interest basis; that is, by applying the ratio of the annual interest tale over the number of days in a year (366 during leap years), multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. I will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. Unless otherwise agreed or required by applicable law, payments will be applied first to accrued unpaid interest, then to principal, and any remaining amount to any unpaid collection costs and late charges. VARIABLE INTEREST RATE. The interest rate on this Note is subjecl to change from time to time based on changes in an independent index which is the WALL STREET PRIME (the "Index"). The Index is not necessarily the lowest rate charged by Lender on its loans. If the Index becomes unavailable during Ihe term of this loan, Lender may designate a substilute index after notice to me. Lender will tell me lhe current Index rate upon my request. I understand that Lender may make loans based on other rates as well. The interest rate change will not occur more often than each day. The Index currently Is 9.000% per annum. The Inleresl rate to be applied lo the unpaid principal balance of this Nole will be at a rate of 2.000 percenlage points over the Index, adjusted If necessary for the maximum rate limitation described below, resulting in an initial rate of 11.000% per annum. Nolwithstanding any other provision of this Nole, the variable inlerest rate or rates provided for in this Nole will be subject to the following maximum rate. NOTICE: Under no circumstances will the interest rate on this Note be more than the lesser of 18.000% per annum or Ihe maximum rate allowed by applicable law. Unless waived by Lender, any Increase in the Interest rate will Increase the amounts of my interest payments. , PREPAYMENT. I may pay wilhout penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve me of my obligation to continue to make payments under the payment schedule. Rather, they will reduce the principal balance due. LATE CHARGE. If a payment is 16 days or more late, I will be charged 5.000% of the regularly scheduled payment. DEFAULT. I will be in default if any of the following hal~pens: (al I fail to make any payment when due. (b) I break any promise I have made to Lender, or I fail 1o comply with or to perform when due any other term, obligation, covenant, or condition contained in this Note or any agreement related to this Note, or in any other agreement or loan I have with Lender. (c) Any representation or statement made or furnished to Lender by me or on my behalf is false or misleading in any material respect either now or at the time made or furnished. (d) I die or become insolvent, a receiver is appoinled for any part of my property, I make an assignment for the benefit of creditors, or any proceeding is commenced either by me or against me under any bankruptcy or insolvency laws. (el Any creditor tries to take any of my properly on or in which Lender has a lien or securily interest. This includes a garnishment of any of my accounts with Lender. (fl Any of the events described in this default section occurs with respect 1o any guarantor of Ibis Note. If any default, other than a default in payment, is curable and if I have not been given a notice of a breach of the same provision of this Note within the preceding twelve (12) months, it may be cured (and no event of default will have occurred) if I, after receiving written notice from Lender demanding cure of such default: (al cure the default within fifteen (15) days; or (b) if the cure requires more than fifteen (15) days, immediately initiate steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continue and complete all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance on this Note and all accrued unpaid interest immediately due, and then I will pay that amounl. Lender may hire or pay someone else to help collect this Note if I do not pay. I also will pay Lender that amount. This includes, subject to any limils under applicable law, Lender's attorneys' fees and Lender's 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. If not prohibited by applicable law, I also will pay any court costs, in addition to all other sums provided by law. If judgment is entered in conneclion with this Note, interest will continue to accrue on this Note after judgment at the inlerest rate applicable to this Note at the time judgment is entered. This Note has been delivered to Lender and accepted by Lender in the Commonwealth of Pennsylvania. If lhere is a lawsuit, I agree upon Lender's request to submit to the jurisdiction of Ihe courts of Cumberland County, the Commonweallh of Pennsylvania. This Note shall be governed by and construed in accordance with the laws of lhe Commonwealth of Pennsylvania. RIGHT OF SETOFF. I grant to Lender a contractual security interest in, and hereby assign, convey, deliver, pledge, and transfer to Lender all my right, title and interest in and 1o, my accounts with Lender (whether checking, savings, or some other account), including without limitation all accounts held jointly wilh someone else and all accounts I may open in the future, excluding however all IRA and Keogh accounts, and all trust accounls for which the granl of a security interest would be prohibited by law. I authorize Lender, to the extent permitted by applicable law, to charge or seloff all sums owing on this Note against any and all such accounts. COLLATERAL. This Note is secured by a Mortgage dated January 26, 2001, to Lender on real property located in CUMBERLAND County, Commonwealth of Pennsylvania, all the terms and conditions of which are hereby incorporated and made a part of this Note. ~XHIBIT "C- 01-26-2001 PROMISSORY NOTE Page 2 L,oan No (Coritinued) "'-'" . GENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific default provisions or rights of Lender shall not preclude Lender's right 10 declare payment of this Nole on its demand. Lender may delay or forgo enforcing any of ils fights or remedies under this Note without losing them. I and any olher person who signs, guarantees or endorses this Nole, to the extent allowed by law, waive presentment, demand for payment, prolest and nolice of dishonor. Upon any change in the terms of this Nole, and unless olhen~vise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree Ihat Lender may renew or exlend (repeatedly and for any length of time) this loan, or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security inlerest in the collateral. All such parties also agree lhat Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. PRIOR TO SIGNING THIS NOTE, I READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE iNTEREST RATE PROVISIONS. I AGREE TO THE TERMS OF THE NOTE AND ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THE NOTE. THIS NOTE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: ....... JOHN S'~ V~)S ~ ............. Variable Rate. Single Pay. LASER PRO, Reg. U.S. Pat. & T.M. Off., Vet. 3.2gc (C) Concentrex 200 $ All rights reservecl. [PA-D20 F3.29a P3.29a 0?520CL.L N1 Exhibit D ORRSTOWN BA. NK P.U. Box 250 77 East King Street Shtppensburg, PA 1725T WHEN RECORDED MAIL TO: ORRSTOWN BANK P.O. Box 260 77 East King Street Shlppensburg, PA 17257 ROBERT ?. ZIECLER RECORDER OF DEEDS CUMBERLAND COUNTY- PA '81 JfiN 31 fill 11 31 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY MORTGAGE THIS MORTGAGE IS DATED JANUARY 26, 2001, between JOHN S. VAYANOS, whose address is 213 N. PRINCE ST., SHIPPENSBURG, PA 17257 (referred to below as "Grantor"); and ORRSTOWN BANK, whose address is P.O. Box 250, 77 East King Street, Shippensburg, PA 17257 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor grants, bargains, sells, conveys, assigns, transfers, releases, confirms and mortgages to Lender all of Grantor's right, title, and interest in and to the following described real property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all streets, lanes, alleys, passages, and ways; all easements, rights of way, all liberties, privileges, tenements, hereditaments, and appurtenances thereunlo belonging or anywise made appurtenant hereafter, and the reversions and t r water r his, watercourses and ditch rghts (including stock n utilities with ditch or irrigation rights); and all remainders with respect thereto; all wa e., .. .cj ................. ~ ,~q~fion all minerals o I gas geothermal and similar matters, located other rights, royalties, and profits relating [o tne real proper[y, inc~uum9 Wll. HUU~ mil, c~ , , ' in CUMBERLAND County, Commonwealth of Pennsylvania (the "Real Property"): SEE ATI'ACHED The Real Property or its address is commonly known as 213 N. PRINCE ST J36 S. QUEEN ST., SHIPPENSBURG, PA 17257. Grantor presently assigns to Lender all of Grantor's right, title, and interest in and to all leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. DEFINITIONS· The following words shall have the following meanings when used in this Mortgage. Terms not otherwise defined in this Mortgage shall have the meanings attributed to such terms in the Uniform Commercial Code. All references to dollar amounts shall mean amounts in lawful money of the United States of America. Grantor. The word "Grantor" means JOHN S. VAYANOS. The Grantor is the mortgagor under this Mortgage. Guarantor. The word "Guarantor" means and includes without limitation each and all of the guarantors, sureties, and accommodation parties in connection with the Indebtedness. Improvements. The word "Improvements" means and includes without limitation all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal and interest payable under the Note and any amounts expended or advanced by Lender to discharge obligations of Grantor or expenses incurred by Lender to enforce obligations of Grantor under this Mortgage, together with interest on such amounts as provided in this Mortgage. Lender. The word "Lender" means ORRSTOWN BANK, its successors and assigns. The Lender is the mortgagee under this Mortgage. Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender, and includes without limitation all assignments and security interest provisions relating to the Personal Property and Rents. Note. The word "Note" means the promissory note or credit agreement dated January 26, 2001, in the original principal amount of $200,000.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. The maturity date of this Mortgage is January 31, 2002. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE. Personal Property. The words "Personal Property'' mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including wilhout limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word "Property" means collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the property, interests and rights described above in the "Grant of Mortgage" section. Relaled Documents. The words "Related Documents" mean and include without limiiafion all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND (2) PERFORMANCE OF ALL OBLIGATIONS OF GRANTOR UNDER THIS MORTGAGE AND THE RELATED DOCUMENTS. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Grantor shall pay to Lender all amounts secured by this Mortgage as they become due, and shall strictly perform all of Grantor's obligations under this Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the following provisions: Possession and Use. Until in default, Grantor may remain in possession and control of and operate and manage the Property and collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. Hazardous Substances. The terms "hazardous waste," "hazardous substance," "disposal," "release," and "threatened release," as used in this Mortgage, shall have the same meanings as set forth in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Seclion 6901, et seq., or other applicable state or Federal laws, rules, or regulations adopted pursuant to any of the foregoing. The terms "hazardous waste" and "hazardous substance" shall also include, without limitation, petroleum and pelroleum by-products or any fraction thereof and asbestos. Grantor represents and warrants to Lender that: (a) During the period of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any hazardous waste or substance by any person on, under, about or from the Property; (b) Grantor has no knowledge of, or reason !o believe that there has been, except as previously disclosed 1o and acknowledged by Lender in writing, (i) any use, generation, manufacture, storage, treatment, disposal, release, or threatened release of any hazardous waste or substance on, under, about or from the Property by any prior owners or occupants of the Property or (ii) any aclual or threatehed litigation or claims of any kind by any person relating to such matters; and (c) Except as previously disclosed 1o and acknowledged by Lender in writing, (i) neither Grantor nor any tenant, contractor, agent or other aulhorized user of the Property shall use, generate, manufacture, store, treat, dispose of, or release any hazardous waste or substance on, under, about or from the Property and (ii) any such activity shall be Page 2 ~-- MORTGAGE 01'--26-2001 Loan No (Continued) ' , conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation those laws, regulations, and ordinances described above. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and, tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Mortgage. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for hazardous waste and hazardous substances. Grantor hereby (a) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws, and (b) agrees 1o indemnify and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release of a hazardous wasle or substance on the properties. The provisions of this section of lhe Mortgage, including the obligation to indemnify, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition-of any interest in the Property, whether by foreclosure or otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), soil, gravel or rock products without the pdor written consent of Lender. Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without the prior written consent of Lender. As a condition to the removal of any Improvemenls, Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvemedts of at least equal value. Lender's Right Io Enler. Lender and its agenls and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage. Compliance with Governmenlal Requiremenls. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property. Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest. Duly to Protect. Grantor agrees neither to abandon nor leave unattended the Property. Grantor shall do all other acts, in addilion to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property. DUE ON SALE - CONSENT BY LENDER. Lender may, at ifs option, declare immediately due and payable all sums secured by this Mortgage upon the sale or transfer, without the Lender's prior written consent, of all or any part of ihe Real Property, or any interest in the Real Property. A "sale or transfer" means the conveyance of Real Property or any right, title or interest therein; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding title io the Real Property, or by any other method of conveyance of Real Property interest. If any Grantor is a corporation, partnership or limited liability company, transfer also includes any change in ownership of more than twenty-five percent (25%) of the voting stock, partnership interests or limited liability company interests, as the case may be, of Grantor. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Pennsylvania law. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are a part of this Mortgage. Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of all liens having priority over or equal to the interest of Lender under this Mortgage, except for the lien of taxes and assessments not due, and except as otherwise provided in the following paragraph. Right To Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Grantor has notice of the filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient fo discharge the lien plus any costs and attorneys' fees or other charges that could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish 1o Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender ai any time a written statement of the laxes and assessmenis against the Property. Notice of Construction. Grantor shall nolify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, maferialmen's lien, or olher lien could be asserted on account of the work, services, or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory 1o Lender that Grantor can and will pay ihe coal of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage. Mainlenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Policies shall be written by such insurance companies and in such form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage from each insurer containing a stipulation that coverage will not be cancelled or diminished wiihoul a minimum of ten (10) days' prior written nolice lo Lender and not containing any disclaimer of the insurer's liability for failure to give such notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will nol be impaired in any way by any act, omission or default of Grantor or any other person. Should the Real Property at any time become located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up io the maximum policy limils set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of ihe loan. Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at its election, apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Granior shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Mortgage. