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HomeMy WebLinkAbout07-3152IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION: LAW COMMERCE BANK/HARRISBURG, No. two N.A., Plaintiff Vs. UNITED GENERAL TITLE INSURANCE COMPANY, Defendant NOTICE TO DEFEND 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 Document 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 Documents 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 OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 Telephone: 717-299-3166 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION: LAW COMMERCE BANKMARRISBURG, No. N.A., Plaintiff VS. UNITED GENERAL TITLE INSURANCE COMPANY, Defendant (21* ? "' U L COMPLAINT 1.0 LITIGANTS 1. The PLAINTIFF is COMMERCE BANK/HARRISBURG, N.A., a national banking association, having a principal place of business at 3801 Paxton Street, City of Harrisburg, Dauphin County, Commonwealth of Pennsylvania 17111, and hereinafter sometimes referred to as "Plaintiff' and/or "Bank". 2. The DEFENDANT is UNITED GENERAL TITLE INSURANCE COMPANY, a corporation organized and existing under the laws of the State of Colorado, engaged in the business of issuing title insurance, doing business in the Commonwealth of Pennsylvania, having its principal place of business at 999 18th Street, Suite 3400, Denver, Colorado 80202-2434, with an office in the Commonwealth of Pennsylvania situate at Bailey Center II, 135 Technology Drive, Suite 501, Canonsburg, Washington County, Pennsylvania, and hereinafter sometimes referred to as "Defendant". 2.0 FACTUAL BACKGROUND 3. On or about March 6, 2006, Bank issued to Cody A. Carbaugh a written commitment letter wherein Bank conditionally agreed, subject to certain conditions and requirements, to loan to Cody A. Carbaugh the sum of one hundred twenty-six thousand dollars ($126,000.00) to fund the purchase of a tract of real estate situate in Borough of New Cumberland, Cumberland County, Commonwealth of Pennsylvania, being Lot 10 and part of Lot 9 on a Plan of Lots for Westover Terrace, said Plan being recorded in Plan Book 7, Page 11, in the Recorder of Deeds Office for Cumberland County, Pennsylvania and known as 92 Carol Place. Attached hereto, marked Exhibit "A" and incorporated herein by reference thereto is a true and correct copy of a "Commitment Letter" dated March 6, 2006 issued by Bank to Cody A. Carbaugh. 4. As a condition precedent to Bank loaning to Cody A. Carbaugh the sum of one hundred twenty-six thousand dollars ($126,000.00) as set forth in Averment 3 hereof, the "Commitment Letter" (Exhibit "A") required that Bank be given as collateral a mortgage which was to be a first lien on a tract of real estate situate in the Borough of New Cumberland, Cumberland County, Commonwealth of Pennsylvania, being Lot 10 and part of Lot 9 on a Plan 1 of Lots for Westover Terrace, said Plan being recorded in Plan Book 7, Page 11, in the Recorder of Deeds Office for Cumberland County, Pennsylvania and also known as 92 Carol Place. 5. Furthermore, as a condition precedent to Bank loaning to Cody A. Carbaugh the sum of one hundred twenty-six thousand dollars ($126,000.00) as set forth in Averment 3 hereof, the "Commitment Letter" (Exhibit "A") required that Cody A. Carbaugh provide the Bank with title insurance issued for the protection of the Bank insuring that the mortgage to be granted to the Bank referred to in Averment 4 of this Complaint be a first lien on a tract of real estate situate in the Borough of New Cumberland, Cumberland County, Commonwealth of Pennsylvania, being Lot 10 and part of Lot 9 on a Plan of Lots for Westover Terrace, said Plan being recorded in Plan Book 7, Page 11, in the Recorder of Deeds Office for Cumberland County, Pennsylvania known as 92 Carol Place. 6. On April 14, 2006, the Bank did, in fact, loan to Cody A. Carbaugh the sum of $126,000.00. 7. To evidence the loan made by the Bank to Cody A. Carbaugh of one hundred twenty-six thousand dollars ($126,000.00), on April 14, 2006, Cody A. Carbaugh, as obligor, executed in favor of the Bank, as oblige, a "Promissory Note", a copy of which is attached hereto, marked Exhibit "B" and incorporated herein by reference thereto. 8. On or about April 14, 2006, Cody A. Carbaugh acquired title to the tract of real estate situate in Borough of New Cumberland, Cumberland County, Commonwealth of Pennsylvania, being Lot 10 and part of Lot 9 on a Plan of Lots for Westover Terrace, said Plan being recorded in Plan Book 7, Page 11, known as 92 Carol Place, for the purchase price of $140,000.00 by virtue of a "Deed" dated April 14, 2006 and recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania on April 25, 2006 in Deed Book 274, Page 861. Attached hereto, marked Exhibit "C" and incorporated herein by reference thereto is a true and correct copy of the "Deed" dated April 14, 2006 and recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania on April 25, 2006 in Deed Book 274, Page 861, for the property known as 92 Carol Place. 9. On or about April 14, 2006, to secure and to collateralize the liability of Cody A. Carbaugh to the Bank on account of the "Promissory Note" (Exhibit `B"), Cody A. Carbaugh, as mortgagor, executed in favor of the Bank, as mortgagee, a "Mortgage" for the face amount of $126,000.00, which was recorded on April 25, 2007 in Record Book 1947, Page 4876. 10. Attached hereto marked Exhibit "D" and incorporated herein by reference thereto is a true and correct copy of the "Mortgage" for the face amount of $126,000.00 which was recorded on April 25, 2007 in Record Book 1947, Page 4876, executed by Cody A. Carbaugh, as mortgagor, in favor of the Bank, as mortgagee. 11. While Page 2 of the "Mortgage" (Exhibit "D") refers to Lots 10 and part of Lot 9 on a Plan of Lots for Westover Terrace, Borough of New Cumberland, Cumberland County, Pennsylvania known as 92 Carol Place as the property which is subject to the lien of the "Mortgage" (Exhibit "D"), the description attached as Exhibit "A" to the "Mortgage" (Exhibit "D") describes Lot 8 and part of Lot 9 on a Plan of Lots for Westover Terrace, said Plan being recorded in Plan Book 7, Page 11, situate in Borough of New Cumberland, Cumberland County, Pennsylvania known as 83 Carol Place, as being subject to the lien of the "Mortgage" (Exhibit «D„ 2 A 12. Contemporaneously with Cody A. Carbaugh acquiring Lot 10 and part of Lot 9 on a Plan of Lots for Westover Terrace, said Plan being recorded in Plan Book 7, Page 11, situate in the Borough of New Cumberland, Cumberland County, Pennsylvania, known as 92 Carol Place for $140,000.00, Cody A. Carbaugh also acquired Lot 8 and part of Lot 9 on a Plan of Lots for Westover Terrace, said Plan being recorded in Plan Book 7, Page 11, situate in the Borough of New Cumberland, Cumberland County, Pennsylvania, known as 83 Carol Place, for the purchase price of $417,000.00 by virtue of a "Deed" dated April 13, 2006 and recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania on April 25, 2006 in Deed Book 274, Page 857. Attached hereto, marked Exhibit "B" and incorporated herein by reference thereto is a true and correct copy of the Deed dated April 13, 2006 and recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania on April 25, 2006 in Deed Book 274, Page 857. 13. Principal Settlement Services, LLC is a limited liability company organized and existing under the laws of the Commonwealth of Pennsylvania with its principal place of business at 341 Science Park Road, Suite 202, State College, Pennsylvania. 14. In 2006 and at all times relevant to the events set forth in this Complaint, Principal Settlement Services, LLC was an authorized agent and representative of Defendant. 15. Principal Settlement Services, LLC, as an authorized agent and representative of Defendant and on behalf of Defendant, conducted the settlements by which Cody A. Carbaugh acquired on April 14, 2006: (a) 92 Carol Place, being the tract of real estate situate in Borough of New Cumberland, Cumberland County, Commonwealth of Pennsylvania, being Lot 10 and part of Lot 9 on a Plan of Lots for Westover Terrace, said Plan being recorded in Plan Book 7, Page 11, by virtue of a "Deed" dated April 14, 2006 and recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania on April 25, 2006 in Deed Book 274, Page 861, for $140,000.00; and (b) 83 Carol Place, being the tract of real estate situate in Borough of New Cumberland, Cumberland County, Commonwealth of Pennsylvania, being Lot 8 and part of Lot 9 on a Plan of Lots for Westover Terrace, said Plan being recorded in Plan Book 7, Page 11, by virtue of a "Deed" dated April 14, 2006 and recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania on April 25, 2006 in Deed Book 274, Page 857, for $417,000.00. 16. Principal Settlement Services, LLC, as an authorized agent and representative of Defendant and on behalf of Defendant, attached the description to the "Mortgage" (Exhibit "D") and recorded the "Mortgage" (Exhibit "D"). 17. Principal Settlement Services, LLC, as an authorized agent and representative of Defendant and on behalf of Defendant, also recorded the "Mortgage" (Exhibit "D"). 18. At the time of the settlements referred to in Averment 15 of this Complaint, Defendant's authorized agent and representative, Principal Settlement Services, Inc., was fully aware that Bank was to procure a first mortgage lien on the tract of real estate, situate in the Borough of New Cumberland, Cumberland County, Commonwealth of Pennsylvania, being Lot 10 and part of Lot 9 on a Plan of Lots for Westover Terrace, said Plan being recorded in Plan Book 7, Page 11, known as 92 Carol Place. 19. Principal Settlement Services, LLC, as an authorized agent and representative of Defendant, was under a duty to provide Bank with a "Mortgage" which granted to Bank a first lien on the tract of real estate, situate in Borough of New Cumberland, Cumberland County, 3 Commonwealth of Pennsylvania, being Lot 10 and part of Lot 9 on a Plan of Lots for Westover Terrace, said Plan being recorded in Plan Book 7, Page 11, known as 92 Carol Place. 20. On April 25, 2006, Principal Settlement Services, LLC, as an authorized agent and representative of Defendant and on behalf of Defendant, issued and delivered to Bank a title insurance policy being Policy #63645389, a copy of which is attached hereto, marked Exhibit "F" and incorporated herein by reference thereto. 21. The title policy (Exhibit "F") insured that the "Mortgage" (Exhibit "D") was a first mortgage lien on a tract of real estate, situate in Borough of New Cumberland, Cumberland County, Commonwealth of Pennsylvania, being Lot 8 and part of Lot 9 on a Plan of Lots for Westover Terrace, said Plan being recorded in Plan Book 7, Page 11, known as 83 Carol Place, and not on Lot 10 and part of Lot 9 on a Plan of Lots for Westover Terrace, Plan Book 7, Pagel 1, Borough of New Cumberland, Cumberland County, Pennsylvania, known as 92 Carol Place. 22. The title policy (Exhibit "F") also insured Bank for the sum of $126,000.00. 23. As of the date of this Complaint, the following is priority of the various liens on the following tracts of real estate situate in Westover Terrace, Borough of New Cumberland, Cumberland County, Pennsylvania: ADDRESS 83 CAROL PLACE 92 CAROL PLACE LOT # 8 and part of Lot 9 10 and art of Lot 9 PLAN BOOK Book 7 Page 11 Book 7 Page 11 MUNICIPALITY Borough of New Cumberland Borough of New Cumberland COUNTY Cumberland Cumberland DEED Book 274 Page 857 Book 274 Page 861 FIRST MORTGAGE Lehman Brothers Bank FSB, Lehman Brothers Bank FSB, mortgagee- Mortgage for mortgagee- Mortgage for $417,000.00 dated 4/13/2006 $417,000.00 dated 4/13/2006 and recorded on 4/25/2006 in and recorded on 4/25/2006 in Record Book 1947 Page 4842 Record Book 1947 Page 4842 SECOND MORTGAGE Lehman Brothers Bank FSB, Lehman Brothers Bank FSB, mortgagee- Mortgage for mortgagee- Mortgage for $123,000.00 dated 4/13/2006 $123,000.00 dated 4/13/2006 and recorded on 4/25/2006 in and recorded on 4/25/2006 in Record Book 1947 Page 4866 Record Book 1947 Page 4866 THIRD MORTGAGE Commerce Bank/Harrisburg, Commerce Bank/Harrisburg, N.A., mortgagee- Mortgage N.A., mortgagee- Mortgage for $126,000.00 dated 4/ 14, for $126,000.00 dated 4/ 14, 2006 and recorded on 2006 and recorded on 4/25/2006 in Record Book 4/25/2006 in Record Book 1947 Page 4876 1947 Page 4876 24. On or about June 15, 2006, Bank learned for the first time that Bank did have a lien against Lot 10 and part of Lot 9 on a Plan of Lots for Westover Terrace, Plan Book 7, Page11, Borough of New Cumberland, Cumberland County, Pennsylvania, known as 92 Carol Place, and that Bank did not have a first lien against Lot 8 and part of Lot 9 on a Plan of Lots for 4 Westover Terrace, Plan Book 7, Page11, Borough of New Cumberland, Cumberland County, Pennsylvania, known as 83 Carol Place. 25. On or about July 7, 2006, as required by Paragraph 3 of terms and provisions of the title policy (Exhibit "F") entitled "NOTICE OF CLAIM TO BE GIVEN BY AN INSURED CLAIMANT, Bank timely notified Defendant in writing of the existence of a claim in favor of Bank under the title policy (Exhibit "G") and also submitted to Defendant a written "Proof of Loss and Damages" pursuant to Paragraph 5 of the terms and provisions of the title policy (Exhibit "F") entitled "PROOF OF LOSS OR DAMAGE". 26. Attached hereto marked Exhibit "G" and incorporated herein by reference the written notice of loss and the "Proof of Loss and Damages" referred to in Averment 25 hereof. 27. Despite the submission of the "Proof of Loss and Damages", Defendant has not paid to Bank the sum of $126,000.00 required to be paid to Bank pursuant to the terms of the title policy (Exhibit "F"). 28. Principal Settlement Services, LLC, as an authorized agent and representative of Defendant, was under a duty to provide the Bank with title insurance that insured that the Bank would have a first lien on Lot 10 and part of Lot 9 on a Plan of Lots for Westover Terrace, Plan Book 7, Page11, Borough of New Cumberland, Cumberland County, Pennsylvania. 29. As of May 1, 2007, Cody A. Carbaugh is obligated to Bank on account of the "Promissory Note" (Exhibit "B") for the following amounts: A. Principal $126,000.00 B. Interest $ 12,117.01 C. Late Charges $ 529.73 D. Total $138,646.74 30. The fair market value of Lot 10 and part of Lot 9 on a Plan of Lots for Westover Terrace, Plan Book 7 Pagel 1, Borough of New Cumberland, Cumberland County, Pennsylvania, known as 92 Carol Place is $140,000.00.00. 31. The fair market value of Lot 8 and part of Lot 9 on a Plan of Lots for Westover Terrace, Plan Book 7 Pagel 1, Borough of New Cumberland, Cumberland County, Pennsylvania, known as 83 Carol Place is $417,000.00. 32. As a result of the facts set forth in Averments 23, 29, 30 and 31 there is no equity in either Lot 10 and part of Lot 9 on a Plan of Lots for Westover Terrace, Plan Book 7, Pagel 1, Borough of New Cumberland, Cumberland County, Pennsylvania, known as 92 Carol Place, or Lot 8 and part of Lot 9 on a Plan of Lots for Westover Terrace, Plan Book 7, Pagel 1, Borough of New Cumberland, Cumberland County, Pennsylvania, known as 83 Carol Place, for the Bank to effectuate any recovery on its "Mortgage" (Exhibit "D"). COUNTI NEGLIGENCE 33. Averments 1 through 32 are incorporated herein by reference thereto as well as Exhibits "A" through "G" hereof. 5 34. At all relevant dates and times set forth in Averments 1 through 32 hereof, Principal Settlement Services, LLC was the authorized agent and representative of Defendant and all actions and conduct of Principal Settlement Services, LLC as alleged in the Complaint were authorized by Defendant. 35. The conduct and actions of the Defendant's authorized agent and representative, Principal Settlement Services, LLC described in Averments 15, 16, 17, 18 and 20 of this Complaint was negligent. 36. As a result of the negligence of Defendant's authorized agent and representative, Principal Settlement Services, LLC, the Bank suffered a loss of $138,646.74 as set forth and detailed in Averment 29 hereof. WHEREFORE, the PLAINTIFF, COMMERCE BANK/'HARRISBURG, N.A., prays Your Honorable Court for Judgment in favor of the PLAINTIFF, COMMERCE BANK/HARRISBURG, N.A., and against the DEFENDANT, UNITED GENERAL TITLE INSURANCE COMPANY, for the sum of $138,646.74 plus interest from May 1, 2007 at the rate set forth in the "Promissory Note" (Exhibit "B") plus costs of suit. COUNT II BREACH OF CONTRACT 37. Averments 1 through 32 are incorporated herein by reference thereto as well as Exhibits "A" through "G" hereof. 38. On April 14, 2006, Cody A. Carbaugh paid to the Defendant's authorized agent and representative, Principal Settlement Services, LLC, the title insurance premium, being $1,278.75, for the cost of the title insurance policy (Exhibit "F") that was issued to the Bank by Defendant's authorized agent and representative, Principal Settlement Services, LLC. 39. As the authorized agent and representative of Defendant, Principal Settlement Services, LLC was authorized by Defendant on April 14, 2007 to collect for Defendant the title insurance premium referred to in Averment 38 hereof for the benefit of Defendant. 40. On or about April 25, 2006, Principal Settlement Services, LLC remitted to Defendant the title insurance premium referred to in Averment 38 hereof. 41. Plaintiff gave timely written notice to Defendant of the existence of a claim in favor of the Bank against the Defendant and furnished the Defendant with good, sufficient, due and satisfactory proofs of the loss and claim (See Exhibit "G"). 42. The Defendant is obligated to pay plaintiff the sum of $126,000.00, which is the amount of the insurance coverage provided to Bank under the title policy (Exhibit "F"). 43. Despite repeated requests, Defendant has failed and refused and still refuses to pay Plaintiff the sum of $126,000.00 or any part thereof. 6 STATE OF PENNSYLVANIA COUNTY OF %, J SS: Before me, a Notary Public, in and for the said County and State, personally appeared Angela Masser, who, being duly sworn according to law, doth depose and say that she is a Vice President of Commerce Bank/Harrisburg, N.A, a banking organization organized and existing under the laws of the United States of America and registered to do business in the Commonwealth of Pennsylvania, and that as such officer is authorized to make this Affidavit on behalf of Commerce Bank/Harrisburg, N.A., and that the facts set forth in the foregoing document are true and correct to the best of her knowledge, information and belief. kL) Sworn and Subscribed to before me this a3 day o f C? Notary Public co Mavw NTH F NOTARIAL SEAL LINDA M. WOLF, No'y Pubk Cky of York, Yak Cou 4 Ma 22, 1 My Comrftjon 3 COMMERCE BANK/HARRISBURG, N.A. 4! 'A-,.f4u'O,)Mt.w, EXHIBIT "A" '9 1 ( ('ritrncrCC Bank I Iarrl1L;lr_. '?.,\ 1.. ?„I• \. t ,n?_'t C amp Hill. PA i nl 1 "ltl ??1(1 ,? I.!'f ::'i (',trt?l Pi.lcl Ilc;u' %hhbca tI(s) \1 c .!r.: hI61Sed In mfnrm ' ,n lief! ',,?u! :Ihnl!c:,i'i??;t '? , ,: n„ir!_;i_i: It,c i,:i,l conditionally;Ipprmed. :\ec rduicl.. Ihl, :n<;!nrcoal ,here %o:: Inc dc!ailed heln'.x' This offer may he accepled by ym onlc by wVQg and rc(ummg to ietier COO nNmn ( 15) days oi,thr da(c of This Icllor :\ficr you accept (his offer. it will he an agreement helue.ell this r.rndCr and %01I. Ail:,' other agreement Ihet may e.xhi A replaced by this agreement. NO ehanec m We terms I„ cnnditmn ol'this agreement shall he clRun.c. nor l.ciil it hind this insultuiorl ru an'. '.\ a'•. Was the change ism writing and A Pped byan olfccr of the Lender. The terms and conditions are set forth below. if you do not convoy "Ah anv nnc or more of We terms or if anv one or more of the conditions are not fulfilled. then this L endcr \? ill not be required (O make this nx>rtgagc loan to apu. CONS%ENTiON:kl, AD.IUSTABi..F, RATE MORTGAGE. ITR\I INTEREST RATH: PRI\.Ir .. INTFREST S % RFAK KSTATE TAN S FSURC)" ':'. ',,!\ i!1) II \7.:\RD I\`('RA\('I !:?( -(-i''. M) \IOR fGAGI[ INSI RANI is 1)ISC01 :NT 1:FF sI2w ;)t)Il PoIrIll CONDITIONS TO BE SATISFIED ,A F SK l-I-F.-NI :`l" BORROWEMY TO PRO"DE: :1 .F:. OF I-IOMHO \*NFRS INS( RAV I: I ISTitfi r'O`•.I\iF:R('H ii HR(, . N.A AS \1ORTC0\(,I:I'..-` AND A P:\ID RF(TH"ii k Ft T.I.1 TED \I)DP.\I) \I TO S \L.F.S CONTRA( I I t '..ir W1\(, ' (AR". MACE CLOSING AGENT O PRO\"iDE: NO SI_'BORDIN,•\TE I:1\,1`Y IV( CASH BACK "i'O BORRO"TRS WK NOT E\C'EED 01 'I..I._1' E\CCI)TLD FINAL APP1.,1("'A'1-IO\. RELEASE OF ALI UENS \G \INYr 9 1115177 PROPERTY HUD-1 TO EVIDENCE `I:.1 I_ER PAID CI OSI`:C-COSTS ".\lm-1I \IA', \OI I?\( 1=1?D \( -i t'.11. (" OS I S \ND \I \', iJE \Pi'I IED \S F(il ': EXHIBIT "A" I'll Is Coln ltt l l loent \t 111 CWAv 1111 h. 24 no if- for xI'. IcasOn OIL: Cl'', In 11,11 occur hv that time. Ihc. ,hh atlons of this nlslunllon in lhUS ,.,,nnol c 1 c,. I 11:1% any QA farce or cl•fec!. W i>; a"wn of (hln comno inlcnl t I '. h._ a IOUs !h rl;scrc:Ion nl,lhts nlstilutioll ?I IhIs CnlnmIt Ill ell l Is to I,C a:tin(1Cd Ih)s rltsuunWin I!I II:' IhC !'I_hI ! iAIICC an., 0I ICrmS sl,cciliCil :Iho%, , UIClnr;ill ;_ the III!crc?l r;IIi.• ACC URACY Of N OUR A11I'll,IC.k ION I IIIS offcr and asreernenl are made In rciiar.ce oil the ,accurtc" :nnl conollcICnc,S r,l all InlnrraIion suhnlifled In \.ollr loan application \ ._,nficatii,n of IhC <:nmpletcncss:InIJ ICCIIrIcy, of all such noo'ntation I. a prccnndlti,ll, !„ an% nhllali;,n ,,I, 111C ;,;I!-! of (111t, ntSUln:ri)n. NO SECONDARY FINANCING 1'11!1 now not Inc scovidar`. Iina nclnc in addinr,n ; , tiolll loan 1,1311; tills 1 i"Ildcr I" '.0111l,l,:IC the purchase o1 the prnpcrl,' dcscrlbcd irho%'c trlllcss it IS appro` t:d Ill •%ntin h., an officer of this Lender prinr Ir, the closim n(vnur loan II-a rtsacii'm lKNDS FOR CLOSING \1 file Linz: ofclosing.. you must he prepared to pmtule WW I fund; In pp for to (Dummy: the balance of Ac purchase price, Monism v.ilh Mc'Wicr Me I_cncler's leeal fees. cods of title examination and n!hcr clos l-IL costs. tax and, insurance c?n,rc lClutsus. pluS any dlSCOUTI! (CC For the csl n i ecl tlnlounl of Ihcsc (cc.; ;InIJ -..pCnscs, please refer to the Good Fallh 1- turta(C a.hlch has h(xll pro, Oct! r \c,n. I he f11 ds oil piotitl,_ must he in cash nr in the I'orm of a eernfic;`. check or hank ::heck HAZARD INSURANCE COVERAGE, I mess &IS instil anon gives you a \.vriftcn `.,:n`. cr of :ills rcquiremcnl• o w d! St, quired t„ pay your Iil:sl vcar'S ha/art! InSurar.cc lUennunl befr,rc Illy cloC.Ine :\licr Ih;a 1-1111. 'his lender has me ri+_hl I.., rcqu:rc you to nl,ike M„n,hlY 7nt-,\'.- na`,^ny" in „rf';. ., „et :Im,tl.l! rcllc,. ' ?I1t I- t,.., 11,: ', 11„ elll,l, - ,I 7 ,. -:I! .. he Inrnl .,1 :I ;n , I,,'h:- c: rI:l Ir,: r n I _':r_.' , :;1d II ica1. Cqu Il II,c _ .'. li' .:IL•l: I--I' ..1- 111paid prnu_Ipal halan r k v ort Y as n _ ,I. a ci , r,ur,Im n :mt, all e\;uircd to compensuc for djmd c + i Wr ,n I ac .nttrnl c:osl I rc po, 1, \ nu" na n ` -( 0i\I\1Ef2( - BANK. Ii:\RRItil3HUY \2"S ncccsrr,r'"ind :I::.qw. a, Il)Cir ntlcresl may. appear' as lira nlorleaece at I;?Ii "Cnaic ,\, cnur. ( alr:) Bill. 1' \ _n I 1 I he Insurant-C colllpan\ hl!til h;l`,'r III !Clsi a I3 '_cncral pollc',hI'I:,IC'', r;.lilltL a;A I financial o/C catcuon of III in I csl's Key I:al:n reside. ',1'c ., it acccpt a-, alt ,II Crna! ., ,:o\'Cra_:c written by. a carrWr th o as an :\ general polic%holdcr's !anmu I ills iast;!r.inr: ill also accept co,'erauc films L.lovd'S r,f I..