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HomeMy WebLinkAbout07-2868COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION COMMUNITYBANKS, : DOCKET NO. O - a P 6 Q' ex;,?d '-J-e„r... Plaintiff V. : MORTGAGE FORECLOSURE LORRIE PETERS AND E. MICHAEL PETERS, ; Defendants PREVIOUSLY ASSIGNED TO: N/A NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. 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. AVISO USTED HA SIDO DEMANDADO/A EN CORTE. Si usted desea defenderse de las demandas que se presentan mas adelante en las siguientes paginas, debe tomar acci6n dentro de los pr6ximos veinte (20) dias despues de la notificaci6n de esta Demanda y Aviso radicando personalmente o por medio de un abogado una comparecencia escrita y radicando en la Corte por escrito sus defensas de, y objecciones a, las demandas presentadas aqui en contra suya. Se le advierte de que si usted falla de tomar acci6n como se describe anteriormente, el caso puede proceder sin usted y un fallo por cualquier suma de dinero reclamada en la demanda o cualquier otm reclamaci6n o remedio solicitado por el demandante puede ser dictado en contra suya por la Corte sin mas aviso adicional. Usted puede perder dinero o propiedad o otros derechos importantes para usted. USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABOGADO INMEDIATAMENTE. SI USTED NO TIENE UN ABOGADO, LLAME O VAYA A LA SIGUIENTE OFICINA. ESTA OFICINA PUEDE PROVEERLE INFORMACION A CERCA DE COMO CONSEGUIR UN ABOGADO. SI USTED NO PUEDE PAGAR POR LOS SERVICIOS DE UN ABOGADO, ES POSIBLE QUE ESTA OFICINA LE PUEDA PROVEER INFORMACION SOBRE AGENCIAS QUE OFREZCAN SERVICIOS LEGALES SIN CARGO O BAJO COSTO A PERSONAS QUE CUALIFICAN. Cumberland County Bar Association 32 S. Bedford Street, Carlisle, PA 17013, 717-249-3166 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION COMMUNITYBANKS, DOCKET NO. O '1- a 8 G ?' 1 (?, Plaintiff V. : MORTGAGE FORECLOSURE LORRIE PETERS AND E. MICHAEL : PETERS, Defendants PREVIOUSLY ASSIGNED TO: N/A COMPLAINT The Plaintiff, CommunityBanks, by its attorneys, McNees Wallace & Nurick LLC, files this Complaint pursuant to Pa. R. Civ. P., Rule 1141 et seq., alleging in support hereof the following: 1. The Plaintiff, CommunityBanks, is a financial institution organized and existing under the laws of the Commonwealth of Pennsylvania, with a principal regional office located at P.O. Box 233, 55 Wetzel Drive, Hanover, Pennsylvania 17331. 2. The Defendants, Lorrie Peters and E. Michael Peters, are adult individuals whose last known address is 30 Emlyn Lane, Mechanicsburg, Pennsylvania 17055. 3. The Defendants executed and delivered to the Plaintiff two Guaranties: An Unlimited Continuing Guaranty dated February 10, 2005 ("$20,000 Guaranty"), in connection with the loan in the original principal amount of $20,000 to Agapao Flowers & Gifts, Inc. (the "Debtor") and an Unlimited Continuing Guaranty dated February 10, 2005 ("$50,000 Guaranty"), in connection with the loan in the original principal amount of $50,000 to the Debtor, pursuant to which the Defendants guaranteed the prompt payment of all amounts due to Bank by the Debtor. The $20,000 Guaranty and the $50,000 Guaranty are referred to together as the "Guaranty", and are attached hereto, made a part hereof and marked Exhibit "A". 4. The Debtor executed and delivered to the Plaintiff two Notes: A Commercial Fixed Rate Promissory Note dated February 10, 2005, in the original principal amount of $20,000 ("$20,000 Note"), and a Commercial Variable Rate Revolving or Draw Note dated February 10, 2005, in the original principal amount of $50,000 ("50,000 Note"). The $20,000 Note and $50,000 Note are referred to together as the "Note", and are attached hereto, made a part hereof and marked Exhibit "B". 5. As security for the Note, the Defendants executed and delivered to the Plaintiff a mortgage in the aggregate original principal amount of $70,000 ("Mortgage") on that tract of land together with the buildings and improvements erected thereon located in Upper Allen Township, Cumberland County, Pennsylvania, known as 30 Emlyn Lane, Mechanicsburg, Pennsylvania 17055 ("Property"). At all times relevant hereto, the Defendants were and remain the record and sole owners of the Property. A description of the Property is attached hereto, made a part hereof and marked Exhibit "C". 6. On February 28, 2005, the Mortgage was recorded in the Office of the Recorder of Deeds of Cumberland County in Record Book 1898, Page 1264. A copy of the Mortgage is attached hereto, made a part hereof and marked Exhibit "D". 7. The Mortgage was never assigned by the Plaintiff and is still held by it as a valid and subsisting obligation of the Defendants. 8. The Debtor is in default of the Debtor's obligations to make payment to the Plaintiff as required in the Note, and the Defendants are in default of their obligations to make payment to the Plaintiff as required in the Guaranty. 9. As a result of the Debtor's and Defendants' defaults, the Debtor and the Defendants are presently indebted to the Plaintiff, as of May 8, 2007, in the amount of $89,571.18 itemized as follows: $20,000 Note a. Principal $16,153.73 b. Interest as of May 8, 2007 $ 1,333.70 C. Late Charges $ 650.00 d. Satisfaction Fee(s) $ 40.00 e. Attorneys' Fees ,$ 4,440-32 22,617.80 $50,000 Note a. Principal $49,780.73 b. Interest as of May 8, 2007 $ 5,651.41 C. Late Charges $ 650.00 d. Attorneys' Fees ?10,971-24 66,953.38 TOTAL $89,571.18 10. The Defendants also agreed under the terms of the Mortgage that in the event of default thereunder they would pay, in addition to the charges listed in paragraph 9 above, costs incurred by the Plaintiff as a result of the institution of these legal proceedings. 11. The obligation owed by the Defendants to the Plaintiff continues to accrue interest thereon at the rate of $13.48228 per day on the $50,000 Note, and at the rate of $3.14100 on the $20,000 Note, through the date of payment, including on and after the entry of judgment on this Complaint, and continues to accrue late charges, attorneys' fees and other charges provided in the Note and/or Mortgage. 12. The Plaintiff is not seeking foreclosure on the basis of a "residential mortgage" obligation, as that term is defined in Act No. 6 of 1974, 41 P. S. §101 et seq., and the Plaintiff is therefore not required to give the notice required by Section 403(a) of said Act. 13. In accordance with the Homeowner's Emergency Mortgage Assistance Act, Act of December 23, 1983, P.L. 385, No. 91, 35 P.S. Section 1680.401c et seq., a notice of intent to foreclose and of Defendants' rights under said Act was forwarded to the Defendants on June 6, 2006, by United States mail, first class, postage prepaid, and certified mail, return receipt requested. A copy of said Notice is attached hereto and marked as Exhibit "E". 14. Copies of the mailing receipts, postal forms 3800, evidencing mailing of said Notice is attached hereto and marked as Exhibit' F". 15. The certified mail to Defendants were returned to the offices of CommunityBanks. A copy of the returned envelopes are attached hereto and marked Exhibit «G„ 16. The Plaintiff has made demand upon the Defendants herein to cure the default under the aforesaid Mortgage and Note. However, the Defendants have refused and failed and continue to refuse and fail to cure the default. WHEREFORE, Plaintiff, CommunityBanks, demands judgment against Lorrie Peters and E. Michael Peters, Defendants, in the amount of $89,571.18, plus interest at the rate of $13.48228 per day on the $50,000 Note, and at the rate of $3.14100 on the $20,000 Note, and in the amount of all additional late charges, attorneys' fees and other charges provided in the Note and/or Mortgage, through the date of payment, including on and after the date of entry of judgment on this Complaint, and costs, and for foreclosure and sale of the Property. Respectfully submitted, McNees Wallace & Nurick LLC Date: May 2007 By: -Geo h , Esquire rCov ID #24848 100 Pine S eet, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION COMMUNITYBANKS, Plaintiff V. LORRIE PETERS AND E. MICHAEL PETERS, Defendants : DOCKET NO. MORTGAGE FORECLOSURE PREVIOUSLY ASSIGNED TO: N/A VERIFICATION I, Georgia Bear, hereby verify that the statements made in the foregoing Complaint are true and correct to the best of my information, knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C. S. Section 4904, relating to unworn falsification to authorities. Date: A/ t ?Pd 7 CO ANKS By: Georgia Bear Vice President, Collections Manager pp i ?r 11 I:?'r, -psi -1 v? C7 ? ? ? ??? + ? ? erg r. I iL CommunityBanks UNLIMITED CONTINUING GUARANTY t:"m? 15 North 3rd Street Harrisbo PA 17101 (717) 213-2350 "LENDER" 1. CONSIDERATION. This Guaranty is being executed to induce Lender, Indicated above, to enter Into one or more loans or other financial accommodations with or on behalf of Borrower. 2. GUARANTY. Guarantor hereby unconditionally guarantees the prompt and full payment and performance, and promises to pay all of Borrower's present and future, joint and/or several, direct and indirect, absolute and contingent, express and implied, Indebtedness, liabilities, obligations and covenants (cumulatively "Indebtedness") to Lender when due (whether upon maturity or by demand, acceleration or otherwise). Guarantor's liabilities and obligations under this Guaranty ('Obligations') shall be unlimited and shall Include all present and future written agreements between Borrower and Lender (whether executed for the same or different purposee than the foregoing), evidencing the Indebtedness, together with all Interest and all of Lender's expenses and costs, including but not limited to reasonable attorney's fees incurred in connection with the Indebtedness Including any amendments, extensions, modifications, renewals, replacements or substitutions thereto, including, but not limited to, the following Indebtedness: 3. SECURITY INTEREST. ® If checked, the Obligations under this Guaranty are secured by the collateral described In any security instrument(s) executed in connection with this Guaranty and any collateral described in any other security instrument(s) securing this Guaranty or all of Guarantor's obligations. 4. ABSOLUTE AND CONTINUING NATURE OF GUARANTY. Guarantors Obligations are absolute and continuing and shall not be affected or impaired if Lender repeatedly and unconditionally amends, renews, extends, compromises, exchanges, fails to exercise or perfect rights In, Impairs or releases any collateral or any of the Indebtedness owed by any Borrower, Co-guarantor or third party (even if such impairs Guarantors rights of subrogation) to Lender or any of Lenders rights against any Borrower, Co-guarantor, third party, or collateral. In addition, the Obligations shall not be affected or impaired by the discharge (including but not limited to any Inability to collect a deficiency judgment against) death, incompetency, termination, dissolution, insolvency, business cessation, or other financial deterioration of any Borrower, Guarantor, or third party or by any state of facts or the happening from time to time of any event, Including without limitation: The invalidity, irregularity, Illegality or unenforceabflity of, or any defect in, the promissory note or any agreement or any collateral security for the Obligation (the 'Collateral'); Any present or future law or order of any government de lure or de facto or of any agency thereof purporting to reduce, amend or otherwise affect the Indebtedness of the Borrower or any other obligor or any other terms of payment; The waiver, compromise, settlement, release or termination of any or all of the obligations, covenants or agreements of the Borrower under the promissory note or any agreement or of any party named as a Guarantor under this Guaranty; The failure to give notice to the Guarantor of the occurrence of an event of default under the promissory note or any other agreement; The loss, release, sale, exchange, surrender or other change in any Collateral; The repeated extension of the time for payment of any principal of or Interest on the Indebtedness or of the time for performance of any obligations, covenants or agreements under or arising out of the promissory note or any agreement or the repeated extension or the renewal of any thereof; The modification or amendment (whether material or otherwise) of any obligation, covenant or agreement set forth in the promissory note or any agreement; The taking of, or the omission to take, any of the actions referred to in the promissory note or any agreement; Any failure, omission or delay on the part of the Lender to enforce, assert or exercise any right, power or remedy conferred on the Lender in the promissory note or any agreement; The voluntary or involuntary liquidation, dissolution, sale or other disposition of all or substantially all the assets, marshalling of assets and liabilities, receivership, Insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition with creditors or readjustment of, or other similar proceedings affecting the Guarantor or the Borrower or any of their assets, or any allegation or contest of the validity of the promissory note or any agreement; The default or failure of the Guarantor to fully perform any Obligations set forth In this Guaranty; Any event or action that would, in the absence of this paragraph, result In the release or discharge of the Guarantor from the performance or observance of any Obligation, covenant or agreement contained In this Guaranty; and, Any other circumstances which might otherwise constitute a legal or equitable discharge or defense of a surety or a guarantor. 5. DIRECT AND UNCONDITIONAL NATURE OF GUARANTY. Guarantors Obligations are direct and unconditional and may be enforced without requiring Lender to exercise, enforce, or exhaust any right or remedy against any Borrower, Co-guarantor, third party, or any security or Collateral. 6. WAIVER. Guarantor hereby waives notice of the acceptance of this Guaranty; notice of present and future extensions of credit and other financial accommodations by Lender to any Borrower; notice of the obtaining or release of any guaranty, assignment, or other security for any of the indebtedness; notice of presentment for payment, demand, protest, dishonor, default, and nonpayment pertaining to the Indebtedness and this Guaranty and all other notices and demands pertaining to the Indebtedness and this Guaranty; and, any and all defenses to payment as permitted by law. 7. NATURE OF GUARANTY. This Guaranty is a guaranty of payment and not of collection, and the Guarantor hereby waives the right to require that any action be brought first against the Borrower or any other Guarantor, or any security or the Collateral, or to require that resort be made to any security or the Collateral or to any balance of any deposit account or credit on the books of the Lender in favor of the Borrower or of any Guarantor. a. EVENTS OF DEFAULT. An Event of Default shall occur under this Guaranty in the event that any Guarantor: (a) fails to pay any amount under this Guaranty or any Obligation to Lender when due (whether such amount is due at maturity by acceleration or otherwise); (b) fails to perform any obligation or breaches any warranty or covenant to Lender contained in any loan document or this Guaranty or any other present or future promissory note or written agreement; c provides or causes any false or m isleading nature re presentation to be ed to Le providnder; ?d3 sells, conveys, or transfers rights in an Co' M' securing this Guaranty without the written approval of Lender, destroys, loses or damages such or confiscation; Collateral in any material respect, or sub?ects auch Collateral WW zure or (e) has a garnishment, judgment, tax levy, attachment or lien entered or served against any Guarantor, or any of their properly; (f) dies, becomes legally incompetent, is dissolved or terminated, ceases to operate its business, becomes insolvent, makes an assignment for the benefit of creditors, or becomes the subject of any bankruptcy, insolvency or debtor rehabilitation proceeding; fails to provide Lender evidence of satisfactory financial condition; or causes Lender to deem Itself Insecure due to a significant decline In the value of any collateral securing this Guaranty, or Lender in good faith, believes the prospect of payment or performance Is Impaired. 9. RIGHTS OF LENDER ON EVENT OF DEFAULT. If More is an Event of Default under this Guaranty, Lender shall be entitled to exercise one or more of the following remedies without notice or demand (except as required by law): (a) to declare Guarantors Obligations under this Guaranty Immediately due and payable In full, such acceleration shall be automatic and immediate if the Event of Default Is a filing under the Bankruptcy Code; b to collect the outstanding obligations under this Guaranty with or without resorting to judicial process; c to take possession of an Collateral in any manner permitted by law; d to require Guarantor to deliver and make available to Lender any Collateral at a place reasonably convenient to Guarantor and Lender; e to sell, lease or otherwise dispose of any Collateral and collect any deficiency balance with or without resorting to judicial process; f) to set-off Guarantors Obligations under this Guaranty against any amounts due to Guarantor including, but not limited to, monies, instruments, and deposit accounts maintained with Lander, and LPPA209 0 John H. HwWW Co. (411400) (800) 837-3799 tC X b ?? - r'` ") (g) to exercise all other rights available to Lender • any other written agreerrrent or applicable law. Lender's rights are cumulative and may be exercises. together, or separately, and in any order. Lender's ..medies under this paragraph are in addition to those available at common law, Including, but not limited to the right to set-off. 10. SUBORDINATION. The payment of any present or future Indebtedness of Borrower to Guarantor will be postponed and subordinated to the payment in full of any present or future Indebtedness of Borrower to Lender during the term of this Guaranty. In the event that Guarantor receives any monies, instruments, or other remittances to be applied against Borrower's obligations to Guarantor, Guarantor will hold these funds In trust for Lender and Immediately endorse or assign (if necessary) and deliver these monies, instruments and other remittances to Lender. Guarantor agrees that Lender shall be preferred to Guarantor in any assignment for the benefit of Borrower's creditors in any bankruptcy, insolvency, liquidation, or reorganization proceeding commenced by or against Borrower in any federal or state court. 11. INDEPENDENT INVESTIGATION. Guarantor's execution and delivery to Lender of this Guaranty Is based solely upon Guarantor's independent investigation of Borrowers financial condition and not upon any written or oral representation of Lender in any manner. Guarantor assumes full responsibility for obtaining any additional information regarding Borrowers financial condition and Lender shall not be required to fumish Guarantor with any information of any kind regarding Borrowers financial condition. 12. ACCEPTANCE OF RISKS. Guarantor acknowledges the absolute and continuing nature of this Guaranty and voluntarily accepts the full range of risks associated herewith including, but not limited to, the risk that Borrowers financial condition shall deteriorate or, if this Guaranty is unlimited, the risk that Borrower shall incur additional Indebtedness to Lender in the future. 13. SUBROGATION. Guarantor hereby irrevocably waives and releases the Borrower from all 'claims' (as defined in Section 101(5) of the Bankruptcy Code) to which Guarantor is or would, at any time, be entitled by virtue of its obligations under this Guaranty, including, without limitation, any right of subrogation (whether contractual, under Section 509 of the Bankruptcy Code or otherwise), reimbursement, contribution, exoneration or similar right against the Borrower, any co-guarantor, any third party or any Collateral. 14. APPLICATION OF PAYMENTS. Lender will be entitled to apply any payments or other monies received from Borrower, any third party, or any collateral against Borrowers present and future Indebtedness to Lender in any order. 