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HomeMy WebLinkAbout01-0781 FX , J ~,-- ",~ . , ~v, ~"""; Prothonotary Court of Common Pleas Cumberland County Courthouse Carlisle, Pennsylvania No. 01- I'Jp I . C(.)~L~ LUZERNECOUNTYPENNSYLVANIA TO: Thomas C. Pszczolkowski 818 Indiana Avenue Lernoyne,PAl7043 AS PRESCRIBED BY LAW, YOU ARE NOTIFIED TIIAT A JUDGMENT HAS BEEN FILED IN TIllS OFFICE AGAINST YOU BY MELLON BANK, N.A. IN THE AMOUNT OF ONE HUNDRED THIRTY-ONE THOUSAND SEVEN HUNDRED FORTY- TWO AND 72/100 ($131,742.72) DOLL S, TOGETHER WITH INTEREST AND COSTS UNTIL PAID, ON THE-t!:!::: DAY OF ,2001. 423978.1 5001-4540 Yours truly, (],;d., -' J? - ~ PROTHONOTARY ~~€i;-;;i . . ~' "- - '.,' . >_',.i;,.,_;,', . Dll1i::'4i<, HOURIGAN, KLUGER & QUINN A PROFESSIONAL CORPORATION BY: Joseph E. Kluger, Esquire ATTORNEY FOR PLAINTIFF IDENTIFICATION NO. 56346 LAW OFFICES SUITE SEVEN HUNDRED MELLON !lANK CENTER WILKES-BARRE, PA 18701-1867 (570) 825-9401 MELLON BANK, N.A., IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY Plaintiff, Ys. CIVIL ACTION -- LAW IN CONFESSION OF JUDGMENT THOMAS C. PSZCZOLKOWSKI, Defendant. NO. 01 - '7 P J Go:l 2001 I~ CONFESSION OF JUDGMENT Pursuant to the authority set forth in the warrant of Attorney contained in the "original Guaranty and Surety Agreement, a true and correct copy of which is attached to the Complaint filed in this action, I appear for the Defendant and confess judgment in favor of the Plaintiff and against the Defendant as follows: 423982.1 5001-4540 - ,-- .', '4". . ._;.< ~- >,' - tb1il!!l~jji! 1. Principal balance on Note ................... $106,831.11 2. Interest to 1/19/01 ... . . . . . . . . . . . . . . . . . . . . . . . 2,897.82 3. Late Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.67 3. Attorney's fees (20%) . . . . . . . . . . . . . . . . . . . . . . . 21.957.12 TOTAL .............. $131,742.72 plus interest and costs until paid. HOURIGAN, KLUGER & QUINN, P.C. BY: (~ J~E. KLUGER, ESQUIRE Attorney for Defendant for the purpose of this Complaint; otherwise, Attorney for the Plaintiff ORDER AND NOW, this~ay of kLl:1c'~y 2001,judgment is entered in favor of the Plaintiff and against the Defendant, THOMAS C. PSZCZOLKOWSKI, in the amount of One Hundred Thirty-One Thousand Seven Hundred Forty-Two and 72/100 ($131,742.72) Dollars, together with interest and costs until paid. PROTHONOTARY BY:-.!J 1;d;; ~~-4 CLERK 423982.1 5001-4540 2 , ~. '-," ,_"d_ "--"- . "< ,,"., ~. "'-,L -'lli:--"j;j!,;, HOURIGAN, KLUGER & QUINN A PROFESSIONAL CORPORATION BY: Joseph E. Kluger, Esquire IDENTIFICATION NO. 56346 LAW OFFICES SUITE SEVEN HUNDRED MELLON BANK CENTER WILKES-BARRE, PA 18701-1867 1570\ 8~5-9401 ATTORNEY FOR PLAINTIFF MELLON BANK., N.A., IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY Plaintiff, vs. CIVIL ACTION -- LAW IN CONFESSION OF JUDGMENT THOMAS C. PSZCZOLKOWSKl, Defendant. NO. 2001 COMPLAINT IN CONFESSION OF JUDGMENT The Plaintiff, by and through its counsel, Hourigan, Kluger & Quinn, P. C., hereby complains of the Defendant as follows: 1. The Plaintiff, Mellon Bank, N .A., is a national banking association, conducting business as a bank, with a place of business at 8 West Market Street, Wilkes-Barre, Luzeme County, Pennsylvania. 423985.1 5001-4~40 ~" , ,-_. 1 - . .,.. '"',.~- '" ~-i~;f' 2. The Defendant, Thomas C. Pszczolkowski, is an adult individual having a last known address of 818 Indiana Avenue, Lemoyne, Cumberland County, Pennsylvania 17043. 3. On or about December 10, 1998, the Plaintiff made a loan to Harris Delivery Service, Inc. in the amount of One Hundred Twenty Thousand Dollars ($120,000.00), which loan is evidenced by a Note and Line of Credit Agreement (the "Note") dated December 10, 1998 and which Note was guaranteed pursuant to a Guaranty and Surety Agreement executed by the Defendant dated December 10, 1998 (the "Guaranty''). (A true and correct copy of said Note and Guaranty are collectively attached as Exhibit "A" and incorporated by reference.) 4. The aforementioned Note and Guaranty have not been assigned. 5. No judgment has heretofore been entered, in any jurisdiction, under the power to confess judgment in said Guaranty. 6. The Guaranty authorizes Plaintiff to confess judgment against the Defendant in favor of Plaintiff for the amount the Defendant is liable to Plaintiff, with interest, attorney's fees and with release of errors. 7. A default has occurred in that the Defendant has failed to comply with the terms conditions of the Note and Guaranty for failure to make timely payments whereby the Plaintiff declared the entire balance ofthe Note due and payable. 8. An Affidavit of Edward R. Walsh, Vice President of Plaintiff, is attached hereto as Exhibit "B" and incorporated herein as evidencing the debt due the Plaintiff. 423985.1 5001-4540 2 ~" " " ,.~ '~,,~- --.~-'-;['--': 9. Judgment by confession is not being entered against the Defendant in connection with a consumer credit transaction. 10. Consequently, the Defendants are indebted to Plaintiff as follows: I. Principal balance on Note ................... $106,831.11 2. Interestto 1/19/01.......................... 2,897.82 3. Late Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.67 3. Attorney's fees (20%) . . . . . . . . . . . . . . . . . . . . . . . 21.957.12 TOTAL .............. $131,742.72 plus interest and costs until paid. WHEREFORE, Plaintiff requests that the Prothonotary enter judgment against the Defendant, TIIOMAS C. PSZCZOLKOWSKl, in the amount of One Hundred Thirty-One Thousand Seven Hundred Forty-Two and 72/100 ($131,742.72) Dollars, together with interest and costs until paid. Respectfully submitted, HOURIGAN, KLUGER & QUINN, P.C. BY: Jos hE. Suite ellon Bank Center 8 West Market Street Wilkes-Barre, PA 18701-1867 423985.1 5001-4540 3 o Interest at a rate per annum which is % above Bank's Prime Rate, such rate to change from time to time as of the elIective date of each announced change in such Prime Rate, shall be paid when principal payments are due. Principal shall be paid in consecutive monthly installments equal to ll_th of the principal balance hereof outstanding on the Billing Date, commencing on . and continuing thereafter on the day of each month; provided, however, that each monthly installment of principal will be no lesS than $100.00, and provided further that the amount of the monthly installment of principal shall never exceed the amount of principal actually outstanding. The entire balance of the indebtedness, if not sooner paid, shall be due and payable on . (The day 01 . principal and/or interest shall be paid, as d=j ~ EXHIBIT Date".) i ~ Each borrowing will usually be processed on the same day that . w transfer instructions were given via the Business Banking Telephone GlI ~ The Billing Date shall be I, ~ the Due Date. ~ ~ ~=~ $ 120,000.00 Promise To Pay. FOR VALUE RECEIVED, and intending to be legally bOund, Undersigned, as defined below, promises to pay to: ~el1on Bank. N.A. ('Bank') or its order at lfarrisburq. Pennsv1vania" tbe sum of One Hundred Twentv Thousand and 00/100 Dollars ($ 120,000.00 l, or such lesser or greater principal amount as may be outstanding from time to time under the line of credit ("Line of Credit') established hereunder by Bank for the benefit of Undersigned, with .interest on the outstanding balance from the date of this Note and Line of Credit Agreement ("Note") at the rate(s) ("Contractual Rate(s)") and in accordance with the repayment schedule specified below. Borrowing Money. (please read carefully.) From the date hereof to but not including 12/15/2003 (the "Maturity Date"), l!QQersigned may borrow money from Bank through the Une of Credit, up to the amount shown above, by using Mellon Bank's Business Banking Telephone Hodine to access Undersigned's Une of Credit and to transfer funds to Undersigned's designated Mellon Checking Account. Subject to rules and regulations established by Bank from time to tillie, Undersigned may also borrow money from Bank by using such other means, if any, as Bank may provide for that purpose. Bank reserves the right to change or eliminate, without notice, any means by which Undersigned may borrow through the Line of Credit and to establish new means by which Undersigned may borrow. Undersigned may not use borrowings to make payments due under tbe Line of Credit or otber indebtedness in favor of Bank. Undersigned authorizes and directs Bank to deposit borrowings from Undersigned'S Line of Credit into Mellon Checking Account Number 8263485 . titled in thename(s) of R'n'R'RT~ nF.T.T~'RV - ~'R'RVTl'!F.