\.,ndon. i••c l (hough I! haS 110 Best r:::111,L! `d under a F AM plan if d is the wil, costal; Ilta can he ohlaine,l at rcn c whlc,:w flu: hazard insurance. police or i,lndcr nonce slat: the RcsCs ralln : of the ;"loin;', NTLE INSURANCE. Before we closing of INS loan the afOrnev for this Lender r\• Ili Cx Imail ill._: n;lt I:, the prnltcrr I-COrred to ahot'e. This instin.ltion `.t ill hate no ohhi anon II, closC !Ills I -all unlesm in the npinion of in altonw. von "A hie .u the lint; We morig4c n recorded. ;;nod, clear record. marketable title to the mortgagM prnp;rt.:. hhlS mum Ihal '"Ir lili_'. must. with the exception of the mongaen he it-CC of all liens. cnclunhrancc,? and dcf::cr< `., hick m the sole discr;lion of Ibis Lender and on auomq, tiould make the pi-muro oil Imprudent nlyestinenl. In addition. the property nn S1 he in full cnnll?ilancc `., ills all lomWing. zoning and other applicable gocer-nnncntal rcgul nuns and all loan i0cumcnis mull h; approved h_a' Ibis LCTUICI'S ath?rncv 116010 Ihlr L.endcr s I L eel n clo,c '. on; Iran. )'OUR RESPONSIBILITY FOR CLOSING 11 file closln_e of this loan transaction I;uls (c) occul ,.,I.I q;rCC ;? h_? r;; ,;l„,i?,,,hi; I, •r I',I lepI Ices and other expenses of-(his m,znIulinn lilac arc incurred aQ ;1 rc ui! ul l„ncc ; this Inan. For file estimated amount Of ihesc fm and costs. please Icier Io the (.ro!r(I F,wIl Gslimale \011C.h has alread-.' been mailed to vow. You ,% III not he rc.,ponslhlc for Ihesc fees and costs if the Failure to close is due to the L.cnder's failtur;: if, conlplv'Auh its I'milenls set Forth in this conlnliurenl. I'hanl< you very much for till', npporuiml;, to h:_ of iCI'VICe. If', CU 118, C an%' clucs'inns c.I,IICCI nIIIL vour ioan. p!case do not hc.tiumc In call our ol-ficc. Sim Crci'.. I o I(CCIII fllk of Ter of if morlu:lu: loan, please',i_'n !1115 Iclicr II; the spaces ;,r„. ;d! (i hc!cm WIlcil %oil sign V0,11 IlailC. :• ul atuL„rcc !his f t:n;{cr I., :l;,rl %Aor!.: 11cl:c5sm\ li,r the Iran ;r;ln5,te(I„n EXHIBIT "B" PROMISSORY NOTE pfl ;Pltc Laan':f]i?xa Nlturi;y Loan N4 aii t col? Accattn# . CQI traits€ . References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing - * * " has been omitted due to text length limitations. Borrower: CODY A. CARBAUGH (SSN: 159-62-6119) 551 BISHOP AVENUE CHAMBERSBURG, PA 17201 Lender: COMMERCE BANKIHARRISBURG N.A. RESIDENTIAL MORTGAGE 100 SENATE AVENUE CAMP HILL, PA 17011 (717) 975-5630 Principal Amount: $126,000.00 Initial Rate: 8.750% Date of Note: April 14, 2006 PROMISE TO PAY. I ("Borrower") promise to pay to COMMERCE BANK/HARRISBURG N.A. ("Lender'), or order, in lawful money of the United States of America, the principal amount of One Hundred Twenty-six Thousand & 00/100 Dollars ($126,000.00), together with interest on the unpaid principal balance from April 14, 2006, until paid in full. PAYMENT. I will pay this loan in one principal payment of $126,000.00 plus interest on April 14, 2007. This payment due on April 14, 2007, will be for all principal and all accrued interest not yet paid. In addition, I will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning May 14, 2006, with all subsequent Interest payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any unpaid collection costs; and then to any late charges. Interest on this Note is computed on a 301360 simple Interest basis; that Is, with the exception of odd days in the first payment period, monthly interest is calculated by applying the ratio of the annual Interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by a month of 30 days. Interest for the odd days is calculated on the basis of the actual days to the next full month and a 360-day year. I will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index which is the Prime Rate as published in the Money Rate Section of the Wall Street Journal. If a range of rates is published, the highest will be used. (the "Index"). The Index is not necessarily the lowest rate charged by Lender on its loans, If the index becomes unavailable during the term of this loan, Lender may designate a substitute index after notifying me. Lender will tell me the current Index rate upon my request. The interest rate change will not occur more often than each day. I understand that Lender may make loans based on other rates as well. The Index currently Is 7.750% per annum. The interest rate to be applied to the unpaid principal balance during this Note will be at a rate of 1.000 percentage point over the Index, rounded to the nearest 0.125 percent, resulting in an initial rate of 8.750% per annum. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. Unless waived by Lender, any increase in the interest rate will increase the amounts of my Interest payments. PREPAYMENT. I agree that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be refunded to me upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, I may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve me of my obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due. I agree not to send Lender payments marked "paid in full", "without recourse", or similar language. If I send such a payment, Lender may accept it without losing any of Lender's rights under this Note, and I will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be 'mailed or delivered to: COMMERCE BANK/HARRISBURG N.A., RESIDENTIAL MORTGAGE, 100 SENATE AVENUE, CAMP HILL, PA 17011. LATE CHARGE, If a payment is 15 days or more late, I will be charged 5.000% of the regularly scheduled payment. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased by adding a 2.000 percentage point margin ("Default Rate Margin"). The Default Rate Margin shall also apply to each succeeding interest rate change that would have applied had there been no default. If judgment is entered in connection with this Note, interest will continue to accrue after the date of judgment at the rate in effect at the time judgment is entered. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law. DEFAULT. I will be in default under this Note if any of the following happen: Payment Default. I fail to make any payment when due under this Note. Break Other Promises. I break any promise made to Lender or fail to perform promptly at the time and strictly in the manner provided in this Note or in any agreement related to this Note, or in any other agreement or loan I have with Lender, Default In Favor of Third Parties. I or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of my property or my ability to repay this Note or perform my obligations under this Note or any of the related documents. False Statements. Any representation or statement made or furnished to Lender by me or on my behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished. Death or Insolvency. Any Borrower dies or becomes insolvent; a receiver is appointed for any part of my property; I make an assignment for the benefit of creditors; or any proceeding is commenced either by me or against me under any bankruptcy or insolvency laws. Taking of the Property. Any creditor or governmental agency tries to take any of the property or any other of my property in which Lender has a lien. This includes taking of, garnishing of or levying on my accounts with Lender. However, if l dispute in good faith whether the claim on which the taking of the property is based is valid or reasonable, and if I give Lender written notice of the claim and furnish Lender with monies or a surety bond satisfactory to Lender to satisfy the claim, then this default provision will not apply. Defective Collateralization. This Note or any of the related documents ceases to be in full force and effect {including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Collateral Damage or Loss. Any collateral securing this Note is lost, stolen, substantially damaged or destroyed and the loss, theft, substantial damage or destruction is not covered by insurance. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note. In the event of a death, Lender, at its EXHIBIT "B" PROMISSORY NOTE Loan No: 33332241 (Continued) Page 2 option, may, but shall not be required to, permit the guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Insecurity. Lender in good faith believes itself insecure. Cure Provisions. If any default, other than a default in payment is curable and if I have not been given a notice of a breach of the same provision of this Note within the preceding twelve (12) months, it may be cured if I, after receiving written notice from Lender demanding cure of such default: (1) cure the default within fifteen (151 days; or (2) if the cure requires more than fifteen (15) days, immediately initiate steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continue and complete all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then I will pay that amount. ATTORNEYS' FEES: EXPENSES. Lender may hire or pay someone else to help collect this Note if I do not pay. I will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, I also will pay any court costs, in addition to all other sums provided by law. GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania without regard to Its conflicts of law provisions. This Note has been accepted by Lender in the Commonwealth of Pennsylvania. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all my accounts with Lender (whether checking, savings, or some other account). This includes all accounts I hold jointly with someone else and all accounts I may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. I authorize Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts, COLLATERAL. I acknowledge this Note is secured by the following collateral described in the security instrument listed herein: a Mortgage or Deed of Trust to a trustee in favor of Lender on real property located in CUMBERLAND County. Commonwealth of Pennsylvania. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon me, and upon my heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Please notify us if we report any inaccurate information about your account(s) to a consumer reporting agency. Your written notice describing the specific inaccuracy(ies) should be sent to us at the following address: COMMERCE BANK/HARRISBURG N.A. LOAN SERVICING PO BOX 1195 CAMP HILL, PA 17011-1195. GENERAL PROVISIONS, If any part of this Note cannot be enforced, this fact will not affect the rest of the Note, Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them, I and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of timel this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. This means that the words "I", "me", and "my" mean each and all of the persons signing below. PRIOR TO SIGNING THIS NOTE, I READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. I AGREE TO THE TERMS OF THE NOTE. I ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: X1 T;ZT ?. _ (Seal) COD,". CARBAUGHJ, LASEA P -dms, V bALm00a C w airy -- 9.W.o n[ ,191. 1— .0 Pq,.n Rrr - . OA h ?w,w/.ws.LPw'ie,crMn.oxa IC -11- -II EXHIBIT "C" JUN-15-2006 15:21 FROM:CUMBERLAND I3s t? I? I'mVaid by: Fidddlly O mng 5er nect, Mc 2096 WR 25 PSI 12 35 141 Wenb Serena Park Rw, Suffc 2o3 Stets Cessna, FA 1 W3 Ronan to FWQv Ckeiut Savioos, LLC 341 MMh SpatoeParkR06d, SUke 203 S. Cotfom PA 16MI WnTmty Deed Thi's Indenture T0:18667327243 P:5'8 M$de this /</" day of C ; / , in the yUrtwo thouWA shr (2005). BEt11VP.irf1 C1401CE ONE COWANfES, INC, potty oftberm part, GRANTOR -and- CODY A. CARBAUGja a tingle man, of New Cumberland 13omugb, Cumbalutd County, Pennsylvania, pang oftha second pelt; G12AiNTEE Witnesseth, that inconsideration of ONE HUNDRED FORTY THOUSAND AND NOI100 (S 140,000,00) DOLLARS. in Iseult paid, the receipt whereofis hereby acknowledged, the said grantor does hereby ,grark and convey to the said grantee, his heirs and assigns; ALL that certain plea or parcel of land situate in the Borougb of new Cumberland, County of Ctmtberland and Commonwealth o0avasylvante, more particularly bounded and dacribed as follows, to wit: PARCEL #2: BEGMING at a point on the northern side of a cal-de-sae at the end of Carol Plato at rho southcastem corner of lauds of Gene ). and Eiiztbeth Tonto; thence by raid Trim land, North ihlrty-six (36) deE = fifty-six (56) minutes thirty (30) seconds East, a distance of one hundred mventy-coven and twenty-eight hundredths (177.28) Feet to a point at land of tbo Pamsylvaaoik Wroad Compw, tbeim by said land ofthe Petmsylvaria Railroad Company, South tbm -one (41) degrees tweary one (21) minutes East, a distance ofone htmdrad twenty dvro and thirteen hundredths (122.13) foot to a point; thence stiff along land of the Pennsylvania Railroad Compemy, South thirty-two (32) degrees fifty-eight (58) minutes East, a distance of one hundred twenty-six and fifly-tagbt baadredths 1 1 % ll ?Itl 'S A Wait 274 'E 861 o^ P. t ~ > S EXHIBIT "C" JUN-15-2006 15:22 FROM:CUMBERL.AND TO:18667327243 P:6/8 (126.56) feet to a point at land of Mmttt R I,ongneolu , those by 44id Lonpmckor tend, Sowh aineteeo (19) degrees thirteen (13) minutes West, a distance of eigbty-two and Wsk hundre tb (82.56) feet to a point at land of Claud H. Steigeranlt, Jr. and Esther N. Staigertvdt, Ids wife; them by said Steigetwalt land, North seventy (70) degrees forty-seven (47) min=1 West, a distance of one hundred (100) foot to a point; tbenee still along said 9telgetwtitt land, North seventy (70) degrees AM-seven (47) tahmes war, a distw= of one hundred twenty-theeandCartyhundtnd S(123.40)fcmthent:eabViltecui4a. sac at the end of Carol Place in a Northwestwartlly direction by a ourve to the left having it radius of fifty (50) feet, an art distance of sixty-eight and forty-sot hundredths (68,46) feet to a point at land of Goo A and Elizabeth Trian a, the place of beginning BUM in pan all ofLot No. 10 and the rttanirder ofLot No. 9 on a Piro ofLots for Westover Terrace recorded in Cumberland County Plan Book 7, Page 11, together with a portion of the land acquired by previous gnuftts In Cumberland County Deed Book 'A". Vohrme 21. Page 942. UNDER AND SUBJECT to all restrictions, mss, covenants, eortditio>ffi and agreements of record. Parcel IdcaUcadon Number 26-22-0620.102 BEING the acme premises which Elizabeth J. Ttiano. Trustee, of the Gene J, Triama Living Trust, and Elizabeth J. Trisao, Trustee of The Elisabeth J. Trim LMng Trutt, widow. by Hoed dated and recorded conteagwa aaara harewhh in the Office ofthc Recorder ofDeeds in and fiar Clambertaad County in DW Book Volume at Page , granted and conveyed unto doles, me mnisw imt, inc. AJ..SO EM NO a portion afthe same prep iaet svhiclt geese J. Triaw and Eizabeth ' nano, a/k/a Elizabeth J. Triwo, husband and wifb, by Dcod dated Marah2, 2001 and recorded March 7, 2001 in Ctttrtbaland Conzdy in Deed Book Vohtme 2,40 at Page 614, granted and cortveyad onto pens J. Triano and Elizabeth J. TAM, Trustety, or thou successors in trust under the Gene j. TAM I.ft Ttwt, dated March 2, 2001 and any w*endmcr43 tbcreto sad Etzabath J. Tt{ano and Gene J. Trieno, Trustees, or their snooessora in trust under the VbAbcth J. Triano Living Taut, dated March 2, 2001 aed any smandments tbemo. VNDSR AND $UBMCT to all rottric6ons, sawments, covenants, eor d SON Wtd agreements of record. The Scrivener of this deed is in no way certifying the status nftitle nfthe ahnvr. prv n+iers teed has not searched the records pettsi ft tbeeto. MY 274 PACE 862 JUN-15-2606 15:22 FROM:CUMBERLANO 70:18667327243 P:7/8 Together with all And sinPW the %Mwwuta, hmditatneaty and appurieesnm to the $amobelonging, or in tnywiseappertaizft andiherrveisionand reveniom remsinderaed remainders, rents. Issues and proft Owcot AND ,ALSO all for c0K right, title, interest, property, claim and dcownd wbatsocM both im law and cquity, of the Ur, pmr, of, nr, to or out of the said pre nines, and evay part and pucal thereof. To Have and to Hold tltc maid psemisq, with all and singnlacthe apptutt. unto the acid Grantee, his heirs and amsiom to red for the o*propar use and baboofofthe Grantee, his hefts and assigns forever. And the amid Grantor, ib heirs, waxWors, and administrators, do by these Monts, covenant, gram and agree to and with the Grantee, his brain mad wsgpts„ that d w acid GrAntor, its heirs, all and sinpuler the hartdita wow ad pretviees hv*n abvvm doscn'bW and granted, or montWivA and handed me to be, with the apputtmmnces unto the said Gramme, his heirs and astdgos, against the said Grantor, its bdrs, and splan all and every other person or portions, whomsoever, lawf* claiming or to claim the same or any part therooC sbatl and will, by these presents, WARRANT AND SPECIALLY FOREVER DRFEND the property bew, b ooweyW, In Witness Whered the said Grcntor has cauand its wrpotstt: meal to bo allured to this irwivurnont by the hand of andthesawtobcd* attested by its Secretary this ..1 dry of fArr 2006. ATTEST: CHOICE ONE CObRANIM INC. 4;-Mzz?- By:_ (C orate seal) SKTetary .. 67 CERTIFICATE OF RESIDENCE I hereby cratify, that the precise residua of the Gramee herein is as Nowa; 92 Carol Place New Cumbe tied, PA 17070 t .ursy rr Ass rr urwu COMMONWEALTH OF PENNSYLVAM ) firm 274 PQ 863 JUN-15-2006 15:22 FRM CUMBERLPM 70:18667327243 P:B/9 COUNTY OF CJA41L?A'n G1 AL on this the day of 2006, before me` the subscAm. s nonry public p $*-wly appewed Cr' ,c v who being duly swornaecord4to law, asys_ is a of CHOICE ONIE COMPAN NS. QIG; tbot the Seal to ft foregoing iomuaxut is the Mparate sal of tht: said CHOICE ONN COMMM4MM ]NG; that Wshe is authorized to so Sign for said Grantor, NO thm haMt &Xmd d ft same for tiro ptn = therein cortai md. IN WITNESS WHMREOF, I have hersuato at my had Rod of dal seal. -1.. L I ?1" la a -? troiRry itivnc aw COMMONWEALTH OF PIE,NNSYLVANIA j 56: COUNTY OF CUMBERLAND ) RECORDED io the 0frjcv oftheRncorder in and for Said County, in Record Book Volutne No, , Page _ WITNESS my Hand aw Official Sal this day of 2006, Recorder ofDeods M 274 PAIGE 864 EXHIBIT "D" 135 i?r, Parcel Identification Number: RECORDATION PA 12 35 REQUESTED BY: COMMERCE BANKMARRISBURG N.A. RESIDENTIAL MORTGAGE 100 SENATE AVENUE CAMP HILL, PA 17011 WHEN RECORDED MAIL TO: C.S- a cr'? PRINC:IPL.:SETTL,EME T-SERVIC S.I.LC 341 NORTH SCIENCE-. PARK ROAD SUITE 2O) Q STATE COLLEGE. PA 16903 SENLj I AA NV I Iota I V: COMMERCE BANKIMARRISBURG N.A. LOAN SERVICING 100 SENATE AVENUE CAMP HILL PA 17011 FOR RECORDER'S USE ONLY MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13. 18. 20 and 21. Certain rules regarding the usage of words Used in this document are also provided in Section 1 6. IAI "Security Instrument" means this document, which is dated April 14, 2006, together with all Riders to this document. (B) "Borrower" is CODY A. CARBAUGH. Borrower is the mortgagor under this Security Instrument. (CI "Lender" is COMMERCE BANKIHARRISBURG N.A. Lender is a Corporation organized and existing under the laws of the United States of America. Lender's address is RESIDENTIAL MORTGAGE, 100 SENATE AVENUE. CAMP HILL, PA 1701 1. Lender is the mortgagee under this Security instrument. (D) "Note" means the promissory note signed by Borrower and dated April 14, 2006. The Note states that Borrower owes Lender One Hundred Twenty-six Thousand & 001100 Dollars (U.S. 5126,000.00) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than April 14, 2007. IEI "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest. any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower, The following Riders are to be executed by Borrower [check box as applicable]: Adjustable Rate Rider El Condominium Rider 1 1 Second Home Rider Balloon Rider ; Planned Unit Development Rider Other(s) Ispecify] 1-4 Family Rider LI Biweekly Payment Rider (H) J "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders Ilhat have the effect of law) as well as all applicable final, non appealable judicial opinions. (1) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a Condominium association, homeowners association or similar organization. M "Electronic Funds Transfer" means any transler of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such form includes, but is not limited to, PointOl-sale transfers, automated teller machine transactions. transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. IU "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party father than insurance proceeds paid under the coverages described m Section 5) tor; 10 damage to, or deslruc nnn of, the Property: Iii! condemnation or other taking of all or any part of the Proper(y: (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to. the value andlor rendition of the Property. (M) "Mortgage insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (NI "Periodic Payment" means the regularly scheduled amount due for Gl, principal and interest under the Note, plus Iii) any amounts under Section 3 of this Security Instrument. (O) "RESPA•' means the Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 35001, as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument. "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage-loan" under RESPA. IP) "Successor In Interest of Borrower" means any party that has taken title to the Property. whether or not that party has assumed Borrower's obligations under the Note andlor this Security instrument. TRANSFER OF RIGHTS IN THE PROPERTY EXHIBIT "Il" PENNSYLVANIA Single Family-Fannie Mae/Freddfe Mac UNIFORM INSTRUMENT Form 3039 1101 Page 1 of 8 3R19b.7 ?., .;;76 MORTGAGE Loan No: 33332241 {Continued) Page 2 This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender, the following described property located in the County of CUMBERLAND: Real Property tax identification number is ALL THAT CERTAIN TRACT OF LAND AND IMPROVEMENTS SITUATE IN THE BOROUGH OF NEW CUMBERLAND, CUMBERLAND COUNTY, PENNSYLVANIA, MORE PARTICULARLY BOUNDED AND DESCRIBED IN EXHIBIT "A" ATTACHED HERETO. which currently has the address of LOT 10 AND REMAINDER OF LOT 9 CAROL PLACE, NEW CUMBERLAND, Pennsylvania 17070 ("Property Address"): TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and Interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash: W money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: la) interest due under the Note; ib) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shalt promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 Page 2 of 8 B9!9b7PGb,3, 77 MORTGAGE Loan No: 33332241 (Continued) Page 3 or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation. Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds of the time specified under RESPA. and Ibl not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an Institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA, Lender shall not charge Borrower lot holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. It there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. It there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges: Liens. Borrower shalt pay all taxes, assessments. charges, fines. and impositions attributable to the Property which can attain priority over this Security Instrument, I.-hold payments or ground rents on the Property, if any, and Community Association Dues. Fees, and Assessments, if any, To the extent that these items are. Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Bormwet: (al agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; IN contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which In Lender's opinion operate to prevent the enforcement of the lien while (hose proceedings are pending, but only until such proceedings are concluded: or Ic) soeures from the holder of the lien an agreement satisfactory to tender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien, Within 10 days of the date on which That notice is given, Borrower shall satisfy the, lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification andior reporting service used by Lender in connection wish this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage." and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance,. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender tequires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a onetime charge for flood zone determination, certification and tracking services; or (b) a one-time charge for hood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above. Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower. Borrower's equity in the Property, or the contents of the Property. against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall ha subject to Lender's right 10 disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. It Borrower obtains any form of insurance coverage. not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss Payee. In the event of loss. Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Properly. if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Properly to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be. undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed, Unless an agreement is made, in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other thiro parties, retainea by Borrower shat not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically Ic ibla or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then clue, with the excess, if any, paid to Borrower. Such insuranre proceeds shall be applied in the order provided for in Section 2. PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 101 Page 3 of 8 r-I Ulf 194 ! 1 r'f? !;' 1! 8 MORTGAGE Loan No: 33332241 (Continued) Page 4 If Borrower abandons the Property, Lender may fire, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. It insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender for failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If IS) Borrower fails to perform the covenants and agreements contained in this Security Instrument, lb) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Properly and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: la) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. It, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify Uttar risk, or reduce losses. These agreements ate on terms and conditions that are satisfactory to the mortgage insurer and the other party lot parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsures, any other PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1101 Page 4 of 8 9K 19?? 7PGlb? X79 MORTGAGE Loan No: 33332241 (Continued) Page 5 entity, or any affiliate of any of the loregomg, may receive (directly or indlrectivi amounts that derive from lot might be characterized asl a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. It such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share, of the premiums paid to the insurer, the arrangement is often termed "raptlve reinsurance." Further: (al Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. fbl Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other taw. These rights may include the right to receive certain disclosures. to request and obtain cancellation of the Mortgage Insurance. to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds: Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. if the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property. it the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would he lessened. the Miscellaneous Proceeds shall be applied to the sums secured by this Security instrument. whether or not then due, with the excess, if any, paid to Borrower, Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the, amount of the Miscellaneous Proceeds multiplied by the following traction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by fb) the fair market value of the Property immediately before the partial taking, destruction, or loss in value Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount OI the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the, sums are then due. It the Property is abandoned by Borrower. Or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim lot damages. Borrower fails to respond to Lender within 30 days after the slate the notice is given, Lender is authorized to collect and apply the MVsr:ellaneous Proceeds either to restoration or repair of the Property or to the sums secured by th.s Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or The party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal. Is begun that. in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to he dismissed with a ruling that, in Lender's judgment. precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order nrowded for in Section 2. 12. Borrower Not Released: Forbearance By Lender NOT a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including. without limitation, Lender's acceptance of payments from third persons. entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (bl is not personally obligated to pay the sums secured by this Security Instrument; and icl agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights And benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agreas to such reie,i,e in writing. Tho covenants and agreements of this Security Instrument shall bind (except as provided in Section 201 and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower lees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees. property inspection and valuation fees. In regard to any other fees, the PENNSYLVANIA-Single Family-Fannie Mae!Freddfe Mac UNIFORM INSTRUMENT Form 3039 1101 Page 5 of B 9X19?;?FIS £3Q MORTGAGE Loan No: 33332241 (Continued) Page 6 absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such tee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge she:[ be reduced by the amount necessary to reduce the charge to the permitted limit; and ib) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. It a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure, There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower, Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Lew; Severabliity; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (al words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 16. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 1B, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond tot deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days train the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and id) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (bl money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 1 S. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note Itogether with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will ren,ain with the Loan Servicer or be trauftried to a succe-su, Loan Servicer and are nut assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 Page 6 of 8 9K 1947PG488I MORTGAGE Loan No: 33332241 (Continued) Page 7 Borrower or Lender has notified the other party (with such notice given in compliance wnh the requirements of Section 151 of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken. that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: ial "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances. gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laves and laws of the jurisdiction where the Property is located that relate to health. safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c1 which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the, value, of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate, to normal residential uses and to maintenance of the Property linr.-ludmq. but not limited to, hazardous SltbstanCP.S in consumer products). Borrower shall promptly give Lender written notice of fa) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental ConrMion, including but not limited tn_ any spilling, leaking. discharge. release or threat of release of any Hazardous Substance. and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party. that any removal or other remediation of any Hazardous Substance affecting the. Property is necessary. Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration: Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement In this Security Instrument (but not prior to acceleration tinder Section 18 unless Applicable Law provides otherwise). Lender shall notify Borrower of, among other things: (a) the default; lb) the action required to cure the default; (cl when the default must be cured: and (d) that failure to cure the default as specified may result in acceleration of the sums secured by this Security Instrument. foreclosure by judicial proceeding and sale of the Property. Lender shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. If the default is not cured as specified, Lender at its option may require immediate payment In full of all sums secured by this Security Instrument without further demand and may foreclose this Security Instrument by judicial proceeding. Lender shall be entitled to collect all expenses Incurred In pursuing the remedies provided In this Section 22, including, but not limited to, attorneys' fees and costs of title evidence to the extent permitted by Applicable Law. 23. Release. Upon payment of all sums secured by this Security Instrument, this Security instrument and the estate conveyed shall terminate and become void. After such occurrence, Lender shall discharge and satisfy this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower, to the extent permitted by Applicable Law, waives and releases any error or defects in proceedings to enforce this Security instrument, and hereby waives the benefit of any present or future laws providing for stay of execution. extension of time, exemption from attachment, levy and sale, and homestead exemption. 25. Reinstatement Period. Borrower's lime to reinstate provided in Section 19 shall extend to one hour prior to the commencement of bidding at a sheriff's safe or other safe pursuant to this Security Instrument. 26. Purchase Money Mortgage. If any of the debt secured by this Security Instrument is lent to Borrower to acquire title to the Property, this Security Instrument shall be a purchase money mortgage. 27, Interest Rate After Judgment. Borrower agrees that the, interest rate payable after a judgment is entered on the Note or in an action of mortgage foreclosure shall be the rate payable from time to time under the Note. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: i COD Y ?RBAUGH - Borrower PENNSYLVANIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1101 Page 7 of 8 MORTGAGE Loan No: 33332241 (Continued) Page 8 CERTIFICATE OF RESIDENCE I hereby certify, that the precise address of the mortgagee, COMMERCE BANK/HARRISBURG N.A., herein is as follows: RESIDENTIAL MORTGAGE, 100 SENATE AVENUE, CAMP HILL, PA 17011 Attorney or Agent for Mortgagee (Space Below This Line For Acknowledgment] INDIVIDUAL ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA I 1 SS COUNTY OF \ ." h1) On this, the day of ??Q?f 20 before me the undersigndd Notary Public, personally appeare CORY A. CARBAUGH, known to me for satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he or she executed the same for the purposes therein contained. In witness whereof, I hereunto set my hand and o 1 eal. j? / s NOTARIAL SEAL _ MICHELE A. BLOUSE, NOTARY PUBLIC Notary Public in and for the State of York 7ivp., York County My Commiaslon Expires Nov, 29, 2008 uses vnoi.?e.,ev..s.si.m.ao.co?,..wMe r.M.. s.m?.. m,. ?w,i. roos. uwn??„w...s. r...rvx,uwr,vw?Mx.?,?n.oa rc mn.o_rn.., PENNSYLVANIA-Single Family-Fannie MaelFreddie Mac UNIFORM INSTRUMENT Form 3039 1/01 Page 8 of 8 SK E 947PG t 83 EXHIBIT "B" JUN-1S-2006 15:24 FROM:CUPt3ERLAND PR SERV?,s ,fi?R 26 PM 12 34 341 NORM M SCM ?7' RO 34r SCit:Nt?PARR SUM zo5 0 STATE COLLEGE, PA 16603 M r- 21Z- TD:1B667327243 P:5?8 Paned i#: 26-22-0820419 I= JNDEJC, made tho J3_ day of April, 2006, between ter- ABEZTI J. TRTANO, Snaaeasor Dma Timm andir brae FAMILY T7tWT e>?af wider d w GNM J. TRMNO ZIWG IZVST &W Mara 2, 29ol, and say eAreat& wrs td Owe, =d ELJZABAV.XW J. M11NO, TYwo* carder ike >9'EEUMTX I. ?'RLlNO LTVM TRUST dated Mari h 2, 2001, and my aaeesedrr me t wwo (iadiviiually?d and coijecdvely, the -OrMI&I and CODYA. CAMU UGI£, an adult Individual (the "Oraaoee'). VAMREASS, Gene J. Triaono and Elizabeth J. TdarA hud and and wife, became in tbev lifetimes seised, in fee, in s certain lot or plea of ground situate in the Borough aP New Cumberland, Cumberland County , Peansylvauda, as more paztiaularly described hereinafter (thc "lyrcmisac'j; arld W S IML41%?I Gene J. Triano sad Elizabeth J. Waco, by DW dated Much 2, 2001 and recorded Mmoh 7, 2001 in Record Hook 240, Page 614 in the Office of the Recorder of heeds in and for Cumberland Cotmty, Pemsylva ds, e;on qM the Premises as follows: a one-half undivided interest to Gem J. Triano ad Elizabeth J. Tdxwa Trustees, or their successors in trust, wader the Gene I Triano Living Tract dated March Z 2001, and any amendments thereto (the "OJT Trued and a onrrhalf undivided interest to Mimbeth J. 'piano and Gene J. TAano, Trustees, or their sue:txasors in trust, under the Elizabeth L Trlano Living Trust dated M=b 2, 2041, and any amendments thereto (tbe "FJT Trust"); and Wl1dr M , Gear X. Trim= died on May 18, 2004, whereby the one-half undivided intrieat in tho Premises owned by the OJT Trust was allocated and distributed to the ]!doily Trust created under the GUT Trust; and WHEREAS, Wh abeth J. Triano is vaned the Succenor Death Trustee of the Family Trust created under the GYTT Trust; and WNWAS, Elizabeth 3. Truro is the Swviv q TwAn of the WT Trust. Copies of the Cer i$cates of Trust axe M d by Elizabeth J. Ttiwo and Gent: J. Thane are attached horde as Exbibit "A". Neither the GJT nor the ETT Trust provides for the specific dewiee of the Wesre# Reid by each such Trust in the Preadsen. Both the OJT Trust and EJT Trust give Elizabeth J. Triano, Truster, the power to convey the mtesid held by out such Trust in the Premises upon such terms and conditions as she deem advisable. NOW, TAEREFOIltE„ THIS ENDENTURE WIN that the Grantor, for and in consideration of rite sum of FM HUNDRED FORTY THOUSAND AND 00/100 DOLLARS ($540,000.00), lawful money of the United States of America, unto her wQ and truly paid by the Grantee, at or before the seaSng and deftery bexeof, the reccdpt whereof is hereby acknowledgad, has granted, bargained and sold, released and eanfirmed, and by these presents does g=t, bargain and wIL release ad confrm unto the Grantee, his beers, pmwaal repm.SGniltive0 and assigns. W* 274 PACE 857 EXHIBIT "E" JUN-15-2006 15:25 FROM:CUMBERLAND Ac mowtedgemmt COMMONWEALTH OF PENNSYLVANIA COUNTY OF h1dam 124 70:18667327243 P:8/8 On this, before me, a notary public in snd for the Commonweeltb, of PemsyNack, the umdarsigned of m, pasonally appmtvd Elizabeth 1. Triaao, Trastec of the Elizabeth L Triano Living Trust dated March 2, 2001, and any amendments thorcto, and se Successor Death Tmatee of the Family Tma created uodcr the Gone 1. Triano Living Trust dated March 2, 2001, add my amadments thereto, known to me (or satisfactorily proven) to be the peraan whose mm is u6srnbed to the within insament and ackn owledpd that ahe extMe d tho same for the ptuposw therein contained IN WITNESS YAUREW, I hereunto ma my had and official seal. NOTARIAL. WAL MW"ME A. N1WM N4RAtt KWX yok?*P.Yoham* My (bnnnhMan e?pk.. Now2i,24oa Certifiete of Reddece I hereby ceatify that the p mdm residence of the Gmtees hem1p is as follows: e3 Caro] PI Rt e- &Qu1 0, AAm ler1tN J, P4 l70;10 Attomey for Grantee -6ijo 274 mof 860 EXHIBIT "F" PAC%. I.,OAN POLICY OFTITLE INSLiRANCE M UNITED GENERAI., No. 6 3 6 4 5 3 8 9 TITLE INSURANCE COMPANY S( EiJf':(`I TO llik_ L.XC(_(iSIUNS FRONT CC)VE--RAC,I_. `I lit: C XCIT'l IONS FROM C (1V[R.\(il- CON 1 AINIA) IN SCHF01- i..1. 13 \NiD I Hn: CONDITIONS AND S1lPULATIONS. (JNI11-1) C;1.\F:R:\(. I I FLE INSHCAXCL COMPANY. a 011101:l,t„ C0111,ratitm. hcaiin ,:dlid the Cllntttant. in,urc,, a, ill Date ill PuliCV ,hutrn in SehedulC I,,,, tit tLtntat i. n,it ,i itlm the :\nu,unt „I Itt,llfalick: +t;uit.l in Sihcdtdi :\. +u,t:nncd (it. in,:tmcd h\ titi: iii'mcd hg rea,un ol` I i Illi lit the i,t;ttt' 01 iI11iR'1t di,irrhCtt Ill SC11Cdt"': \ haul ' +,t,t:d (011'1 lit::( Al 11.11i,l :lariat Ant deliil ill 011 hCn ill encumhranco tin the title- LnwarLttahllit, ill [tic ti01r_ 4. Lack uta light (tl ;trio„ u.) anti Built the land! i Thi lnctllidnl. nr unenlin't Cahihtt tit the hits tit die tn,urrtl nt„rt 0'11'1 ul,IUt thc. 11110. f, the pfwim t,l ant iicn Itr.:(cumbrance mcr the lien till the in,(1fCd nu,rtl!a^1 ,rin ill the hen utthC ut,ured InungagC tic Lac)nl III nt ,tatulur. lien lur ,:1tI.C LLNII ,u ul.dillal I ;If it I'm' II-till) all I111111ttt enleltt Uf "k IT l'k ICI, it Cd tiI the I.i IId AI II C It I', . Ill t 11,0 I':'I II'I IIT It U, i;'r: 0.111 111 ntI l;, Dale Ill P(hi ,., 011 Ohl an,ur Irunn All nnpio%cmcm (Ir tent), iclalcd t„ 1ttt: land M11JI I, iunU:I tid II01 (: 1011MI niid ,uh,etlt.linl tit I)aIC ill Pnliet and Much i, fill.MCCd m lrhule ttr to hart h) ItrurCt•th ill the utdihtednC„ ,t:euriti ht the 11IMM'd nulW.aee teluCII at Dalc n) Pullin the ilt,tned 11:11 aduuuxd ur i, 0htillatcd u, ailtauCC: s I lie incahditt 111 mlollilrceahllirc tit ant x\\1211111011 nl ills 13i'mcd mott,_? r. plot Idol Ihi: I-q,,nntenl 1, 1110\tn in SAI'Llule A. 1,r Ili;: lailulc Ill thi 'I"I"rm0.nl hWMI Ill SCitc•tlOIC A In tc,l title It, Ihc: In1urCJ ,nrlote.:_:e ir. IhC r..:;ucLl tu.urt:d .I„I-nCe tree and (c:ai ill all IICrt,. -['lie C olllpan? '611'11,11 Ital. III,- itlnL . alturnet•' Tee, :i nd eepcn,e, Inclined tit dclcil,e I,( t1,; title Ill thi 1,:n ill lhi rtt,urCd In1+r[_'ar C. a, 1)1,11(x1, hilt dilly It, the c0clit pruatulc.d )n the Condition, and Snpulatwn,- Tini, pulic% liall no tic. cahd ill hlntlin' until plunlcl',i_'IICtI 11% 011110 a dull authuuied taunt ra ,'Itr::,int:nne t,t the Cunlpant and Sthcdule A ant) l.3 hate heen alaCIIC,l hcictit. In \1it it.,, \\Iicict I. UIIIICd ( 'AIQIa1 1100 IIhU1JI)iC Colllpallt ha> C;l11,rd n, iurp .1atc It.nnt 11- he I;.I;:moil I: if d h•. It, aUth(11" d to iii Cf, a, Ill I.)ule ,tl I'i,l1n hutl.n in Sc'llidulC A. L IFFE;D GENERAL, `I 'rLE: INSLAANC:E C:OItiIPANI' -.`f..?.i' UGT kl.rcr i??`. President sco- if t ALtA Loan ['(Ill,% 1I0l t 1)'_I 1'(il Film! No _,i0iIfF,_7V05l EXHIBIT 'Y' EXCLUSIONS FROM COVERAGE: The hallowing nlaue.rs are expressly excluded florin tine coverage of this policy and the Company will not pay loss or damage. costs, attorneys' fees or expenses which arise by reason :if: I. (at Any law. ordinance or governmental regulation trnecluding hilt not limited to huilding and tinting laws, ordinances. or regulations) restricting, regulating, prohibiting or relating to 6) the. (.rexupancy, use. Or enjoyment of the lend: (it) the character. dimension or location of any improvement now or hereafter erected oil the land: (iii) a separation in ownership or a change in the dunensions or area of the land or any parcel of which the land is or was a part: or (fv) environmental protection, or the effect mt any violation of these laws, i rdlnanccs or governmental regulations, except to the extent that a notice of the enforcement thercot or a notice of a defect. lien or encumbrance resulting from a viulation or alleged violation affecting the land has been recorded in the public records at hate of policy. (bl Any governmental police power not excluded by (at above. except to the extent iliac a naticc of the exercise thereul' or a notice Of a defect, lien or encumbrance resulting from a violation or alleged wilatimn affecting the land has been recorded in the public records at Date of Policy. Rights of eminent domdn unless notice of the exercise thereof has been recorded lit the public records al Date of Policv. but not excluding from coverage any taking which has occurred prior to Date of policy which would he binding on the rights of It purchaser for vatuc without know•ledee. -1 Defects. liens, encumbrances, adverse claims or other matters: tai created. suffered, assumed, or agreed to by the insured claimant. (h) not known to the Company. not recorded in the public records at Date of policy. but known to the insured clainnlnl and nor disclosed in writing to the Company by the insured claimant prior to tl'te date the insured claimant became an insured under this poi Ic v: IC ) resulting in no loss Ir damage to the Insured claonam. (tit auachutg or created iuhscquenl to Date of POIICy' (csccpl to the extent that this policy insures the pnorirv of the. licit of the insured mortc,age over any stalwnry licit fur services. labor or material), or le) resulting in loss or damage which would not have hecr, sustained if the insured claimant had paid value for the insured morteae 1 4. Unenforecabifity of the lien of the insured viort+age be In.sc of the i nahllip or failure of the insured at Datc of policy, or the inability or failure 't any subsequent itwner of the indebtedness. to cumply with applicahle doing business law's of the state in Which the land is situated. S. Invalidity or uncnfirecahihty of the lien of the insured rnurigage, or claim thereof. which arises out of the transaction evidenced by the insured mortgage and is based upon uiury or any crntsunler credit protection or truth in lending law. (i. Any statutory lien for services, labor or n1a[erials for the 0.11111 of priority of any statutory licit for services, labor or material; over the licit of (Ile insured I!tongagcl arising from an improv'emem or work related it) the land which is contracted for and commenced subsequent m Date of Policy and Is nut Financed In whole or in part by procseds of the indebtedness secured by the insured mortgage which at Date of I ilicvr the Insured has advanced err is obligated it, advance, 7. Any claim, which .iris s out of tlu u'ansl bun et milt, the Inns .t of the tilt retagce insured by this policy. by reason of Itie Opefati r n :J 1cdcra) h'an kruptc y. state ills olvcncy. nr similar creditors' rights laws, that is h,t,cd on (a) the transaction cteaung the interest of the insured morn tgce being tleerned it fraudulent conveyance or fraudulent transfer, or (b) the subordination of the interest of tine insured mortgagee :Is a result ill the application o1 the doctrine of equitable subordmahon: or (c) the transaction creating the interest of the Insured mortgagee being deen!ed a preferential transfer except where the preferential transfer rccults from the failure: (i) ma timely record the Instrument of trarOci; cr (ill of such recordation to Impart notice. to a plreltaier ltr' i!dll!: UI !1 judeniciii it lien creditor C0NDm1'IONS ANI) STIPULATIONS L DEFINITION OF TE W41S, The followutu Ictins when used im this policy mean (A) "insured": the insured named in Schedule A. The Tenn -'insured" also includes (1) the owner of the indebtedness secured by tile insured nnmgage and each successor in ownership of the indebtedness except a successor who is an obligor under the provisions of Section t'_Lcl of These Conditions and Stipulations [reserving. however, all nght and defenses as to any successor that the Company would have had against any predecessor insured, unless the successor acquired the indebtedness as a purchaser for value without knowledge of tine aisened derecl. hen. encumbrance, aclvcrse clan n err other mallet insured against by this policy :+s affecting title to the estate or interest in the land). (ill any government it agency or governntcnIA InStrUITIColahis, which is an insurer or guarantor under ail insurance contract Or guaranty iosunmg or guaranteeing the indebtedness secured by the insured mongage. or any part thereof. whether named a, an insured herein it nit: [iii[ the parties designated in Section 2(a) of these Conditions and StipulAnions. (hl 'InIl}red claiutanC an Insured Clainnine IOSor d 11nage (C) knowledge" Or "known' actual knowledge, nol Constructive knowledge. Or notice. which may be. iltlputed to an insured by reason of the public records as defined in this policy OF any other records which impart constructive notice of matters affecting the land. (d) "-land": the land described or referred t0 in Schedule A or C. and improvements affixed thereto which by law constitute feat property. fhe terns "land" does not include any property beyond the lines of the area described in referred to in Schedule A or C, nor any right. title, interest, estate or eascnent in abuUing streets. roads. avenues. alleys, lanes, ways or waterways. but nothing heieoi shall modify (r limit the extent tin which a right of access to and from the land is Insured by this policy. (C) "mortgage mortgage, deed of trust. trust deed. or other secunty instrument. (f? "public records"', records established under state statutes at Dale of Policy for the purpose of imparting constructive notice of (natters relating to real property to purchasers for value and without knowledge. With respect to Section I(altivl of the Exclusions From Coverage, -'public records" shall also include environmental protection liens filed in the records of the clerk of the United States district court for the distlict in which the land is located. (9) °unmarketabitity of the title": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage. which would entitle a pooch- of tile -estate or interest described in Schedule A or the insured mortgage to he released from the obligation to purchase by virtue of a contractual condition ?' Cli.YFi b[madtctabic title. igovf this poticy shall' continue' in who acquires all or any part of the estate or interest in the land by lorcclosurc, trustee. s .ale, cinnvcvancr Irk lieu of foreclosure., it other le,!al Inar ner which dicharges 410 hen of the Inured nturtgazr. (oil a transferee of the estate or imerC,l so acquired front an In>urcil caiporatiun. provided lire transferee is the Pirelli or wholly-owned subsidiary of the Insured corporation. and their corporate successors by operation Of hw and nett by purchaie, subject to any rights or defcrises the Company may (lave against any prod ce,sar insured,. and (iii) any governmental agency or governmental utstrumenial!ty wtodi acquires all cu any pan of the estate or interest pursuant to a Contr u:l tit n1{ur olnr guarawy insuring err gualallteelog the indeht do : .cc+u d b.. the in. ured n+ tt).a,le (b) After Conveyance of Title. I'llc coverage Of tlu, pillow shall continua in force as of Daale of Ptlbcy in tavur it an towed ;,nk 'rn11 t+ the Itcured retain; an estate or interest in the land. far holds an indebtedness e,ured by it purchase money mortgage given by a purctmsel from the insured. nr only ? lone it (he insured shall have liability by reason of covenants of ,,arranty made h} the insured in any transfer or conveyance of the estate or Interest. This policy shall nut continUc In Io(,:c in favor of any purchaser from the insured tit either tit an est:nc if interest in rho land. or i.it) an Indebtedness secured b•; a purcha nt ones m it lgv gl u T .l the insured tc) Amount of Iniuranee. The amount of in5urmcc after the acquisition err after the conveyalice ;hall Ill neither went ev.::ed the Ic-1 :a ill The Arnount of blitlr3IlCC ,feted nI Schedule A. (ii) the amount of the principal of .hc mldchwdncss s tocd by die insured mortgage as of Date tit Ptdii:y. inic•reo thereon. exp•n.rs of furecluiurc.. amounts advanced pursuant to the insured monea,_>c n+ it»nle Cunnpll,toCC with law's err to protect the lien of the insured tit mgagc prior to the hoIC 41 actpi 111 11 0I the estate err interest in the land and secured nhereby and reasomlble :unoul III expended to preWl)( deterioration of improvements. but reduced by the arnount of all payments made: or )iii) the amount paid by any gt:emmco,al a;tancl' or govcrmnent;d instrumentality, if the agency or instrumentality Is the insured clamant. In tlhe acquisition Of the estate err interest nI saiisfirction of its in ucurce contra.a or guaraniv 3. NOTICE OF CLAIM TO HE GIVEN Fit` AN INSI.'RED CLAIMANT. The Insured shall notify the company promptly in %ruing lit in case of any litigation :t% set forth in Section 4(ai he.lnw. tit( in case knowledge shall conic to an insured hereunder of any claim of title or interest which is adverse ill the title in the estate or interest or the lien of the insured mortgage. as insured, and which might cause loss or damage for which the Company may to liable by virtue of this policy. or iiii) it title to the estate or interest Or the lien of the insured mortgage. as insured. is rejected as unmarketable. If prompt notice shall not tie given to the. Company- (hen as tI the insured all liability of the Company shall terminate with regard to the matter or niatier for which prompt notice is required: pru•sided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudimi by the failure and then only to the extent ill tilprejudice 4. DEFENSE AND PROSECUTION OF ACTIONS: DUTY OF INSURED CLAIMANT TO COOPERATF. (a) .. Upon.:written:mquest by the insured .and subject. cp+ the, uptiom contained in Section 6 of these Conditions and Stipulations. the Company. it its own capt and without Conditions and Sti{xf pnreasottahle delay, shall provide for the defense of an Insured in litigation in which any third paty asscns a claim adverse if) the title' or Interest as insured, but 0111}' as m those. stated causes Of action alleging a defect, lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice isubjecl to the right of the insured it, object t,,-,r reasonable c2usel In represent the insured as ill those stated causes of action and shrill not 1. liable f i and will not pay the fees of any other counsel., The C.onipany will not pay ally fees. casts or expenses tncurred by the insured in the defense OI those causes of action xshich allege. matters not insurer' against by this policy. {h) The Company shall have the right, at its own cost. ul institute and prosecute any action or proceeding or m do any other act which in its opinion man' be necessary (it desirable tit establish the title u) the estate nI interest or the hen of the insured mortgage. as insured, or to prevent or reduce has or damage to the insured. The. Company may take any appropriate action under the term. if Ibis policy. whether or not it shall he liable hereunder. and shall not thereby cone de liahihrx or waive any provtSiOn Of this pxllicy. If the Company shall exercise its lights under ill., paragiaph. it .hall d0 so diligently. (c) Whenever the Company shall have hroughl all ai onn of uterpo cd a defense as required or permitted by the provisions tit fill policy. tilC n pang trial, pursue any litigation its final delerntinauon b? a court .it conpcienl puesdicnon and expressly reserves the right. in its sole discretion. tr appeal Item any AIVCT,c judgment or order. (d ) hl all cases where this polity' permits nr requmres the Comp any Ill prosecute or provide for the defense of any action or prixeiding., the insured hall secure In the Company the right to so prosecute or provide defense in the action (it pio eeding, and all appeals therein, and pernitt the Company Ill use. al its opuon. the name of the uasured fir This purpose. Whence r requested by the Ctnip,nhr, the nnsureci AT the C.'ompa n's expense, shall bloc the C. n Pam all r eason l I :std oil ill :ml, aotinn or proceeding, securing evidence. obtaining % iincssc.. prose uttng of dclending the action of proceeding. of effectiu eulern nt. and ill) In any utter lawtitl act which in the opinion of the Coniparfy may be lecessaaly' tit desrable to c'13111101 the titic to the estate ur interest OF the lien of the insured nfongaVc. as insured. If the Company is pieludiced by the failure of the insured to furnish the required cooperation, the Company's ohlieaiions it) the insured under the policy shall ienninate, including an\ hahikiN or Ohligafion to-defend. pitisecuic, or continue any limia ion, ixlth regard fit The matter tit matters ictlion ra such cooperation. 5. PROOF OF Loss OR DAMAGE. In addition To and after the nolico. requited under Sd tion ' of dt sc• Condition. ' and Stipulation., have been pilloried the Comp ant .:1 proof of loss i l.rnag signed and sworn tit by the insured claimant shall he Iumiche.d It, the Conap any within 90 clays afict the insured claimant shall ascertain the facts giyin.g r'INe lit tilt loss or damage. Tile pro of of loss or darn tge shall describe the detect in. Or lien or cn unlbrance on the title. Of other matter insured against by tilts policy which C )nstit.res the basis of loss or damage and shall slate, to the extent pos Bible, the hasis o1 dculatinx. file mtaotim of the loss if damage. If the C ornpany is p i fri i(ed h\ the holur of the in. used cl:l ntam to provide the required proof of lass of damage, the Company', uhliealtotb It, the Insured under the policy shat) terminate. including all., liahllitv or tbheltion al defend. prosecnc. or eununue arty litigation. wfill regard I,, the matter )T manors requiring such puxlf of 1,i-,s or damage lit aekhtioil. the inured claimant max le sonahb it, required It) submit to CXanlInaho» urelCT oath by any authorized nprescnCtt\e of tare Conipans and shall produce for examination. tnspectton and copying. at Ntnll reaNonab Ie times and places as may he designated by any aulhorued repfesentau%e tit file C'Ofnpanx. all records. books. ledgers, checks. correspondence and nlernmanda, whcdfct bearing a date before. or after Crate. Of Policy', which reasonably pcnain to the loss tit damage. Further, if requested by any authorized representative of the Conipany. life insured claimant shall grant as permission, in writing. for any authorized rep eceniauye of the Company tit examine. inspeci and copy all records. milks, ledgers. checks, concspondence and memoranda in the custody or ennuol of a third party. which reasonabl\ pertain fit the loss or darnale. All information designated as confidential by the insured claimant provided tit the Company pursuant to this Section shall nni le disclosed to ofhers unless. in the reasonable judgment of The Company if is necessary tit the administration of the claim- Failure of the insured ciaonani ul submit for examination under ,):nil produce tither reasonably' requested infonnafton ur grant permission t0 secure reasonably necessary information from third panics as required in this paragraph the anhcss prohibited by law or governmental regulation. shall terminate any. liability of th Company under this policy as to that claim. 6. OI'I'IONS T•O PAY OR OTTIERWiSE SE'ITLE CI 1INIS: FERMINATION OF LiABIL11Y. In case of a claim under this policy. the C OlTlpany shall have the followm additional options: far To Pay or Tender Payment of the Amouni of Insurance or to Purchas the Indebtedness. (i) to pay or tender payment of the arnount of insurance under this polio together with any costs, attorneys' fees and expenses Incurred by the insured claiman which were authorized by the Company. up in file time of payment at tender payment.and.which the Company is obligated to pay: or (if) to purchase the indcblednes5'secured-by the insured mongage for t amour owing thereon together with any?c(Ms. :rurmeys rtes ;nd clpcnses incurred x {ations (Conlinued) Illy Insured claimant which were. authorized by the Company up to the time of purchase and which the Company is obligated 10 113y. If the Company offers In purchase the indebtedness as herein provided, the owner of the indebtedness ball transfer. assign. and convey the indebtedness and the insured neingage, together with any collateral security. To the Company upon payment therefore. Upon the exercise by the Company of either of the options provided for in paragraphs art) of poly. all hahiltly and obligdto.ns to the insured under this pokey. other than to make the payment required in those paragraphs. shall Terminate. Including any liability or obligation it, deli:nd. prosecute. or continue any litigation. anti the policy shall he Surrendered ul the ('ornpany for cancellation. (b) 'To Pay or Otherwise Settle With Parties Other 'T'han the Insured or With the Insured Claimant. (t) to pay or otherwise settle with ntheT parties fm' cr in the name of an insured claimant any claim insured against under this policy. together with any costs. auomeys' lees and expenses tncurred li' the insured clainlam which were authorzed by the Company up To the lime if payment and which the Company i. c,hGgatgd n pan: nr (it) In pay or .:+tnerwise settle: with the Insured clainfa 1 the Inns or damage provided for under llus policy. t eter '.kith arty' co.T\, alloITIe'x4 fees Ind expenses incurred by the insutecf claimant which were aulhonzod h° the Company up to the lime of pilynlcnl and which the Comp my is ohliE tied to pay. Upon the exercise by til C'oinpant of either oI the option, pwNided for of paragraphs NII Ot Iii). the Company's ohligafions tit the insured under this policy for tike claimed loss or damage, other than The payments required to he made, shall ternlinalc. including any liat llim. uI ollheation to defend. prosecute or continue any litigation 7, DEFER INA11ON' AND EV1'ENT OF LIAMIt•T'Y. 'This policy is it eontaet of indemmlk against actual nlnel u'y loss kit damage sustained of Incurred bk firm insured claimant who ha suflered I) ref damilpc by reason of mTatters m tit d .tc.nn• t by Ihr policl, and ?nl% Ul the extent h r n described. (a) The fiahilr\ of the C: lnlIVIl undo 1111, poII \ shall not exceed the lead .+f ill the :'mount of Insurance stated ill Schedule A. or. of applicable. the amcluiit of insurance a< defined in Section ?(c) of Thew Condition.. amt Stipulalhnis: (it) the amount it file unpaid principal TtadChICdn('sf. >eCUTed by1 the insured mortgage as limited Or provided under Section S of these Condiuuns and Stipulations (u as reduced under Section 9 of these C ondiiiiins and Stipulations. at the time the loss of damage insured ag'an t by this pThcy occurs. togelhcr with interest thereon: nr (fill the chtterenee between the value Of Tile Ithurcd e1Wle nr INefcsl as innufed and the k'altie ill file insured estate of Interest suhitwi to ore defect. tier, or encurnbrahcc Tnsumd il,.mr n,l by Tills pttllk y. (b) In the eeent the insured has acquired 01 or unerti'st In The IlLoolcf described in Section _'(a) of These C ondiuuns and 5111-1-11ions. or has conveyed file title. then the liability tit the Company shall continue as set fonli in Section 7(a) tit these Conditions and Slipulations- (c) 'The Cnnapanly will pay only thou, cats, anomeNS' fees :rnd expenses incurred in accordance with Section d of these. Cntlintons and Stipulations 8. LIMITATION OF LIAI)II ITY. la) if the. Company establishes the lisle, or removes The alleged detour. lien rn encumbrance, or cures the lati of a right of access tea of from lilt. land. and, oT cures the claim of unmalketahility. of title. nr otherwise e cahltshes the lion of the insured nTinL'age. all as Moored. in :f reasonahlr diligent manner Ill, ;any method, including, Irtlgalikin anti the completion of any appeals therefrom, it shall have fully perforTned its obligations with peeped I.) that m:mer ;and shall nor to liable lily any b)ss or damage caused thereby. lilt lit the event of any litigation. including litigation by the Company or with Ihr Company's con:clu, life COTopany shall have no liability for loss or damage tnlil there has been a final delerinination by a court of compelent juri>dictimi, and disposition of all appear therefrom, adverse In file title nr to the lien of the insured mongake. as insured (c) The Company shall not he liable tot loss Or damage pis any Insured for Iiabihn. yolunkiAlk assutned by the insured in settling arty claim or suit without the prior carmen consent of the company. Ulf The Company :hale not h r liable for: it) any indebtedncsa created suhseyuenT to Date of policy except hx advances trade if) protect the lien of The insured mortgage and secured thereby and reasonable amounts expended to prevent deterioration of i inipfo,clnents. If lilt corimnactitin loan advances rnade subsequent to Date of policy. except const.ruclion loan aefya»ces made subsequent to Date of Policy for the purpose of financing in whole .+r in pan the ennstruclion of an inaproyemenl to the land whch tit Dale of Pciicy' were secured by the insured mortgage and which the insured was and continual to to obligated to advince at and after Date of Policy, 9. REDUCTION OF INSURANCE.: REDUCTION OR TERMINATION OF LIABILITY. fa) All payments under this policy. except payments made for costs. auorncys' g fee,, and expemes, shall reduce the amount of The insurance pro tanio. However. any payments made prior to the acquisition of title to the estate or interest as provided in e Sec'tion'lal of the'se' Condifmins and Stlpalalions Shall not reduce pro Canto the amoum of the insurance afforded under this policy' except to the extent that the payments reduce file y amount of the indebtedness secured by the insured mungage. t. (b) Pavni nt in pan by am person of the principal of the indebtedness. or arty of Other obligation scoured by the insured mortgage, or any voluntary partial satisfaction (it release of the insured mortgage. to the extent of the payment, satisfaction oT release. shall he reduce .the.amount.uf..i.nsurancr.,pro t.anto. 'Me amount of insurance may thereafter be by increased bs' accrifin,v inae,rst and advances -made In protect the lien '(if-the insured mortgage and ,cued therehs. ,.!P: rst !hcre/m. provided in no evm shall the anxruni of insur:mee he grea!el than Chi, Antolini of Insurance stated in Schedule A. Ic} Payment in full by any person or the voluntary satisfaction or release of the insured mortgage shall terminate all hahihty tit the Company except as pr.omded in Section J(ai of che.ee Conditions and Stipulanom. 10. LIABILITY NON( UNIULATIVE. If the Insured aCqutreS title ill the estate ns ;ntcrest in satisfaction of the mdehredness secured by the inured moru.•age, on am part thereof. it is. expressly understood that the :amount of inkulam:e under this policy shall he reduced by any amount the Company may pay under any pOliC% Insuring a mortgage to which exception is taken in Schedule fi or to wMch the Insured has agreed. assumed. or taken subject, or which is hereahea' executed 11 5' ;ml insured and which 15 it charge or lien on the estate or interest described or rcfCrred hr in Schedule A. and the amount w paid shall he decried a payment under this policy. 11. PAYMENT OF LOSS. ta) NO payment shall be node ,1d1ow i nclucing this policy for endunenrent of the payment unless the policy has been lust ,it de,uoyed. in which ease proof of toss mr destruction shall be furnished n) the :ailstacurn of the Company. Ili) When halnlrty and the r',Iem ,4 loss it damage has been definitely fixed in accordance w%!h these Con,1111m), and sfllmhllmn,, the IO,s mr daoaee shall he payable within 30 davs thercafus. 12. SURROC:.ATION UPON PAVWNT OR SETTLEMENT. fat 'The Company's Right of Subrogation. Whenever the Cump:ml simll hw v ended and paid it claim under this policy. all rl;-ht of iuhrogatton shall yesl an The 4..•,npanm unallec ed by any act it the insured Cle;rnanr. The (.'mnpanc half he si,No led n, mod he entitled to all righrs and remedies ,inch the trt,ured i a inam uot.dd have h- vv.,itmt alit, person in prufxaty in respect to the ,lama h„Ci Ito, I.-b,, n,a hrer. ,sync it tii)u..•.t.d hs Ore Company. the insured claimant shall ocrosfcf in the (.'nmpam all rghis and ferrredaes against arty I)ersarr or prmpeny ne.es,;1n Ill older n0 perle', thl, right of subrroganun The insured cla;ntam shall permit the Contp;trly to sue. cnmprrnnfse or settle in the name Of the insured Claimant and 1" u4• the name of the inwred claimant in any uansactfon or litigation Irr"Oving. these rights or rented e,. If a payment nn aCO:iiun: Ot a : I:no doe, nut fully carver the loss of the insured clalfwinf. the Cumpane shall he ,uhf ... t d to all rights and remedies at the insure(] ChIlo:1111 after tau I.tsrr1C11 clainl:mt Iecr .eyed as principal. interest. and costs r?l Collect ion. ib) '[tae Insured's Rights and Limitations. Nolwithstandni v the ture••nrne. the ownel of the indebtedness secured by rile inswed rnorgave. prtr•,•Ided The Iniont, OI the lien M the insured mortgage ax its enforceahilm i, not affected. n1a, retea,e nr ,mhsntaale the personal liability of any debtor it vuerannn. rn extend in Olherwlse an01ill\ the terms of payment, or release a portion of the estate m mte,c,r from Die lien of the insured mortgage, or release any ,•olkueral serurny fen file In 1rhTedtes, yy-hen dhe perttrmed tin nl the m,med CI.MnZon occur and the insured has knowledge of :In, Cloln! ,11 II!ie M mdere,t ad, cn<r to the tole to the estate or interest or the rnwrity Or cnforre;ohllrn 01 !hC h(•n of file m,ured mortgage. a, insured. the Con[panr ,hall he required w pal i,nk :h. !t pan Ot arty losses insured aganim by this policy "Inch chat) c,recd rho amarnnt. ,f ;,,v, her to the Company by reason of the Impairnemt hl the or,ured Cl..!Tr:111t it the Contlian\ s right of suhrugaticn. Irl The Cornpam's Rights Against Non-im mired Obligor. The Company's right of <uhn•cation against non-insuried Obligors shall exist and shall iiiclude. without lioutatinn. the riehh of the insured to indemnities. _uaranues, other policies tit insurance on bond,. nntw;thstandine any terns or conditions contained in those ioNrrnerrrs ,rhich prory;dc f„r suhro nitiin m his by reason of this pidii Tote Compan) , ri_in of sahrnpa!ioo shall not be nenided h. aCquisiTl1nl of the insured mortgage by all idrhgor Ieicept an ohligur described in seChon laatrii) A :hi•,e Conditions and Snpulatirnsl who acelaire, the insured morteage a,. a re,uh of ?n mclemnity. guarantee, other polies of insurance. or hand and the nbfigor will nor 1-.c ;in insured under this policy. nomiEllstnndim: section li:ufi) of these Cononum, and Stipulation,. 13. ARBITRATION. Unless prohibited hr applicable law. either the Company tit the ,msmrcd ma, demand arbitration pursuant to the Tide Insurance Arbitration Rules of the American Arbitration Association. Arbitrable martens may include, hill are not Innned to. an, comitnersy nr claim hetween the COmm,rlc and the insured arising out of a rehiring n, this pulic}'. any service of the Company lit connection with its issuance rrr the breach of :1 policy provision or ether obligation All arhnrable matter's when the Amount of fnsa.arance ;s C I.fk1l.1.INN1 of less shall he arbitrated :it the option Iif either the Company tit the insured. All arbittahlr malign Mien the Amount of htstnalne is in e.scc,s of S1.0f10.W0 shall ire ambiwlivil oil, lien agreed to 1, %. both the Conopan, :and the in,wed Arhitralicin paryuant t(a this policy and under the Rules in effect tin the door the demand for tabitralion is made or. at ihr option of the insured. the Rules in effect :t ])ate of policy shall he binding upon tire, parties. The award may include au Orneys' lees nmis if the laws of the state to which the land H Imaied permit a court to award aw,rneys' fee, t., a prevailing parse. Judgnxnt upon Ibe award rcndercd he die .Arhuruotisa mar he entered ;n any iOOrt hacine jurisd;: n"i thereof. 