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HomeMy WebLinkAbout03-1207COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW COMMUNITY FroST FUND, Plaintiff Vo JOSEPH E. GREGORY, dba Dry Solutions, Defendant CONFESSION OF JUDGMENT PRAECIPE FOR ENTRY OF JUDGMENT TO THE PROTHONOTARY: Please enter judgment in this action against Defendant, Joseph E. Gregory, dba Dry Solutions, as follows: (a) Principal due under Promissory $ 4,315.48 Note dated April 26, 2002 (b) Interest due on Promissory $ 151.55 Note through February 28, 2003, plus interest thereafter at the rate of $1.32 per diem (c) Plaintiff's Fees $ 46.54 (d) Attomeys' fees provided $ 500.00 under Promissory Note (e) Late charges $ 69.81 TOTAL $ 5,083.38 March ~__~, 2003 BLUMENSTOCK & BLUMENSTOCK, P.C. Charles F. Blumenstock, Jr. ' ~ Attomey I.D. # 41320 255 Butler Avenue, Suite 103 Lancaster, PA 17601 (717) 290-1640 Attorneys for Plaintiff JUDGMENT AND ENTRY OF DAMAGES Judgment is entered for Plaintiff, COMMUNITY FIRST FUND, and against Defendant, JOSEPH E. GREGORY, in the amount of $5,083.38 plus interest from March 11, 2003 through and after the entry of judgment at the rate of $1.32 per diem. PROTHONOTARY OF CUMBERLAND COUNTY Dated: March __, 2003 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW COMMUNITY FIRST FUND, Plaintiff JOSEPH E. GREGORY, dba Dry Solutions, Defendant No. O3 .. .- : .. CONFESSION OF JUDGMENT Pursuant to the authority contained in the Warrant of Attorney, a true and correct copy of which is attached to the Complaint filed in this action, I appear for the Defendant and confess judgement in favor of Plaintiff and against Defendant, as follows: (a) Principal due under Promissory $ 4,315.48 Note dated April 26, 2002 (b) Interest due on Promissory Note $ 151.55 through March 10, 2003 plus interest thereafter at the rate of $1.32 per diem (c) PlaintiWs fees $ 46.54 (d) Attorneys' fees provided $ 500.00 under Promissory Note (e) Late charges TOTAL $ 69.81 $ 5,083.38 Date: March }__~, 2003 BLUMENSTOCK & BLUMENSTOCK, P.C. Chfirles F. Blu~eh[t-ock, Jr. ~ v / Attorneys for Plaintiff (Appearing for Defendant under the Warrant of Attorney) COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW COMMUNITY FIRST FUND, Plaintiff JOSEPH E. GREGORY, dba Dry Solutions, Defendant No. rD2 - I.,ko7 CONFESSION OF JUDGMENT COMPLAINT CONFESSION OF JUDGMENT UNDER PA. R.C.P. 2951 1. Plaintiff is Community First Fund, a nonprofit corporation with offices located at 44 North Queen Street, Lancaster, Lancaster County, Pennsylvania, 17608- 0524. 2. Defendant is Joseph E. Gregory, an adult individual with a last known residential and business address at 1402 Simpson Ferry Road, New Cumberland, Cumberland County, Pennsylvania, 17070. 3. On or about April 26, 2002, Defendant executed a Promissory Note ("the Note") in the principal amount of $5,000.00. The Note evidenced a loan made by Plaintiff to Defendant for use in his carpet cleaning business and provided that principal and interest was due and payable on demand and, absent demand, in twenty-four (24) monthly installments of $232.70. A true and correct copy of the Note is attached hereto as Exhibit "A", and incorporated by reference herein. 4. Defendant defaulted on the Note by failing to make payments when due. 5. On December 3, 2002, and January 3, 2003, demands were made upon Defendant for payments due under the Note. True and correct copies of the demand letters dated December 3, 2002 and January 3, 2003 are attached hereto as Exhibits "B" and "C", respectively, and incorporated by reference herein. 6. Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. 7. Judgment has not been entered against Defendant on the Note in any jurisdiction. 8. The Note has not been assigned. 9. The amount due by Defendant to Plaintiff under the Note is $5,083.38 as of March 11, 2003 calculated as follows: (a) Principal $ 4,315.48 (b) Interest due on Note $ 151.55 through February 28, 2003, plus interest thereafter at the rate of $1.32 per diem (c) Fees of Plaintiff $ 46.54 (d) Attorneys' fees provided $ 500.00 under the Note (e) Late charges $ 69.81 TOTAL $ 5,083.38 10. Judgment is demanded as authorized by the Warrant of Attorney contained in Exhibit "A". 