~ TN't'!. Undersigned understands and agrees that, if any person or entity is authorized to sign on or otherwise use Undersigned's designated Mellon Checking Account or any deposit, checking or credit account linked with Undersigned's designated Mellon. Checking Account through Bank-by-Phone or Business Bank-by-Phone, such. person or entity is also authorized to borrow money through tbe Une of Credit by tbe Business Banking Telepbone Hotline. Undersigned further understands and agrees that Undersigned must repay all amounts bOrrowed by such. person(s) or entity(ies) asthoUgh Undersigned had bOrrowed such money. Undersigned understands that Bank, upon Undersigned's written request, will exclude any of Undersigned's Mellon Bank accounts from Bank-by.Phone or Business Bank-by-Pbone, and it is recommended that Undersigned make such request if necessary for the protection and security of Undersigned's accounts. If Bank allows borrowings above the amount shown above, all the terms of this Note will apply to those borrowings. By signing this Note, Undersigned hereby requests Bank to permit the borrowing of money through Undersigned's Line of Credit by the use of Mellon Bank's Business Banking Telephone Hotline and agrees that such bOrrowings may be effected by one pelllOll, ~ if any agreement, signature card, instructions or resolutions for the Line of Credit provide for borrowings over twO sigtllllUres or other special arrangements. ..~ , - ,~~ , -- -,.",~ .~ . ,-. < -, 'UiIl' '~"""'-".lIliIil; U;~lUlilliE.mijiJ,i~j)~'';;'I' tZ /10/ 9R Hotline, and be available in the designated Mellon Checking Account on the first business day following the day that transfer instructions were given via the Business Banking Telephone Hotline; however, Bank reserves the right to not make a borrowing available in the designated Mellon Checking Account until a date after the business day following the day that transfer instructions were given. For example, if transfer instructions are given on Monday, the borrowing will normalIy be available in Undersigned's designated Mellon Checking Account on Tuesday; however, Bank reserves the right to not make the borrowing available until Wednesday, or later. (This example assumes tbat Monday, Tuesday and Wednesday were all business days. Saturdays, Sundays, and any holidays or other. days on which Bank is generally .not open for business will not be considered business days.) Undersigned agrees that Bank may, at its option, record telephone calls made to effect a borrowing from the Une of Credit. Bank will not be liable for acting in good faith upon telephone orders or requests which Bank believes in its sole discretion were made or authorized by Undersigned. Bank will be entitled to presume that all telepbone callers who accurately identilY Undersigned's Une of Credit account number and the designated Mellon Checking Account number are authorized to conduct the transactions described in this Note, even if the designated Mellon Checking Account and/or any borrowing authorization or resolution provides for any covered action to be made by more than one person acting together, or for other special arrangements. Undersigned agrees that this Note amends any other agreement, instruction, resolution or authorization of Undersigned requiring more than one person to act with regard to the Line of Credit or the designated Mellon Checking Account or any other account linked to either the Line of Credit or the designated Mellon Checking Account. Undersigned further agrees that this Note amends (and will be deemed to override) any such agreement, instruction, resolution or authorization made or given by Undersigned in the future as such agreement, instruction, resolution or authorization would otherwise relate to this Note unless that agreement, instruction, resolution or. authorization is received by Bank and specifically indicates that it is intended to modilY this Note. All telephone instructions executed by Bank. in good faith and in accordance with the procedure described above will be binding upon Undersigned. Notwithstanding any other provision of this Note, Undersigned's ability to borrow money from Bank through the Line of Credit sball not be effective until an authorized representative of Bank haS signed this Note to evidence Bank's approval of the Line of Credit. ContnJClJJaJ Rate(s); Repayment Schedules. A .. ".~ -~ , ~.T_~_ ,.. ^"',~t!iia!ii' '0 . the Due Date. days before - The Billing Date shall be IiCI ~--cS;:" The principal balance hereof, together with all a~ed and unpaid interest, shall be paid on 12/15/2003, and mterest at a mte per annum which is O. 75% above Bank's Prime Rate, such mte to change from time to time as of the effective date of each announced change in such Prime Rate shall be paid on the 15TH day of each month commenc;;,g on 01/15/1999 o The principal balance hereof, together with all accrued and unpaid interest, shall be paid on , and interest at a mte per annum which is % above the CD Rate, such mte to change from time to time as of the effective date of each change in or resetting of the CD Rate, shall be paid on the day of each month commencing on . o In no event shall the rate charged on this Note exceed the lesser of % per annum or the highest rate permitted by applicable law. Undersigned agrees that Bank may, at its option, renew or extend the Une of Credit by sending or delivering notice of such renewal or extension to Undersigned. Such notice shall set foMb a new Maturity Date for the Une of Credit and any other changes to the terms and conditions of the Une of Credit Except as specified in such notice, all terms, conditions and provisions of this Note shall remain unchanged. Undersigned further agrees that Undersigned will be deemed to have accepted such renewal or extension if Undersigned (a) borrows money under the Line of Credit after the Maturity Date that was in effect prior to such renewal or extension, (b) makes any payments due under the Une of Credit after the Maturity Date that was in effect prior to such renewal or extension (other than payment in full of all indebtedness due under the Une of Credit), or (c) otherwise fails to notifY Bank in writing that Undersigned declines or rejects such renewal or extension within thirty (30) days after Bank sends or delivers notice of renewal or extension. Undersigned shall pay Bank concurrently with the execution and delivery hereof, or Undersigned previously bas paid Bank, an origination fee of $ 1,200.00, which includes the first year's annual servicing fee for the Une of Credit and a fee to compensate Bank for its underwriting, origination and administmtion of the Une of Credit. The origination fee shall be deemed fully earned by Bank on the date hereof. In addition, Undersigned will pay Bank an annual servicing fee of $ 75.00 , payable in advance, on or after each anniversary of the date hereof, to compensate Bank for its servicing and administmtion of the Une of Credit The fees described in this paragraph shall not be refunded and are in addition to any other fees, costs or expenses which may be due and payable hereunder. Unless Undersigned bas authorized Bank to take payments out of a Mellon Cbeclting Account, as set forth below, Undersigned will mail or deliver to Bank the amount billed by Bank each month. Undersigned will mail or deliver the payments so that Bank receives all payments no later than the due dates shown on the bills. IlG ~ Undersigned authorizes Bank to take all payments of principal and/or interest and/or other amounts due under this Note out of