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HomeMy WebLinkAbout05-03-07IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS COURT DIVISION In re: Estate of the Late Timothy Lush, Deceased, No. 21-06-1108 CLAIM OF CITIZENS BANK OF PENNSYLVANIA 1. The CLAIMANT is CITIZENS BANK OF PENNSYLVANIA, a state banking institution, organized and existing under the laws of the Commonwealth of Pennsylvania, with one of its principal places of business at 525 William Penn Place, Suite 2720, Pittsburgh, Commonwealth of Pennsylvania 15219, and hereinafter sometimes referred to as "Bank". 2. On or about September 28, 2004, the Bank loaned to the late Timothy Lush, Deceased, the sum of $40,000.00. The loan of $40,000.00 is evidenced by a "Commercial Line Note" for $40,000.00 dated September 28, 2004, executed by Timothy Lush, as obligor, in favor of the Bank, as obligee, a copy of which is attached hereto, marked Exhibit "A" and incorporated herein by reference thereto. 3. The late Timothy Lush, Deceased, is obligated to the Bank on account of the "Commercial Line Note" (Exhibit "A") for the following sums: A Principal $32,491.29 - ,_ B. Interest $ 1,063.75 C. Late Charges $ 105.00 " "-? D. Total $33,660.04. ' `Y DATED: Apri130, 2007 - ' '~ - _~ ~_ J ~~ -- -. '. REAM, CARR, MARKEY & WOLOSHIN LLP (Formerly Kain, Brown & Roberts LLP) BY: Jack F. Ream, Esquire 119 East Market Street York, PA 17401 I.D. 10241 Phonel-717-843-8968 Fax 1-717-846-6676 E-Mail JckReam@aol.com Attorney for Plaintiff Citizens Bank of Pennsylvania APR 23 '07 14:45 FR SPECIAL RSSETS 412 867 2463 TO 917178466676 P.03i15 (TITZENS EA1v1C Baamwer(s) Nacre and Address: TAtOTHY LUSH D/1!A LDIeATY Asai.WQ]!KS 35 lA9i" LIDL-RIY AVEN17!< CARLI~.L-, rA 17013 Dsts of AgrCC'~tteaC 09/28/2004 initial Rate 5.750 Margia:l.00 9G hs:xiraam Rstt~ I8.00 X principal AmaaiG S 40.000.00 ® If cleoclaed baY, this loan u geraeanteed by the Sats1] Busiatas Aebui+titaeaIIOat ("SBA"). 1: [(~ ad aa~ede laeagd ^ ~3 ~i a i jam' mod" © 9~It~T~a~ylvela aer~'e., p oases atencawr. tw os+et ~~~. tw versa CNaenls errs d CaerrellpA se.aa,au-eate~a coc><An. Yaa~ xozE YROA~SlB TO PAY: POR VALUE RECEIVED, the uael<rsi~ (the "Boerowea~' or »y,,,») pry b P`Y !n the epda of the kadsr nsmod abetve (ths "Lender", "we", "tu°, art *ou:") the pr amaxtt:Zaowm above, a sneh lesser amount as aaay be ouoeuadieeg hdseuada. plus intaeat. coats and Lees as deacn'bed hesleia. REVOLvIIHG ]t+'SATi1RE: This Note poesases a txvdviag Canners. Upear ss>i:factiom of the oooditiona set faeth is titia Note. and subject bo ergs ratrietions and limioations abated Last, Bortneaer shall ba eaQRled m beatrow up to ~e Lu11 principal ataouiat of the Nett: and b repay and n~orrvw Srom time to time ehering the tens of the Nots. Iafoamacan veldt tsgtad to any loans a sdvatttes or letters of credit issued tmekr this Nam uhall be reoordsd sad maiahiaad by Lerida in its internal nxads and such rxa+da shall 6e ooachaave as to the ioformttion set t~ therein absear maerifgt error. Leosdd's ~~ m record ,~ date and amotmt aef coy loner a edrame: err le:lbm of credit shall nett learnt er othenvlse affect the tA~of oeodit Sasevarc cinder tbit Nobs to repay the PtiociPal atnotmt of the loaner a adwnoes err Bomower witlt a +wlm all feasetese aeartaieg tbanoa. Leader shall not be obligated m paovide ogpy of the rsoaad on a pe:iodia basis. Borroru~ec sleall be entitled m ittspoct eR eibtiin a Dopy oftha record ehering Leader's bttaiaess parrs. CONDITION'S FOR ADVANCES: Tf these is no Default (as ehd'rttod blow) under this Note, Borrower rhall be entitled to bestow merrier under this Note (subject m the limibatiaos desor-bcd above) tinder the Laller+ritta txas~tioas: At the tittle of each sdrttttce regaestod by ] under this Notc, ebe Borrower edaaU have ewmplied with all erf the barns, eroaditieus aa~d regoiremteats of that exttaia Busmeea Loan and Seauity A~eemeot beeaem Baat»wrer and bender and dated the date hereof (the "Loan Agreement" ). The Leader assa•es the tigLt to request evidatee aatisSoboty b it that, ss the time of each advrace, there exists ao De$uh a evens of DeLault trader this Note, the Lem Ageesnteat or sny doc»tmau a iaaRttatma aeliered purataat to eu in oomeetion with this Note. Lmda~ tatty barrniaabe my feather advanot;! tepom DeSult by l3anvnes eu, sbsmt Deiwlt, upon deammd tar payment edthis Nose.. attx~. mss demoted payment in Lull under thu Note at any date, is its sole diaanoon and without 38L6n Nave • Rev. etwe! .. EXHIBIT "A" RPR 23 '07 14 45 FR SPECIAL ASSETS 412 86? 