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor. Unexpired Insurance at Sale. Any unexpired insurance shall inure lo the benefit of, and pass to, the purchaser of the Property covered by lhis Mortgage at any irustee's sale or other sale held under the provisions of lhis Morigage, or at any foreclosure sale of such Property. EXPENDITURES BY LENDER. If Grantor fails to comply with any provision of this Mortgage, or if any action or proceeding is commenced that would materially affect Lender's interests in the Property, Lender on Grantor's behalf may, but shall not be required to, take any action thai Lender deems appropriate. Any amount that Lender expends in so doing will bear interest at the rate provided for in the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses, at Lender's option, will (a) be payable on demand, (b) be added to ihe balance of the Note and be apportioned among and be payable with any installment payments to become due during either (i) the term of any applicable insurance policy or (ii) ihe remaining term of the Note, or (c) be treated as a balloon payment which will be due and payable at the Note's maturily. This Mortgage also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had. Grantor's obligation to Lender for all such expenses shall survive the entry of any mortgage foreclosure judgment. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Mortgage. TIIle. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encurpbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Mortgage, and (b) Grantor has the full right, power, and authority to execute and deliver this Mortgage ,o Lender. B0 1667 --. MORTGAGE ~ Page 3 01'-2.6-2001 · Loan No , (Continued) ' Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Lender under this Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, lo Lender such instruments as Lender may request from lime to time lo permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. CONDEMNATION. The following provisions relating to condemnalion of the Property are a part of this Mortgage. Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all acfual costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation. Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such steps as may be necessary lo defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause lo be delivered to Lender such instruments as may be requested by it from time to time to permit such participation. IMPOSITION OF TAXES, FEES AND CI~IARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges are a part of this Mortgage: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. Taxes. The following shall constitute taxes to which this section applies: (a} a specific tax upon this type of Mortgage or upon all or any part of the Indebtedness secured by this Mortgage; (b) a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (c) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note; and (d) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Grantor. Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Mortgage, this event shall have the same effect as an Event of Default (as defined below), and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor either (a) pays the lax before it becomes delinquent, or (b) contests the tax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surely bond or other security satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this Mortgage. Security Agreement. This instrument shall constitute a security agreement to the extent any of the Property constitutes fixtures or other personal property, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security Interesh Upon request by Lender, Grantor shall execute financing statements and take whatever other action is requesled by Lender 1o perfect and continue Lender's security interest in the Rents and Personal Property. In addition to recording this Mortgage in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interesl. Upon default, Grantor shall assemble the Personal Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender. Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party), from which information concerning the security interest granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code), are as stated on the first page of this Mortgage. FURTHER ASSURANCE; ADDITIONAL AUTHORIZATION. The following provisions relating to further assurances and additional authorization are a part of this Mortgage. Furlher Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause fo be made, executed or delivered, to Lender or lo Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, al such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates, and olher documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (a) the obligations of Grantor under the Note, this Mortgage, and the Related Documents, and (b) the liens and security interests created by this Mortgage as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or agreed to the contrary by Lender in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this paragraph. Additional Authorization. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably authorizes Lender to make, execute, deliver, file, record and do all olher things as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to in fhe preceding paragraph. It is understood that nothing set forth herein shall require Lender to take any such actions. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligafions imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any financing slatement on file evidencing Lender's security interest in the Rents and the Personal Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time. DEFAULT. Each of the following, at the option of Lender, shall constitule an event of default ("Event of Default") under this Mortgage: Default on Indebledness. Failure of Grantor to make any payment when due on the Indebtedness. Default on Other Payments. Failure of Grantor within the time required by this Mortgage to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. Compliance Defaulh Failure of Grantor to comply with any other ferm, obligation, covenant or condition contained in this Modgage, the Note or in any of the Related Documents. False Statemenls. Any warranty, representation or statement made or furnished to Lender by or on behalf of Grantor under this Mortgage, the Note or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished. Defective Collaleralizaflon. This Mortgage or any of the Related Documents ceases to be in full force and effect (including failure of any collateral documents to create a valid and perfected security interest or lien) at any time and for any reason. Death or Insolvency. The death of Grantor, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any assignment for the benefit of creditors, any lype of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor. Foreclosure, Forfeiture, etc. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Granlor or by any governmental agency against any of fha Property. However, this subsection shall not apply in the event of a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the foreclosure or forefeiture proceeding, provided that Grantor gives Lender written notice of such claim and furnishes reserves or a surety bond for the claim satisfactory to Lender. Breach of Other Agreement. Any breach by Grantor under the terms of any olher agreement between Grantor and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Granlor tp Lender, whether existing now or later. Events Affecting Guarantor. Any of lhe preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. Lender, at its option, may, but shall not be required to, permit the Guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure the Event of Default. Right to Cure. If such a failure is curable and if Grantor has not been given a notice of a breach of the same provision of this Mortgage within the preceding twelve (12) monlhs, it may be cured (and no Event of Default will have occurred) if Grantor, after Lender sends written notice demanding cure of such failure: (a) cures the failure within fifteen (15) days; or (b),if the cure requires more than fifteen (15) days, immediately ,/.78 .-' MORTGAGE "-" Page 4 01-26-2001 Loan No (Cor~tinued) ' , initiates steps sufficient to cure the failure and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default and at any time thereafter, Lender, at its option, may exercise any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law: Accelerate Indebtedness. Subject to applicable law, Lender shall have the right at its option without notice to Grantor to declare the entire Indebtedness immediately due and payable. UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under, the Uniform Commercial Code. Collect Rents. Lender shall have the right, without notice to Grantor, to take possession of the Property and collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness. In furtherance of this right, Lender may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably authorizes Lender to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person, by agent, or through a receiver. Appoint Receiver. Lender shall have the right to have a receiver appointed to lake possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointmenl of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. Deficiency Judgment. Lender may obtain a judgment for any deficiency remaining in the Indebtedness due to Lender after application of all amounls received from the exercise of the rights provided in this section. Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (a) pay a reasonable rental for the use of the Property, or (b) vacate the Property immediately upon the demand of Lender. Other Remedies. Lender shall have all other rights and remedies provided in this Mortgage or the Note or available at law or in equity. Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all right to have the property marshalled. In exercising its rights and remedies, Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time after which any private sale or other intended disposition of the Personal Property is to be made. Unless otherwise required by applicable law, reasonable nolice shall mean notice given at least ten (10) days before the time of the sale or disposition. Waiver; Election of Remedies. A waiver by any party of a breach of a provision of this Mortgage shall not constitute a waiver of or prejudice the party's rights otherwise to demand strict compliance with that provision or any other provision. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or take action to perform an obligation of Grantor under this Mortgage after failure of Grantor to perform shall not affect Lender's right to declare a default and exercise its remedies under this Mortgage. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and on any appeal. Whether or not any court action is involved, all reasonable expenses incurred by Lender that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest from the date of expenditure until repaid at the rate provided for in the Note. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, including attorneys' fees for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals and any anticipated post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appraisal fees, and title insurance, to the extenl permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law. NOTICES TO GRANTOR AND OTHER PARTIES. Unless otherwise provided by applicable law, any notice under this Mortgage shall be in writing, may be sent by telefacsimile (unless otherwise required by law), and shall be effective when actually delivered, or when deposited with a nationally recognized overnight courier, or, if mailed, shall be deemed effective when deposited in the United States mail first class, certified or registered mail, postage prepaid, directed to the addresses shown near the beginning of this Mortgage. Any party may change its address for notices under this Mortgage by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. All copies of notices of foreclosure from the holder of any lien which has priority over this Mortgage shall be sent to Lender's address, as shown near the beginning of this Mortgage. For notice purposes, Grantor agrees to keep Lender informed at all limes of Grantor's current address. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: Amendments. This Mortgage, together with any Relaled Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Mortgage. No alteration of or amendment to this Mortgage shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Applicable Law. This Mortgage has been delivered Io Lender and accepted by Lender in the Commonwealth of Pennsylvania. This Mortgage shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to interpret or define th~ provisions of this Mortgage. Merger. There shall be no merger of the interest or estate created by this Mortgage with any other interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. Severabillty. If a court of competent jurisdiction finds any provision of this Mortgage to be invalid or unenforceable as to any person or circumstance, such finding shall not render that provision invalid or unenforceable as lo any other persons or circumstances. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Mortgage in all other respects shall remain valid and enforceable. Successors and Assigns. Subject to the limitations stated in lhis Mortgage on transfer of Grantor's interest, this Mortgage shall be binding upon and inure to the benefit of the parties, their heirs, personal representatives, successors and assigns. If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Mortgage and the Indebtedness by way of forbearance or extension without releasing Grantor from lhe obligations of this Mortgage or liability under the Indebtedness. Time Is of Ihe Essence. Time is of the essence in the performance of this Mortgage. Waivers and Consents. Lender shall not be deemed to have waived any rights under this Mortgage (or under the Related Documents) unless such waiver is in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by any party of a provision of this Mortgage shall not constitute a waiver of or prejudice the party's right otherwise to demand strict compliance with that provision or any other provision. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or any of Granlor's obligations as to any future transactions. Whenever consent by Lender is required in this Mortgage, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required. 0'~-26--2001 MORTGAGE '"'" Page 5 'Loan No . (Coqtinued) . , GRANd'OR ~CKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. Signed, acknowledged and delivered in the presence of: Witness X Witness CERTIFICATE OF RESIDENCE I hereby certify, that the precise address of the modgagee, ORRSTOWN BANK, ,l~rein is as follows: P.O. Box 250, 77 East King Street, Shippensburg, PA 17257 il~ ) ~ / ) ss the~7'// day of ~/~"/~/ ,20 .~.-/,beforeme"~/--/;~?/_~ ./~' b~b,/ih~e'~f~o~n ,lhe On this, personally appeared JOH)I~ S. V.~YANOS, known to me (or s~i~f~a"~t~e~ly proven) o e p whose name is ~nt, and acknowledge~that he or she executed the same for th.L~b~s therein containeJ;t.--.., ~I~ set mY hand and official seal' ~. ~ '/~// . end the S ate of Nolari,~l Seal Peggy A. Gilson, Notary Public Stflpl)m~,'~urg Born, Cumberland Countyl My Commission Expires Aug. 31, 2004 73.29c (C) Concentrex 2001 AIl rights reserved. IPA-G03 P3.29a 07520CL'L N] Member, Pennsylvania Assoc~Uofl of Nolarle6 BOOKI667 PAG~ ,~.'.'.t~ Exhibit E O LSTOWN JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA, 17257-1319 Via Certified Mail Return Receipt Requested and Regular U. S. Mail ACT 91 NOTIC TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE This is an official notice that the mortqa_qe on your home is in default, and the lender intends to foreclose. Specific information about the nature of the default is provided in the attached paqes. The HOMEOWNER'S EMERGENCY MORTAGE ASSISTANCE PROGRAM (HEMAP) may be able to help to save your home. This Notice explains how the pro.qram works. To see if HEMAP can help, you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 30 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with you whe, you meet with the Counselin~ A~encv? The name, address and phone number of Consumer Credit Counseling A_clencies servin.q your County are listed at the end of this Notice. If you have any questions, you may call the Pennsylvania Housing Finance Agency toll free at 1-800-342-2397. (Persons wi[h impaired hearing can call (717) 780-1869). This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer. PO Box 250 · Shippensburg, PA 17257 * (717) 532-6114 · (717) 532-4143 Fax · www. orrstown.com LA NOTIFICACION EN ADJUNTO ES DE SUMA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VlVlENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICACION OBTENGA UNA TRADUCCION INMEDITAMENTE LLAMANDO ESTA AGENCIA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENClONADO ARRIBA. PUED-~ S--~[LEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. HOMEOWNER'S NAME(S): PROPERTY ADDRESS: JOHN S. VAYANOS 213 NORTH PRINCE STREET AND 36 S. QUEEN ST., SHIPPENSUBRG, PA. 17257 LOAN ACCT. NO.: 26364709001 ORIGINAL LENDER: ORRSTOWN BANK CURRENT LENDER/SERVICER: ORRSTOWN BANK HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE WHICH CAN SAVE YOUR HOME FROM FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE ACT OF 1983 (THE "ACT"), YOU MAY BE ELIGIBLE FOR EMERGENCY MORTGAGE ASSISTANCE: · IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL, · IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YOUR MORTGAGE PAYMENTS, AND · IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURE - Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice. During that time you must arrange and attend a "face-to-face" meeting with one of the consumer credit counseling agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHIN THE NEXT (30) DAYS. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE, YOU MUSI BRING YOUR MORTGAGE UP TO DATE. THE PART OF THIS NOTICE CALLED "HOW TO CURL YOUR MORTGAGE DEFAULT", EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. CONSUMER CREDIT COUNSELING AGENCIES - If you meet with one of the consumer credit counseling agencies listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names, addresses and telephone numbers of desiqnated consumer credit counselinq agencies for the county in which the property is located are set forth at the end of this Notice. It is only necessary to schedule one face-to-face meeting. Advise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE - Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default.) If you have tried and are unable to resolve this problem with the lender, you have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program. To do so, you mu~t fill out, sign and file a completed Homeowner's Emergency Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. Your application MUST be filed or postmarked within thirty (30) days of your face-to-face meeting. YOU MUST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO SO OR IF YOU DO NOT FOLLOW THE OTHER TIME PERIODS SET FORTH IN THIS LETTER, FORECLOSURE MAY PROCEED AGAINST YOUR HOME IMMEDIATELY AND YOUR APPLICATION FOR MORTGAGE ASSISTANCE WILL BE DENIED. AGENCY ACTION - Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have filed bankruptcy you can still apply for Emergency Mortgage Assistance.) HOW TO CURE YOUR MORTGAGE DEFAULT (Bring it up to date). NATURE OF THE DEFAULT - The MORTGAGE debt held by the above lender on your property located at: 213 NORTH PRINCE STREET & 36 SOUTH QUEEN STREET, SHIPPENSBURG, PA. 17257. IS SERIOUSLY IN DEFAULT because YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due:JANUARY 31, 2002 --$206,110.75. Other charges (explain/itemize): LATE FEES--S0.0 TOTAL AMOUNT PAST DUE: $ 206~110.75 HOW TO CURE THE DEFAULT - You may cure the default within THIRTY (30) DAYS of the date of this $206~110.75. ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash, cashier's check, certified check or money order made payable and sent to: ORRSTOWN BANK ATTN: BETSY SMITH P.O. BOX 250 77 EAST KING STREET SHIPPENSBURG, PA 17257 IF YOU DO NOT CURE THE DEFAULT - If you do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to exercise its rights to accelerate the mortga_cle debt. This means that the entire outstanding balance of this debt will be considered due immediately and you may lose the chance to pay the mortgage in monthly installments. If full payment of the total amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorneys to start legal action to foreclose upon your mortqaqe I~rol)ert¥. IF THE MORTGAGE IS FORECLOSED UPON - The mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attorneys, but you cure the delinquency before the lender begins legal proceedings against you, you will still be required to pay the reasonable attorney's fees that were actually incurred, up to $50.00. However, if legal proceedings are started against you, you will have to pay all reasonable attorney's fees actually incurred by the lender even if they exceed $50.00. Any attorney's fees will be added to the amount you owe the lender, which may also include other reasonable costs. If you cure the default within the THIRTY (30) DAY period, you will not be required to pay attorney's fees. OTHER LENDER REMEDIES - The lender may also sue you personally for the unpaid principal balance and all other sums due under the mortgage. RIGHT TO CURE THE DEFAULT PRIOR TO SHERIFF'S SALE - If you have not cured the default within the THIRTY (30) DAY period and foreclosure proceedings have begun, you still have the right to cure the default and prevent the sale at any time up to one hour before the Sheriff's Sale. You may do so by paying the total amount then past due, plus any late or other charges then due, reasonable attorney's fees and costs connected with the foreclosure sale and any other costs connected with the Sheriff's Sale as specified in writing by the lender and by performing any other requirements under the mortgage. Curing your default in the manner set forth in this notice will restore your mortgage to the same position as if you had never defaulted. EARLIEST POSSIBLE SHERIFF'S SALE DATE - It is estimated that the earliest date that such a Sheriff's Sale of the mortgaged property could be held would be approximately 5 months from the date of this Notice. A notice of the actual date of the Sheriff's Sale will be sent to you before the sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDER: Name of Lender: Orrstown Bank Address: Phone Number: Fax Number: Contact Person: P.O. Box 250, 77 East Kin.q Street Shippensburg, PA 17257 (717) 530-2661 (717) 532-4099 Betsy J. Smith EFFECT OF SHERIFF'S SALE - You should realize that a Sheriff's Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriff's Sale, a lawsuit to rerhove you and your furnishings and other belongings could be started by the lender at any time. ASSUMPTION OF MORTGAGE - You MAY NOT sell or transfer your home to a buyer or transferee who will assume the mortgage debt, provided that all the outstanding payments, charges and attorney's fees and costs are paid prior to or at the sale and that the other requirements of the mortgage are satisfied: YOU MAY ALSO HAVE THE RIGHT: · TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT OR TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT. · TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF. · TO HAVE THOE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED. IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE THAN THREE TIMES IN ANY CALENDAR YEAR.) · TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS. · TO ASSERT ANY OTHER DEFENCE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER. · TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. Sincerely, BETSY J. SMITH, COLLECTION DEPT. 0 Certified Fee Return Receipt Fee (Endorsement Required) Restricted Delivery Fee (Endorsement Required) Total Postage & Fees Postmark Here · Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Pdnt your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: / ~-~./~/? A. Received by (Please Pdnt Clearly) B. D.~te of Delivery · C. Signature [] Agent X [] Addressee D. Is delivery address different from item 17 [] Yes If YES, enter delivery address below: [] No .~ervice Type Certified Mail [] Express Mail [] Registered [] Return Receipt for Merchandise I-~ Insured Mail [] C.O.D. 4. Restricted Delivery? (Extra Fee) [] Yes .2. Article Number (Copy from service label) 7001 2510 0005 9176 0509 PS Form 3811, July 1999 Domestic Return Receipt 102595-00-M-0952 ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- 946 CIVIL TERM MORTGAGE FORECLOSURE PRAECIPE TO ATTACH AS EXHIRIT "F" TO COMPLAINT TO THE PROTHONOTARY: Please attach Exhibit "F" to above-referenced Complaint on behalf of the Plaintiff, Orrstown Bank, 77 East King Street, Shippensburg, Pennsylvania 17257, to the Defendant, John S. Vayanos, 213 North Prince Street, Shippensburg, Pennsylvania 17257. Date: David A. Baric, Esquire I.D. #44853 17 West South Street Carlisle, PA 17013 (717) 249-6873 Attorney for Plaintiff, Orrstown Bank ".~ C~ EXHIBIT SHERIFF'S RETURN - REGULAR CASE NO: 2003-00946 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND COMMERCE BANK VS VAYANOS JOHN S BRYAN WARD , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon VAYANOS JOHN S the PLAINTIFF , at 1834 00 HOURS, on the 10th day of March at 213 NORTH PRINCE STREET 2003 SHIPPENSBURG, PA 17257 JOHN VAYANOS by handing to a true and attested copy of COMPLAINT - MORT FORE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge 18 00 13 80 00 10 00 00 41 80 Sworn and Subscribed to before me this / 7{ ~ day of /~ Pro~nor~ot ary /7- So Answers: R. Thomas Kline ~ - - ' 03/ /2003 OBRIEN BARIC SCHERER By: /~Sheriff ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff Vo JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant · IN THE COURT OF COMMON PLEAS OF · CUMBERLAND COUNTY, PENNSYLVANIA : : · NO. 2003-946 CIVIL TERM : : : : : : · MORTGAGE FORECLOSURE ANSWER TO COMPLAINT AND NOW, Defendant, John S. Vayanos, by and through his counsel, Karl E. Rominger, Esquire of the Law Firm ofRominger & Bayley and files the within Answer to Complaint and in support thereof sets out the following: 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Admitted. 6. Denied and strict proof of the same is demanded at trial. By way of further answer, Defendant has made payments on said loan. 7. Admitted. 8. Admitted. 9. Admitted. 10. Admitted. 11. 12. provided. 13. Admitted. Insomuchas it is a conclusion of law and no answer is required, no answer is Denied and strict proof of the same is demanded at trial. WHEREFORE, Defendant demands judgment in his favor. Date: April 7, 2003 Respectfully submitted, ROMINGER & BAYLEY IC~I E. Rmninger, Esquire 155 South Hanover Street Carlisle, PA 17013 (717) 241-6070 Supreme Court ID # 81924 Attorney for Defendant ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff Vo JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant · IN THE COURT OF COMMON PLEAS OF · CUMBERLAND COUNTY, PENNSYLVANIA : : · NO. 2003-946 CIVIL TERM MORTGAGE FORECLOSURE VERIFICATION KARL E. ROMINGER, ESQUIRE, states that he is the attomey for, Defendant in this action; that he makes this affidavit as attorney because he has sufficient knowledge or information and belief, based upon his investigation of the matters averred or denied in the foregoing document; and that this statement is made subject to flae penalties of 18 Pa. C.S. Pa.C.S. §4904, relating to unsworn falsification to authorities. Date: April 7, 2003 Karl E. Rominger, Esquire Attorney for Defendant ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff Vo JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant · IN THE COURT OF COMMON PLEAS OF · CUMBERLAND COUNTY, PENNSYLVANIA · NO. 2003-946 CIVIL TERM ; · MORTGAGE FORECLOSURE CERTIFICATE OF SERVICE I, Karl E. Rominger, Esquire, attorney for Defendant, do hereby certify that I this day served a copy of the Answer to Complaint upon the following by depositing same in the United States Mail, first class postage prepaid, addressed as follows: David A. Baric, Esquire 17 W. South Street Carlisle, PA 17013 Dated: April 7, 2003 Karl E. Rominger, Esquire Attorney for' Defendant ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff Vo JOHN S. VAYANOS 213 NORTH PR1NCE STREET SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003-946 CIVIL TERM MORTGAGE FORECLOSURE PRAECIPE TO ENTER APPEARANCE TO THE PROTHONOTARY: Please enter my appearance for the Defendant in the above captioned action. Date: April 7, 2003 Respectfully submitted, ROMINGER & BAYLEY Karl E. Rominger, Esquire 155 South Hanover Street Carlisle, PA 17013 (717) 241-6070 Supreme Court ID # 81924 Attorney for Defendant ORRSTOWN BANK IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA 03-946 CIVIL TERM JOHN S. VAYANOS IN RE: PRETRIAL CONFERENCE ORDER OF COURT AND NOW, May 6, 2003, the above-captioned case is listed for pre-trial conference on June 18, 2003; counsel to follow the usual briefing schedule. The date for the trial will be decided at the pre-trial conference. By the Court, David A, Baric, Esquire 17 West South Street Carlisle, PA 17013 For the Plaintiff Karl E. Rominger, Esquire 155 South Hanover Street Carlisle, PA 17013 For the Defendant P.J, Court Administrator JUN i 6 ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : NO. 2003-946 CIVIL TERM : : MORTGAGE FORECLOSURE  ORDER OF COURT lA ~[ ~ day o£ ~ ,2003, due to a scheduling AND NOW, this conflict of Karl E. Rominger, Esquire and upon the agreement of the parties, the pretrial conference which was previously scheduled for June 18, 2003, at 8:30 a.m. in Courtroom #3 for the above captioned case, is now rescheduled to June 23, 2003, at 11:30 a.m. in Courtroom #3, at thc Cumberland County Courthouse in Carlisle, PA. Distribution: ~1 E. Rominger, Esquire i~id A. Baric, Esquire ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- 946 CIVIL TERM MORTGAGE FORECLOSURE PLAINTIFF'S PROPOSED FINDINGS OF FACT AND CONCLUSIONS OF LAW NOW, comes Plaintiff, Orrstown Bank, by and through its attorneys, O'BRIEN, BARIC & SCHERER, and files the within Proposed Findings of Fact and Conclusions of Law and, in support thereof, sets forth the following: FINDINGS OF FACT 1. Plaintiff, Orrstown Bank, is a Pennsylvania corporation with its principal place of business located at 77 East King Street, Shippensburg, Cumberland County, Pennsylvania. 2. Defendant, John S. Vayanos, is an adult individual who resides at 213 North Prince Street, Shippensburg, Cumberland County, Pennsylvania. 3. By deed dated August 6, 1981, Dorothy O. Russell, by her attorney-in-fact, conveyed the premises described in Exhibit "A", attached hereto and made a part hereof, to John S. Vayanos and Evangeline Vayanos. This property is known as 213 North Prince Street, Shippensburg, Cumberland County, Pennsylvania. This deed was recorded in Cumberland County Deed Book "N", Volume 29, Page 61, et seq. 4. By deed dated January 6, 1984, Eleanor M. Hargleroad and Kurt M. Hargleroad conveyed the premises described in Exhibit "B", attached hereto and made a part hereof, to John S. Vayanos and Evangeline Vayanos. This property is known as 36 South Queen Street, Shippensburg, Cumberland County, Pennsylvania. This deed was recorded in Cumberland County Deed Book "N", Volume 30, Page 233, et seq. 5. By Order of Court dated January 8,2001, Woodside, J., John S. Vayanos was made the sole owner of the properties described in Exhibits "A" and "B". A copy of said Order was recorded in Cumberland County Record Book 665, Page 464, et seq. which Order is hereby incorporated. 6. On January 26, 2001, Orrstown Bank loaned to John S. Vayanos the sum of $200,000.00. 7. A true and correct copy of the Note executed by John S. Vayanos in connection with the loan of January 26, 2001 is attached hereto as Exhibit "C" and is incorporated. 8. A true and correct copy of the Mortgage executed by John S. Vayanos in connection with the loan of January 26, 2001 is attached hereto as Exhibit "D" and is incorporated. The Mortgage was recorded in the Cumberland County Office of the Recorder of Deeds on January 31, 2001 at Cumberland County Record Book 1667, Page 176, et seq. 9. The Note set forth, in relevant part, the following payment terms: I will pay this loan on demand, or if no demand is made, in one principal payment of $200,000.00 plus interest on January 31, 2002. This payment due January 31, 2002 will be for all principal and accrued interest not yet paid. 10. Demand has been made by Orrstown Bank on John S. Vayanos to pay the debt owed pursuant to the Note and Mortgage. 11. Plaintiff served a Notice of Intention to Foreclose on the real estate of Defendant as described in Exhibits "A" and "B" by registered mail on or about September 16, 2002 and served Notice of Defendants Rights Under Act 91 of 1983 by registered mail on the same date. 12. The Note provides, in relevant part, as follows: Late Charge. Ifa payment is 16 days or more late, I will be charged 5.000% of the regularly scheduled payment. Lender's Rights .... Lender may hire or pay someone else to help collect this Note ifI do not pay. I will also pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings .... CONCLUSIONS OF LAW John S. Vayanos is indebted to Orrstown Bank under the terms of the Note and Mortgage. 2. This Court has jurisdiction over the parties and the matters set forth in the complaint in this action in mortgage foreclosure. 3. John S. Vayanos is the sole record and real owner of the properties known as 213 North Prince Street and 36 South Queen Street, Shippensburg, Cumberland County, Pennsylvania. with a per diem of $34.52 as follows: reasonable. 5. John S. Vayanos owes Orrstown Bank the sum of $236,473.44 to July 7, 2003 Principal Interest Reasonable attorney fees Late Charge TOTAL: $198,837.50 $17,752.20 $9,941.87 $9,941.87 $236,473.44 The attorney fees set forth at paragraph 3 of these Conclusions of Law are Orrstown Bank is emitled to a judgment in mortgage foreclosure in its favor and against John S. Vayanos and may seek foreclosure and Sheriff's Sale of the mortgaged properties identified in Exhibits "A" and "B". 6. John S. Vayanos has defaulted under the terms of the Note and Mortgage. 7. Orrstown Bank is the holder of the mortgage interest in the real property. 