Undersigned's Mellon Cbeclting Account Number 8263485 . titled in the name(s) of HARRIS DELIVERY SERVICES. INC. on or after the due date each month. Undersigned will keep a sufficient balance in this account to cover the full amounts of all required payments. At its option, Bank may terminate Undersigned's ability to use this service. This authorization shall remain in effect until revoked by Undersigned in writing or until the Une of Credit is paid in full and terminated or until Bank has terminated Undersigned's ability to use this service, as the case may be. Prior to maturity, while this authorization is in effect and provided that Undersigned keeps a sufficient balance in this aexount to cover the full amounts of all required payments, the Contractual Rate(s) sball be reduced by 0.25% per annum. This authorization will be effective even tbough this Note and the account may be t1l1eel-io durerent versiOllS of Undersigned's name. If the original principal amount of this Note shown above is in excess of $10,000.00, or if Undersigned is a corpomtion, interest shall be calculated on the basis of a 36lk1ay year and actual days elapsed. If the original principal amount of this Note shown above is $10,000.00, or less, and Undersigned is not a corpomtion, interest shall be calculated on the basis of a 365-day year or 3~ year, as the case may be, and actual days elapsed. "Prime Rate" shall mean the interest mte per annum announced from time to time by Bank as its Prime Rate. The Prime Rate may be greater or less than other interest mtes charged by Bank to other borrowers and is not solely based or dependent upon the interest rate which Bank may charge any parti~lar borrower or class of borrowers. If a single certificate of deposit is held by Bank as collateral security for the indebtedness evidenced by this Note, as more fully described in the Assignment of Deposit Account expressly referring to this Note, "CD Rate" sball mean the interest mte paid by Bank on such certificate of deposit (the "Certificate"), said CD Rate to be reset by Bank at each renewal of the Certificate. If more than one certificate of deposit is held by Bank as collateral security for the indebtedness evidenced by this Note, as more fully described in the Assignment(s) of Deposit expressly referring to this Note, "CD Rate" shall mean the highest of the interest mtes paid by Bank on such certificates of deposit (the "Certificates"), said CD Rate to be reset at each renewal of each Certificate. Late Charge. If any payment (other than the final payment) is not paid within 15 calendar days after it is due, Undersigned will pay a late charge of the greater of $25.00, or three percent (3%) of the unpaid portion of the scheduled payment due (regardless of whether the payment due consists of principal and interest, principal only or interest only). If the final payment is not paid within 15 calendar days after it is due, Undersigned will pay a late charge of the greater of $25.00, or three percent (3%) of an amount equal to the unpaid portion of a hypothetical payment calculated in accordance with the repayment schedule described above as though such payment were not the final payment (regardless of whether the final payment consists. of principal and interest, principal only or interest only). Such late charge shall be in addition to any increase made to the Contractual Rate(s) applicable to the outstanding balance hereof as a result of maturity of this Note or otherwise, as well as in addition to any other applicable fees, charges and costs. Defauft Rete(s); Post-Meturity Rate(e). Upon the occurrence of any Event of Default (as defined in this Note), at Bank's option, interest shall a=ne at a rate equal to two percent (2%) per annum above the Contmctual Rate(s) until the earlier of the date that such Event of Default has been cured or until and including the date of maturity hereof. After maturity, whether by acceleration or otherwise, interest shall accrue at a rate two percent (2%) per annum above the Contractual Rate(s) until all sums due hereunder are paid. Interest shall continue to accrue after the entry of judgment (by confession or otherwise) at the Contractual Rate(s) until all sums due hereunder and/or under the judgment .are paid, except that after maturity or, at Bank's option, upon the occurrence of any Event of Default, interest shall accrue at a mte equal to two percent (2%) per annum above the Contractual Rate(s). Books and Records; TIme of Essence. So long as Bank is the holder hereof, Bank's books and records shall be presumed, except in the case of manifest error, to accurately evidence at all times all amounts outstanding under this Note and the date and amount of each advance and payment made pursuant hereto. n~__ .... ~& ~ "= ,L.. ., " - .' Thl> prompt and faithful performance of all of Undersigned's . obligations hereunder, including without limitation time of payment, .is of the essence oftbis Note. Security Interest, Setoff and AssIgnments. To secure all amounts at any time owing or payahle under this Note and Undersigned's ?bligations hereu~der, as weU. as to secure aU costs and expenses mcurred by BlIDk m the coUection or enforcement of this Note or the ~o.tCC!ion of any coUateral securing this Note (including without hDlltation all advances made by Bank for taxes levies insurance filing f~, and repairs to or maintenance df said' coUateral); Unde~gned hereby grants to BlIDk a security interest in, lien upon, and nght of setoff against, aU deposit accounts, credits, securities, moneys, or other property of Undersigned which may at any time be in the' possession of, delivered to, or owed by Bank, including any proceeds or returned or unearned premiums of insurance, and the proceeds of all the foregoing property. Other property, real or personal, may secure this Note, as set forth in other documents and agreements. Undersigned acknowledges and agrees that Undersigned shaU renew, or cause to be renewed, the Certificate(s), if any, until the indebtedness evidenced by this Note haS been paid in fun. Undersigned further agrees that Undersigned will execute, or will cause to be executed, upon demand by Bank any financing statements or other documents, including, without limitation, additional Assignments of Deposit Account, which Bank may deem necessary or desirable to evidence, perfect or maintain perfection of the security interests created in the Certificate(s) and any renewals, replacements and substitutions thereof. Additional Terms and Conditions 1. Covenants. Undersigned covenants and agrees that until all indebtedness evidenced hereby haS been paid in fuU and until Undersigned's ahility to borrow hereunder haS terminated, Undersigned shall: (a) maintain at all times a positive tangible net worth; (b) (t) have aU Enviromnental Permits necessary for the conduct of each of Undersigned's businesses and operations, (2) conduct each of Undersigned's businesses and operations in material compliance with all applicable Enviromnental Laws and Environmental Permits, (3) not permit to exist any event or condition that requires or is likely to require Undersigned under any Enviromnental Law to pay or expend funds by way of fines, judgments, damages, cleanup, remediation or the like in an aggregate amount, the payment of which could reasonably be expected to interfere substantial1y with normal operations of Undersigned or materially adversely affect the financial condition of Undersigned, (4) notify Bank promptly upon becoming aware of any pending or threatened proceeding, suit, investigation, allegation or inquiry regarding any alleged event or condition that, if resolved unfavorably to Undersigned or any of Undersigned's subSidiaries or amnates, is likely to cause Undersigned or any of its subSidiaries or alliliates under any Environmental Law to pay or expend funds by way of fines, judgments, damages, cleaning, remediation or the like, and (5) provide at Undersigned's cost, upon request by Bank, certifications, documentation, copies of pleadings and other information regarding the above, aU in form and content satisfactory to Bank; (c) conduct each of Undersigned's businesses and operations in material compliance with aU federal, state or local laWS, statutes, regulations, rules, ordinances, court or administrative orders or decrees, or private agreements or interpretations, now or hereafter in existence, directly or indirectly relating to or affecting Undersigned's businesses or operations; (d) use the proceeds of the Line of Credit evidenced hereby only for business purpose(s) specified to Bank at or prior to the execution hereof; (e) promptly notoy Bank in writing of any change in Undersigned's residence or alief Executive Office;. (f) purchase and maintaiQ policies of insurance (including flood insUl1lllCC) to protect against such riskS and casualties, and in such amounts, as shall be required by Bank and/or applicable law, which policies shaU (1) be in form and substance satisfactory to Bank, (2) at .