11x' law of the situ, of the Rand shall appl, w an ;.,rhm anon ,India the I rtlc: Itlvw nice arhiuauon kale, A ropy of the rules may be obtained from the C.'nmpanr upon rcque,,l 13. LIABILITY LIMITED TO THIS POLICY: POLICY ENTIRE: cowft \c'i . fat Ibis policy tueether with all endorsements. it am. anached hereto h, tilt Company is file entire policy and contract hetween the insured and the C'ompam. Ill interpreting any provision of thi, policy. this p, icy shall he conan-ued as a whole (bi Any claim Of lose of dnrnmve, whether tit not hakced on neelieence.: and which arises out of the cloth, (if the lien of the insured mortgage m of the bolt to the c,tmc r interest COMCd hereh, in h, :tit, .aci n a,serting ugh claim. hall he w,mc'fed u, Chi, policy. fc) N,r anrendmenl A n1 ndoi-niew to this p„l;<, r;in he made o!,cepi Ir, writing endorsed hereon or ;in;., tied herein gmcd by either the Pre,nlem, , Vlce President, the Sccretan. an A,.,,tant tii:s.rceir,, or s?alidahns' officer nr .authoried signalorV of the Company 15. SEVERABILITY. In the event any pn:vision of Ihi, pOll" ;, held in, Aid or unellj mceahlc under applicable paw. the pohcy shall be deemed not to include that proyl,wn and all ether prc,y;,ions Shall remain in toll force and eflrct. lb. NOTHT-S. WHERE' SENT. All notices required to he given the Company and ;my statement tit wriutg rcyuned h) he furnished the Qrnpan, shall include the number of (his pohcs :and ,h:dl he addressed in the Company at 1' () Box 1690 D Oyer Colorado 107])) Y C_ y z ~ ,?? I c `a 0 ar z . a _ r 7, Oc a.d lint ty ''•i ' ? 4 C O C C ^r ter ? ? . ? Y ar. 3A ' ? -- v 1 r???r yv J r y 0 z UNITED GENERAL TITLE INSURANCE COMPANY LOAN POLICY SCHEDULE A Policy No.: 63645389 Date of Policy: Premium: 04/25/06 at M. $ Amount of Insurance: $126,000.00 Agent's File No.: Simultaneous Issue with: Amount of Reissue Policy: CM5-209 $ 1. Name of Insured: Commerce Bank/Harrisburg, N.A., its successors and/or assigns. 2. The estate, or interest in the land which is encumbered by the mortgage is: Fee Simple 3. Title to the estate or interest in the land is vested in: Cody A. Carbaugh 4. The insured mortgage and assignments thereof, if any, are described as follows: Mortgage executed by Cody A. Carbaugh in favor of Commerce Bank/Harrisburg N.A., dated 04/14/06 and recorded 04/25/06 in Official Records Book 1947 at Page 4876, of the Public Records of Cumberland County, Pennsylvania, in the original principal amount of $126,000.00. 5. The land referred to in this policy is situated in the county of Cumberland , the state of Pennsylvania , and is described as follows: _ EXHIBIT "A" LECaL DESCRIPTION ALL that certain piece or parcel of land situate in the Borough of New Cumberland, County of Cumberland and Commonxelath of Pennsylvania, more particularaly bounded and described as follows to wit: See Continuation Sheet Valid only if attached to ALTA Loan Policy and Schedule B of United General Title Insurance Company. ALTA Loan Policy Schedule A UGT Foml No. 251 (7/31/00) (07103 DisplnySoR 64-WTN-p®-LOANA) UNITED GENERAL TITLE INSURANCE COMPANY CONTINUATION SCHEDULE FOR USE WITH COMMITMENT OR POLICIES SCHEDULE -A 5 (Continued) Agent's File No.: CM5-209 Commitment No.: PolicyNo,; 63645389 PARCEL #1: BEGINNING at a point on the northeasterly side of Carol Place, which pint of beginning is a distance of five hundred twenty-four and thirty-four hundredths (524.34) feet from the north end of an arc of a curve having a radius of sixteen (16) feet connecting the northern right-of-way line of Carol Street and the eastern right-of-way line of Carol Place; thence North thirty-six (36) degrees fifty-six (56) minutes thirty (30) seconds East, a distance of one hundred seventy-seven and twenty-eight hundredths (177.28) feet to a point; thene North forty-one (41) degrees twelve (12) minutes West, a distance of one hundred twenty-two and twelve hundredths (122.12) feet to a point; thence South forty-eight (48) degrees twenty-nine (29) minutes West, a distnnce of two hundred sixty-one and seventy-nine hundredths (261.79) feet to a point; thence South fifty-four (54) degrees thirty-two (32) minutes East, a distnace of one hundred twenty-two and two hundredths (122.02) feet to a point on the northwesterly side of Carol Place: thence along the line of Carol Place by a curve to the right for a radius of fifty (50) feet, an arc distance of seventy-nine and eighty-two hundredths (79.82) feet to the point and place of BEGINNING. BEING all of Lot No. 8 and part of Lot No. 9 on the Plan of Westover Terrace, New Cumberland Borough, Cumberland County, Pennsylvania, as recorded on February 21, 1955 in the Office of the Recorde rof Deeds of Cumberland County in Plan Book 7, Page 11. Parcel Identification Number Continuation Schedule UGT Fomi No. 155 (7/31/00) (07-403 DisplsySoR 64•WIN•pad.AANACON5) UNITED GENERAL TITLE INSURANCE COMPANY LOAN POLICY SCHEDULE B-I EXCEPTIONS FROM COVERAGE Policy No.: 63645389 This policy does not insure against loss or damage and the Company will not pay costs, attorneys' fees or expenses which arise by reason of PART I 1. Rights or Claims of parties in possession not shown by the public records. 2. Easements or claims of easements not shown by the public records. 3. Discrepancies, conflicts in boundary lines, encroachments, overlaps, variations or shortage in area or content, party walls and/or any other matters that would be disclosed by a correct survey and/or physical inspection of the premises. 4. Any lien, or right to lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public record. 5. Taxes or special assessments which constitute liens or are due or payable including unredeemed tax sales. Item(s) numbered ALTA Loan Policy Schedule B-1 UGT Form No. 252 (7/31/00) above art hereby deleted. (OW03 DisplaySOfl 64-W N•pa-LOA.NRI) UNITED GENERAL TITLE INSURANCE COMPANY ENDORSEMENT Attached to and made apart of Policy Number 63645389 File Number CM5-209 The Company insures that the covenants, conditions and restrictions affecting the title to the land contained in have not been violated and that future violation thereof will not cause a forfeiture or reversion of title. As used in this endorsement, the words "covenants, conditions and restrictions" shall not be deemed to refer to or include any terms, covenants, conditions or limitations contained in an instrument creating a lease. As used in this endorsement, the words "covenants, conditions and restrictions" shall not be deemed to refer to or include any covenants, conditions or restrictions relating to environmental protection. This endorsement is made a part of the Policy and is subject to all of the terms and provisions thereof and of any prior endorsement thereto, except that the insurance afforded by this endorsement is subject to neither paragraph 3(d) of the Exclusions From Coverage nor paragraph 8(b) of the Conditions and Stipulations. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the Policy and any prior endorsements,. nor does it extend the effective date of the Policy and any prior endorsements, nor does it increase the face amount thereof. INW[TNESSWHEREOF, United General Title Insurance Company has caused this endorsement to be issued and become valid when signed by an authorized officer or licensed agent of the Company. UNITED GENERAL TITLE INSURANCE COMPANY GLOBAL SETTLEMENT & CLOSING, f. By: J Authorized Officer or Licensed Agent TIRBOP- PA ENDORSEMENT 100 (Restrictions -No Apparent Existing Violation) (Revd 03/01/00) LOAN POLICY ONLY (07.'03 Di?plsysofi 64-WIN-pd-PA 100) UNITED GENERAL TITLE INSURANCE COMPANY ENDORSEMENT Attached to and made apart of Policy Number 63 645389 File Number CM5--209 The Company eliminates from its loan policy the exception reading as follows: [ I and further insures, except as set forth above, against loss by reason of encroachment, other than by party walls, whether by the building on the land encroaching upon adjacent property or by any building on adjacent property encroaching upon the said land. This endorsement is wade a part of the Policy and is subject to all of the terms and provisions thereof and of any prior endorsement thereto, except that the insurance afforded by this endorsement is subject to neither paragraph 3(d) of the Exclusions From Coverage nor paragraph 8(b) of the Conditions and Stipulations. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the Policy and any prior endorsements, nor does it extend the effective date of the Policy and any prior endorsements, nor does it increase the face amount thereof. IN WITNESS WHEREOF, United General Title Insurance Company has caused this endorsement to be issued and become valid when signed by an authorized officer or licensed agent of the Company. UNITED GENERAL TITLE INSURANCE COMPANY GLOBAL SETTLMONT & CLOSING, LLC By: Authorized Officer or Licensed Agent TIRBOP- PA ENDORSEMENT 300 (Mortgage Survey Exception) (03/01/95) LOAN POLICY ONLY (07N3 DisplaySoft 64-LVIN-pn-FA300) UNITED GENERAL TITLE INSURANCE COMPANY ENDORSEMENT Attached to and made apart of Policy Number 63695389 File Number CM5-209 Issued to: Commerce Bank/Harrisburg, N.A., its successors and/or assigns. The insurance afforded by this endorsement is only effective if the land is used or is to be used primarily for residential purposes. The Company insures the insured against loss or damage sustained by reason of lack of priority of the lien of the insured mortgage over: (a) any environmental protection lien which, at Date of Policy, is recorded in those records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge, or filed in the records of the clerk of the United States district court for the district in which the land is located, except as set forth in in Schedule B; or (b) any environmental protection lien provided for by any state statute in effect at Date of Policy, except environmental protection liens provided for by the following state statutes: (NONE) This endorsement is made a part of the Policy and is subject to all of the terms and provisions thereof and of any prior endorsement thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the Policy and any prior endorsements, nor does it extend the effective date of the Policy and any prior endorsements, nor does it increase the face amount thereof. IN WITNESS WHEREOF, United General Title Insurance Company has caused this endorsement to be issued and become valid when signed by an authorized officer or licensed agent of the Company. UNITED GENERAL TITLE INSURANCE COMPANY GLOBAL 3ETTLEMNT 6 CLOSING, LLC By:w4d-al- A,.? Authorized Officer or Licensed Agent TIRBOP- PA ENDORSEMENT 900 (ALTA Endorsement $.1) (Environmental Protection Lien Endorsement) (03/01195) RESIDENTIAL LOAN POLICY ONLY (07/03 Displey8ott 64-W N-pn-ALTARI) EXHIBIT "G" Commerce eWaf* luh, 7. 2006 United General Title Instnance Company Bailey Center 11 135 Technology Drive, Suite 501 Canonsburg, PA 13517 .-attention: Dave McMaster Re: Insured: C'onnnerce Bank/ Harrisburg, N.A. Mortgagee Title Insurance Policy 463645389 Our Account No: 33332241 Dear Mr. McMaster The undersigned represents Commerce Bank/ Harrisburg, N.A. in its claim under the above-referenced mortgagee title insurance policy issued by United General Title Insurance Company. dated April 25,2006. In accordance with Section 5 of that policy. enclosed you will find a copy of our Proof of Loss and Damages in support of our claim. Demand is hereby made that your company within thirty (30) days of the date of this lever issue payment to this office on the claim by draft in the amount of $ 126,000.00 made payable as follows: "Commerce BankfH31risburg, N.A." I f you have any questions regarding the foregoing, please do not hesitate to contact the undersigned. Sincerely, COMMERCE BANK/HARRiSBURG, N.A. Angela A. Masser, Vice President Enclosures A.AN1 ma Commerce Bank 1 Harrisburg. N.A PO Box 4999 3801 paxlon streel Hamsbur9. PA 171110999 cofflmelcepc Corn EXHIBIT "G" Ili the Matter of Commerce Bank/Harrisburg, N.A., Insured, PROOF OF LOSS AND DAMAGES United General Title Insurance Company tilori egee "fide Insurance Policy 963645389 COMMONWEALTH OF PENNSYLVANIA ) SS.: COUNTY OF CUMBERLAND ) ANGELA A. MASSER, being duly sworn, deposes and says the lollowing: I. 1 am Vice President of Commerce Bank/Harrisburg, N.A. (hereafter "Commerce Bank") with my office located at 3501 Paxton Street, Harrisburg, PA 17111. 2. This swom Proof of Loss and Damages is being submitted by me on behalf of Commerce Bank in support of a claim under United General Title Insurance Company Mortgagee Title Insurance Policy #63645389 in the amount of 5126,00.00. 3. On or about March 6; 2006 Commerce Bank issued a Letter of Commitment for a residential mortgage loan (hereafer "Loan°) to Cody A. Carbaugh (hereafter "Borrower") in the principal amount of $126,000.00. Attached hereto as Exhibit "A" is a copy of that Letter of Commitment. 4. On or about April 14, 2006 a closing was held on the residential mortgage loan transaction at which time the Borrower executed a Promissory Note in the principal amount of $126,000.00. The Loan was to be secured by a first mortgage lien on the real estate located at Carol Place, New Cumberland. PA 17070 (hereafter "Real Property'). ,Anachcd hereto, collectively, as Exhibit "B" is a copy of the loan documents. 5. At the time of the closing of the loan, United General Title Insurance Company issued a mortgagee titled insurance policy in favor of Commerce Bank under policy 463645389 in the principal amount of $126,000.00, insuring that the mortgage encumbered the Real Property. Attached hereto as Exhibit "C" is a copy of United General Title Insurance Company's Mortgage Title Insurance Policy #63645359. 6. The borrower defaulted under the terns of the Promissory Note and has not made any payments on the loan. 7. As of the date of default the principal amount owed by the Borrower under the Promissory Note was S 126,000.00. Attached hereto as Exhibit "D" is a copy of the account sheet with principal loan balance of S 126,000.00 as of the first payment due on Mav 14. 2006. S. Commerce Bank recently discovered that the Real property located at Carol Place, New Cumberland, PA 17070, has a first and second mortgage with Lachman Brothers Bank, FSB that takes priority over Commerce Bank's mortgage lien position. Attached hereto as Exhibit "E" is a copy of the "Current Owner Search" obtained on behalf of Commerce Bank. 9. By reason of the foregoing, Commerce Bank's insured first mortgage lien is defective insofar as title to the Real Property described on Schedule "A" to the title insurance policy is in a third mortgage lien position rather than a first mortgage lien position, and such mortgage lien is invalid and unenforceable against the Real Property. COMh1ERCE BANK/HARRISBURG, N.A. Ar ela A. Mass r, Vice Pr sident Sworn to before me this (°` Day Of.luly, 2006 ;iABMvi+ NEALTH OF hANIA f NO.ARIAI SEAL. LINDA A TAYLCXI, Notary Public asi Penaslxno Iwp., Cumberland County k4; t;nli:nt5??n C__mires Ssnt. i, cW8 "EXHIBIT A" : no ;N, ('rn;n,crcc Bank I l,u'n&mn K'.:\ ': AH Scnatc Avan.(e (',lilt, 1-1111. I',\ 17111 I Ikal' 11)I,hCantlsl. ,I•. V \CN'. ( umi,c) i,:n(1. V, c ,uc pleascd it, inlnrm .o;; iha; :: co n[fit ionalll apprm cd. Acc,"!I n 1'- Ihu ,::. uun „n o!Icis to:: I! r dclailcd helm,. This offer rmy he accgmd by ym onl, hyslgning and retuning Ihls later,+ithm Mal 15) clays ol*thc date oi'lhis Iclic•. Allcr you accept Ihis (,Ilrr. I( will he an agreement 1101n Ml this Lcn(Icr :uld %nn. All wher agreement that may esist Is replaced he [Ills a reemenl. No challuc ;n the Icr ms of condition of Ibis agreellleni shall he eflecllye, nor will it hind This Inswulinn ill an) '?k w•." allies the chance A m wrung anti is mpied be an officer of the Lender. The Iernls and conditions arc set fortis helow II you do not eomQ nth mq one or more of these turns or If Lill v one or more of the conditions are not fu I!-IIled. then this Lender n II! not he required to make this mortgage loan to you. CONVENTIONAL ADJUSTABLE RATE. MORTGAGE, FIRM 12 :r,nli'< INTERESI RATE: PRI\11 INTP.RFST ti: Q" RF:\I I:STA I F I':\\F"N A i I) II \/.:\1:1) INSI RA.\('I 1. 1I'` p l) \I( )R 1 (.*,A(-,F INS[ R:\N('I. A I)IS(.'(A `N 'F FFF: tit _on (;!) I I Pow!) CON'DITION'S TO 13F S:\'1'ISFIF.D AT SF.'l l'LF:FNT: BORROWER(S) hO PROVIDE: I ':'IDI: ?('L OF I IONIFO\\ N RS INSI'RAVF, LISTING t Yl).i\il I:i" F. k'\NI:. HIS(, . N. A AS :M0RT(;A6FI-- AND P:\ID RF:('LIPT " I'liLl_.1 I_tiF Cl°ft D +DDI-..\DI AI I S \L i `; ( O VI i .',.t t 1:1='.iOI\t ( ARI L PL.ACl` CLOSING AGENT TO PROVmL: - NO'?I BORDIN.-\'1 G FI\' 1t'('IN('i. - CASH BACK TO I30RRO"I RS NIA1 NOf I_\CI 51515( FI I..LY 1=NECI'TED FINAI. APPL.ICATIO\? REUMSE OF All. UENS ,\(iA=r SI; E177 PROPERTI I-Il.'D-1 TO I VIDLN(E SO LI_R P:\ID CI r)SI\'(, COSTS 111(-11 \i:\1 \'(I I I4\C'lil?D AC-1-1 AL ('(WI S ,\'?D ',IAV BE 10I'1 11-[) \? F(II i ()'..l \ V.XPI RA I'll ON OR 1•;X I I::NSION this commitment tt ill expire on n 4 (a !I. Ior .u1, rwwm tlu M ,. ,u; no( occur by That time. 111 ithli aliens of Iles ntsluuunn in !ills •Cnntt111ut:cnl sea<;: t„ ha- l my legal Three or enter Ant e7;Tensinn of this comma nenl ,t 11 h:_ ,t id"n the -,ic d!.';Crcllnn of Ihls institution !I Ills contnttUnenl is In be x!cniled. ihls insia!Ilt„n :;1 hi : the rl_ht 1 ,:(lance all" it (Ile IOlas spceiiICLI :Ihn:l . ntciulln_ till nvCrc<r 1a I, WCURACY 01, YOUR APPLICATION Pills offer and atlrecillclll ;Ire nude 111 rciiancc 1111 1110 lCCUraCS and i`01111,ICICnrSS o(all Information .suhmitlcd in "out Join application \'•-,nlicaunn 1,i the a"!1, tleleness and Wcurtcr 1,l all such inl'nrntallon i. ItreCnnduloil lr an'. r,hli_ati;,n oi.'he par! of Ihis ;nstlltr,iort. No Su'.C.ONDAR), FINANCING um no not use sccondm lin.ulcnlc it) acldmorl;o oltr loan 11 in (!lis I cmicr to e01lp oc the purchase of die pinyNy desmhei above unless a is appn" ad in nlln_ h•, .In ohficCI-of this Lender prior to the closinI n( ,our Iran n nsaciiwl. HADS FOR CLOSING \1 the Tillie ofclclsing, you must he preltnrcd to p= *Q sullicicm WAS to pa•, for the Ildle" mg: the balance of the "mh.ISe price, adlusunenis with the selle. the I_emki's leeal fee.S, costs of title examination and other Closi lL costs. lax ;lnti HlStH'duCC CS,'I'M ;Icposus. plus any discolall fee [:or the es(Imaled aMntlnt ol'IlIcsc fees and C';Itcnses. plea5C relcr fn Ilse (fond I:allh 1-sUmale tchlch has heen provide'! 1. .cm 1 FTC funds oll plo%idc must he in Cash 1,r In the form cofa cerulicd chick or hank Checl(. HAZARD INSURANCE COVERAGE, I (nICSS lids insiiTittion gives rut a tvrilten "ancr okhli rcqu rmsem. .ou "i1! he , quiretl in stay your lirsl year's hazard Insur.n:cc premium before the clr qwg AI iel IImI )-ma. thls lender has the right k) mclulm you 0 Mahe mmmihly w::c"n pe'.Mc:el It) r,rl?.?1 [i'.1111111.0 rcnct -if 1'1::1111 ,1,l:, : ai;: l -<I!I'p!. n--l of 1 I,' i d !'II' iw, 11,1111 ,I i ;tot c•, of hl;I pli- 1., !11:.::I -I -1,r lo,i'. 1'n.: i` ::leer .I leas. Cqual II e ?,. t. u. I'e CIh!C,.I!tle,. I' I'1' Ill', Id Inmiclpal mlkmc:', I !1 IIF k 1'_ Ii '!1 xqulred to compensate f,a d m o or W o on i ; It .:wmcm cost bwo c !,1111: mwi n;un-t-, '( Oi\,I,16Rl.'G BANK. H \RRI RI IEZ \A. Its succcum :Ind ,?I .: ym. is 1!1Cii micrest may appcir" as firs( n1n19(_igcc at IIII t%,e!-'i1J ,\t-erllc. !. am;, I fill. P?\ ! -111 1 I he insurance company mnsl h.ItCal !ca;l a P ._Cnclal pollr•.!loldc: rant:!,; a;iJ :I iin.nrclal SI/C catcuon M 111 m Best's Key Ral;mc i7uldc. \l, e ,vii! accept ,s :uI ,Illcrnal ? C ,:ntemyc written by a calywr INU is an it gricril polioholder's ;;1111n I his insulutiiw ••t ill also accept coyera e. from L.lovd'• rf L.uneL*:n. ct c1, thou'uh ;! 'ins no RCSIS' r;Ihlt :1111: under a PAIR Plan if a Is file nnh Cwnage The! can he ohlalnal it a reasonahlc r.,sl I-hC has and Insurance polio- 1,r hinder must sia( Ute Resl's raun o l* file conlp;u,.. 11ITLIF INSURANCE. Bciore The closing of (his loan. the anornec ioi this I.cndcr a iii Ct.utlnlC !hc lI;1c r: the prnlterlj referred to ahoy e. This institution «ill hatC nn ohli>_alinn it, close !his loan unless. in the opinion of its attnrncy. you tulll Irate a( (he Tillie the ntorlta_e is rccorded. eood. clear record. marketable Title to the nuart11ed proPcl•I';. l his mean:, Thal vnur (ill'. must. to ith the exception of the ntorlga-C. Ile free 1,i' a!1 liens. encumbrances and dclcn: tt hich.:n the sole discretion ato Lender and its attorney, "muld Makc the propcrq an nrtprudent Investment. In addition. Tile propCrlt must he in full conll,llancc tt ilh .Ill hmIdlmt zoning and other' applicable gommm"tal regu5nons and all loan clocumenis IttUS1 he approvCd h_G IhiS Lendcr's attorney het trc (Ills 1_e11der Is ohliged to close `. on; Ivan. OUR RESPONSIBILITY FOR CLOSING: I I the closing of this loan (ransaction I;trls to occur. ?ru+ ..l?rcr ;r- n? r?shr,n?1h!c ?,,?,,II i tl fees and other expenses of this nstuutuon that are incurreo ;r.. ;1 result of hie ;s1n•-' this loan. For the estimated .!mount of these fees and costs. plcasc refer 10 111,2 (;oml F:111 Bimia(e Mitch has alreaLk been mailed to you You .hell 1101 be responsihlc Icn these ices and costs if the failure to close is dale tit 1hc. L.::ndcr's Failure 1., cc,mpl %.c 11h its ;.1?'rccments set lorth in this conuniunent. I hail, You Ycr.% much I'or this opporttunt\ to he of service. If You hah c am uueslirm? conccrnine Your loan. please do r1o1 hcstlale In call our olficc Sinccrcl". /J 111:1 C?u;>6;1I1 ??~ I:cslilCnu:1! \l:?ris.rl???. I)::I,,u'inur,; ('nn) Ittcri.. I; I!, IIIm 1,1II l n lcccpI ihi< offer Ca nx,rt_a c I'); In. please sicn !his letter ir, the sI,; ct orm ;d i hc1o" %Vhen cnu si, n •.1,nr n:ul;c %",u at11hM1 c Iol.q I.CnitoI. to start tai .hnr n,c:css:uh lot - the 11,,11 uan;acur,n .___•__...... .. "EXHIBIT B" PROMISSORY NOTE I rrtnctpal moan vase matuNty roan No eau: con Account Officer Initials sT26,000.00 04=14-2006 04-14-2007 33332241 251 Arlpn'.nCCS in Iho r;harled area pre for en•h,r I L 1 u I ,gym „out 1 L1 t 1 s ] - I L' __ ,r ,r r n- tl Inrr ,„V ,Inr, ahGV^fn',lainrl h t5! Il^(.I 7.v ?t:rl O -W, Borrower; CODY A. CARBAUGH ISSN: 159.62.6119! i.ender: COMMERCE BANKrHARRISBURG N.A. 551 BISHOP AVENUE RESIDENTIAL MORTGAGE t,HA MBER58l1RG. pA 17201 1-00 SENATE AVENUF. ':AMP WILL. PA 17011 717, '375:1 630 Principal Amount: 5126,000.00 Initial Rate: 8.750% Date of Note: April 14, 2006 PROMISE TO PAY. I 1"borrower'I promise la pay rp COMMERCE BANK/HARRISBURG N.A. I-'Lender"1. or order, in lawful money of the Unnacl Stales of America, the principal amount of One'Hundred Twenty'six Thousand S 00000 Dollars is 126,000.001. together -ith interest on the unpaid principal balance from April 14, 2006. until paid in lull. PAYMENT. I will pay this loan in one principal payment of $126.000.00 plus Interest on April 14. 2007. This payment due on April 14. 2007. will he for all principal and all accrued interest not yet paid. In addition, I v,rill pay regular monthly payments nl all aocrued unpaid interest due a ,,I each payment date, beginning May 14. 2006. with all subseouent interest nayments to be due o, the a s e day of each n oath alter (hats Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; than to principal: than to any unpaid collection costs: and then to any late charges. Inliefest on this Note is computer) on ;t 301360 simple interest basis: that is, with the e viception of odd days in the first payment period. monthly interest is calculated by applving the ratio of the annual interest rate over a year of 360 days. multiplied by the outstanding principnf balance, multiplied by a month nl 30 days. Interest (ar file Odd days is calculated on the basis Of the actual (Jays to rho next fun month and a 360-day year. 1 will pay Loorler el Lender's address shown above or at such Other place as Lend., may designate in writing. VARIABLE INTEREST RATE. The ,njer!l,t rate on this Note !, surilm 11(I ,:hantlc 1")") i'roo in ;,I r: ba'?!n r:.r :l IlOgr'5 `n an. '.nrtc Or:nOpra and':. .vhn:h s the ?nmH Rare ,is published in ;he rvlnney Rata Secporl of the bail Strnel Jo Ldnal 11 t is published. the h;thosl ?vIll be lt:orl. Idle "Index"1. rho Index is nor ngcessanly the lG ave:;t rate charged by Lender n,, its loans. Ii The In:ir.c bcc rimes '. ayadelNle drr„nq III,, ,, n of Ihrs loan, Lendef may designate a substitute Index aflr'.r notlbrms) Incr. Le nfli'.r -111 tell me Ihe currcol IndeF rate upon my n:ri afar. 