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HomeMy WebLinkAbout07-2168ti Kenneth J. Rollins, Esquire PA I.D. No. 200578 Rhoads & Sinon LLP PO Box 1146 Harrisburg, PA 17108-1146 Phone: 717.233.5731/Fax: 717.237.6790 Attorneys for Plaintiff Centric Bank, National Association CENTRIC BANK, NATIONAL ASSOCIATION, Plaintiff v. VIRGINIA R. ADAMS, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY No. O'`j ~o2.~ritl C! v ~~,~~L. CIVIL ACTION - MORTGAGE FORECLOSURE CONFESSION OF JUDGMENT Pursuant to the authority contained in the warrant of attorney, the original or a copy of which is attached to the Complaint in Confession of Judgment (Money Judgment) filed in this action, I appear for the Defendant and confess judgment in favor of the Plaintiff, Centric Bank, National Association, and against the Defendant, Virginia R. Adams, as follows, plus interest and costs from the date of judgment, attorneys' fees, and costs of collection as follows: Principal: $47,938.42 Interest to Apri19, 2007: $11,991.47 Late Charges: $73.50 Attorney's Commission: $4,793.84 TOTAL $64,797.23 ~ - •` Dated: Apri19, 2007 Respectfully submitted, BROADS & SINON LLP By: e th J. Rollins, Esquire One South Market Square P.O. Box 1146 Hamsburg, PA 17108-1146 (717) 233-5731 Attorneys for the Defendant, Virginia R. Adams, for the purpose of confessing judgment; Attorneys for the Plaintiff, Centric Bank, National Association, for all other purposes N .-a ~ ~ c.-'a -.-.J ~'7 ~ ~ Rl -- ~ ~ t "t`i - - ~ ~ ---' u _ _) r - ~ _ _. ~ "-~ 3= Kenneth J. Rollins, Esquire PA I.D. No. 200578 Rhoads & Sinon LLP PO Box 1146 Harrisburg, PA 1 7 1 08-1 1 46 Phone: 717.233.5731 /Fax: 717.237.6790 Attorneys for Plaintiff Centric Bank, National Association CENTRIC BANK, NATIONAL ASSOCIATION, Plaintiff V. VIRGINIA R. ADAMS, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY No. O 7 -o~~~ n ~~/L~,-~ CIVIL ACTION - MORTGAGE FORECLOSURE PRAECIPE FOR ENTRY OF JUDGMENT To: The Prothonotary Pursuant to the attached Confession of Judgment, please enter judgment in favor of the Plaintiff, Centric Bank, National Association, and against the Defendant, Virginia R. Adams, and damages are assessed in the amount of $64,797.23 plus interest from the date of judgment, attorneys' fees and costs of collection. A form Entry of Judgment is attached hereto. BROADS & SINON LLP Dated: Apri19, 2007 By: Kenne J. Rollins, Esquire One South Market Square P.O. Box 1146 Harrisburg, PA 17108-1146 (717) 233-5731 Attorneys for the Defendant, Virginia R. Adams, for the purpose of confessing judgment; Attorneys for the Plaintiff, Centric Bank, National Association, for all other purposes ti ., Kenneth J. Rollins, Esquire PA I.D. No. 200578 Rhoads & Sinon LLP PO Box 1146 Harrisburg, PA 11108-1146 Phone: 717.23 3.5731 /Fax: 717.237.6790 Attorneys for Plaintiff Centric Bank, National Association CENTRIC BANK, NATIONAL ASSOCIATION, Plaintiff v. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY /~ VIRGINIA R. ADAMS, CIVIL ACTION - Defendant MORTGAGE FORECLOSURE CONFESSION OF JUDGMENT Pursuant to the authority contained in the warrant of attorney, the original or a copy of which is attached to the Complaint in Confession of Judgment (Money Judgment) filed in this action, I appear for the Defendant and confess judgment in favor of the Plaintiff, Centric Bank, National Association, and against the Defendant, Virginia R. Adams, as follows, plus interest and costs from the date of judgment, attorneys' fees, and costs of collection as follows: Principal: $27,000.00 Interest to April 9, 2007: $4,986.87 Late Charges: $0.00 Attorney's Commission: $2,700.00 TOTAL $34,686.87 Dated: Apri19, 2007 Respectfully submitted, BROADS & SINON LLP By: Ke eth J. Rollins, Esquire One South Market Square P.O. Box 1146 Harrisburg, PA 17108-1146 (717) 233-5731 Attorneys for the Defendant, Virginia R. Adams, for the purpose of confessing judgment; Attorneys for the Plaintiff, Centric Bank, National Association, for all other purposes `~' ~ ~ _- ~ ~ . ' ,~ .--~ ~~ !''Zr-;-~ °?7 t7" = _ ~ .. ~~ i _ _ _,': ~::a ~,. C'i k `: r~+ ~:~ ~ ~, ~ ~, _ . _ ` ~, ;,tip ,,,~ ,...i -_ l ~w _ j... . " { _ ~ _~~, ' r..- ~:. .~ ~ ~~ Kenneth J. Rollins, Esquire PA I.D. No. 200578 Rhoads & Sinon LLP PO Box 1146 Harrisburg, PA 17108-1146 Phone: 717.233.5731 /Fax: 717.237.6790 Attorneys for Plaintiff Centric Bank, National Association CENTRIC BANK, IN THE COURT OF COMMON PLEAS NATIONAL ASSOCIATION, CUMBERLAND COUNTY Plaintiff v. No. ~ 7 ~ ~~~ ~c u ~L "" l VIRGINIA R. ADAMS, CIVIL ACTION Defendant MORTGAGE FORECLOSURE CONFESSION OF JUDGMENT Pursuant to the authority contained in the warrant of attorney, the original or a copy of which is attached to the Complaint in Confession of Judgment (Money Judgment) filed in this action, I appear for the Defendant and confess judgment in favor of the Plaintiff, Centric Bank, National Association, and against the Defendant, Virginia R. Adams, as follows, plus interest and costs from the date of judgment, attorneys' fees, and costs of collection as follows: Principal: $27,000.00 Interest to Apri19, 2007: $4,986.87 Late Charges: $0.00 Attorney's Commission: $2,700.00 TOTAL $34,686.87 ~~ ,__ V ~ .'r -_- -=u Sri -^ "^, °r7 i ~.! ~ ~_,~ - -. ~ ., ~~, -.. ;_, ~'-- ya FV r. ~ ';~, :~ Kenneth J. Rollins, Esquire PA I.D. No. 200578 Rhoads & Sinon LLP PO Box 1146 Harrisburg, PA 1 7 1 08-1 1 46 Phone: 717.233.5731 /Fax: 717.237.6790 Attorneys for Plaintiff Centric Bank, National Association CENTRIC BANK, NATIONAL ASSOCIATION, Plaintiff v. VIIZGINIA R. ADAMS, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY r CIVIL ACTION - MORTGAGE FORECLOSURE PRAECIPE FOR ENTRY OF JUDGMENT To: The Prothonotary Pursuant to the attached Confession of Judgment, please enter judgment in favor of the Plaintiff, Centric Bank, National Association, and against the Defendant, Virginia R. Adams, and damages are assessed in the amount of $34,686.87 plus interest from the date of judgment, attorneys' fees and costs of collection. A form Entry of Judgment is attached hereto. BROADS & SINON LLP Dated: April 9, 2007 By: ~~l Ke th J. Rollins, Esquire One South Market Square P.O. Box 1146 Harrisburg, PA 17108-1146 (717) 233-5731 Attorneys for the Defendant, Virginia R. Adams, for the purpose of confessing judgment; Attorneys for the Plaintiff, Centric Bank, National Association, for all other purposes C`3 ~ :a C-.: ° -n ~~ .