11. The Warrant of Attorney appearing in the Note is less than twenty years old. WHEREFORE, Plaintiff, Community First Fund, demands judgment against Defendant, Joseph E. Gregory, dba Dry Solutions, in the sum of $ 5,083.38as authorized by the Wan'ant of Attorney appearing in the attached Note, together with interest fi.om March 11, 2003 through and after the date of judgment at the rate of $1.32 per diem, and costs. March li~, 2003 BLUMENSTOCK & BLUMENSTOCK, P.C. Charles F. Blum~"nstock, Jr.' Attorney I.D. # 41320 255 Butler Avenue, Suite 103 Lancaster, PA 17601 (717) 290-1640 Attorneys for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW COMMUNITY FIRST FUND, Plaintiff JOSEPH E. GREGORY, dba Dry Solutions, Defendant No. CONFESSION OF JUDGMENT VERIFICATION I, John Sider, verify that I am authorized to make this Verification on behalf of Plaintiff, COMMUNITY FIRST FUND; that the facts set forth in the foregoing Complaint for Confession of Judgment are true and correct to the best of my knowledge, information and belief; and that the Exhibits attached to the Complaint are true and correct copies of the original. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. Section 4904 relating to unsworn falsification to authorities. March ~ .2r;~2, 003 john ~'~ ~,r (- ~ Directl6r and Group Leader Small Business Lending and Counseling Community First Fund EXHIBIT A PROMISSORY NOTE Borrower: Joseph E. Gregory (SSN: 217-92-9344} Lender: 1402 Simpson Ferry Rd. New Cumberland, PA 17070 COMMUNITY FIRST FUND PO BOX 524 LANCASTER, PA 17608-0524 (717) 393-2351 Principal Amount: $5,000.00 Interest Rate: 10.990% Date of Note: April 26, 2002 Maturity Date: April 15, 2004 PROMISE TO PAY. Joseph E. Gregory ("Borrower") promises to pay to COMMUNITY RRST FUND ('Lender"), or order, in lawful money of the United States of America, the principal amount of Five Thousand & 00/100 Dollars ($5,000.00), together with interest at the rate of 10.990% per annum on the unpaid principal balance from April 25, 2002, until paid in full. PAYMENT. Borrower will pay this loan on demand. Payment in full is due immediately upon Lender's demand. If no demand is made, Borrower will pay this loan in 24 payments of $232.70 each payment. Borrower's first payment is due May 15, 2002, and all subsequent payments are due on the same day of each month after that. Borrower's final payment will be due on April 15, 2004, and will be for all principal and all accrued interest not yet paid. Payments include principal and interest. Unless otherwise agreed or required by applicable law, payments will be applied first to any unpaid collection costs and any late charges, then to any unpaid interest, and any remaining amount to principal. The annual interest rate for this Note is computed on a 365/360 basis; that is, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, Borrower may pay without 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 Borrower of Borrower's obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in Borrower's making fewer payments. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: COMMUNITY FIRST FUND, PO BOX 524 LANCASTER, PA 17608-0524. LATE CHARGE. If a payment is 5 days or more late, Borrower will be charged 10.000% of the regularly scheduled payment or $15.00, whichever is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, Lender, at its option, may, if permitted under applicable law, increase the interest rate on this Note 4.000 percentage points. The interest rate will not exceed the maximum rate permitted by applicable law. If judgment is entered in connection with this Note, interest will continue to accrue on this Note after judgment at the existing interest rate provided for in this Note. DEFAULT. Each of the following shall constitute an event of default {"Event of Default") under this Note: Payment Default. Borrower fails to make any payment when due under this Note. Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents. False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Death or Insolvency. The death of Borrower or the dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the lOan. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note. In the event of a death, 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 any Event of Default Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. Insecurity. Lender in good faith believes itself insecure. Cure Provisions. If any default, other than a default in payment is curable and if Borrower has 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 Borrower, after receiving written notice from Lender demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. PROMISSORY NOTE loan No: 2002-1029 (Continued) Page 2 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 Borrower will pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lend.er 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, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law. JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. GOVERNING LAW. This Note will be governed by, construed and enforced in accordance with federal law and the laws of the Commonwealth of Pennsylvania. This Note has been accepted by Lender in the Commonwealth of Pennsylvania. CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of LANCASTER County, Commonwealth of Pennsylvania. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower makes a payment on Borrower's loan and the check or preauthorized charge with which Borrower pays is later dishonored. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the debt against any and all such accounts, and, et Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph. BORROWER REPORTING REQUIRMENTS. Borrower agrees to additional provisions as follows: For as long as the loan is outstanding, borrower must provide internal monthly financial statements(including balance sheets) and year end tax returns and be available to discuss the progress of the business with Community First Fund Staff (or it's designee) on an "as needed basis". For as long as the loan is outstanding, borrower agrees to allow Community First Fund to share confidential information with partnering technical assistance providers on an "as needed basis" so that they may provide technical assistance to borrower business. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Please notify us if we report any inaccurate information about your account(s) to a consumer reporting agency. Your written notice describing the specific inaccuracy(les) should be sent to us at the following address: COMMUNITY FIRST FUND, PO BOX 524, LANCASTER, PA 17608-0524 GENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific default provisions or rights of Lender shall not preclude Lender's right to declare payment of this Note on its demand. Lender ma,/delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise 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 that Lender may renew or extend (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 interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. If any portion of this Note is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Note. CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATI'ORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER · SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORRO,~ER: ~ Joseph E. Gregory, Individually y Loa~ No: 2002-1029 PROMISSORY NOTE (Continued) LENDER: Page 3 EXHIBIT B December 3, 2002 Joseph E. Gregory Dry Solutions 1402 Simpson Fen'y Rd. New Cumberlm~d, PA 17070 Dear Joe! I regret to inform you that Conm~un/ty First Fund will be pursuing legal action aga/nst you in order to collect on the loan you have not been paying. A copy of the letter I sent you in October thanking you for agreeing to pay $100.00 by October 25th. Although you explicitly stated you would send it, you never did. It is especially unfortunate that you would let this happen to your personal credit history since your balance is less than $4,500.00. Though the legal process has already be~n, you may stop it by paying inunediately, in full, the amount of$4,411.20 We have tried to work with you Joe but it gets very difficult when you are not telling us the truth. / / ..... ~'~ Sider Director and Group Leader Small Business Lending and Counseling Knowled~le . Capital · Advocacy 140 Strawberry Square Harrisburg PA 17101 Phone: 717-920.1520 Fax717-920.1521 Web www.commfirstfund.org EXHIBIT C Blumenstock & Blumenstock, P.C. Attorneys at Law 255 Buffer Avenue Suite 103 Lancaster, PA 17601 Tel. 717-290-1640 Fax 717-290-1646 E-mail: contact@.blumenlaw.com www.blumenlaw.com Charles F. Blumenstock, Jr. Anita Henkel Blumenstock Mark N. Raezer James R. Wendelgass January 3, 2003 Mr. Joseph E. Gregory dba Dry Solutions 1402 Simpson Ferry Road New Cumberland, PA 17070 Re: Community First Fund, Loan #2002-1029 Dear Mr. Gregory: We represent Community First Fund (Community First), which has referred your matter to us for collection. As you know, you borrowed the principal mount of $5,000 fi:om Community First, which loan is evidencedby your promissory note dated April 26, 2002. You have failed to make payments when due despite previOus demand by Community First. Community First has accelerated your loan and now demands that you promptly pay to it all principal, interest, fees and costs and expenses needed to pay the loan in its entirety. Please either pay to Community First the amOunt of $4,437.13 (plus $1.32 per day fi:om January 3, 2003 until paid) within ten (10) days of the date of this letter or immediately contact John Sider at Community First (717-920-1520) to make satisfactory arrangements for payment of your indebtedness. If you fail to do so, Community First may proceed against you (including having us confess judgment against you) without further notice to you, thereby costing you additional legal fees and expenses. Very truly yours, BLUMENSTOCK & BLUMENSTOCK, P.C. Charles F. Blumenstock, Jr. t' CFB:flc Mr. John Sider Director and Group Leader Small Business Lending and Counseling OtmT OF C CUMB~'x- cwIL ACTION plaintiff ioSEPH E. GKEGORY, dba DrY SolutionS, Defendant coNFESSION OF iuDGMENT NOTICE uNDER RULE 2955.1 OF IUDGMENT AND ExECUTION TIIEREON To: IoSEPH E. GREGORY entered aRa'mst you and in favOr A ~udgment in the amount of $5,053.38 has been a confesSiOn of ~udgment of the plaintiff without any prior notice or hearing based on a written agreement or other paper allegedly signed by you. The sheriff may contained in other property to pay the ~udgment at any time after thirty (,30) days take your money or served on you. after the date on which this notice is or you may have legal rights to defeat the ~udgment or to prevent your money property from being taken, yOU MUST FILE A pETITION SEEKING RELIEF FRoM TIlE iuDGMENT AND pREsENT IT TO A IuDGE WITHIN THIRTY 00) DAYS AFTER THE DATE ON wHICH THIS NOTICE IS sERVED ON yOU OR yOU MAY LOSE yoUR RIGHTS. yOU sHoULD TAKE THIS pAPER TO YOUR LAWYER AT oNCE- IF yOU DO NOT I-IAYE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE sET FORTH BELOW TO FIND oUT WHERE Y' CAIq GET LEGAL HELP: Court Administrator Cumberland County Courthouse 4 th Floor, Carlisle, PA 17013 (717) 240-6200 BLUMENSTOCK & BLUMENSTOCK, P.C. March ~_~ 2003 Charles F. Blumenstock, Jr. t' Attorney I.D. # 41320 255 Butler Avenue, Suite 103 Lancaster, PA 17601 (717) 290-1640 Attorneys for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW COMMUNITY FIRST FUND, Plaintiff JOSEPH E. GREGORY, dba Dry Solutions, Defendant No. 03 -I o7 CONFESSION OF JUDGMENT AVERMENT OF DEFAULT COMMONWEALTH OF PENNSYLVANIA' · SSo COUNTY OF LANCASTER · John Sider, being duly sworn according to law, deposes and says that he is authorized to make this Affidavit on behalf of Plaintiff; and that Defendant executed the Promissory Note dated April 26, 2002, a true and correct copy of which is attached hereto and marked as Exhibit "A". Deponent also avers that Defendant is in default and that as of March 11[, 2003 there is $5,083.38 due and owing under the Promi~e(~ ~ John Slq r Direct6fand Group Leader Small Business Lending and Counseling Community First Fund Sworn to and subscribed before me this 1'2qa'~ day of March, 2003 NOTARIAL SEAL GLENDA J. MACHIA, No~?t~. City of Lancaster, Lancaster County ,,My Commission Expires March 2~, 200~ EXHIBIT A ·, . , , PRONItSSORY NOTE ' Lender: cOMMUNITY RRST FUND Borrower: Joseph E. Gre9°~/{SSN: 21-/.92-9344) LANCASTER, PA 17608-0524 1402 Simpson Ferry Rd. [717) 393-2351 New Cumberland, PA 17070 o Date of No. te: A.prii 2.6, ,2002 Principal Amount: $5,000.00 , . rder in lawful money of the _. -,e~- mtND ["Lender 1. or o '-- -~ -=to of 10.9900/0 · .- cOMMUNll¥ rinD- , -: .... r with interest a~ u (. Borrower"] prom,see to. p~Yn~ 1 O0 Dollars [$8,000.00)' togem= PROMISE TO PAY. Joseph E. Grego~/~mount of Five Thousana c~ United States of America, the principal Lender's demand. If no demand is made, Borrower per annum on the unpaid principal balance from April 25, 2002, until paid in full . . and will be for all principal and alt Borrower's first payment is due May 15, 2002, and all subsequent payments are PAYMENT· Borrower will pay this loan on demand. Payment in full is due immediately upon , a men[ wdl b . · utred -¥ aw.. The annual will pay this loan in 24 payments of $232.'