15. TERMINATION. This Guaranty shall remain In full force and effect until Lender executes and delivers to Guarantor a written release thereof. Notwithstanding the foregoing, Guarantor shall be entitled to terminate any unlimited guaranty of Borrowers future Indebtedness to Lender follows any anniversary of this Guaranty by providing Lender with sixty (60) or more days' written notice of such termination by hand-delivery or certified mail. Notice shall be deemed given when received by Lender. Such notice of termination shall not affect or impair any of the agreements and Obligations of the Guarantor under this Guaranty with respect to any Indebtedness existing prior to the time of actual receipt of such notice by Lender, any extensions, modifications, amendments, replacements or renewals thereof, and any interest on any of the foregoing. 16. ASSIGNMENT. Guarantor agrees not to assign any of Guarantors rights or Obligations described in this Guaranty without Lenders prior written consent which consent may be withheld by Lender In its sole discretion. Guarantor agrees that Lender Is entitled to assign some or all of Its rights and remedies described in this Guaranty without notice to or the prior consent of Guarantor In any manner. Unless the Lender shall otherwise consent in writing, the Lender shall have an unimpaired right, prior and superior to that of any assignee, to enforce this Guaranty for the benefit of the Lender, as to those Obligations that the Lender has not assigned. 17. MODIFICATION AND WAIVER. The modification or waiver of any of Guarantors Obligations or Lenders rights under this Guaranty must be contained in a writing signed by Lender. Lender may dally in exercising or failing to exercise any of its rights without causing a waiver of those rights. A waiver on one occasion shall not constitute a waiver on any other occasion. 18. SUCCESSORS AND ASSIGNS. This Guaranty shall be binding upon and inure to the benefit of Guarantor and Lender and their respective successors, assigns, trustees, receivers, administrators, persona representatives, legatees, and devisees. 19. NOTICE. Any notice or other communication to be provided under this Guaranty shall be In writing and sent to the parties at the addresses described in this Guaranty or such other addresses as the partles may designate in writing from time to time. 20. SEVERABILITY. If any provision of this Guaranty is invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or Impaired thereby. 21. APPLICABLE LAW. This Guaranty shall be governed by the laws of the state of Pennsylvania Unless applicable law provides otherwise, Guarantor consents to the jurisdiction and venue of any court located in such state selected by Lender, in its discretion, in the event of any legal proceeding under this Guaranty. 22. COLLECTION COSTS. To the extent permitted by law, Guarantor agrees to pay Lenders reasonable fees and costs, Including, but not limited to, an attorney's commission of 5% of the total amount then due, fees and costs of attorneys and other agents (including without limitation paralegals, clerks and consultants) whether or not any attorney or agent is an employee of Lender, which are Incurred by Lender in collecting any amount due or enforcing any right or remedy under this Guaranty, Including, but not limited to, all fees and costs incurred on appeal, in bankruptcy, for post judgment collection actions, and whether or not suit Is brought 23. REPRESENTATIONS OF GUARANTOR. Guarantor acknowledges receipt of reasonably equivalent value in consideration for the execution of this Guaranty and represents that, after giving effect to this Guaranty, the fair market value of Guarantors assets exceeds Guarantors total liabilities, including contingent, subordinate and unliquklated liabilities, that Guarantor has sufficient cash flow to meet debts as they mature, and that Guarantor does not have unreasonably small capital. Guarantor represents that all required director and shareholder consents to enter into this Guaranty have been obtained. 24. MISCELLANEOUS. Guarantor and Lender agree that time is of the essence. Guarantor will provide Lender with current financial statements and other financial information upon request. All references to Guarantor In this Guaranty shall include all entities or persons signing this Guaranty. If there is more than one Guarantor, their obligations under this Guaranty shall be joint and several. Nothing In this Guaranty is Intended to require, nor should it be construed to require, the signature of Borrowers spouse in violation of Regulation B (12 C.F.R. Part 202.7) in connection with this or any other Indebtedness of Borrower to Lender. This Guaranty represents the complete and Integrated understanding between Guarantor and Lender regarding the terms hereof. 25. WAIVER OF JURY TRIAL LENDER AND GUARANTOR HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY CIVIL ACTION ARISING OUT OF, OR BASED UPON, THIS GUARANTY. 26. ADDITIONAL TERMS: WARNING: READ BEFORE SIGNING - YOU ARE WAIVING IMPORTANT RIGHTS. ® IF CHECKED, AS A MATERIAL INDUCEMENT TO LENDER TO MAKE THE LOAN(S) OR OTHER FINANCIAL ACCOMMODATION(S) TO BORROWERGUARANTIEDBY THIS GUARANTY, GUARANTORIRREVOCABLYAUTHORIZES AND EMPOWERS ANY ATTORNEYOR THE PROTHONOTARYOR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AS ATTORNEY FOR GUARANTOR IN ANY ACTION BROUGHT BY LENDER AFTER AN EVENT OF DEFAULT UNDER THIS GUARANTY,AND TO CONFESS JUDGMENT AGAINSTGUARANTORFOR ALL SUMS DUE UNDER THIS GUARANTY,AND FORALL ACCRUED INTEREST ON THOSE AMOUNTS, COST OF SUIT, AND ATTORNEY FEES, TOGETHER WITH INTEREST ON ANY JUDGMENT, AT THE RATE OF INTEREST SPECIFIED IN THE LOAN DOCUMENTS AFTER DEFAULT, FROM THE ENTRY OF SUCH JUDGMENT UNTIL THE FULL AMOUNT DUE LENDER IS ACTUALLY RECEIVED. THIS GUARANTY, OR A COPY VERIFIED BY AFFIDAVIT, WILL BE A SUFFICIENT WARRANT. THE AUTHORITY GRANTED HEREIN MAY BE EXERCISED AS NEEDED FROM TIME TO TIME, AS OFTEN AS NECESSARY, UNTIL RECEIPT OF PAYMENT IN FULL OF ALL SUMS DUE LENDER. GUARANTORKNOW INGLY, INTENTIONALLY AND VOLUNTARILY, AFTER CONSULTATION WITH INDEPENDENT COUNSEL, UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS TO DUE PROCESS GUARANTOR HAS OR MAY HAVE UNDER THE CONSTITUTIONS AND LAWS OF THE UNITED STATES AND OF THE COMMONWEALTH OF PENNSYLVANIA, EXCEPT THE RIGHT TO ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO THE EXECUTION OF ANY CONFESSED JUDGMENT. GUARANTOR FURTHER UNDERSTANDS THAT UPON GUARANTOR'S DEFAULT AND CONFESSION OF JUDGMENT, THIS WAVIER ALLOWS LENDER TO IMMEDIATELY EXECUTE UPON AND SEIZE AND SELL ANY OF GUARANTOR'S PROPERTY WITHOUT PRIOR NOTICE OR OPPORTUNITY FOR HEARING, EXCEPT ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO THE EXECUTION OF THE CONFESSED JUDGME IT, IN ORDER TO SATISFY OR SECURE ALL SUMS DUE GUARANTORACKNOWLEDGES THAT GUARANTORHAS READ, UNDERSTANDS,AND AGREESTO THE TERMS AND CONDITIONS OF THIS GUARANTY INCLUDING THE TERMS AND CONDITIONS ON THE REVERSESIDE. GUARANTORHAS EXECUTEDTHIS GUARANTYWTTH THE INTENT TO BE LEGALLY BOUND NOTWITHSTANDINGANY FAILUREBY ANY OTHER PERSON TO SIGN THIS GUARANTY. GUARANTORACKNOWLEDGESRECEIPTOF AN EXACT COPY OF THIS GUARANTY. IN WITNESS WHEREOF, the undersigned has/have caused this Instrument to be executed as a sealed Instrument this 10 day of February. 2005 GUARANTOR: L rrie Peters C P,:56, (Seal) Lorrle Peters GUARANI . Michas Pet r / d,&C,?, (Seal) E. Michael- ic el Peters GUARANTOR: GUARANTOR: (Seal) (Seal) CommunityBanks Commmuty Banks 15 North 3rd Street "Is PA 17101 ('11 13-DSO "LENDER" UNLIMITED CONTINUING GUARANTY Lorrie Peters E. Michael Peters , PA 17055 Agapao Flowers & Gifts, Inc. Mechanicsburg, PA 17055 1. CONSIDERATION. This Guaranty is being executed to Induce Lender, Indicated above, to enter into one or more loans or other financial accommodations with or on behalf of Borrower. 2. GUARANTY. Guarantor hereby unconditionally guarantees the prompt and full payment and performance, and promises to pay all of Borrower's present and future, joint and/or several, direct and Indirect, absolute and contingent, express and implied, Indebtedness, liabilities, obligations and covenants (cumulatively indebtedness') to Lender when due (whether upon maturity or by demand, acceleration or otherwise). Guarantors liabilities and obligations under this Guaranty ('Obligations') shall be unlimited and shall Include all present and future written agreements between Borrower and Lender (whether executed for the some or different purposes than the foregoing), evidencing the Indebtedness, together with all interest and all of Lender's expenses and costs, including but not limited to reasonable attorney's fees Incurred In connection with the Indebtedness Including. anv_ amendments.. extensions. modifications, renewals, replacements or substitutions thereto, including, but not limited to, the following Indebtedness: ?.. ....:.....:....:::t?:;:;;::r%?:,::.:.:..:....::>:«: Vii::;;>::i::::`:: ?:;;'...:..:...:....:::::::::::;::::fi :::::;:3:::'.::•:::.::.;:.:: ?..... :..... ?.:::>;:.:.::::;•;:.>:.;>:::;:>:: VARIABLE $50,000.00 02/10/05 09114200 3. SECURITY INTEREST. ® If checked, the Obligations under this Guaranty are secured by the collateral dascrlhad in any Awr.Urity InQtnimantlQ1 AYar - -, -.-__uted in connection with this Guaranty and any collateral described in any other security instrument(s) securing this Guaranty or all of Guarantor's obligations. 4. ABSOLUTE AND CONTINUING NATURE OF GUARANTY. Guarantor's Obligations are absolute and continuing and shall not be affected or impaired if Lender repeatedly and unconditionally amends, renews, extends, compromises, exchanges, fails to exercise or perfect rights in, Impairs or releases any collateral or any of the Indebtedness owed by any Borrower, Co-guarantor or third party (even if such Impairs Guarantor's rights of subrogation) to Lander or any of Lender's rights against any Borrower, Co-guarantor, third party, or collateral. In addition, the Obligations shall not be affected or Impaired by the discharge (including but not limited to any Inability to collect a deficiency judgment against) death, incompetency, termination, dissolution, insolvency, business oeesatkm, or other financial deterioration of any Borrower, Guarantor, or third party or by any state of facts or the happening from time to time of any event, including without limitation: The Invalidity, Irregularity, illegality or unenforosability of, or any defect in, the promissory note or any agreement or any collateral security for the Obligation (the 'Collateral'); Any present or future law or order of any government de lure or de facto or of any agency thereof purporting to reduce, amend or otherwise affect the Indebtedness of the Borrower or any other obligor or any other terms of payment; The waiver, compromise, settlement, release or termination of any or all of the obligations, covenants or agreements of the Borrower under the promissory note or any agreement or of any party named as a Guarantor under this Guaranty; The failure to give notice to the Guarantor of the occurrence of an event of default under the promissory note or any other agreement; The loss, release, sale, exchange, surrender or other change in any Collateral; The repeated extension of the time for payment of any principal of or interest on the Indebtedness or of the time for performance of any obligations, covenants or agreements under or arising out of the promissory note or any agreement or the repeated extension or the renewal of any thereof, The modification or amendment (whether material or otherwise) of any obligation, covenant or agreement set forth In the promissory note or any agreement; The taking of, or the omission to take, any of the actions referred to in the promissory note or any agreement; Any failure, omission or delay on the part of the Lender to enforce, assert or exercise any right, power or remedy conferred on the Lender In the promissory note or any agreement; The voluntary or Involuntary liquidation, dissolution, sale or other disposition of all or substantially all the assets, marshalling of assets and liabilities, receivership, Insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition with creditors or readjustment of, or other similar proceedings affecting the Guarantor or the Borrower or any of their assets, or any allegation or contest of the validity of the promissory note or any agreement; The default or failure of the Guarantor to fully perform any Obligations set forth in this Guaranty; Any event or action that would, in the absence of this paragraph, result in the release or discharge of the Guarantor from the performance or observance of any Obligation, covenant or agreement contained in this Guaranty; and, Any other circumstances which might otherwise constitute a legal or equitable discharge or defense of a surety or a guarantor. 5. DIRECT AND UNCONDITIONAL NATURE OF GUARANTY. Guarantor's Obligations are direct and unconditional and may be enforced without requiring Lender to exercise, enforce, or exhaust any right or remedy against any Borrower, Co-guarantor, third party, or any security or Collateral. s. WAIVER. Guarantor hereby waives notice of the acceptance of this Guaranty; notice of present and future extensions of credit and other financial accommodations by Lender to any Borrower, notice of the obtaining or release of any guaranty, assignment, or other security for any of the Indebtedness; notice of presentment for payment, demand, protest, dishonor, default, and nonpayment pertaining to the Indebtedness and this Guaranty and all other notices and demands pertaining to the Indebtedness and this Guaranty; and, any and all defenses to payment as permitted by law. 7. NATURE OF GUARANTY. This Guaranty is a guaranty of payment and not of collection, and the Guarantor hereby waives the right to require that any action be brought first against the Borrower or any other Guarantor, or an security or the Collateral, or to require that resort be made to any security or the Collateral or to any balance of any deposit account or credit on the books of the Lender in favor of the Borrower or of any Guarantor. a. EVENTS OF DEFAULT. An Event of Default shall occur under this Guaranty in the event that any Guarantor. (a) falls to pay any amount under this Guaranty or any Obligation to !.ender when due (whether such amount is due at maturity by acceleration or otherwise); (b) fails to perform any', obligation or breaches any warranty or covenant to Lender contained in any loan document or this Guaranty or any other present or future promissory note or written agreement; c provides or causes any false or misleading signature or representation to be provided to Lender; d sells, conveys, or transfers rights in an Collateral securing this Guaranty without the written approval of Lender, destroys, loses or damages such Collateral in any material respect, or subjects such Collateral to seizure or confiscation; (e) has a garnishment, judgment, tax levy, attachment or lion entered or served against any Guarantor, or any of their property; (f) dies, becomes legally Incompetent, is dissolved or terminated, ceases to operate its business, becomes insolvent, makes an assignment for the benefit of creditors, or becomes the subject of any bankrupt ccyy insolvency or debtor rehabilitation proceeding; (g) fails to provide Lender evidence of satisfactory financial condition; or (h) causes Lender to deem itself insecure due to a significant decline in the value of any collateral securing this Guaranty, or Lender in good faith, believes the prospect of payment or performance is impaired. 9. RIGHTS OF LENDER ON EVENT OF DEFAULT. If there is an Event of Default under this Guaranty, Lander shall be entitled to exercise one or more of the following remedies without notice or demand (except as required by law): (a) to declare Guarantor's Obligations under this Guaranty immediately due and payable in full, such acceleration shall be automatic and Immediate if the Event of Default is a filing under the Bankruptcy Code; to collect e outstanding obligations under this Guaranty with or without resorting to judicial process; job to take possession of an Collateral in any manner permitted law; d to require Guarantor to deliver and make available to Lender a y Collateral at a place reasonably convenient to Guarantor and Lender, ? e) to sell, lease or otherwise dispose of any Collateral and collect any deficiency balance with or without resorting to judicial process; f) to set-off Guarantors Obligations under this Guaranty against any amounts due to Guarantor including, but not limited to, monies, instruments, and deposit accounts maintained with Lender; and LPPA209 0 John H. HwWW 00. (4H41W) (800) 907.8799 (g) td exercise all other rights avaiW Lender • any other written agreement or appllm v. -endet's rights are cumulative and mb, is exerck .., together, or separately, and in any oro,... Lender's .-medies under this paragraph are in addition to hose available at common law, including, but not limited to the right to set-off. 10. SUBORDINATION. The payment of any present or future indebtedness of Borrower to Guarantor will be postponed and subordinated to the payment in ull of any present or future Indebtedness of Borrower to Lender during the term of this Guaranty. In the event that Guarantor receives any monies, nstruments, or other remittances to be applied against Borrower's obligations to Guarantor, Guarantor will hold these funds in trust for Lender and mmediately endorse or assign (if necessary) and deliver these monies, Instruments and other remittances to Lender. Guarantor agrees that Lender shall be preferred to Guarantor in any assignment for the benefit of Borrower's creditors In any bankruptcy, insolvency, liquidation, or reorganization proceeding ?ommenosd by or against Borrower in any federal or state court. 11. INDEPENDENT INVESTIGATION. Guarantor's execution and delivery to Lender of this Guaranty is based solely upon Guarantors independent investigation of Borrower's financial condition and not upon any written or oral representation of Lender in any manner. Guarantor assumes full responsibility for obtaining any additional information regarding Borrower's financial condition and Lender shall not be required to furnish Guarantor with any information of any kind regarding Borrower's financial condition. 12. ACCEPTANCE OF RISKS. Guarantor acknowledges the absolute and continuing nature of this Guaranty and voluntarily accepts the full range of risks associated herewith including, but not limited to, the risk that Borrower's financial condition shall deteriorate or, If this Guaranty is unlimited, the risk that Borrower shall incur additional Indebtedness to Lender in the future. 13. SUBROGATION. Guarantor hereby Irrevocably waives and releases the Borrower from all 'claims' (as defined in Section 101(5) of the nk sub Code) to which Guarantor is or would, at any time, be entitled by virtue of Its obligations under this Guaranty, including, without limitation, any right subrogation (whether contractual, under Section 509 of the Bankruptcy Code or otherwise), reimbursement, contribution, exoneration or similar right against the Borrower, any co-guarantor, any third party or any Collateral. 14. APPLICATION OF PAYMENTS. Lender will be entitled to apply any payments or other monies received from Borrower, any third parry, or any collateral against Borrower's present and future Indebtedness to Lender in any order. 15. TERMINATION. This Guaranty shall remain in full force and effect until Lender executes and delivers to Guarantor a written release thereof. Notwithstanding the foregoing, Guarantor shall be entitled to terrninate any unlimited guaranty of Borrower's future Indebtedness to Lender following any anniversary of this Guaranty by providing Lender with sixty (60) or more days' written notice of such termination by hand-delivery or certified mail. Notice shall be deemed given when received by Lander. Such notice of termination shall not affect or impair any of the agreements and Obligations of the Guarantor under this Guaranty with respect to any Indebtedness existing prior to the time of actual receipt of such notice by Lender, any extensions, modifications, amendments, replacements or renewals thereof, and any interest on any of the foregoing. 16. ASSIGNMENT. Guarantor agrees not to assign any of Guarantor's rights or Obligations described In this Guaranty without Lender's prior written consent which consent may be withheld by Lender In its sole discretion. Guarantor agrees that Lender is entitled to assign some or all of Re rights and remedies described in this Guaranty without notice to or the prior consent of Guarantor in any manner. Unless the Lender shall otherwise consent In writing, the Lender shall have an unimpaired right, prior and superior to that of any assignee, to enforce this Guaranty for the benefit of the Lender, as to those Obligations that the Lender has not assigned. 