~-°. ._ ~. .; > _~_ s~-~-- -- .. i 7 ~{~ _. s _., ; -~- _ f.-> , _- --- ~*~ .. ~; - ' __.. ~ . z~ ~.' ~ ~ Kenneth J. Rollins, Esquire PA I.D. No. 200578 Rhoads &Sinon LLP PO Box 1146 Harrisburg, PA 17108-I 146 Phone: 717.233.5731lFax: 717.237.6790 Attorneys for Plaintiff Centric Bank, National Association CENTRIC BANK, IN THE COURT OF COMMON PLEAS NATIONAL ASSOCIATION, CUMBERLAND COUNTY Plaintiff \ ~J 4 l VIRGINIA R. ADAMS, CIVIL ACTION - Defendant MORTGAGE FORECLOSURE COMPLAINT IN CONFESSION OF JUDGMENT (MONEY JUDGMENT) NOW COMES Plaintiff, Centric Bank, National Association, by its undersigned attorneys, Rhoads &Sinon LLP, and files the within Complaint in Confession of Judgment (Money Judgment), stating as follows: 1. Plaintiff, Centric Bank, National Association ("Plaintiff' or "Bank"), formerly known as "Vartan National Bank," is a national bank having its principal office at 3601 Vartan Way, Harrisburg, Dauphin County, Pennsylvania 17110. 2. Defendant, Virginia R. Adams ("Defendant"), is an adult individual currently residing at 917 W. Louther Street, Carlisle, Cumberland County, Pennsylvania 17013. COUNTI CONFESSION OF JUDGMENT CENTRIC BANK, NATIONAL ASSOCIATION V. VIRGINIA R. ADAMS 3. The averments set forth in Paragraphs 1 through 2 are incorporated herein by reference. 646593.1 4. On December 7, 2005, Defendant made, executed and delivered to Plaintiff a promissory note (hereinafter the "2005 Note"). A true and correct copy of the 2005 Note is attached hereto as Exhibit "A" and is incorporated herein by reference. 5. The 2005 Note evidences a loan made by Plaintiff to Defendant in the original principal amount of One Hundred Eighty-four Thousand Four Hundred Eighty and No/100 Dollars ($184,480.00), which funds were received by Defendant. 6. Pursuant to the terms of the 2005 Note, Defendant was to make four (4) monthly payments of interest, at the rate of Seven point Two-Five percent (7.25%), then thirty-two (32) consecutive monthly payments of principal and interest accruing at the rate of Seven point Two- Five percent (7.25%), then two hundred seven (207) consecutive monthly interest payments of principal and interest accruing at a variable rate of 1.000 percentage points over Wall Street Journal Prime, then one (1) payment consisting of all remaining principal and interest accruing at a rate of 1.000 percentage points over Wall Street Journal Prime. Such payments commenced on January 7, 2006 and were to continue until April 7, 2026. 7. Defendant has been in default under the terms of the 2005 Note since July 7, 2006. 8. Despite repeated requests by Plaintiff for payment, Defendant has failed to cure her default. Defendant remains in default under the 2005 Note. 9. In addition to being payable on demand, the 2005 Note grants the Plaintiff the right to accelerate the entire unpaid principal balance of the 2005 Note, as well as any accrued unpaid interest upon an event of default; which Plaintiff has done by letter dated March 12, 2007. A true and correct copy of the acceleration and demand letter is attached hereto as Exhibit "B" and is incorporated herein by reference. 10. The 2005 Note contains confession of judgment and warrant of attorney provisions which empower any attorney of any court of record to appear for and enter judgment against Defendant and in favor of the Bank upon default by the Defendant. 11. The confession of judgment and warrant of attorney provisions contained in the 2005 Note permits confession of judgment in an amount equal to all accrued unpaid interest, late charges, any and all costs of suit, and an attorney's commission of ten percent (10%) of the unpaid accrued interest for collection. 12. Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. 13. The 2005 Note has not been assigned by the Bank. 14. Judgment has not been entered on the 2005 Note in any jurisdiction. 15. The actual amounts presently due and payable to the Bank under the 2005 Note are itemized as follows: Principal: $47,938.42 Interest to Apri19, 2007 $11,991.47 Late Charges: $73.50 Attorney's Commission: $4,793.84 TOTAL $64,797.23 WHEREFORE, Plaintiff, Centric Bank, National Association, demands judgment in its favor and against Defendant, Virginia R. Adams, in the amount of $64,797.23 plus accruing interest, costs of suit, attorneys' fees, and such other charges as authorized by the warrant contained in the 2005 Note. COUNT II CONFESSION OF JUDGMENT CENTRIC BANK, NATIONAL ASSOCIATION V. VIRGINIA R ADAMS 16. The averments set forth in Paragraphs 1 through 15 are incorporated herein by reference. 17. On February 10, 2006, Defendant made, executed and delivered to Plaintiff a promissory note (hereinafter the "2006 Note"). A true and correct copy of the Note is attached hereto as Exhibit "C" and is incorporated herein by reference. 18. The 2006 Note evidences a loan made by Plaintiff to Defendant in the original principal amount of Sixty-two Thousand and No/100 Dollars ($62,000.00), which funds were received by Defendant. 19. Pursuant to the terms of the 2006 Note, Defendant was to make monthly payments of interest, at the variable rate of One percent (1.0%) over Wall Street Journal Prime. Such payments commenced at the time of execution of the 2006 Note and were to continue until August 10, 2006, at which time the 2006 Note became due and payable in full. 20. Defendant has been in default under the terms of the 2006 Note since July 10, 2006. 21. Despite repeated requests by Plaintiff for payment, Defendant has failed to pay off the 2006 Note. Defendant remains in default under the 2006 Note. 22. The 2006 Note contains confession of judgment and warrant of attorney provisions which empower any attorney of any court of record to appear for and enter judgment against Defendant and in favor of the Bank upon default by the Defendant. 23. The confession of judgment and warrant of attorney provisions contained in the 2006 Note permits confession of judgment in an amount equal to all accrued unpaid interest, late charges, any and all costs of suit, and an attorney's commission of ten percent (10%) of the unpaid accrued interest for collection. 24. Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. 25. The 2006 Note has not been assigned by the Bank. 26. Judgment has not been entered on the 2006 Note in any jurisdiction. 