HomeMy WebLinkAbout01-05562
Donald L. Kornfield
Attorney for Plaintiff
17 North Church Street
Waynesboro, PA 17268
(717) 762-8222 or 267-3202
FAX 762-6544
don@kornfield.net
Atty. I.D. #19242
UNITAS BANK
Plaintiff
vs. .
CARLISLE SPORTS EMPORIUM, INC.:
Defendant
IN THE COURT OF COMMON PLEAS OF
THE 9TH JUDICIAL DISTRICT, PA.
COUNTY BRANCH
CIVIL ACTION - LAW
# o~ - ss~a
CONFESSION OF JUDGMENT
PURSUANT TO Pa. R.C.P. RULE 2951(bl
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 Defendant and confess judgment
in favor of the Plaintiff and against Defendant as follows:
Principal balance $58,452.13
Interest to 9/19/01 6,624.42
Attorney fees 6,507.65
Total $71,584.20
PURSUANT TO THE FAIR DEBT COLLECTION PRACTICES ACT YOU ARE
ADVISED THAT THIS LAW FIRM IS DEEMED TO BE A DEBT COLLECTOR ATTEMPTING
TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THAT
PURPOSE.
1
Donald L. Kornfi d
Attorney for Defe ursuant to Warrant of
Attorney Contained in Complaint Filed
Hereinbefore
UNITAS BANK IN THE COURT OF COMMON PLEAS OF
Plaintiff THE 9TH JUDICIAL DISTRICT, PA.
vs. CUMBERLAND COUNTY BRANCH
CIVIL ACTION -LAW
CARLISLE SPORTS EMPDefendantC # Dl ~ .lJ~ z uf/~''
COMPLAINT
NOW COMES Plaintiff and states:
1. PlaintiffisUnitasBank,adivisionofFirstCommonwealthBank,abankinginstitution
with offices located at 15 South Main Street, Chambersburg, Franklin County, Pennsylvania.
2. Defendant is Carlisle Sports Emporium, Inc., a business corporation with an address
of 29 South Middlesex Road, Carlisle, Cumberland County, Pennsylvania.
3. Attached hereto and made a part hereof is a true and correct reproduction of the
original Promissory Note dated December 29, 1999, executed by Defendant, containing a warrant
of attorney.
4. The instant judgment is not being entered by confession against a natural person in
connection with a consumer transaction.
5. The note has not been assigned.
6. No judgment has been entered upon the note in any jurisdiction.
7. Defendant is in default under the instrument giving rise to this claim for relief and the
right of Plaintiffto confess judgment against Defendant in that default occurred on Apri129, 2001,
by failure to make required payments.
8. As a result of the default alleged in paragraph 7 hereof, the amounts due Plaintiff from
Defendant are as follows:
Principal balance $58,452.13
Interest to 9/19/01 6,624.42
Attorney fees 6,507.65
Total $71,584.20
9. The Warrant of Attorney appearing in the attached note is less than 20 years old.
WHEREFORE, Plaintiff demands judgment against Defendant in the amount of $71,584.20,
together with interest from September 20, 2001, at the rate of $12.18 per diem, court costs and such
other damages as maybe available at law.
Donald L. Kornfield
Attorney for Plaintiff
I verify that the statements made in this Complaint are true and correct. I understand that
false statements herein aze made subject to the penalties of 18 Pa.C.S.A. Section 4904, relating to
unsworn falsification to authorities.
UNITAS BAN `~~ '
B ~^~-'
Robert C. Williams
President
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PROMISSORY NOTE ~ ~~ .
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fleterences m the shaded wren are im Lenders use Dory en~'tlo rest Ifmrima epoYmablfity of mis dacurnant io any pamcNer man w kem.