17. MODIFICATION AND WAIVER. The modification or waiver of any of Guarantor's Obligations or Lender's rights under this Guaranty must be contained in a writing signed by Lender. Lender may delay In exercising or failing to exercise any of its rights without causing a waiver of those rights. A waiver on one occasion shall not constitute a waiver on any other occasion. 18. SUCCESSORS AND ASSIGNS. This Guaranty shall be binding upon and Inure to the benefit of Guarantor and Lender and their respective successors, assigns, trustees, receivers, administrators, personal representatives, legatees, and devisees. 19. NOTICE. Any notice or other communication to be provided under this Guaranty shall be in writing and sent to the parties at the addresses described in this Guaranty or such other addresses as the parties may designate in writing from time to time. 20. SEVERABILITY. If any provision of this Guaranty is invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 21. APPLICABLE LAW. This Guaranty shall be governed by the laws of the state of Pesmsylvania Unless applicable law provides otherwise, Guarantor consents to the jurisdiction and venue of any court located In such state selected by Lender, in its discretion, in the event of any legal proceeding under this Guaranty. 22. COLLECTION COSTS. To the extent permitted by law, Guarantor agrees to pay Lender's reasonable fees and costs, including, but not limited to, an attorney's commission of 5% of the total amount then due, fees and costs of attorneys and other agents (Includin without limitation paralegals, clerks and consultants) whether or not any attorney or agent is an employee of Lender, which are Incurred by Lander in collecting arty amount due or enforcing any right or remedy under this Guaranty, including, but not limited to, all fees and costs Incurred on appeal, in bankruptcy, for post-judgment collection actions, and whether or not suit is brought 23. REPRESENTATIONS OF GUARANTOR. Guarantor acknowledges receipt of reasonably equivalent value In consideration for the execution of this Guaranty and represents that, after giving effect to this Guaranty, the fair market value of Guarantor's assets exceeds Guarantor's total liabilities, including contingent, subordinate and unliquidated liabilities, that Guarantor has sufficient cash flow to meet debts as they mature, and that Guarantor does not have unreasonably small capital. Guarantor represents that all required director and shareholder consents to enter Into this Guaranty have been obtained. 24. MISCELLANEOUS. Guarantor and Lender agree that time is of the essence. Guarantor will provide Lender with current financial statements and other financial information upon request All references to Guarantor in this Guaranty shall Include all entities or persons signing this Guaranty. If there is more than one Guarantor, their obligations under this Guaranty shall be joint and several. Nothing In this Guaranty is intended to require, nor should it be construed to require, the signature of Borrower's spouse in violation of Regulation B (12 C.F.R. Part 202.7) in connection with this or any other Indebtedness of Borrower to Lender. This Guaranty represents the complete and integrated understanding between Guarantor and Lender regarding the terms hereof. 25. WAIVER OF JURY TRIAL LENDER AND GUARANTOR HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANYCIVIL ACTION ARISING OUT OF, OR BASED UPON, THIS GUARANTY. 26. ADDITIONAL TERMS: WARNING: READ BEFORE SIGNING - YOU ARE WAIVING IMPORTANT RIGHTS ® IF CHECKED, AS A MATERIAL INDUCEMENT TO LENDER TO MAKE THE LOAN(S) OR OTHER FINANCIALACCOMMODATION(S) TO BORROWERGUARANTIED BY THIS GUARANTY, GUARANTORIRREVOCABLYAUTHORIZESAND EMPOWERS ANY ATTORNEYOR THE PROTHONOTARYOR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AS ATTORNEY FOR GUARANTOR IN ANY ACTION BROUGHT BY LENDER AFTER AN EVENT OF DEFAULT UNDER THIS GUARANTY,AND TO CONFESS JUDGMENT AGAINSTGUARANTORFORALL SUMS DUE UNDER THIS GUARANTY,AND FORALL ACCRUED INTEREST ON THOSE AMOUNTS, COST OF SUIT, AND ATTORNEY FEES, TOGETHER WITH INTEREST ON ANY JUDGMENT, AT THE RATE OF INTEREST SPECIFIED IN THE LOAN DOCUMENTS AFTER DEFAULT, FROM THE ENTRY OF SUCH JUDGMENT UNTIL THE FULL AMOUNT DUE LENDER IS ACTUALLY RECEIVED. THIS GUARANTY, OR A COPY VERIFIED BY AFFIDAVIT, WILL BE A SUFFICIENT WARRANT. THE AUTHORITY GRANTED HEREIN MAY BE EXERCISED AS NEEDED FROM TIME TO TIME, AS OFTEN AS NECESSARY, UNTIL RECEIPT OF PAYMENT IN FULL OF ALL SUMS DUE LENDER. GUARANTORKNOW INGLY, INTENTIONALLY AND VOLUNTARILY, AFTER CONSULTATION WITH INDEPENDENT COUNSEL, UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS TO DUE PROCESS GUARANTOR HAS OR MAY HAVE UNDER THE CONSTITUTIONS AND LAWS OF THE UNITED STATES AND OFTHE COMMONWEALTH OF PENNSYLVANIA, EXCEPT THE RIGHT TO ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO THE EXECUTION OF ANY CONFESSED JUDGMENT. GUARANTOR FURTHER UNDERSTANDS THAT UPON GUARANTOR'S DEFAULT AND CONFESSION OF JUDGMENT. THIS WAVIER ALLOWS LENDER TO IMMEDIATELY EXECUTE UPON AND SEIZE AND SELL ANY OF GUARANTOR'S PROPERTY WITHOUT PRIOR NOTICE OR OPPORTUNITY FOR HEARING, EXCEPT ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO THE EXECUTION OF THE CONFESSED JUDGMENT, IN ORDER TO SATISFY OR SECURE ALL SUMS DUE GUARANTORACKNOWLEDGES THAT GUARANTORHAS READ, UNDERSTANDS,AND AGREESTO THE TERMS AND CONDITIONS OF THIS GUARANTY INCLUDING THE TERMS AND CONDITIONS ON THE REVERSESIDE. GUARANTORHAS EXECUTEDTHIS GUARANTYWITH THE INTENT TO BE LEGALLY BOUND NOTWITHSTANDINGANY FAILUREBY ANY OTHER PERSON TO SIGN THIS GUARANTY. GUARANTORACKNOWLEDGESRECEIPTOF AN EXACT COPY OF THIS GUARANTY. IN WITNESS WHEREOF, the undersigned has/have caused this instrument to be executed asa sealed Instrument this 10thday of February, 2005 GUARANTOR: orris Peters GUARANT >!a<ic a star C (Seal) (Seal) Lorris Peters >3. M c el Peters GUARANTOR: GUARANTOR: (Seal) (Seal) i ooeonAe m .intin W Warlenri Co. (411AM) (800) 937.3702 CommunityBanks 's Nort?h.3tyra Ierrlarbnrg, PA 17101 717) 213-2380 "LENDER I ................:..:.::...:.:...:.....:.:.. ...... so Flowers & Gifts, Inc. 275 Cumberland 7.000 $20,000.00 02/10/05 02/10/10 COMMERCIAL FIXED RATE PROMISSORY NOTE 09114201 tenovations zo ziower zpa- Twenty Thousand and ROMISE TO PAY`. For value received, Borrower promises to pay to the order of tender the principal amount of Dollars ($ 20, 000 00 ) plus 20/100 terest on the unpaid principal balance at the rate and in the manner described below, until all amounts owing under this Note are paid in full. All amounts ceived by Lender shall be applied first to accrued, unpaid interest, then to unpaid principal, and then to any late charges and expenses, or in any other order a determined by Lender, in Lender's sole discretion, as permitted by law. ITEREST RATE: Interest shall be computed on the basis of the actual number of days over 360 A. per year. Interest i this Note shall be calculated and payable at the fixed rate of 7,009 % per annum. EFAULT RATE: If there is an Event of Default under this Note, the Lender may, in its discretion, increase the interest rate on this Note to: Rate in effect at time of default plus two percent 2 r the maximum Interest rate Lender is permitted to charge by law, whichever is less. AYMENT SCHEDULE: Borrower shall pay the principal and interest according to the following schedule: 59 payments of $396.86 beginning March 10, 2005 and continuing at monthly time intervals thereafter. A final payment of the unpaid principal balance plus accrued interest is due and payable on February 10, 2010. 'REPAYMENT: This Note may be prepaid in part or in full on or before Its maturity date[:] with ® without penalty. If this Note contains more than ne installment, any partial prepayment will not affect the due date or the amount of any subsequent installment, unless agreed to, in writing, by lorrower and Lender. If this Note is prepaid in full, there will be ? A minimum finance charge of $ A prepayment penalty of : -ATE CHARGE: If a payment is received more than 10 days late, Borrower will be charged a late charge of: ? % of the "aid late payment; FI$ 5.00 % of the unpaid late payment or $50.00 , whichever is ® greater I less, as permitted by law. No more than one late charge will be imposed on any single payment or portion of any payment. SECURITY: To secure the payment and performance of obligations incurred under this Note, Borrower grants Lender a security interest in all of Borrower's right, title, and interest in all monies, Instruments, savings, checking, share and other accounts of Borrower (excluding IRA, Keogh, trust accounts and other accounts subject to tax penalties if so assigned) that are now or in the future in Lender's custody or control. ® If checked, the obligations under this Note are also secured by the collateral described In any security instrument(s) executed in connection with this Note, and any collateral described in any other security instrument(s) securing this Note or all of Borrowers obligations. funds in Borrowers CHECK PROCESSING FEE: if a check for payment Is returned 35 Lander for any which reasoon shall (for be addedle, the use t principal rebalance. checking account), lender will assess a check processing fee of $ RENEWAL: ? If checked, this Note is a renewal, but not a satisfaction, of Loan Number ® IF CHECKED, AS A MATERIAL INDUCEMENT TO LENDER TO MAKE THE LOAN EVIDENCED BY THIS NOTE, BORROWERIRREVOCABLYAUTHORIZESAND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARYOR CLERK OF ANY COURT N THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AS ATTORNEY FOR BORROWERIN ANY ACTION BROUGHT BY LENDER AFTER BORROWER'SDEFAULT UNDER THIS NOTE OR ANY OTHER LOAN DOCUMENT, AND TO CONFESS JUDGMENT AGAINST BORROWERFORALL SUMS DUE UNDER THIS NOTE OR ANY OTHER LOAN DOCUMENT, AND FORALL ACCRUED INTEREST ON THOSE AMOUNTS, COST OF SUIT, AND ATTORNEY FEES, TOGETHER WITH INTEREST ON ANY JUDGMENT, AT THE RATE OF INTEREST SPECIFIED IN THE NOTE AFTER DEFAULT, FROM THE ENTRY OF SUCH JUDGMENT AS NEEDED FROM ME O TIME, AS OFTEN AS NECESSARY, UNTIL ECEIPT OF PAYMENT N FULL OF ALL SFUM UTHORITY GRANTED ERE N MAYBE EXERC LENDER THE A DUE LENDER. BORROWERKNOWINGLY, INTENTIONALLY AND VOLUNTARILY, AFTER CONSULTATION WITH INDEPENDENT COUNSEL, UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS TO DUE PROCESS BORROWERHAS OR MAY HAVE UNDER THE CONSTITUTIONS AND LAWS OF THE UNITED STATES AND OF THE COMMONWEALTH OF PENNSYLVANIA, EXCEPT THE RIGHT TO ANY NOTICE ANDIOR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO THE EXECUTION OF ANY CONFESSED JUDGMENT. BORROWERFURTHERUNDERSTANDSTHAT UPON BORROWER'SDEFAULT AND CONFESSION OF JUDGMENT, THIS WAIVERALLOWS LENDER TO IMMEDIATELY EXECUTE UPON AND SEIZE AND SELL ANY OF BORROWER'S PROPERTY WITHOUT PRIOR NOTICE OR OPPORTUNITY FOR HEARING, EXCEPT ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO THE EXECUTION OF THE CONFESSED JUDGMENT, IN ORDER TO SATISFY OR SECURE ALL SUMS DUE. THE P PERSONSSIGNING BELOW ACKNOWLEDGETHAT THEY E READ, S A O THE TERMS AND CONDITIONS OF HIS NOTE, INCLUDING THE PROVISIONS ON THE REVERSE SIDE, AND FURTHER ACKNOWLEDGE RECEIPT OF AN EXACT COPY OF THIS NOTE. IN WITNESSWHEREOF,the undersigned has/have caused this instrument to be executed as a sealed instrument this 10th day of February, 2005 . BORROWER-Agapao Flowe S Gifts, inc. BORROWER: Agapao Flo s & Gif s, I B (Seal) B (Seal) Lorr a eters E. M c ae Peters BORROWER: BORROWER: (Seal) BORROWER: BORROWER: (Seal) BORROWER: BORROWER: (Seal) (Seal) (Seal) (Seal) LPPAZot 0 Hwww PMwwW SdLmm. Inc. AA/04) MW 0374M r, ? >\ TERMS AND CONDITIONS 1. EVENTS OF DEFAULT. An Event of Defauk will occur under this Note in the event that Borrower, ar,/ guarantor or any other third party pledging collateral to secure this Note: (a) falls to make any payment on this Note or any other Indebtedness to Lender when due; (b) falls to perform any obligation or breaches any warranty or covenant to Lender contained in this Note, any securfiy Instrument, or any other present or future written agreement regarding this or any other indebtedness of Borrower to Lender; (c) provides or causes any false or misleading signature or representation to be provided to Lender, (d) sells, conveys, or transfers rights In any collateral securing this Note without the written approval of Lender, destroys, loses or damages such collateral in any material respect; or subjects such collateral to seizure, confiscation or condemnation; (e) has a garnishment, judgment, tax levy, attachment or lien entered or served against Borrower, any guarantor, or any third party pledging collateral to secure this Note or any of their properly; (f) dies, becomes legally incompetent, is dissolved or terminated, ceases to operate its business, becomes insolvent, makes an assignment for the benefit of creditors, falls to pay debts as they become due, or becomes the subject of any bankruptcy, insolvency or debtor rehabilitation proceeding; (g) falls to provide Lender evidence of satisfactory financial condition; (h) has a majority of its outstanding voting securities sold, transferred or conveyed to any person or entity other than any person or entity that has the majority ownership as of the date of the execution of this Note; or (i) causes Lender to deem itself Insecure due to a significant decline in the value of any real or personal property securing payment of this Note, or Lender in good faith, believes the prospect of payment or performance is impaired. 2. RIGHTS OF LENDER ON EVENT OF DEFAULT. If there Is an Event of Default under this Note, Lender will be entitled to exercise one or more of the following remedies without notice or demand (except as required by law): (a) to declare the principal amount plus accrued interest under this Note and all other present and future obligations of Borrower Immediately due and payable in full, such acceleration shall be automatic and Immediate N the Event of Default is a filing under the Bankruptcy Code; (b) to collect the outstanding obligations of Borrower with or without resorting to judicial process; (c) to cease making advances under this Note or any other agreement between Borrower and Lender; (d) to take possession of any collateral in any manner permitted by law; (e) to require Borrower to deliver and make available to Lender any collateral at a place reasonably convenient to Borrower and Lender, (f) to sell, lease or otherwise dispose of any collateral and collect any deficiency balance with or without resorting to legal process; (g) to set-off Borrowers obligations against any amounts due to Borrower including, but not limited to, monies, Instruments, and deposit accounts maintained with Lender; and (h) to exercise all other rights available to Lender under any other written agreement or applicable law. Lenders rights are cumulative and may be exercised together, separately, and In any order. Lenders remedies under this paragraph are in addition to those available at common law, including, but not limited to, the right of set-off. 3. DEMAND FEATURE. ? If checked, this Note contains a demand feature. Lenders right to demand payment, at any time, and from time to time, shall be in Lenders sole and absolute discretion, whether or not any default has occurred. 4. FINANCIAL INFORMATION. Borrower will at all times keep proper books of record and account in which full, true and correct entries shall be made in accordance with generally accepted accounting principles and will deliver to Lender, within ninety (90) days after the end of each fiscal year of Borrower, a copy of the annual financial statements of Borrower relating to such fiscal year, such statements to include (1) the balance sheet of Borrower as at the end of such fiscal year and (ii) the related income statement, statement of retained earnings and statement of cash flow of Borrower for such fiscal year, prepared by such certified public accountants as may be reasonably satisfactory to Lender. Borrower also agrees to deliver to Lender within fifteen (15) days after filing same, a copy of Borrowers income tax returns and also, from time to time, such other financial information with respect to Borrower as Lender may request. 5. MODIFICATION AND WAIVER. The modification or waiver of any of Borrowers obligations or Lenders rights under this Note must be contained in a writing signed by Lender. Lender may perform any of Borrowers obligations or delay or fail to exercise any of Its rght9 without causing a waiver of those obligations or rights. A waiver on one occasion will not constitute a waiver on any other occasion. Borrowers obligations under this Note shall not be affected if Lender amends, compromises, exchanges, fails to exercise, impairs or releases any of the obligations belonging to any co-borrower or guarantor or any of its rights against any co-borrower, guarantor, the collateral or any other property securing the obligations. Lender may accept and apply checks and other instruments marked "Paid in Full' or with a similar phrase describing a payment as full satisfaction of the obligations incurred under this Note, without being bound by that language and without waiving any rights to payment of all amounts owing under this Note. 6. SEVERABILITY. If any provision of this Note is invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 7. ASSIGNMENT. Borrower agrees not to assign any of Borrowers rights, remedies or obligations described in this Note without the prior written consent of Lender, which consent may be withheld by Lender in its sole discretion. Borrower agrees that Lender is entitled to assign some or all of its rights and remedies described in this Note without notice to or the prior consent of Borrower. B. NOTICE. Any notice or other communication to be provided to Borrower or Lender under this Note shall be in writing and sent to the parties at the addresses described in this Note or such other address as the parties may designate in writing from time to time. 9. APPLICABLE LAW. Interest, including rates, fees and charges which compensate Lender for the extension of credit to Borrower under this Note or for making the line of credit available to Borrower, or which compensate Lender for any default or breach by Borrower of the terms and conditions of this Note, shall be governed by federal law and the laws of the state of Pennsylvania . All other terms and conditions of this Note shall be governed by the laws of the state ofpennsylyania unless otherwise preempted by federal law. Unless applicable law provides otherwise, Borrower consents to the jurisdiction and venue of any court located in Peaasylvania selected by Lender, in its discretion, In the event of a legal proceeding under this Note. 10. COLLECTION COSTS. To the extent permitted by law, Borrower agrees to pay Lenders reasonable fees and costs, including, but not limited to, fees and costs of attorneys and other agents (including without limitation paralegals, clerks and consultants), whether or not such attorney or agent is an employee of Lender, which are incurred by Lender in collecting any, amount due or enforcing any right or remedy under this Note, whether or not suit is brought, including, but not limited to, all fees and costs incurred on appeal, in bankruptcy, and for post-judgment collection actions. 11. MISCELLANEOUS. This Note Is being executed primarily for commercial, agricultural, or business purposes. Borrower and Lender agree that time is of the essence. Borrower agrees to make all payments to under at any address designated by Lender and in lawful United 6tates currency. Borrower and any person who endorses this Note waives presentment, demand for payment, notice of dishonor and protest and further waives any right to require Lender to proceed against anyone else before proceeding against Borrower or said person. All references to Borrower in this Note shall include all of the parties signing this Note, and this Note shall be binding upon the heirs, successors and assigns of Borrower and Lender. If there is more than one Borrower their obligations under this Note shall be joint and several. Information concerning this Note may be reported to credit reporting agencies and will be made available when requested by proper legal process. This Note represents the complete and Integrated understanding between Borrower and Lender regarding the terms hereof. 