27. The actual amounts presently due and payable to the Bank under the 2006 Note are itemized as follows: Principal: $27,000.00 Interest to Apri19, 2007: $4,986.87 Late Charges: $0.00 Attorney's Commission: $2,700.00 TOTAL $34,686.87 WHEREFORE, Plaintiff, Centric Bank, National Association, demands judgment in its favor and against Defendant, Virginia R. Adams, in the amount of $34,686.87 plus accruing interest, costs of suit, attorneys' fees, and such other charges as authorized by the warrant contained in the 2006 Note. Respectfully submitted, Dated: Apri19, 2007 BROADS & SINON LLP By: e eth J. Rollins, Esquire One South Market Square P.O. Box 1146 Hamsburg, PA 17108-1146 (717) 233-5731 Attorneys for the Defendant, Virginia R. Adams, for the purpose of confessing judgment; Attorneys for the Plaintiff, Centric Bank, National Association, for all other purposes VERIFICATION Doris K. Ney, Senior Vice President of Centric Bank, National Association, deposes and says, subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsification to authorities, that she makes this verification by her authority and that the facts set forth in the Complaint in Confession of Judgment (Money Judgment) are true and correct to the best of her knowledge, information and belief. ~ 200 ~ Date ~~ Doris K. Ney, Senior Vice P sident Centric Bank, National Association ~',~ r~ PROMISSORY NOTE References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Anv item above containing " * *'" has bean omitted due to text length limitations. BOCCOWer: Virginia R. Adams 917 West Louther Street Carlisle, PA 17013 Lender: Vartan National Bank Progress Office 3601 Vartan Way Harrisburg, PA 17110 (717) 657-7727 Principal Amount: $184,480.00 Initial Rate: 7.250% Date of (Vote: December 7, 2005 Maturity Date: April 7, 2026 PROMISE TO PAY. Virginia R. Adams ("Borrower") promises to pay to Vartan National Bank i"Lender"-, or order, in lawful money of the United States of America, the principal amount of One Hundred Eighty-four Thousand Four Hundred Eighty & 00/100 Dollars (5184,480.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance. PAYMENT. Borrower will pay this loan in full immediately upon Lender's demand. If no demand is made, subject to any payment changes resulting from changes in the Index, Borrower will pay this loan in accordance witfi the following payment schedule: 4 monthly consecutive interest payments, beginning January 7, 2006, with interest calculated on the unpaid principal balances at an interest rate of 7.250°!o per annum; 32 monthly consecutive principal and interest payments in the initial amount of 51,470,06 each, beginning May 7, 2006, with interest calculated on the unpaid principal balances at an interest rate of 7.250% per annum; 207 monthly consecutive principal and interest payments in the initial amount of S 1,547.99 each, beginning January 7, 2009, with interest calculated on the unpaid principal balances at an interest rate based on the The Wall Street Journal Prime icurrently 7.000%), plus a margin of 1.000 percentage points, resulting in an initial interest rate of 8.000%; and one principal and interest payment of $1,548.31 on April 7, 2026, with interest calculated on the unpaid principal balances at an interest rate based on the The Wall Street Journal Prime (currently 7.000%). plus a margin of 1.000 percentage points, resulting in an initial interest rate of 8.000%. This estimated final payment is based on the assumption that all payments will be made exactly as scheduled and that the Index does not change; the actual final payment will be for all principal and accrued interest not yet paid, together with any other unpaid amounts under this Note. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late charges; and then to any unpaid collection costs. 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. VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index which is the The Wall Street Journal Prime (the "Index"). The index is not necessarily the lowest rate charged by Lender on its loans, if the Index becomes unavailable during the term of this loan, Lender may designate a substitute index after notice to Borrower. Lender wilt tell Borrower the current Index rate upon Borrower's request. The interest rate change will nat occur more often than each Year. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 7.000°t° per annum. The interest rate or rates to be applied to the unpaid principal balance of this Note will 6e the rate or rates set forth herein in the "Payment" section. Notwithstanding any other provision of this Note, after the first payment stream, the interest rate for each subsequent payment stream will be effective as of the last payment date of the just-ending payment stream. Notwithstanding the foregoing, the variable interest rate or rates provided for in this Note will be subject to the following minimum and maximum rates. NOTICE: Under no circumstances will the interest rate on this Note be less than 6.000% per annum or more than the maximum rate allowed by applicable law. Whenever increases occur in the interest rate, Lender, at its option, may do one or more of the following: IA} increase Borrower's payments to ensure Borrower's loan will pay off by its original final maturity date, (B) increase Borrower's payments to cover accruing interest, (C) increase the number of Borrower's payments, and (D) continue Borrower's payments at the same amount and increase Borrower's final payment. PREPAYMENT PENALTY. 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. Upon prepayment of this Note, Lender is entitled to the following prepayment penalty: Borrower(s) shall agree to pay a penalty of three percent (3°l0) on any prepayment in the first (1st) year, two percent 12%) on any prepayment in the second (2nd) year, and one percent (1°1°) on any prepayment in the third (3rd) year, however said prepayment penalty will not be assessed if total repayment is made upon transfer of said property. Except for the foregoing, Borrower may pay 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: Vartan National Bank, 3601 Vartan Way Harrisburg, PA 17110. LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, Lender, at its option, may, if permitted under applicable law, increase the variable interest rate on this Note by 2.000 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 interest rate applicable to this Note at the time judgment is entered. 