Arty ttem above contalning °'• has keen o due ro mM IengM IImBeHOna -
BOROWer: CARLISLE SPORTS EMPORIUM INC. (TIN: Lentler: 'Unitas Bank, a tllWsion bl First Commonwealth Bank
25.1894389) - _ Chambersburg Oltice
1101 LINDHAM CT STE 704 ~ 15 South Main bYreet
MECXANICSBURG, PA 17055 PO Box 777
a Chambareburg, PA 77207
~~ (717)287.1776
Prlncipel Amount: $75,000.00 Initial Rate: 9.500% Date of Note: December 29, 1999
PROMISE TO PAY. CARLISLE SPORTS EMPORIUM INC. ("Borrower") promises to pay to UnBas Bank, a tlivislan of First Commonwealth Bank
("Lentler"), or ortlw, In lawful money of the Unitetl States of Amwica, the prindPai amount of Seventy Five Thousand & 00fl00 Dollars
($75,000.00), to9emer with Interest on the unpaltl pdncipal balance from December 29, 7899, uMll pall fn full.
PAYMENT. Subject m any payment changes resulting /rob changes In the Indez, Borrower will pay this loan In 72 payments of $1,375.90 each
payment BorrovreYS Brst payment Is due January 29, 2000, and all subsequem payments are due on the same day of each monM attar that.
Borcower's final payment will be due on December 29, 2006, antl will 6e for all principal and all accroetl interact not yet Id. Paymems
inclutle principal antl Interest. Unless otherwlae s9reetl or required by applicable law, paymanm will tae applietl first to aecruetl unpaid
Interest, there to prlnelpal, and any remaining amount to any unpaltl eolleclicn costa. The annual Interest rata for this Nota Is computed on e
385/360 baste; that 19, by applying the ratio of the annual Interest rate Dues a year of 3W days, multiplied by the outstanding principal balance,
multlplietl by the actual number of tlays the principal balance Is oumtantling. BortoWer will pay Lender et Lendela atldress shown above or m
such ether place es Larder may designate in wrtOng.
VARIABLE INTEREST PATE The interest rate on mis Nate is suWecl t0 change from time to lime based on changes in an indepenEem index which
b me highest prima rete quorotl In the Well Street Joumel (me °Indez'). The Index Is not necesaemy the lowest rate charged by Lender on Hs loans. If
the Irxlex becomes unavailable during the term of mis loan, Lentler may tlesignem a Sdbsilmte Intlex after rlPtme ro BOrrowen Lentlsr well tell Bbrfeww
ma current Index rpm upon BonoweYS request. Tha Interest rate change well not ocar more Dean men each day. Borower untlersmntls that Lentler
may make bens based on omer rates as well. The Indez currently la 8.500% per annum. The Interest rate m 6e epplletl m the unpaW principal
balance of this Note will be at a rata Of 7.000 percentage point over the Intlex, resul9ng In an Initial ram of 9300% per annum. NOTICE: Under
rro ciroumstencea well me Interest rate on mis Note be more man me maximum rate allowed by applicable law. Whenever increases occur in me
Inmrest rem, Lander, et its option, may do One or more of the lollowing: (A) Increase Borrowers peymerds m ensure Borrower's loen'wal pay oft by Its
origlrel final matwlly date, (e) increase Bouawer's payments m cover accming interest, (C) ktcrease tl7e number of Bonowera payments, and (D}
contlnue Borrower's payments at me same amount antl irmreese Borrower's final payment.
PREPAYMENT, Borrower may pay wlmoW penalty all or a portion of the amount owetl earlier than it Is due. Eedy paymems well not amass agreed to
by Lender in wrHing, relleva Borrower of Borrower's obligatlon ro continue to make payments under the payment schedule. Rameq early payments will
reduce tlw Prlncipel balance due and may rasWt kr Borower's mekm9 fewer paYmams. eOnower agrees not m sent Lender payments marked "paid
in mil", °wimoW recourse", or similar language. II Borower sends such a payment, Landes may accept H wlOtoW being any of Larder's nghm antler mis
Nom, end Borrower well remain aMigated ro pay any further amount owed ro Lentler. All written communicatbns concerning dbpWed amounts,
mNuding eery check w omer payment Instrument that Intlicetes mat me payment constitutes "payment in full" of me amount owed or that Is tenderetl
w8h omer crontlPoOns or IlmHetmns or as full sagsfactlon of a dkpNetl amount must be balled ar tlalNeretl ro: Unitas Bank, a dNision of First
CommormreeWn BaNz: Ctrembersbwg Office; 75 South Mam Street, PO Box 777; Chambersburg, PA 17207.