-. ..;" ,,'I ~ ~ "-.'" ~~l\lr.itlJl~!@?;" Bank's option, designate Bank as loss payee and/or as additional insured, and/or contain a lender's loss payable endorsement, and (3) be (or ce~~tes evidencing same sbaU be) deposited with Bank; (g) (1) mamtaiD and keep proper records and bookS of account in conformance with generally accepted accounting principles applied on a consistent basis in which full, true and correct entries shaU be made of all Undersigned's dealings and business affairs, (2) provide to Bank at Undersigned's cost, upon Bank's request, financial or other information documentation or certifications (including without limitation annual and periodic balance sheets and income statements, personal financial state~~ts, federal inco,,:,e tax ~ms, inventory reports (including a descnplion of raw materials, finished goods and the aging thereof, as applicable), and accounts receivable and payable aging reports), aU in form and content satisfactory to Bank, and (3) permit, upon request by Bank, any of the officers, employees or representatives of Bank to visit and inspect any of Undersigned's properties and locations and to examine its bookS and records and discuss the affairs, finances and accounts of Undersigned with representatives thereof, as often as Bank may request; (b) provide additional collateral at such times and having such value as Bank may request, if Bank shall have reasonable grounds for believing that the value of the coUateral securing the indebtedness evidenced by this Note has become insufficient to secure said indebtedness; (i) pay, upon demand by Bank, (1) all costs and fees pertaining to the filing of any financing, continuation or termination statements, mortgages, satisfaction pieces, judgments and any other type of document which Bank deems necessary or desirable to be filed witb regard to security interests which secure the indebtedness evidenced hereby, regardless of whether such security interests were granted by Undersigned, and (2) aU costs and expenses incurred by Bank in connection with any collateral securing this Note (inCluding without limitation all advances made by BlIDk for taxes, levies, insurance, repairs to or maintenance of said coUateral, appraisal or valuation of said coUateral, and determination nf flood hazard), regardless of whether such coUateral is owned by Undersigned; and G) pay, upon demand by Bank, all amounts incurred by BlIDk in connection with any action or proceeding taken or commenced by Bank to enforce or collect this Note, including attorney's fees equal to the lesser of (1) 20% of the outstanding principal baJance and interest then due hereunder or $500.00, whichever is greater, or (2) the maximum amount permitted by law, plus attorney's costs and all costs of legal proceedings. 2 Events of Default. The occurrence of any of the following shall constitute an "Event of Default" bereunder: (a) default in payment or performance of any of the indebtedness or obligations evidenced by this Note or any other evidence of liability of Undersigned to Bank; (b) the breach by any Obligor (defined as Undersigned and each surety or ,guarantor or any of Undersigned's liabilities to Bank as well as any . person or entity granting Bank a security interest in property to secure any indebtedness evidenced bereby) of any covenant contained in this Note or in any separate security, guarantee or suretyship agreement between Bank and any Obligor, the occurrence of any default hereunder or under the terms of any such agreement, or the discovery by Bank of any false or misleading representation made by any Obligor herein or in any such agreement or in any other information submitted to Bank by any Obligor; (c) with respect to any Obligor: (1) death or incapacity of any individual or general partner, or (2) dissolution of any partnership or corporation; (d) any assignment for the benefit Of creditors by any Obligor; (e) insolvency of any Obligor; (f) the filing or commencement of any petition, action, case or proceeding, voluntary or involuntary, under any state or federal law regarding bankruptcy, insolvency, reorganization, receivership or dissolution, including the Bankruptcy Reform Act of 1978, as amended, by or against any Obligor; (g) default under the terms of any lease of or mortgage on the premises where real or personal property securing the indebtedness evidenced by this Note is located; (b) the garnishment, tax assessment, attacl1ment or taking by governmental authority or other creditor of any property of any Obligor which is. in Bank's possession or which constitutes security for any indebtedness . evidenced hereby; (i) entry of judgment against any Obligor in any court of record; (j) the assessment against any Obligor by the Internal Revenue Service or any other federal, state or local taxing Page30f6 ~~~. .~,~ -llil!lllU_~IIIIiIIII~ --.... . -.._..........~lIiil!." "1iII!il~""~,..iIW..I~I\lilI~ii!l~~j~i,likN'-,lilliIBj~!bil,~illlllliiwH1!JJ!~I~IiI;!j~1IIiIillillJ;lJllilljllliMMiI~~~ji authority of unpaid taxes, or the issuance of a levy or the entering of a lien in connection therewith; (It) change in control of or transfer of any interest in any Obligor (other than an Obligor wbo is an individual); Q) a determination by Bank, which determination shall be conclusive if made in good faith, tbat a material adverse change bas occurred in the financial or business condition of any Obligor; (m) tbe maturity of any life insurance pOlicy beld as collateral for tbe indebtedness evidenced by tbis Note by reason of tbe death of tbe insured or otberwise; (n) tbe revocation, termination, cancellation, denial of liability, or tbe attempt of any of the foregoing, by any Obligor of any obligation or liability whatsoever of tbe Obligor to Bank, inclllding without limitation any security, guarantee or suretyship agreement; or (0) default by Undersigned in the payment of any indebtedness of Undersigned or in tbe performance of any of Undersigned's obligations (other than indebtedness or obligations evidenced by this Note or any otber evidence of liability of Undersigned to BanI<) and sucb default shall continue for more than any applicable grace period. 3. Acceleration; Remedies. Upon tbe occurrence of any Event of Default: (a) at its option, BanI< may immediately and witbout notice temporarily stop allowing tbe borrowing of money, or close Undersigned's Line of Credit and permanently stop allowing the borrowing of money; (b) all amounts due under this Note, including the unpaid balance of principal and interest hereof, sball ~me immediately due and payable at the option of Bank, without any demand or notice whatsoever; and (c) BanI< may immediately and without demand exercise any of its rights and remedies granted herein, under applicable law, or whicb it may otberwise bave, against Undersigned or otherwise. Notwithstanding any provision to the contrary contained berein, upon tbe occurrence of an Event of Default as described in Section 2(1) bereof, all amounts due under this Note, including witbout limitation tbe unpaid balance of principal and interest hereof, shall ~me immediately due and payable, witbout any demand, notice or funlter action by Bani< whatsoever, and an action therefor shall immediately accrue. 