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. PROMISSORY NOTE Loan lyo: 6157796 (Continued) Page 2 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 shat{ 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 if Borrower, after receiving written notice from Lender demanding cure of such default: 11 } cures the default within fifteen 115) 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. 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. GOVERNING LAW. This Note will be governed by federal taw applicable to Lendar and, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania without regard to its conflicts of law provisions. 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 Dauphin County, Commonwealth of Pennsylvania. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of 530.00 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 indebtedness against any and all such accounts. COLLATERAL. Borrower acknowledges this Note is secured by the following collateral described in the security instruments listed herein: (A) a Mortgage dated December 7, 2005, to Lender on real property located in Dauphin County, Commonwealth of Pennsylvania. (B) an Assignment of All Rents to Lender on real property located in Dauphin County, Commonwealth of Pennsylvania. PROPERTY INSURANCE, Borrower understands that Borrower is required to obtain insurance for the collateral securing this Note. Further information concerning this requirement is set forth in the Mortgage and in the Agreement to Provide Insurance, all the terms and conditions of which are hereby incorporated and made a part of this Note. LINE OF CREDIT. This Note evidences a straight line of credit. Once the total amount of principal has been advanced, Borrower is not entitled to further loan advances. Borrower agrees to be liable for all sums either: IA) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower`s accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal records, including daily computer print-outs. PROTECTION OF LENDER'S SECURITY. If Borrower(s) fail to perform according to the covenants and agreements contained in the mortgage instrument, or if any action or proceeding is commenced which affects the property or title, thereto, or the interest of lender therein, including, but not limited to eminent domain, insolvency, code enforcement, or arrangements or proceedings involving bankrupt or decedent, then fender at lender's option may make such appearances, disburse such sums and take such action as lender deems necessary in its sole discretion, to protect lender's interest, including, but not limited to, disbursement of attoney fees, entry upon the proerty to make repairs and procurement of satisfactory insurance. Any amounts disbursed by lender pursuant to this paragraph with interest thereon, shall become additional indebtedness of the borrower secured by the Mortgage. Unless Borrower and lender agree to other terms of payment, such accounts shall immediately due and payable and shall bear interest from the date of disbursement at the rate stated in the note unless collection from borrower of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate which may be collected from borrower under applicable law. Borrower hereby covenants and agrees that lender shall be subrogated to the lien of any mortgage or other lien discharged, in whole or in part, by the indebtedness secured hereby. Nothing contained in this paragraph shall require lender to incur any expense to take any action hereunder. CROSS DEFAULT AGREEMENT. THIS AGREEMENT, by and between Borrower and Lender; WHEREAS, Lender is about to enter into a Commercial Loan transaction with Borrower pursuant to the terms and conditions of certain loan documents or other loans to Borrower; and PROMISSORY NOTE Loan No: 6157796 (Continued) Page 3 WHEREAS as an inducement to Lender to execute the Documents, and for other good and valuable consideration, Borrower is willing to cross collaterize their various obligations; NOW THEREFORE, intending to be legally bound hereby, Borrower for themselves, their successors and assigns, hereby agrees as follows: It is agreed that a default under any of the Documents bearing even date herewith, or under any other loan pursuant to which Borrower is directly or indirectly obligated to Lender, shall collaterize and secure all of the obligations of the undersigned referred to herein. IN WITNESS WHEREOF, intending legally to bind itself, its sucessors and assigns, Borrower has hereunto set its hand and seal on the day and year of this Note. CERTIFICATION AND AGREEMENT FOR CONTINUING PERFECTION AND COMPLIANCE. Whereas, the undersigned has applied to Vartan National Bank (the "Bank") for a certian loan and/or financial accommodations and Whereas, the Bank has agreed to make the aforesaid loan, but only upon the conditions contained in the Commitment Letter (hereinafter called the "Loan Agreement"), and Whereas the undersigned deem(s) it in /their) best interest to obtain the aforesaid loan, Now therefore, in consideration of these premises and other good and valuable consideration, it is agreed as follows: 1} The undersigned will perform any and all steps requested by the Bank to: la) create and maintain in the Bank's favor a valid lien and security interest in the collateral to be pledged to Bank pursuant to the terms of the Loan Agreement, including, but without limitation, the execution, delivery, filing and/or recording of promissory notes, guarantees, mortgages, security agreements, fianancing statements, continuation statements and the like, necessary in the opinion of Bank's counsel to effectuate the terms of the Loan Agreement, (b) execute and deliver any other documents necessary, in the opinion of the Bank's counsel, to complete, perfect and continue, but not to modify or change the terms of the Loan Agreement, and (c) the undersigned Borrower agrees, in consideration of VARTAN NATIONAL BANK, the Lender disbursing funds for the closing of a loan on Borrower if requested by the Lender or any party acting on behalf of the Lender, to fully cooperate and adjust for clerical errors, any and all closing documentation deemed necessary or desirable in the reasonable discretion of Lender to enable Lender or to ensure enforceability of the loan if dept in lender's own portfolio. The undersigned Borrower agrees to comply with all the above noted requests by. Lender within 30 days from the date of mailing said request by the Lender. The Borrower agrees to assume all costs, including, by way of illustration and not limitation, actual expenses, legal fees and marketing losses for failing to comply with lender's requests in the above noted time period. The undersigned Borrower does hereby agree and covenant in order to assure that loan documentation exuecuted this day will conform and be acceptable in the marketplace in the instance of transfer, sale or conveyance by Lender of its interest in and to said loan documentation. 