12. JURY TRIAL WAIVER. LENDER AND BORROWER HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY CIVIL ACTION ARISING OUT OF, OR BASED UPON, THIS NOTE OR THE COLLATERAL SECURING THIS NOTE 13. ADDITIONAL TERMS: CommunityBanks Commmhity Banlrs 15 North 3rd S? PA 17101 (717) 213- 80 "LENDER" 93 1 VARIABLE 1 $50,000.00 1 02/10/05 COMMERCIAL VARIABLE RATE REVOLVING OR DRAW NOTE 09114200 PROMISE TO PAY: For value received, Borrower promises to pay to the order of Lender, the principal amount of "I LEY uu UMC"Au WAU no/100 Dollars ($ 50,000-00 ) of, if less, the aggregate unpaid principal amount of all loans or advances made by Lender to Borrower under this Note, plus interest on the unpaid principal balance at the rate and in the manner described below, until all amounts owing under this Note are paid In full. All amounts received by Lender shall be applied first to accrued unpaid interest, then to unpaid principal and then to unpaid late charges and expenses, or in any other order as determined by Lender, in Lender's sole discretion, as permitted by law. REVOLVING OR DRAW FEATURE: ® This Note possesses a revolving feature. Upon satisfaction of all conditions set forth in this Note, Borrower shall be entitled to borrow up to the full principal amount of the Note and to repay and reborrow from time to time during the term of the Note. ? This Note possesses a draw feature. Upon satisfaction of all conditions set forth in this Note, Borrower shall be entitled to draw one or more times under this Note. Any repayment may not be reborrowed. The aggregate amount of such draws shall not exceed the full principal amount of this Note. Information with regard to any loans or advances under this Note shall be recorded and maintained by Lender in Its Internal records and such records shall be conclusive of the principal and interest owed by Borrower under this Note unless there is a material error In such records. The Lender's failure to record the date and amount of any loan or advance shall not limit or otherwise affect the obligations of the Borrower under this Note to repay the principal amount' of the loans or advances together with all interest accruing thereon. Borrower shall be entitled to inspect or obtain a copy of the records during Lender's business hours. CONDITIONS FOR ADVANCES: If no Event of Default has occurred under this Note, Borrower shall be entitled to borrow monies under this Note (subject to the limitations described above) under the following conditions: INTEREST RATE: This Note has a variable rate feature. The Interest rate on this Note may change from time to time if the Index Rate identified below changes. Interest shall be computed on the basis of the actual number of days over 360 days per year. interest on this Note shall be calculated and payable at a variable rate equal to 1.500 % per annum over the Index Rate. The Initial interest rate on this Note shall be 6 .7,50 % per annum. Any change In the interest rate resulting from a change in the Index Rate will be effective on: The date of the change. RATE LIMITATIONS: Subject to applicable law, the minimum interest rate on this Note shall be 4.000 % per annum. The maximum interest rate on this Note shall not exceed 21.000 % per annum, or if less, or if a aximum rate is not indicated, the maximum Interest rate Lender is permitted to charge by law. The maximum rate Increase at anyone time will be n /a %. The maximum rate decrease at any one time will be n/a %. INDEX RATE: The Index Rate for this Note shall be: Wall Street Journal Prime: The Prime Rate as published in the Wall Street Journal. If the Index Rate is redefined or becomes unavailable, then Lender may select another index which is substantially similar. DEFAULT RATE: If there is an Event of Default under this Note, the Lender may, in Its discretion, Increase the Interest rate on this Note to: or the maximum interest rate Lender is permitted to charge by Taw, whichever less. PAYMENT SCHEDULE: Borrower shall pay the principal and interest according to the following schedule: On demand, but if no demand is made, then: Accrued interest shall be payable monthly as billed by the Lender. Principal shall be payable on demand. WARNING: READ BEFORE SIGNING - YOU ARE WAIVING IMPORTANT RIGHTS ® IF CHECKED, AS A MATERIAL INDUCEMENT TO LENDER TO MAKE THE LOAN EVIDENCED BY THIS NOTE, BORROWERIRREVOCABLYAUTHORIZES AND EMPOWERS AAY ATTORNEY OR THE PROTHONOTARYOR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AS ATTORNEY FOR BORROWERIN ANY ACTION BROUGHT BY LENDER AFTER BORROWER'SDEFAULT UNDER THIS NOTE OR ANY OTHER LOAN DOCUMENT, AND TO CONFESS JUDGMENT AGAINSTBORROWERFORALL SUMS DUE UNDER THIS NOTE OR ANY OTHER LOAN DOCUMENT, AND FOR ALL ACCRUED INTEREST ON THOSE AMOUNTS, COST OF SUIT, AND ATTORNEY FEES, TOGETHER WITH INTEREST ON ANY JUDGMENT, AT THE RATE OF INTEREST SPECIFIED IN THE NOTE AFTER DEFAULT, FROM THE ENTRY OF SUCH JUDGMENT UNTIL THE FULL AMOUNT DUE LENDER IS ACTUALLY RECEIVED. THIS NOTE, OR A COPY VERIFIED BY AFFIDAVIT, WILL BE A SUFFICIENT WARRANT. THE AUTHORITY GRANTED HEREIN MAY BE EXERCISED AS NEEDED FROM TIME TO TIME, AS OFTEN AS NECESSARY, UNTIL RECEIPT OF PAYMENT IN FULL OF ALL SUMS DUE LENDER. BORROWERKNOWINGLY, INTENTIONALLY AND VOLUNTARILY, AFTER CONSULTATION WITH INDEPENDENT COUNSEL, UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS TO DUE PROCESS BORROWERHAS OR MAY HAVE UNDER THE CONSTITUTIONS AND LAWS OF THE UNITED STATES AND OF THE COMMONWEALTH OF PENNSYLVANIA, EXCEPT THE RIGHT TO ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO THE EXECUTION OF ANY CONFESSED JUDGMENT. BORROWERFURTHERUNDERSTANDS THAT UPON BORROWER'SDEFAULT AND CONFESSION OF JUDGMENT, THIS WAIVERALLOWS LENDER TO IMMEDIATELY EXECUTE UPON AND SEIZE AND SELL ANY OF BORROWER'S PROPERTY WITHOUT PRIOR NOTICE OR OPPORTUNITY FOR HEARING, EXCEPT ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO THE EXECUTION OF THE CONFESSED JUDGMENT, IN ORDER TO SATISFY OR SECURE ALL SUMS DUE. THE PERSONS SIGNING BELOW ACKNOWLEDGETHAT THEY HAVE READ, UNDERSTAND, AND AGREETO THE TERMS AND CONDITIONS OF THIS NOTE, INCLUDING THE PROVISIONS ON THE REVERSE SIDE, AND FURTHER ACKNOWLEDGE RECEIPT OF AN EXACT COPY OF THIS NOTE. IN WITNESS WHEREOF,the undersigned has/have caused this instrument to be executed as asealed instrument this 10th day of February, 2005 BORROWER: apao Flow Gifts, Inc. H : J^-.& (Sew) Lorr a Peters BORROWER: apg0 F S fr Gi S, I C. H - (Seal) 8. c ae Peters BORROWER: BORROWER: (Sew) (Seal) BORROWER: BORROWER: (Seal) (Seal) BORROWER: BORROWER: (Seal)' (Seas' LPPA204 0 Hadand Flrm Wet aWubnr, Im (4fW4) (800) 937.9796 PREPAYMENT". This Note may be r -lid in pr r in full on or before Its maturity dati, with F- Ihout penalty. If this Note !contains more than one installment, any partial prepays. will nL act the due data or the amount of subset, . Installment, unless,agreed to, in writing, by Borrower and Lender. If this Note is prepaid in full, there will be ? A minimum finance charge of $ ?Aprspayment penalty of : LATE CHARGE: If a pa y$ is received more than 10 days late, Borrower will be charged a late charge of: ? % of the unpaid late payment; $ 5.00 % of the unpaid late payment or $50.00 whichever is ®greater ? less, as permitted by law. No more than one late charge will be imposed on any single payment or portion of any payment. SECURITY: To secure the payment and performance of obligations Incurred under this Note, Borrower grants Lender a security Interest in all of Borrowers right, title, and interest in all monies, instruments, savings, checking, share and other accounts of Borrower eexcluding IRA, Keogh, trust accounts and other accounts subject to tax penalties if so assigned) that are now or in the future in Lenders custody or control If checked, the obligations under this Note are also secured by the collateral described in any security instrument(s) executed in connection with this Note, and any collateral described in any other security instrument(s) securing this Note or all of Borrowers obligations. CHECK PROCESSING FEE: If a check for payment is returned to Lender for any reason (for example, because there are Insufficient funds In Borrowers checking account), Lender will assess a check processing fee of $ 35.00 which shall be added to the principal balance. RENEWAL: ? If checked, this Note is a renewal, but not a satisfaction, of Loan Number TERMS AND CONDITIONS 1. EVENTS OF DEFAULT. An Event of Default will occur under this Note in the event that Borrower, any guarantor or any other third party pledging collateral to secure this Note: (a) fails to make any payment on this Note or any other indebtedness to Lender when due; (b) fails to perform any obligation or breaches any warranty or covenant to Lender contained in this Note, any security instrument, or any other present or future written agreement regarding this or any other indebtedness of Borrower to Lender; (c) provides or causes any false or misleading signature or representation to be provided to Lender, (d) sells, conveys, or transfers rights in any collateral securing this Note without the written approval of Lender; destroys, loses or damages such collateral in any material respect; or subjects such collateral to seizure, confiscation or condemnation; (e) has a gamishment, judgment, tax levy, attachment or lien entered or served against Borrower, any guarantor, or any third party pledging collateral to secure this Note or any of their property; (f) dies, becomes legally Incompetent, is dissolved or terminated, ceases to operate its business, becomes insolvent, makes an assignment for the benefit of creditors, fails to pay debts as they become due, or becomes the subject of any bankruptcy, insolvency or debtor rehabilitation proceeding; (g) fails to provide Lender evidence of satisfactory financial condition; (h) has a majority of its outstanding voting securities sold, transferred or conveyed to any person or entity other than any person or entity that has the majority ownership as of the date of the execution of this Note; or (1) causes Lender to deem itself insecure due to a significant decline in the value of any real or personal property securing payment of this Note, or Lender in good faith, believes the prospect of payment or performance Is impaired. 2. RIGHTS OF LENDER ON EVENT OF DEFAULT. If there is an Event of Default under this Note, Lender will be entitled to exercise one or more of the following remedies without notice or demand (except as required by law): (a) to declare the principal amount plus accrued interest under this Note and all other present and future obligations of Borrower immediately due and payable in full, such acceleration shall be automatic and immediate if the Event of Default is a filing under the Bankruptcy Code; (b) to collect the outstanding obligations of Borrower with or without resorting to judicial process; (c) to cease making advances under this Note or any other agreement between Borrower and Lender, (d) to take possession of any collateral in any manner permitted by law; (e) to require Borrower to deliver and make available to Lender any collateral at a place reasonably convenient to Borrower and Lender, (f) to sell, lease or otherwise dispose of any collateral and collect any deficiency balance with or without resorting to legal process; (g) to set-off Borrowers obligations against any amounts due to Borrower including, but not limited to, monies, instruments, and deposit accounts maintained with Lender, and (h) to exercise all other rights available to Lender under any other written agreement or applicable law. Lenders rights are cumulative and may be exercised together, separately, and in any order. Lenders remedies under this paragraph are in addition to those available at common law, including, but not limited to, the right of set-off. 3. DEMAND FEATURE. ® If checked, this Note contains a demand feature. Lenders right to demand payment, at any time, and from time to time, shall be in Lenders sole and absolute discretion, whether or not any default has occurred. 4. FINANCIAL INFORMATION. Borrower will at all times keep proper books of record and account in which full, true and correct entries shall be made in accordance with generally accepted accounting principles and will deliver to Lender, within ninety (90) days after the end of each fiscal year of Borrower, a copy of the annual financial statements of Borrower relating to such fiscal year, such statements to include (i) the balance sheet of Borrower as at the end of such fiscal year and (ii) the related Income statement, statement of retained earnings and statement of cash flow of Borrower for such fiscal year, prepared by such certified public accountants as may be reasonably satisfactory to Lender. Borrower also agrees to deliver to Lender within fifteen (16) days after filing same, a'copy of Borrowers income tax returns and also, from time to time, such other financial Information with respect to Borrower as Lender may request. 5. MODIFICATION AND WAIVER. The modification or waiver of any of Borrowers obligations or Lenders rights under this Note must be contained in a writing signed by Lender. Lender may perform any of Borrowers obligations or delay or fail to exercise any of its rights without causing a waiver of those obligations or rights. A waiver on one occasion will not constitute a waiver on any other occasion. Borrowers obligations under this Note shall not be affected if Lender amends, compromises, exchanges, fails to exercise, impairs or releases any of the obligations belonging to any oo-borrower or guarantor or any of its rights against any co-borrower, guarantor, the collateral or any other property securing the obligations. Lender may accept and apply checks and other instruments marked "Paid in Full" or with a similar phrase describing a payment as full satisfaction of the obligations Incurred under this Note, without being bound by that language and without waiving any rights to payment of all amounts owing under this Note. 6. SEVERABILITY. If any provision of this Note is invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 7. ASSIGNMENT. Borrower agrees not to assign any of Borrowers rights, remedies or obligations described in this Note without the prior written consent of Lender, which consent may be withheld by Lender in Its sole discretion. Borrower agrees that Lender is entitled to assign some or all of its rights and remedies described in this Note without notice to or the prior consent of Borrower. 8. NOTICE. Any notice or other communication to be provided to Borrower or Lender under this Note shall be in writing and sent to the parties at the addresses described In this Note or such other address as the parties may designate in writing from time to time. 9. APPLICABLE LAW. Interest, including rates, fees and charges which compensate Lender for the extension of credit to Borrower under this Note, or which GomPensate Lender for any default or breach by Borrower of the terms and conditions of this Note, shall be governed by the laws of the state of PenasYlvania All other terms and conditions of this Note shall be governed by the laws of the. state of Penns lvania Unless applicable law provides otherwise, Borrower consents to the jurisdiction and venue of any court located in Pennsylvania selected by Lender, in its discretion, in the event of a legal proceeding under this Note. i3. COLLECTION COSTS. To the extent permitted by law, Borrower agrees to pay Lenders reasonable fees and costs, including, but not limited to, fees and costs of attorneys and other agents (including without limitation paralegals, clerks and consultants), whether or not such attorney or agent is an employee of Lender, which are incurred by Lender in collecting any amount due or enforcing any right or remedy under this Note, whether or not suit is brought, including, but not limited to, all fees and costs incurred on appeal, in bankruptcy, and for post-judgment collection actions. 11. MISCELLANEOUS. This Note is being executed primarily for commercial, agricultural, or business purposes. Borrower and Lender agree that time is of the essence. Borrower agrees to make all payments to Lender at any address designated by Lender and in lawful United States currency. Borrower and any person who endorses this Note waives presentment, demand for payment, notice of dishonor and protest and further waives any right to require Lender to proceed', against anyone else before proceeding against Borrower or said person. All references to Borrower in this Note shall include all of the parties signing this Note, and this Note shall be binding upon the heirs, successors and assigns of Borrower and Lender. If there is more than one Borrower their obligations under this Note shall be joint and several. Information concerning this Note may be reported to credit reporting agencies and will be made available when requested by proper legal process. This Note represents the complete and. Integrated understanding between Borrower and Lender regarding the terms hereof. 12. JURY TRIAL WAIVER. LENDER AND BORROWER HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY CIVIL ACTION ARISING OUT OF, OR BASED UPON, THIS NOTE OR THE COLLATERAL SECURING THIS NOTE. 13. ADDITIONAL TERMS: xLL TS]LT CUR' AXW piece. parcel and lot of land with improvewnts thereon situate in upper Allen Township. Cumberland County, Pennsylvania, bsiag shoNn as Lot 61 on the Final Subdivision plan for Xandenwood phase It and being more fully bound and described as follows, to wit: RZOxYBING at a point an the west line of 8mlyn Lane, said point being the southeast chortle= of Lot 62; thence continuing along the line of 8mlyn Lane on a line curving to the right having a radius of 700.00 and an are length 146.78 feet said arc being subtended by a chord of South 09 degrees, 00 minutes, 44 seconds West a distance of 146.51 feet to a point the northeast corner of Lot 60; thence along the north line of Lot 60 North 74 degrees, 56 minutes, 50 seconds 'Best a distance of 174.87 feet to a point in the east line of Lot 66) thence along the east lane of Lot 66 North 03 degrees, 32 minutes, 55 seconds last a distance of 109.31 feet to a point the southwest corner of Lot 62; thence along the south line of Lot 62 south 86 degrees, 59 minutes, 41 seconds East a distance of 185.34 feet to a point, the place of HE01lYNXXG?. COETAIN ING 23,245 square Feet of land. DICING LOT NO. 61, Final Subdivision Plan of. Phase 1, Lindenwood, dated February 3, 1997, last revised July 17, 1997, recorded in the office of the RecordXt Deeds of Cumberland eounvy, Pennsylvania, in Plan Book 75, Page 29 RAVING TRERRON' ERECTED a single family residence an other improvesent9 known and numbered 30 Emlyn Lane, Mechanicsburg, Pennsylvania. ALSO azlxrv the property known, named and identified in the Declaration, referred to belowe as "Lxndenwood" located`in Upper Allen Township, Cumberland county, Pennsylvania, which has therefore been submitted to the provisions of the Pennsylvania Uniform Planned Commmunity pact, 68 PA C.S.A. Sections 5101 et seq., by the recording itl the office of the Recorder of Deeds of Cumberland county, Pennsylvania, the Declaration for Liudenwood, Opeclaration"l dated August 28, 1997, recorded August 280 1997 in misc. Book 555, Page 806, being described in Section 2.2 of the Declaration and shown (and described) in Exhibit S of the Declaration. UND13R AND SUBJUCT, to neclaration for L3.ndenwood, a flexible Residential Planned Community recorded in Miscellaneous Book 555, Page 806 and restrictions, reservations, conditions and rights-of- way as shown on the Final Subdivision Plan of Phase 1, Lindeuwood as recorded in Platt Hook 75, Page 29. c 1? Prepared By: Community Banks Return To: Community Banks P.O. Box 233 Hanover, PA 17331 Parcel Identification No./Uniform Parcel Identifier: ROBERT P. ZIEGLER RECORDER OF DEEDS Cl."z'EFtiLP?U CCU?iTY - f' 2005 FEB 28 Rol 8 17 RECEIYgp MAR 2005 9 ? /4-d$ ? )4z - -j WLJY. Moreover, in further consideration, Mortgagor does, for Mortga gor and Mortgagor's heirs, representatives successors and assigns, hereby expressly warrant, covenant, and agree with Lender its successors ands assigns as follows: rrr111 LPPA897 ® Harland Flnanolal SoluOone, Ino. (1/31/06) (800) 937-3799 Page 1 of 12 11898PG 1264 L xti, b,+ «b?, OPEN-END MORTGAGE SECURING GUARANTY This Mortgage Secures Future Advances 1. OBLIGATIONS. This Mortgage shall secure the %ment and performance of all indebtedness, liabilities, obli ations and covenants of Borrower or Mortgagor to Lender up to a maximum amount outstanding at any one time of $70, 000 00 plus accrued and unpaid interest (cumulatively "Obligations") pursuant to: (a) this Mortgage and all guaranties given by Mortgagor to Lender, including but not limited to, a continuing guaranty dated Febrt executed by Mortgagor guaranteeing the indebtedness of the Borrower escrl e a ove, inc a ing but not limited to the promissory notes and aareements dmi-rihAri halnw n,ire, -9n4 4n 4L.e ?....., - -t __:-' _.-- In the event that this Mortgage secures less than the entirety, of the Obligations, it shall secure a portion o1 the Obligations equal to tFie amount of the Mortgage regardless of an?r partial payment of the Obligations and shall continue up to the maximum amount stated herein, until the Dbligations have been paid in full. As used in this Paragraph 1, the terms Mortgagor and Borrower shall include and also mean any Mortgagor or Borrower if more than one. 2. REPRESENTATIONS, WARRANTIES AND COVENANTS. Mortgagor represents, warrants and covenants to Lender that: a) Mortgagor has fee simple marketable title to the Prope?y and shall maintain the Property free of all lens, security interests, encumbrances and claims exce t for this Mortgage and those described in Schedule B which is attached to this Mortgage andp incorporated herein by reference, which Mortgagor agrees to pay and perform in a timely manner; (b) Mortgagor is in compliance in all respects with all applicable federal, state and local laws and regulations, including, without limitation those relating to a Hazardous Materials," as defined herein, and other environmental matters (the "E'nvironmental Laws ), and neither the federal government nor the state where the Property is located nor any other governmental or quasi governmental entity has filed a lien on the Property, nor are there any governmental, judicial or administrative actions with respect to environmental matters pending, or to the best of the Mortga oes knowledge, threatened, which involve Mortgagor or the Property. Neither Mortgagor nor, to the best of Mortgagor's knowledge, any other party has used, generated, released, discharged, stored, or disposed of any Hazardous Materials as defined herein, in connection with the Property or transported any Hazardous Materials to or from the Property. Mortgagor shall not commit or permit such actions to be taken in the future. The term "Hazardous Materials shall mean any substance, material, or waste which is or becomes regulated by any governmental authority including, but not limited to: i() friable or nonfriable asbestos; (III) polychlorinated bi hen s, petroleum; (ii) wastes designated as a "hazardous substance" pursuant to ection those of thetCleean Water Act or listed pursuant to Section 307 of the Clean Water Act or any amendments or replacements to these statutes; (v) those substances, materials or wastes defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Actor an amendments or replacements to that statute; and (vi? those substances, materials or wastes def ned as a "hazardous substance" pursuant to Section 01 of the Comprehensive Environmental Response, Compensation and Liability Act, or any amendments or replacements to that statute or any other similar state or federal statute, rule regulation or ordinance now or hereafter in effect. Mortgagor shall not lease or permit the sublease of the Property to a tenant or subtenant whose operations may result in contamination of the Property with Hazardous Materials or toxic substances; LPPAS97B ® Harland Flnanolal Solution", Ino. (1/31/06) (800) 937-3799 lyap/p Page 2 of 12 BK 898PG 12 65.. (c) All applicable laws and regulations including, without limitation the Americans with Disabilities Act, 42 U.S.C. 12101 at seq. (and all regulations pr and omulgated thereunder) and all zoning and building laws regulations relating to the Property by virtue of any federal, state or municipal authority with jurisdiction over the Property, presently are and shall be observed and complied with in all material respects, and all rights, licenses, permits, and certificates of occupancy (including but not limited to zoning variances, special exceptions for nonconforming uses, and final inspection approvals), whether temporary or permanent, which are material to the use and occupancy of the Property, presently are and shall be obtained, preserved and, where necessary, renewed; U ) Mortgagor has the right and is duly authorized to execute and perform its Obligations under this ortgage and these actions do not and shall not conflict with the provisions of any statute, regulation, ordinance, rule of law, contract or other agreement which may be binding on Mortgagor at any time; (e) No action or proceeding is or shall be pending or threatened which might materially affect mortgagor or the Property; and (f) Mortgagor has not violated and shall not violate any statute, regulation, ordinance, rule of law contract or other agreement (including, but not limited to, those Hazardous Materials) which might materially affect the Property or Lender's rights or interet in the Property pursuant to this Mortgage. 3. PRIOR MORTGAGES. Mortga or represents and warrants that there are no prior mortgages or deeds of trust affecting any part of the Property except as set forth on Schedule B attached to this Mort gage which Mortga?ggor agrees to pay and perform in a timely manner. If there are anyprior mortgages or deeds of trust then Mortgagor agrees to pay all amounts owed, and perform all obligations required under such mortgages or deeds of trust and the indebtedness secured thereby and further agrees that a default under any prior mortgage or deed of trust shall be a default under this Mortga a and shall entitle Lender to all rig is and remedies contained herein or in the Obligations to which Lender would be entitled in the event of any other default. 4. TRANSFERS OF THE PROPERTY OR BENEFICIAL INTERESTS IN MORTGAGORS OR BORROWERS. In the event of a sale, conveyance lease, contract for deed or transfer to any person of all or any art of the real property described in Schedule A, or any interest therein, or of all or any beneficial interest in Borrower or Mortgagor (if Borrower or Mortgagor is not a natural person or persons but is a corporation, limited liability company, partnership, trust, or other legal entity), Lender may, at its option, declare the outstanding pnncipaf balance of the Obligations plus accrued interest thereon immediately due and payable. At LendePa request, Mortgagor or Borrower, as the case may be, shall furnish a complete statement setting forth all of its stockholders, members or partners, as appropriate, and the extent of their respective ownership interests. 5. ASSIGNMENT OF RENTS. Mortgagor absolutely assigns to Lender all present and future rents, royalties, income and profits which arise from the use or occupancy of all or any portion of the Property. Until Mortgagor is in default under this Mortgage or any of the Obligations, Mortgagor shall have a license to collect and receive rents, royalties, income and profits. Upon any default under this Mortgage or any of the Obligations, Lender may terminate Mortgagor's license without notice and may thereafter proceed to collect the rents, royalties, income, and profits with or without the appointment of a receiver. All rents royalties, income and prof is collected by Lender or a receiver will be applied first to pay all expenses of collection, then to the payment of all costs of o eration and maintenance of the Property, payment of the Obligations secured b this Mp and then to the Y ortgage in the order determined by Lender in its sole discretion. 6. LEASES AND OTHER AGREEMENTS. Mortgagor shall not take or fail to take any action which may cause or permit the termination or the withholdingg of any payment in connection with an Lease or other agreement ("Agreement" pertaining to the Propek. In addition, Mortgagor, without Lender's prior written consent, shall not: (a) collect any monies payable under any Agreement more than one month in advance- (b) modify any Agreement; (c) assi n or allow a lien, security interest or other encumbrance to be placed uppon Mortagoes rights, title and interest in and to any Agreement or the amounts payable thereunder; or (d) terminate or cancel any Agreement except for the nonpayment of any sum or other material breach by the other party thereto. If Mortgagor receives at any time any written communication asserting a default by Mortgagor under an Agreement or purporting to terminate or cancel any Agreement, Mrtgagor shall E forward a copy of such communication (and any subsequent communications relating thereto to Lender. All such Aggreements and the amounts due to Mortgagor thereunder are hereby assigned to Lender as additionafsecurity for the Obligations. 7. COLLECTION OF INDEBTEDNESS FROM THIRD PARTY. Lender shall be entitled to notify or require Mortgagor to notify any third party (including, but not limited to, lessees, licensees, governmental authorities and insurance companies) to pay Lender any indebtedness or obligation owing to Mortgagor with respect to the Property (cumulatively "Indebtedness") whether or not a default exists under this Mortgage. Mortagor shall diligently collect the Indebtedness owing to Mortgagor from these third parties until the giving o) such notification. In the event that Mortgagor possesses or receives possession of any LPPA597C ® Harland Finanolal Soluflone, Inc. (1i31/06) (800) 83737883 11,10 Page 3 of 1 y, K"1898PG 12`66 instruments or other remittances with respect to the Indebtedness following the giving of such notification or if the instruments or other remittances constitute the prepayment of any indebtedness or the payment of any insurance or condemnation proceeds, Mortgagor shalt hold such instruments and other remittances in trust for Lender apart from its other property, endorse the instruments and other remittances to Lender, and immediately provide Lender with possession of the instruments and other remittances. Lender shall be entitled, but not required, to collect (by legal proceedings or otherwise), extend the time for payment, compromise, exchange or release any obligor or collateral, or otherwise settle any of the Indebtedness whether or not an Event of Default exists under this Mort page. Lender shall not be liable to Mortgagor for any action, error, mistake, omission or delay pertaining to the actions described in this paragraph or any damages resulting therefrom. Notwithstanding the foregoing, nothing herein shall cause Lender to be deemed a mortgagee-in-possession. 8. USE AND MAINTENANCE OF PROPERTY. Mortgagor shall take all actions and make any repairs needed to maintain the Property in good condition. Mortgagor shall not commit or permit any waste to be committed with respect to the Prop g erty. Mortagor shalt use the Property solely in compliance with applicable law an insurance policies. Mortgagor shall not make any alterations, additions or improvements to the Property without Lenders prior written consent. Without limiting the foregoing, all alterations, additions and improvements made to the Property shall be subject to the beneficial interest belonging to Lender, shall not be removed without Lender's prior written consent, and shall be made at Mortgagor's sole expense. 9. LOSS OR DAMAGE. Mortgagor shall bear the entire risk of any loss, theft, destruction or damage (cumulatively "Loss or Damage' to the Property or any portion thereof from any cause whatsoever. In the event of any Loss or Damage, Mortgagor shall, at the option of Lender, repair the affected Property to its previous condition or pay or cause to be paid to Lender the decrease in the fair market value of the affected Property. 10. INSURANCE. The Property will be kept insured for its full insurable value (replacement cost) against all hazards including loss or damage caused by flood, earthquake, tornado and fire, theft or other casualty to the extent required by Lender. Mortgagor may obtain insurance on the Property from such companies as are acceptable to Lender in its sole discretion The insurance policies shall require the insurance company to provide Lender with at least 30 days' written notice before such policies are altered or cancelled in any manner. The insurance policies shall be endorsed with a standard mortgage clause in favor of Lender and provide that no act or omission of Mortgaggor or any other erson shall affect the right of Lender to be aid the insurance proceeds pertaining to the fo" ss or damage oMe Property. In the event Mortgagor fails o acquire or maintain insurance, Lender (afterproviding nofice as may be required by law) maYY in its discretion procure appropriate insurance coverage upon the Property and the insurance cos{ shall be an advance payable and bearing interest as described in Paragraph 21 and secured hereby. Mortgagor shall furnish Lender with evidence of insurance indicating the required coverage. In order to protect its interests in the Property and rights under this Mortgage, Lender shall have tghe right to file, negotiate and settle claims under insurance policies, to cancel any policy, and to endorse and disburse any draft or negotiable instrument drawn by any Insurer. Lender's exercise of these rights shall be solely for Lender's benefit and not for Mortgagor's benefit. Lender is not an agent or fiduciary of Mortgagor. All such insurance policies shall be immediately assigned, pledged and delivered to Lender as further security for the Obligations. In the event of loss, Mort aggor shalt immediately give Lender written notice and Lender is authorized to make proof of loss. Mach insurance com1' any is directed to make payments directly to Lender instead of to Lender and Mortga r. Lender have the right, at its sole option to apply such monies toward the Obligations or tower t0he cost of rebuilding and restoring the Property. Any amounts may, at Lender's option, be applied in the inverse order of the due dates thereof. 11. ZONING AND PRIVATE COVENANTS. Mortgagor shall not initiate or consent to any change in the zoning provisions or private covenants affecting the use of the Property without Lender's prior written consent. If Mortgagors use of the Property becomes a nonconforming use under any zoning provision, Mortgagor shall not cause or permit such use to be discontinued or abandoned without the prior written consent of Lender. Mortgagor will immediately provide Lender with written notice of an changes to the zoning provisions or private covenants affecting the Property. Y proposed 12. CONDEMNATION. Mortgagor shall immediately provide Lender with written notice of any actual or threatened condemnation or eminent domain proceeding pertaining to the Property. AAll monies payable to Mortgagor from such condemnation or taking are hereby assigned to Lender and shall be apprred first to the payment of Lenders attorneys' fees, legal expenses and other costs (including appraisal fees) in connection with the condemnation or eminent domain proceedin s and then, at the option of Lender, to the payment of the Obligations or the restoration or repair of the Aroperty 13. LENDER'S RIGHT TO COMMENCE OR DEFEND LEGAL ACTIONS. Mortgagor shall immediately provide Lender with written notice of any actual or threatened action, suit, or other proceeding affecting the Pro errttyy. Lender shall have the right, in its own name or in Mortgagors name, to commence, intervene in, anddefend such actions, suits or other legal proceedings and to compromise or settle any claim or controversy pertaining thereto. Lenders exercise of these rights shall be solely for Lenders benefit and LPPAS97D ® Harland Flnanolal Solugons, Inc. (1t3l)W (800) 937.37883 z/ P 4p Page 4 of 12 81K1898PG1267 not for Mortgagor's benefit. Lender is not an agent or ficuciary of Mortga or. Lender shall not be liable to Mortgagor for any action, error mistake, omission or delay pertaining to the actions described in this paragraph or any damages resulting therefrom. 14. INDEMNIFICATION. Lender shall not assume or be responsible for the performance of any of Mortgagor's obligations with respect to the Property under any circumstances. Mortgagor shall immediately provide Lender with written notice of and indemniTy and hold Lender and its shareholders, directors, officers, employees and agents harmless from all claims, damages, liabilities (including attorneys fees and legal expenses), causes of action, actions suits and other legal proceedings (cumulatively "Claims") pertaining to the Property (including, but not limited to, those involving Hazardous Materials). Mortgagor, upon the request of Lender, shall hire legal counsel to defend Lender from such Claims, and pay the attorneys' fees, legal expenses and other costs incurred in connection therewith. In the alternative, Lender shall be entitled to employ its own legal counsel to defend such Claims at Mortga oes cost. Mortgagor's obligation to indemnify Lender under this paragraph shall survive the termination, release or foreclosure of-this Mortgage. 15. TAXES AND ASSESSMENTS. Mortgagor shall pay all taxes and assessments relating to Property when due and immediately provide Lender evidence of payment of same. Upon request of Lender, Mortgagor shall procure for Lender, at Mortgagor's expense, a real estate tax reportingg service throughout the term of this Mortgage. Upon the request of Lender, Mortgagor shall deposit with-Lender each month one-twelfth (1/12) o the estimated annual insurance premium, taxes and assessments pertaining to the Property. So long as there is no default, these amounts shall be applied to the payment of taxes, assessments and insurance as required on the Property. In the event of default, Lender shall have the right, at its sole option, to apply the funds so held to pay any taxes or assessments against the Obligations. Any funds applied may, at Lender's option, be applied in reverse order of the due date thereof. 16. INSPECTION OF PROPERTY, BOOKS, RECORDS AND REPORTS. Mortgagor shall allow Lender or its agents to examine and inspect the Property and examine, inspect and make copies of Mortgagor's books and records pertaining to the Property from time to time. Mortgagor shall provide any assistance required by Lender for these purposes. All of the siggnatures and information contained in Mortgagor's books and records shall be genuine, true, accurate anr7 complete in all respects. Mortgagor shall note the existence of Lender's beneficial interest in its books and records pertaining to the Property. Additionally, Mortgagor shall report, in a form satisfactory to Lender, such information as Lender may request regardin Mortgagor's financial condition or the Property. The information shall be for such periods, shalt refiecf Mortgagor's records at such time, and shall be rendered with such frequency as Lender may designate. All inormation furnished by Mortgagor to Lender shall be true, accurate and complete in all respects, and signed by Mortgagor if Lender requests. 17. ESTOPPEL CERTIFICATES. Within ten (10) days after any request by Lender, Mortgagor shall deliver to Lender, or any intended transferee of Lender' th s rights wi respect to the Obligations, a signed and acknowledged statement specifying: (a) the outstanding balance on the Obligations- and (b) whether Mortgagor possesses any claims, defenses, set-offs or counterclaims with respect to the Uligafions and, if so, the nature of such claims, defenses, set-offs or counterclaims. Mortagor will be conclusively bound by any representation that Lender may make to the intended transferee w?h respect to these matters in the event that Mortgagor fails to provide fhe requested statement in a timely manner. 18. DEFAULT. Morta or shall be in default under this Mortgage in the event that Mortgagor, Borrower or any guarantor of any??li1 tion: (a fails to pay any Obli ation to Lender when due; (b; fails to perform any obligation or breaches any warranty or covenant to Lender contained in this (Mort gage or any other present or future agreement; (c) destroys, loses or damages the Property in any material respect or subjects the Property to seizure, confiscation, or condemnation; d seeks to revoke, terminate or otherwise limit its liability under any guaranty to Lender; e dies, becomes legal) Incompetent is dissolved or terminated, becomes insolvent, makes an assignment for the bene4of creditors, (ails to pay debts as they become due, files a petition under the federal bankruptcy laws, has an involuntary petition in bankruptcy filed in which Mortgagor, Borrower or any guarantor is named, or has property taken under anyy writ or process of court; (f) allows goods to be used, transported or stored on the Property, the possession, transportation, or use of which, is illegal' R- allows any party other than Mort agor, Borrower or Guarantor to assume or undertake any ligation without the written consent of Lender; or Lender causes goodefaith, fort any itself believes thatgtheprospecl(t of payment or per orrmance' is impaired. 