2463 TO 917178466676 P.04i15 Page 2 L1ETI'BhiS OP CI~1T: If dress it ao Ddault tnda thu Note, Borrower aball be etriitled to togncst that ~e Bsalr issue oommstsial a awdby kttea o[eredit nodes ffiia Note (sabjeet m the limitations described above)pestttaot a the fallowing conditions: (s) iswaaee sf Centers of CtedR. Prom time a time on aqy buaitkae day occuteiag prig to Default a demand hsramder, the 13arrover »>~ regtust the iasuaace of carnmracial or saadby letoas of credit (each a "Letter of t~edit" and oolieaivelyr, "IRtons of Gredit") fairs own acootmt im taspoet of obligatioaa of the Borrower m tnstad lint amotmas (each such stated fact amount not a be less than 51,000) retinated by flte Bonrowar oa snch dsy wi9t au e~tpity dace not later than the eerlia of one yea $oen tie dare of such ieanner err exemd the aocpiry dstc of an acisting Letter of G~odtt previot>s~r rented hea+ttoder to a data not htmQ than arse year 8rom the date of each acteasiem. Kd isatnace oe n:txasioa of a Letter of Gedit shall be made ~ aftet giving effect thcteto: (a) the aggregate face >tlomotnt of all outrmding Letttxs of Credit, OYL4 (b) thw aggcegtue S P~P~ tuetouot of all oWStanding advance under this Note n o:eaoet than (e) the principal amamt of thin Noce. To raquea the iaeuaooe of a i.eeser of t,~edit (ot the exxasion of ao outsdantbng Letter of Credit) the Borrower shall land deliver to the 8aak • feria requesting the :m~•*n- of a Ldta of t~edit, a ideatifyioa the Letts a2'Ctrodit to be atrraded the daft of issrraooe or gcoeoafotb the date on whirl, each Letter of Credit is to expire (which tthall comply with tl1e limitatioaa set out above) as well as submitting the appeopriam ktkr of credit application on the Baak'a seaodard farm. Each Letba of Credit irsoed by the 8seek shall be, in addiriso to the lams hereof, subject to the tams and oouditiaas of nay 6otm of kttrs of eeedit appliatioa a other agrameat submitted a wasted into by the Bor:ora in caoneetian wiflt the isamoe of nay Lctta of C~odit fa the want of any ineotsais~aey between the te:m: and conditiotss of this Noeq the Loan Agreement, and the teams of nay form letter of reedit appliatieo ex other agreaoosat submitted or eateeed into by the Borrower in oeonection wjth the isansnce atattpr Lcttx of (kedir. the teems and oafditian of such letter of asedit appliptioa a odor agiroemart shall ooauoL (b) Relmbwraeawt Tf the 13adt shall heaor or otherwise malts any disbustemwt in respect of a Letts of Credit, the Sottower shall reimbtnse the Bask is the full principal ataouat of ouch disbtasemwt by payiaB to the Beak m smamt equal td retch disbnttscmmt not hoer than the crone of btrsineaa ao the day such diebutsemact is made. l7otwitb~odiag the forogoiag; die Boemwn~ may, subject to the seems sad oooditiaos of this Nose, regwd that meh trimbttesement payment be Saaaeed by cttaart oSm advaaoe heraatdsr. '[he Horrowa aclmowkdges end agrees that the Bmk is coder no obii®etiat to so bean atgr such troqueatsad that name the 8orrowec shall reimbta~se the Beak in full on the date atop ditbnoement is nark., the tmpeid amouse thereof tthill bear interest, for each day from and iaehtdirts flee date of such tmrarnbtased disbtaawtem is made b brit excluding she due that the Boerowa rembrasa such ~sbtteaemmy at the rate per ssmtem then applidtk to advances hessundcr. (e) )Leaser of Crtalft Fns. The Borrower agrees m pay >n rho Hoak a Letter of Qedic fa is as ataouat egtnl to the t5aa applinbk interest rate for advances hesertodes multiplied by the stated fete aenotmt of all Letaers of C7rodet ouateadiog, arch See m be pad ttaoatbly is mesa m aeeordsttos with the payment ttehoddod set out below. 1>yc Beno~wer 5uther agrees to 4ey to the Bank t on the dsx of (x) the isauaaee oieach Letter of CtediL (y) each itt~ is the stated fan tuna»nt (thereof end (z) each exeeasioa (sus or otherwise) of fire stated expiry dau thereof, m itavm;e lt:e u provided far let fhe learn of atedit applieatioa or othee agreerrrwt submitted or erataed into by the Borrower is eoaaecbon •Yith such isalas~oe, ittarwa or exteaaioci, and (ii) all rtmonabk owts and expenses iaattred by the Bleak io eaaxetion with such Letts of t]tedit. (d) Casa GtlMaallst-tloq. N the Bmk shell male demand haeundar or upon the oectamee of say DdanlS an the day that the Haerowee receive notices from the Bank demmding thK deposit of cash oellasetal, tbs Horrors:fali