2) The undersigned agrees that terms, provisions and conditions set forth in the Loan Agreement, to the extent that same are not contained in the final documents or have not been fully complied with by the time of the disbursement of loan proceeds to the undersigned by the Bank. shall survive the closing of the loan. 3} The undersigned further agrees to provide the Bank with and/or certifies to the Bank (a) since the date of the application for the loan which is being closed concurrently with the delivery hereof ("Closing"1 there has been no unremedied adverse change in the financial or any other condition of the Borrower or any of the undersigned, Ibl the undersigned received a true and complete copy of each document or other instrument signed in the connection with the closing, Ic) all taxes of the Borrower and undersigned are current and all future taxes will be paid when due. 41 The undersigned acknowledges and agrees that failure to comply with the terms and conditions contained herein, or to furnish the Bank with proof thereof upon Bank's request, shall constitute an act of default under the mortgage and/or security agreement executed by the undersigned in connection with this loan transaction, which default shall entitle Bank to any and all remedies, including the accerlation of the unpaid balance of the loan, set forth in the said mortgage and/or security agreement. CALL PROVISIONS. The loan will be amortized based on a twenty (20) year amortization schedule with five (51 year call provisions. DEPOSIT ACCOUNTS. Borrower shall maintain a deposit account relationship with Vartan National Bank. If Borrower does not maintain a deposit account with a compensating balance of 3°l0 of the outstanding balance, the Bank may increase the loan interest rate by 100 basis points. 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 inaccuracylies) should be sent to us at the following address: Vartan National Bank 3601 Vartan Way Harrisburg, PA 171 10. 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. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. 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 liabi{ity. Alf 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%1 OF 7HE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS IS500) 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 T)ME 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 CONNECT{ON 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. PROMISSORY NOTE Loan NQ: 6157796 (Continued) Page 4 PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. 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 lS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORRO ER: . -~ X !%~~iZ?,- tSeall Virginia .Adams LASER PRO landing. Ve,. 5.~Q00.006 Gapr. HM~nE FinenpiM Splutipn,, Inc. 1997. =005. RII Rigntf Ressnatl ~ Pp C:lPRO gURRCFRlPlt070.FC TR~t00 PP In r ,,.:. ~~~aq~y BROADS ~~1__--- & SINON LLP Kenneth J. Rollins ph (717) 237-6782 fx (71?) 232-1459 la~ollins@rhoads-sinon. c om r'v.>:ro 9336/13 March 12, 2007 Very truly yours, BROADS & SINON LLP By: Kenneth 3. Rollins Re: Centric Bank (f/k/a Vartan National Bank) -Loan Nos. 6157796 & 6158190 Virginia R. Adams 917 W. Louther Street Carlisle, PA 17013 VIA FIRST CLASS MAIL Dear Ms. Adams: We are writing on behalf of our client, Centric Bank, formerly Vartan National Bank (the "Bank"). The Bank previously informed you that you are in default under the terms of that certain Promissory Note dated December 7, 2005, in the principal amount of $184,480.00, as well as that certain Promissory Note dated February 10, 2006, in the principal amount of $62,000.00 (collectively, the "Notes"), due to your failure to make payments as required pursuant to the terms of those Notes. The Bank has generously offered to work with you in developing a mutually beneficial workout strategy with respect to the above loans; however, you have failed to provide any indication that you would be interested in such a discussion. Accordingly, and as permitted under the Notes, the Bank hereby notifies you that it has exercised its right to declare the entire unpaid principal balance on the Note and all accrued unpaid interest and fees connected therewith, immediately due and payable. As of the date of this notification, the total amount due on the Notes is $60,236.54 and $31,797.23, respectively, plus legal fees of $2,500.00 incurred as a result of collection efforts. You should contact. the Bank immediately to obtain current payoff information. Payment in full must be made within ten (10} days of this letter in order to avoid further legal action. If you have any questions regarding the foregoing, please contact the undersigned. cc: Doris K. Ney, Chief Credit Officer E. Ralph Godfrey, Esq. 641809.1 Rhoads 6rt Sinon LLP • Attorneys at Law • Twelfth Floor • One South Market Square P.O. Box 1146 Harrisburg, PA 17108-1146 • ph (717) 233-5731 fx (717) 232-1459 • www.rhoads-sinon.com PROMISSORY NOTE References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing ""'"" has been omitted due to text length limitations. Borrower: Virginia R. Adams 917 West Louther Street Carlisle, PA 17013 Lender: Vartan National Bank Progress Office 3601 Vartan Way Harrisburg, PA 17110 (717) 657-7727 Principal Amount: $62,000.00 Initial Rate: 8.500% Date of Note: February 10, 2006 Maturity Date: August 10, 2006 PROMISE TO PAY. Virginia R. Adams ("Borrower") promises to pay to Vartan National Bank ("Lender"}, or order, in lawful money of the United States of America, the principal amount of Sixty-two Thousand & 00(100 Dollars (562,000.00), together with interest on the unpaid principal balance from February 10, 2006, until paid in full. PAYMENT. Borrower wilt pay this loan in full immediately upon Lender's demand. If no demand is made, Borrower wilt pay this loan in one principal payment of 562,000.00 plus interest on August 10, 2006. This payment due on August 10, 2006, will he for all principal and all accrued interest not yet paid. In addition, Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning Marcfi 10, 2006, with al! subsequent interest payments to he due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late charges; and then to any unpaid collection costs. 