INTEREST AFTER DEFAULT. Upon default, including (allure m pay upon final metutlry, Larder, at Its option, may, it permMetl antler epplbeble law,
hmreeae me veneble imerest rate on this Note ro 8.000 pwcemege poinm over the Index. The imerest ram will rest exceed ma maximum rate permttletl
by applicable law. H Judgment is enteretl In connectlon wim mis Nom, Interest will continue ro accrue on mis Nom after Jutlgment et me Inmrest rem
applicable m1Ms Note at me lime hxlgmera rs amaretl.
DEFAULT. Each m me following shell constitute en event of default ("Event of Damult") under mis Nom:
Payment Oefaull Borrower falls ro make any payment when due under mis Nom.
Other Defaults. Borrower falls to comply with or to perform any omer term, oMIgaHOn, covenant Or contlitlon canteined in mis Note or in any of
me releLLM dacumenm or to comply with ar ro pedarm any mrm, obligation, covenant or contlitlOn contalnetl In any other agreement between
Lender end Borrower.
Felee Smtemmtm. Any wertanry, representatbn or smtemem made or fumishatl ro Lender by Borrower or on Borrower's behalf ands( this Note
or the remind tlacumeras is false qr misleading ro any mamdal respect, ellher now w at the Hrtta made or famished or becomes false or misleading
et any time lherea0er.
Insolvency. The dissOlutlgn or termination of Bortwvera existence as a going business, me liwolvency of Borrower, me appointrnent of a receiver
for arty Pad of Bortowers property, any assignmem mr me benefit of cred8ore, arty type of cre0imr workout, or me commencement of any
groceedin0 under any benkmproy or insolvency laws W ar aesinat Borrower.
Crednor or FoAHmra Proceetlings. Commencement of foreclosure or rodeimre praceetlings, wheher by judicial proceetlinB. self-help,
reposseesbn ar any a0rer memod, by any credttor of eOrrower or by any Bovemmenml agency against any collateral aecurinp me loan. This
Ndudes a gemlahment of any of Borower's eccounm, including deposit exoums, w8n Lender. However, this Event of Demuth shell rrot apply if
tlrere is a gootl (elm dispum by Borrower as t0 me validity Or reasonableness of me claim which le me basis of me crediror or icrtettura proceetlmg
antl H Borrwver gives Lender written no0ce of me credttw or fodelture proceeding antl deposits vitth Lentler monies or a surety bond ror the
cretliror or foneaure proceeding, In an amount determinetl by Lentler, N Its 5de discretlon, as being en atlequala reserve or bontl for me tlkpute.
Evenm Anecting Guarentor. Any of the precetling events occurs wtth respect to any Ouerenror W any of the Indebmdness or any Guaremor tlms
or hecomee IncampetenL or revokes or tlisputes ma velidtty of, or IIabOHy under, any guerenty of me ildabtednaes . In me event of a deem,
Lentler, et tts aptlon, bey, but shall not be requlretl ro, permit me Guarerdor`s estate m assume uncondlilonally me obBgaHOns Boeing under me
guaranty in a rrwmwr saHSlactory ro Lender, end, in doing eo, cure any Evert of Defeul[.
Change In Ownership. Any change In ownership of twenty-five peroent (25%) or mom al the common stack of Borrower. ,
Adveree Change. A maroriel etlveree change accuro In Borrower's flnerwiel condition, or lender believes me prospect of payment or
padomlence of mis Note is impairetl. "
InseWnty. Lender in good fatlh helmves Itself Insecure.