deposit in m aooouat whh the Beak is the mme of and for the benefit ofthe etak sa ataount is cash equal to the aggregate ataamt of all Letttta of Coedit that outstandisg. Stteh deposit shall be hsUi by the Bank sa eoliaeetal Sur the payment sad perlberomoe othhe obligations of the Barowe with tepees to such aetsnndiag Letlaa od'Ceetlit, this Nee, ttte Loan Agreement. sad atsy application a agreement submitted or mta~o¢ into by the Borrower in oc®eotion with the inmate of eery Letter olaredit. The Sank shall hsve txchrme dominion and oonocol, including the exclmivc right of wifhdtawsd, over such amount. Other then iarallt earned on the iavesmteat of suet deposits, which ouch inveaemettts shall be at fha optieo sad sole discr+etian of the Hank and ac the Borrower's risk and eacpeoae, such deposit shall not bear inter Inktesk or profit, if say, on such iavestmaaa shell acctmaiatc in Larch acoormt Maoeys is such aoeouat shall be applaud by the Beak to reimbtaae the Bank foe Lrttar of Qedit disbmaemasts for odhich it has act been reimbusaed and. to flu exemt not so applied, shall beheld for the satiaSctiea of the taimbneseimsnt obligatiau of the Borrower for outsanding Lsesers of Crodu or, if demand has hem made henttodes, be applied to satisfy other obligatiaas of the Borrower under this Noss >f the Hoesower is required a provide m amotrot oicash wlhtterai hereunder u a result of the oocuaence of a Default, ssu9 the Bask shall refsaia 8esa demanding payment heretmdet; such amount (to the extent not applikd as ttf'aeaaid) tbail be rehaaed to the Hearawer within 3 bnsitacea dgya sftcr all Desalt have hew toted ar waived. RPR 23 '07 14:45 FR SPECIAL ASSETS 412 867 2463 TO 917178466676 P.05i15 Page 3 y~Qr~~~ II~EST RATE: htraeat ahsll aocnse on Chic Note beginning QZ the initial Rau act forth shoot. 77»s Note has a vamble intatsat rate fiattre. the itrtetest rate may change fioom time to time if the Index Rate idauified below ohattges. hstaect ahaA be calculated at a variable rate equal to the sum of the Margin shown abouK, Pins the hdeyt Rate. Any ~ ins the inmaeat rate resaltbtg from a chatsge in rho ir-dax Rate will be effoedva oo the due of each eidmge in bs ladax Rate. For SBA guaeatiteed ktae. the interest rate will change oa the fist day of the alerdar month follomeitsg a change is the laden Rama. 'T'his inmetrwt rue chmgc will not onset snare oflea than once each tnamth. Imm~eu shall be camaputed oa the bads aSacad days ehtpsed over s365-day year. is the event of a DeAult (at ddined below). Leader may decln,e tlwt Inea+est Shari accrue on this Nom u tl-c Ilefaalt Rste, sa provided ~ is the aertioo below ng~8 "Powers Upon Default" IIVDE7K ]RATE: The lndatt Rats for this Nome shall be Ihs wall 3teent Jotaeal psimc Rack. The "wall street Jouraat Prime Rome" is delked as the "Prime Rsme" tar domartie btmlrs, ere published is ~w lj Si~act Jaanal . is the'~teary Rates" section, If orote Than sae inch tax is published on atgr given day, the highest pubSsbed rats ahsli ba wed to detanmhre be Lsdatt Rata. Tha "Prime Rate" is not naessaily the k-west rate oif'eted by Latch, nor by the ktsdavt wbotx tame tae surveyed by 1be wall Sezet JonmaL Yf w 1 ~deet Jglg~ ceases b publics a "Prime Rate,' the Leads may sheens a wbsoAsme souroe for she Primers Rate or may choose a stnbstittsae itsdat. If the Letsder ohoosaa a substitute index. ft mry alw choose a aubatiteae nurgia so that flee new index and margin result is as interest rate snbsmtislly similar m the Interest Rama in c1I'ed ere tlta tine the Prime Rem ceases b be published in ~ Wad Street JouraaL MA7~lUM lRA7T: 'Ih itttattat rue oa thin Note shall not exceed the Rate set forth about. PAYMENT SCIn1EDUI.E: This Nome is payable ON DTeMAND. Umsl denrard is made, Barmwes shall pay the pei:reipal and iaRerat aooosding b the foRoaring schedule: the same dry of sash monTb thweaftar~~e fop at o~ month $om the due ba+eof and on ® If the box u the begirmiog of bit paragraph it checked, Borrower's regular monthly payments will be equal m flee sum of (a) aeertned iamerest and any other ahages posted by Lender u the sleet of the billing cycle. plus (b) sty amount wltieh is past doe. Plus (c) arty amount by which tae outstanding principal bala-ec under this Note exoeads the marimmn prioeipsl aaoamt of thin Nebo (set Seth u the beymttiug of this Note). Ibis minieanun monthly payment will mt etrdaoa the principal that is oatsamtliag uttda phis Note, sad will result in grata expenses