4. Bank's Rights. Undersigned hereby authorizes Bank, and Bani< sball bave tbe continuing right, at its sole option and discretion, to: (a) do anything which Undersigned is required but fails to dO, and in particular Bani< may, if Undersigned fails to do so, obtain and pay any premiums payable on any policy of insurance required to be obtained or maintained hereunder; (b) direct any insurer to malee payment of any insurance proceeds, including any returned or unearned premiums, directly to Bank, and apply such moneys to any indebtedness or other amount evidenced hereby in such order or fashion as Bani< may elect; (C) pay the proceeds of the Line of Credit evidenced by this Note to any or all of the Undersigned individually or jointly, or to such other persan(s) as any of tbe Undersigned may direct; and (d) add any amounts paid or incurred by Bani< under Section l(i), Section 1(j) or Section 4(a) to the principal amount of the indebtedness evidenced by this Note. 5. Authorization to Borrow. Undersigned bereby represents, warrants, certifies and covenants as follows: (a) If Undersigned is a corporation, that the persan(s) signing below hold(s) tbe office(s) indicated below (and continue to bold such office(s) until Bani< bas received notice to the contrary in writing from Undersigned), and that the Board of Directors of Undersigned bas adopted resolutions providing that (1) the persan(s) executing and delivering this Note on behalf of Undersigned islare authorized (i) to incur indebtedness and obligations on behalf of Undersigned by borrowing or mal<ing other financial arrangements with Bani< from time to time, upon terma and conditions as tbey in their sole discretion deem desirable, (il) to malee, execute and deliver promissory notes, letter of credit agreements, security agreements, assignments, mortgages and all other documents required by Bani< in connection with the incurring of indehtedness or obligations, and (ill) to assign and pledge as coUateral security for any such indebtedness or obligations, now or hereafter existing, any real or personal property of Undersigned; (2) the actions of any one or more officers. of Undersigned in borrowing money from Bank heretofore for the acrount of Undersigned, in assigning or pledging any of Undersigned's property for tbe payment thereof, or in doing any other act in connection therewith are hereby ratified, confirmed and approved; and (3) said resolutions sball have the force of a continuing agreement with Bank, and shall be binding upon Undersigned until a resolution amending them shall have been duly and legally adopted and Bani< furnisbed a certified copy thereof. (b) If Undersigned is a partnership, that (1) Undersigned's name shown below is a trade name of Undersigned's firm used in the conduct of an unincorporated business owned entirely by the persans signing this Note on behalf of said partnership; (2) tbe partners executing and delivering this Note are authorized (i) to incur indebtedness and obligations on bebalf of Undersigned by borrowing from or malting other financing or credit accommodations witb BanI< from time to time, upon such termS and conditions as they in their sole discretion deem desirable, (il) to mal<e, execute, and deliver promissory notes, letter of credit agreements, security agreements, assignmeots, mortgages and all other documents required by BanI< in connection with the incurring of indebtedness or obligations, and (iii) to assign and pledge as collateral security fur any sucb indebtedness or obligations, now or bereafter existing, any real or personal property of Undersigned; (3) the actions of any one or more partners of Undersigned in borrowing money from Bani< beretofore for tbe acrount of Undersigned, in assigning or pledging any of Undersigned's property for the payment thereof, or in doing any other act in connection tberewith are hereby ratified, confirmed, and approved; (4) notwithstanding any modification or terminatioo of the power of any of tbe partners to represent said firm, whetber by expiration of the partnership agreement, by death or retirement of any partner, or tbe accession of one or more new partners, or otherwise, and notwithstanding any other notice thereof BanI< may receive, this authority sball continue to be binding upon each of the Undersigned individually and upon their death or retirement of any partner, or the accession of ODe or more new partners, or otherwise, and notwithstanding any other notice tbereof Bani< may receive, this authority shall continue to be binding upon each of the Undersigned individually and upon their legal representatives, and upon Undersigned and its successors, until Bani< bas received notice in writing to the contrary signed by one of the Undersigned or by Undersigned's duly authorized agent (Receipt of sucb notice will not relieve any partner of any liability arising from obligations incurred prior to Bank's receipt of such notice.), and (5) notbing herein shall be construed to limit the rights granted to a partner by law or by the partnersbip agreement, but all rights granted herein shall be in addition to such rights. 6. Definitions; Miscellaneous Provisions.(a) Undersigned waives (except wbere requested hereby) notice of action taken by Bani<; and hereby ratifies and confirms wbatever BanI< may do. Bani< sball be entitled to exercise any right notwithstanding any prior exercise, failure to exercise or delay in exercising any sucb rigbt. (b) Bani< shall retain tbe lien of any judgment entered on acrount of the indebtedness evidenced hereby. Undersigned warrants that Undersigned bas no defense whatsoever to any action or proceeding that may be brought to enforce or realize on any sucb judgment (c) If any provision bereof shall for any reason be held invalid or unenforceable, no other provision shall be affected thereby, and this Note sball be construed as if the inwlid or unenforceable provision bad never been a part of it. lbe descriptive beadings of this Note are for convenience only and shall not in any way affect the meaning or construction of any provision bereof. (d) lbe rights and privileges of BanI< contained in this Note shall inure to the benefit of its successors and assigns, and the duties of Undersigned shall hind all heirs, persanal representatives, successors and assigns. (e) This Note shall in all respects be governed by the laws of the state in which this Note is payable (except to the extent that federal law governs). (I) Page 40f6 ~, ,~ - ~,~. ~ -~ .l ~ "llIl"'" ~" ilIliI'K~lWli:, in the case of any partnership, all general partners of such partnership individually and roUectively, wbether or DOt such partners sign below. Uodersigned shaU each be jointly and severally bound by the terms bereof, and, with respeCt to any partnership executing Ibis Note, each general partner sba11 be bound bereby both in such general panner's individual and partnership capacities. 