Cure ProWelona. If any default, other than a default IP.paymanL k curable antl If Borrower has not bean given a notlce of a breach of the same
provision of 1His Note w{Wm fie pracaWng SweNa (12) morahs, ri may be cured (and no evert of defauk wiN have occurred) 8 ewrower, atmr
receNing written notice from Lentler tlemantling cure of such default: (1) cures me deault wimin (been (15) days; or (2) Ii me cure requires
more man Bfteen (t5) tlays, immetliatety initiates steps whkh Lentler deems in Lender's sole dscrelbn ro be sukcient to cure me default antl
thereaher continues and completes ell reasonable antl necessary steps sufHciant to protluce compliance as soon as reasonably prectical. ,
LENDER'S RIGHf3. Upon cletaWt, Lerxier may, attar gNMg such notices as requlretl by applmable law, declare me ent'ze unpaltl principal balance on
' mis Note antl ell accroed unpaid Interest Immetliamly tlue, antl man Borower will pay that amoum.
EXPENSES. If Lentler instltules any suit or acton to enrorce any of me terms of this Note, Lentler shall he entitled to recover such spin as me court
may adjudge reasonabe. Whether cr not any coon action la invdveQ antl ro ins event mt prohibiletl by law, all reascnable expenses Lender incurs
Hest m Lender's opinion ere necessary at any tlms ror me prolectlon of its Interest or me enforoement M Hs rights shall became a pert Of the loan
payable on tlemend end shell bear interest et me Note ram from me date al the expentlimre until repaltl. Expenses coveretl by mis paregreph Irwlutla,
wlihmrt IImHaHOn, However subject ro any limits antler applicable law, Lender's experees mr bankruptcy proceetlings (including eHOrts to motlify or
vacate any automatic stay or InJunctbn), antl appeals, tome eMem permitted by applicable law. Bortoww also will pay any coon cosm, in atltlition t0
ell other soma provided by law. '
JURY WAIVED. Lentler end Borrower hereby weNe the right m any Jury idol in any action, proceeding, or counterclaim brought by either Lender or
Borrower against me omer. -
RIGFR OF SETOFF. Borower granLS to Lender a cOmrectual secudty Interest in ell Borowers accounts wim Lantlar (whether checking, savings, or
some omer accoun0. This Includes ail accounts Borrower holds Jointly with someone else antl ell accounm eonower may Open in the future. However,
this does not include any IRA or Keogh accounts, or any trust accounts mr which me grenl m a secudty imerest would be proh'NHetl by law. Borrower
audrodzes Lentler, ro me event permlHetl by eppllceble law, to charge or seto(J all sums owing on me Irdebmdness against any and all such accounts,
end, at Lentlers option, to administratively freeze ell such accounts ro allow Lender to protect Lentlers charge antl setoff rights provided in this
,.
PROMISSOtiiY NOTE Page 2
(Continued)
paragraph.
UMRATION OF ACTION. If the Borrower has any cause of actlan 8geinat the Lender, raw or in the fuNre, arising out d the Related Documents end
the trensedlans comenlpleted by the Related Documents, whethe ro cdntract dr tort or otherwise, the Bonower must assert the claim within one year
d the occurrence of the avant whkh glues tlae ro a revue d ectlon. If the Bonower tloea rd assert the claim wthin orre year d the oxurence of e
cause d actlon, the Borrower will he berretl Irom asserting the claim. Borrower and Lender agree that the one year tlme pedotl Is reasonable and
sufficient for the Borrower tc Investigate end ad upon the claim end that bre provbian shell survive any tarminalon d the Agreemem.
YEAH 2000 PROVISIONS .The Yeer 2000 Problem has not resulted in, and will not result in a maledel adverse change ro the buethess, properties,
easels, Mendel contllNon, results of aparetlons or prospects d the Bonohrer, entl has not aM wsl nwt impair materially the eWlity d qre Borroaer ro
ddY end punctually PaY a Penorm any d Ha obllgaucns owed b the LaMar. Ram tknre b time. within twenty (201 tlays abler enY request by the
Lender, the Borrower shall delNer to the Lender a written report es ro Hs compliance efforts In connectlon with the Vear 2000 Probem, in such defetl ee
the Lentler may reeeoreblay request In eddaon, the eonower shell, upon erry request d the LeMer, pamH the Lender, upon reegoneble nWCe aM
during normal business hours, ro mea wfih the Borrower's htfomlatlan systems and techrologies eroPloYaes and/or ouLNde Provitlera, m tliecuss the
status d the Borrower's compliance eROrta In connection wNh the Veer 20W Probem and the actual aM antlpipeted uroam thereof. The Borrower shall
take all'eotlon necessary ro Insure The computerbased sysleme utllizetl by the eonaver ae able ro effectively process date entl perlarm Nmcllons.