over the life of this Note, la addition to the tninirntstn mcatbly paymast act forth above, this NomNom) Batrewer r~ lards 30 oeoaantive a ealetsdar month period (begiming oa the dste of more lhsn tsRy paroeat (509L) of the highest ausmsdipg priaeipao un~da~thss' J+Ioee far the Npaevxding 2 calendar months. Unless the boat u the beginning of the preoodirtg peustt~aph boa beets checked, Borrawa's regular tstonthly payrnast main be equal oo the iron of (a) aoesued itaetest sod nay other alurgns by I.aader u the close of the bs"W>u cyela. Plus (b) pritkipal is the miakatm attttnotat of (t S200A0 nor (n too percent (29fi) of the otmeaad'mg paincipal balaooe u the eleae of the biIIiag cycle, w~wr is greater (hotvsver, the minimum paymast well never exoeod the attire amount ,1~ (a) ~Y amo-at which is Peet doe. plus (d) sqy atnosmt by which Ane onstatanelasg Prins;pal baltaeo of this Nate stands the m:tcimum priaoipal aarouor of this Note (see forth ere the beginning of this Note). If you have m iadiaated oa the Applicsnon sad have cwmpkted tm audwrizartiorr on the form we provided b you. you atnhorize us to debit year C~titeas Sank business checlvog tsoootmt wills ut !'ltr all earns (dafmod~b~el wprovidad, however tbstthta Revision shaA neat lobtigaaa ui toNereate err allow soy ove:batl. >md fnatlser provided tlsat stsoh authority shall trot relieve you o[the obligation w asan+e tbu paymmts nee tsbade when due if thane see not su!lkient good funds in your aoeoeatt. You aademhnd @rat is eatebatsge for your sea m deduct Yea Payments ttomn yota checking accamt we hav. redaoad the iataeat tern Paribk by one paean (l!6). If you close your ehaeldog aoootat, if yon rervoke ytrta atttharizstiea m debit paymaster from yota checking aoootat; or if antoatwio payrnerts ate otherwise berrainazed for any rasots, we have the right m ineraae the Margin disclaed st the brgirming of thus Nom by oat paceut (1'/") without cry prior notice m yon. to Leader u tine address ~ ~ is are made by automatic debit of yea chcckiug aocamt; ytra must make paymrnta billing soatarnent in bnarfni wrreacy of the United Slams of America. If BeeewRr wants to pay the outat+mdigg balanea of this Note M fiat with a check of similar iaatnrmast that hat rush apeaial noantipp or moos on it a with iR bra aoe aerrrrirrare stun Noes, Borrower must send the payment ($:rclading special ttoeations or iasttuetioas) m the address far such paymcats Tinted on the biltirsg statement If Borrows wastes to pay be outstiesding balance of this Note !a Ertl! with a cheek or similar iustnaaene that has such slreoial aoettioas or iochucdoas oa it or wins iS erad a~nirrote: thin None, Borretver mess aerld the payatattt (including special nohtieas or insongions) to ebe address for ouch paymeua ]ismd oa rho billing sntatneat. Lf paytaent r1t full' is received u stay other address, (i) Leeder may ignore aqy special notations or itssnTUtious, and (ii) Lender's e:srbtiag nay sts°b cheek err other ias~tt m the t~edit Lira does trot teem that Lender has agreed to the speeiil tsotatioea err , APR 23 '07 14 46 FR SPECIRL RSSETS 412 867 2463 TO 917178466676 P. 06/15 Page 4 ItSQ1~S'1'IIVG ADVANCTs,4: You may regwst sa advance oa this iota by u~siag the special Icon ohecb aro wr'0 Five you. The LaOt~iog roles apply to your ate of special boat, eheelca: a) 2.est Oe t~alea ~ Lew t3aelta. Yves agree w o-ll us if spoeiorl lom chscks ate last or stolen, a if yon bcliave someone u uleag advatuxs oat this Note aadtoue your permission, The !lratett way m notify w is by oallatg ~ ere I-YOO.i.I~IISII~IE3S. b) 1Qorgd BPseial Lon Ckcf<s Yoa agree that a2 do trot have m pay arlY of Your special loan checks if we believe the sigottuee m the chock has bom forged, ualeas you tell stn to. then the dose oa vrhrchPoatdatad ~ I4est ~~' if you date a special loan cheek whh a dace chat is hoer yar actually w~rols the ~'id loan cheek, you agree that we may pay the special lom ~ ~~ ~ a~ pat i! to tlae ptiuci~pal baLnce of this Note on a date which is atlier than ehc date d) 9tppioe Pttyaaaat o, a tlpecid Loan C3acit, You cgs ask us w stop paY~ ~ aqY speaal loan ebcek you have rtritom that bas aoe boat paid by calling us at the telephone ttutanba shown oa Your stabemmt An oral stop payment order will stay is effect Lx fourteen (la) days, unless yon cattStat it is writing of tell nc m oaoeel it. You can oon5tm your stop paymqu oader by writing to ue at the address shown oa your ~- A w~rittea stop psyynaeatt request