7. Affidavit of Business Loan. (Ibis Atlidavit is not applicable if Undersigned is a corporation.) Undersigned, being duly authorized, depose(s) and say(s) under penalty of perjury tbat Undersigned: (a) WAre engaged in business asO Owner(s), 0 General Partner(s) of: (name and nature of business) I :i II Ii i! l 'I Ii " II ii ,j r~ Vndersigned bereby irrevocably appoints Bank and each bolder bereof as Undersigned's attorney-in-fact to endorse Undersigned's name to any draft or check whicb may be payable to Undersigned in order to collect the proceeds of any insurance or any returned or unearned premiums in respeCt of any policies of insuraoce required to be maintained bereunder. Undersigned hereby acknowledges that Ibis appointment of Bank and each bolder hereof as attorney-in-fact is irrevocable and is roupled witb an interest. (g) Undersigned assigns to Bank aU moneys which may become payable on any policy of insurance required to be maintained under Ibis Note, including any returned or unearned premiums. (h) "EDvironmental Law" means any federal, state or local environmental law, statute, regulation, rule, ordinance, rourt or. administrative order or decree, or private agreement or interpretation, now or bereafter in existence, relating to tbe manufacture, distribution, labeling, use, haodling, rollection, storage, treatment, disposal or otherwise of Hazardous Substances, or in any way.relating to pollution or protection of the environment or public healtb. (i) "Environmental Permit" means any federal, state or local permit, license or authorization issued under or in connection with any Environmental Law. (j) "Hazardous Substances" means petroleum and petroleum products, radioactive materials, asbestos, radon, lead rontaining materials, sewage or any materials or substances defined as or included in tbe definition of "bazardous wastes,"". "hazardous substances," "hazardous materials," "toxic substances," "hazardous air pollutants," "toxic pollutants," "pollution," or terms of similar meaning, as those tenns are used in any Environmental Law. (k) "Chief Executive Office" means tbe place from whicb tbe main pan of tbe business operations of an entity is managed. (I) "Undersigned" refers individually and collectively to all makers of tbis Note, including, (b) Hereby make(s) application to Bank for a loan, the proceeds of which wiD be ulilized for the purpose(s) of (c) Exercise(s) actual rontrol over tbe managerial decisions of tbe business. (Remainder of page Intentionally left blank) Page 5 of6 r,-~~ " , , ,.~-. . J '" ~ frMl~<'-'~"-: 8, Confession of Judgmet1l. UNDERSIGNED HEREBY EMPOWERS TIIE PROTIIONOTARY OR ANY ATIORNEY OF ANY COURT OF RECORD TO APPEAR FOR UNDERSIGNED AND TO CONFESS roooMENT AS OFIEN AS NECESSARY AGAINST UNDERSIGNED IN FAVOR OF TIIE HOLDER HEREOF, REGARDLESS OF WHETIIER ANY EVENT OF DEFAULT liAS OCCURRED, AT ANY TIME AND AS OF ANY 1ERM, FOR TIIE OUTSTANDING PRINCIPAL BALANCE HEREOF PLUS lNTEREST DUE UNDER TIIE TERMS HEREOF AND AlL OTIIER AMOUNTS DUE HEREUNDER, TOGEIHER WlTII COSTS OF LEGAL PROCEEDINGS AND AN ATI'QRNEY'S COMMISSION EQUAL TO TIIE LESSER OF (A) 20% OF TIIE otlttrANDINO PlUNCIPAL BALANCE AND INttlU!ST TIIEN DUE HEREUNDER OR SSOO.OO, wHtCHEVER IS GREATER, OR (B) THE MAXIMUM AMOUNT PERMI.TfEI) BY LAW, WTIH RELEASE OF AlL ERRORS. UNDERSIGNED WAIVES AlL LAWS EXEMPTING REAL OR PERSONAL PROPERTY FROM EXECUTION. By signing this Note, Undersigned agrees to all terms ohhis Note and swears, under penalty of perjury (as set forth in 18 Pa.C.S.~ 4904, if governed by Pennsylvania law), to the AfJidavit of Business Loan (if completed) set forth in SectIon 7 ohhis Note. "");'11"'''''_''':' ,,,,.: _... ....""''Iwo,_.'..'. $*1~'IIm W::X<, I. '.. . ~ '> :4-<t.W... Mt~ ' .~:::;:, ~m::::1 ::i"?1.:::t:JN" :. .~. "'. ::;i"";;>::?":. \.-:m?~' .'. .' ~.::::.~.~ .>:,..:-:.:8*::-.11 .<< . m . :::.... X;" ..... . ,.'U.*. ",~~.,*.w,::m..,,,,,,,,...... *"". '^-.h .. <<. ,:;:*~..:::;:mi Witness the due execution hereof under seal. Attes:!Witne~s. ~, c_ " r-~"--- "-.. . x-....", '-. '- ". -~.~. ~ Busin~ss Address'~JkS C I.sZC1.0LKlflJS/:.i I /kE"IO~T S~y 111 SlOTH STREE1 LEMOYNE PA 17043 (Corpor~te Seal) Corporation or Other Entity. HARRIS DELIVERY SERVICES, INC. By. Signatur :itle)' " '")~~~::..." '=.~ (Seal) cz.o~ K614Ski 1~dE.tr (Seal) x By. (Sign~~Titl x By. (SignaturejTitle) x (Seal) By. (SignaturejTitle) x (Seal) Mellon Bank, NA Mellon Bank (DE) National Association CL462lS Rev.(10196) L.C 91961D9196 0275 B 23.2390369 1 c14626 (01) 121098,0857 Authorized Bank Signatllre to Evidence Bank's Approval of the Line of Credit Mellon Bank. N.A. By: (Signature and TI~ '.' ~ lll(}r~ I f.JlJJ2tD l f om Ad : L/IO\ C5t li'J.-p ViLo I CD no ,II rJ/~ nOI I Page 60f6 ]1IIl' . ~' ~ . With Power to Confess Judgment .IJ,"~..., > l>" . ....' ~ ,.'- -," < ~;. ! 1. To induce Mellon Bank. N.A. ("Bank") to transact business and to make credit accommodations with HARRIS DELIVERY SERVICES. INC. ("Debtor"), Undersigned, as defined below, does hereby guarantee, absolutely and unconditionally, and does hereby become surety for the full and timely payment of the principal of, and interest on, all obligations, debts, dues, instruments, liabilities, advances, judgments, damages, losses, claims, contracts, and choses m action, of whatever nature and however arising, past, present or future, and any and all extensions and renewals thereof in whole or in part, whether direct or indirect, absolute or contingent, voluntary or involuntary, now due or to become due, and whether owed to Bank from Debtor as drawer, maker, endorser, assignor, guarantor, surety, or otberwise whatsoever ("Obligations"), except this Guaranty and Suretyship Agreement ("Agreement") sball not extend to any obligation of Debtor wbich is defined as "consumer credit" by Federal ReseIVe Board Regulation Z, 12 C.F.R. ~ 226.1 et seq., and is not exempted from tbe application of that Regulation. Undersigned will reimburse Bank or any subsCCJuent holder hereof for all expenses incurred, and not reltDbursed by Debtor, in collection of any Obligations. If this Agreement is referred for collection to an attorney, Undersigned will pay lIn attorney's fee equal to the lesser of (a) 20% of the amount due or $500, whichever is greater, or (b) the maximum lImount permitted by law, and costs oflega! proceedings. The Undersigned's Obligations hereunder shall be payable at Bank's offices at aarrisburg, Pennsylvania 2. This is a guaranty of payment and not merely of collection. In the event of any default by Debtor in payment or otherwise on any Obligations, Undersigned will pay all or lIny portion of Obligations due or thereafter becomin~ due, whetber by acceleration or otherwise, without defalcation or offset of any kind, witbout Bank first being required to make demand upon Debtor or pursue any of its rights against Debtor, or against any otber person, including otber guarantors; and without being required to liquidate or realize on any collateral security. In any right of action lIccruing to Bank, Bank may elect to proceed against (a) Undersigned together witb Debtor; (b) Undersigned and Debtor individually; or (c) Undersigned only without having first commenced any action against Debtor. 3. Undersigned hereby grants to Bank a security interest in, lien upon, and right of setoff against, all deposit accounts, credits, securities, moneys or other personal property of Undersigned which may at any time be in tbe possession of, delivered to or owed by Bank, including any proceeds or returned or unearned premiums of insurance, and tbe proceeds of all tbe foregomg property. 4. Bank, witbout notice to Undersigned, may deal witb Obligations and any collateral security tberefor in sucb manner as Bank may deem advisable and may renew or extend Obligations or any part thereof; may accept partial payment, or settle, release, or compromise the same; may demand additional collateral security for Obligations, and substitute or release the same; and may comp'romise or settle with or release and discharge from liability any of Undersigned or any other guarantor of Obligations, or any other eerson liable to Bank for all or part of the Obligations; all without impairing the liability of Undersigned hereunder. 5. Undersigned hereby unconditionally waives: (a) notice of acceptance of this Agreement by Bank and any notice of the incurring by Debtor of any Obligations; (b) presentment for payment, notice of nonpayment, demand, protest, notice of protest and notice of dIShonor or default to any party including Undersigned; (c) all other notices to which Undersigned may be entitled but which may legally be waived; (d) demand for payment as a condition of liability under this Agreement; (e) any disability of Debtor or defense available to Debtor, including absence or cessation of Debtor's liability for any reason whatsoever; (I) any defense or circumstance wbich might otherwise constitute a legal or equitable discharge of a guarantor or surety; (g) all rights under any state or federal statute dealing WIth or affecting the rights of creditors; and (b) until Obligations are paid in full, any right to subrogation or . realization on any of Debtor's property, including participation in the marshalling of Debtor's assets. 