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. VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index which is the The Wall Street Journal Prime (the "Index"). The Index is not necessarily the lowest rate charged by Lender on its loans. ff the Index becomes unavailable during the term of this loan, Lender may designate a substitute index after notice to Borrower. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more often than each Month. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 7.500% per annum. The interest rate to be applied to the unpaid principal balance of this Note will be at a rate of 1.000 percentage paint over the Index, resulting in an initial rate of 8.500% per annum. Notwithstanding the foregoing, the variable interest rate or rates provided for in this Note will be subject to the following minimum and maximum rates, NOTICE: Under no circumstances will the interest rate on this Note be less than 6.000% per annum or more than the maximum rate allowed by applicable law. _ 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. 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: Vartan National Bank, 3601 Vartan Way Harrisburg, PA 17110. LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, Lender, at its option, may, if permitted under applicable law, increase the variable interest rate on this Note to 3.000 percentage points over the Index. 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 interest rate applicable to this Note at the time judgment is entered. DEFAULT. Each of the following shall constitute an event of default ("Event of Default") under this Nate: 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. PROMISSORY NOTE Loan Flo: 6158190 (Continued} Page 2 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 1'12) months, it may be cured 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. 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. GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania without regard to its conflicts of law provisions. 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 Dauphin County, Commonwealth of Pennsylvania. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of 530.00 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 eMent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts. COLLATERAL. Borrower acknowledges this Noie is secured by the following collateral described in the security instruments listed herein: (Al a Mortgage dated February 10, 2006, to Lender on real property described as "Real Property located at 467 Union Street, Millersburg, PA 17061 " and located in Dauphin County, Commonwealth of Pennsylvania. tB) an Assignment of All Rents to Lender on real property described as "Real Property located at 467 Union Street, Millersburg, PA 17061" and located in Dauphin County, Commonwealth of Pennsylvania. {C} a Mortgage to Lender on real property described as "Real Property located at 478 Stone House Road, Carlisle, PA 17013" and located in Cumberland County, Commonwealth of Pennsylvania. (D) an Assignment of All Rents to Lender on real property described as "Real Property located at 478 Stone House Road, Carlisle, PA 17013" and located in Cumberland County, Commonwealth of Pennsylvania. PROPERTY INSURANCE. Borrower understands that Borrower is required to obtain insurance for the collateral securing this Note. Further information concerning this requirement is set forth in the Mortgage and in the Agreement to Provide Insurance, all the terms and conditions of which are hereby incorporated and made a part of this Note. PROTECTION OF LENDER'S SECURITY. If Borrower(s) fail to perform according to the covenants and agreements contained in the mortgage instrument, or if any action or proceeding is commenced which affects the property or title, thereto, or the interest of lender therein, including, but not limited to eminent domain, insolvency, code enforcement, or arrangements or proceedings involving bankrupt or decedent, then lender at lender's option may make such appearances, disburse such sums and take such action as lender deems necessary in its sole discretion, to protect lender's interest, including, but not limited to, disbursement of attoney fees, entry upon the proerty to make repairs and procurement of satisfactory insurance. Any amounts disbursed by lender pursuant to this paragraph with interest thereon, shall become additional indebtedness of the borrower secured by the Mortgage. Unless Borrower and lender agree to other terms of payment, such accounts shall immediately due and payable and shall bear interest from the date of disbursement at the rate stated in the note unless collection from borrower of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate which may be collected from borrower under applicable law. Borrower hereby covenants and agrees that lender shall be subrogated to the lien of any mortgage or other lien discharged, in whole or in part, by the indebtedness secured hereby. Nothing contained in this paragraph shall require lender to incur any expense to take any action hereunder. CROSS DEFAULT AGREEMENT. THIS AGREEMENT, by -and between Borrower and Lender; WHEREAS, Lender is about to enter into a Commercial Loan transaction with Borrower pursuant to the terms and conditions of certain loan documents or other loans to Borrower; and WHEREAS as an inducement to Lender to execute the Documents, and for other good and valuable consideration, Borrower is willing to cross collaterize their various obligations; NOW THEREFORE, intending to be legally bound hereby, Borrower for themselves, their successors and assigns, hereby agrees as follows: It is agreed that a default under any of the Documents