19. RIGHTS OF LENDER ON DEFAULT. If there is a default under this Mort age, Lender shall be entitled to exercise one or more of the following remedies without notice or demand (except as required by law): ab? to declare the Obligations immediately due and payable in full; to collect the outstanding Obligations with or without resorting to judicial process; to require Mortgagor to deliver and make available to Lender any personal property or Chattels constituting the Property at a place reasonably convenient to Mortgagor and Lender; LPPA697E ® Hariand Financial Solution", Inc. (1/31 (800) 937-37983 L4 Page 6 of 12 7s 81{ 1898PG 12.68 (d) to enter upon and take possession of the Property without applying for or obtaining the appointment of a receiver and, at Lender's option, to appoint a receiver wit out bond, without first bringing suit on the Obligations and without otherwise meeting any statutory conditions regarding receivers, it being intended that Lender shall have this contractual rg ht to appoint a receiver; (e) to employ a managing agent of the Property and 'let the same in the name of Lender or in the name of Mortgagor, and receive the rents, incomes, issues and profits of the Propertyand apply the same, after payment of all necessary charges and expenses, on account of the Obligations; to pay an sums in any form or manner deemed expedient by Lender to protect the security of this 0ortga a or to cure any default other than payment of interest or principal on the Obligations; (sg) to foreclose this Mortga e, bid for and acquire the Property or any part thereof and, in lieu of a cash purchase, credit upon the amounts owed Mortgagor the net sales price after deducting therefrom the expenses of the sale and the costs of the action and any other sums which Lender is authorized to deduct under this i) Mortgagge, to foreclose this Mortgage at its option, subject to the rights of any tenants of the property, and tF?e allure to make any tenants defendants to such proceedings and to foreclose their rights will not be asserted by Mortgagor as a defense to any proceedings instituted by Lender to collect the amounts secured hereby or any deficiency remaining unpaid after the sale of the properly Further, it is expressly understood and agreed by Mortgagor that nothing herein contained shall prevent Lender from asserting in any proceeding disputing the amount of the deficiency or the sufficiency of any bid at such sale, that any tenancies adversely affect the value of the Property Q) to set-off Mortgagor's Obligations against any amounts owed Mortgagor by Lender including, but not limited to, monies, instruments, and deposit accounts maintained with Lender or any currently existing or future affiliate of Lender; and (k) to exercise all other rights available to Lender under any other written agreement or applicable law. Lender's rights are cumulative and may be exercised together, separately, and in any order. In the event that Lender institutes an action seeking the recovery of any of the Property by wax of a prejudgment remedy in an action against Mortgagor, Mortgagor waives the posting of any bond which might otherwise be required. L art th ender or Lender's designee may purchase the Property at any sale. The Property or any pereof may be sold in one parcel, or in such parcels, manner or order as Lender in its sole discretion may elect, and one or more exercises of the power herein granted shall not extinguish or exhaust the power unless the entire Property is sold or the Obligations are paid in full. 20. SECURITY INTEREST UNDER THE UNIFORM COMMERCIAL CODE. This Mortgage shall be considered a financing statement and a fixture filingg pursuant to the provisions of the Uniform Commercial Code (as adopted by the state where the Properly is located) covering fixtures, chattels and articles of personal property now owned or hereafter attached to or to be used in connection with the Property together with any and all replacements thereof and additions thereto (the 'Chattels") and Mortgagor hereby grants Lender a security interest in such Chattels. The debtor is the Mortgagor described above. The secured parry is the Lender described above. Upon demand, Mortgagor shall make execute and deliver such secunty agreements (as such term is defined in said Uniform Commercial Code) as Lender at any time may deem necessary or proper or require to grant to Lender a perfected security interest in the Chattels and upon Mortgagors failure to do so, Lender is authorized to sign any such a reement as the agent of Mortgagor. Mortgagor hereby authorizes Lender to file financing statements (as such term is defined in said Uniform Commercial Code) with respect to the Chattels, at any time, without the signature of Mortgagor. Mortgagor will, however, at any time upon request of Lender, sign such financing statements. Mortgagor will ay all filing fees for the filin of such f thereof at the times requiredpin the opinion of Lender, by said Uniform Commercial Code "f the for the of this Mortgage is subject to any security agreement covering the Chattels, then in the event of any default under this Mortgage, all the right, title and interest of Mortgagor in and to any and all of the Chattels is hereby assigned to Lender, together with the benefit of any deposits or payments now or hereafter made thereof by mortgagor or the predecessors or successors in title of Mortgagor in the Property. 21. REIMBURSEMENT OF AMOUNTS EXPENDED BY LENDER. Lender, at Lender's option, may expend funds to perform any act required to be taken by Mortgagor or to exercise any right or remedy of Lender under this Mortgage (including but not limited to attorney's fees, legal ex enses, payment of taxes, assessments, insurance premiums, funds for protection, preservation and maintenance of the Property or of the lien of this Mortgage or otherwise, expenses incurred by Lender by reason of default by Mortgagor or advances made under a construction loan to enable completion of the improvements for which the construction loan was originally made). Upon demand, Mortgagor shall immediately reimburse Lender for all such amounts expended b Lender together with interest thereon at the lower of the highest rate described in any Obligation or the highest rate allowed by law from the date of payment until the date of reimbursement. These sums shall be included in the definition of Obligations herein and shall be secured by the beneficial interest granted herein. If the Obligations are aid after the beginning of publication of notice of sale, as herein provided, or in the event Lender shall, al its sole option, permit Mortgagor to pay any part of the Obligations after the beginning of publication of notice of sale, as herein provided, then, Mortgagor shall pay on demand all expenses incurred by the Lender in connection with said publication, including reasonable attorneys' fees to the attorneys for the Lender, and this Mortgage shall be security for all such expenses and fees. ,? LPPAS97F ® Harland Financial Solutions, Inc. (1/19/04) (900) 937-3799 Page 9 of 12 I1P_ 410 NA1898PG 1269 22. APPLICATION OF PAYMENTS. All payments made by or on behalf of Mortgagor ma be ap lied against the amounts paid by Lender (including attorneys' fees and legal expenses) in connection with the exercise of its rights or remedies described in this Mortgage and then to the payment of the remaining Obligations in whatever order Lender chooses. 23. LENDER'S AUTHORITY TO PROTECT ITS INTERESTS. Mortgagor authorizes Lender to take whatever action is reasonable or appropriate to protect Lender's interesTa in the Property and rights under this Mortgage. Lender may but shall notbe required to, endorse Mortgagor's name on any instrument or other document pertainin to the Obligations or the Mortgage and to? perform any action or execute any document required to beaken or executed by Mortgagor under this Mortgage. Lender's performance of such action or execution of such document shall not relieve Mortgagor from any obligation or cure an default under this Mortgage. Lender's exercise of these rights shalt be solely for Lender's benefit and noyt for Mortgagor's benefit. Lender is not an agent or fiduciary of Mortgagor. 24. SUBROGATIONOF LENDER. Lender shall be subrogated to the rights of the holder of any previous lien, security interest or encumbrance discharged with funds advanced by Lender regardless of whether these liens, security interests or other encumbrances have been released of record. 25. COLLECTION COSTS. To the extent permitted by law, Mortgagor a rees to ay Lender's reasonable fees and costs, including, but not limited to, att orneys commission for collec!on, fees and costs of attorneys and other agents (including without limitation paralegals, clerks and consultants) whether or not such attorney or agent is an empbyee of Lender, which are incurred by Lender in collec (n any amount due or enforcing any right or remedy under this Mortgage, whether or not suit is brought, including, but not limited to, all fees and costs incurred on appeal, in bankruptcy, and for post-judgment collection actions. 28. PARTIAL RELEASE. Lender may release its interest in a portion of the Property by executing and recording one or more partial releases without affecting the lien or priority of this Mortgage or Lender's interest in the remaining ortion of the Property. Nothing. herein shall be deemed to obli ate Lender to release any of its interesfin the Prop (exce t as required under Paragraph 35), nor s?iall Lender be obligated to release any part of the roperty if Mortaaaor is in default under thre RA^a;4 --- zi. MODIFICATION AND WAIVER. The modification or waiver of anYY of Mortgagor's Obligations or Lender's rights under this Mortgage must be contained in a writing signed "by Lender. Lender may perform any of Borrower's or Mortgagors Obligg?ations, delay or fail to exercise any of its rights or accept payments from Mortgagor or anyone other than Mortgagor whout causing a waiver of those Obligations r hts. A waiver on one occasion shall not constitute a waiver on any other occasion. Mortgagor's Obligations under this Mortgage shall not be affected if Lender amends compromises, exchanges, fails to exercise, impairs or releases any of the Obligations belonging to any Wortgagor, Borrower or third ppar? or an of its rights against any Mortgagor, Borrower or third party or any of the Property. Lender's failure to insis? upon strict performance of any of the Obligations shall not be deemed a waiver, and Lender shall have the right at any time thereafter to insist upon strict performance. 28. SUCCESSORS AND ASSIGNS. This Mortgage shall be binding upon and inure to the benefit of Mortgagor and Lender and their respective successors, assigns, trustees, receivers, administrators, personal representatives, legatees and devisees. 29. NOTICES. Except as o under this Mortgage shall be or such other address as the and sent by first class mail, p notice is sent or when recei rr ursuant to d, o Lender at to have been r to at communication to be provided sses described in this Mortgage time. Any such notice so given ,rlier of three (3) days after such ming iven. A notice given by or certified mail, return receipt address. Such notice shall be ally received at such address. iscretion, to give notice, in form of a previously recorded' mortgage 'which is "a lien o-I he ? Lit ` in or, n or bdery this Mortgage t t hi subordinate further advances by such mortgage holder. Property , among other thi ngs, to 30. SEVERABILITY. Whenever possible, each provision of this Mortgage shall be interpreted so as to be effective and valid under applicable state law. If any provision of tlils Mort age violates the law or is unenforceable, the rest of the Mortgage shall continue to be valid and enforced le. 31. APPLICABLELAW. This Mortgage shall be governed by the laws of the state where the Property is located. Unless applicable law provides otherwise Mortgagor consents to the jurisdiction and venue of any court selected-by Lender, in its sole discretion, located in that state. 32. OPEN-END MORTGAGE. This Mortgage in 42 Pa.C.S.A.§8143 et seq. This Mortgage note or other Obligations described in para Mortgagor on the date hereof and hereafter s secures all unpaid balances of advances mad insurance premiums or costs incurred for the expenses incurred by Lender by reason of d incurred by Lender to protect and preserve the LPPA6970 ® Harland Flnanolal Solutions, Ino. (1119/04) (900) 937-3799 wired b law, any notice or other d sent o the parties at the addre des!gnate in writing from time to lid, shall be deemed given the ei rerson to whom such notice is 43 shall ba nivpn by ronietcrn.4 Is and shall be deemed an "Open-End Mortgage" as defined secures future advances made pursuant to the promissory raph 1 of this Mortgage. All advances made by Lender to gtta I relate back to the date on the Mortgage. The Mortgage e by Lender for taxes, assessments, maintenance gcharges, elaul b i Bor ower under therMorrtgage fors anyootFieg cost Property, all as described in 42 Pa.C.S.AP s8144. Page 7 of 12 .44' B?i898PGIZ70 It Mortgagor sends a written notice to Lender which purports to limit the indebtedness secured by the Mortgagge and to release the obligations of Lender to make any additional advances to Mortgagor, such notice I&I be ineffective as to any future advances made: (a) to enable completion of any improvements to the Property; (b)) to pay taxes, assessments, maintenance charges and insurance premiums; (c) for costs incurred for As protection of the Property or the lien of the Mortgage; d ()for expenses incurred by Lender by reason of a default by Mortgagor of any of the Obligations scribed in Paragraph 1 of this Mortgage or any other instrument or document executed and delivered in connection therewith; and (e) for any other costs incurred by Lender to protect or preserve the Property. It is the intention of the parties hereto that any such advance made by Lender after such notice by Mortgagor shall be secured by the lien of the Mortgage on the Property. The receipt by Lender of any such notice from Mortgagor shall constitute a default hereunder, whether or not such notice is sent pursuant to the provisions of 42 Ida. C.S.A.§8143(B) or (C) and whether or not such notice is effected thereunder. 33. NO THIRD-PARTY RIGHTS. No person is or shall be a third- a? beneficia of an p ry Y provision of the Mortgage. All provisions of the Mort age in favor of Lender are intended solely for the benefit of Lender, and no third arty shall be entitled o assume or expect that Lender will not waive or consent to the modification of any provision of the Mortgage, in Lender's sole discretion. 34. PRESERVATION OF LIABILITY AND PRIORITY. Without affecting the liability of Borrower Mortgagor, or any guarantor of the Obligations, or of anyy other person (except a person expressly releases) in writing) for the payment and performance of the Obrigations, and without affecting the rights of Lender with respect to any Property not expressly released In writing, and without impairing in any way the priority of this Mortgage over the interests of any person acquired or first evidenced by recordin subsequent to the recording of this Mortgage, Lender may, either before or after the maturity of the 90bligations and without notice or consent: release any person liable for payment or performance of all or any part of the Obligations; make any agreement altering the terms of payment or performance of all or any part of the Obliggations; exercise or refrain from exercising or waive any right or remedy that Lender may have under the IDlortgage; accept additional security of any kind for any of tine Obligations; or release or otherwise deal with any real or personal property securing the Obligations' Any person acquiring or recording evidence of any interest of any nature in the Property shall be deemed, byy acquiring such interest or recording any evidence thereof, to have consented to all or any such actions by Lender. 35. DEFEASANCE. This Instrument is given on the express condition that if Mortgagor pays to Lender all sums secured by this Mortgage as provided in the Note, Mortgage and other loan documents and Mort gag or pertorms and complies with all agreements and conditions contained in said documents then this ortgage and the estate hereby granted shall cease and become void. Lender will execute and deliver to Mortgagor those documents that may be required to release this Mortgage of record. Mortgagor shall be responsible to pay any costs of recordation. 36. WAIVER OF HOMESTEAD. Mortgagor hereby waives all homestead exemptions in the Property to which Mortgagor would otherwise be entitled under any applicable law. 37. MISCELLANEOUS. Mortgagor and Lender agree that time is of the essence. Mortga or waives presentment, demand for payment, notice of dishonor and protest all procedural errors, defects and imperfections in any proceeding instituted by Lender under any Note, this Mortgage or other loan documents and any rights to send a written notice pursuant to 42 Pa. Cons. Stat. Ann. fi 8143(c). All references to Mortgagor in this Mortgage shall include all ppersons signing below. If there is more than one Mortgagor, their Obligations shall be joint and several. This Mortgage represents the complete integrated understanding between Mortgagor and Lender pertaining to the terms and conditions hereof. 38. JURY TRIAL WAIVER. MORTGAGOR HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY CIVIL ACTION ARISING OUT OF, OR BASED UPON, THIS MORTGAGE. 39. ADDITIONAL TERMS: LPPAS97H ® Harland Financial 3oluUona, Ino. (1/31106) (bop) 997.3799 Page 6 of 12 A_r/-P u. 1_8 9 8 PG 127 t B WARNING: READ BEFORE SIGNING - YOU ARE WAIVING IMPORTANT RIGHTS ® IF CHECKED, CONFESSION OF JUDGMENT IN EJECTMENT. MORTGAGOR HEREBY AUTHORIZES AND EMPOWERS ANY ATTORNEY OF ANY COURT OF RECORD IN THE COMMONWEALTH OF PENNSYLVANIA OR ELSEWHERE, TO APPEAR AS ATTORNEY FOR MORTGAGOR, AND ALL PERSONS CLAIMING UNDER OR THROUGH MORTGAGOR, AND TO CONFESS JUDGMENT AND TO SIGN AN AGREEMENT FOR ENTERING AN AMICABLE ACTION IN EJECTMENT FOR POSSESSION OF THE PROPERTY AGAINST SUCH PERSONS IN FAVOR OF LENDER. SUCH PROCEEDINGS MAY BE BROUGHT BEFORE OR AFTER THE INSTITUTION OF PROCEEDINGSTO FORECLOSETHIS MORTGAGEOR TO ENFORCETHE OBLIGATIONS,OR AFTERA SHERIFFSSALE OR JUDICIAL SALE OR OTHER FORECLOSURESALE OF THE PROPERTYIN WHICH LENDER IS THE SUCCESSFULBIDDER. THIS MORTGAGE,OR A COPY VERIFIEDBY AFFIDAVIT,WILL BE A SUFFICIENT WARRANT AND A WRIT OF POSSESSION MAY IMMEDIATELY ISSUE FOR POSSESSIONOF THE PROPERTY,WITHOUTANY PRIORWRITOR PROCEEDINGAND WITHOUTANY STAY OF EXECUTION. LENDER SHALL HAVE THE RIGHT TO BRING ONE OR MORE AMICABLE ACTIONS,AS PROVIDEDABOVE, FORTHE SAME, OR ANY SUBSEQUENTDEFAULT,REGARDLESSDF WHETHER ANY PRIOR ACTION WAS DISCONTINUED OR POSSESSION OF THE PROPERTY REMAINED IN OR WAS RESTORED TO MORTGAGOR. THE AUTHORIZATION TO OBTAIN POSSESSION AND CONFESS JUDGMENT IS AN ESSENTIAL PART OF THE REMEDIES FOR ENFORCEMENTOF THIS MORTGAGEAND THE OBLIGATIONSAND SHALL SURVIVEANY EXECUTION SALE TO LENDER. NO PROVISIONOF THIS PARAGRAPHSHALL BE CONSTRUEDAS A WAIVEROF MORTGAGOR'S RIGHT TO ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO THE EXECUTION OF THE CONFESSED JUDGMENT. LPPAS971 0 Harland Financlal Solutions, Inc. (1/31 (900) 987-3799 Page 9 of 12 ?" ? `! 8 i898?G] 272 MORTGAGORACKNOWLEDGESTHAT MORTGAGORHAS READ, UNDERSTANDS,AND AGREES TO THE TERMSAND CONDITIONSOF THIS MORTGAGE,AND ACKNOWLEDGESRECEIPTOF AN EXACT COPY OF SAME. IN WITNESSWHEREOF,Mortgagor has caused this instrument to be executed as a sealed instrument this 10th day of February 2005 MORTGAGOR:LOrrie C,Peters C P.I MORTGAGOR: MORTGAGOR: MORTGAGOR: MORTGAGOR: MORTGAGOR: MORTGAGOR: LPPAS97J ® Harland Finanolal Solutlons, Ino. (1/31/08) (800) 937-3799 Page 10 of 12 ov, 1.89Bof.12 3 ?4?8'tKit, . iieeeo NotwU Sod ' . rra Vc A R. Berx w Notary Pabk QRy Of Harrisburg, Daepfafn Phi nber, Pg yR Aai,rd .. rw ku- COMMONWEALTF OF PENNSYLVANIA"P'''I COUNTY OF S'Sr•,,?a e Pvr OFCOfs1? :.