6. This Guaranty and Suretyship Agreement and Undersigned's payment obligations hereunder sball continue to be effective or be reinstated, as the case may be, if at any time payment of any of Obligations is rescinded or must otberwise be restored or returned by Bank, all as though such payment had not been made. Bank's good faith determination as to whether a payment must be restored or returned shall be binding on Undersigned. 7. Until Obligations are paid in full, Undersigned hereby unconditionally subordinates to Obligations all present and future debts, liabilities, or obligations of Debtor to Undersigned, and all amounts due under such debts, liabilities, or obligations shall be collected and paid over to Bank on account of Obligations. Undersigned, at Bank's request, shall execute a subordination agreement in favor of Blink to further evidence and support the purpose of this Paragrapb 7. 8. Undersigned warrants 10 Bank: (a) no otber agreement, representation or special condition exists between Undersigned and Bank regarding the liability of Undersigned hereunder; nor does any understanding exist between Undersigned and Bank tbat tbe Obligations of Undersigned hereunder are or will be other than as set out herein; and (b) as of the date hereof Undersigned has no defense whatsoever to any action or proceeding that may be brought to enforce this Agreement. 9. Undersigned will provide financial information to Bank upon request, incruding balance sbeets and income statements, in form and content satisfactory to Bank. 10.. No failure or delay on tbe part of Bank in exercising any right, power or privilege bereunder shall operate as a waiver thereof; nor sball any single or partial exercise of Page 1 of2 I , I 1 1 :1 I II I I I I I 1 ii 'I I I 'I ~ 1 A r any right, power or privilege hereunder preclude any other or further exercise thereof, or the exercise of any other right, . power or privilege. Failure by Bank to insist upon strict performance hereof shall not constitute a relinquishment of Its right to demand strict performance at another time. Receipt by Bank of any payment by any person on Obligations, with knowledge of a aefault on any of Obligations or of a breach of this Agreement, or both, shall not be construed as a waiver of the default or breach. 11. TI:IIS AGREEMENT IS A CONTINUING GUARANTY AND SHALL CONTINUE IN FORCE UNTIL RECEIPT BY BANK OF WRITIEN NOTICE OF REVOCATION BY UNDERSIGNED OR RECEIPT OF NOTICE OF. UNDERSIGNED'S DEATH; AND IN EITHER OF SUCH EVENTS TI:IIS AGREEMENT SHALL CONTINUE IN EFFEcr NEVERTHELESS UNTIL ALL EXISTING OBUGATIONS OF DEBTOR TO BANK ARE PAID; IT BEING CONlEMPLA1ED TI:IAT DEBTOR MAY CREA1E OR INCUR OBUGATIONS, REPAY AND SUBSEQUENTLY CREA1E OR INCUR OBUGATIONS WITHOUT NOTICE TO UNDERSIGNED; AND UNDERSIGNED, BY PERMITTING THIS AGREEMENT TO REMAIN IN EFFEcr, SHALL BE BOUND. 12. This Agreement is freely assignable and transferable by Bank; however, the duties and obligations of Undersigned may not be delegated or transferred by Undersigned without the written consent of Bank. The rights and privileges of Bank shall inure to the benefit of its successors and assigns, and the duties and obligations of Undersigned shall bind Undersigned's heirs, personal representatives, successors and assigns. . Witness the due ex hereof intending to be legally bound this Witness: x Witness: x AltestjWitness: x (Corporate Seal) CL-290 Rev.(3I96) LC. 8,')5 ill '}J96 . 0275 B 23-2390369 1 CL290 (01) 121098,0857 '" ."",h..II'~'_ "" -, '. "'~""""",;0 "-~~.u'~, (; 13. If any provision hereof shall for any reason be held invalid or unenforceable, no other provision shall be affected thereby, and this ~ment shall be construed as if tile invaIld or anentora:able ,rovision had never been a fl1rt of it. . 14. As used herein, 'Undersigned' refers individually and collectively to all signers of this Agreement, including in the case of any partnership all general partners of such partnership individually and collectively, whether or not such partners sign below. Undersigned shall each be jointly and severally bound by the terms. hereof, and each general partner of any partnership executing this Agreement shall be bound hereby both in such general partner's individual and partnership capacities. 15. This Agreement shall in all respects be governed by the laws of the state where Undersigned's Obligations hereunder are payable as set forth herein. Hi. UNDERSIGNED HEREBY EMPOWERS THE PROTHONOTARY OR ANY ATIORNEY OF ANY COURT OF RECORD TO APPEAR FOR UNDERSIGNED AND TO CONFESS JUDGMENT AS OFfEN AS NECESSARY AGAINST UNDERSIGNED IN FAVOR OF THE HOLDER HEREOF, AS OF ANY TERM, FOR THE ABOVE DESCRIBED OBUGATIONS PLUS INTEREST DUE, TOGKUiM< WITH COSTS OF SUIT AND AN ATIORNEY'S COMMISSION EQUAL TO THE LESSER OF (A) 20% OF ALL SUCH OBUGATIONS OR $500, WHICHEVER IS GREATER, OR (B) THE MAXIMUM AMOUNT PERMITI'ED BY lAW, WITH RELEASE OF ALL ERRORS. UNDERSIGNED WAIVES ALL lAWS EXEMPTING REAL OR PERSONAL PROPERlY FROM EXECUTION. '"", THO .S C. P5ZCZOLKOW5KI Address 818 INDIANA AVENUE LEMOYNE PA 17043 Individual: Seal x (Seal) Address Corporation or Other Entity By: (Signature and Title) x (Seal) By: (Signature and Tille) x (Seal) Business Address Page 2of2 AFFIDAVIT COMMONWEALTH OF PENNSYLVANIA: SS. COUNTY OF LUZERNE I, Edward R. Walsh, Vice President, being duly sworn according to law, deposes and states that he is a Vice President of Mellon Bank, N.A.; and that he is duly authorized to make this Affidavit; and that the following is true and correct to the best of his knowledge, information and belief; and that on January 19, 2001, the amount owed to Mellon Bank, N.A. by Thomas C. PszczoIkowski, pursuant to the Guaranty, was as follows: 1. Principal balance on Note ................... $106,831.11 2. Interest to I/19/01 .... . . . . . . . . . . . . . . . . . . . . . . 2,897.82 3. Late Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.67 3. Attorney's fees (20%) . . . . . . . . . . . .. . . . . . . . . .. 21.957.12 TOTAL.............. $131,742.72 plus interest and costs until paid. ;tJ tlt/~ Edward R. Walsh, Vice President Sworn to and subscribed before me this 1!hdayof ~~ ,2001. 1~t1.~~.J No!ill:Y~Publjc I t!CT/,P.!l\L SEAL fDr:nO~AH A. 1,..IOUSENICK, Notary Public , \Vil~e5-8dr;e, Luzerna County t My Co~mission Expires OCT. 9. 200t 423988.1 5001-4540 EXHIBIT "B" ,,--< - j -"- .---',,~ '(I'M' 'i~i' CERTIFICATION OF COMMERCIAL TRANSACTION Edward R. Walsh, Vice President, of Mellon Bank, N.A. as a duly authorized representative of Mellon Bank, N.A. deposes and says subject to the penalties of 18 Pa. C.S. ~4904 relating to unsworn falsification to authorities that the underlying transaction relative to this Complaint in Confession of Judgment is a commercial transaction to the best of his knowledge, information and belief. ~a-I t. td~ EDWARD R. WALSH, Vice President 423991.1 5001-4540 " , lJ _'-' , ~ ~~'= .. '"'-" ;, ." lJlla:' i,ii,! AFFIDAVIT OF LAST KNOWN ADDRESS COMMONWEALTH OF PENNSYLVANIA ss. COUNTY OF LUZERNE I, Edward R. Walsh, Vice President of Mellon Bank, N.A., being duIy sworn according to law, depose and say that the last known address of the Defendant, Thomas C. Pszczolkowski, is as follows: 818 Indiana Avenue Lemoyne, P A 17043 ~a-r/ ,e Iv'~ EDWARD R. WALSH, Vice President Sworn and subscribed before me this 7tH day of ~ ,2001. ~. tL ~J4~~ Notary Public I-.'-~ f',~OTAR[P\L SEAL DE~ORAH A. HOUSENICK, Noto!lry Public , Wilkes-Barre, luzerne County I My Commission Expires OCT. 91 200r 423994.1 5001-4540 '-~:- AFFIDAVIT OF NON-MILITARY SERVICE OF DEFENDANTS COMMONWEALTH OF PENNSYLVANIA : ss. COUNTY OF LUZERNE I, Edward R. Walsh, Vice President of Mellon Bank, N.A., being duly sworn according to law, depose and say that I did, upon request of Mellon Bank, N.A., investigate the status of Thomas C. Pszczolkowski with regard to the Soldiers' and Sailors' Civil Relief Act of 1940. To the best of my knowledge, information and belief, Thomas C. Pszczolkowski is not now, nor was he within a period ofthe last three (3) months, in the military or naval service of the United States within the purview of the aforesaid Soldiers' and Sailors' Relief Act of 1940. ~~ I?tt/~ EDWARD R. WALSH, Vice President Sworn and subscribed before me this 7ft' day of ,,~uJ...r ,2001. /lJ...."