vv71 stay is effect for six (!7 taoat}u, unless you tell us m e:treel it. e) We An Net LaaWa. Wa wa71 twt ba liable if anyone fails to besot a apxial lore chcek written by you, tI Paylrg Spaeld Loan CYedn d Faeces of Yottt: CradiE Limit We do not Dave to pay say spaial lan check that wrould owse the ptisteipal balmoe of Chia Note to e~rceed the Psiaeipal Amotmt of this Note. I3owever, are may tb so if we choose. g1 P+-7~ Slee6tl Lana Oeeka ARer TamlaatMtt, We will sot psy any additional special leas t:ltecks presmtod to us far paytrteae slier are sad you rwdoa of faminstiaat of min Nshe. Ifyou terminate mis Note. you an71 be tt~poataible far P0.lriog atq addidoaal advances are make in pry spxial loan checks which are ptaeoted to us Sot ptrymattbefore aR have bad a rasoaable aaaunt of lima to implemrstt Your tetmimtion notices Once two have implemeatod your bamioatioa online, arc adll nut pay say additional special loan checks presorted b us !br payment. PR>ZPAY1f~'lq'1't This Note may be prepaid is part or in lull at soy time without patalty. i.Alit 1Zl: If any paytntnt of pamdpal or interest due hergmder is not paid ~rithia tea (SO) days of the due date, Leads may rtegtttre 13aaatver in pry • hue Lee equal b $Ne pereed (546) ot'ths overdue +motmt or 535.00, arhiabever v greater, is addition m std not in liar of further aoarral of iareresr on any overdue amount. Foe bupnew forms b aoaeaporatiaa boaorras ie- amottata ksa than of equal to Sl 0,000, the lender may assess a delingncmy elunge oltrvmty dollars (S~ or tat paroatt (1046) of each iaataUmatt or P+Ymeae. whichever is bidaer, which is is defiuh for mate than 15 days ANNUAL >F~E: Oa each yearly aaaiversary of the date of this Notc, You shall pay us m Annual Foe of 5100 by means of an Advance wader she Crodit Linc which shall not be sttbjaer m say refund upon teemiaation. SEG[Jlti'IY: This Note is secttted by all oallatetal described in the Loan Agreement, bogether with all seat:ida ~ other; property of Iiorsowa sow air ha?ea8tr hdd by Lends sad all deposits bother rhos 11ZA aoooimts) of I3atrower held by Leads. Aontowar gives Leader an express n ofsetoff agaittrt say such deposit aoeonots. X88 LOAN AI+ID SFCUItilY AGBEE<~iT: This Noe is subjtet m the tetras sad entitled m the bene5a of the Loan Ageatreat as the event there is say iaoonsisteooy between the provisioets of this Noce sad the pa+evisierts of7ha Lem A,gnammt, the psovisieas of this Note shall govaa. 'Thin Note, "I~a panel avert' orbs doatmeet areoutad is oonneaioa thmvrri>ti ate refeaad m in this Noce Beeowsr't obligatiertt uttda the Low Doeueaab ere referred m in this Noce as the 'Obligations". EVENTS OS 141iCi'AULT: Thin Note is payable oa demand. The iaeludsion of evemts of Dcfwlt hetesmder shall not limit lrads's ride to demand payrneat is its sore disaeeion. The fotlo•viug shall be eveao- of defauk under this Nok (sash reLensd m heetia ~ a "Desdt'~: (1) Pollute by 13oet+otver, or by arty Co-Obligor, indorser, guarantor or surety for of wads say of the Obliptons (etch reSetted m herein as s "Co-Obligor'~, to make fall std protttpt payma:t when, due. of say amount tequde~ed m be paid to Latch under any of me Loan Aoeuateub of at1Y other agtaemaat; RPR 23 '07 14 46 FR SPEC]RL RSSETS 412 867 2463 TO 917178466676 P.07i15 Page 3 (~ Priha+e by Bottttttrr or aqy Co-ObliEa to Perform, leap or obaeve aqy other tam, Pf0n~0. eoaditioo. agtaemat¢, wartanry a rquamatian oatttsioad is say of the Lana Doeutacata or any otber agteentptt wi$r a ID laver of Leadeq whioh lYihat Dominoes tax tea (10) dsys after notice thereof by Leader to the parson a easily required eo palorai, kocp or observe such tens. provision, oanditioa oovaoa~ ate, warrmty Dr tepteeeatstion; (3) If say repraeooadon, ot:temem, teport or DeaiScax trade a delivered by 8ouower or atq CoAD>i<gor is false err itaxrraet k say materid nespeot when made or delivered; (b) Tt ar}y adachtotmi; iltrs0ee prooas, lies. execatiott, h;vy, iajnaetion, or roaiversltfp issued or made sgaipst the Borrows, Co-0bligor err say ColLoetal aeour{rtg the Obliptioas (re[aized w here6r sw "Colbuaal'~ is not tsnwvud whbia thirty Cj0) days or it+e~Y fiAal jut>gmmt sad exacntioa issued against Barsowsr or at;p Co-0bli`or rernsias uaatis8od for thirty (30) days (5) The entry of a decree or asda for telsef with taspect in fhe 8atrotver or say Co-Oblige in as iovdunpuy ease te-der the faded b~opo~y law, as aovv err 6aealtar oaatstip-ted. or any offer sppiicabk fadcrd