/0 each payment. · · due on Aprd 15, 20.04. ~ .... licable law, payments will be principal and interest, u. ....o due on the same day of each month after that. Borrower s final p~ t,.t,== [he.vise agreed or r q principal. charges, then to any unpaid interest, and any remaining amount to accrued interest not yet paid. Payments include late · 'o of the annual interest rate over a year of 360 days, - Borrower will pay · otc is computed on a 365/360 basis; applied first to any unpaid collection costs and any that is, by applying .th.e rati.~ .... ;,,cinal balance is outstanding. ~-he actual number ot uays m= p,,,, · nterest rate for thts. N -- -~--~-al balance, multiplied by be ~ultiplied by the outstanding v ...... ~ designate in writing. earned fully as of the date of the roan and will not Lender at Lender's address shown above or at such other place as Lender may except as otherwise required by law. Except for the unless agreed PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earlier than ': ....... ~n chedute. Rather, early sub{ecl to refund upon early payment {whether voluntary or as a result of default}, it is due Early payments will not, foregoing, Borrower may pay without penalty all or a portion of the amount owed make payments un,er u~= ~o~ ..... t s to by Lender in writing, relieve Borrower of Borrower's obligation to continue to rrower agrees not to send Lender ........ making fewer paym. ents. B_o_r_. Lender may accept .~t.. - --~ --a,, result in t~orrow ...... ends such a paymm,, = -~ -ender Al · . 'nci al balance Due uz,~,, "~.~.;m;lnr lanouage. It Borrow=, o --- ~,,~her amount owed tu ~ · a ments wall.reduce .the. pn .P. ithout recourse , u, ......... .,, .'.~o;. oblioated to pay a,w ..... the payment constitutes P Y .... u~d "nard in full , w ...... ~ Borrower w,, ,~, ...... that indicates that eats ,,,o .... satisfaction of a disputed amount must be paym -~ Lender's rights under this No[e, a,,~ check or other payment instrument losing any o, communications concerning disputed amounts, including any ,,payment in full" of the amount owed or that is tendered with other conditions or limitations or as full mailed or delivered to: COMMUNITY FIRST FUND, PO BOX 524 LANCASTER, PA 17608-0524- LATE CHARGE· If a payment is B days or more late, Borrower will be charged 10.000% of the regularly scheduled payment or $15.00 · 'on may if permitted under applicabl whichever is greater· rate will not exceed tt~e ma~,, ........... INTEREST AFTER DEFAULT. Upon default, including fai ure to pay upon final maturity, Lender, at {ts optl , _ ' __..;~,,m rate oermitted b law, increase the interest rate on this Note 4.000 percentage po htS. The interest applicable law. If iudgmen[ is entered in connection with this Note, interest will continue to accrue on this Note after iudgmen[ at the existin interest rate provided for in this Note· DEFAULT. Each of the following shall constitute an event of default ("Event of Default") under this Note: Payment Default· Borrower fails to make any payment when due under this Note. Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreem( agreement, purchase between Lender and Borrower. Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents· · statement made or furnished to Lender by Borrower or on Borrower's behalf under ........ ee Any warranty, represent.at]on~..o_r_ = ..... material respect, either now or at the time made or furnished or becomes fJ Note or the related oocume-~=, ..... e the insolve or misleading at any time thereafter. Death or Insolvency. The death of Borrower or the dissolution or termination of Borrower's existence as a going business, any assignment for the benefit of creditors, any typ or insolvency laws by or against Borrower. of Borrower, the appointment of a receiver for any part of Borrower's property, thor by iudicial proceeding, se~f-I creditor workout, or the commencement of any proceeding under any bankruptcy orec)osure or forfe,ture pr_o_ceed'n~sn' ainst any collater_al secu.n~g_f ..... ~.,,~ Commencement of f __ ~ ...... oovernme-tal ag~.c.. ~ ,, ....... or this bvent of Creditor or For~mture t-ro~ ...... =-' an creditor of Borro.wer u,r_? -,,~ ~ ccounts, with LenD.er. nu,~.~-~..,+~ basis of the creon ......... ;~n or any other method, b.y_ ~Y-.