..L d~ Notary Public 1-'''- NOTARIAL SEAL :DEOORAH A. HOUSENICK, Notary Public 1\ Wilkes~Carre, luzerne County My Commission Expires OCT. 9. 2001 423997.1 5001-4540 ~~ ~ . -, ,.' .k . - ~-- ~ , """ 0' - ~-' n@-ri VERIFICA TION I, Edward R. Walsh, hereby certify that I am a Vice President of Mellon Bank, N.A., and that as such, have the authority to make this Verification on its behalf; and further, that the facts set forth in the foregoing Confession of Judgment and Complaint in Confession of Judgment are true and correct to the best of my knowledge, information and belief, and that the photostatic copies of the Exhibits are true and correct reproductions of the original and that the statements made in the foregoing Confession of Judgment and Complaint in Confession of Judgment are made subject to the penalties of 18Pa. C. S. Section 4904 relating to unsworn falsification to authorities. '.~wh- EIfW AIID R. WALSH, Vice President 424000.1 50014540 _~"'__~~"'1fiIj!;,I~~~~~~~~~i!:lh~~~ird&~!li-',"j:'-1<j~.~bi-'ii!_~:WC"""'~i\fll~.L< ~-~ < tilR1ILlI\; 1 ''''r'''lr'" ~,~ 1""~j~_lIIlfk. ~- --...... ~, ~ i ""<l (? ....... ~ tf:- 6 f 0 0 0 (@ C\- ~ C ':i ~;:: ~1 ~ ~ -ccu . .~ ~... -v ," '~ fT11':'. '-,J ,I; r- Z:'U .. , Qj ~ ~Q ~;:~-~ r . co ~ - ? ---t. '''-:,;() f' <c: " .,.'"";"" t :~() -,r' ~~R r--. Zc >j f'..l c Z ~ ..,,: "--!:.... =< ::rJ (:::l -< ... .~ ,= n - , ~'" . ,___c .,". '-'--"_-c_-" "' ,-'v -,,-.~,._". -,.' ~'l '".,,,,, f>o"-"'0" ,,~~.-;',--,; - c, "p- ~< ,;'&~,,,'_i.l~m-,~;t'+,,--"<,.,,,__ -: .."-",'~" ,!;l'~;i '. . .. "" Release of Judgment MELLON BANK, N.A. In the Court of Commou Pleas of the County of Cumberland Statement of Judgment Plaintiff Of 01-781 Civil versus Defendants. Real Debt $106,831.11 Interestto 1/19/01 2,897.82 Costs 22.012.79 Total $131,742.72 Entered and Filed: February 2, 200.1 Thomas C. Pszczolkowski Know All Men By These Presents That Mellon Bank, N .A., the Plaintiff named in the above entitled Judgment, for and in the consideration of the sum of One Dollar ($1.00), lawful money of the United States, to it paid by the Defendant above named, the receipt whereof is hereby acknowledged, does hereby forever acquit, exonerate, discharge and release from the Lien of the above entitled Judgment the following described property, to wit: See Exhibit "A" attached hereto and incorporated herewith. And It Is Further Agreed, that the Plaintiff above named will not look to the said above mentioned and described premises, or any part thereof, for payment of any part of the principal and interest of said above entitled Judgment, now or hereafter to become due, or in any way disturb, molest, put to charge or damage, the present or any future owner or owners, occupier or occupiers, of the said above mentioned and described premises, or any part or portion thereof, for or by reason of the said Judgment, or any matter, cause or thing then accruing or to arise; provided, that nothing herein contained shall affect the said Judgment or its legal validity, so far as respects all other lands and tenements of the said Defendant, situate in the County aforesaid, which are not herein expressly exonerated therefrom. In Witness Whereof, Mellon Bank, N.A. has caused this Release of Judgment to be executed this Z __0 day of March, 2001 by its attorneys of record. HOURIGAN, KLUGER &QUINN, P.C. By: ~- seph E. Kluger 428786.1 5001-3715 MI. . ';'\J~vj;~~~::~-;<",;: t" """. - 'C '.i.-i"':..i~~lii", ,INCLUI>ED IN AND FORMING PART OF THE SECURITY TITLE GUARANTEE CORPORATION OF BALTIMORE COMMiTMENT NO.634147 FILE # 404 SCHEDULEA ltU THOSE TWO 12J certain Iracls Dr land sllUaleln the BoroUoh D/llmoine, Ifarmerly East fenDsboro rOWlIsh/pJ, Cumber/and CuunlV. Peanmvan/a. contalnlnO IhlreOn \be oropertv known and nllDlblted as 8181nd18118 AvenuD, leRlDl/llD, PeMsv/vanla, morD panlcolarlv Ilescribell as IcRows: IR8P-T vn 1 On IIID Nonh by InUlana Avenue. un thl East by Vlest Park Avonul, on the SoulhbylOI Ho.33 and \Ill tllo Wesl bv tot 80,15, ~onlll\nlngll\ty t501lnt In /tOnlonlnilfana Avenue and elltelllling In a soulherly I!lrllcllon an even width one hundred thIrtY lt30l/eeHD lot 110. 33.aloresald. StiNG lot /i0.16 on a flan 01101S known as Waslllnoton lIelullls. saId Plan belnn reccrdedln tile lleelirder's amce In and ror cumbotland CounlV In Plan BOOk 1. Paga 24. 1'1111011102 BEGINNING al a 001111 on Ihe soulltem line o/Imllana Avenuo 811hollne ollands now Gr Jale D/ Herlnan f. KiehL ImoWn as lol NO.16 on tho'herelnafler menllDDed Plan ollols:lhencB In a soulberly dIrection along Ule weslern lloeD! said lot 1i0.l&, ORe hundred lhlm l130lleet to a point on the nanllern Ilno mloll/o. 340n $ald Plan: thenculn a weslerly lIIrecl/on alORg the nortltern fUle or said 101 No. 34. lWeRN 12D1/eello a point: Ihence In a lIortlIerly dlr8elion alono a line drawn parallel wi\b the weslern line of lal Ko.16 above mentioned to a pollll on the southern line 01 Indiana Atenue: theftee In an easlerlydlreetlon along Ihe SOUth em line of Indiana Avenul,twentv lZOI leello the plaee 01 BEGINNING. BEING the eastern twenlY 1201Ieelo/lotllo.l:i, Plan 01 Washlnglon lIelohts, recorded illlhe Ornce or the Recorder of needS In and lor Cumberl;nd County In Plan Uook1, page 24. BEING THE SAME PREMISES WHICH Thomas C. Pszczolkowski and Sharon L. Pszczolkowski (a/k/a Sharon L. Correa), his wife, by their deed dated May 9, 2000 and recorded May 17, 2000 in the Office of the Recorder of Deeds in and for Cumberland County in Deed Book 221, Page 368, granted and conveyed unto Thomas C. Pszczolkowski, individually ~_~~il!m~I"'l;\<-"i,'~'~i"j"'_"--~.Fidl'i~j;,;W,;~l>illJ4"~rtIi,,,';oW.k\'~~I'iJ!;,:i(i!'ittiiiii:;<iliiI-;""U;F..-JI'-"'~JO~~W~"*~'~~..u ~ ' JiIiiIIlijjMiMw~-"-'-"= -- ~. "l') ~ ~ -- 0>>" ~ _ "~ ~~ i ~. <..v ~ \'( ~ ~ \ (") f'~:: '-'=>>> ti~t 1; --, -< ::::. ::: ~. I'.> .i..-- "~ ~ . u-b;, , .., c! Z'/b -ry ::,,) , r,.r-~ .., '.,-' ::;:1 :::..,,] ~'<( ~ . ~J ~ . -, -- , e ",'i -,--,--" ~i.i'-,i~ DH- 9 IN THE UNITED STATES BANKRUPTCY COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA IN RE: Thomas Pszczolkowski, Debtor/Movant v. Mellon Bank, N.A. Respondent IN BANKRUPTCY CHAPTER 7 PROCEEDING BK. NO. 1-01-03784 FILED HARRISBURG PA CUMBERLAND COUNTY SEP 2 0 2001 NO. 01-781 Civil LIEN AVOIDANCE Clerk, U.S. Bankruptcy Court ORDER OF COURT FOR JUDGMENT BY DEFAULT AND NOW, this ~o'ftt day of :~~~ , 2001, in consideration of the within Motion for Entr-y of Judgment by Default filed by counsel for the Debtor/Movant, the Court finds that the Respondent has failed to file an Answer or otherwise plead to the Motion for an Order Avoiding Judicial Lien filed on August 9,2001; and duly served upon the Respondent; therefore, the Court orders judgment by default in favor of the Debtor/Movant, tho mas Pszczolkowski, and against the.- Respondent, Mellon Bank, N.A., to the relief requested in the Motion. IT IS HEREBY ORDERED; adjudged and decreed that the judgment lien held by the Respondent is hereby declared void in its entirety and of no further force and effect as it violates 11 U.S.c. S522(f)(1) and Section 522(d) of the Bankruptcy Code as a preference. Per CA--- Deputy Clerk . ? ?11I'lt ,~,,,,~,. ~ >'J <'.~. vi,... i .d.... L",,,",u BY THE COURT; Is! Robert J. WCodSklil Robert J. Woodside Chief Bankruptcy Judge ~~I!'t!!'l~,,*Jm~"l:~~tY,'~,Wit!~lifu;W,s,[ffi<<j~~!$~~~;jO~b.d,h'liir-l!c~" ~-~"....~.~.,,~,~-=,~"" l . llI>iti''-l\1~-~t:M ~"' Lhiiliijllif,"""-." iIilIiiJ -- --~ -~ ~ fl ~ a ~ 0 (") 0 0 .-.J C 'T1 ~ r g 0 ---. 0 -0 OJ n -,' -'1:1 ...} !;2rn -l c-:'rp -- x' ','j\:!l "'t) zE;::: :311." <n~": U) -..:) t ~B ,.,e-::> r .". ;.c 33 ~8 :x 20 "'( >c '? c:;{n ~ l=" ~ cJ >0 --< t '\ !!IIC._ _ ,,_,,~, h..~ _~ ,~~. ,~__~. _ w