'rh, iiiwrl:St ratio change will not Orrur more often than P.rach: da'v. ' urldel stand that Londar may make- loaOS base() :an other riles as wail. The In(le. rl rr emly is 7.750% per ,num. The interest rate In be arnlnd l0 ;h' --. rm,tl hale :nr7 Ii- Nl'f! -11 h,.:',l .a ';'I, ill 10Cj, ; al Jerr.entagc point rhO Indes, nlnnded I, Inc n+a'-! i7l.12S percent ,:aun,n•1 r „Tel r-t. :t g 75ri, r nnnun, NOa Cr. Unrr. „ r-.unlslanrr;; :vdl `ihnl eltrnael raM r n in Now he "note llairl the r.,.1 h -I, I::.;. 1 li'; a{,1 I i1 Cd:; 'l.': Unless waived by Lentler, any :nr;re ase u, Ihe interest rwo will increase the amounts of my Interest oaylnews. PREPAYMENT. + r, v:• that . 11 I .on I.'r?s ',,r. ',Uar Prcp,T 1 I:rla ,r :I•:u, h...? - ion,: 1 tl'a' II•• :1,1! ,31•: , i I ,. it it a I, aril t,,. I „ I•:,I ! : . 1lnnn , 'a:m ;n1 f "hi?w- :, 111nta , r ;.. .?IIII -S. 1. ;Il:. ,,.r I.1 ,(Ile., v. .,. ^.I, I,r?.1 (': I.I,• ,. 1. ';,I•I n 1, n,.1y I':. . poll.' .11 he . ... 1;, pill pa.Iq a 11, l,.ni nln: 111 nrlkr p+r cols uI tl..r p 'lt. I . , "'!fill . ... fur. i, r•r• , .n Snrd L pain ntl:ntc ,n) ked 'nil„ I , full I- I orrf 111 r _en Ilt ,.I. .1:111 I ...vilh. I;,ong ,I v :tl Len.IP r?[lnls ,Irder Ir:. 'J'±le d t di , hin,-Ovi 'url hl., i, , in1 o -d I . I .. mllrllf. apr'.n5 I.onrernlnq d'SPLAOd •ampnnls, :aril .lei ng ,Iny k rr l:hn, f!a Vrn F.„I n.+trnm nn' Innl ,rl .S 'i'?;al tho n%r'ImCm r.. ,.:I Inr•':; 1"yma1+1 In lull of the am0unl pwed or that is tendered hll`t olllt r and I nos or hm tailors or as full ',atl5l lr 11 a rhyfiulRd a :l, I n;t :,•: .n., Ina ?, deevr!. zrl in'. COMMERCE RANK!H %RRISBLIR.t f•'. i?.. F,_SIUr(JT AI 1,1'RTG;4fIE If,J SFLa TE AVENU . ..AMP lift L J 'A )l i. LATE CHARGE. I( a payment ., 15 davs nr (pant late. I ,it he cti,-led 5.00W)h of the regularly scheduled payment. INTEREST AFTER DEFAULT. Uonn default. nciuding lalhlr,! to lov uf)[)!% linai malun;y. Ihn 1,atelr'SI rate I, als rdnle ;Shall I),: :I[!d'm[) a 2i100 ParcenlagC PG'nl marq:n I"DOlauh Rafe f,.Aarq!n'i. The Clefault Rata I:'ar rein'hall also apni", Ir_ eari, 5u::cepd,ng Interr::1 r;;lr: Ithanpe that would have applied had there been no rrl taull If I1x1:1 nt is 1 I „ n .rut ra ti N t io -tit vidl eoL e to ar r rc 1 nfler Ih:• data pl iudgmont at dx, Tate in rllr:r.t at the ii-. I!r.1,1 nI n, oni: rcrl. n„ ., ..III hf! r IcrE:.t ate 1110 nlr.rrsl rata I!,mlannns upper anplu:ably ia,^,. DEFAULT, , .,ill hr: n d0DI.111 aide( th..' Nnto :f „ , ;f thn 1o 111 h:arlrr. . Payment Delarllt. I fail In make :.ny Ii Y: mnnl e;. hw, )ilia 1;n,jnr Ill,S roil Break Other Promises. I )freak any nrom.ls.; mar).. , Lauder ':I fJ! I r: gran p r:ppp it lh, I h,. Nnle n :? pay pgrer;mr:m rotated In II,Is No"o ,r Ir..a ., r1h+]r Taff(?'nr.n rant or 10:ln 1 --. o:l I. is n;.p„ Default Favor of Third Parties lr .u'V i a In ,+.I.t 1' I'll. J'Can '.'1' (•I 'I .:1 'Aar I!I 1 a nl 1 a 1 - , I:;.., ,,r1J rr my Ihlhl, I ll, ',c I,,;nl or any othe, agreomert n lavr,r Of 1 Ihe .,li t.,r n ,: 11 -1 a' air ,ail, alil.,..II I,1 I o.o ..I ,. ,nova. This N01R or 0'"lnnn my nbbrla Pons unrlrr 1h ,s N.Ite n an. it I ,A, ,-I False Statements. Any rep a lniatio n ;W t -,a I a I -- 1 I. Lend 1 r ::.1 di ,:ndr Ih- Idgtn rI th., I ;n U:!; r 1n:e n,nls ,s lals . nr ion'S1Pa(hng In in, naler,al oiipect '., 11 r r n,.. - a 1h I T. n ..,, ,r Ill rl,l. Death or Insolvency. ,; w Ro r . '1 - -1. h t s n• I I c nt I. -1 I -1 1 L : ; t.. .lrrru:n' I Ell .,, I",. I'1!nrl,1 nl r•d'I r, s. ?r .I , 'nr nrrllnrl .. ri O .r n I t ,. .r:,r r ,. T: k'(j of Ihe. Property Lily h: ( r t 11 1 ! !i 1 ".l? I :n, TI s r,:,.dL 1 r, 'rl nl 1 f r, I : f a f,: 1 II L I I aM," Ih' i;lk fail r•l Ir,;, pr { i 1: h i .? it r, r, n? I :. ,1,..:. .1 ..11 i•.l 1.1 I I.. ,,. .a . z. I I - ... ,. ,., .. . -.r,!o . -:.., ,,,.. ,- DrrICGlivC Gnll.l ll`r:rli Zrllin n. (h f,: ,,: n' 1:...11 nt I' rl!- ' a t•,lt I a 1.1 11'!1. t' ..:,I ..1:',I •,I .. 1, .. ? .. ..ir.,. .. ..1.,. ..,.r ... :,?T ,!. I 11, r1 , •,::1 II.,. ..1 .. ,. . ..., Collateral Damage or Loss. l..ny -., n. .:Iiaclant?al damage! or ilasImr.j1nn ,, nrlt :. ,. ;red h': !I''f:urtinr, l;l. ,.'r..E:r I I "ri, 11r Ev is Al till g (octet for Or - I Ih - n1 a ,f1 'r r U I .. 1. d r ar n Itv r.' l'i s a 1 .. nl. ar Ir..niI? ndr. .I 1 I c , •n .Its t - ,li, (r. r T I,. „ - ,. , PROMISSORY NOTE Loan ND: 33332241 (Continued) Page :' ,lpl ,:r_ n;,i. bu! :;Il.yll rot lie rnn I'u.:d Ir: p,, 1.1 •,,, ,,. ?I?. ,' ?: r; 1 In - .. 1 , ,, 1 I I.. -, , . . .... , ,1:1, r. Sair?f nf.il)r? ;r ,. ;rifle „r,n ,, I •,.. .,., l -^ ,. ;' I ;.1 ,. I Insveurii V. Lenrln• -rl In,ll, hrhn v' ::: :.. .. .:...: ... Cure .. ., , (]I 1111: •, I- .h L. i. ,rh.r .I,.1.. ..•, .:r'ri ':Ir. .:: I„ 1 ,- -1 :: , „ . I I, . r 1 :. ,,,,,r I ?,,:.r•5 •\- til,•p: ', l! I r. ': 1. ,., , :-.. .. .:., r.',,, ,..,., .. : I,I': - LENDER'S RIGHTS. r111l1„01. - ? 1, r ,,.,,. .:• - .:r: r'. I.I 1 1 ., ,,.: 1 ,. . ..I:rl, I'll- t. II r:Inir, a' 'I -, :':",'! ATTORNEYS' FEES: EXPENSES. Lnni ,n'r; h. , av :a .i:;. •nlr .i I'.:: f•::. ':, :. ,,,.t I-:: I no" L; rcl -r I .. I l.: r Il rd r; c. St'lar ,i fn, . `, I, II pli...I ll r - 1':. r1, „ `i li: ili I'!' h,inl;ruu.. ,. 'lr.!'r .1 ,',:Ir.l I...,, I•;l i,l.: I-,lr,rr if .I.; n,'.I, i n: Ile ' Ipr,: "11, II .111 p, nh,h !lid tulrl,c Ihlf. IA... I: ...1'.• <. t.{.i ,r GOVERNING LAW. This Note will be governed by federal law applinable to Lender and, to the e>aenl not preempted by lederal law, the Ipwx of the Commonwealth of Pennsylvenia without regard to its confliris nl law previsions. This Note has bean ar.cewe.d by Lender m u,,: Commonweatth of Pennsylvania. RIGHT OF SETOFF. Tn ;hr; oeuent L,.... L ,l 1 .,h•, ;;l nr'nnri.j 111';1 ICf, rl .In(' TII:,; ,ni;ll ies "I l.r., l(,l::i :.:):,:I•.? •: -.111.1 1., r, ll:;;-1 r:n111 ..:r,,;iv .111+:n n. it„•Ilir,lrr ,. +,1• lid P.d p;, 1:1 ^:. iI1; i11'?':,•,'. l?nwi, Ih l ri .., nl rrlutl., .)ny IAA 111 Kori Ih . ,.Int.,. nr I'll :'C ri,Irtti !n' ;:rl'I !il _., ,111 r(, I.,`nn I) ;I ,1 n. I . I I`c!nln cd h1• app <. ai. J.l- . I '.1'•T In :) .. Ifl1l lit; •,l,rn, r ,,,rr) ,.n Il„I ,n etc l)f -.'Inc,• . I;l'I lsl a ,1 I :III S110 : ,.c _, .... COLLATERAL. I al.knr, v?lndge !hr,; Now is -..Lapel b•; IL•, I,IL. rill null )i das:, r,b^'1 ,n 11,. ., ..... insp ,must •,Ird 1•cl , I;nrlrin++p.. nr 'teed s! Trlls! in it trustee n la'.•or ,11 L,.ndgr Or r,,tl ilpgrly a,efl u, (hrv1HER!„AI• ) r,. p,i ,t Pn SUCCES50R INTERESTS. Thn to ,;I 11'r Note ..tau I non rill nr>. n ,,I a5514ns, )rid snail mtjlo to the benefit of Londe, ald is Suf. i:eS Snrti dnd aS."OnS? NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. t'Lslse nnnly ;1s If "c n?oo'I o iuo .. r;,lr: :,fo,manon about Vour accounlfsi to a consumer resorting agency. Your wniterl n17Ure Cle5errh,ng the tii)er,illr• lnar t; vacyiloO should br: r'r.nl 11; ,ls at IhP lnllov+ is address: COMMERCE BANKfHARRISBLIRG N.A. LOAN SERVICING PO BOX 1198 CAMP MILL. PA 17011-1195 GENERAL PROVISIONS. If any Part of this Nola Cannot he enlotceCL If- laci 'will not olfeci trio rest •ol th, Note. Lender may delay or fsr,i:'r ,nfor ,ing '111v of is rights or r 1F.dlr:`5 Undri, Ihls Noln -0 11-1 Ins'ng Ih.,:m. : and .,n: nth,;' o--ri why -In,, i)u, r, nlcn:: nf nndn-i, 0- Note.' to the Patent allowed bV Maly. waive presentment, ctemarld for hilyrneiil. and not -.n Cr d'Shf nr;,. Upon any ch:,nllq 0- u:rms :)1 Ihl Nnl,i. .min's nlhrrsv se .+.?nrpssIv S!aln_r1 n', -t,n,j. ,c 0iri•, +^.hn Ctrs :1,5 pJn h.. :.1 r,ihp I; rnakcr rithu unlrlr l lrnm mnrl it .,. r. o-11 hr, I_ ,r.ll r.r , fah ilY. All -:A part-..- ec t.h .• Lender m,,, a w I,)r nv Innrirh r+1 11-ii Inn, ,;',n II''f.;15n irly {l:ir i'? fl .,J:trflntrl, !:mlatwr'l. •, ;,rr, I,I. I,l r(`a .,,1:'. r, I I: e:. lc :,r.r,,,•r rnin,r!,1 -I 11,: 'ariv II ti I1.11d ) 1011-IV 1111. I),1 I.. C .I I'I :r'1 -! - s n, II 1"nn l . y ,o 11 I I ,. n. ,. -d,, TI .:.l.l,),!I - .11.1.1.1 11)'S I. I:, "r? Ir .t d .;,. rl l" I r,an. h1 o t ill ;il l!h,. .115'"On'ng Iinlri:v PRIOR TO SIGNING THIS NOTE. I READ AND UNDERSTOOD ALI. THE PROVISIONS OF THIS NOTE. INCLUDING THE VARIABLE INTERE:iT RATE PROVISIONS. I AGREE TO THE TERMS OF THE NOTE. 1 ACKNOWLEDGE RECEIPT OF A COMPI.ETED COPY OF THIS PROMISSORY tin rE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOT(; IS AND SHALL CONSTI'f UTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER. C. ODY'A. CARBAUCH P- col Idr.,n l irir,;, jinn Num Wien RECORDATION REQUESTED BY COMMERCE BANH'HARRISBURG NA RESIDENTIAL MORTGAGE 00 SFN ATE AVENUE (:ANIP HILL. uA 17011 WHEN RFCORDED MAR Tn x!,11,, .!!-. , SEINU 11A IVUIIL,CD IU' +.:]O M U, E R CE RANIf:HARRISBURG N„ -(,AN SERVICING 1!1() SENATk. AVENUE ;'.AnaP HILL. PA 17011 =(;P 1; 1,C(i 1=. Df:R 115 irl1 MORTGAGE pirdrPr Mar- UNI DRtA ItWAOMEN'r 1.", n, ic??') 1 171 PENNSYLVANIA •'•11•'' Fann.r rnaa II MORTGAGE Loan No: 33332241 (Continued) Page 2 This Sccunty Instrument secures lit Lender: It) the repayment of me Loan, and all renewals, extensions and modifications of the Note; and (it) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender, the lollowmg described properly located in The County of CUMBERLAND: Real Property tax identiflcallon number Is ALL THAT CERTAIN TRACT OF LAND AND IMPROVEMENTS SITUATE IN THE BOROUGH OF NEW CUMBERLAND, CUMBERLAND COUNTY, PENNSYLVANIA, MORE PARTICULARLY BOUNDED AND DESCRIBED IN EXHIBIT "A" ATTACHED HERETO. which currently has the address of LOT 10 AND REMAINDER OF LOT 9 CAROL PLACE, NEW CUMBERLAND. Pennsylvania 17070 ("Property Address 1: TOGETHER WITH all the improvements now or herealler erected on The property, and all easements, appurtenances, and lixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument, All of the loreguing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is laovfully wised of the estate hereby conveyed and has line fight to mongage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Burrower warrants and will clelond generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and nonuniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and -agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds tot Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument sinall be made in V.S. currency. However, it any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any of all subsequent payments due under the Note and this Security Instrument be made in one or more of the following terms, as selected by Lender: (a) cash; (b) money order, (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose depositsjare insured by a lederal agency, instrumentality, or entity: of (d) Electronic Funds Transfer, Payments are deemed received by Lender when received at the Io Ceborl designated to the Note at at such other lucauun as may be designanad by Lender it, accordance vith the notice pruvsions in Section 15. Lender may return any payment or partial payment it the payment of partial payments are insufficient id bring Ine Loan current. Lender may accept tiny payment or partial payment lnsullicient to bring the Loan current, without waiver of any rights neteunder or prejudice to its rights to reluse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its sCheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until BUrrowof makes payment to taring the Loan current. It Borrower does not do so within it reasonable period of time. Lender shall either apply such IUnds dr return them to Borrower. II not applied earber, such funds will be applied to The outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now er in the future against Lender shall relieve Borrower from staking paymem5 due under the Note and This Security Instrument or performing Ina Covenants zinc] agreements secured oy this Security Instrument. 2. Application of Payments or Proceeds. Excepi as otherwise described in this Section 2, all payments accepted and applied by Leander shall be applied in the following order of priority: Ian interest due under the Note; IbI principal due under the Note:;: t(;) amounts clue under Secnun 3 Such payments shall be appt:eo to each Penodic Payment in the order in which it became clue. Any remaining arrounts shall be applied last to lane charges, second m any other amounts clue under this Security Instrument, and then to reduce the principal balance of the Note. If Londer receives a payment from Burrower lot if delinquent Penodic Payment which includes it sullicient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. II more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments it, and to the extent Ural, each payment can be paid in lull, To the extent that any excess exists after the payment is applied 10 the lull payment of one or more Periodic Payments, such excess may be applied to any late charges due, Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, of Miscellaneous Proceeds to principal due under the Note shall nor extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds"I to provide for payment of amounts due lot: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments of ground rents on the Property, it any; (c) premiums lot any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums. if any. or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues. Fees, and Assessments, if any, be escrowed by Borrower, and such dues. fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds tot Escrow items unless Lender waives Borrower's obligation to pay the Funds lot any or all Escrow Items. Lender may waive Borrower's obligation To pay to Lender Funds lot any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items lot which payment of Funds has been waived by Lender and. if Lender requires, shall lurnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to pruvide receipts shall for all purposes be deemed to be u covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used an Section 9. If Borrower is obligated to pay Escrow Items directly. pursuant to a waver. and Borrower fans to pay the amount due lot an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then he ubligaied under Section 9 to repay 10 Lender any such amount, Lender may revoke the waiver as to any PENNSYLVANIA Single Fam:ly-Fannie Mne!Freddie Mac UNIFORM INSTRUMENT Form 3039 1101 Page 2 0t. 8 -1 -7 MORTGAGE Loan No 33332211 (Continued) Pane 3 iN I'EN NSvIVArJIA 'i .•.I'". ? F".-, Nt- UrJ IF i1 [: 611 MORTGAGE Loan No: 33332241 (Continued) Page 4 If BonUwer abandons the Properly. Lender may file, negotiate and settle any available insurance claim antl related mutters. If Borrower does not respond within 30 days to a notice Item Lender that the insurance carrier has offered to settle a claim, then Lender may nCgOliale and Settle the claim. The 30-day period will begin when the notice is given. In either event, or it Lender acquires the Properly under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and It)) any other of Borrower's tights lather than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, etsotar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the (vote or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days alter the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property: Inspections. Borrower shall not destroy, damage or impair the Properly. allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property. Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property it damaged 10 avoid further deterioration or damage. It insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Properly only If Lender has released proceeds for Such purposes, Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's oblioution for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspec Uons of the Property. It it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. B. Borrower's Loan Application. Borrower shall be in default it, during ;he Loan application process, Bonowar or any persons or entities acting at the direction of Borrowar or with BOnGwel's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender wi lailed to provide Lender with material information( in connection with the Loan. Material representations include, but are not limited to. representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. 11 (a) Borrower tails to perform the covenants and agreements contained in this Sec Urity instrument, Ibl there is a legal proceeding that might significantly affect Lender's interest in the Properly aniffor rights under this Security Insvument (such as a proceeding in bankruptcy, probate, lot condemnation Or forfeiture, for enforcement of a lien which may intain priority U.L'r tilts Security Instrument of to enl Ofce. laves at regulalioilsi, UI (c) Burro-et has abandoned the Property, then Lender may Ou and pay 101 whatever is reasonable of appiopiiilte 10 pf UlcCt Lender's interest in the Pfaperly and rights under this Security Instrument. Including protecting and:or assessing the value of the Property, and securing andiur wp-lnU lie Property. Lender's actions can include. but are riot hmlled to: tai paying any sums secured by it lien which has priority over this Security Instrument: ILI appearing in court; and icl paying reasonable attorneys' fees 10 protect its interest in the Properly andlor rights under mis Security Instrument, including its secured position in a bankruptcy proceeding, Seconl q the Property includes. but is not limned to, entering the Properly to make repairs, change locks. replace or board up doors and windows, drain water Item pipes, eliminate budding or Other code violations or dangerous conditions, and have utilities turned on or all. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duly or obligation to do so. It is agreed that Lender incurs no liability lot not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rote from the date of disbursement and shall be payable. with such interest, upon notice from Lender to Borrower requesting payment. It this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. It Borrower acquires lee title to the Property, the Ieaschold and the fee tide shall not merge unless Lender agrees to the merger In writing. 10. Mortgage Insurance. It Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. II, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available Irom the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect. from an alternate mortgage insurer selected by Lender. It substantially equivalent Mortgage Insurance coverage is not available. Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept. use and retain these payments as a non-retundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the tact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage lm the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is Obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender requfrecl Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 effects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur it Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with Otner parties that snare or moLhly thi7n risk, or reduce losses. These agreements are on terms and condalons that are satisfactory to the mortgage insurer and the other party for partiesl to these agreements. These agreements may require the mailgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include lunds obtained Irom Mortgage Insurance premiums) As it result Of these iigreenjenl S. Lentler, any purchasef of the Now. anathef in>ufer, any reinsufer, any uthef PENNSYLVANIA-Single Fattoy Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1101 Page 4 at 8 i .. ..I 9 F.? M.in?F,d Ain PAAC UNIFORM INSTRUMENT Fns n 3031 1'(11 PENNSYLVANIA nlll I I , MORTGAGE Loan No: 33332241 iContinuedi Page 6 absence of express authority in this Security Instrument to charge a specific lee to Borrower snail not be Construed as a prohibition on the charging of such lee. Lender may not charge lees that are expressly Prohibited by this Security Instrument of by Applicable Law. It The Loan is subject to it law which sets maximum loan charges, and Thal law is linally interpreted so that the niai"t or other loan charges collecled or to be collected in connection with the Loan exceed the permitted limits, then: sal any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit, and lot any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. 11 a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by lirst class mail or when actually delivered to Borrower's notice address it sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender at Borrower's change of address. It Lender specifies it procedure lot reporting Borrower's change of address. then Borrower shall only report a change of address through that specl6ed procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. It any notice required by This Security Instrument is also requited under Applicable L'aw, the Applicable Law requitement will satisfy the corresponding requirement under this Security instrument. 16. Governing Law: Severebility, Rules of Construction. This Security instrument shall be governed by federal law arid the law of The jurisdiction in which the Properly Is IPCaled. All rights and obligations contained in this Security instrument are subject to any requirements and !Imitations of Applicable Law. Applicable Law might explicitly or implicitly allo%., she parties to agree by contract or it might be Silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security instrument or the Note conflicts with Applicable Law, such Conflict shall not atlect other Provisions of this Security instrument or the Note which can be given Oleo% without the conflicting provision. As used if) this Security Insttumem: la) words of she masculine gender shall mean and include corresponding neuter words or words of the leminine gender; Ibl words ah the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any bbLgation to take any action. 17. Borrower's Copy. Borrower shall be given aria copy Of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or benelicial interest in the Properly, including, but not limited to. those beneficial interests transferred in a bond for deed, contract lot deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. It all or any part of the Properly or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold of transferred) without Lender's prior written consent. Lender may require immediate payment in lull of all sums secured by this Security bssuument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days Irom the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. It Borrower fails 10 pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Secunly instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. II Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest at: la) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument: lb) such other period as Applicable Law might specify jot the termination of Borrower's right to reinstate: or (c) entry of a judgment enlorcrng this Security Instrument. Those conditions are that Borrower: (al pays Lender all sums which then would be due under this Security Instrument and the Note as it no acceleration had occurred; (bj cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing This Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation lees, and other fees incurred for the purpose of Protecting Lender's interest in the Property and rights under this Security instrument: and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay The sums secured by this Security instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses to one or more Of the following loans, as selected by Lender; (a) cash; lot money Order; (cl certified check, bank check, treasurer's check of cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity: or lot Electronic Funds Transfer. Upon reinstatement by Borrower. this Security Inslrument and obligations secured hereby shall remain fully ellectivb as d no acceleration had OCCurred. l'Id Wevel, INS nghl to reinstate snail not apply 11 the . case of arceleianun under Section 18 20. Sale of Note; Change of Loan Services: Notice of Grievance. The Note or a partial interest in the Note together with this Security instruments can be sold one Or more times without prior notice to Borrower. A sale might result In a change in the entity (known as the 'Loan Services') that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this 5ecurily instrument, find Applicable Law. There also might be one or mare changes of the Loan Servicer unrelated to a sale of the Note. If there is a change al the Loan Servicer, Borrower will be given written notice of the change which will slate the name and address of the new Loan Services, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. II the Note is sold and thereafter the Loan is serviced by a Loan Services other than the purchaser of the Nate, the mortgage loom servicing obligations to 6o:rov+er rnli re..a.n vJiln lht Loan Selll- of tiC lldn_Icrred lu a siccei Sol Luon Se.