bearing even date herewith, or under any other loan pursuant to which Borrower is directly or indirectly obligated to Lender, shall collaterize and secure all of the obligations of the undersigned referred to herein. IN WITNESS WHEREOF, intending legally to bind itself, its sucessors and assigns, Borrower has hereunto set its hand and seal on the day and year of this Note. CERTIFICATION AND AGREEMENT FOR CONTINUING PERFECTION AND COMPLIANCE. Whereas, the undersigned has applied to Vartan National Bank (the "Bank") for a tertian loan and/or financial accommodations and Whereas, the Bank has agreed to make the aforesaid loan, but only upon the conditions contained in the Commitment Letter (hereinafter called the "Loan Agreement"), and Whereas the undersigned deem(s) it in (their) best interest to obtain the aforesaid loan, Now therefore, in consideration of these premises and other good and valuable PROMfSSORY NOTE Loan No: 6158190 (Continued) Page 3 consideration, it is agreed as follows: 1) The undersigned will perform any and all steps requested by the Bank to: (a) create and maintain in the Bank's favor a valid lien and security interest in the collateral to be pledged to Bank pursuant to the terms of the Loan Agreement, including, but without limitation, the execution, delivery, filing and/or recording of promissory notes, guarantees, mortgages, security agreements, fianancing statements, continuation statements and the like, necessary in the opinion of Bank's counsel to effectuate the terms of the Loan Agreement, (b) execute and deliver any other documents necessary, in the opinion of the Bank's counsel, to complete, perfect and continue, but not to modify or change the terms of the Loan Agreement, and Ic) the undersigned Borrower agrees, in consideration of VARTAN NATIONAL BANK, the Lender disbursing funds for the closing of a loan on Borrower if requested by the Lender or any party acting on behalf of-the Lender, to fully cooperate and adjust for clerical errors, any and all closing documentation deemed necessary or desirable in the reasonable discretion of Lender to enable Lender or to ensure enforceability of the loan if dept in lender's own portfolio. The undersigned Borrower agrees to comply with all the above noted requests by lender within 30 days from the date of mailing said request by the Lender. The Borrower agrees to assume all costs, including, by way of illustration and not limitation, actual expenses, legal fees and marketing losses for failing to comply with tender's requests in the ahove noted time period. The undersigned Borrower does hereby agree and covenant in order to assure that loan documentation exuecuted this day will conform and be acceptable in the marketplace in the instance of transfer, safe or conveyance by Lender of its interest in and to said loan documentation. 2) The undersigned agrees that terms, provisions and conditions set forth in the Loan Agreement, to the extent that same are not contained in the final documents or have not been fully complied with by the time of the disbursement of loan proceeds to the undersigned by the Bank, shall survive the closing of the loan. 3) The undersigned further agrees to provide the Bank with andior certifies to the Sank 1a) since the date of the application for the loan which is being closed concurrently with the delivery hereof ("Closing") there has been no unremedied adverse change in the financial or any other condition of the Borrower or any of the undersigned, Ib} the undersigned received a true and complete copy of each document or other instrument signed in the connection with the closing, (c) all taxes of the Borrower and undersigned are current and all future taxes will be paid when due. 4) The undersigned acknowledges and agrees that failure to comply with the terms and conditions contained herein, or to furnish the Bank with proof thereof upon Bank's request, shall constitute an act of default under the mortgage andior security agreement executed by the undersigned in connection with this loan transaction, which default shat{ entitle Bank to any and all remedies, including the accerlation of the unpaid balance of the loan, set forth in the said mortgage andior security agreement. DEPOSIT ACCOUNTS. Borrower shall maintain a deposit account relationship with Vartan National Bank. If Borrower does not maintain a deposit account with a compensating balance of 3°~(i of the outstanding balance, the Bank may increase the loan interest rate by 100 basis points. 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 following address: Vartan National Bank 3601 Vartan Way Harrisburg, PA 17110. 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. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. 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 Nate, 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 (5500) 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 1N 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, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. 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 15 INTENDED THAT THIS NOTE 1S AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING 70 LAW. Seal) LASER PRO LPnalnµ Vn. 0.00.00.006 Cop,. MvlFld FlnAndJ Selutlana Ina 1997, 2000. All RIp1,u R~orvN. ~ PA C:IPROSWTE10Fl11fU0Z0.F0 TI4378 PR•10 l~ ~ ~ (`C ~ {,/ ~ ~ ~ d ~ r ~ J J a~ -~ ~ ~- ~- ~' ~. N r, r`' O ~--~ ~__ ~ -n --m --~ -;, ~_ `~ ~..~~ t _--x r~ ~,a --- z~~ :' ~ , :.C CENTRIC BANK, IN THE COURT OF COMMON PLEAS NATIONAL ASSOCIATION, CUMBERLAND COUNTY Plaintiff VIRGINIA R. ADAMS, CNIL ACTION - Defendant MORTGAGE FORECLOSURE ENTRY OF JUDGMENT AND NOW, this~day of April, 2007, Judgment is hereby entered in favor of the Plaintiff, Centric Bank, National Association, and against the Defendant, Virginia R. Adams, and damages are assessed in the amount of $64,797.23, plus accruing interest from the date of judgment, attorneys' fees and costs of collection. Pro onotary CENTRIC BANK, NATIONAL ASSOCIATION, Plaintiff v. VIlZGINIA R. ADAMS, Defendant 1N THE COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL ACTION - MORTGAGE FORECLOSURE ENTRY OF JUDGMENT AND NOW, this 1'7'~~ay of April, 2007, Judgment is hereby entered in favor of the Plaintiff, Centric Bank, National Association, and against the Defendant, Virginia R. Adams, and damages are assessed in the amount of $34,686.87, plus accruing interest from the date of judgment, attorneys' fees and costs of collection. Pro onotary k ~ Kenneth J. Rollins, Esquire PA I.D. No. 200578 Rhoads & Sinon LLP PO Box 1146 Harrisburg, PA 17108-1146 Phone: 717.23 3.5731 /Fax: 717.237.6790 Attorneys for Plaintiff Centric Bank, National Association CENTRIC BANK, NATIONAL ASSOCIATION, Plaintiff v. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY No. Q?' - .~~ ~ l.. t u ~ 1.~~ VIRGINIA R. ADAMS, Defendant CIVIL ACTION - MORTGAGE FORECLOSURE NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THERETO Notice of Defendant's Rights To: Virginia R. Adams 917 W. Louther Street Carlisle, Pennsylvania 17013 A judgment in the amount of Sixty-four Thousand Seven Hundred Ninety-seven and 23!100 Dollars ($64,797.23), plus accruing interest from the date of judgment, attorneys' fees and costs of collection, has been entered against you and in favor of the Plaintiff without any prior notice or hearing based on a Confession of Judgment contained in a written agreement or other paper allegedly signed by you. The Sheriff may take your money or other property to pay the judgment at any time after thirty (34) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) 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 HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIItE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. 1 '' CUMBERLAND COUNTY BAR ASSOCIATION 32 South Bedford Street Carlisle, Pennsylvania (717) 249-3166 Respectfully submitted, BROADS & SINON LLP Dated: Apri19, 2007 By: Ke J. Rollins, Esquire One South Market Square P.O. Box 1146 Harrisburg, PA 17108-1146 (717) 233-5731 Attorneys for the Defendant, Virginia R. Adams, for the purpose of confessing judgment; Attorneys for the Plaintiff, Centric Bank, National Association, for all other purposes f--, ~ c~ . _..l .-i ~°' ~ -t'1 -- '"'~'3 1'S1 ~.1 _:; _.. r` r", i ..'t'. .'" '' ~. i~F w ~. ~ _ Y a , i - y ~. Kenneth J. Rollins, Fsquire PA I.D. No. 200578 Rhoads & Sinon LLP PO Box 1146 Harrisburg, PA 17108-I 146 Phone: 717.23 3.5731 /Fax: 717.237.6790 Attorneys for Plaintiff Centric Bank, National Association CENTRIC BANK, NATIONAL ASSOCIATION, Plaintiff v. VIlZGINLA R. ADAMS, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY No. C~'?' - a21~~ t~ t c~ ~L . t CIVIL ACTION - MORTGAGE FORECLOSURE NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THERETO Notice of Defendant's Rights To: Virginia R. Adams 917 W. Louther Street Carlisle, Pennsylvania 17013 A judgment in the amount of Thirty-four Thousand Six Hundred Eighty-six and 87/100 Dollars ($34,686.87), plus accruing interest from the date of judgment, attorneys' fees and costs of collection, has been entered against you and in favor of the Plaintiff without any prior notice or hearing based on a Confession of Judgment contained in a written agreement or other paper allegedly signed by you. The Sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) 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 HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. ., CUMBERLAND COUNTY BAR ASSOCIATION 32 South Bedford Street Carlisle, Pennsylvania (717) 249-3166 Respectfully submitted, BROADS & SINON LLP Dated: Apri19, 2007 By: e th J. Rollins, Esquire One South Market Square P.O. Box 1146 Harrisburg, PA 17108-1146 (717) 233-5731 Attorneys for the Defendant, Virginia R. Adams, for the purpose of confessing judgment; Attorneys for the Plaintiff, Centric Bank, National Association, for all other purposes ~..? :V; -~°~ i'°3 ~ . . ~.... r...~ ,, ... -~. _. i ;~ N `;~: '"'" t~. ' :~ t A CENTRIC BANK, IN THE COURT OF COMMON PLEAS NATIONAL ASSOCIATION, CUMBERLAND COUNTY Plaintiff VIlZGINIA R. ADAMS, CIVIL ACTION - 1, Defendant MORTGAGE FORECLOSURE RULE 236 NOTICE OF ENTRY OF CONFESSED JUDGMENT To: Virginia R. Adams 917 W. Louther Street Carlisle, Pennsylvania 17013 You are hereby notified that on April ~ ~ 2007, judgment by confession was entered against you in the amount of $34,686.87, plus accruing interest from the date of judgment, attorneys' fees and costs of collection. Attached hereto are copies of all documents filed with the Prothonotary in support of the confession of judgment. Dater Pr thonotary r.. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 32 South Bedford Street Carlisle, Pennsylvania (717) 249-3166 I hereby certify that the following is the address of the Defendant: Virginia R. Adams 917 W. Louther Street Carlisle, Pennsylvania 17013 Kenne J. ollins Attorney for Plaintiff CENTRIC BANK, IN THE COURT OF COMMON PLEAS NATIONAL ASSOCIATION, CUMBERLAND COUNTY Plaintiff v. No. ~'j - 1.., Icy; L,~ . ~~ VIRGINIA R. ADAMS, CIVIL ACTION - Defendant MORTGAGE FORECLOSURE RULE 236 NOTICE OF ENTRY OF CONFESSED JUDGMENT To: Virginia R. Adams 917 W. Louther Street Carlisle, Pennsylvania 17013 You are hereby notified that on April .2007, judgment by confession was entered against you in the amount of $64,797.23, plus accruing interest from the date of judgment, attorneys' fees and costs of collection. Attached hereto are copies of all documents filed with the Prothonotary in support of the confession of judgment. Date: Pr honota YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 32 South Bedford Street Carlisle, Pennsylvania (717) 249-3166 I hereby certify that the following is the address of the Defendant: Virginia R. Adams 917 W. Louther Street Carlisle, Pennsylvania 17013 Kennet .Rollins Attorney for Plaintiff SHERIFF'S RETURN - REGULAR CASE N0: 2007-2168 P COMMONWEALTH O PENNSYLVANIA: COUNTY OF CUMB RLAND CENTRIC BANK N TIONAL ASSOCIAT S ADAMS VIRGINIAIR ROBERT BITNER Cumberland Cou says, the with ADAMS VIRGINIA DEFENDANT at 2 E MAIN S Sheriff or Deputy Sheriff of y,Pennsylvania, who being duly sworn according to law, COMPLY-CONFES JUDGMENT was served upon the at 1835:00 HOURS, on the 14th day of May 2007 T PLAINFIELD, PA 17081 VIRGINIA ADAMS by handing to a true and attested copy of COMPLY-CONFES JUDGMENT CONF OF JUDGMENT. RULE 236 NnTTCF_ together with RULE 2958.1 NOTI E and at the same ime directing Her attention to the contents thereof. Sheriff's Costs: Docketing Service Postage Surcharge s~as~o p ~1 Sworn and Subsc before me this of So Answers: 18.00 10.00 R. Thomas Kline .00 / 45.69 05/16/2007 RHOADS & SINON d to By: day Deputy S eriff A.D.