8. The mortgage recorded in Cumberland County Record Book 1667, at page 176, et seq. gives Orrstown Bank a security interest in the properties identified in Exhibits "A" and "B". Respectfully submitted, David A. Baric, Esquire I.D. # 44853 17 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Orrstown Bank dab.dir/or rstown/vayanos/findingsoffact.st m ~ that certain tract o[ land With the buildings thereon erected, SitUate in ShlPpensburg Township, Cumberland County, Pennsylvania, bounded and described as ~at a Point l~ Nor- 'n~\Str~et, formerly known a-- n u0 degrees East 26.5 perches to a Post; thence by lands formerly of said 'Emily Jamison and John by land formerly of Emzly J~l~, .vw et ~ar~orie ~ .... ~-~ normal AVenue. ,~ IIosfeld, now or ~Orme~ly of. George ~. IIosfeld, NorLh 35 degrees Nest 21.1 Perches, more or less, to an iron pin on line of land formerly of Hary C. llarper, et al, now or fOrmerly W. A. Addam$~ thence by the Same SOuth 58 degrees West 367 feet, mOre or less, to said north Prir~ce Street~ thence by said Street SOUth 26 1/2 degrees East 345 feet~ mOre or less, to the first mentioned point and Place o~ BEGINNJNGo ~~ a't~act of land which IlIlton A. RUSsell and Dorothy O. RUSsell, his Wife, by deed dated ~anuacy 21, 1948~ and recorded in Cumberland County D~ed Book "S", Volume 13, Page 500, granted and COnVeyed to George ~. Ilos:eld and Hat,erie E. Ilosfeld~ his Wife. ~ In ~ront on North Prince Street 92-3/4 feet and extending in even width of 93 [eet~ more o Russell and D~rothy O. Rus r less; RESERV sell, his wif ~ . ~Unto the Said IItlton A. liberty and right at all times hereafter and fOrever to have and use the existing e, their heirs and assigns, the full free driveway or passageway extending diagonally in a ~Outhwesterly direction across the western portion of the said lot hereby granLed for any and all purposes COnnected W~th the use and Occupation of the RUSSells, other land ad~oining the lot hereby granted. TRACT I 2 · AL.~L that certain tract of land known as P~rcel "A", SitUate in Shlppensbucg Township, Cumberland County, Pennsylvania, bounded and described as foilows:~ ~ at an ~o~ ~[~aO~n t~_~_~u~wester~ Sldeof a 14 f°ot public nile' of lend fOrmerly i m Ad~o,,,=; ~nence With the Southw~-~ . Y at line alley North 53 degrees 1 minute 50 seconds East 173.0~ feet to a Spike at line .... rn Sxde of said public land of The I{est End Land COmpany of ShipPensburg$ thence with the same South 42 degrees 20 minutes East 276.5~ feet to an Iron pin st line of Parcel '8' of The West End Land Companyof Shippensburg, about to be conveyed to Sara ~arjorle Nosfeld and CharlOtte Jeanne Tarpy; thence with the same SOUth 55 degrees 43 minutes 27 Seconds Charlotte Jeanne Tarpy; thence continuing with the same South 55 degreee 43 minutes 2? SeCOnds West 50 feet to an Iron pin at line of land of llilton A. Russell; thence with the same North 37 degrees 2 minutes 17 Seconds West 255.15 feet to an Iron pin at line of land formerly of William A~dams; thence With.the same North l? degrees 2 minutes 1~ Seconds ~eat 10.82 feet to an iron pin on the Southwestern Side 14 foot Public alley, the first mentlonedpolnt and place of BEGINNING. CONTAINIUG 50,233.32 Sguar~ feet or 1.153 Brindle ASSOciates, acres eccordln~ to Survey and draft of William A. ~.S., dated February 6, 1975 and revised August 25, ~ belne known as 213 North P~lnce Street, Shlppensburg Township, Shippensburg, Penna. ' ALL that cotters lot of 8round wlth the but~atngs and improvement8 thereon orocted~ ottunte on the corner of Orange and Queen Streeto in the borough of Shlppenshur$, Cumberland County,.Penneylvonte, bounded and describe4 aa follovo: ON the Esot by Queen Street; on the ~orth by property formerly of Mrs. Emma Soarers, how or formerly of Percy W. Forner; on the West by property formerly of 3ohs E. ~oher, now or formerly of W~lltom A.' Forest; on the South by Orense Street. Sera lot hnvinR a fronte&e on Queen Street of fifty (50) feet, more or leon, end an even depth of oeventy-five ~7~) feet, more or leon. KNOWN as No. 36 South Queen Street. I ! PROMISSORY NOTE Prilicipal ~. Loan:Petal:: i Maturity LOa~N0 ::Ca COllateralI '=ACcount Offcer ntials $200,0~00, , ,, ~ J'01~26&2001 101~31-2002I, , , ,, , , , , , : ii, ,, References in the shaded area are for Lender's use only and do not fimit Ihe applicability of Ihis document to any particular loan or item, Borrower: JOHN S. VAYANOS (SSN: 192-50-9986) 213 N. PRINCE ST. SHIPPENSBURG, PA 17257 Lender: ORRSTOWN BANK King Street Office P.O. BOX 250 77 East King Street Shlppensburg, PA 17257 Principal Amount: $200,000.00 Initial Rate: 11.000% Date of Note: January 26, 2001 PROMISE TO PAY. I promise lo pay to ORRSTOWN BANK ("Lender"), or order, In lawful money of the Unlled States of America, the principal amount of Two Hundred Thousand & 00/100 Dollars ($200,000.00), together with interest on the unpaid principal balance from January 31, 2001, until paid In full. The interest rate will not Increase above 16.000%. PAYMENT. I will pay this loan on demand, or if no demand is made, Irt one principal payment of $200,000.00 plus interest on January 31, 2002. This payment due January 31, 2002, w . be for all principal and accrued interest not yet paid. In addition, I will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning February 28, 2001, with all subsequent Inlerest payments Io be due on the same day of each month after lhat. tnteresl on this Nole is computed on a 365~365 simple interest basis; that is, by applying Ihe ratio ol lhe annual inlerest rate over the number of days in a year (366 during leap years), multiplied by the outslanding principal balance, mulliplied by the actual number ot days lhe principal balance is outstanding. I wilt pay Lender at Lender's address shown above or at such olher place as Lender may designale in writing. Unless otherwise agreed or required by applicable law, payments will be applied first to accrued unpaid interest, ~hen to principal, and any remaining amount lo any unpaid collection cosls and lale charges. VARIABLE INTEREST RATE. The interest rate on Ihis Nole is subject to change from time to time based on changes in an independent index which is the WALL STREET PRIME (the "index"). The Index is not necessarily the lowest rate charged by Lender on its loans. If lhe Index becomes unavailable during the term of Ihis loan, Lender may designate a substitute index after notice to me. Lender will tell me the current Index rate upon my request. I understand that Lender may make loans based on other rates as well. The inleresi rate change will not occur more often than each day. The Index currently Is 9.000% per annum. The Interest rate to be applied to the unpaid principal balance of this Note will be at a rate of 2,000 percentage points over the Index, adjusted if necessary for the maximum rate Ilmilation described below, resulting in an initial rate of 11.000% per annum. Notwithstanding any other provision of this Note, the variable interest rate or rates provided for in this Note will be subject to the following maximum rate. NOTICE: Under no circumstances will the interest rate on this Note be more than the lesser of 18.000% per annum or the maximum rate allowed by applicable law. Unless waived by Lender, any Increase In the Interest rate will increase the amounts of my interest payments. , PREPAYMENT. I may pay without penalty all or a portion of Ihe amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve me of my obligation fo c(~nSnue to make payments under the payment schedule. Rather, they will reduce the principal balance due. LATE CHARGE. If a paymenl is 16 days or more late, I will be charged 5,000% of lhe regularly scheduled payment. DEFAULT. I will be in defaull if any of the following happens: (a) I fail to make any payment when due. (b) I break any promise I have made to Lender, or I fail Io comply with or to perform when due any other term, obligalion, covenant, or condition contained in this Note or any agreement related to this Note, or in any other agreemenl or loan I have with Lender. (c) Any representation or statement made or furnished to Lender by me or on my behalf is false or misleading in any material respect either now or at the time made or furnished. (d) I die or become insolvenl, a receiver is appointed for any part of my property, I make an assignment for the benefil of creditors, or any proceeding is commenced either by me or against me under any bankruptcy or insolvency laws. (e) Any creditor tries lo take any of my property on or in which Lender has a lien or sscurily interest. This includes a garnishmenl of any of my accounls wilh Lender. (t) Any of the events described in this defaull section occurs with respect Io any guarantor of this Note. If any defaull, other than a default in paymenl, is curable and if I have not been given a notice of a breach of lhe same provision of this Nolo wiihin the preceding Iwelve (12) months, it may be cured (and no event of default will have occurred) if I, after receiving written notice from Lender demanding cure of such default (a) cure lhe default wilhin fifteen (15) days; or (b} if Ihe cure requires more than fifleen (15) days, immediately iniliate steps which Lender deems in Lender's sole discretion to be sufficienl to cure the default and thereatter continue and complete all reasonable and necessary steps sufficienl to produce compliance as soon as reasonably practical LENDER'S RIGHTS. Upon default Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance on this Note and all accrued unpaid interest immediately due, and Ihen I will pay Ihat amount. Lender may hire or pay someone else Io help collect Ihis Nolo if I do not pay. I also will pay Lender that amount. This includes, subject to any limits ,under applicable law, Lender's aitorneys' fees and Lender's legal expenses whether or not Ihere is a lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings (including eftorts to modify or vacate any aulomalic stay or injunclion), appeals, and any anticipated post-judgment collection services. If not prohibited by applicable law, I also will pay any court costs, in addition to all other sums provided by law. If judgment is enlered in conneclion with this Note, inlerest will continue to accrue on this Note after judgment al Ihe interest rate applicable to Ihis Nole at the time judgment is entered. This Note has been delivered to Lender and accepted by Lender in the Commonwealth of Pennsylvania. If lhere is a lawsuit, I agree upon Lender's request Io submit Io the jurisdiction of the courts of Cumberland County, the Commonwealth of Pennsylvania. This Note sha~l be governed by and construed in accordance with lhe laws of the Commonwealth of Pennsylvania. RIGHT OF SETOFF. I grant lo Lender a contractual security interest in, and hereby assign, convey, deliver, pledge, and transfer to Lender all my right, title and interest in and to, my accounts with Lender (whether checking, savings, or some olher account), including without llmltalion all accounts held jointly wilh someone else and all accounls I may open in Ihe future, excluding however all IRA and Keogh accounls, and all trus~ accounts for which the grant of a security interest would be prohibited by law. I aulhodze Lender, to the extent permitted by applicable law, lo charge or seloft all sums owing on Ihis Note against any and all such accounts. COLLATERAL. This Note is secured by a Mortgage dated January 26, 2001, 1o Lender on real property Iocaled in CUMBERLAND Courtly, Commonwealth ol Pennsylvania, all Ihe terms and conditions of which are hereby incorporaled and made a part o1 Ibis Note. EXHIBIT "C" 01-26-2001 PROMISSORY NOTE Page 2 Loa'n No , , (Continued) '~' , ' GENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific default provisions or dghls of Lender shall nol preclude Lender's righl to declare paymenl of this Note on its demand. Lender may delay or torgo enforcing any ol ils rights or remedies under this Note without losing them. I and any other person who signs, guarantees or endorses lhis Nole, to the extent allowed by law, waive presentment, demand for payment, prolesl and notice of dishonor. Upon any change in the terms ot this Nole, and unless otherwise expressly stated in writing, no party who signs Ihis Note, whether as maker, guaranlor, accommodation maker or endorser, shall be re~eased h'om liability. Ail such parties agree that Lender may renew or extend (repeatedly and tot any length o! time) this loan, or release any party or guarantor or coltateral; or impair, fail to realize upon or pedect Lender's security interest in Ihe collateral All such padies also agree that Lender may modity Ihis loan without the consent of or notice to anyone olher than the pady with whom the modification is made. PRIOR TO SIGNING THIS NOTE, I READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. I AGREE TO THE TERMS OF THE NOTE AND ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THE NOTE. THIS NOTE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: ~.,~--. ~.~. JOHN S, V~IIOS Variable Rate. Single Pay. LASER PRO, Rag, U.S. Pal. S T.M. Off., Var. 3.29c (C) Concentrex 2001 All rights reservecL {PA-D20 F3.29a P3.29a O?520CL.L NI ~IECORDAT, ION REQUESTED BY: ORRSTOWN BANK P.O. Box 2S0 77 East King Street Shlppensburg, PA 17257 WHEN RECORDED MAIL TO: ORRSTOWN BANK P.O. Box 260 77 East King Street Shlppensburg, PA 17257 ROBERT p. ZIEC LER RECORDER OF DEEDS CU 48ERLAtiD COUNTY- PA '81 JF/N 31 Flit 11 31 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY MORTGAGE THIS MORTGAGE IS DATED JANUARY 26, 2001, between JOHN S. VAYANOS, whose address is 213 N. PRINCE ST., SHIPPENSBURG, PA 17257 (referred to below as "Grantor"); and ORRSTOWN BANK, whose address is P.O. Box 250, 77 East King Street, Shippensburg, PA 17257 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor grants, bargains, sells, conveys, assigns, transfers, releases, confirms and mortgages to Lender all of Grantor's right, fills, and interest in and to Ihe following described real property, together wi~h all existing or subsequenlly erected or affixed buildings, improvements and fixtures; all streets, lanes, alleys, passages, and ways; all easements, rights of way, all liberties, privileges, lenements, hereditaments, and appurtenances thereunlo belonging or anywise made appurtenant hereafter, and Ihe reversions and rems nders w h respec he e o a wa er wa er rgh s wa ercourses and ditch righls (nc ud ng stock in utilities wi~h dilch or irrigation rights); and all other rights, royalties, and profils relating to the real property, includ ng w hou m a on a m hera s, oil, gas, geotherma and s m ar ma ers, ocated in CUMBERLAND County, Commonwealth of Pennsylvania (the "Real Property"): SEE A'FI'ACHED The Real Property or its address is commonly known as 213 N. PRINCE ST./36 S. QUEEN ST., SHIPPENSBURG, PA 17257. Grantor presently assigns 1o Lender all of Grantor's right, lille, and interest in and to all leases of Ihs Property and all Rents from the Properly. tn addilion, Grantor granls to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. DEFINITIONS. The following words shall have the tollowlng meanings when used in this Mortgage. Terms not otherwise defined in this Morlgage shall have the meanings atlributed fo such terms in the Uniform Commercial Code. All references to dollar amounts shall mean amounts in lawful money of the United States of America. Granlor. The word "Grantor" means JOHN S. VAYANOS. The Granlor is the mortgagor under this Mortgage. Guarantor. The word "Guarantor" means and includes without timilafion each and all of the guarantors, sureties, and accommodation parties in connection with the Indebledness. Improvements. The word "Improvements" means and includes without limitation all existing and future improvements, buildings, slructures, mobile homes atfixed on the Real Property, facilities, additions, replacements and other construclion on the Real Properly. Indebtedness. The word "indebtedness" means all principal and interest payable under the Nole and any amounts expended or advanced by Lender Io discharge obligations of Grantor or expenses incurred by Lender fo enforce obligations of Grantor under this Mortgage, together wilh inleresl on such amounts as provided in this Mortgage. Lender. The word 'Lender" means ORRSTOWN BANK, its successors and assigns. The Lender is the mortgagee under this Morlgage. Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender, and includes without limitation all assignmenls and security interest provisions rerating to Ihe Personal Property and Renls. Note. The word "Nole" means the promissory note or credit agreement dated January 26, 2001, in the original principal amount of $200,000.00 from Grantor to Lender, Iogelher wilh all renewals of, extensions of, modifications of, rellnancings of, consolidations of, and substitutions tor the promissory note or agreemenl. The maturity date of this Mortgage is January 31, 2002. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE. Personal Property. The words "Personal Properly" mean all equipment, fixlures, and other articles ot personal property now or hereafler owned by Granlor, and now or hereafter attached or affixed Io the Real Properly; togelher wilh all accessions, paris, and additions lo, all replacements of, and all substitutions for, any of such property; and together wilh all proceeds (including without limitation ail insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word "Property" means collectively the Real Property and lhe Personal Property. Real Property. The words ~Real Proper y" mean the proper y, ~n eress and nghts described above n Ihe Grant of Mortgage sechon. Related Documents. The words "Related Documents" mean and include wilhout limitation all promissory noles, credil agreemenls, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, and all other instrumenls, agreements and documents, whether now or hereafter existing, executed in connection with Ihe Indebtedness. Rents, The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from Property. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (1) PAYMENT OF THE iNDEBTEDNESS AND (2) PERFORMANCE OF ALL OBLIGATIONS OF GRANTOR UNDER THIS MORTGAGE AND THE RELATED DOCUMENTS. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Except as olherwise provided in this Mortgage, Grantor shall pay to Lender all amounts secured by this Mortgage as they become due, and shall stricUy perform all of Granfor's obligations under this Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees thai Grantor's possession and use ct the Property shall be governed by the following provisions: Possession and Use. Until in defaull, Grantor may remain in possession and control of and operate and manage the Property and collect Ihs Rents from the Property. Duty fo Malnlaln. Granlor shall maintain Ihe Property in tenantable condition and promptly perform all repairs, replacements, and mainlenance necessary Io preserve its value. Hazardous Substances. The terms "hazardous waste," "hazardous substance," "disposal," "release," and "threatened release," as used in this Mortgage, shall have the same meanings as set Iorth in the Comprehensive Environmental Response, Compensation, and Liability Act ol 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"}, Ihs Superlund Amendments and Reauthorizalion Act of 1986, Pub. L. No. 99-499 ("SARA"), lhe Hazardous Materials Transportalion Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or Federal laws, rules, or reguralions adopled pursuant to any of the foregoing. The lerms "hazardous waste" and "hazardous subslance" shall aisc include, wilhout limitalion, petroleum and petroleum by-products or any fraction Ihereof and asbestos. Grantor represenls and warrants lo Lender that: (a) During Ihs period of Granfor's ownership of the Properly, lhere bas been no use, generation, manulecture, storage, treatment, disposal, release or threatened release of any hazardous wasle or subslance by any person on, under, about or Irom the Property; (b) Grantor has no knowledge of, or reason lo believe thai there has been, except es previously disclosed to and acknowledged by Lender in writing, (i) any use, gecerafion, manulaclure, storage, trealmect, disposal, release, or lhrealened release of any hazardous waste or substance on, under, aboul or from Ihs Property by any prior owners or occupants of the Properly or (ii) any eclual or Ihrealehed litigation or claims of any kind by any person relating to such mailers; and (c) Except as previously disclosed Io and acknowledged by Lender in wriling, (i) neilher Grantor nor any tenant, conlractor, agent or olher aulhorized user of Ihs Property shall use, generate, manutaclure, store, treat, dispose of, or release any hazardous waste or substance on, under, aboul or from the Property and (il) any such activlly shall be · . 01'-26-2001 " MORTGAGE _.* Page 2 Loan No (Continued) conducted in compliance with'all applicable lederel, stale, and local laws, regulations and ordinances, including without limitation those laws, regulalions, and ordinances described above. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and lests, al Grantor's expense, as Lender may deem appropriate to determine compliance of the Property wilh this section of the Mortgage. An~ inspeclions or tests made by Lender shall be for Lender's purposes only and shall nol be construed to create any responsibility or liabilily on the part of Lender to Grantor or to any other person. The represenlalions and warranties contained herein are based on Grantor's due diligence investigaling the Property for hazardous waste and hazardous substances. Granlor hereby (a) releases and waives any future claims againsl Lender for indemnity or contribution in the event Granlor becomes liable for cleanup or other costs under any such laws, and (b) agrees tc indemnify and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly indirecl[y suslain or suffer resulting from a breach ol this section of the Mortgage or as a consequence of any use, generation, manufacture storage, disposal, release or threatened release of a hazardous waste or subslance on the properlies. The provisions of this section of Morlgage, including lhe obligation to indemnify, shall survive the paymenl of the Indebledness and the satisfaction end reconveyance of the lien o this Mortgage and shall not be affecled by Lender's acquisition-of any interesl in Ihs Prepedy, whelher by foreclosure or otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or 1o Ihs Properly or any portion of the Property. Wilhout limiting the generalily of Ihs foregoing, Granlor will not remove, or grant to any olher party the right Io remove, any limber, minerals (including oil end gas), soil, gravel or rock products wilhout the prior written consent of Lender. Removal of Improvements, Grantor shall not demolish or remove any Improvements from the Real Property without the prior written consent ol Lender· As a condition 1o the removal of any Improvements, Lender may require Grantor lo make arrengemenls satisfactory to Lender to replace such Improvemenls wilh Improvemedls of al leasl equal value. Lender's Rlghl to Enter. Lender and its agents and representatives may enler upon the Real Properly al all reasonable times 1o attend lo Lender's interests and to inspect the Properly for purposes of Grantor's compliance with the terms and condilions of lhis Mortgage. Compliance with Governmental Requlremenls. Granlor shall prompUy comply wilh all laws, ordinances, and regulations, now or hereafter in effect, of all governmental aulhodfies applicable Io the use or occupancy of the Property. Granlor may contest in good failh any such law, ordinance, or regulation and wilhhold compliance during any proceeding, including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Properly are not jeopardized. Lender may require Grantor 1o post adequate security or a surely bond, reasonably satisfactory lo Lender, fo prolecl Lender's interest. Duty Io Protecl. Grantor agrees neither to abandon nor leave unallended Ihe Properly. Grantor shall do all other acls, in addition Io those acts sel fodh above in this section, which from Ihs characler and use of the Properly are reasonably necessary 1o protect and preserve the Properly. DUE ON SALE - CONSENT BY LENDER. Lender may, at ils option, declare immediately due and payable all sums secured by this Mortgage upon Ihs sale or lranster, without the Lender's prior written consenl, ol a~l or any pad ol lhe Real Property, or any inleresl in the Real Property. A "sale or transfer" means Ihe conveyance ct Real Properly or any dghl, lille or inlerest lherein; whelher legal, beneticial or equitable; whether volunlary or [nvolunlary; whether by oulright sale, deed, inslallmenl sale conlract, land conlracl, conlrecl for deed, leasehold Inleresl wilh alerm greater lhan three (3) years, lease-option conlracl, or by sale, essignmenl, or Iransfer ol any beneficial inleresl in or to any land Irusl holding title Io lhe Real Properly, or by any other melhod of conveyance ol Real Properly interest. If any Grantor is a corporation, partnership or limited liability company, Iransler also includes any change in ownership of more lhan Iwenly-flve percenl (25%) ol the voting stock, partnership inleresls or limJled liabilily company inleresls, as Ihs case may be, of Granlor. However, this option shall not be exercised by Lender if such exercise Is prohibited by federal law or by Pennsylvania law. TAXES AND LIENS. The following provisions relating 1o Ihe laxes and liens on the Properly are a parl of this Mortgage. Paymenl. Granlor shall pay when due (and in all events prior 1o delinquency) all laxes, payroll laxes, special taxes, assessments, waist charges and sewer service charges levied againsl or on account of the Properly, and shall pay when due ell claims tot work done on or for services rendered or maledal furnished lo the Property. Granlor shall mainlain the Properly free of all liens having priority over or equal to Ihs interesl of Lender under lhis Mortgage, except for Ihs lien of taxes end assessmenls nol due, and except as olherwJse provided in the following paragraph. Right To Contest. Grantor may withhold paymenl of any tax, assessment, or claim in connection with a good faith dispule over Ihs oblJgalion Io pay, so long as Lender's interest in the Properly is not jeopardized. If a lien arises or is flied as a result of nonpaymenl, Grenlor shall wilhin tifleen (15) days slier the lien arises or, if a lien is filed, within fitleen (15) days alter Grantor has notice of Ihs filing, secure the discharge of the lien, or if requesled by Lender, deposit wilh Lender cash or a sufficient corporals surely bond or olher secudly satisfactory Io Lender in an amounl sufficienl Io discharge the lien plus any cosls and attorneys' lees or other charges lhat could accrue as a result of a foreclosure or sale under Ihs lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any adveme judgment before enforcement against the Property. Grantor shall name Lender as an additional obliges under any surely bond furnished in the conlesl proceedings. Evidence of Payment. Grantor sha~l upon demand furnish Io Lender salisfactory evidence of paymenl of the laxes or assessmenls and sha~l aulhorize Ihs appropriate govemmenlal official Io deliver 1o Lender al any time a wdllen statement ol the laxes and assessmenls agalnsl the Properly. Notice of Construction. Granlor shall noilly Lender al leasl fifteen (f5) days before any work is commenced, any services are lurnished, or any malefials are supplied Io Ihs Properly, if any mechanic's lien, matedalmen's lien, or other lien could be asserted on account of the work, services, or malerials. G~antor will upon request of Lender furnish lo Lender advance assurances satisfaclory to Lender that Grantor can and will pay Ihe cosl of such improvements. PROPERTY DAMAGE INSURANCE. The toltowin9 provisions relating to insuring the Property are a part ol this Mortgage. Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsemenls on a replacement basis for Ihs full insurable value covering all Improvements on the Real Properly in an amount sufficient to avoid application of any coinsurance clause, and wilh a standard mortgagee clause in favor ct Lender. Policies shall be written by such insurance companies and in such form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage from each insurer containing a slipulalion that coverage will not be cancelled or diminished wilhoul a minimum of ten (10) days' prior written notice 1o Lender and nol conlaining any disclaimer ct the insurer's liabilily for failure to give such notice. Each insurance policy also shall include an endorsement providing thai coverage in favor ol Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. Should Ihs Real Property at any lime become Iocaled in an area designaled by the Director ol the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and mainlain Federal Flood Insurance for the lull unpaid principal balance of the loan and any prior liens on the property securing fha loan, up fo The maximum policy limits set under the National Flood Insurance Program, or as olherwisa required by Lender, and lo maintain such insurance ICl the term of lhe loan. · Application of Proceeds. Grantor shall promptly notify Lender ct any loss or damage to the Property. Lender may make proof of loss if Grantor fails to do so wilhin fifteen (15) days of the casualty, Whether or not Lender's security is Impaired, Lender may, at ils election, apply the proceeds to the reduction of the Indebledness, payment of any lien affecting the Property, or Ihe restoration and repair of the Property. It Lender elects to apply the proceeds to reslorelion and repair, Grantor shall repair or replace lhe damaged or deslreyed Imprevements in a manner salistaclory lo Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from Ihs proceeds for the reasonable cosl of repair or restoration il Grantor is not in default under this Mortgage. Any proceeds which have not been disbursed within 180 days alter Iheir receipt and which Lender has nol committed lo the repair or restoration of the Properly shall be used first 1o pay any amount owing to Lender under this Mortgage, then fo pay accrued interest, and Ihs remainder, it any, shall be applied Io the principal balance of the Jndebledness, It Lender holds any proceeds after payment in furl of the indebtedness, such proceeds shall be paid to Grantor, Unexpired insurance al Sale. Any unexpired insurance shall inure Io the benefit of, and pass 1o, the purchaser of the Properly covered by Ihis Mortgage at any trustee's sale or other sale held under lhe provisions of this Mortgage, or at any foreclosure sale of such Properly. EXPENDITURES BY LENDER. II Grantor fails to comply wilh any provision of this Mortgage, or if any action or proceeding is commenced that would materially allect Lender's interests in the Property, Lender on Granlor's behalf may, but shall not be required to, take any action lhat Lender deems appropriate. Any amount that Lender expends in so doing will bear inleresf al the rate provided for in Ihs Note from Ihs dale incurred or paid by Lender Io the date of repayment by Granlor. All such expenses, at Lender's oplion, will (a) be payable on demand, (b) be added to The baTance of Ihe Note and be apportioned among and be payable with any installmenl payments to become due during eilher (i) the term of any applicable insurance policy or (ii) the remaining term of the Nole, or (c) be trealed as a balloon payment which will be due and payable al Ihs Nora's maturily. This Modgage also will secure payment of these amounts. The rights provided for in Ibis paragraph shall be in addition to any olher righls or any remedies to which Lender may be entitled on account of the default. Any such action by Lender shall not be conslrued as curing Ihs default so as to bar Lender trem any remedy that it olherwise would have had. Grentor's obligalion lo Lender for all such expenses shall survive the entry ct any mortgage foreclosure judgment. WARRANTY; DEFENSE OF TITLE, The following previsions relating lo ownership of lhe Property are a part of this Mortgage. Tills. Grantor warrants that: (a) Grantor holds good and marketable fills ct record lo Ihs Property in fee simple, free and clear ct all liens and encuq'~brances olher than Ihose set forth in Ihs Real Properly description or in any lille insurance policy, tills report, or tinal tills opinion issued in favor ol, and accepted by, Lender in connection with lhis Mortgage, and (b) Grantor has the full right, power, and aulhorily Io execute and deliver this Mortgage ,o Lender. B00Kt667 PAGE d.77 01'-26-2001 MUH I ~P~I:: Page Loan No (Continued) Defense of Title. Subject to'the exception in Ihe paragraph above, Grantor warranls and will forever defeftd the title to the Property againsl lawful claims of all persons. In the event any action or proceeding is commenced thai questions Grentor's title or the interest of Lender under ti' Mortgage, Granlor shall defend the action al Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shall entitled to participate in the proceeding and lo be represenled in Ihs p~oceeding by counsel of Lender's own choice, and Grantor wiII deriver, cause to be delivered, lo Lender such inslrumenls as Lender may request from time to time lo permit such participation. Compliance With Laws. Grantor warrants Ihat the Property and Grantor's use of the Property complies wilh all existing applicable lay, ordinances, and regulations of governmental authorities. CONDEMNATION. The following provisions relating Io condemnation of the Property are e part of this Mortgage. Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purcha~ in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to Ihs Indebtedne~ or the repair or restoralion of the Property. The net proceeds of the award shall mean the award after payment of all actual cosls, expenses, ar attorneys' fees incurred by Lender in connection with the condemnation. Proceedings. If any proceeding in condemnation is filed, Granlor shall promptly notify Lender in wriling, and Grantor shall promplly take suc slaps as may be necessary I0 defend Ihs action and obtain the award. Granlor may be Ihs nominal party in such proceeding, bul Lender shall enlilled Io participale in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause be delivered to Lender such inslruments as may be requesled by it from time Io lime to permit such participation. IMPOSITION OF TAXES, FEES AND C~ARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fe~ and charges are a part of this Morlgage: Current Taxes, Fees and Charges. Upon request by t.ender, Grantor shall execute such documents in addition to Ibis Mortgage and whatever olher action is requested by Lender 1o perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for taxes, as described below, together wilh all expenses incurred in recording, perfecting or continuing this Mortgage, including without limilafion taxes, fees, documentary slamps, and other charges for recording or registering this Mortgage. Taxes. The following sharl consfitule taxes 1o which this seclion applies: (a) a specific tax upon this type of Mortgage or upon all or any part the Indebtedness secured by this Mortgage; (b) a specific tax on Granlor which Grantor is aulhodzed or required to deducl from payments on ti' Indebledness secured by this lype of Mortgage; (c) a lax on this type of Mortgage chargeable against Ihs Lender or lhe holder of the Nole; aN (d) a specific tax on air or any portion of the Indebtedness or on payments of principal and interest made by Grantor. Subsequent Taxes. If any lax to which Ihis section applies is enacted subsequenl to the date of this Mortgage, Ihis event shall have Ihs sarr effect as an Event of Default (as defined below), and Lender may exercise any or all of its available remedies for an Evenl of Defaull as provide below unless Grantor either (a) pays Ihs lax before it becomes delinquent, or (b) contests Ihs fax as provided above in the Taxes and Lief section and deposits wilh Lender cash or a sufficienl corporate surety bond or olher security salisfectory Io Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of thi Mortgage. Security Agreement. This inslrument shall constitute a securily agreement lo the extent any of Ihs Property constitules fixlures or other persom property, and Lender shall have all of the righls of a secured party under lhe Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Granlor shall execute financing statements and take whatever other action is requesled by Lender perfecl and continue Lender's security interest in the Rents and Personal Property. In addition to recording this Mortgage in the real propert records, Lender may, at any time and without further aulhorizalion from Granlor, fire executed counterparts, copies or reproductions of thi Mortgage as a financing slatement. Granlor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interes' Upon default, Grantor shall assemble the Personal Property in a manner and at a place reasonably convenient to Grantor and Lender and make available to Lender wilhin three (3) days after receipt of writlen demand from Lender. Addresses. The mailing addresses of Grantor (deblor) and Lender (secured party), from which informalion concerning the security inlere~ granled by this Mortgage may be obtained (each as required by the Uniform Commercial Code), are as staled on the first page of this Modgage. FURTHER ASSURANCE; ADDITIONAL AUTHORIZATION. The following provisions re~ating to further assurances and additional authorization are part of this Mortgage. Further Assurances. Al any lime, and from time 1o lime, upon request of Lender, Grantor will make, execule and deliver, or will cause 1o be made, executed or delivered, 1o Lender or 1o Lender's designee, and when requesled by Lender, cause to be filed, recorded, refiled, o, rerecorded, as the case may be, at such limes and in such offices and places as Lender may deem appropriate, any and all such morlgages deeds of trust, secudl¥ deeds, security agreemenls, financing slalemenfs, continuation slalements, tnstrumenls of furlher assurance, certificates, and olher documents as may, in the sole opinion of Lender, be necessary or desirable in order to effesfuale, complele, perfecl, continue, or preserve (a) Ihe obligations of Grantor under the Note, this Mortgage, and the Related Documents. and (b) the liens and security interesls created by this Mortgage as firsl and prior liens on lhe Property, whether now owned or heraafler acquired by Grantor. Unless prohibiled by law or agreed to the contrary by Lender in writing, Granlor shall reimburse Lender for all cosls and expenses incurred in connection wilh the matters referred 1o in this paragraph. Addlllonal Authorization. If Granlor fails I0 do any of the things referred to in the preceding paragraph, Lender may do so for and in fha name ol Grantor and al Grantor's expense. For such purposes, Grantor hereby irrevocably authorizes Lender to make, execute, deliver, file, record and do all other lhings as may be necessary or desirable, in Lender's sole opinion, 1o accomplish Ihs melters referred to in the preceding paragraph. I1 is understood Ihal nolhing set forth herein shall require Lender 1o take any such aclions. FULL PERFORMANCE. If Grantor pays alt the Indebtedness when due, and otherwise performs all lhe obligations imposed upon Granlor under this Mortgage, Lender shall execule and deliver lo Granlor a suitable satisfaction of this Mortgage and suitable statements of lerminalion of any financing statement on file evidencing Lender's security inlerast in the Rents and Ihs Personal Property. Grantor will pay, if permilted by applicable law, any reasonable lerminalion fee as determined by Lender from time to time. DEFAULT. Each of the following, at the option of Lender, shall consMute an event of detaull ("Event of Defaull") under lhis Mortgage: Default on Indebtedness. Failure of Grantor lo make any payment when due on Ihs Indebledness. Default on Other Payments. Failure of Grantor within Ihs time required by this Mortgage to make any payment for laxes or insurance, or any olher payment necessary to prevent filing of or lo effect discharge of any lien. Compliance Default. Failure of Grantor to comply with any olher lerm, obligation, covenant or condilion contained in lhis Morlgage, the Note or in any of the Related Documents. False Statements. Any warranly, represenlalion or slalement made or furnished 1o Lender by or on behalf of Granlor under Ihis Morlgage, the Nole or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished. Defective Collatereltzaflon. This Mortgage or any of the Related Documents ceases to be in full force and effect (including failure of any collateral documents to create a valid and perfected securily Interest or lien) at any time and for any reason. Death or Insolvency. The death of Grantor, the insolvency of Grantor, the appointmenl of a receiver for any part of Grantor's property, any assignment for Ihs benefit of credllors, any lype of credilor workout, or the commencement of shy proceeding under any bankruplcy or insolvency laws by or against Grantor. Foreclosure, Forfellure, etc. Commencement of foreclosure or forteilure proceedings, whether by judicial proceeding, self-help, repossession or any other melhod, by any credilor of Granlor or by any governmenlal agency against any of Ihs Property. However, Ibis subseclion shall nol apply in Ihs evenl of a good failh dispule by Grantor as to Ihs validily or reasonableness of the claim which is the basis of the foreclosure or forefeiture proceeding, provided lhaf Grantor gives Lender wrillen notice of such claim and furnishes' reserves or a surety bond for the claim sslistaclory to Lender. Breach of Other Agreement. Any breach by Granlor under Ihs terms of any other agreemenl between Granlor and Lender Ihal is nol remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or olher obligalion of Grenlor Ip Lender, whether existing now or later. Events Affecting Guarantor. Any of Ihs preceding events occurs with respecl fo any Guarantor of any of Ihs Indebtedness or any Guaranlor dies or becomes incompelenf, or revokes or dispules fha validity of, or liabilily under, any Guaranly of Ihs tndebledness. Lender, al ils option, may, bul shall nol be required to, permit the Guaranlor's estale to assume unconditionally the obligations arising under the guaranty in a manner sallsfaclory to Lender, and, in doing so, cure the Evenl of Defaull. Right I0 Cure. If such a failure is curable and if Granlor has nol been given a nolice of a breach of Ihs same provision of Ihis Mortgage wilhln the preceding twelve {12) months, it may be cured (and no Evecl of Defaull will have occurred) if Grenlor, after Lender sends wrillen notice demanding cure of such failure: (a) cures Ihs failure wllhln fifteen (15) days; or (b).if Ih~ ~Jra requires more lhan fifteen (15) days, immedialely 0 K1667 - ,1.78 01-26-2001 "' MORTGAGE ,---o Page Loan No (Continued) iniliales steps sufficient to cu~e the failure and thereaft;=r conlin~es and completes all reasonable and necessary steps sufficient to pr0duc( compliance as soon as reasonably practical. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence ot any Evenl of Detaull and at any time thereafter, Lender, at its option, may exercisr any one or more or Ihe following righls and remedies, in addition 1o any other righls or remedies provided by law: Accelerele Indebledness. Subject to applicable law, Lender shall have the right at ils option without notice to Granlor lo declare the entire Indebtedness immedialely due and payable. UCC Remedies. Wilh respect to all or any part of ~he Personal Properly, Lender shall have all the rights and remedies of a secured party unde Ihe Uniform Commercial Code. Collect Rents. Lender shall have the right, wilhoul notice to Granlor, Io take possession of the Property and collect the Rents, including amounL~ past due and unpaid, and apply Ihe net proceeds, over and above Lender's costs, against the Indebtedness. In furtherance of this right, Lende~ may require any tenant or olher user of the Property fo make paymenls of rani or use fees directly to Lender. It the Rents are collected by Lender Ihen Grantor irrevocably authorizes Lender to endorse instrumenls received in payment lhereof in the name of Grantor and lo negotiate Ihe same and collecl the proceeds. Paymenls by tenants or olher users to Lender in response to Lender's demand shall satisfy the obligations for which Ihe payments are made, whelher or not any proper grounds for the demand existed. Lender may exercise lis rlghls under this subparagraph either ir~ person, by agent, or through a receiver. Appoint Receiver. Lender shall hav~ the right to have a receiver appoinled lo take possession of all or any part of lhe Property, with Ihe power protect and preserve lhe Properly, to operate the Property preceding foreclosure or sale, and to collecl the Rents from lhe Property and apply Ihe proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to lhe appointment of a receiver shall exist whelher or not lhe apparent value of the Property exceeds the Indebledness by a subslantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. Deficiency Judgment. Lender may oblain a judgment for any deficiency remaining in the Indebtedness due to Lender after applicalion of all amounls received from Ihe exercise of Ihe righls provided tn this section. Tenancy at Sufferance. If Grantor remains in possession of Ihe Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenanl et sufferance of Lender or the purchaser of lhe Properly and shall, at Lender's option, either (a) pay a reasonable renlal for Ihe use of lhe Property, or (b) vacale the Properly immedialely upon Ihe demand of Lender. Other Remedies. Lender shall have all other rights and remedies provided in Ihis Modgege or the Nole or available at law or in equity. Sale of the Properly. To Ihe exlenl permilted by applicable law, Granlor hereby waives any and all right lo have Ihe property marshalled. In exercising its rights and remedies, Lender shall be free to sell all or any part of Ihe Property togelher or separately, in one sale or by separale sales. Lender shall be entitled to bid al any public sale on all or any portion of the Property. Notice of Sale. Lender shall give Grantor reasonable notice of the lime and place of any public sale of the Personal Property or of lhe time after which any private sale or other intended disposition of the Personal Property is to be made. Unless otherwise required by applicable law, reasonable notice shall mean notice given al least ten (tO) days before Ihe time of the sale or disposilion. Waiver; Election of Remedies. A waiver by any parly of a breach of a provision of this Mortgage shall not constilufe a waiver of or prejudice the parly's rights otherwise ~o demand strict compliance wilh Ihat provision or any other provision. Election by Lender to pursue any remedy shall not exclude pursuil of any other remedy, and an election lo make expenditures or take action to perform an obligation of Granlor under lhis Modgege after failure of Granlor lo perform shall nol affect Lender's right to declare a default and exemise its remedies under this Modgage. Altorneys' Fees; Expenses. If Lender inslilufes any suil or action lo enfome any of Ihe terms of this Mortgage, Lender shall be entitled Io recover such sum as the court may adjudge reasonable as attorneys' fees at trial and on any appeal. Whether or not any coud action is involved, all reasonable expenses incurred by Lender that in Lender's opinion are necessary al any time for the protection of ifs interest or Ihe enforcement of its rights shall become a part of the Indebtedness payable on demand and shaft bear inleresl from lhe date of expenditure until repaid al the rate provided for in the Note. Expenses covered by this paragraph include, wilhoul Jimilation, however subjecl lo any limils under applicable law, Lender's allorneys' fees and Lender's legal expenses whether or nol there is a lawsuil, including attorneys' fees for bankruptcy proceedings (including efforts to modify or vacate any automalic stay or injunction), appeals and any anticipated post-judgment collection services, the cost of searching records, obtaining lille reports (including foreclosure reporls), surveyors' reports, and appraisal fees, and lille insurance, to lhe exlenl permitted by applicable law. Granlor also will pay any courl costs, in addilion ~o all other sums provided by law. NOTICES TO GRANTOR AND OTHER PARTIES. Unless otherwise provided by applicable law, any notice under this Mortgage shall be in writing, may be sent by lelefacsimile (unless olherwise required by law), and shall be eftecfive when acluarly delivered, or when deposiled wilh a nalionally recognized overnight courier, or, if mailed, shall be deemed effeclive when deposiled in the United States mail first class, cerlified or registered mair, poslege prepaid, directed Io Ihe addresses shown near the beginning of this Morlgage. Any pady may change its address for nolices under Ihis Mortgage by giving formal written notice lo lhe olher parties, specifying that lhe purpose of Ihe notice is Io change the party's address, All copies of notices of foreclosure from the holder of any lien which has priorily over this Mortgage shall be sent to Lender's address, as shown near Ihe beginning gl Ihis Mortgage. For notice purposes, Grantor agrees to keep Lender informed at all limes of Granlor's current address. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a pall of this Modgage: Amendments. This Mortgage, legelher with any Relaled Documenls, conslilules the entire understanding and agreemenl of Ihe parties as to Ihe maners scl forth in this Mortgage. No alleration of or amendment to this Mortgage shah be effective unless given in writing and signed by the party or parties sought lo be charged or bound by Ihe alteralion or amendment. Applicable Law. This Mortgage has been delivered to Lender and accepted by Lender in lhe Commonwealth of Pennsylvania. This Mortgage shall be governed by and construed In accordance with the laws of lhe Commonwealth of Pennsylvania. Caption Headings. Caption headings in lhis Morlgage are for convenience purposes only and are not to be used to inlerprel or define Ih~ provisions of this Mortgage. Merger. There shall be no merger of Ihe inlerest or estate created by this Mortgage wilh any olher interest or estate in lhe Properly at any lime held by or for Ihe benefit of Lender in any capacily, without Ihe wrillen consent of Lender. Severablfify. If a court of competent jurisdiction finds any provision of lhis Mortgage to be invalid or unenforceable as to any person or circumstance, such finding shall not render that provision invalid or unenforceable as Io an)' other persons or circumstances, If feasible, an)' such offending provision shall be deemed to be modified to be within Ihe limits of enforceabllily or validity: however, If Ihe offending pr0vislon cannot be so modified, it sharl be slricken and all other provisions of this Mortgage in all other respecls shall remain valid and enforceable. Successors and Assigns. Subject Io Ihe limilations slaled in this Mortgage on transfer of Grantor's interesl, this Mortgage shall be binding upon and inure to the benefit of Ihe padies, Iheir heirs, personal representatives, successors and assigns. If ownership of the Properly becomes vesled in a person other than Grantor, Lender, wilhout notice to Grantor, may deal with Granlor's successors wilh reference fo lhis Morlgage and Ihe Indebtedness by way of forbearance or extension without releasing Grantor from Ihe obligations of this Mortgage or tiabilily under lhe Jndebledness. Time Is of the Essence. Time is of the essence in the performance of this Mortgage. Waivers and Consents. Lender shall nol be deemed fo have waived any righls under Ihis Mortgage (or under the Related Documents) unless such waiver is in writing and signed by Lender. No delay or omission on Ihe part of Lender in exercising any right shall opersle as a waiver of such right or any other righl. A waiver by any party of a provision of lhis Morlgage shall nol constilute a waiver of or prejudice me party's righl otherwise Io demand slricl compliance with lhat provision or any olher provision. NO prior waiver by Lender, nor any course of dealing belween Lender and Granlor, shall constitute a waiver of any of Lender's righls or any of Granlor's obligations as to any fulure transactions. Whenever consent by Lender is required in this Morlgege, the granting of such consent by Lender in any inslance shall not consfilute continuing consenl lo subsequent inslances where such consent is required. .0 K:[667 PAGE · 01.-26~2001 MORTGAGE '--'* Loan No (Continued) GRANd'OR ACKNOWLEDGES HA~ING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. GRANTOR: ~ ....... ~ Signed, eck.~vle~ anon//the pre~nce of: x ............ x Signed, acknowledged and delivered In the presence of: X Wllness X Witness Page 5 CERTIFICATE OF RESIDENCE I hereby certily, Ihal Ihs precise address ol the mortgagee, ORRSTOWN BANK, ~t[reln ts as follows: STATE OF ~ ~ ~/~/~ ) unders~ned Nota$y ~u,blic. personally appeared JOH~ S. VAYANOS. known ~o me (or s~y p~oven) o ~e e pe whose su~scribe~ 10,~e,~i[~ument. and acknowledge~lhat he or she ex~uled the same for lh~s lherein conlain~ In~ km~df,~, to ~t my hand and offlclal ~,l. ~ // ~ / / . .. .... -,t-.-~C.~ . . ..-. , ~ t ~ t~;,'. ~:~;~;' ,: Nota~ublic ~and for the Slate of LASE~p~ ~, ~ ~,~ ~ ~: r3.2~ lC) Concenlr ex 2001 AIIrlghls reserved. IPA-G03 P3.29a 07520CL,LNI ~.,, ~;=..~.. ~ [ Peggy A. Gilson, Notary Public J JShlpl)m~sJ)~l~ Boro, Cumbo~'land Counlyl J My Comnlisalon Expiros AtJg. 31, 20~4 J B00KI'G67 ~A~ ,180 CERTIFICATE OF SERVICE I hereby certify that on July 3, 2003, I, David A. Baric, Esquire of O'Brien, Baric & Scherer, did serve a copy of the Plaintiffs Proposed Findings Of Fact and Conclusions Of Law, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Karl Rominger, Esquire Rominger & Bayley 155 South Hanover Street Carlisle, Pennsylvania 17013 David A. Baric, Esquire ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- 946 CIVIL TERM MORTGAGE FORECLOSURE AND NOW, this day of~2003, based upon the Stipulation to Entry of Judgment it is ordered that judgment beente~] with the Cumberland County Prothonotary against John S. Vayanos and in favor of Orrstown Bank in the mount of $236,473.44. ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- 946 CIVIL TERM MORTGAGE FORECLOSURE STIPULATION TO ENTRY OF JUDGMENT NOW, come the parties to this matter, by and through their attorneys of record and agree as follows: 1. Orrstown Bank has instituted the above action based upon a debt owed by Defendant to Plaintiff. 2. The parties agree to entry of judgment against Defendant and in favor of Plaintiff in the total sum of $236,473.44, David A. Baric, Esquire 17 West South Street Carlisle, PA 17013 (717) 249-6873 Attorney for Orrstown Bank ROMINGER & BAYLEY Karl E. Rominger, Esquire 155 South Hanover Street Carlisle, PA 17013 (717) 241-6070 Attorney for John S. Vayanos dab.dir/orrstownbank/vayanos/stipulated.jdg ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 213 NORTH PR1NCE STREET SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- 946 CIVIL TERM MORTGAGE FORECLOSURE PRAECIPE FOR WRIT OF EXECUTION TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please issue a Writ of Execution in the above matter. Amount due: $236,473.44 David A. Baric, Esquire Pa I.D. 44853 17 West South Street Carlisle, PA 17013 (717) 249-6873 Attomey for Plaintiff CERTIFICATE OF SERVICE I hereby certify that on September g5] ~ 2003, I, David A. Baric, Esquire, of O'Brien, Baric & S cherer, did serve a copy of the Praecipe for Writ of Execution, by first class U.S. mail, postage prepaid, to the pa~ies listed below, as follows: Karl Rominger, Esquire Rominger & Bayley 155 South Hanover Street Carlisle, Pennsylvania 17013 John S. Vayanos 213 North Prince Street Shippensburg, Pennsylvania 17257 David A. Baric, Esquire ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- 946 CIVIL TERM MORTGAGE FORECLOSURE AFFIDAVIT PURSUANT TO RULE 3129.1 I, David A. Baric, Esquire, attorney for Plaintiff in the above action, sets forth as of the date of the Praecipe for the Writ of Execution was filed the following information concerning the mai property, as more fully described on Exhibit "A", attached hereto and incorporated herein by reference. 1. Name and address of owners or reputed owners: John S. Vayanos 213 North Prince Street Shippensburg, Pennsylvania 17257 2. Name and address of defendants in the judgment: John S. Vayanos 213 North Prince Street Shippensburg, Pennsylvania 17257 3. Name and address of every judgment creditor whose judgment is a record lien on the real property to be sold: Orrstown Bank Walker & MacBride 77 East King Street Shippensburg, Pennsylvania 17257 247 Lincoln Way East Chambersburg, Pennsylvania 17201 Name and address of the last recorded holder of every mortgage of record: Orrstown Bank 77 East King Street Shippensburg, Pennsylvania 17257 Name and address of every other person who has any record lien on the property: Orrstown Bank 77 East King Street Shippensburg, Pennsylvania 17257 Cumberland County One Courthouse Square Tax Claim Bureau Carlisle, Pennsylvania 17013 Walker & MacBride 247 Lincoln Way East Chambersburg, Pennsylvania 17201 Name and address of every other person who has any record interest in the property and whose interest may be affected by the sale: Orrstown Bank Cumberland County Tax Claim Bureau Walker & MacBride 77 East King Street Shippensburg, Pennsylvania 17257 One Courthouse Square Carlisle, Pennsylvania 17013 247 Lincoln Way East Chambersburg, Pennsylvania 17201 Name and address of every other person of whom the plaintiffhas knowledge who has any interest in the property which may have been affected by the sale: Orrstown Bank 77 East King Street Shippensburg, Pennsylvania 17257 Cumberland County Tax Claim Bureau One Courthouse Square Carlisle, Pennsylvania 17013 Walker & MacBride 247 Lincoln Way East Chambersburg, Pennsylvania 17201 I verify that the statements made in this Affidavit are true and correct to the best of my knowledge or information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. § 4904 relating to unswo_rn falsifications to authorities. ~ Date' ~/~/~,~ ~'~'~t~, ~' · ~ David A. Baric, Esquire Attorney for Plaintiff, Milo Corporation LEGAL DESCRIPTION TRACT NO. 1: Parcel No. 36-33-1867-058 ALL that certain tract of land with the buildings thereon erected, situate in Shippensburg Township, Cumberland County, Pennsylvania, bounded and described as follows: BEGINNING at a point in North Prince Street, formerly known as Normal Avenue; thence by land formerly of Emily Jamison, now or formerly of Marjorie E. Hosfeld, North 60 degrees East 26.5 perches to a post; thence by lands formerly of said Emily Jamison and John Hosfeld, now or formerly of George W. Ho sfeld, North 35 degrees West 21.1 perches, more or less, to an iron pin on line of land formerly of Mary C. Harper, et al, now or formerly of W.A. Adams; thence by the same, South 58 degrees West, 367 feet, more or less, to said North Prince street; thence by said Street, South 26 1/2 degrees East, 345 feet, more or less, to the first mentioned Point and place of beginning. LESS, HOWEVER, a tract of land which Hilton A. Russell and Dorothy O. Russell, his wife, by Deed dated January 21, 1948, and recorded in Cumberland County Deed Book S, Vol. 13, Page 500, granted and conveyed to George W. Hosfeld and Marjorie E. Hosfeld, his wife. CONTAINING in front on North Price Street 92 3/4 feet and extending in an even width of 93 feet, more or less. RESERVING unto the said Hilton A. Russell and Dorothy O. Russell, his wife, their heirs and assigns, the ful free liberty and right at all times hereafter and forever to have and use the existing driveway or passageway extending diagonally in a southwesterly direction across the western portion of the said lot hereby granted for any and all purposes connected with the use and occupation of the Russells' other land adjoining the lot hereby granted. TRACT NO. 2: Parcel No. 36-33-1867-058 BEGINNING at an iron pin on the southwestem side of a 14 foot public alley at line of land now or formerly of Williams Addams; thence with the southwestern side of said public alley, North 53 degrees 01 minute 50 seconds East, 173.06 feet to a spike at line of land of The West End Land Company of Shippensburg; thence with the same, South 42 degrees 20 minutes East, 276.53 feet to an iron pin at line of Parcel "B" of The West End Land Company of Shippensburg, about to be conveyed to Sara Marjorie Hosfeld and Charlotte Joanne Tarpy; thence with the same, South 55 degrees 43 minutes 27 seconds West, 148.81 feet to an iron pin at line of other land now or formerly of Sara Marjorie Hosfeld and Charlotte Joanne Tarpy; thence continuing with the same, South 55 degrees 43 minutes 27 seconds West, 50 feet to an iron pin at line of land now or formerly of Hilton A. Russell; thence with the same, North 37 degrees 02 minutes 17 seconds West, 255.15 feet to an iron pin at line of land now or formerly of William Addams; thence with the same, North 37 degrees 02 minutes 17 seconds West, 10.82 feet to an iron pin on the southwestern side of a 14 foot public alley, the first mentioned point and place of beginning. CONTAINING 50,233.32 square feet or 1.153 acres according to survey and draft of William A. Brindle Associates, R.S., dated February 6, 1975 and revised August 25, 1975. SAID two tracts being known as 213 North Prince Street, Shippensburg Township, Shippensburg, Pennsylvania. BEING the same premises which Dorothy O. Russell, by Deed dated August 6, 1981 and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania, in Deed Book N, Vol. 29, Page 61, granted and conveyed unto John S. Vayanos and Evageline Vayanos. The said Evangeline Vayanos, by Order of Court dated January 8, 2001 was removed as owner of properties located at 213 North Prince Street and 36 South Queen Street, Shippensburg, Pennsylvania pursuant to a Motion for Relief filed by John S. Vayanos in the United States Bankruptcy Court for the Middle District of Pennsylvania. TRACT NO. 3: Parcel No. 32-34-2413-045 ALL that certain lot of ground with the buildings and improvements thereon erected, situate on the comer of Orange and Queen Streets in the Borough of Shippensburg, Cumberland County, Pennsylvania, bounded and described as follows: ON the East by Queen Street; on the North by property now or formerly of Mrs. Emma Seavers, now or formerly of Percy W. Famer; on the West by property now or formerly of John E. Boher, now or formerly of William A. Farner; on the South Orange Street. SAID lot having a frontage on Queen Street of fifty (50) feet, more or less, and an even depth of seventy-five (75) feet, more or less. KNOWN as No. 36 South Queen Street. BEING the same premises which Eleanor M. Hargleroad and Kurt M. Hargleroad, by Deed dated January 6, 1984 and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania, in Deed Book N, Vol. 30, Page 233, granted and conveyed unto John S. Vayanos and Evangeline Vayanos. The said Evangeline Vayanos, by Order of Court dated January 8, 2001 was removed as owner of properties located at 213 North Prince Street and 36 South Queen Street, Shippensburg, Pennsylvania pursuant to a Motion for Relief filed by John S. Vayanos in the United States Bankruptcy Court for the Middle District of Pennsylvania. ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- 946 CIVIL TERM MORTGAGE FORECLOSURE AFFIDAVIT OF SERVICE OF NOTICE OF SALE UNDER PA.R.C.P. 3129.2 I, David A. Baric, Esquire, attorney for Plaimiff, states that the Notice of Sale Under Pa. R.C.P. 3129.2 were mailed with certificate of mailing to the following on September 9, 2003: Karl Rominger, Esquire Rominger & Bayley 155 South Hanover Street Carlisle, Pennsylvania 17013 Cumberland County Tax Claim Bureau One Courthouse Square Carlisle, Pennsylvania 17013 Martha Walker, Esquire Walker & MacBride 247 Lincoln Way East Chambersburg, Pennsylvania 17201 SWORN TO AND O~, 2003. BY: David A. Baric, Esquire Notarial, Seal Jennifer S. Lindsay, Notary Public Carlisle Boro, Cumberland County~ My Commission Expires Nov. 29, 20u3 ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- 946 CIVIL TERM MORTGAGE FORECLOSURE NOTICE TO LIEN HOLDERS NOTICE PURSUANT TO PA. R.C.P. 3129 Notice is hereby given to the following parties who hold one or more mortgage, judgment or tax liens against the real estate of John S. Vayanos. Orrstown Bank 77 East King Street Shippensburg, Pennsylvania 17257 Cumberland County Tax Claim Bureau One Courthouse Square Carlisle, Pennsylvania 17013 Martha Walker, Esquire Walker & MacBride 247 Lincoln Way East Chambersburg, Pennsylvania 17201 You are hereby notified that on Wednesday, December 10, 2003 at I 0:00 a.m., prevailing time, by virtue of a Writ of Execution issued out of the Court of Common Pleas of Cumberland County, Pennsylvania, on the judgment of Orrstown Bank v. John S. Vayanos, No. 2003-946, the Sheriff of Cumberland County, Pennsylvania will expose at Public Sale in the Sheriffs Office in the Court House, City of Carlisle, County of Cumberland, Pennsylvania, real estate of John S. Vayanns known and numbered as 213 North Prince Street and 36 South Queen Street, Shippensburg, Cumberland County, Pennsylvania. A description of said real estate is hereto attached. You are further notified that a Schedule of Distribution of Proposed Distribution will be filed by the Sheriff of Cumberland County on Friday, January 9, 2004, and distribution will be made in accordance with the Schedule unless exceptions are filed thereto within ten (10) days thereafter. You are further notified that the lien you hold against said real estate will be divested by the sale and that you have an opportunity to protect your interest, if any, by being notified of said Sheriffs Sale. r ~ .,~ DATE: ~/~ t ~ David A. Baric, Esquire I.D. # 44853 O'Brien, Baric & Scherer 17 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff LEGAL DESCRIPTION TRACT NO. 1: Parcel No. 36-33-1867-058 ALL that certain tract of land with the buildings thereon erected, situate in Shippensburg Township, Cumberland County, Pennsylvania, bounded and described as follows: BEGINNING at a point in North Prince Street, formerly known as Normal Avenue; thence by land formerly of Emily Jamison, now or formerly of Marjorie E2 Hosfeld, North 60 degrees East 26.5 perches to a post; thence by lands formerly of said Emily Jamison and John Hosfeld, now or formerly of George W. Hosfeld, North 35 degrees West 21.1 perches, more or less, to an iron pin on line of land formerly of Mary C. Harper, et al, now or formerly of W.A. Adams; thence by the same, South 58 degrees West, 367 feet, more or less, to said North Prince street; thence by said Street, South 26 1/2 degrees East, 345 feet, more or less, to the first mentioned Point and place of beginning, LESS, HOWEVER, a tract of land which Hilton A. Russell and Dorothy O. Russell, his wife, by Deed dated January 21, 1948, and recorded in Cumberland County Deed Book S, Vol. 13, Page 500, granted and conveyed to George W. Hosfeld and Marjorie E. Hosfeld, his wife. CONTAINING in from on North Price Street 92 3/4 feet and extending in an even width of 93 feet, more or less. RESERVING unto the said Hilton A. Russell and Dorothy O. Russell, his wife, their heirs and assigns, the ful free liberty and right at all times hereafter and forever to have and use the existing driveway or passageway extending diagonally in a southwesterly direction across the western portion of the said lot hereby granted for any and all purposes connected with the use and occupation of the Russells' other land adjoining the lot hereby granted. TRACT NO. 2: Parcel No. 36-33-1867-058 BEGINNING at an iron pin on the southwestern side of a 14 foot public alley at line of land now or formerly of Williams Addams; thence with the southwestern side of said public alley, North 53 degrees 01 minute 50 seconds East, 173.06 feet to a spike at line of land of The West End Land Company of Shippensburg; thence with the same, South 42 degrees 20 minutes East, 276.53 feet to an iron pin at line of Parcel "B" of The West End Land Company of Shippensburg, about to be conveyed to Sara Marjorie Hosfeld and Charlotte Joaune Tarpy; thence with the same, South 55 degrees 43 minutes 27 seconds West, 148.81 feet to an iron pin at line of other land now or formerly of Sara Marjorie Hosfeld and Charlotte Joanne Tarpy; thence continuing with the same, South 55 degrees 43 minutes 27 seconds West, 50 feet to an iron pin at line of land now or formerly of Hilton A. Russell; thence with the same, North 37 degrees 02 minutes 17 seconds West, 255.15 feet to an iron pin at line of land now or formerly of William Addams; thence with the same, North 37 degrees 02 minutes 17 seconds West, 10.82 feet to an iron pin on the southwestern side of a 14 foot public alley, the first mentioned point and place of beginning. CONTAINING 50,233.32 square feet or 1.153 acres according to survey and draft of William A. Brindle Associates, R.S., dated February 6, 1975 and revised August 25, 1975. SAID two tracts being known as 213 North Prince Street, Shippensburg Township, Shippensburg, Pennsylvania. BEING the same premises which Dorothy O. Russell, by Deed dated August 6, 1981 and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania, in Deed Book N, Vol. 29, Page 61, granted and conveyed unto John S. Vayanos and Evageline Vayanos. The said Evangeline Vayanos, by Order of Court dated January 8, 2001 was removed as owner of properties located at 213 North Prince Street and 36 South Queen Street, Shippensburg, Pennsylvania pursuant to a Motion for Relief filed by John S. Vayanos in the United States Bankruptcy Court for the Middle District of Pennsylvania. TRACT NO. 3: Parcel No. 32-34-2413-045 ALL that certain lot of ground with the buildings a~d improvements thereon erected, situate on the comer of Orange and Queen Streets in the Borough of Shippensburg, Cumberland County, Pennsylvania, bounded and described as follows: ON the East by Queen Street; on the North by property now or formerly of Mrs. Emma Seavers, now or formerly of Percy W. Famer; on the West by property now or formerly of John E. Boher, now or formerly of William A. Famer; on the South Orange Street. SAID lot having a frontage on Queen Street of fifty (50) feet, more or less, and an even depth of seventy-five (75) feet, more or less. KNOWN as No. 36 South Queen Street. BEING the same premises which Eleanor M. Hargleroad and Kurt M. Hargleroad, by Deed dated January 6, 1984 and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania, in Deed Book N, Vol. 30, Page 233, granted and conveyed unto John S. Vayanos and Evangeline Vayanos. The said Evangeline Yayanos, by Order of Court dated January 8, 2001 was removed as owner of properties located at 213 North Prince Street and 36 South Queen Street, Shippensburg, Pennsylvania pursuant to a Motion for Relief filed by John S. Vayanos in the United States Bankruptcy Court for the Middle District of Pennsylvania. ORRSTOWN BANK 77 EAST K1NG STREET SHIPPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant 1N THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- 946 CIVIL TERM MORTGAGE FORECLOSURE AFFIDAVIT OF NON-MILITARY SERVICE COMMONWEALTH OF PENNSYLVANIA SS. COUNTY OF CUMBERLAND David A. Baric, Esquire, being duly sworn according to law, deposes and says that he is counsel to the Plaintiff herein, and as such states the following: 1. The Defendant, John S. Vayanos, is not in the military or naval service of the United States or its allies, or otherwise within the provisions of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended. 