--r'~ accounts mc{ual,n9 depos,t a ..... ~ of the claim wmc- ,= ..... · =~-== .... · ~---~-+ ~f any ct i~orrow=- - - '.~ _~;~;+,, or reasonao,e,~=-- - and deposits with Lender mom This includes a ga.rnls-,,,=,?~:+~. ~l';=nute bv Borrower as to me ....... ~ as not apply if there ~s a poco ~=, ..... ~. - notice of the creditor or forfeiture proceeding being an ade~ forfeiture proceeding and if Borrower gives Lender written a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, endorser, surety, or accommodation reserve or bond for the dispute, t~ L~hned · · ecomes incompetent, or revok preceding events occurs with respect to any guarantor, Affecting Guarantor. Any of th.,e surety, or accomm.odatton, P~.a.rtl ?'~4~te°r the event cfa death,, e..~ Events ....... ~--~o or any g~arantor, endorser~ .~_ ~-~+edness ev~dencea oy.~,,i~ · .~- ~Hi-ations arising under of an of the inoeut~u,,o~- .. ,-. .,,, nuaranty OTum ,,,-~-- __ -.~nn 't cheil thc vu = dis Y s the validity of, or.habdlty, unu=,, ~m~t e ouarantor's estate to assume ..... d~ Y puts ~ , .~,n e re ulred to, po ...... th _ prospect of paym option, may, uu~ ~, ...... t t3 q in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Adverse Change· A material adverse change occurs in Borrower's financial condition, or Lender believes the performance of this Note is impaired· of a breach InsecuritY- Lender in good faith believes itself insecure. Cure Provisions· If any default, other than a default in payment is curable and if Borrower has not been given a notice same provision of this Note within the preceding twelve {121 months, it may be cured {and no event of default wilt have occu Borrower, after receiving written notice from Lender demanding cure of such default: {1) cures the default within fifteen {15) days; if the cure requires more than fifteen {15) days. immediately initiates steps which Lender deems in Lender's sole discretion to be st to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as reasonably practical. Loan No: 2002-1029 PROMISSORY NOTE (Continued) Page 2 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 Borrower will pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will 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, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law. JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. GOVERNING LAW. This Note will be governed by, construed and enforced in accordance with federal law and the laws of the Commonwealth of Pennsylvania. This Note has been accepted by Lender in the Commonwealth of Pennsylvania. CHOICE OF VENUE. if there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of LANCASTER County, Commonwealth of Pennsylvania. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower makes a payment on Borrower's loan and the check or preauthorized charge with which Borrower pays is later dishonored. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the debt against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph. BORROWER REPORTING REQUIRMENTS. Borrower agrees to additional provisions as follows: For as long as the loan is outstanding, borrower must provide internal monthly financial statements(including balance sheets) and year end tax returns and be available to discuss the progress of the business with Community First Fund Staff (or it's designee) on an "as needed basis". For as long as the loan is outstanding, borrower agrees to allow Community First Fund to share confidential information with partnering technical assistance providers on an "as needed basis" so that they may provide technical assistance to borrower business. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Please notify us if we report any inaccurate information about your account(s) to a consumer reporting agency. Your written notice describing the specific inaccuracy(ies) should be sent to us at the fcllowing address: COMMUNITY FIRST FUND, PO BOX 524, LANCASTER, PA 17608-0524 GENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific default provisions or rights of Lender shall not preclude Lender's right to declare payment of this Note on its demand. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise 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 that Lender may renew or extend (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 interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. If any portion of this Note is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Note. CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TiME FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER · SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACI(NOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROW, ER: ..... Joseph E. Gregory, Individually Loan No: 2002-1029 PROMISSORY NOTE (Continued) Page 3 LENDER: COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW COMMUNITY FIRST FUND, Plaintiff Vo JOSEPH E. GREGORY, dba Dry Solutions, Defendant No. d)3 -/./O 7 CONFESSION OF JUDGMENT CERTIFICATION OF ADDRESSES Charles F. Blumenstock, Jr., Esquire, attorney for Community First Fund, certifies that the present address of Plaintiff is 44 North Queen Street, Lancaster, Pennsylvania 17608-0524; and that the last known address of Defendant Joseph E. Gregory is 1402 Simpson Ferry Road, New Cumberland, Pennsylvania 17070. Dated: March 1t~,2003 BLUMENSTOCK & BLUMENSTOCK, P.C. C4tiarles F. Bium~ff~tock, Jr. ' Attorneys for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW COMMUNITY FIRST FUND, Plaintiff Mo JOSEPH E. GREGORY, dba Dry Solutions, Defendant No. CONFESSION OF JUDGMENT AFFIDAVIT PURSUANT TO PA. R.C.P. 295 l(a)(2)(ii) COMMONWEALTH OF PENNSYLVANIA' :SS. COUNTY OF LANCASTER · John Sider, being duly sworn according to law, deposes and says that he is authorized to make this Affidavit on behalf of Plaintiff; and that judgrnent is not being entered by confession against a natural person in connection with a fionsumer credit transaction. John ~ DirectoY'and Group Leader Small Business Lending and Counseling Community First Fund Sworn to and subscribed before me this 12YV~ay of March, 2003 NOTARIAL SEAL GLENDA J. MACE[A, Norm7 Publl~ City of Lancaster, Lancaster County COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW COMMUNITY FIRST FUND, Plaintiff Vo JOSEPH E. GREGORY, dba Dry Solutions, Defendant No. -120 7 CONFESSION OF JUDGMENT AFFIDAVIT THAT ACTION DOES NOT ARISE OUT OF RETAIL INSTALLMENT CONTRACT COMMONWEALTH OF PENNSYLVANIA' :SS. COUNTY OF LANCASTER · John Sider, being duly sworn according to law, deposes and says that he is authorized to make this Affidavit for and on behalf of Community First Fund; and that this is not an action by a seller, holder or assignee afisj~~hnent sale, contract or account. John Siit~ ] ..~- - Director" md Group Leader Small Business Lending and Counseling Community First Fund Sworn to and subscribed before me this [ 2.r~day of March, 2003. OLENDA d. MACHIA, Not~l~_l~tl~ I City of Lancaster, Lancaster ~,ol, irlly I ¥ Commission Expires M¥oh ~r ~ I COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW COMMUNITY FIRST FUND, Plaintiff Vo JOSEPH E. GREGORY, dba Dry Solutions, Defendant CONFESSION OF JUDGMENT AFFIDAVIT OF BUSINESS TRANSACTION COMMONWEALTH OF PENNSYLVANIA · :SS. COUNTY OF LANCASTER · John Sider, being duly sworn according to law, deposes and says that he is authorized to make this Affidavit for and on behalf of Community First Fund and that the transaction upon which Judgment is being entered by Confes~on w~as a business and commercial transaction. ~ ~/~ John Side Director .d Group Leader Small Business Lending and Counseling Community First Fund Sworn to and subscribed before me this I~7''q day of March, 2003 ~ No~ Public GLENDA J. MACHIA, Notaly Pllbllc · Ci..ty of Lancaster, Lancaster County MY ~,;ornmission Expires Marffi 28, 2~ COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW COMMUNITY FIRST FUND, Plaintiff JOSEPH E. GREGORY, dba Dry Solutions, Defendant No. t52 --/207 CONFESSION OF JUDGMENT AFFIDAVIT OF NON-MILITARY SERVICE COMMONWEALTH OF PENNSYLVANIA · :SS. COUNTY OF LANCASTER · John Sider, being duly sworn according to law, deposes and says that he is a Loan and Technical Assistance Officer of Plaintiff, Community First Fund; that he is authorized to make this Affidavit for and on behalf of Plaintiff; and that to the best of his knowledge, Defendant, Joseph E. Gregory is not in the Military Service of the United States nor any State or Territory thereof or its allies, as defined in thCS lo diers' and Sailors' Civil Relief Act of 1940 and the amendment~~//~?~ John Sider ~ ~ Directorr a~. (~roupan roup Leader Small Business Lending and Counseling Community First Fund Sworn to and subscribed before me this I~~t'~ day Ci~ of ~n~ster, ~st~