err oboe baalnttpeay. inaolversy or other aims7ar kw, or sppoioting a teceivar, liquidator, tntttee, ouatodiaa (or similar o$eist) of az foe the Barowa or arUi Co-Obligor, o: ocdaing the wss+diae-aP or liquidation of its amt which ~ not prampdy eoatested and released or discharged within ~Y (~) ~ (~ '~ coraateaoeuuat by the Bonowra err say Co-Obligor of a volmtmry core toads the federal baalo<uptry ]aw, as sow ooattitored of beteatEar amardod, or say odor appliable fedeed err stereo baakretptey, iaeolveaey a other timilrr law. or the eoaxat by Borrows err air Co-Obliga eo the appoiaaaeat of err taltetg potion by a roceiva, liquidator, tetutse, eustodim (or other similar official) of or for the Borranter a say Co-0bli®or a for sty subsdtorial part of its psopeny, or die making by Borrower or saY Co-Obligor of arry assipaoeat for ibe bmc5t of creditDes, a the iasolvenoy or the ifihtrt of the Borrower err argr Co-Obliga geoeraibr to P4Y its debts as such debt become due, or the taking of action by the Bottawar or any Co-Obtiger in Aad~eaaoe of srry of the foregoing; (7) Loss err destruction of err subahatitl damage to aqy malarial portion of any Collateral foe this Note; (g) Default abich hu sot beers cored during any applicable cute period is the prompt PaYa-em. pa'forawtee a oboervaaea of aqy Dam, provisioq ooMitieo, eaveaasy wattatrq+ a represcrrtatioa sot forth in W' mortgage, lien a eaoiaobraeoe aftEoeiag say Collateral for tins Noce, whdha or sot such ~ ~ ~ eeertmbtaoa is senior or juoat to header's irthrett abatis sad mortgage, lien err matmhtaaoe bas bees waeaaed to by Larder, Provided, however, that rtotltigg heroin shall be deemed m be a conaart by Leader, fmpliod or otbenriae, to Ste granting of say moregagc,lien or arartrrhraaee on the Collateral: err (9) Such a change is the eoaditim or aBltirs (trmaoial or otherwise) of the Hoaowa a Dray Co-obliges, or deeliae u ffio valve of the CoIhttmal as, is dte spirits of dre Leader, maecrialbr repairs des Lender's eoeiaity err ineeerases its risk a if dre Leader in good faith dooms itself iaseeure. ~OWSf:S UPON ABFAULT: Upon rho ocomtmoe of say Dcftttlt or at say time therraRee, Leader msy. at its option, without notice or deauad, do say sae a more of dre follwviag, is addition to atry ofhar:fg}rt os remedy that Leader may have at law Dr ur equity or gives tq Lesukt trader say of the [.ono DoDrmrenis, all of which rte hes+eby atahorizod by Borrower; (1) Deelate the Obligations immediately doe and payablC under say agreemmt~ advurcWtg ~Y or credit to or for nc~ betteSt of the Botrotvar (3) Setoff against argr sad all deposits, scoouats, certificate of deposit babmees, chiiats. err other sums at aqy time credited by or due t5nm fbe LDadrs to tha Borrower and against ail other property of Borrows in the poeseseioa of Leader err under its coattol; (4) ~~ Immediately ~r >~' Collstrral; the kroner of (i) ~ :<oo~ ~ ~ Yrate identified below,~plue the Msrgm shown above, plus ~ ual to Pcsa-t (4'~fi); sad (iI) the M+udralna tiara set forth u the bogiaaiog of this Note. COLLECTION EJ~iSES: the Baemwa agrees m pay all actual costa of anllection sad saempted collodion, inoltrdmg, without limNation: (1) those expeaaas incurred or paid to pmboet, ~E1'P0~ °D~ l~+ ~. ~Psa. ~oYe. advertise, locatr, take possesdon of, ligrsidats a olbetwise deal with any Collateral for this Note, (2) expenses ofdesliag with ally, parson or etrary io my Dastloruptey diab~amm~ ~aad o~otRs, all ~ :area sad with IRae1a for the I,mder's attorney sad puakgst discteeion may elect to pry (as arleh sera ms W tech euvioes ere tbo Leader is its sok per5ora+alee of snob saviors) ilgludiag Wes ~ftnm time m limo doting dre eoutx of the the Doses odspp[aisete, ee~eas, invegmant b attorneys who eras employee; of the Lender, and (4) tray be reeaiued by the Leeds is eouaeotioe wl~such oollecuoo etrotite~8o~~ ~ sddod to the urgxid bahmae of the loan. RPR 23 '07 14=47 FR SPECiRL RESETS 412 867 2463 TO 917178466676 P.68i15 Page 6 WAIVNft O)f RIGSrS: The Eotzowet waives the rids of dcmntd, pmtcst, notice of aooeptanos oaf this Nat. incise of dellutt a disboasr. pr aeatateat notice of loans made, credit aueaded, collateral received or delivered a otter action tslan by the Leader bartender and all other datruwds sad notices of any desotiplioo. b!<ULTI~i.