InclWing wHMUt IlmHetlon as to dales on or attar December 31, 1999, such met no material atlversa change ro the Borrower'9 bueHle9a, proPedles,
esseb, gnenciel oontlmon, results of opertatbrre or prospects wfil esuR For purposes of th§ pnrvisbn, Neer 2000 Pmblam " means the dak that
computer epplkeNOns used by or tar the benefit d the eortower may be une0le to recogNZe or property pedorm detaeensitlve lunctlota hvokdng
certain dates prior ro, end arty date attar, December 31, 19gg.
LATE CHARGE. A tare charge wfil be assessed In the amoum of 5% d the regular peymea ar poNOn thereof the remalne unpeW for more then ten
(10) days beyond the tlue daa. The minimum tae charge amount Is $25.00. This charge will be irmmatliately dua entl payeae.
GENERAL PgDVI510N4. Lentler may tleley ar forgo enforcing any d Hs dghls or remedies antler this Nde without losktg them. Bortower entl any
othe parson who signs, guarantees ar entlareea thU Note, ro the extent slowed by few, waive preeenMent demand for peymaM, entl notce of
distgnor. Upon arty cheese in the temw d this Note, aM unless otherwise ezpressy stated In wrNng, no pony who signs thb Note, whams as maker,
gtrerenloT, alccormnotlatlon mater a endorse. sheN ba rels9aed from tiebilMy. AN each pelves agree amt Cantle may renew a axtaM (wpealeUly and
for any length d time) thk loan or release ary party a guarentar or Callaerel; or Mpalr, fat tc realise upon or peneot Lentleta security Intelsat In the
collereral; aM Wka any othe action deemed necessary try Lentler without the consent d or notlceto anrone. All such parties also agree that i.ender
r~Y madHy sUa loan wttlwut the consent of ar notice ro em/one oMa tltan ate party weh whom the nrotlitlcatlon is made. The ahligaticne Under thH
Note ere Joint end severel. If any pordon of thH Note le for airy re~son~peterminetl ro be unentomeeble, It will rwt elf the an - eebilgy d aM oth r
pramalonadihlaNrna. 7T`^~pgnura}~,,.T~.LOt~urraarzc~c.,~Cvea.rk~~iar2apvw ~(`~11a~
CONFESSION OF ,1UDGtdENT. Borrower I~ hrawocebly authorizes entl empw+ers arY atlomey a the a Clek d any CounNnWre~Yl Uf~
Commonwealth d Pennsynrenle, or elaewhere,,ro appear a any tlme for Borrower eM, wNh or wNtaut complaint Netl, as d any term, aodeae or enter g/~r
Judgment against Borower ror the ettlre pdndpal helenoe d this Note entl dl accrued ImeresL together with costa d sulL eM en etromey's
commissbn d tap Percent (70%) of the tmpdd ptincipel balance ant accrued inteestbt cdlectlaL bW 1n amy evenlnd lase glen fare Hurclced Dallas Ao fiu.
($600); eM for w doirng, thk Note or a copy d this Note verlfietl by aMtlevH shell be sufficlerrt wertant The authorfiy gremetl in this Note ro confess t0
Pfl10R TO SIGNING THIS NOTE, BORROWER gEAO AND UNDERSTOOD ALL THE PROVSIONS OF THIS NOTE, INCLUDING THE VARIA
INTEREST RATE PROVISIONS. BOgROWER'AGREES TO THE TERMS OF THE NOTE
BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE Ha.
TNIS NOTE IS GIVEN UNDER SEAL AND R' IS INTENDED THAT THIS NOTE IS AND SHALL CONSTRUTE AND HAVE THE EFFECT OF A .r,(tr(
SEALED INSTRUMEM ACCORDING TO LAW.
BORROWER:
CARUSL
KE PLASTER President ai AIiLLRLE
SPORTS EMPORIUM INC.
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