„chi ,: On this, the ? day of 6rz r W ekotai-- 01(L in n MKS for the Commonwealth andCounty afor aid, personally p?r ' b fo known to me (or satisfactorily proven )4o be the person whose name is subscribed to the within instrument and acknowledged that he/she executed the same for the purposes herein contained. WITNESSmy hand and seal he day and year aforesaid. My Commission Expires: G 7( ry Public COMMONWEALTH OF PENNSYLVANINS COUNTY OF On the day of in and for the Commonwealth and County of before me, the subscriber, a Notary Public aforesaid, personally appeared who acknowledged himself/herself to be a/the being g authorized to do so, executed the foregoing ,and that he/she, as such officer, b the name of the instrument for the purposed therein contained by signing by himself/herself as such officer and desired that the same might be recorded as such. WITNESSmy hand and seal the day and year aforesaid. My Commission Expires- Notary Public CERTIFICATE OF RESIDENCE I, ( w ? do hereby certify that the correct address of the within-named Len er is15 North 3rd Street Harrisburg, PA 17101 Witness my hand this day of 7G2?k , Agent of Lender LPPAS97K ® Harland Flnanolel Soluflone, Ino. (IMMS) (800) 987-3799 Page 11 of 12 rut '1898PG 12 7 4 30 8mlyn Lane, Machanicsbur , :,. a...:..r..::..... eriaiici uaty See Attached Legal Description Parcel Identification No. I Certify this to be recorded Tn Cumberland County PA { Recorder of Deeds LPPA697L ® Harland Flnanolal 3olu lone, Inc. (1)31/o6) (900) 9973788 Pape 12 of 1 OK, 898 127'5 i]ER aQOUN?Yra: :??ERLANq ?6 OCT 1 A? 8 THIS MADE THE BETWEEN AND Parcel No. #42_27-1890-177 DEEDI 25th day of September in (2002) the year two thousand two 8. 11ICKAEL PETERS and LORRIE C. PETERS, also known as LORRIE PETERS, his wife, of Upper Allen Township, Cumberland County, Pennsylvania, Grantors, 8. MICHAEL PETERS and LORRSE C. Wife, of Upper Allen PSTBR9, hfs Pennsylvania, Township, Cumberland County, WXTNZGS ETH, that in consideration of the s Grantees.- (51.00), in hand paid, the receipt whereof Is herab E DOLLAR the said Grantors do hereby grant and coees, their heirs and assigns; nvey to the said acknowledged ILL TSaT CMUTAix piece, parcel and lot of land with .improvements thereon situate in Upper Allen Township, Cumberland w County, Pennsylvania, being Strohm as Lot 61 on the Final 9ubdIvis,ion Plan for Ligdenwood Phase if axed being more folly bound and described as follows, to wit: BEGINNING at a point on the west line of en being the southeast Corner of Lot 62; thence cont,iLane said nnuing along o?the l line of RmXyn Lane on a line curving to the right having a rdius at 700.00 and an arc length 146.78 feet said arc being a chord of south 09 degrees, 00 minutes, 44 seconds west a distance of 146.51 feet to a point the northeast ear e along the north line of n r of Lot 6 e seconds west a distance aft174.87rth 74 degrees, 5B 0% thence of Lot 66 t 9 feet to a minutes, 50 f hence aloe the east line of Lotp66 ?oxn the east line 03 32 minutes, 55 seconds East a distance of 109.3,1 fee to & poins, the southwest corner of Lot 62; thence along the south line of Lo 62 South 86 degrees, 59 minutes, 41 seconds East a distance o 185.34 feet to a t point, the place of BE(;1xMxxG. f CONTAiBING 23,245 Square Feet of land. BRING LOT NO. 61, Final subdivision Plan of Phase dated February 3, 1997, last revised Jul 1, Lxnder t office of the Recorder of Deeds of Cumberland C,oun,tY. Pennsylvania, n the in Plan Book 75, page 29. , BOOK 253 Nr! U16 BK- 1898PG#278 1....I.,- 1 VVJ f YJ/YY (' ala RAVING THERRON ERECTED a single family residence and other Penn vea ylvani a.known and numbered 30 Emlyn Lane, Xechanicsburq, ALSO BRING the property known, named Declaration, referred. to below as 'Li and identified in the Allen ? ndenwood located in Upper Township., Cumberland county, Pennsylvania, which has therefore been submitted to the provisions of the Pennsylvania Dniform Planned CoimMUn.ity Act, 68 pA C.S.A. Sections 5101 et seq., by the recording in the office of the Cumberland County, Pennsylvania, the D clarationffor Deeds of Lindenwood, "Declaration", dated August 28, 1997, recorded ,Au 28 Misc. Book 555, page 806, being described in Sectiont2.2,Of9thein Declaration and shown (and described) in Exhibit n of the Declaration. UNDER '"D SURaRCT, to Declaration for Lindenwood, a flexible Residential Planned Community recorded in Miscellaneous Book 555, Page 806 and restrictions, reservations, conditions and way as shown on the Final Subdivision Plan of Phase 1 Lindenvoof_ as recorded in plan Book 75, Page 29, . andenlovod 8EXXG THE SAME PREMISES Which E. XXCHAEL PETERS and LORRIE PETERS, husband and wife, by deed dated January 7, 1 recorded January 29, 1999 in the County of Cumerland9otiice of Recorder of Deeds, in Deed Book 193, Page 416, conveyed E. KXCSABY, PETERS, a married person (erroneously referred to as "individually" in prior deed). THIS IS A TRAA6rZX FROM HUSBAND 1?PD wxrz TO $V9SAND AND WIFE AXD IS ITIHBREFORE zx.RM 'T mom PjkyxtwT OF REALTY TR1lN1SF8R TAX _ AND the said Grantors hereby covenant and agree that t warrant specially the property hereby conveyed. hey will IN NITHFSS WHEREOF, said Grantors have hereunto set their hands and seals the day and year first above written. Signed, Sealed and Delivered in the presence of AA?c E ; MICHAEL P TE a {SEAT, ) 1 C t LORRIE C PETERS S?,) LORRZE E'ETERS (98AL) 1898PG 1277 BOOK 253 PAr AU7 ILV 11 4J IY•JJ 111VIIt 1111• JLI• •L.L RML. .1 CO MOMM'ALTH OF PMMSYLVAMA COtRM OF Ctn4HSRLAM r 111,.J•IY I DU 1 VOJ 1 YY/YY 1 JIY 5S. On this, tbeo?egay of September 2002, before me, the undersigned officer, personally appeared S. MICHAEL PETERS and LORRIR C- PETERS, also ]mown as LORRIB PETERS, husband and wife, known to me (or satisfactorily proven) to be the persons whose names are subscribed to the within instrument, and acknowledged that they executed the same for the purposes therein contained- VW W-rMM]SS WSEREOP, I hereunto not my hand and official WMAM WA KATNIM & WMT, HAW hMa A fthmk"V solo. CMAO1 0A o¦" My Csw ddm WW AMON A A0 Notary Public o my commission Expires: I do hereby certify that the precise residence and cola post office address of the,within named grantee is 30 Smlyn Mechaniasburg, Pennsylvania 17055. /? SeptemberZ-, 2002 ?" Andrew C. Sheel.y, sscr." Attorney for Grantees PLEASE RETURN TO: Andrew C. Sheely, Esquire P.O. Box 95 127 South Xarket street xechanicsburg, PAI 17055 COMONWEALTH OF PENNSYLVANIA ss_ COUNTY OF CU1Vl$RjM RECORM on this day of 2002, in the Recorder's office of the said County, in Deed Book , Page Given under vy hand and the seal of the said office, the date above written. , corder I CCrtt IS 'o E C C r, cC? In CuTnbcrtand County PA Boom 25. pArr4V.8 Rf'cordcr of Deed$ 189BP 1278 June 6, 2006 E. Michael Peters Lorrie Peters 30 Emlyn Lane Mechanicsburg, PA 17055 ACT 91 NOTICE TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE This is an official notice that the morta on Your home is in defauk and the lender intends to foreclose. Specific information about the nature of the default is provided in the attached pages. The HOMEOWNER'S MORTGAGE ASSISTANCE PROGRAM MUM) my be able to help to save your home. This Notice explains how the Drogram works To see if HEMAP can help you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 30 DAYS OF THE DATE OF THIS NOTICE Take this Notice with you when you meet with the Counseling Amu. The name address and flhone number of Consumer Credit Commlins Agencies serving your County are fisted at the end of this Notice If you have as questions, You may can the P panne Housing Finance Aged toll free at 1-800-342-2397. (Persons with impaired hearing can can (717) 780- 18"9. This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer. LA NOTIFICACION EN ADJUNTO ES DE SUMA IMPORTANCIA, PUES AFECTA SU DERECHO A CONTINUAR VIVENDO EN SU CASA- SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIICACION OBENGA UNA TRADUCCION INMEDITAMENTE LLAMANDO ESTA AGENCIA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO 11ROMEOWNE V S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. STATEMENTS OF POLICY HOMEOWNER'S NAME(S): E. Michael & Lorrie Peters PROPERTY ADDRESS: 30 Emlyn Lane, Mechanicsburg, Cumberland County, PA 17055 LOAN ACCT. NO.: 109120964,109114201,109114200 ORIGINAL LENDERS: Community Banks CURRENT LENDER/SERVICER: Community Banks HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE WHICH CAN SAVE YOUR HOME FROM FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE ACT OF 1983 (THE "ACT"), YOU MAY BE ELIGIBLE FOR EMERGENCY MORTGAGE ASSISTANCE: * IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL, * IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YOUR MORTGAGE PAYMENTS, AND * IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURE - Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice. During that time you must arrange and attend a "face-to-face" meeting with one of the consumer credit counseling agencies listed at the end of the Notice. THIS MEETING MUST OCCUR WMHN THE NEXT (30) DAYS. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE YOU MUST BRING YOUR MORTGAGE UP TO DATE THE PART OF THIS NOTICE CALLED "HOW TO CURE YOUR MORTGAGE DEFAULT" EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. CONSUMER CREDIT COUNSELING AGENCIES - If you meet with one of the consumer credit counseling agencies listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names_ addresses and telephone numbers of designated consumer credit m ling agencies for the county in which the pmRca is located are set forth at the end of this -Notice, It is only necessary to schedule one face-to-face meeting. Advise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE - Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default.) If you have tried and are unable to resolve this problem with the lender, you have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program. To do so, you must fill out, sign and file a completed Homeowner's Emergency Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. Your application MUST be filed or postmarked within thirty (30) days of your face-to-face meeting. YOU MUST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO SO OR IF YOU DO NOT FOLLOW THE OTHER TIME PERIODS SET FORTH IN THIS LETTER, FORECLOSURE MAY PROCEED AGAINST YOUR HOME IMMEDIATELY AND YOUR APPLICATION FOR MORTGAGE ASSISTANCE WILL BE DENIED. AGENCY ACTION - Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETTTION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEPT. (If you have filed bankru you can still a 1 for Emer en Mortgage Assistance.) HOW TO CURE YOUR MORTGAGE DEFAULT Bring it u to o datg? NATURE OF THE DEFAULT - The MORTGAGE debt held by the above lender on your property located at: 30 Emlyn Lane, Mechanicsburg, Cumberland County, PA 17055 IS SERIOUSLY IN DEFAULT because: A. YOU HAVE NOT MADE MONTHLY PAYMENTS for the following months and the following amounts are now past due: LOAN # 109120964 November 8, 2005 December 8, 2005 January 8, 2006 February 8, 2006 March 8, 2006 April 8, 2006 $ 80.89 129.58 133.60 133.96 128.32 136.12 May 8, 2006 136.17 TOTAL FOR LOAN# 109120964 $878.64 LOAN #109114200 April 10, 2006 $ 436.42 May 10, 2006 438,22 June 10, 2006 407.23 TOTAL DUE LOAN #1091145200 $1,281.87 LOAN #109114201 April 10, 2006 $446.86 May 10, 2006 446.86 June 10, 2006 396.86 TOTAL DUE LOAN # 109114201 $1,290.58 B. YOU HAVE FAILED TO TAKE THE FOLLOWING ACTION: HOW TO CURE THE DEFAULT - You may cure the default within THIRTY (30) DAYS of the date of this notice BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS $39451.911, PLUS ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be mad either by cash. cashier's check certified check or money order made p8vable and sent to: COMMUNITY BANKS ATTN: COLLECTIONS DEPT. PO BOX233 55 WETZEL DRIVE HANOVER, PA 17331 You can cure any other default by taking the following action within THIRTY (30) DAYS of the date of this letter: IF YOU DO NOT IRE 'I'mo DEFAULT - If you do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to a erci_ its ri ghts to accel-'- " - debt. . This means that the entire outstanding balance of this debt will be considered due immediately and you may lose the chance to pay the mortgage in monthly installments. If full payment of the total amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorneys to start legal action to foreclose upon your mortvzaed mmn--tv IF THE MORTGAGE IS FORECLOSED UPON The mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attorneys, but you cure the delinquency before the lender begins legal proceedings against you, you will still be required to pay the reasonable attomey's fees that were actually incurred, up to $50.00. However, if legal proceedings are started against you, you will have to pay all reasonable attorney's fees actually incurred by the lender even if they exceed $50.00. Any attomey's fees will be added to the amount you owe the lender, which may also include other reasonable costs. If you cure the default within the THIRTY (30) DAY Harrod, you will not be required to pay attorney's fees. OTHER LENDER REMEDIES -= THE LENDER MAY ALSO SUE YOU PERSONALLY FOR THE UNPAID PRINCIPAL BALANCE AND ALL OTTER SUMS DUE UNDER THE MORTGAGE. RIGHT TO CURE THE DEFAULT PRIOR TO SHERIFF'S SALE - If you have not cured the default within the THIRTY (30) DAY period and foreclosure proceedings have begun, you still have the right to cure the default and prevent the sale at anytime up to one how before the Sheriffs Sale You may do so by Having the total amount then past due, plus any late or other charges then due reasonable attorney's fees and costs connected with the foreclosure sale and arty other costs connected with the Sheriffs Sale as specified in writing by the lender and by performing M other re-wrements under the mort g? . Coring your default in the manner set forth in this notice will restore your mortgage to the same position as if you had never defaulted EARLIEST POSSIBLE SHERIFF'S SALE DATE It is estimated that the earliest date that such a Sheriffs sale of the mortgaged property could be held would be approximately two months from the date of this Notice. A notice of the actual date of the Sheriffs Sale will be sent to you before the sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDER: Community Banks P.O. Box 233 55 Wetzel Drive Hanover, PA 17331 1-866-286-0534 - Toll Free (717) 646-3533 - Fax Number Contact Person: Mrs. Georgia A Bear, Vice President, Collections EFFECT OF SHERIFF'S SALE - You should realize that a Sheriffs Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriffs Sale, a lawsuit to remove you and your fiunishings and other belongings could be started by the lender at any time. ASSUMPTION OF MORTGAGE - You may or X may not sell or transfer your home to a buyer or transferee who will assume the mortgage debt, provided that all the outstanding payments, charges and attorney's fees and costs are paid prior to or at the sale and that the other requirements of the mortgage are satisfied. YOU MAY ALSO HAVE THE RIGHT: * TO SELL THE PROPERTY TO OBTAIN MONTY TO PAY OFF THE MORTGAGE DEBT OR TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT. * TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF. * TO HAVE THE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE THAN THREE TIMES IN ANY CALENDAR YEAR) * TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS. * TO ASSERT ANY OTHER DEFENSE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER- * TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. CONSUMER CREDIT COUNSELING AGENCIES SERVING YOUR COUNTY CCCS of Western Pennsylvania, Inc. 2000 Linglestown Road Harrisburg, PA 17102 (717) 541-1757 FAX (717) 541-4670 Community Action Commision of the Capital Region 1514 Derry Street Harrisburg, PA 17104 (717) 232-9757 FAX (717) 234-2227 Urban LeaTue of Metropolitan Harrisburg 2107 N. 6 Street Harrisburg, PA 17110 (717) 234-5925 FAX (234-9459 Financial Counseling Services of Franklin Co. 31 West 3'd St. Waynesboro, PA 17268 (717) 762-3285 YWCA of Carlisle Adams County Housing Authority 301 G Street 139-143 Carlisle St. Carlisle, PA 17013 Gettysburg, PA 17325 (717) 243-3818 (717) 334-1518 FAX (717) 731-9589 FAX (717) 334-8326 CERTIFIED MAIL #: 70031680 0007 6124 8928-E. Michael 70031680 0007 6124 8935-1,orrie Also mailed via First Class Mail: 6106106 4 Postal eo CERTIFIED MAIL RECEIPT '. ru Q' (Domestic Mail Only; No Insurance Coverage Provided) mom= UFFICIAL. USE a 4 $ O o Fea aR Q P , ,33r iC3 o a 7-1 Z .0 Total Poaap. & Feaa b Q :o ' 0 ._.....a........... --- - U.S. Postal Service, m CERTIFIED MAIL RECEIPT ;Q' • . Only; No Insu 'Co -rance COveragO Provided) rLj C)FFrGrAL. USE Porto. i o ce?naod Fee . (EndorasmentReOpeq„ l,? ' ? t p"mw N 0. .1 1 a oeMwyM Total PONVO 4 Fees $ n 4 A11d1r1 -'r ?•-•? ! CPC X00 m 5 .. (D 4? j m R to O ? cn Cl) D (D ???? ?- r co ? o zza- ?z =?MTC ?o N >w' b-+ c; ?:. -4 ?l r C n ,O 09Zai ac &'r .? r? x, M-1 mSr- C2O ., cf)1M=0 Y 0 iM0 `..' . 40 Oa??q "Mme O S N AT Q r I? 4 0 1i) 4). 4) (x) 5? cv, 46, wo rn N ST W M m 'm N Cl) n'll;,? zza- Q coo?z Ins Zg=?? n . -e? oTCOm 1 s QUID i Y %T9PK0 ,•? 30 Zm r> Oc2mzco, m T O 0 ?i 2 T I N Q HN aCW ?.> W W -.) O O W L-j Ir - - m C3 O 0 Er L-j ru ? . ? ru . m C?'• 3 Na C w:J !1 `- CIV 7 f d ? SHERIFF'S RETURN - REGULAR CASE NO: 2007-02868 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND COMMUNITYBANKS VS PETERS LORRIE ET AL BRIAN BARRICK , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon PETERS LORRIE the DEFENDANT at 2014:00 HOURS, on the 14th day of May 2007 at 30 EMLYN LANE MECHANICSBURG, PA 17055 by handing to E MICHAEL PETERS, HUSBAND a true and attested copy of COMPLAINT - MORT FORE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing Service Postage Surcharge Sworn and Subscibed to before me this of So Answers: 18.00 11.52 .41 10.00 R. Thomas Kline .00 39.93 05/16/2007 MCNEES WALLACE NURICF-- By: 10 -0 A; r, 0? day Deputy Sher A. D. SHERIFF'S RETURN - REGULAR N .. CASE NO: 2007-02868 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND COMMUNITYBANKS VS PETERS LORRIE ET AL BRIAN BARRICK , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon PETERS E MICHAEL the DEFENDANT , at 2014:00 HOURS, on the 14th day of May 2007 at 30 EMLYN LANE MECHANICSBURG, PA 17055 E MICHAEL PETERS a true and attested copy of COMPLAINT - MORT FORE by handing to together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 5?3??07 ?, ? 16.00 Sworn and Subscibed to before me this day of , So Answers: R. Thomas Kline 05/16/2007 MCNEES WALLACE RICK By: t Deputy Sherif A. D. COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION COMMUNITYBANKS, Plaintiff : DOCKET NO. 07-2868 Civil Term V. LORRIE PETERS AND E. MICHAEL PETERS, Defendants TO THE PROTHONOTARY: Please enter judgment in the above-captioned proceeding in favor of Plaintiff, CommunityBanks, and against Defendants, Lorrie Peters and E. Michael Peters, in the amount of $89,571.18, plus interest at the rate of $13.48228 per day on the $50,000 Note, and at the rate of $3.14100 per day on the $20,000 Note, late charges, attorneys' fees and other expenses and costs, from May 8, 2007, through the date of payment, including on and after the date of entry of judgment, and for foreclosure and sale of the mortgaged property, and costs. Judgment is entered pursuant to Pa. R.C.P. 1037(b) for failure to file a pleading to Plaintiffs Complaint, which contained a notice to defend, within twenty (20) days of service thereof, and after the 10-day Notice(s) of intention to file this Praecipe was or were sent. : MORTGAGE FORECLOSURE : PREVIOUSLY ASSIGNED TO: N/A Respectfully submitted, Date: August I , 2007 McNees Wallace & Nurick LLC By: Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff, CommunityBanks 6e yne Shull, Esquire prourt ID #24848 100 tree t, , PO Box 1166 Pursuant to Pa. R.C.P. No. 237.1, I hereby certify that notices of intent to take a default judgment were forwarded to Lorrie Peters and E. Michael Peters by United States Mail, first class, postage prepaid, on July 26, 2007. The aforesaid notices were contained within envelopes bearing the return address of the undersigned. The notices have not been returned to the undersigned as undeliverable or otherwise. Copies of the notices and Post F rms 38 7 are attached hereto and marked Exhibits "A" and "B", respectively. ey S. S?x(iff, Esquire U (31 ?= co `Ta CT -Ir. j w cn CO COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION COMMUNITYBANK.S, Plaintiff V. LORRIE PETERS AND E. MICHAEL PETERS, Defendants TO: Lorrie Peters 30 Emlyn Lane Mechanicsburg, PA 17055 Date of Notice: July 26, 2007 : DOCKET NO. 07-2868 Civil Term : MORTGAGE FORECLOSURE PREVIOUSLY ASSIGNED TO: N/A YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO TAKE ACTION REQUIRED OF YOU IN THIS CASE. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING, AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT 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 S. Bedford Street Carlisle, PA 17103 Telephone (717) 249-3166 Respectfully submitted, Date: July 26, 2007 McNees Wallace & Nurick LLC By: - /", 4//// Geo S. Sh ff, Esquire Supreme Court ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff, CommunityBanks i PI*I U.S. POSTAL SERVICE CERTIFICATE OF MAILING O6 Q04 r, MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER NCO r !°' N i :D V Rece ved From: s McNees Wallace & Nurick LLC 8 100 Pine Street, P.O. Box 1166 S 0 Harrisburg, PA 17108-1166 a t One piece of ordinary mail addressed to: S ` JUL 2 ?? C5 "° ? Lome Peters 30 Emlyn Lane Mechanicsburg, PA 17055 . vs PS Form 3817, January 2001 4 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION COMMUNTTYBANKS, DOCKET NO. 07-2868 Civil Term Plaintiff V. : MORTGAGE FORECLOSURE LORRIE PETERS AND E. MICHAEL PETERS, Defendants PREVIOUSLY ASSIGNED TO: N/A YWORTANT NOTICR TO: E. Michael Peters 30 Emlyn Lane Mechanicsburg, PA 17055 Date of Notice: July 26, 2007 YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO TAKE ACTION REQUIRED OF YOU IN THIS CASE. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING, AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT 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 S. Bedford Street Carlisle, PA 17103 Telephone (717) 249-3166 Respectfully submitted, McNees Wallace & Nurick LLC f Date: July 26, 2007 By: eo S. Sh , Esquire G upreme e Co : ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff, CommunityBanks U.S. POSTAL SERVICE CERTIFICATE OF MAILING Received From: McNees Wallace & Nurick LLC 100 Pine Street, P.O. Box 1166 Harrisburg, PA 17108-1166 One piece of ordinary mail addressed lo: E. Michael Peters 30 Emlyn Lane Mechanicsburg, PA 17055 PS Form 3817, January 2001 AND INTERNATIONAL MAIL, DOES NOT STMASTER C3 r` r ¦ /1? o 0 H r?/O r ?N r ? (O W !? N W OJ O ? U U ?a T r (V ?r ? `? ? W JULs 60 2 d Trw -n q- G") _10 ?Z f_ COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION COMMUNITYBANKS, Plaintiff DOCKET NO. 07-2868 Civil Term V. LORRIE PETERS AND E. MICHAEL PETERS, Defendants TO: Lorrie Peters 30 Emlyn Lane Mechanicsburg, PA 17055 : MORTGAGE FORECLOSURE PREVIOUSLY ASSIGNED TO: N/A E. Michael Peters 30 Emlyn Lane Mechanicsburg, PA 17055 You are hereby notified that on 410. 2. , 2007, the following judgment has been entered against you in the above captione case: Judgment in favor of Plaintiff, CommunityBanks, and against Defendants, Lorrie Peters and E. Michael Peters, in the amount of $89,571.18, plus interest at the rate of $13.48228 per day on the $50,000 Note, and at the rate of $3.141.00 per day on the $20,000 Note, late charges, attorneys' fees and other expenses and costs, from May 8, 2007, through the date of payment, including on and after the date of entry of judgment, and costs, and for foreclosure and sale of the mortgaged property, and costs. Judgment is entered pursuant to Pa. R.C.P. 1037(b) for failure to file a pleading to Plaintiffs Complaint, which contained a notice to defend, within twenty (20) days of service thereof, and after 10-day Notice(s) of intention to file this Praecipe was or were sent. Dm Dated: Z-_ ProthondQry I hereby certify that the proper persons to receive this notice under Pa. R.C.P. 236 are: Lorrie Peters E. Michael Peters 30 Emlyn Lane 30 Emlyn Lane Mechanicsburg, PA 17055 Mechanicsburg, PA 17055 1 •1%. , A Lorrie Peters 30 Emlyn Lane Mechanicsburg, PA 17055 E. Michael Peters 30 Emlyn Lane Mechanicsburg, PA 17055 Por este medio se le esta notificando que el de del 2007, el/la siguiente (Orden), (Decreto), (Fallo), ha sido anotado en contra suya en el caso mencionado en el epigrafe. Fecha: Protonotario Certifico que la siguiente direccion as la del defendido/a segun indicada en el certificado de residencia: Lorrie Peters 30 Emlyn Lane Mechanicsburg, PA 17055 Date: August, 2007 E. Michael Peters 30 Emlyn Lane Mechanicsburg, PA 17055 Respectfully submitted, McNees Wallace & Nurick LLC By: "'Z/ G YffrS'.'u Esquire ou ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff, CommunityBanks COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION COMMUNTTYBANKS, DOCKET NO. 07-2868 Civil Term Plaintiff V. MORTGAGE FORECLOSURE LORRIE PETERS AND E. MICHAEL PETERS, : Defendants PREVIOUSLY ASSIGNED TO: N/A PRAECIPE FOR WRIT OF EXECUTION (Mortgage Foreclosure) To The Prothonotary: Issue Writ of Execution in the above matter: Amount due $89,571.18 Interest from May 8, 2007 on the $50,000 Note $ 13.48228 per diem Interest from May 8, 2007 on the $20,000 Note $ 3.14100 per diem Costs $ to be added Respectfully submitted, McNees Wallace & Nurick LLC Date: Auguste, 2007 By: ff, Esquire Supreme Court ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff, CommunityBanks ?ak -? c -? Y di C3 G I,. 0 N cD cn q r. c, ?m I -V4 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION COMMUNITYBANKS, Plaintiff DOCKET NO. 07-2868 Civil Term V. LORRIE PETERS AND E. MICHAEL PETERS, Defendants MORTGAGE FORECLOSURE : PREVIOUSLY ASSIGNED TO: N/A AFFIDAVIT PURSUANT TO RULE 3129.1 CommunityBanks, Plaintiff in the above action, sets forth as of the date the Praecipe for the Writ of Execution was filed the following information concerning the real property consisting of one tract of land together with the buildings and improvements erected thereon located in Upper Allen Township, Cumberland County, Pennsylvania, known and numbered as 30 Emlyn Lane, Mechanicsburg, Pennsylvania 17055, Parcel No. 42-27-1890-177. 1. Name and address of owner or reputed owner: Lorrie Peters E. Michael Peters 30 Emlyn Lane Mechanicsburg, PA 17055 2. Name and address of defendant in the judgment: Lorrie Peters E. Michael Peters 30 Emlyn Lane Mechanicsburg, PA 17055 3. Name and address of every judgment creditor (other than the Plaintiff herein) whose judgment is a record lien on the real property to be sold: Members 1 S` Federal Credit Union 5000 Louise Drive Mechanicsburg, PA 17055 V'-* 4. Name and address of the last recorded holder (other than the Plaintiff herein) of every mortgage of record: Members 1 sc Federal Credit Union 5000 Louise Drive Mechanicsburg, PA 17055 5. Name and address of every other person who has any record lien on the property: None 6. Name and address of every other person who has any record interest in the property and whose interest may be affected by the sale: None 7. Name and address of every other person of whom the plaintiff has knowledge who has any interest in the property which may be affected by the sale: Cumberland County Tax Claim Bureau I Courthouse Square Carlisle, PA 17013 Cumberland County Domestic Relations P.O. Box 320 Carlisle, PA 17013 I, Geoffrey S. Shuff, Esquire, attorney for the Plaintiff, CommunityBanks, verify that the statements made in this affidavit are true and correct to the best of my personal knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. § 4904 relating to unsworn falsification to authorities. Respectfully submitted, McNees Wallace & Nurick LLC Date: August, 2007 By: e squire tSe Cour t#24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff, CommunityBanks d ril n Cam' Lp }1 ' ' a t I D c -t COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION COMMUNITYBANKS, Plaintiff V. LORRIE PETERS AND E. MICHAEL PETERS, Defendants : DOCKET NO. 07-2868 Civil Term MORTGAGE FORECLOSURE PREVIOUSLY ASSIGNED TO: N/A NOTICE OF SHERIFF'S SALE OF REAL ESTATE PURSUANT TO PENNSYLVANIA RULE OF CIVIL PROCEDURE 3129.2 TO: Lome Peters E. Michael Peters 30 Emlyn Lane Mechanicsburg, PA 17055 CommunityBanks 55 Wetzel Drive Hanover, PA 17331 Attention: Larry Anderson Cumberland County Tax Claim Bureau 1 Courthouse Square Carlisle, PA 17013 Members 1" Federal Credit Union 5000 Louise Drive Mechanicsburg, PA 17055 TAKE NOTICE: Cumberland County Domestic Relations P.O. Box 320 Carlisle, PA 17013 That the Sheriffs Sale of Real Property (real estate) will be held: DATE: December 5, 2007 TIME: 10:00 a.m. LOCATION: Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013 THE PROPERTY TO BE SOLD is delineated in detail in a legal description mainly consisting of a statement of the measured boundaries of the property, together with a brief mention of the buildings and any other major improvements erected on the land. (SEE DESCRIPTION ATTACHED) f THE LOCATION of your property to be sold is: one lot of land together with the buildings and improvements erected thereon located in Upper Allen Township, Cumberland County, Pennsylvania, known and numbered as 30 Emlyn Lane, Mechanicsburg, Pennsylvania 17055, Parcel No. 42-27-1890-177. THE JUDGMENT under or pursuant to which your property is being sold is docketed in the within Commonwealth and County to: CommunityBanks vs. Lorne Peters and E. Michael Peters, No. 07-2868, in the amount of $89,571.18, plus interest at the rate of $13.48228 per day on the $50,000 Note, and at the rate of $3.14100 on the $20,000 Note, from May 8, 2007, through the date of payment, including on and after the date of entry of judgment on this Complaint, and costs, and for foreclosure and sale of the mortgaged property until the Sheriffs Sale. THE NAMES OF THE OWNERS OR REPUTED OWNERS of this property are: Lorrie Peters and E. Michael Peters. A SCHEDULE OF DISTRIBUTION, being a list of the persons and/or governmental or corporate entities or agencies being entitled to receive part of the proceeds of the sale received and to be disbursed by the Sheriff (for example, to banks that hold mortgages and municipalities that are owed taxes) will be filed by the Sheriff of this County thirty (30) days after the sale and distribution of the proceeds of sale in accordance with this schedule will, in fact, be made unless someone objects by filing exceptions to it within ten (10) days of the date it is filed. Information about the Schedule of Distribution may be obtained from the Sheriff of the Court of Common Pleas of the within County at the Courthouse address specified herein. You may have legal rights to prevent your property from being taken away. A lawyer can advise you more specifically of these rights. If you wish to exercise your rights, YOU MUST ACT PROMPTLY. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET FREE LEGAL ADVICE. Cumberland County Bar Association 32 S. Bedford Street, Carlisle, PA 17013 (717) 249-3166 IL ?. f THE LEGAL RIGHTS YOU MAY HAVE ARE: 1. You may file a petition with the Court of Common Pleas of the within County to open the judgment if you have a meritorious defense against the person or company that has entered judgment against you. You may also file a petition with the same Court if you are aware of a legal defect in the obligation or the procedure used against you. 2. After the Sheriffs Sale, you may file a petition with the Court of Common Pleas of the within County to set aside the sale for a grossly inadequate price or for other proper cause. This petition MUST BE FILED BEFORE THE SHERIFF'S DEED IS DELIVERED. 3. A petition or petitions raising the legal issues or rights mentioned in the preceding paragraphs must be presented to the Court of Common Pleas of the within County. The petition must be served on the attorney for the creditor or on the creditor before presentation to the Court and a proposed order or rule must be attached to the petition. If a specific return date is desired, such date must be obtained from the Court Administrator's Office - Civil Division, of the within County Courthouse, before a presentation to the Court. A copy of the Writ of Execution is attached hereto (or is available from the County Prothonotary or Sheriff). Respectfully submitted, McNees Wallace & Nurick LLC .70 Date: August,0 J0 2007 By: iff, Esquire ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff, CommunityBanks Q -13 N _y ? V- iLL Tai= c8j8???411f iece, owl and ].ot of laud vit2- iMprvvmaente eitoe?te in r San =ship. Gwdtla®d CovntY, ic. ets Lot 61 * ai the 8 b?a?q SriSl S'ieiau Plan. tear Phase r, and being "irg Lniig boned and described ae tA11.a?wd, to wit: B=OZBKtB6 at a paint an the west lime of Styn Lane, Said pout bWAg t ho southeetxt doXWW o:C loot 62; thence amtinuing along the 11" of i04% bane on a 1ine* curving to the right hWjAq a radius C X9 700.00 aAd as am lwagt.h 146.78 feet said A= being. autbtandeed by a chord of south 09 degrees, 00 Ainutecs, 44 seconds mt a distance of 146.51 feet to a point the northeast dozvor of rat 60; thencee along the U09th lino of rat 60 north 74 degrrees 58 xj=rtvw,, So seconds Tweet a 4Utanoet of 174.87 feet to a point is the east lUe of Lot 66) thence along the east line of Lot 66 18 rtia 03 degrees, 92 minutes, 55 setcoftcle »ast a distance of 109.31 feet to a point the southweist• corns= of Lot 62; thence along the south lire of Lot 62 south 86 degrees, 59 minutes, 41 seconds East a distaM9 of 185.34 feet to a point, the plane of nnaarnxxwe. COXTAIMING 23,245 square not of land. BRING LOT No. 61, Final Subdivision plan Of. phase 1, L uftuvood, dated rebxnmary 3, 1907, last revised July 17 , 1997', reec-ended in the office.of the Recarder of Deeds of Cumberland county, penaxylvania, In plan Hoak 75', Peae 29. RJ?9'14i P88AR0X ' MJK5CV2b a single tdaily Xesideaem and other Pennsylvania -knmu and uuwbered 30 gm1Yn Lane, gschenicebgrq, e?eslriw--fa,. ALSO SNIltG the pMperty Jmown, named and identified in the Declaration, safet=ed to below, as OUndenwood" located'in Oppe-s Allen Tr ehlp, Garland County, Pennsylvania, Mblah has theref m been- sub fitted to the provisions of the v enn y],vaaia Vt1.1,faM Pl.a=Wd qty Acct, 68 Pa C.B.X. Sections 6x!81 et seq. by the recording In the office of zhei Recorder of Aeede of Cwnbetlasad count-y, Pennsylvania, the D001aratiOn for Lisxhenunood "Declaration"' dated August 28, 19970, reworded 1s ? 20o 1..997 in Misc. Hook 55A, Page 806, being described in Sect 2.2of the Declaration and shown (and described) in axtij t a of the Umlaration. DJ?2X iX0 SvBJRCT,. to Doclaration fox Lin Wood# a flax,i,his Us ideatial IFIAUned CM-0-pity recorded a s iCiscsiA1L&n 0M= ]leek 5S.5, Pays 806 aW X*GtrictioW, zweexvaticne, conditims and r -of- aa4Y as shown on the Fit- a Subdivision Plan of phases 1, Z,in ?d as recorded in plan Hook 75, Page x9. WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) COUNTY OF CUMBERLAND) NO 07-2868 Civil CIVIL ACTION - LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due COMMUNITYBANKS, Plaintiff (s) From LORRIE PETERS & E. MICHAEL PETERS (1) You are directed to levy upon the property of the defendant (s)and to sell SEE LEGAL DESCRIPTION. (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of GARNISHEE(S) as follows: and to notify the garnishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof; (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due $89,571.18 L.L. $.50 Interest from 5/08/07 on the $50,000 Note - $13.48228 per diem from 5/08/07 on the $20,000 Note - $ 3.14100 per diem Atty's Comm % Due Prothy $2.00 Atty Paid $156.43 Plaintiff Paid Other Costs Date: 8/29/07 (Seal) REQUESTING PARTY: Name GEOFFREY S. SHUFF, ESQUIRE Address: MCNEES WALLACE & NURICK LLC 100 PINE STREET, PA BOX 1166 HARRISBURG, PA 17108-1166 Attorney for: PLAINTIFF P C". s R. Long, Prothonotty By: Aupi4 N44 Deputy Telephone: 717-237-5439 Supreme Court ID No. 24848 COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION COMMUNI TYBANKS, Plaintiff V. LORRIE PETERS AND E. MICHAEL PETERS, Defendants : DOCKET NO. 07-2868 Civil Term : MORTGAGE FORECLOSURE : PREVIOUSLY ASSIGNED TO: N/A RETURN OF SERVICE PURSUANT TO PA. R.C.P. 3129.2(c)(2) Plaintiff, CommunityBanks, hereby files this Return of Service and swears and affirms that the person or persons listed below, whose names appear in the Affidavit filed in this proceeding pursuant to Pa. R.C.P. 3129. 1, were served with the Notice of Sheriff s Sale Pursuant to Pa. R.C.P. 3129.2 and legal description in the United States Mail, first class, with certificates of mailing. A copy of each certificate of mailing is attached hereto. Lome Peters E. Michael Peters 30 Emlyn Lane Mechanicsburg, PA 17055 Cumberland County Tax Claim Bureau 1 Courthouse Square Carlisle, PA 17013 Members 1 s` Federal Credit Union 5000 Louise Drive Mechanicsburg, PA 17055 CommunityBanks 55 Wetzel Drive Hanover, PA 17331 Attention: Larry Anderson Cumberland County Domestic Relations P.O. Box 320 Carlisle, PA 17013 Respectfully submitted, McNees Wallace & Nurick LLC Date: October2007 By: Geo . SVUIMD; Esquire reme Co #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff, CommunityBanks . U.S. POSTAL SERVICE CERTIFICATE OF MAILING o 0 1 MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT 00 PROVIDE FOR INSURANCE-POSTMASTER N O Received From: •0) w McNees Wallace & Nurick LLC s 80 I 100 Pine Street, P.O. Box 1166 N PA 17108-1166 p,RISg Harrisburg ?, g , c , ? N ? 117 LL N ? One piece of ordinary mail addressed to: 9 ? U i G C> C) pS C) . Cumberland County Tax Claim Bureau .. 1 Courthouse Square - Carlisle, PA 17013 PS Form 3817, Mar. 1989 MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER Received From: McNees Wallace & Nurick LLC 100 Pine Street, P.O. Box 1166 Harrisburg, PA 17108-1166 , One piece of ordinary mail addressed to: `rA S Members 1St Federal Credit Union 5000 Louise Drive Mechanicsburg, PA 17055 PS Form 3817, Mar. 1989 1 U.S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER Received From: McNees Wallace & Nurick LLC 100 Pine Street, P.O. Box 1166 Harrisburg, PA 17108-1166 ti One piece of ordinary mail addressed to: 9 Cumberland County Domestic Relations P.O. Box 320 Carlisle, PA 17013 2S Form 3817. Mar_ 1989 CO n 0 inc) co N o- l"" N O I zO~U ??8a ?RISB& N N 0 7 a •• N U- - C) Oip 11N(1 0 0 2 0 r 0 0 o r- N le r ?N W 11%w 40 U , r- C) c ?o r LOLL d( ?$Mf1 C) - 0 0 2 w ,* U.S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER Received From: McNees Wallace & Nurick LLC 100 Pine Street, P.O. Box 1166 -Harrisburg, PA 17108-1166 One piece of ordinary mail addressed to: CommunityBanks 9 i 55 Wetzel Drive Hanover, PA 17331 Attention: Larry Anderson PS Form 3817, Mar. 1989 U.S. POSTAL SERVICE CERTIOF MAILING STC MAY BE USED FOR DONISTIC OVIDE FOR NSURANCE-POSTMASTERNATIL, DOES NOT PR Received From: McNees Wallace & Nurick LLC 100 Pine Street, P.O. Box 1166 Harrisburg, PA 17108-1166 i 0 0 Litho ! ??/•C" i ?WH p Z 80 N uO ? o 12NUINC01 I a C3 2 A5'}} One piece of ordinary mail addressed to: Lorrie Peters 9 E. Michael Peters L 30 Emlyn Lane Mechanicsburg, PA 17055 PS Form 3817, January 2001 O o o N?Q$u LAor 9 ID ?N f+ ?N W r W Q~ p X80 N Ln N to U_ NO 0 Np Q an c:- 4 f7 ? r!, -ra r-r1 ?fy a co N Communitybanks VS Lorrie Peters and E. Michael Peters In the Court of Common Pleas of Cumberland County, Pennsylvania Writ No. 2007-2868 Civil Term Cpl. Jason Viroal, Deputy Sheriff, who being duly sworn according to law, states that on October 08, 2007 at 1034 hours, he served a true copy of the within Real Estate Writ, Notice and Description, in the above entitled action, upon the within named defendants, to wit: Lorrie Peters and E. Michael Peters, by making known unto Michael Peters, personally and adult in charge for Lorrie Peters, at 30 Emlyn Lane, Mechanicsburg, Cumberland County, Pennsylvania its contents and at the same time handing to him personally the said true and correct copy of the same. Cpl. Jason Vioral, Deputy Sheriff, who being duly sworn according to law, states that on October 08, 2007 at 1034 hours, he posted a true copy of the within Real Estate Writ, Notice, Poster and Description, in the above entitled action, upon the property of Lorrie Peters and E. Michael Peters located at 30 Emlyn Lane, Mechanicsburg, Cumberland County, Pennsylvania according to law. R. Thomas Kline, Sheriff, who being duly sworn according to law, states he served the above Real Estate Writ, Notice, Poster and Description in the following manner: The Sheriff mailed a notice of the pendency of the action to the within named defendants, to wit: Lorrie Peters and E. Michael Peters by regular mail to their last known address of 30 Emlyn Lane, Mechanicsburg, PA 17055. These letters were mailed under the date of October 12, 2007 and never returned to the Sheriffs Office. R. Thomas Kline, Sheriff, who being duly sworn according to law, states this writ is returned STAYED per letter of request from Attorney Geoffrey Shuff. Sheriffs Costs: Docketing 30.00 Poundage 21.62 Posting Bills 15.00 Advertising 15.00 Law Library .50 Prothonotary 2.00 Mileage 9.60 Levy 15.00 Surcharge 30.00 Postpone Sale 20.00 Law Journal 509.00 Patriot News 419.78 Share of Bills 14.92 / $1102.42 ? U/d 5?l o P So An ers: R. Thomas Kline, Sheriff B ReaPEstat ergeant ).wC- SU 1 Gk OV? n ,i