-er a-j are tut assumed by the Note purchaser unless onherwise provided by the Note purchaser. Nether Borrower nor Lender may cornmcn-_ join, of be joined to any Iud,ciul action I— either an individual hOganl ,r the member of a class) that arises from the other party's actions pursuant to This Security rnsuumani or that alleges that the the, party hits breached any plbvisiarh 111, or any duty awed by reason ot. Ihis 5al:unty Instr urnenl. unhl Such PENNSYLVANIA Single Family-Fannie MaelFreddie Mac UNIFORM INSTRUMENT Form 3039 1101 Page 6 of B MORTGAGE: Lunn No 33332241 (Continued) page. 7 f.i....... Ma, rtl tl?c M.f. UM FQRFA I N.GTRIlt:1F.NT ?'fNNS'f l.V ?I NIG ^, ,.?, Germ 300!) t_ `" MORTGAGE Loan No: 33332241 (Continued) Page 8 CERTIFICATE OF RESIDENCE I hereby certify, that the precise address of the mortgagee, COMMERCE BANK/HARRISBURG N.A., herein is as Iollows: RESIDENTIAL MORTGAGE, 100 SENATE AVENUE, CAMP HILL. PA 17011 Alturney or Agent for Mortgagee ISpace Below This Line For Acnnowleegmentl INDIVIDUAL ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA I / 1SS COUNTY OF __, ,t 4t3zt / 1 On this, the day of 20 L,2 before me the undersign d Notary Public, personally appeared CODY A. CARSAUGH. known to me for satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he or she executed the same for the purposes therein contained. In witness whereof, I hereunto set my hand and official sal. 140IARIAL SEAL ? ???f MICHELE A. BLOUSE, NOTARY PUBLIC Notary Public in and for the State of /?1c York Twp., York County 6?COwmisNilon• Expirns No, 29, 2005 ••w f PENNSYLVANIA Single Family-Fannie Mae/Freddle Mac UNIFORM INSTRUMENT Form 3039 1101 Page 8 of 8 _ J This Indenture ? I'l J C : is \ ?• I c) ?: EXHIBIT 'A LEGAL DESCRIPTION ALL that certain piece or parcel of land sir_.;at:e _n the Borough of New Cumberland, County .A ;- uPiberIand a nd nrrmnnwe1ath of Pennsylvania. more pa r. t_icu': a=:a;y bn:.nd(:-d and desrtr:'r•e:i a:., to w 1 t. PARCEL ?L: BEGINNING at a point on the northeasterly side of Carol Place, which pint of beginning is a distance of five hundred twenty-four and thirty-four hundredths (524.34) feet from the north end of an arc of a curve having a radius of sixteen (16) feet connecting the northern right-of-way line of Carol Street and the eastern night-of-way line of Carol Place: thence North thirty-six (36) degrees fifty-s:x (56) minutes thirty (30) seconds East, a distance of one hundred seventy-seven and twenty-eight hundredths (177.28) feet to a point: thene North forty-one (41) degrees twelve (12) minutes West, a distance of one hundred twenty-two and twelve hundredths (122.12) feet to a point: thence South forty-eight (48) degrees twenty-nine (29) minutes West, a distnace of two hundred sixty-one and seventy-nine hundredths (261.79) feet to point; thence South fifty-four (54) degrees thirty-two (32) minutes East. a distnace of one hundred twenty-two and two hundredths (122.02) feet to a point on the northwesterly side of Carol Place: thence along the line of CArol Place by a curve to the right for a radius of fifty (50) feet. an arc distance of seventy-nine and eighty-two hundredths (79.82) feet to the point and place of BEGINNING BEING all of Lot No. 8 and part of Lot No. 9 or, the Plan Westove_ Terrace, New Cumberland Borough, Cumberland Count'', Pennsylvania. as recorded on February 21, 1954 -In the Office of th«2 Recorde rof Deeds of Cumberland County in Plan Book. 77. Page !I. Parcel Identification Number J rl L(?.:.i •.lr':? '.,:i?.a ir,il I:.:-'ti..!I`. ? ?r...:?.:. l.s•.?;' il;?? ( I n I1)'??illt.l u I I ,I)f.?i' ('11(11('"'!.{)\i {(1\11'1\'if.?.1`( ( I'Iz I II II \ I I (II I\I'."II)I.'\( I ( ()\ I-'l()1\\I.\I.III () 1 1'j-"\'l l \ \\ I\ i f n l ?• I\ r l l , f If(Ht I. rl? l \II' i 11 !?r . III M NOTARIAL SEAL 1 t?51CHcL= 11. BICUSE. '°?+T. '.'<SL.C t 1111 V-k Twp.. ':irk i;nunl, l?l\Irl?.\? I %I III r)1. !'I •\11 \?, f (11 ?Il X11 ( I \11;1'Itl ?'•If 1 I:I' f'M:DI. U "EXHIBIT C" rtll„, LOAN POLICY 01 1. H.. INSI'It,??c'1: ?I UNITED GEINERAI. N11. f, lF?;Q ?? `I'IT1.E INSURANCE COMPANY i I It, Iit] IACIAtilt!\ti Ila 1\11'I I\I R.\1;1. III( I\111'111 Ce lla l\It 11\I--I: \LIL i,I?I ',I`.I I?I'??1 (1111111 It \\II I III. li1Vl11I III" \yll Slll'I 1. ?\1111\5.1 MILD Id \I.I: 11 11111 I`"1 Ii \\i 1. i.l !\II'?\\1 ., l': d,a,ol••,..nl„•f,iln.u brlrm ,..iI I. .I It, l „wl .ul•.. '-m- -.1 Dal, „I I',a:.:.i1• .u: w ?, 6.,hlL . 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Ir Jn Huh- Il.a.. . 1 I I. i : it i„? 1• mi y , p„ t, 1•:n ut. Il', .. J . ..,. .1i 11 - I., .. ,,,, d l.ul,•I.r o,J I,,. 1.:11,1).` I•.r:l, u,i;', nl1l III, il, „.,I,J I.,::1, 1; 1111 III til, ,I." he, u:!• a +Jt.'I i1:a Ihnn 11 1:1 111, 1 11-I 11:1• I I'.1 I:I:I, I .It:.l ... .11.,.1:..: ..... ,,1 1 r , . It 1... q•, . 111,1 ul. tq , 1, 1,• ..hl, IJ. I.i1RI1.1'I}'I.I}11111'.111ll Jill" 1'111.111: 1'111'11.11\'1 iHI It 11\11t it I. .......... 'I I....... rr •I,. 1..1 :.:; IF. 1. I: It- p'l, Ill), 1-1, ..1.1,11 t- . .. , ,1.11 x11,,1'• '!:I .II 111, I. 1 Ih, 1., „1 It. tn.r „1 , .. :lit Irlh I III 1.11. . ::I •. 1, I , ,. - I I r1,. 1•. h. ,,,. i rl n, II..•I:. i:1, . .1:111 1 . „ , , I.,1 I ...: :1, ., n.tl11rn1 .•I. ,I„h•I........ .. r L,., 11 I', IV •11 I,I' I. I'1, o it. III, I.r . .r..:l-?,..,.. ,.I h t- I Ir. 1 ?S1`CF. HA lit 1.111' 1 1 - 11,1 ., I. Ir ,,. .I It,• I I 1 I . ,r 1I I. ' ', I '.I h1n,1, 1'.. , It, 1+.,11,.•h.ll 1,-.h. n.1 r„1 r,'hI h.. I...., ,1.n,1 .,11 III1 •. I• ... 1•.1.x1. •h? 11 ,. ,na n ,r VIII I . , .: x1.1 vl l., r u,, wricls. t+1iF:HF. srs I. 111 1 - .IuorJ I.ly: rn Ihr( f "Id 1,1 ,."1 11 "i"14 . t, I, n.111,t.1 rtlu 1.. .1,1•'.r 111.111 11: hill h' rI:IJ" `1 It,, 1 ',.I il? Will :I r.. 11 (- II•a1„ : I`It It,... Ir.\II 11, II„?1 I?, .,, I. -.'Ill I l r ?i eipp-m UNITED GENERAL. T FLE INSURANCE C:OINIPANY LOAN POLICY SCHEDULE A Policy No.: Date of Policy: Premium' :Unoum of Insurance 63645389 04/25/06 at 5126, 000.00 Agent's File No. SIII1l11lancons lawc wilh: Amount of Reissue Policy: CM5-209 S I Name of Insured. Commerce Bank/Harrisburg, N.A., its successors and/or assigns. I fhe estate or interest in the land Moch is encumhercd by the mOrlgage is. Fee Simple 1. Title to (fie estate or intcresl in the land is Nested in Cody A. Carbaugh -1 . The insured mortgage and assignments thereof. if any. are described as follows: Mortgage executed by Cody A. Carbaugh in favor of Commerce Bank/Harrisburg N.A., dated 04/14/06 and recorded 04/25/06 in Official Records Book 1947 at Page 4876, of the Public Records of Cumberland County, Pennsylvania, in the original principal amount of $126,000.00, j. The land referred to in this policy is shoaled in the county of Cumberland the state of Penns lvania and is described as follows EXHIBIT "A" LEGAL DESCRIPTION ALL that certain piece or parcel of land situate in the Borough of New Cumberland, County of Cumberland and Commonwelath of Pennsylvania, more particularaly bounded and described as follows to wit: See Continuation Sheet Valid only if attached to ALSA Loan Policy and Schedule B of United General'ride Insurance Company. Ad. I A Lunn Policy Schcdulc A t.lti-I fort Nn 251 (711 ()It) LiNITED GENERAL TITLE INSURA,NC.E COMPANY CONTINUATION SCHEDULE FOR USE Nvrm CO,NIi`. ITMENTOR POL.IC11-s SCHEDULE,. A-5 (( ominue(j) \Eenl'c hic No.: CM5-209 Commiuncnl No.: Nilicy No.: 63645389 PARCEL #?1: BEGINNING at a point on the northeasterly side of Carol Place, which pint of beginning is a distance of five hundred twenty-four and thirty-four hundredths (524.34) feet from the north end of an arc of a curve having a radius of sixteen (16) feet connecting the northern right-of-way line of Carol Street and the eastern right-of-way line of Carol Place; thence North thirty-six (36) degrees fifty-six (56) minutes thirty (30) seconds East, a distance of one hundred seventy-seven and twenty-eight hundredths (177.28) feet to a point; thane North forty-one (41) degrees twelve (12) minutes West, a distance of one hundred twenty-two and twelve hundredths (122.12) feet to a point; thence South forty-eight (48) degrees twenty-nine (29) minutes West, a distnace of two hundred sixty-one and seventy-nine hundredths (261.79) feet to a point; thence South fifty-four (54) degrees thirty-two (32) minutes East, a distnace of one hundred twenty-two and two hundredths (122.02) feet to a point on the northwesterly side of Carol Place: thence along the line of CArol Place by a curve to the right for a radius of fifty (50) feet, an arc distance of seventy-nine and eighty-two hundredths (79.82) feet to the point and place of BEGINNING- BEING all of Lot No. 8 and part of Lot No. 9 on the Plan of Westover Terrace, New Cumberland Borough, Cumberland County, Pennsylvania, as recorded on February 21, 1955 in the Office of the Recorde rof Deeds of Cumberland County in Plan Book 7, Page 11. Parcel Identification Number Connnu:m„n tid?cJ ulc UGI I'Om, N0. I SS 1 7a 1:011) UNITED GENERAL, fITLF INSURANCE COMPANY LOAN POLICY SCHF-DULE 13-1 EXCEPTIONS FROM COVERAGE Policy No.: 63645389 1-his policy does not insure against loss or damage and the Company will not pay costs, atlonteyti fees or expenses .shish arise hs. reason , f. PA11F I L Rights or Claims of parties in possession not shown by the public records '. FaSe'ItICDIS Or claims 0f CaSCmen1' 1101 shown by the pOhlic records. 1. Discrepancies, conflicts in boundary lines, encroachments, overlaps. Nanauons m shortage in area or content. pam walls and/or any other maners that would he disclosed by a correci suvcv and/or physical inspection of the premises. 4 Ant, lien. or right to lien- for services, labor or material I1CIC1010TV or hereafter furnished. imposed by law and not shun,,/ by the public record. ... 'faxes or special a.cscssments which conslittuc liens or are duc or pavahlc including unredeemed tax sales. hem(s) numbered above are her by dcleicd. ALFA Loan Policy Schedule B.I IKiT Form No. 2S2 (7;31/00) UNITED (,ENERAI,'1'1'1'1,1-'INSUIIANC,'I,-I COMPANY ENDORSE I)IIENT Un;r hwd n:uI made :: pvi „f Policy Number 63695389 Pile Numher CM5-209 fhe (i011lpany insures that the covenants, conditions and restrictions affecting the title to the land cnnlained m have not been violaled and that future violation lhereol will not cause a forfeiture or reversion of title. AS used in this endorsement, the words "covenants. conditions and restrictions" shall 1101 he deemed 10 refer Io Or include any terms. covenants, conditions or limitations contained in an instrument creating a lease. As used in this endorsement, die words "covenants. conditions and restrictions" shall not be deemed to refer w nr urch;de any covenants, conditions or restrictions relating to environmental protection. '['his endorsement is made a part of the Policy and is suhjecl to alI of the tens and provisions thereof and ul any prior endorsement thereto, except that the insurance afforded by this endorsement is subject to neither paragraph 3(d) of the Exclusions From Coverage nor paragraph 3(b) of the Conditions and Slipuhrlions. l xce.pt to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and anv prior endorsements, nor does it extend the eilective date ol. the Policy and any prior endorsements, nor does it increase the face amount thereof. NY PlIT.VESS WHEREOF, Ilniled General lisle Insurance Company has caused [his endorsement to he issued and become valid when signed by an authonzed officer rat licensed agent of the Company. UNITE-D GENERAL "IITU 1NSURANCP. COMPANY GLOBAL SETTLEMENT S CLOSING, LLC fiv: Authorized Ollicer Or Licensed Agent TIR130l'-PA LNDORSPOP,"r )Oil (Re,mctinns- No Apparent bis;intc Vmlatit ,)(Rcv'dw,olat(1) LOAN POLICY ONLY ,,..r.u,•:r;,...;,I..: "r.,.::,, ., UNITED GENERAL, TI.1 LE INSURANCE COMPANY ENDORSENIENh Auached ;u and made a pm-t of Policy Nuniher 63645389 Pile Number CM5-209 The Company eliminates from its Inan policy ;he cxceplion reading as follow s: and further insures, except as set forth above, against loss h, reason of encroachment. other !lian by parlyI walls, whether by the building on the land encroaching upon adjacent property or by any building on adjacent property encroaching upon the said land. 'This endorserent is made it pan of the Pcilicy and is subject to all of the terms and provisions thereof and of any prior endorsement therein, except that the insurance afforded by this endorsement is subject to neither paragraph 3(d) of the Exclusions from Coverage nor paragraph 8(b) of die Conditions arid Stipulations. Except to the extent expressly stated, it neither modifies any of the terns and provisions of die Policy and aiv prior endorsements, nor does it extend the efTective date of the policy and any prior endorsements. nor does it increase the face amount thereof. IN WITNESS WHEREOF, United General title hisurance Company has caused this endorsement to be issued and become valid when signed by an authorized officer or licensed apent of the Company. UNI-1'1il) Gl3NERAl.. TITLE 1NSURANCfi COMPANY GLOBAL SETTLEMENT b CLOSING, LLC By /J/ Authorized Officer or Licensed Agent HIU31)P- L'A t'.NUORSEMEN'f 700INtongage Survey I-xcepimill(07'01'95) LOAN 1101 R Y ONLY , „ r UNITED GENERAL TITLE INSURANCI COMPANY ENDORSENIENT Anached to ;md matte a part of Policy Nuntber 63645389 bile t•htmber CM5-209 Issued In: Commerce Bank/Harrisburg, N.A., its successors and/or assigns. The insurance afforded by [his endorsement is only effective if the land is used of is to be used primarily fete residential purposes. The Company insures the insured against loss or damage sustained by reason cil' lack of prionh of the lien of the insured mortgage over: tai any environmental protection lien which, at Date of Policy, is recorded in those records established under state statutes at Date of Policy for the purpose of imparting constructive notice A matters rclaling to real propeny to purchasers for value and without knowledge, or filed in the records of the derk of the United States district court for the district in which the land is located, except as set forth in in Schedule B; or Ih1 any environmental protection lien provided for by any state statute in effect at Daie III, I'nlic_\-. cscrpt environmental protection liens provided for by the following state statutes: (NONE) Ibis endorsement is made a part of the Policy and is subject to all of the terms and provisions thereof and of any prior endorsement thereto. Except to the extent expressly stated, it neither modifies any of the tens and port isions of the Policy and any prior endorsements; nor does it extend the effective date of the Policy and any prior endorsements, nor does it increase the face amount thereof. IN 117 NESS 1(' I REOF, United General title Insurance Company has caused this endorsement it, he issued ;md become valid when signed by an authorized officer or licensed agent of the Company. UNITED GENERAL. TITLE INSURANCE COMPANY GLOBAL SETTLEMENT S CLOSING, LLC Authorized Officer or Licensed Agcm TIRROP- PA ENDORSFt.1FNT 900 (AL I A Fnd-wment R.t) (F_nvirrmnxhnal Protection Lien lindorscrnent) (03r01'9i ) RPSIDE'N*IIALLOAN POLICY O'`TN 1111d,,:...n "EXHIBIT D" Page: 1 Document Name: untitled RLDILO RL DISPLAY LOAN RANK 0184 FWD ) RESID CONST. FLOAT 000 033332241 CODY A CARBAUGH LOAN BAL 126,000.00 CONTRACT DATE 04/14/06 LOAN STATUS ACTIVE. INT DUE 2„534.00 ADVANCE DATE 04/14/06 PROCESS STAT NORMAL INS DUE MATURITY DATE 04/14/07 NON-ACCR STAT ACCRUING REBATE INS LAST TRAN DATE 06/30/06 INTEREST TYPE SIMPLE RUN-TO ESCROW AMT LST MAINT DATE 04/18/06 INT RATE CODE VARIABLE SNGL LATE FEES 93.35 LAST PRIN TRAN 04/14/06 RECALC TERMS NO RECALL LOAN FEES PRIN PAID TO 00/00/00 REPYMT METHOD SUMMARY BILL PREPYMT PEN .00 INT PAID TO 00/00/00 REVOLVE CODE NON-REV MULT PAYOFF AMT 128,627.35 ACCR THRU DATE 0'7/04/06 RENEGOTIATED NO PAST DUE 1,867.25 PYMTS PAID TO 00/00/00 DAYS PAST DUE OSO NEXT DUE 918.75 NEXT PYMT DUE 05/14/06 PYMTS REMAIN 0012 LAST PYMT .00 LAST PYMT DATE 00/00/00 PYMTS PAID 0000 PARTIAL PD .00 RIGHT TO CURE 00/00/00 PAYBACK INDEX REPYMT SCHED SUBDZ PYMT .00 NEXT RATE CHNG 07/05/06 BOUGHT LOAN NO LOAN AMT 126,000.00 ACCRUAL RASE 360/360 BANK OWN PCT 100.00000 AVAIL CRED .00 BRANCH 2000 OFFICER 251 NON-ACCR .00 CLASS lA EXTENSIONS 000 MIN EARN .00 COLL CODE RE RENEWALS 000 RES DUE DIRECT/INDIR DIREC'T' ***** TIMES LATE ****'* VARIANCE PL US 1.00000 INT RATE 09.25000 OS 15 30 60 90 180 PER DIEM 32.37500 NEGATIVE AMOR'1 NO 2 2 1 0 0 0 Date: 07/05/2006 Time: 3:19:21 PM "EXHIBIT E" SF I RCH ONE ABS" RAC:.TI_ G, INC. l-US`Ient O-,,vne' Seal.-cjl S ^7 Lu16r?.1a riilj .A 11 1 m .,klo If L ?+.. S. 1. root, ? '1, i•. 6','t? 1 Il.?l r C. = i (1 0 i•.`.lorl ?•: (Y) F:( ir. p 4 1 (( r: r. C. 1 i 1 r 'Yr c I ?, CC( co, ?1 elrnp _ fY1 G. 'L (.?i: m 1 ns t.. E r z _l I ct lr . <...C F_ (:. (1 '., ?%4.r r ?S •, ? __ 1c'f^? tiN:vd 1'S.4:f ' f n: c:J t lJ?yacrm., Cmrnr 1. n', :? :.. ^, :, r;-.•.r:•a.i .... v. _?. . `:.:.. ? ........:.. :.. ,. ... c-..: ::: ?: ::: 1. I. F.:. L'I•?i:.. ,v.::.nv SEARCH O.NI. ABSTRACTING, INC:. Per. lfxl r r r i -- ?p?D] ll1R.i_f?._h.Lill?_i )`. ?_ ? ?_ti_? 1L _?_ ? ! ?..!_ C ?`?) ?j•- . ,It (i•.?1uRe1 ?.c:t li'` r7 1??.? ?? f,' , 1 ? ?C:1 t/ Cer , r?'q . '? :: yr I imrru n' --- ---------... ---._..._... :- l"n l ludl7ncnl%Lira, T, pi, Poll, F.1rIP„ I n rot,- ICIJinL,) Name Pocnd'Al,, IJ-pu 1 rr•:r I) MOO; 11 il!in!! D.'tr ? u,nu ri; _?- i :•. tgnr f.l. Inl?? I _f.l `. " ;F,kIz H 0X A1,,?;'I N" G, INC. Current ()w'Ier Searcli lap(V A darns I k- c ? I ? { ? G f Cnr (crab - . t,1 ui _AJ • I ) 1 ? , / ? 1,11r. C {-(tir , ::__ ?. ..ti 1, t ': ? ?.. '.ficr I J. .fist !? w?. ?: , •+t e r 3„ _S F<< a c '_ __r 1^ a G s ?, ?•, (.'n (: r' h c to D l i :?. t }:rr ^r rlnl 1c.i pnenes L G,h: r 1.:?: r.? '. ?,G r:`til. art :.`, r.:r:- •aP It:I.!.. Pr, 1;1rl: (lo SEAR CH ONF ABSi-RACTING, INC. I I r ? •,: )?'tf?C? I1 : y r.:•, J ?t I 1 i ?1_r ?, ,rl,l cn ? r 1 ? r./ 7 / L' ._...i ? .? (o ??? ?.: , ? ? r ? ? < i`• i _ ).., . f 11 r/ Il .' f 1 ?:t '? rl ?l.I h1 La ) ??- ? . ( I 1 ` _ •? __44( 11 ?_ .. l .asyen,•,i: I r _ _. -- ? 3?r rev ; r. ? rnr•r1 CI 6 ...7 )rt l lost.; _ - .....?_ - _._.. _ ... _.. _ . ,. gr h.n: ,. i I lud; , E:ale I - _.. Ar1u unt '_i•!'.i r :'::;;n? -eil.e.•' i AIK n hvo ? I - - - I i . ;."t. I-ii1 . ^.:. 17(111 rv p a w w .? s ?; a j , , KAPLIN STEWART MELOFF REITER & STEIN, P.C. By: Michael P. Coughlin, Esquire I.D. No. 43793 Union Meeting Corporate Center 910 Harvest Drive Blue Bell, Pennsylvania 19422 (610) 941-2456 Attorneys for Defendant COMMERCE BANK/HARRISBURG, N.A., Plaintiff V. UNITED GENERAL TITLE INSURANCE COMPANY, Defendant COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA No. 07-3152 ENTRY OF APPEARANCE TO THE PROTHONOTARY: Kindly enter the appearance of the undersigned on behalf of Defendant, United General Title Insurance Company, in the above-captioned matter. KAPLIN STEWART MELOFF REITER & STEIN, P.C. By: - M CHAEL . COUGHL , Attorneys for Defendant Dated: June M , 2007 MPC/8/8/1021552_1 06/11/2007 12:07 PM C'> ? c? ? -ri ?' c?.- ?= -c? ??? j._;,. ?- ,? i 'f?i ?? ~-? 4+ 9 TO: Plaintiff You are hereby notified to file a written response to the enclosed New Matter within 20 days from service me against you. hereo;9mr By: Michael . Coug hlin, Esq ' e KAPLIN STEWART MELOFF REITER & STEIN, P.C. By: Michael P. Coughlin, Esquire I.D. No. 43793 Union Meeting Corporate Center 910 Harvest Drive Blue Bell, Pennsylvania 19422 (610) 941-2456 Attorneys for Defendant COMMERCE BANK/HARRISBURG, N.A., Plaintiff V. UNITED GENERAL TITLE INSURANCE COMPANY, Defendant COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA No. 07-3152 DEFENDANT'S ANSWER TO PLAINTIFF'S COMPLAINT WITH NEW MATTER Defendant, United General Title Insurance Company, by its attorneys, hereby answers Plaintiff's Complaint as follows: AS TO "LITIGANTS" 1. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the matters asserted. 2. Admitted in part, denied in part. It is denied that Defendant has its principal place of business at 999 18th Street, Suite 3400, Denver, Colorado 80202-2434. While Defendant's principal place of business was formerly located at that address, Defendant's current principal place of business is located at 8310 S. Valley Highway, Suite 130, Englewood, Colorado 80112. The remaining allegations are admitted. MPC/553 4/ 1 9/ 1 04457 3_ l 07/10/2007 03:36 PM AS TO "FACTUAL BACKGROUND" 3-5. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the matters asserted. By way of further response, these allegations seek to characterize the contents of a certain "Commitment Letter" attached to Plaintiff's Complaint as Exhibit "A". That "Commitment Letter" is in writing and therefore speaks for itself. Plaintiff's characterization of the contents of the "Commitment Letter" is denied. 6-10. Admitted. 11. Denied as stated. The Mortgage is in writing and therefore speaks for itself. Plaintiff's characterization of the contents, or legal effect of, the Mortgage is denied. 12. Admitted in part, denied in part. It is denied that the two transactions occurred "contemporaneously". To the contrary, Cody Carbaugh's ("Carbaugh") acquisition of the property located at 83 Carol Place, New Cumberland, Pennsylvania ("83 Carol Place") occurred on April 13, 2006. Carbaugh's acquisition of the property located at 92 Carol Place, New Cumberland, Pennsylvania ("92 Carol Place") occurred on April 14, 2006. 13. Admitted. 14. Denied. Plaintiff's allegation that Principal Settlement Services, LLC ("Principal") "was an authorized agent and representative of Defendant" is a conclusion of law to which no response is required. By way of further response, in April, 2006, Principal was a limited agent of Defendant for the limited purpose of issuing title commitments and title insurance policies underwritten by Defendant. 15. Admitted in part, denied in part. It is admitted that Principal conducted the settlements of 83 Carol Place on April 13, 2006, and of 92 Carol Place on April 14, 2006. MPC/5 5 34/1 9/1 0445 73_I 07/10/2007 03:36 PM Plaintiff's allegation that Principal was "the authorized agent and representative of Defendant" is a conclusion of law to which no response is required. By way of further response, paragraph 14 above is incorporated herein by reference. 16. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the matters asserted. By way of further response, Plaintiff's allegation that Principal is "an authorized agent and representative of Defendant" is a conclusion of law to which no response is required. By way of further response, paragraph 14 above is incorporated herein by reference. 17. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the matters asserted. By way of further response, Plaintiff's allegation that Principal is "an authorized agent and representative of Defendant" is a conclusion of law to which no response is required. By way of further response, paragraph 14 above is incorporated herein by reference. 18. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the matters asserted. By way of further response, Plaintiff's allegation that Principal is "an authorized agent and representative of Defendant" is a conclusion of law to which no response is required. By way of further response, paragraph 14 above is incorporated herein by reference. 19. Denied. This is a conclusion of law to which no response is required. 20. Denied as stated. It is admitted that Principal issued to Plaintiff a "Loan Policy of Title Insurance", Policy No. 63645389, underwritten by Defendant ("Title Policy") and that a copy of the Title Policy is attached to Plaintiff's Complaint as Exhibit 'T". It is denied that the MPC/5534/19/1044573_1 07/10/2007 03:36 PM Title Policy was issued on April 25, 2006. To the contrary, the "Date of Policy" under the Title Policy is April 25, 2006. 21. Denied. The Title Policy is in writing and therefore speaks for itself. Plaintiff's characterization of the terms of the Title Policy is denied. 22. Denied. The Title Policy is in writing and therefore speaks for itself. Plaintiff's characterization of the terms of the Title Policy is denied. 23. Denied. These are conclusions of law to which no responses are required. 24. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to what and when the "Bank learned". 25. Denied as stated. It is admitted that by letter dated July 7, 2006, Plaintiff submitted to Defendant, at Defendant's office located in Canonsburg, Pennsylvania, a "Proof of Loss or Damage", and that a copy of that letter and the "Proof of Loss or Damage" is attached to Plaintiff's Complaint as Exhibit "G". The remaining allegations are either conclusions of law to which no responses are required or allegations which seek to characterize the contents of the letter or "Proof of Loss or Damage" which are in writing and therefore speak for themselves. 26. Admitted. 27. Admitted only that Defendant has not paid Plaintiff the sum demanded by Plaintiff. 28. Denied. This is a conclusion of law to which no response is required. 29. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the matters asserted. 30-32. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the matters asserted. MPC/5534/1 9/1 0445 73_l 07/10/2007 03:36 PM AS TO "COUNT I - NEGLIGENCE" 33. All paragraphs above are incorporated herein by reference. 34-36. Denied. These are conclusions of law to which no responses are required. WHEREFORE, Defendant respectfully requests the Court to enter judgment in its favor and against Plaintiff plus reasonable attorneys' fees and costs of suit. AS TO "COUNT II - BREACH OF CONTRACT" 37. All paragraphs above are incorporated herein by reference. 38. Denied as stated. It is admitted only that on April 14, 2006, Carbaugh paid $1,278.75 for the cost of the Title Policy. The remaining allegations are denied as conclusions of law to which no responses are required. 39. Denied. This is a conclusion of law to which no response is required. By way of further response, paragraph 14 above is incorporated herein by reference. 40. Denied. It is denied that on or about April 25, 2006, Principal remitted to Defendant the title insurance premium referenced in paragraph 38 of Plaintiff's Complaint. To the contrary, Principal has remitted only a portion of that premium to Defendant. 41. Denied. This is a conclusion of law to which no response is required. 42. Denied. This is a conclusion of law to which no response is required. 43. Admitted in part, denied in part. It is admitted that Defendant has not paid to Plaintiff the amount demanded by Plaintiff. It is denied that Defendant is obligated under the terms of the Title Policy or otherwise to pay the amount demanded by Plaintiff. WHEREFORE, Defendant respectfully requests the Court to enter judgment in its favor and against Plaintiff plus reasonable attorneys' fees and costs of suit. MPC/55 3 4/1 9/1 0445 7 3_1 07/10/2007 03:36 PM NEW MATTER 44. All paragraphs above are incorporated herein by reference. 45. Plaintiff's claims are barred or limited by the doctrines of waiver, estoppel or laches. 46. Plaintiff's claims are barred or limited by the terms of the Title Policy. 47. Plaintiff's claims are barred or limited by the applicable statute of limitations or statute of frauds. 48. Plaintiff's claims are barred or limited by the doctrines of comparative negligence, contributory negligence and/or assumption of the risk. 49. Plaintiff has failed to mitigate its alleged damages. 50. Plaintiff's damages, if any, were proximately caused by the actions or inactions of persons over which Defendant had no control, or right of control. 51. Plaintiff's claims are premature in that Plaintiff has not yet suffered an actual loss compensable under the terms of the Title Policy. 52. Plaintiff's negligence claim is barred by the "gist of the action" doctrine. 53. Plaintiff's negligence claim is barred by the "economic loss" doctrine. 54. Plaintiff's negligence claim is barred by Section 14(b) of the "Conditions and Stipulations" of the Title Policy which provides that "[a]ny claim of loss or damage, whether or not based on negligence, and which arises out of the status of the lien of the insured mortgage or of the title to the Estate or interest covered hereby or by an action asserting such claim, shall be restricted to this policy". MPC/5 5 3 4/1 9/1 0445 7 3_l 07/10/2007 03:36 PM WHEREFORE, Defendant respectfully requests the Court to enter judgment in its favor and against Plaintiff plus reasonable attorneys' fees and costs of suit. Respectfully submitted, KAPLIN STEWART M LOFF REITER & STEIN, P.C. sy: MICHAEL P. COUGH W ESQUIRE Attorneys for Defend Dated: July 10 , 2007 MPC/5534/19/1044573_1 07/10/2007 03:36 PM VERIFICATION I, G. Randolph Comstock, hereby verify that I am Assistant Vice President of United General Title Insurance Company, am therefore authorized to execute this Verification on its behalf, and that the facts set forth in the foregoing pleading are true and correct to the best of my knowledge, information and belief. I acknowledge that I am subject to the penalties of 18 Pa.C.S.A. §4904 relating to unworn falsification to authorities. G. Randolph Comstock, as Assistant Vice President Dated: July 10, 2007 a MPG5534/ 19/ 1044573_ I 07/09/2007 05:00 PM CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing "Answer to Plaintiff's Complaint with New Matter" was caused to be sent, by first-class mail, postage prepaid, by the undersigned, on the date stated below, to the addressees stated below and at the addresses stated below: Jack F. Ream, Esquire Ream, Carr, Markey Woloshin, LLP 119 E. Market Street York, PA 17401 KAPLIN STEWART MELOFF REITER & STEIN, P.C. By: Ak/. MICHAEL P. COUGHL , ESQUIRE Attorneys for Defendant Dated: July IQ , 2007 MPC/5 534/1 9/1 0445 7 3_1 07/10/2007 03:36 PM ? `?? { e ? `? n { .?- _ 1?. ? , 1^ ? ??' I - ?.? < ? (?k - =r ?t., 1 (,..? f f\ ??"' SHERIFF'S RETURN - OUT OF COUNTY CASE NO: 2007-03152 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND COMMERCE BANK HARRISBURG NA VS UNITED GENERAL TITLE INS CO R. Thomas Kline , Sheriff or Deputy Sheriff who being duly sworn according to law, says, that he made a diligent search and and inquiry for the within named DEFENDANT to wit: UNITED GENERAL TITLE INSURANCE COMPANY but was unable to locate Them in his bailiwick. He therefore deputized the sheriff of WASHINGTON County, Pennsylvania, to serve the within COMPLAINT & NOTICE On June 20th , 2007 , this office was in receipt of the attached return from WASHINGTON Sheriff's Costs: So an.s 'Wigr Docketing 18.00 Out of County 9.00 Surcharge 10.00 Tho as 1ne Dep Washington Co 59.80 Sheri f of Cumberland County Postage 3.42 100.22 6+.2 s'IO I 06/20/2007 REAM CARR MARKEY WOLOSHIN Sworn and subscribe to before me this day of , A. D. SHERIFF'S RETURN - U.S. CERTIFIED MAIL CASE NO: 2007-03152 P COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND COMMERCE BANK HARRISBURG NA VS. UNITED GENERAL TITLE INS CO R. Thomas Kline , Sheriff of Cumberland County, Pennsylvania, who being duly sworn according to law served the within named DEFENDANT UNITED GENERAL TITLE INSURANCE, COMPANY by United States Certified Mail postage prepaid, on the 30th day of May ,2007 at 1000:00 HOURS, at 999 18TH STREET SUITE 3400 DENVER, CO 80202-2434 and attested copy of the attached COMPLAINT & NOTICE with The returned receipt card was signed by SIGNATURE ILLEGIBLE on 06/05/2007 . Additional Comments: CARD WAS MARKED THAT DEFENDANT HAD MOVED, BUT NO NEW ADDRESS WAS PROVIDED Additional Comments Sheriff's Costs: Docketing Service Affidavit Surcharge So 6.00 7.64 R. omas Kline .00 Sh iff of Cumberland County 10.00 V U 23.64 ? ?)as( Paid by REAM CARR MARKEY WOLOSHIN on 06/20/2007 . Sworn and Subscribed to before me this day of A.D. , a true . Together WASHINGTON COUNTY, PENNSYLVANIA OFFICE OF THE SHERIFF SAMUEL F. ROMANO SHERIFF JAMES B.DALESSANDRO CHIEF DEPUTY Court Docket #: 07-3152 CIVIL COURTHOUSE SQUARE SUITE 303 100 WEST BEAU STREET WASHINGTON, PA 15301 724-228-6840 FAx 724-223-4719 Sheriff File Number - 07002473 County of WASHINGTON, Commonwealth of PENNSYLVANIA COMMERCE BANK/HARRISBURG, N.A. vs. UNITED GENERAL TITLE INSURANCE COMPANY Affidavit of Service COMPLAINT I hereby CERTIFY and RETURN that on 6/7/2007 at 11:30AM at 135 TECHNOLOGY DRIVE, SUITE 501 CANONSBURG, PA 15317 the within COMPLAINT, was served on UNITED GENERAL TITLE INSURANCE CO., the defendant named therein, in the following manner: ALTERNATE PERSON By delivering to and leaving with CHRISTI NERONI the COUNCIL to the defendant a true copy thereof, a person over the age of eighteen. Said address was the BUSINESS of the defendant. SERVICE ATTEMPTS Date: 6/6/2007 Time: 3:35 pm 135 TECHNOLOGY DRIVE SUITE 501 CANONSBURG, PA 15317 Fees Received from Attorney: MILEAGE ($34.30), POSTAGE ($1.00), FIRST DEFENDANT BASE COST ($24.50) Total Charges $59.80 Attorney Name: REAM, CARR, MARKEY & WOLOSHIN LLP, 119 EAST MARKET STREET, YORK, PA 17401 Affirmed & Subscribed to before Me June 8, 2007 JAMES L ALTMAN, Deputy Sheriff Notary Public NOTARIAL SEAL Sr PAULETTE DANIELS, Notary Public My commission expires: Washington, Washington County, PA .2010 of Washington County ¦ Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. ¦ Print your name and address on the reverse so that we can return the cans to you. ¦ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: 0 Agent B. Recelved_Oy(Printed Name) G. Date D. Is delivery address different from Item 19 u Ye: If YES, enter delivery address below: 0 No Uni ed G,.me Title Insurance 1 rest suite 3400 999, 3. Service Type D4 er, CO 434 )tom certified mail 0 E>epresa Mail ? Registered 0 Return Receipt for Merchandise Ap" ? Insured Mail 0 C.O.D. 4. Restricted Delivery? (Extra Fee) O Yes 2. 7005 1820 0002 4619 0531 07-3152 civil PS Form 3811, February 2004 Domestic Return Receipt 102595-024A-iW UNITED STATES POSTAL SERVICE • Sender: Please print your name, address, and ZIP+4 in this box • R. Thomas Kline, Sheriff County of Cumberland Court House ?'lWe• P4. 17013 First-Class Mail Postage & Fees Paid USPS Permit No. G-10 A IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION: LAW COMMERCE BANKMARRISBURG, No. 07-3152 Civil Term N.A., Plaintiff VS. UNITED GENERAL TITLE INSURANCE COMPANY, Defendant 0 REPLY OF PLAINTIFF, COMMERCE BANKMARRISBURG, N.A., TO NEW MATTER OF DEFENDANT, UNITED GENERAL TITLE INSURANCE COMPANY 44. No response required. To the extent a response is required, Averments 1 through 43 of the Complaint and Exhibits "A" through "G" of the Complaint are incorporated herein by reference thereto. 45. Denied. This Averment constitutes a conclusion of law to which no responsive pleading is required. To the extent that a response is required, Averments 21, 22, 25 and 26 of the Complaint are incorporated herein by reference thereto. In addition, Plaintiff has complied with all requirements of and condition precedents set forth in the Title Insurance Policy attached to the Complaint as Exhibit "F" within the time limits set forth in the Title Policy (Exhibit "F" of the Complaint) in order for Defendant to be liable to indemnify Plaintiff as a result of Plaintiff not having a first mortgage lien against either 83 Carol Place or 92 Carol Place and in order for Plaintiff to be able to timely file a lawsuit against Defendant. 46. Denied. This Averment constitutes a conclusion of law to which no responsive pleading is required. To the extent that a response is required, Averments 21, 22, 25 and 26 of the Complaint are incorporated herein by reference thereto. In addition, Plaintiff has complied with all requirements of and condition precedents set forth in the Title Insurance Policy attached to the Complaint as Exhibit "F" in order for Defendant to be obligated to indemnify Plaintiff as a result of Plaintiff not having a first mortgage lien against either 83 Carol Place or 92 Carol Place and in order for Plaintiff to sue Defendant under the Title Insurance Policy attached to the Complaint as Exhibit "F". 47. Denied. This Averment constitutes a conclusion of law to which no responsive pleading are required. To the extent that a response is required, Averments 21, 22, 25 and 26 of the Complaint are incorporated herein by reference thereto. In addition, Plaintiff has complied with all requirements of and condition precedents set forth in the Title Insurance Policy attached to the Complaint as Exhibit "F" within the time limits set forth in the Title Policy (Exhibit "F" of the Complaint) in order for Defendant to be liable to indemnify Plaintiff as a result of Plaintiff not having a first A mortgage lien against either 83 Carol Place or 92 Carol Place and in order for Plaintiff to be able to timely file a lawsuit against Defendant. 48. Denied. This Averment constitutes a conclusion of law to which no responsive pleading is required. To the extent a response is required, Averments 45, 49 and 54 of the Reply are incorporated herein by reference thereto. 49. Denied. This Averment constitutes a conclusion of law to which no responsive pleading is required. To the extent that a response is required, Plaintiff is not obligated to take any action to mitigate damages other than to comply with the requirements set forth in the Title Policy (Exhibit "F" of the Complaint) in order for Plaintiff to impose liability upon Defendant under the Title Policy (Exhibit "F" of the Complaint) and in order for Defendant to pay to Plaintiff the face amount of the Title Policy (Exhibit "F" of the Complaint). Plaintiff has, in fact, complied with all requirements of the Title Policy (Exhibit 'F') in order to impose liability upon the Defendant and in order for Defendant to be contractually liable to pay to Plaintiff the face amount of the Title Policy (Exhibit "F" of the Complaint. Upon Plaintiff providing Defendant with NOTICE OF CLAIM TO BE GIVEN BY AN INSURED CLAIMANT (Exhibit G" of the Complaint), Plaintiff was not obligated to take any further action regarding the priority Bank's lien against 92 Carol Place or 83 Carol Place since Defendant became solely obligated to deal with the priority of Bank's lien against 92 Carol Place or 83 Carol Place. See paragraphs 4, 5 and b of Title Policy (Exhibit "F" of Complaint). 50. Denied. This Averment constitutes a conclusion of law to which no responsive pleading is required. To the extent that a response is required, Principal at all times was the authorized agent of the Defendant with regards to the issuance of the Title Policy (Exhibit "F" of the Complaint). Reference is made to Answer Averment 14 which is incorporated herein by reference thereto. 51. Denied. This Averment constitutes a conclusion of law to which no responsive pleading is required. To the extent that a response is required, Plaintiff has suffered an actual loss and actual damages under and as provided for in the Title Policy (Exhibit "F" of the Complaint). Plaintiff was to have a first lien against 92 Carol Place or 83 Carol Place The Title Policy (Exhibit "F" of the Complaint) insured that Bank had a first lien against 83 Carol Place. Bank does not have first lien against either 92 Carol Place or 83 Carol Place.. Averment 23 of the Complaint is incorporated herein by reference. Averment 49 of the Reply is incorporated herein by reference thereto. The moment that Bank's lien against 92 Carol Place or 83 Carol Place was not a first lien against 92 Carol Place or 83 Carol Place, Bank suffered an actual loss. 52. Denied. This Averment constitutes a conclusion of law to which no responsive pleading is required.. 53. Denied. This Averment constitutes a conclusion of law to which no responsive pleading is required. 2 54. Denied. This Averment constitutes a conclusion of law to which no responsive pleading is required. Wherefore, the Plaintiff, Commerce Bank/Harrisburg, N.A., requests this Court to enter a judgment in favor of the Plaintiff, Commerce Bank/Harrisburg, N.A., and against the Defendant, United General Title Insurance Company, along with costs of suit. July 27, 2007 Jack F Esquire Ream, arr, Markey & Woloshin LLP (formerly Kain, Brown & Roberts LLP) 119 East Market Street York, PA 17401 I.D. 10241 Phone: 1-717-843-8968 Fax: 1-717-846-6676 E-mail: JckReam@aol.com Attorney for the Plaintiff Commerce Bank/ Harrisburg, N.A. K STATE OF PENNSYLVANIA SS: COUNTY OF Before me, a Notary Public, in and for the said County and State, personally appeared Angela Masser, who, being duly sworn according to law, doth depose and say that she is a Vice President of Commerce Bank/Harrisburg, N.A, a banking organization organized and existing under the laws of the United States of America and registered to do business in the Commonwealth of Pennsylvania, and that as such officer is authorized to make this Affidavit on behalf of Commerce Bank/Harrisburg, N.A., and that the facts set forth in the foregoing document are true and correct to the best of her knowledge, information and belief. COMMERCE BANK/HARRISBURG, N.A. 4-Z (SEAL) Ange Masser Vice resident Sworn and Subscribed to before me this ZW day of 3UIV 20016. 46ta P lic COMMONWEALTH OF PENNSYLVANIA Notarial Seal Lindsay J. Reisinger, Notary Public East Pennsboro Twp., Cumberland County My Canmission Expose Aug. 27, 2008 Member. Pennsylvania Association Or Notaries o C ca M M F CA) ri -O ? A 1 D 4.O Gr-n IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION: LAW COMMERCE BANK/HARRISBURG, No. 07-3152 Civil Term N.A., Plaintiff VS. UNITED GENERAL TITLE INSURANCE COMPANY, Defendant CERTIFICATE OF SERVICE OF -REPLY OF PLAINTIFF, COMMERCE BANKMARRISBURG, N.A., TO NEW MATTER OF DEFENDANT, UNITED GENERAL TITLE INSURANCE COMPANY" I, Jack F. Ream, Esquire, attorney of record for the Plaintiff, COMMERCE BANK/HARRISBURG, N.A., hereby certify that on July 27, 2007, I caused copy of the "Reply of Plaintiff, Commerce Bank/Harrisburg, N.A, to New Matter of Defendant, United General Title Insurance Company" ("Reply") to be served upon the attorney for record for the Defendant, United General Title Insurance Company, being Michael P. Coughlin, Esquire, by United States Mail, regular mail, postage prepaid by depositing the "Reply" in the United States Post Office in York, Pennsylvania addressed to the following address: Michael P. Coughlin, Esq. Kaplin, Stewart, Meloff Reiter & Stein, P.c. Union Meeting Corporate Center 910 Harvest Drive Blue Bell, Pa. 19422 July 27, 2007 Jack . eam, Esquire Ream, Carr, Markey & Woloshin LLP (formerly Kain, Brown & Roberts LLP) 119 East Market Street York, PA 17401 I.D. 10241 Phone: 1-717-843-8968 Fax: 1-717-846-6676 E-mail: JckReam@aol.com Attorney for the Plaintiff Commerce Bank/ Harrisburg, N.A. P C n K CZ, t..; r" r" :lc C7 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION: LAW COMMERCE BANKMARRISBURG, No. 07-3152 Civil Term N.A., Plaintiff VS. UNITED GENERAL TITLE INSURANCE COMPANY, Defendant CERTIFICATE OF SERVICE OF "FIRST REQUEST FOR PRODUCTION OF DOCUMENTS OF PLAINTIFF, COMMERCE BANK/HARRISBURG, N.A., ADDRESSED TO DEFENDANT, UNITED GENERAL TITLE INSURANCE COMPANY, PURSUANT TO RULE 4009 OF PENNSYLVANIA RULES OF CIVIL PROCEDURE" I, Jack F. Ream, Esquire, attorney of record for the Plaintiff, COMMERCE BANK/HARRISBURG, N.A., hereby certify that on August 8, 2007, I caused copy of the "FIRST REQUEST FOR PRODUCTION OF DOCUMENTS OF PLAINTIFF, COMMERCE BANK/HARRISBURG, N.A., ADDRESSED TO DEFENDANT, UNITED GENERAL TITLE INSURANCE COMPANY, PURSUANT TO RULE 4009 OF PENNSYLVANIA RULES OF CIVIL PROCEDURE" ("Document Request") to be served upon the attorney for record for the Defendant, United General Title Insurance Company, being Michael P. Coughlin, Esquire, by United States Mail, regular mail, postage prepaid by depositing the "Document Request" in the United States Post Office in York, Pennsylvania addressed to the following address: Michael P. Coughlin, Esq. Kaplin, Stewart, Meloff Reiter & Stein, P.C. Union Meeting Corporate Center 910 Harvest Drive Blue Bell, PA 19422 August 8, 2007 Esquire Ream, Carr, Markey & Woloshin LLP (formerly Kain, Brown & Roberts LLP) 119 East Market Street York, PA 17401 I.D. 10241 Phone: 1-717-843-8968 Fax: 1-717-846-6676 E-mail: JckReam@aol.com Attorney for the Plaintiff Commerce Bank/ Harrisburg, N.A. ° Ca ? Yx ? s ? ? > ?? .-- r? + .?G ?^^- IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION: LAW COMMERCE BANK/HARRISBURG, No. 07-3152 Civil Term N.A., Plaintiff VS. UNITED GENERAL TITLE INSURANCE COMPANY, Defendant CERTIFICATE OF SERVICE OF "FIRST SET OF INTERROGATORIES OF PLAINTIFF, COMMERCE BANK/HARRISBURG, N.A., ADDRESSED TO DEFENDANT, UNITED GENERAL TITLE INSURANCE COMPANY, PURSUANT TO RULE 4005 OF PENNSYLVANIA RULES OF CIVIL PROCEDURE" I, Jack F. Ream, Esquire, attorney of record for the Plaintiff, COMMERCE BANK/HARRISBURG, N.A., hereby certify that on August, 2007, I caused copy of the "FIRST SET OF INTERROGATORIES OF PLAINTIFF, COMMERCE BANK/HARRISBURG, N.A., ADDRESSED TO DEFENDANT, UNITED GENERAL TITLE INSURANCE COMPANY, PURSUANT TO RULE 4005 OF PENNSYLVANIA RULES OF CIVIL PROCEDURE" ("Interrogatories") to be served upon the attorney for record for the Defendant, United General Title Insurance Company, being Michael P. Coughlin, Esquire, by United States Mail, regular mail, postage prepaid by depositing the "Interrogatories" in the United States Post Office in York, Pennsylvania addressed to the following address: Michael P. Coughlin, Esq. Kaplin, Stewart, Meloff Reiter & Stein, P.C. Union Meeting Corporate Center 910 Harvest Drive Blue Bell, PA 19422 August8, 2007 eam, Esquire Ream, Carr, Markey & Woloshin LLP (formerly Kain, Brown & Roberts LLP) 119 East Market Street York, PA 17401 I.D. 10241 Phone: 1-717-843-8968 Fax: 1-717-846-6676 E-mail: JckReam@aol.com Attorney for the Plaintiff Commerce Bank/ Harrisburg, N.A. --' Cam: - IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION: LAW COMMERCE BANK/HARRISBURG, N.A., Plaintiff vs. No.: 07-3152 CIVIL TERM UNITED GENERAL TITLE INSURANCE: COMPANY, Defendant PRAECIPE TO DISMISS TO THE PROTHONOTARY: Please dismiss the above-captioned matter. Date: 114 I OK REAM, CARR, MARKEY & WOLOSHIN, LLP ,r f i By: a F. Ream, Esquire ID No.: 10241 119 East Market Street York, Pennsylvania 17401 Telephone: (717) 843-8968 Attorney for Plaintiff ?a - no ca ; -Y ?'?4