2. The Defendant, John S. Vayanos, is more than 21 years of age and has a current address of 213 North Prince Street, Shippensburg, Pennsylvania 17257. 3. He has ascertained the above informatio~bypersonal inv~tigatio/a~makes this Affidavit with due authority. Sworn to agd subscribed before me this ~ o14'1 day of . ,~J~, 2003. ~ota ~ Se, s! J 8~rusle ~,. ........ J MY Gomrmss~on Expires [~ ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- 946 CIVIL TERM MORTGAGE FORECLOSURE CERTIFICATION OF ADDRESSES COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND SS. David A. Baric, Esquire, being duly sworn according to law, deposes and says that to the best of his knowledge, information and belief, the addresses of the judgment creditor and the judgment debtor in the above-captioned case are as follows: Plaintiff.' Orrstown Bank 77 East King Street Shippensburg, Pennsylvania 17257 Sworn to and subscribed before me this~day o~, 2003. Defendant: John S. Vayanos 213 North Prince Street wS,~hippensburg, Pennsylvania ,,J,-T'~57 David A. Baric, Esquire WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) NO 03-946 Civil COUNTY OF CUMBERLAND) CIVIL ACTION - LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due ORRSTOW3N BANK, Plaintiff (s) From JOHN S. VAYANOS (1) You are directed to levy upon the properly of the defendant (s)and to sell SEE LEGAL DESCRIPTION. (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of GARNISHEE(S) as follows: and to notify the garnishee(s) that: (a) an attachmem has been issued; (h) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof; (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are ffirected to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due $236,473.44 L.L. $.50 Interest FROM 8/6/03 TO 12/10/03 - (PER DIEM - $34.52) Atty's Corem % Due Prothy Atty Paid $138.80 Other Costs Plaintiff Paid Date: SEPTEMBER 9, 2003 (Se~) REQUESTING PARTY: Name DAVID A. BARIC, ESQUIRE Address: O'BRIEN, BARIC & SCHERER 17 WEST SOUTH STREET CARLISLE, PA 17013 Attorney for: PLAINTIFF Telephone: 717-249-6873 Supreme Court ID No. 44853 $1.00 CURTIS R. LONG Prothonot~ Deputy ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- 946 CWIL TERM MORTGAGE FORECLOSURE CERTIFICATES OF MAILING NOTICE OF SALE UNDER PA.R.C.P. 3129.2 U.S. POSTAL SERVICE CERTIFICATE OF MAILINg__ MAY BE USED FOR DOMEST[C AND INTERNATIONAL MAIL, DOES N~II' ~ PROVIDE FOR iNSURANCE--POSTMASTER One piece of ordinary mail addressed to: PS Form 3~17, ~ar. 1989 U.S* POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR OOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE--POSTMASTER Received From: One piece of ordinary mail addressed to: PS Form S817, U.S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE--POSTMASTER Received From: PS Form 3817, Mar. 1989 Orrstown Bank VS John S. Vayanos In the Court of Common Pleas of Cumberland County, Pennsylvania Writ No. 2003-946 Civil Term R. Thomas Kline, Sheriff, who being duly sworn according to law, states this writ is returned STAYED pursuant to instructions from Attorney David Baric. Sheriff's Costs: Docketing 30.00 Poundage 544.90 Advertising 30.00 Posting Handbills 30.00 Levy 30.00 Surcharge 40.00 Service 13.80 Law Journal 837.35 Patriot News 562.00 Law Library .50 Prothonotary 1.00 Share of Bills 28.90 $2148,45 paid by attorney 01/16/04 Sworn and subscribed to before me, ~" ,f~' This ~ _ day o ~,~, ,~ ,. ~ ~'ktz R. Thomas Kline, Sheriff 2004, A.D. ~ ~,).~,~ c~ By Prothonotary Real Estttte Deputy THE PATRIOT NEWS THE SUNDAY PATRIOT NEWS Proof of Publication Under Ac~ No. 587, Approvsd May 16, 1929 Commonwealth of Pennsylvania, County of Dauphin} ss Joseph A. Dennison, being duly sworn according to law, deposes and says: That he is the Asst. Controller of The Patriot News Co., a corporation organized and existing under the laws of the Commonwealth of Pennsylvania, with its principal office and place of business at 812 to 818 Market Street, in the City of Harrisburg, County of Dauphin, State of Pennsylvania, owner and publisher of The Patriot-News and The Sunday Patriot-News newspapers of general circulation, printed and published at 812 to 818 Market Street, in the City, County and State aforesaid; that The Patriot-News and The Sunday Patriot-News were established March 4th, 1854, and September 18th, 1949, respectively, and all have been continuously published ever since; That the printed notice or publication which is securely attached hereto is exactly as printed and published in their regular daily and/or Sunday/ Metro editions which appeared on the 28th day(s) of October and the 4th and 11th day(s) of November 2003. That neither he nor said Company is interested in the subject matter of said printed notice or advertising, and that all of the allegations of this statement as to the time, place and character of publication are true; and That he has personal knowledge of the facts aforesaid and is duly authorized and empowered to verify this statement on behalf of The Patriot-News Co. aforesaid by virtue and pursuant to a resolution unanimously passed and adopted severally by the stockholders and board of directors of the said Company and subsequently duly recorded in the office for the Recording of Deeds in and for said County of Dauphin in Miscellaneous Book "M", PUBLICATION S'~;;';~ ................ ~r.'Pen~e~ ~a~n ~s My commission expires June 6, 2006 CUMBERLAND COUNTY SHERIFFS OFFICE CUMBERLAND COU N'~'Y COURTHOUSE CARLISLE, PA. 17013 Statement of Advertising Costs To THE PATRIOT-NEWS CO., Dr. For publishing the notice or publication attached hereto on the above stated dates Total $ 562.00 Publisher's Receipt for Advertising Cost The Patriot News Co., publisher of The Patriot-News and The Sunday Patriot-News, newspapers of general circulation, hereby acknowledge receipt of the aforesaid notice and publication costs and certifies that the same have been duly paid. by lohn S. Vayanos in the United Bank~ptey Court for the Middle Pennsylvsmia. PARCEL NO,: 36-33-1867-058. TRAUI' biO. 3: ALL that ce~aln lot of with the buildings and improvements ~ CumberlaM Count described as follows: seventy-five ('75) feet, more or less. KNOWN as No, 36 South ~ BEING the same of the Recorder of Deeds in and for C County, Pennsylvania, in Deed Book ~ Page 233 granted and conveyed by Iohn S. Yayanos in thd Bankruptcy Court for the Middle Penasylvania. PARCEL g32-34-2413-045. r I PROOF OF PUBLICATION OF NOTICE IN CUMBERLAND LAW JOURNAL (Under Act No. 587, approved May 16, 1929), P. L.1784 STATE OF PENNSYLVANIA : : COUNTY OF CUMBERLAND : SS. Lisa Marie Coyne, Esquire, Editor of the Cumberland Law Journal, of the County and State aforesaid, being duly sworn, according to law, deposes and says that the Cumberland Law Journal, a legal periodical published in the Borough of Carlisle in the County and State aforesaid, was established January 2, 1952, and designated by the local courts as the official legal periodical for the publication of all legal notices, and has, since January 2, 1952, been regularly issued weekly in the said County, and that the printed notice or publication attached hereto is exactly the same as was printed in the regular editions and issues of the said Cumberland Law Journal on the following dates, viz: OCTOBER 17, 24, 31, 2003 Affiant further deposes that he is authorized to verify this statement by the Cumberland Law Journal, a legal periodical of general circulation, and that he is not interested in the subject matter of the aforesaid notice or advertisement, and that all allegations in the foregoing statements as to time, place and character of publication are true. REAL ESTATE SAI~ NO. 51 Writ No. 2003-946 Civil Orrstown Bank V$, John S. Vayanos Atty.: David Baric LEGAL DESCIRIPTION TRACT NO. 1: parcel No. 36-33- 1867-058. ALL that certain tract of land with the buflcling$ thereon erected, situ- ate in Shippensburg Township. Cumberland County, Pennsylvania, bounded and described as follows: BEGINNING at a point in North Prince Street, formerly known as Nornml Avenue; thence by land for~ raerly of Emily Jamlson, now or for- merly of Marjorie E. Hosfeld, North 90 degrees East 26.5 perches to a post; thence by lands formerly of said Emily Jamison and John Hosfeld. now or formerly of C~orge W. Hosfeld, North 35 degrees West 21.1 perches, more or less, to an SWORN TO AND SUBSCRIBED before me this 31 day of OCTOBER, 2003_ C~isie Bom, Cumbedand County My Commission ER)ires March 5, 2005 Host'e!d, r~o~ oc i 35 degrees West W. Hosfekl, North merly · ' ~, more or less, [o said North m~d conveyed to ~orge W. Hosl~Id the lkd tkee gber~ ~d ri~t at ~1 hereby gra~ted for ~y ~d ~1 9ur- gr~md, merly of W~lians Ad~s: then~ be conveyed to Sara Marjorie tioned point a~d place or beginn~g. feet or 1.I53 acres according to b~g To~p. S}~p~b~g. Pea- sylvan. ~rothy O. RusseB, by ~ed dated ~d for Cum~r~d CounW, Penm John S. Vayanos and Evageline Vay~os. ~e sad Emge~e Vay- lIc alley at line of land now or for merly of Will~nlaS Addams: thenoe w~th the southwestern side of said pt/bile alley, North 53 degrees 01 minute 50 seconds East, 173,06 lket to a spike at line of land of The West End Land Company of Ship- pensburg; thence with the same. South 42 degrees 20 minutes East, 276.53 feet to an iron pm at line of Parcel 'B' of The West End Land Company of Shippensburg, about to be conveyed to Sara Marjorie Hosfeld and Charlotte Joanrie Tarpy: thence with the same, South 55 degrees 43 minutes 27 seconds West, 148.8l feet to an iron pin at line of other lamd now or lbrmerly of Sara Marjorie Hosfeld and Char lotte Joanne Tarpy: thence continu- Lrlg with the same, South 55 degrees 43 minutes 27 seconds West, 50 feet to an iron pin at line of land now or formerly of Hilton A. Russell; thence with the same, North 37 degrees 02 minutes 17 seconds West, 255.15 feet to an iron pin at line of lalld now or formerly of Wil- liam Addams; thence with the same, North 37 degrees 02 minutes 17 seconds West, 10.82 feet to a~l iron pin on the southwestern side of a 14 foot public alley, the first men tioned point and place of beginning. CONTAINING 50,233.32 square feet or 1. 153 acres according.to survey and draft of William A. Brindle Associates, R.S., dated Feb- ma~ 6, 1975 and revised August 25, 1975, SAID two tracts being known as 213 North Prince Street, Shippens- burg Township. Shippensburg, Petal- sylvania. BEING the same premises which Dorothy O. Russell, by Deed dated August 6, 1981 and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Penn- sylvania, in Deed Book N. Vol. 29. Page 61. granted and conveyed unto ~John S. Vayanos and Evagellne Vayanos. The said Evan~line Vay- altos, by Order of Court dated Janu- ary 8, 200l was removed as owner of properties located at 213 North Prince Street and 36 South Queen Street. Shippensburg, Pennsylvania pursuant to a Motion for Relief Bled by John S. Vayanos in the United States Bankruptcy Court for the Middle District of Pennsylvania. TRACT NO. 3: parcel No. 32-34- 2413-045. ALL tlmt certain lot of ground with the buildings and improvements thereon erected, situate on the cot ncr of Orange and Queen Streets ha the Borough of Shippensburg, Cum- berland County, Pennsylvania, bounded and described as follows: ON the East by Queen Street; on the North by property now or formerly of Mrs. Emma Scarers, now or tbrmerly of Percy W. Fai'ner; on the West by property now or for- merly of John E, Bohcr. now or for- merly of William P~ Farner: on the South Orange Street. SAID lot having a frontage on Queen Street of fifty {50) feet, more or less, and an even depth of ~eventy-five (75] feet, mom or less. KNOWN as No. 36 South Queen Street. BEING the same premises which Eleanor M. Hargieroad arid Kurt M. Hargleroad, by Deed dated Janu- ary 6. 1984 and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Penn- sylvania, in Deed Book N, Vol. 30, Page 233, granted and conveyed unto John S. Vayanos and Evange.- Ii-ne Vayanos. The said Evangeline Vayanos, by Order of Court dated January 8, 2001 was removed a~ owner of properties located at 213 North Prince Street and 36 South Queen Street, Shippensburg. Perm- sylvania pursuant to a Motion for Relief filed by John S. Vayanos in West, 148.81 feet to mx iron pin at line of other lea~d now or lbrmeriy of Sara Marjorie Hosfeld and Char- hug with the same, South 55 degrees 43 minutes 27 seconds West, 50 feet to an iron pin at line of lax~d now or formerly of Hilton A. Russell; thence with the same. North 37 degrees 02 minutes 17 seconds West, 255.15 l~et to m~ iron pin at line o[ land now or formerly of Wil- liam Adda~rrl~: thence with the same, North ,?,7 degrees 02 minutes 17 seconds West. 10.82 feet to an iron pin on the southwestern side of a 14 foot public a/Icy, the first men- tioned point and place of beginning. CONTAINING 50.233.B2 square feet or 1. lSB acres according, to survey and draft of William A. Brindle Ass~eiatea, R.S.. dated Feb- ruary 6. 1975 and revised August 25, 1975. SAID Ca, o tracts being known as 2lB North Prince Street, Shippens- burg Township. Shippensburg, Pexm~ BEING the same premises which Dorothy O. Russell. by Deed dated August 6. 1981 and recorded in the Office of the Recorder of Deeds in and for Cumberland County. Penn* sylvar~a, in Deed Book N. Vol. 29, Page 61. granted/md conveyed u~to -John S. Vayanos and Evageline Vayanos. Tl'.e said Evangeline Vay- andS, by Order of Court dated Janu~ ary 8, 2001 was removed as owner of properties located at 213 North Prince Street and 36 South Queen Street, Shippensburg, Pennsylvania pursumut to a Motion for Relief filed by John S. Vayanos in the United States Bankruptcy Court for the Middle District of Pennsylvania. TRACT NO. 3: Parcel No. 32-34- 2413-045. ALL that cer to, hu lot of ground with the buildings and improvements thereon erected, situate on the cor- ner of Orange and Queen Streets Ln the Borough of Shlppcnsburg. Cum- berland County. Pennsylvania, bounded m~d described as follows: ON thc East by Queen Street; on the North by property now or formerly of Mrs. Emma Scarers, now or formerly of Percy W. Father; on the West by property now or for- merly of dohn E. Boher. now or for- merly of William g, Farner: on the South Ora~ge Street. SAID lot having a frontage on Queen Street of fifty (50) feet. more or less. and an even depth of seventy-five (751 feet, more or less. KNOWN as No. B6 South Queen Street. BE1NG the same premises which Eleanor M. Hargleroad aJ~d Kurt M. HargleroaO. by Deed dated Janu- ary 6. 1984 and recorded in the Office of the Recorder of Deeds in and for Ct~nberland County. Penn- sylvania, in Deed Book N. Vol. 30, Page 2BE, granted and conveyed unto John $. Vayanos ox~d Evang? line Vayanos. The said Evangeline Vayanos. by Order of Court dated January 8, 2001 was removed a~ owner of properties located at 213 North Prince Street and 36 South Queen Street. Shippensburg, Perm- sylvania pursuant to a Motion for Relief ~ed by John S. Vay~nos In the United States Bankruptcy Court for the Middle District of PennsyP var, ia. ORRSTOWN BANK 77 EAST KING STREET SH1PPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant 1N THE COURT OF COMMON PLEAS OF CUMBERLAND C. OUNTY, PENNSYLVANIA NO. 2003- 946 CIVIL TERM MORTGAGE FO[LECLOSURE PRAECIPE TO VACATE JUDGMENT WITHOUT PREJUDICE TO: CURTIS LONG, PROTHONOTARY: Please vacate the judgment which was entered on August 6, 2003 against John S. Vayanos, Defendant, in the amount of $236,473.44, relative to the instant matter, without prejudice, upon payment of your costs only. Respectfully submitted, O'BRIEN, BARI(.' & SCHERE]~'// David A. Baric, Esquire I.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney far Plaintiff ORRSTOWN BANK 77 EAST KING STREET SHIPPENSBURG, PA 17257, Plaintiff JOHN S. VAYANOS 213 NORTH PRINCE STREET SHIPPENSBURG, PA 17257, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 2003- 946 CIVIL TERM MORTGAGE FORECLOSURE CERTIFICATE OF SERVICE I hereby certify that on July 1, 2004, I, David A. Baric, Esquire, of O'Brien, Baric & Scherer did serve a copy of the Praecipe To Vacate Judgment Without Prejudice, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Karl Rominger Esquire Rominger Law Offices 155 South Hanover Street /Q Carlisle, Pennsylvania 170413-3437 A / / David A. Baric, Esquire