>d DO>itROWE$S: >n the event that the word "Bonowet" refers m more tbtn tae person or entity. all tepsraeat7,tions and obligatipas ttttder tlris Note tMD be joint and acvetal. IaCI~R'S RIGSTS: The Lender shall not be deemed to have waived nay of its rights uada this Note or ot>teewise sinless snch ariver is in writing and signed by the L~cnda. Lender's taiua+e.to regtore strict pesfoemmoe of the terms, eovtmtmta and agtnemmts of this Note or nay othar of the I.ostr Doatmmts, or aqy delay or omission on the past of the Latch in exarrisiag nay right, or nay a°°ep'mm°e ~psit3ial or adeginte Payer err Pttf shall not aai've. stEect or dia~iaush Latch tight or Borro+stx's dub- of oomplisaoe sad pesksmanoe tharrwidt. A salver on nay ate oewsion shall notbe eaststruod s, a bar fn or waiver of the acme or nay other right oa the same a• atpr foam oooaticn. All ggbts and remedies of die Lender tinder this Note or say other of the Loan Dootaneatt; shall be ctmmthtive sad tiny be exercised singularly or eooata+eatly. This Note m+y he mtD~t~. ceded or renewed by the Lender wlthont zeloaigg the Bortowar a arty Co-Obtigor. ~~OVICR1t1IISG LAif ; BSVEBAB~II.1~Y: • This Noce shall be oonstr:ud in all rcapectt in sccardaoos wrid>, send govtxned by the iatsmal lays otter Sine set forth in Lcader'a addKS; above (the "Stsse'~. Wherever possi~k, each provision of this Note shall be mtapreted to such stenos a: tp Tx eitative sad valid unda.applicabk law, bnt if say provisiats of this Note sha0 be prohibited by or invalid undo appliabk law, such provision sha0 tx ineBective to the exttatt of web penht'bt'tioa or iavalidigr, without invatidadng the:emaiada of such provision or the nauiang provisions ofthis Notes This Noce has bees delivered to Lender and soetpted by Leader in the State. U there is a lavnoit imohriag this Note, Botsowe: hereby irr+evoabi<y submits m the jurisdiction of the courts of the State (sod the federal oota4s located in the Stare). MOOT~CATION: This Note may not be altered or aateaded except by an apTeanent is writing sigtrod by boar Ltador sod Borrows. AFPI.iCA?ION OF PAYlldh'NtT: Bactower irrevocably waives the tight to direct the application of nay and all parymems at ray time er timer hereaRetreoeivnd by Lender from Barowtx, a frata atEr other canoe, snd Borrower does hereby irrevocably agree ebtt Leader shall have ~ OO~~g ~~ve ~ ~ aPPu'tod r'aPPIY asy and aU psymeab received ai nay time or times heseatter against the Obligations io aneh mantra ss bender ntay deem advisable. A5S[Gdttlle~NP; SUCC>E.SSORS AND AS9GN~ Barrows shall not be entitled to assign atJSr o£ its rights or obligations under this Noce wisha~ut Leader's prior wrimerr consent. Lender shall be eatitiad to assign soma or all of its tights uodtx this Nape without notice to a consent of Hotro.rer. This Noes shall be t>iadiog upon sad lours m the besreEt of Botrawey Leads sod their eve suocasorlf, aasips, ttusbea. teccivera, adnurtistrataa, P~~ reptaa-tativea, legatees and VOLUNTARII.Y WANE ANY AND A~~GHIB, WHETHER ARiSDI UNDL STATES OA ANY STATB CONSTif ITIION, ANY RULES OF CKV]I. PROC.8DUR8. COMMON LAW OR OTHFRWISB, TO DEMAND A TWAL BY JURY 1N ANY ACTION, LAWSVrI', FAtOCEBDIIJG, OOUNI'BRCJ.AII~ OrR ANY OTSBR LITIGATION PROCJtAtIRE BASED UPON, OR AR1SII1(i OUT OF, TI~IIS NOTE OR Tl~ LOAN DOCUIdENTg, ANY Ai0R13EN1>3FTT'S ARTSQJG UNA>lIt Ol; R>rI.A'!'IIdG TO T1111S NOTE, ANX COLLAT1rRAL SECURING TFIE OBLIGATIONS.ORTi~ DEALIIVGS OR RELAIIONSI~S BBTyVPBN OR AMONG LIIVDI9R AND BORROWER, OIt ANY OF TTTBt-L. 1VBITlIER LffiiD13R NOR BORRO II1Q.UDIIdG ANX ASSlO1VBE OR SUOL~'SSOR OF I.TINDTTR OR BORROWER, SHALL SE81~ A ]URY TRIAL 1N ANY SUQi ACTION. NIITt~R LENDER NOR BORROOWER SHALL STsEK TO OON90tGIDATE ANY SUCH ACTION W1TH ANY OTBFR ACTION WFTSN A JURY TRIAL CANNOT SB OR HAS NOT BEIId WAIVED. lI~3E PROViSiON5 SHALL BE SUS1Fd,7' SO NO 137CC8>'TIONS, N>rI1THRt IL'AIDSA NOR BORROWER AAS 1N ANY WAY AGREID WIIH OR R$FRESENi~ TU Yffi OTHBR'TTiAT T1iiE PROVISIONS OF TfIIS PARAGRAPH W1I.L NOT BE FULLY 11VFORCED 1N ALL 1NS?ANDS. BORROWER 81G'R6SSI,Y ASS THAT THE II~REREST RATES SPECIF¢D IN ?FITS NOTE SHAId. BB TiTh APPLTCABLfi II1IERfiST RATES DUE (A) ON AMOUNTS OUTSTAI~WO DUR1TQCi T13fi TTs'RDd OF TINS NOTE, SUBJT3CT TO THB l~iA7tadL1M RATE FRESCRTBI~ ABOVE, AND {~) WnH RESPECT' TO ANY AMOUNT OUTSTANDING ON AND ASR TI$ MATiAtITY DATE OF'T'iDS NOTE. RPR 23 '07 14 47 FR SPECIRL ASSETS 412 867 2463 TO 917178466676 P.09i15 ~7 'WAI'frEA: Tf the "Sfcte" (ss da~5nsd above) is Comocficnt, me followne6 applica: BORROWER AClWOWLSDGBS THAT tH8 TRANSACTION OF w7HGZi THIS NO'C'8IS A PART IS A COA~RGIAI. TRANSACIIONAND TO T~ E7(1EPTI' ALIAwBD Y7DIDER C)OIQATECIICUT GBN&RAL STATUTES 5&CYIONS 52~278c TO 52,278n. >rTCLUSNe, OR BY O'IHI;R APPLICABLE LAw., BoRROa-~ WATi+BS ANY RIOHIS THAT BoStROwffit gAS TO NO?IC& AND liBARING wrlx RESPECT TO nP--Y pl~,I~p~,~pY y~q; LENDER, OR ITS SUCCESSORS OR ASSIGNS. MAY DBSIItE TO USE: AND E+ORROWER FURTHER WANES ANY 1~QU13t~1T TEU-T LENDER POST A BOND OR OTl~R SECURITY IN OdNNECIlON wmI SC7CH PREJi]DOMENT RY.MEDY. MAINE: If the cddnss fa the Borrower is Maim, the followiata ao8oc applies: . Under Msinw lsw, no promise, oaattaet a awe m kad awaey, eettatd eredi; farbe*r 8ooa colleedaa of a debt a mclao atgr other aooommodctiott for the ta~cyment otc debt for mere than 5250,000 lacy be eafotoed in oast agcatst Linder, tmless the ptoimsc, oaatraot a ngreenteat is i~ ~t16 ~ '1d~• ~Y- BoROamr anmot saforce say eecl promise to cxtald asdit nnh:sa it is eeouiaed in s wtima doaumeot signed by Leads, na can any elm+ge. taabesranoe, a other aeootomoduion relaring to any extension of credit by Lender to $otrovNer be ~a~, vsden it 4 in wtinm. a~~t_Lmder. lopadoa: CONFTiSSION OF dUDGD~M': Ii the eollaoetal sddtssa is P~Y~a, ~ toDovvinB appliaa: Grsatq osp eats apoa and tacos poneasioa d tie Preo4es wNi or wkboart toga! aotln, sad by loreo itwopcvy, coIIers t6steltoac a0 rssbab (wtdclt term aWl abs htdado sass payable br ass asst ooeapatloa) and, atler dodaeHsE all eosfa of Itsaas agile a~sricb ordsrailpakriel ereas Grantos, v Grasttee'c sob dlsvotloDn,~may deer: the payaeeat of aq nos doe a~der ary prbr Uw, tasss, waxer sad acwar ronta, e~'8oa sad clsisa. biwrarco preadaa~s sad all other carplas dtarSes, and to rho matatmsmce, repair or restoration of the Premises, or oa acosoet oltie. LiablUtiec; to sad br that pospese Grantor hereby asslasa N Graatoe all reatale dso and to bsosme doe aader atry lease or leases or tttgttts to ase and ooeapatloa of tro lrmdsss laeradfer crazed, as serail at ai! right sad rtsnedin provtdod b nci lasers of lassos or s# law or 5 tgolfr for tb allectlon of the reatata FOR Tt~ !U)RPOSIC OF OBTAIIVIIdG POSSESSION OF T)$ >r'R1LbIISF,B FOLLOWII~iG ANY DEFAULT HEREUNDER O>i` UNDER ANY OF T~ LIA~,TIZES, GRANTOR IItRT~VOCASI~ AUTHORIZES AND B.I~Ow><itS ANY ATTORNEY OF RLrCORD, OR T>~ lROTHONOTARY, CLESK OR SIMII.AR OFFICER, OF ANY COURT IIY THE COMMONwICAL,TJS OF lEP,pib'YIILVAMA OA ELSER~, AS ATTORNEY FOR GRANTOR, A$ ~VR1,L A9 FOR THb !l6RSONS Ci.Am@iG UNDER, BY, OR'I'SAOUGH GRANTO$ TO SLGN AN AG$tFit~N! FOR ENTERII~iG THtIRIE~i AN AlPItOlRIATE ACTION iN ~ FORlOSSFBSEON OF THB PREMlBES (R~iTHOUT ?>~ NECESSITY OF FIIaTG ANY HOND AND VVI7'HOUT ANY STAY O>r prT OR APlEAL) AGAINST GRANTOR AND ALL PFil.90N3 CLAIIYIDdG UNDER,137C, Olt TB-'ROUGH GRANTOR. AND TH1SR>fIIY CONFls3S JUDGMIDNI' FOR THTi. RECOVERY SY GRANTEE OF POSSES~ON OF Tll~ pA>~ FOR wffiCH THE IIVSTRZArdP'NT (OR A COPY THTREOF VERINIED BY AF1:'IDAVI1~ SHALL Bg A SDFFYCINN'p WAR1tANT; VVHEREUlON A WRIT OFlOS9ESSiON OF THT MORTGAGED YREMIS>CS MAY BE ISSiJED FOATHVVTI'H, WI'IBpUT ANY lAIOR WIl1T OR lROCELDING'Vt~HAT30EVt3'3t, GRA1~lTOR *- ~~a~""G AND AGRBF.>ZVG TO R)rLZASiC GRANTEE AND ANY SUCH ATTORNEY FROM ALL lROCEDURAL IRRORS AND DEFECTS WHATSOEVF3t IN ENTB1fa1G SUCH ACTION OR SIJDG~NT OR IIV CAUSING SUCH WRIT OR lROCESS TO BE ISSUED OR IIV ANY PROCEEDING TBEREO~1 Olt CONC6RNIIV'G THE F~!'IDAVIT MADE O~NT GRAN7IB"S DEHAI.F SETTING FORTH THpI FACTS 1VgCgggAgY TO AUTSORIT.E TBi>E ENTRY OF SUCH JUDC.71t~NT ACCORDIIQG TO THE TERMS OF THIS INSY'RUtd1:NT, OF {yHICg FACTt3 SUCK AFFIDAVIT SHAI,L>9~1- lRl1YIA FAClE ~ IT ~ SL'RlldY SLY AGREED TEAT?lr FOR ANY REASON AFTER ANY SUCH ACTION HAS BEF,NI COMW~TCID, THB SAME SHALL EE DLSCONTIIQUED, M~ SA'I7SF~D OF RILCORD, OR 7'ZR~IATED, OR 106S6S,SION OF THE MORGAGED PRISES R>PAdAIIY IN O,S>lE lntST'ORED TO GRANTOR OR ANYONb CI.AII-~iG UAIDER, SY, OR THROUGH GRANTOR, GRANTISE MAY, R AND As oFTari As Gw-Nr~ ~ HAVIe TEiE RIGHT TO Tat~lOSSZSS1toN wGAIN of FORTH TO R>oCOVSRlOSSE OSSZ N OF THE PREIYIISSS AYTIHO~AND TOWER A80VE GTi~IrN'TO ~COg~T?ORNEY SHAY.i. E7LTEND TO ALL SUCH >FIURTHER ACTIONS IIV EJECTMENT AND C01~1FF.SSION OF JUDGMENT O1e,•T M0)~TGAGRVit lAOVID1i:Dr BEFORE OR AFTx:R AN ACTION REQ.OSURB IS BitOUGHT OR OTHER PROt~ZDIIdGS IIv 1~EVIDF.N~ H~ VlON THIS MO>'TTGAGiC OR UION ANY II~TSTIiIINIE1V'I' ' AND AFTER A lUDICIAI~ THEREON OR RPR 23 '07 14 48 FR 5PECIRL RSSETS 412 867 2463 TO 917178466676 P.10i15 HORitiOWER 'I1~TSY D LIISB ay; -rte Name: ?%AM Title: BOR~tOWIs[t Witt+ess Name: Title: