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HomeMy WebLinkAbout07-3835INTEGRITY BANK, v. IN THE COURT OF COMMON PLEAS Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA DAVID G. KENNERLY AND KIMBERLY A. KENNERLY, Defendants CASE NO. O"j - ~~ ~~ ~, ~~,~~,~.,,1 CIVIL ACTION -LAW MORTGAGE FORECLOSURE NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment maybe entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. CUMBERLAND COUNTY BAR ASSOCIATION 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 or (800) 990-9108 INTEGRITY BANK, v. IN THE COURT OF COMMON PLEAS Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA DAVID G. KENNERLY AND KIMBERLY A. KENNERLY, Defendants CASE NO. MORTGAGE FORECLOSURE AVISO USTED HA SIDO DEMANDADO/A EN CORTE. Si usted desea defenderse de las demandas que se presentan mas adelante en las siguientes paginas, debe tomar accion dentro de los prbximos veinte (20) dias despues de la notification de esta Demanda y Aviso radicando personalmente o por medio de un abogado una comparecencia escrita y radicando en la Corte por escrito sus defensas de, y objecciones a, las demandas presentadas aqui en contra suya. Se le advierte de que si usted falla de tomar accion como se describe anteriormente, el caso puede proceder sin usted y un fallo por cualquier soma de dinero reclamada en la demanda o cualquier otra reclamation o remedio solicitado por el demandante puede ser dictado en contra suya por la Corte sin mas aviso adicional. Usted puede perder dinero o propiedad u otros derechos importantes para usted. USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABOGADO INMEDIATAMENTE. SI USTED NO TIENE UN ABOGADO, LLAME O VAYA A LA SIGUIENTE OFICINA. ESTA OFICINA PUEDE PROVEERLE INFORMACION A CERCA DE COMO CONSEGUIR UN ABOGADO. SI USTED NO PUEDE PAGAR POR LOS SERVICIOS DE UN ABOGADO, ES POSIBLE QUE ESTA OFICINA LE PUEDA PROVEER INFORMACION SOBRE AGENCIAS QUE OFREZCAN SERVICIOS LEGALES SIN CARGO O BAJO COSTO A PERSONAS QUE CUALIFICAN. CUMBERLAND COUNTY BAR ASSOCIATION 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 or (800) 990-9108 NOTICE The amount of your debt is as stated in the attached document. The name and address of the creditor to whom the debt is owed is as named in the attached document. This is an attempt by a debt collector to collect a debt. Any information obtained will be used for that purpose. Unless you notify this office within thirty (30) days after receiving this notice that you dispute the validity of the debt or any portion thereof, this office will assume that this debt is valid. If you notify this office in writing within thirty (30) days from receiving this notice that the debt, or any portion thereof, is disputed, this office will obtain verification of the debt and mail you a copy of such verification. Collection agencies are regulated by a federal law which grants you certain rights. One of these is the right to have us cease communication with you about this debt. If you ask us in writing to cease, we will. This law is administered by the Federal Trade Commission, Division of Credit Practices, Washington, D.C. 20580. If you request this office in writing within thirty (30) days after receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor. McNEES WALLACE & NURICK LLC Date: June 22, 2007 By; !~(iU~~---~ C ayton . Davi son, Esquire PA Attorney I.D. No. 79139 100 Pine Street - P.O. Box 1166 Harrisburg, PA 17108-1166 Direct Fax: (717)-260-1678 Phone: (717)-232-8000 cdavidson@mwn.com Attorneys for Integrity Bank CIVIL ACTION -LAW MORTGAGE FORECLOSURE COMPLAINT IN MORTGAGE FORECLOSURE Integrity Bank, by and through its undersigned counsel, hereby files this Complaint in Mortgage Foreclosure to Pa.R.C.P. No. 1141, et seq., and in support thereof avers the following: The Parties 1. Plaintiff, Integrity Bank ("Integrity"), is a Pennsylvania banking institution with its principal place of business located at 3345 Market Street, Camp Hill, Pennsylvania, 17011. 2. Defendants, David G. Kennerly and Kimberly A. Kennerly (collectively the "Kennerlys"), husband and wife, are adult individuals residing at 6307 Valleybrook Drive, Mechanicsburg, Cumberland County, Pennsylvania 17050. Jurisdiction and Venue 3. This Court has jurisdiction over this matter this matter pursuant to 42 Pa.C.S.A. § 931(a). 4. This Court is the proper venue for this matter pursuant to 42 Pa.C.S.A. § 931(c) and Pa.R.C.P. No. 11142 because the real property in question is located in Cumberland County, Pennsylvania. Factual Background 5. On March 31, 2006, the Kennerlys executed and delivered to Integrity a certain INTEGRITY BANK, v. IN THE COURT OF COMMON PLEAS Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA : CASE NO. 07 .. ~.aS l:.lcri.~~~l'~1 DAVID G. KENNERLY AND KIMBERLY A. KENNERLY, Defendants home equity line of credit agreement (the "Note") in the principal amount of One Hundred Thousand Dollars and Zero Cents ($100,000.00). Attached hereto as Exhibit A and incorporated herein by reference is a true and correct copy of the Note. 6. On May 3, 2006, the Kennerly executed and delivered to Integrity a certain mortgage (the "Mortgage") to secure the payments due under the Note as owners of the real property known and numbered as 6307 Valleybrook Drive, Mechanicsburg, Hampden Township, Cumberland County, Pennsylvania, tax parcel number 10-16-1062-169 and more particularly described in Deed Book 253, Page 1603 in the Office of the Recorder of Deeds of Cumberland County (the "Real Property"). Attached hereto as Exhibit B and incorporated herein by reference is a true and correct copy of the Mortgage. 7. The Mortgage encumbers the Real Property and was duly filed in the Office of the Recorder of Deeds of Cumberland County at Mortgage Book 1951, Page 2045. 8. The Kennerlys defaulted under the Mortgage by failing to pay the sums due and owing under the Note since February 11, 2007 and as a result thereof, have caused the indebtedness due and owing thereunder to be accelerated. 9. On May 14, 2007, Integrity sent the Kennerlys the notice required by the Homeowners' Emergency Mortgage Assistance Act of 1983 ("Act 91 Notice") of their default under the Mortgage. Attached hereto as Exhibit C and incorporated herein by reference are true and correct copies of the Act 91 Notice and return receipt cards evidencing the mailing of this notice to the Kennerlys. 10. The Mortgage is not subject to the provisions under Act No. 6 of 1974. 11. The amount due under the Note, and therefore the Mortgage, as of June 12, 2007 is itemized as follows: Principal: $98,336.44 Interest: $ 3,710.01 Late Fees $ 181.67 TOTAL: $102,228.12* *ALONG WITH INTEREST ACCURING AT THE PER DIEM RATE OF $48.49, COSTS AND REASON ATTORNEY'S FEES FOR COSTS OF COLLECTION UNTIL PAID IN FULL. (the ~~Indebtedness") If the Kennerlys or their agent desire to reinstate or pay the Note in full at any time up to one hour prior to the sale of the Premises, the actual amount of the collection costs, expenses, and attorneys' fees that must be paid at the time maybe mitigated, and the Kennerlys or their agents may obtain the actual amount by contacting Integrity's attorney at the address or phone number at the end of this Complaint. 12. Judgment has not been entered on the Mortgage in any jurisdiction. 13. The Note and Mortgage have not been assigned and are still held by Integrity. Count I - Mortgage Foreclosure 14. Susquehanna incorporates herein by reference the allegations contained in paragraphs 1 through 13 above. 15. Pursuant to Pa.R.C.P. No. 1019(h), this count is based upon a breach of the written Mortgage. 16. Integrity demands judgment for the Indebtedness in mortgage foreclosure be entered against the Kennerlys so that Integrity may sell the Real Property in an attempt to satisfy the Indebtedness. WHEREFORE, Integrity Bank demands judgment in mortgage foreclosure against David G. Kennerly and Kimberly A. Kennerly as owners of the Real Property in the sum of One Hundred Two Thousand Two Hundred Twenty Eight Dollars and Twelve Cents ($102,228.12) as of June 12, 2007, along with interest accruing at the per diem rate of $48.49 costs and reasonable attorneys' fees for costs of collection until paid in full. McNEES WALLACE & NURICK LLC Date: June 22, 2007 gy; /G(~ ~..____, Clayton . D dson, Esquire PA Attorney I.D. No. 79139 100 Pine Street - P.O. Box 1166 Harrisburg, PA 17108-1166 Direct Fax: (717)-260-1678 Phone: (717)-232-8000 cdavidson@mwn.com Attorneys for Integrity Bank VERIFICATION I, Robert K. Day, Senior Vice President of Integrity Bank, verify that I am authorized to make this verification on behalf of Integrity Bank, and that the facts contained in the foregoing Complaint in Mortgage Foreclosure are true and correct to the best of my knowledge, information and belief and that the same are made subject to the penalties of 18 Pa. C.S.A. § 4904 relating to unsworn falsification to authorities. ,..~ ~ ~~~~ /~ Robert K. Day, Senior V' e President of Integrity Bank ~XH113~ I /~ In>te rit 8 g x Y ~' INTEGRITY BANK ) 3345 Market Street Camp Hill, PA 17011-2269 VVV HOME EQUITY LtNE OF CREDIT AGREEMENT AND DISCLOSURES DATE March 31, 2006 BORROWER(S) DAVID G KENNERLY 6307 Valleybrook Drive Mechanicsburg, PA 17050 CREDIT LINE U.S. $100,000.00 LOAN NUMBER 0000001397400509 In this document, "I," "me," and "my° refer to all borrowers, coborrowers, cosigners, and guarantors, both together and individually. I promise to pay to the order of INTEGRITY BANK ("Bank") One Hundred Thousand and 00/900 Dollars (U.S. $100,000.00) ("Maximum Credit Limit") or as much as Bank has advanced and is outstanding ("Principal Sum"), plus any interest, fees, and charges as described below. Bank has established a revolving home equity line of credit ("Credit Line") from which I may periodically obtain one or more advances, with the unpaid Principal Sum not exceeding the Maximum Credit Limit. Advances that remain unpaid will bear interest at a daily periodic rate, calculated on the basis of a 365-day year. I may request extensions of credit in amounts not exceeding the Maximum Credit Limit of the Credit Line. Extensions of credit under the Credit Line may be requested by: Writing checks that directly access my account. Making transfers to my checking account through Bank's Intemet banking system. Bank has the right to add or remove methods by which I may request extensions of credit under this Credit Line. Bank does not have to honor any request for credit if I am in defauR; if Bank has suspended future extensions of credit; if the request has not been properly .made; or that, if advanced, would cause the balance to exceed the Maximum Credit Limit. Bank has the right to honor and pay any request for an extension of credit regardless of whether any of the above conditions exist. Any extension above the Maximum Credit Limit will be due and payable immediately in addition to any minimum payment due. My obligations under this Credit Line are secured by a mortgage, deed of trust, or security deed on the real property located at 63707 Valleybrook Drive, Mechanicsburg, PA 17050 ("Collateral"). This Gredit Line has a draw period during which I may obtain advances up to the Maximum Credit Limn. The draw period will terminate on March 30, 2021. This Credit Line also has a repayment period during which no further advances may be obtained. The repayment period will terminate on March 30, 2036. That date is the "Maturity Date." INTEREST RATE: Interest Rate. The interest rate on this Credit Line wilt be equal to an index. The "Index° is NY PRIME, as published in WALL STREET JOURNAL. This is a variable rate plan and the interest rate and Annual Percentage Rate may increase. The interest rate will not change more often than monthly. The Index for a billing cycle will be the value of the Index on the final day of the prior billing cycle. In no event, other than default, will the interest rate exceed eighteen percent (18.000%). Default Interest. to the event of default, the interest rate will be the highest rate allowed by law from the date of the default and for as long as default continues, and ff the~iefault is not cured, until all amounts I owe are paid in full, including after a judgment is entered. OTHER CHARGES: Late Charge. If I do not pay the minimum payment due within 15 days after the minimum payment due date, I will pay a late charge of 5.000% of the scheduled payment amount. I will be required to pay only one late charge for any single scheduled payment or portion of any payment, regardless of the period during which it remains overdue. PAYMENTS. I may pay the unpaid balance of this Credit Line in part or in full at any time without penalty. Until March 30, 2021, I will make minimum payments monthly equal to the accrued finance charges plus other charges {if any) outstanding plus 0.555% of the principal balance on the last day of the billing cycle. The minimum payment will never be less than the accrued finance charges for the period or $20.00, whichever is greater. Each payment must be received by Bank not later than 15 days after the closing date of the billing cycle as set out on the periodic statement that I will receive. During the repayment period, payments will be due monthly. My minimum payment will equal the accrued finance charges plus other charges (if any) outstanding plus 0.555% of the principal balance on the last day of the billing cycle. The payment amount may change monthly ("Change Date'. Prior INtTiALS PENNSYLVANIA -HOME EQUITY LINE OF CREDIT AGREEMENT AND LOD080PA / 20040580 Printed 3/30/2006 5:03:00 PM DISCLOSURES DAVID GKENNERLY / 0000001397400509 Page 1 of 4 ®2004 KirChman Corporation o each Change Date, Bank will recalculate the •+ment amount based on the interest rate in effect 3(' ~s prior to'the Change Date. Bank will notify ne of the change at least 25 days before the ~e becomes effective. Payments shall be applied t :rest, then to principal, then to late fees and , rher charges, and then to insurance charges. Sank and I agree that time is of the essence. :REDIT INFORMATION. I agree to provide Bank with all financial information that Bank needs to determine my qualification for the continuation of this ~redlt Line. I agree to respond promptly to any request for financial information. I also authorize Bank to make any necessary credit requests, at any ime and for any reason, to determine my financial condition, including obtaining credit reports about me from one or more credit reporting agencies. At 3ank's request, I will allow Bank or its agent to inspect Collateral. If Bank chooses to have Collateral re-appraised, I will allow Bank's selected appraiser o gain access to Collateral. NOTICES. Bank will send all notices and periodic statements to me at 6307 Valleybrook Drive, Mechanicsburg, PA 17050. I must notify Bank in writing f I wish to change the address to which notices and periodic statements are sent. any notice required by Bank under this document will be considered delivered the date the notice is mailed. Any notice required by me under this iocument will be considered delivered the date it is received by Bank. TRANSFER AND ASSIGNMENT. Bank may sell or transfer all or a portion of this Credit Line and assign its rights under the mortgage, deed of trust, or security deed securing it. My rights under this document may not be assigned or assumed by a third party. My heirs and legal representatives will be •esponsible for the terms agreed upon in this document. '_AW. The prevailing party in any lawsuit concerning this document or Collateral will be able to recover attorneys' fees and all costs, including, but not invited to, attorneys' fees, all costs of any bankruptcy proceedings, and all costs of any appeals. All parties to this document agree that this document sill be governed by the laws of the Commonwealth of Pennsylvania. Any lawsuit relating to this document will take place in the county in which Bank address above is located. If Collateral is real estate, any lawsuit will take place in the county in which the real estate is located. If the terms of this iocument conflict with any state or federal law, this document will be modified to resolve the conflict, provided that any term or condition of this iocument that is not in conflict will be enforceable in accordance with its terms. If any term is determined to be invalid or unenforceable, the ietermination will not affect any other term and all other terrns will remain enforceable. This document may not be modified orally and any modification rust be in writing. 5ET-0FF. Bank will have the right to "set-off' or remove any money in any account 1 have with Bank and apply that money to the unpaid balance of this Credit Line. Bank may exercise its right of set-off against money deposited in checking, savings, time, or other accounts (except IRA accounts, Keogh accounts, or accounts from which I have the right to withdraw money in a representative capacity). If I am in default, Bank may take money without notice and apply lt to the balance due on this Credit Line. Bank may do so even if it results in early withdrawal penalties, dishonored items, or fees. I also grant Bank a right to set-off in all products, proceeds, additions, accessions, replacements, and substitutions of all Collateral. THIRD PARTY ADDENDUM. I understand that some payments to third parties as paR of this transaction may be paid back to Bank as commission or Bank may receive other compensation. NO LOSS OF RIGHTS. Bank may accept any check marked as "paid in full" or with other similar words as a partial payment without losing its rights against me andlor Collateral. TAX CONSEQUENCES. Interest and other charges that I pay under this Credii Line may or may not be deductible in the calculation of my income taxes. I should speak with a tax advisor about the tax deductibility of those items. DEFAULT. I will be in default under this Credit Line if any of the following occur: • I fail to make payments when due and on time. • I make, or someone on my behalf makes or furnishes, a materially false statement or representation with respect to this document or related documents. 1 take any action or fail to take any action that adversely affects the value of Collateral. • I am an executive officer of Bank and Bank exercises the demand clause in the rider attached to this document. If an event of default occurs, Bank may demand immediate payment of the entire remaining unpaid balance. Any delay by Bank in using any right or remedy will not mean that Bank has waived that right or remedy. If Bank does waive a right or remedy, it will not mean that Bank has waived all rights and remedies. Bank's partial use of a right or remedy will not mean that Bank has waived other rights or remedies. Bank will not waive a default by accepting partial payment of any amount due. All rights and remedies will be cumulative. Bank may exercise its rights against any Collateral or any Borrower without first having recourse against any other Collateral or any other Borrower. I will pay to Bank all costs and expenses that are necessary to enforce this document. Those costs and expenses include, for example, court costs and reasonable attorneys' fees at trial and on appeal. SUSPENSION OF FUTURE CREDIT OR REDUCTION OF MAXIMUM CREDIT LIMIT. Bank may temporarily reduce my Maximum Credit Limit or temporarily prohibit additional draws or extensions of credit during any period in which one or more of the following exists: I default under the terms of the Credit Line. The value of the dwelling that secures the Credit Line declines significantly below its appraised value for purposes of the Credit Line. Bank reasonably believes that I will be unable to meet the obligations under the plan because of a change in my financial circumstances. I am in default of a material obligation under this document. Government action prevents Bank from enforcing the Annual Percentage Rate provided for in this document. Government action adversely affects the priority of Bank's security interest in Collateral to the point that the value of the security interest is less than 120 percent of the Credit Line. Bank is notified by its regulatory agency that continued advances represent an unsafe and unsound practice. INITIALS PENNSYLVANIA -HOME EQUITY LINE OF CREDIT AGREEMENT AND L00080PA / 20040580 Printed 3/30!2008 5:03:00 PM DISCLOSURES DAVID G KENNERLY / 0000001397400509 Page 2 of 4 ©2004 Kirchman Corporation If Bank exercises its rights under this paragra~' sank will notify me that it has done so and will provi% Pasons for doing so. If I believe that Bank is wrong or that my situation has changed, I may, est that Bank reconsider its decision and reinstate r !edit Line. CLOSING COSTS/OTHER COSTS. I agree to pay the following closing costs and charges for the opening of this Credit Line: Flood Determination Fee of $15.00 -Paid By Lender I agree to pay these amounts whether these costs and charges are incurred at this time or later. If I have not paid these costs, the total of these costs will be added to my Credit Line as a loan, effective on the date of this document. During the term of this document, Bank may pay charges to third parties in the administration of this Credit Line. As an example, Bank may order an appraisal of the property securing this Credit Line. I agree to pay Bank for any charges that it may incur and that Bank is authorized to add these charges to the outstanding balance due under my Credit Line. CORRECT CLERICAL ERRORS. By signing the Line of Credit Agreement and Disclosures or Home Equity Line of Credit Agreement and Disclosures, I agree to fully cooperate and adjust for Gerical errors if requested by Bank. SIGNATURES. There are additional terms and Security Agreement conditions contained in this document that are part of the contract of the Line of Credit Agreement and Disclosures or Home Equity Line of Credit Agreement and Disclosures. By signing below, I acknowledge that I have read, understand, and agree to the terms of this document and have received an exact copy of it, including the Fair Credit Billing Act Notice. X ~ ~~ (Seal) 3 - L ~e - © ~ Y ' Date COLLATERAL CO-0WNER'S AGREEMENT. I am signing as a Co-Owner of Collateral along with Borrower. 1 am granting Bank a security interest in Collateral listed in this document. I agree to all the terms of the Security Agreement and/or Mortgage/Deed of Trust, if Collateral is real property. I am giving this security interest in orcler for Bank to extend the Credit Line to Borrower and to secure payment on the Credit Line. If there is a default on the Credit L~~'~a Collateral is old, I will not be liable or obligated for any remaining amounts still due under the Line of Credit Agreement and Disclosures or Horra'@ Egylky Line of Cre~ Agreement and Disclosuresldfterthe sale. X I ~ \~~~ ,~ ~- ~~~ w n,~ ,~X A ,,_ -- (Seal) YA BILLING ERROR RIGHTS YOUR BILLING RIGHTS KEEP THIS NOTICE FOR FUTURE USE ~ -3~-U1~ Date This notice contains important information about your rights and our responsibilities under the Fair Credit Billing Act (15 U.S.C.A. § 1601 et seq.). Notify Us in Case of Errors or Questions About Your Blll If you think your bill is wrong, or if you need more information about a transaction on your bill, write us on a separate sheet at 3345 Market Street, Camp Hill, PA 17011-2269. Write to us as soon as possible. We must hear from you no later than 60 days after we sent you the first bill on which the error or problem appeared. You can telephone us, but doing so will not preserve your rights. In your letter, give us the following information: • Your name and account number. • The dollar amount of the suspected error. • Describe the error and explain, ff you can, why you believe there is an error. If you need more information, describe the item you are not sure about. If you have authorized us to pay your credit card bill automaticalty from your savings or checking account, you can stop the payment on any amount you think is wrong. To stop the payment your letter must reach us three business days before the automatic payment is scheduled to occur. Your Rights and Our Responsibilities After We Receive Your Written Notice We must acknowledge your letter within 30 days, unless we have corrected the error by then. Within 90 days, we must either correct the error or explain why we believe the bill was correct. After we receive your letter, we cannot try to collect any amount you question, or report you as delinquent. We can continue to bill you for the amount you question, including finance charges, and we can apply any unpaid amount against your credit limit. You do not have to pay any questioned amount while we are investigating, but you are still obligated to pay the parts of your bill that are not in question. If we find that we made a mistake on your bill, you will not have to pay any finance charges related to any questioned amount. If we did not make a mistake, you may have to pay finance charges, and you will have to make up any missed payments on the questioned amount. In either case, we will send you a statement of the amount you owe and the date that it is due. If you fail to pay the amount that we think you owe, we may report you as delinquent. However, if our explanation does not satisfy you and you write to us within ten days telling us that you still refuse to pay, we must tell anyone we report you to that you have a question about your bill. And, we must tell you the name of anyone we reported you to. We must tell anyone we report you to that the matter has been settled between us when it finally is. INITIALS PENNSYLVANIA -HOME EQUITY LINE OF CREDIT AGREEMENT AND LOOOSOPA / 20040560 Printed 3/30/2006 5:03:00 PM DISCLOSURES DAVID G KENNERLY / 0000001397400509 Page 3 of 4 ®2004 Kirchman Corporation f we do not follow these rules, we cannot colle~ first $50.00 of the questioned amount, even if your . as correct. >pecial Rule for Credit Card Purchases f you have a problem with the quality of property or services that you purchased with a credit card, and you have tried in good faith to correct the problem with the merchant, you may have the right not to pay the remaining amount due on the property or services. There are two limtations on this fight: (a) You must have made the purchase in your home state or, if not within your home state, within 100 miles of your current mailing address; and (b) The purchase price must have been more than $50.00. these limitations do not apply if we own or operate the merchant, or if we mailed you the advertisement for the property or services. INITIALS PENNSYLVANIA -HOME EQUITY LINE OF CREDIT AGREEMENT AND L00080PA / 20040580 Printed 3/30/2006 5:03:00 PM DISCLOSURES DAVID G KENNERLY 10000001397400509 Page 4 of 4 ®2004 Kirchman Corporation Ex I-li ~I~ n:~ This Instrument Prepared By: INTEGRITY BANK 3345 Market Street Camp Hill, PA 1 701 1-2269 (717) 920-4900 ~Q~6 ~~1flY 22 A(~ lY 1`i After Recording Return To: INTEGRITY BANK 3345 Market Street Camp. Hill, PA 17011-2269 (717) 920-4900 [Space Above This Line For Recording Datal Parcel Identification Number: OPEN-END ~VIORTGAGE. (This Mortgage Secures Future Advances) 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 16. (A) "Security Instrument" means this document, which is dated March 31, 2006, together with all Riders to this document. (B) "Borrower" is DAVID G KENNERLY; KIMBERLY A KENNERLY. Borrower is the mortgagor under this Security Instrument. (C) "Lender" is INTEGRITY BANK. Lender is a/an organized and existing under the laws of Pennsylvania. Lender's address is 3345 Market Street, Camp Hill, PA 17011-2269. Lender is the mortgagee under this Security Instrument. (D) "Note" means and refers to that certain Home Equity Line of Credit Agreement and Disclosures (Note) dated March 31, 2006 by which Borrower has been extended a Credit Limit Amount of One Hundred Thousand and 00/100 Dollars (U.S. $100,000.00) and Lender is obligated, subject to certain limitations and qualifications as set forth in the Note, to make advances to Borrower from time to time up to the Credit Limit Amount and Borrower has agreed to repay such advances and interest thereon in accordance with the terms of the Note. The Note and this Mortgage (which secures the indebtedness under the Note) reasonably contemplate that Lender and Borrower are entering into a series of advances, payments, and readvances. This Mortgage secures not only the repayment of the original indebtedness, but also the indebtedness created by future advances. The Note will be paid in full not later than March 30, 2036. (E) "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 ^ Condominium Rider ^ Second Home Rider ^ Balloon Rider ^ Planned Unit Development Rider ^ Other(s) [specify] ^ 1-4 Family Rider ^ Biweekly Payment Rider (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. INITIALS PENNSYLVANIA -OPEN-END MORTGAGE (JUNIOR LIEN) R00238PA /20050670 Printed 3/31/2008 2:25:00 PM DAVID G KENNERLY Page 1 of 12 ®2005 Kirchman Corporation ~1 ~ JV ~ tU~tJW (i) "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. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft; or similar paper instrument,- which is initiated through an electronic terrninal, telephonic instrument, computer, or magnetic tape so as to order, instruct; or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of--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. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv} misrepresentations of, or omissions as to, the value andlor condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Reai Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), 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. (P) "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 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 LOCATED AT 6307 VALLEYBROOK DRIVE, MECHANICSBURG, HAMPDEN TOWNSHIP, CUMBERLAND COUNTY, PENNSYLVANIA, AS RECORDED 1N DEED BOOK 253, PAGE 1603, IN THE OFFICE OF THE RECORDER OF DEEDS, which currenty has the address of 6307 Valieybrook Drive, Mechanicsburg, Pennsylvania 17050 ("Property Address"): TOGETHER WITH alt the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. Ail 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 wilt defend generalry the title to the Property against ail 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; (b) money order; (c) cert~ed check, bank check, INITIALS PENNSYLVANIA -OPEN-END MORTGAGE (JUNIOR LIEN) R00238PA ! 20050670 Printed 3/31/2006 2:25:00 PM DAVID G KENNERLY Page 2 of 12 ®2005 Kirchman Corporation J t] ~ ! t1 ~ EJ [7 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 Tr>~nsfer. 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 retum 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. ff 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 ftom 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. Unless Applicable Law requires otherwise, Lender wilt apply each of Borrower's payments that Lender accepts in accordance with the provisions 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 shall 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 alt 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 fumish 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 8 and pay such amount and Borrower shalt then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 45 and, upon such revocation, Borrower shall pay to Lender all Fords, and in such amounts, tiet 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 at the time specified under RESPA, and (b) 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 to 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 for 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 INITIALS PENNSYLVANIA -OPEN-END MORTGAGE (JUNIOR LIEN) R00236PA ! 20050670 Printed 3/3112006 2:25:00 PM DAVID G KENNERLY Page 3 of 12 m 2005 Kirchman Corporation ~~ ~ ~ ~ t ~~ ~ ~ ~t 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. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shalt 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. If 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 shall perfomt all of Borrower's obligations under any mortgage, deed of trust, or other security instrument with a lien, which has priority over this Security Instrument. Borrower shall pay, when due, all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the exterit that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien other than a lien disclosed to Lender in Borrower's application or in any title report Lender obtained which has priority over this Security Instrument unless Borrower. (a} 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; (b) 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 those proceedings are pending, but only until such proceedings are concluded; or (c} secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. Lender may require Borrower to pay aone-time charge for a real estate tax verification and/or reporting service used by Lender in connection with the Note and this Security Instrument if allowed under Applicable Law. 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 requires 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 one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shah also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in r.,onnection 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 shah bear interest'at the tVote 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 be subject to Lender's right to 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. If 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 tender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. INITIALS PENNSYLVANIA -OPEN-END MORTGAGE (JUNIOR LIEN) R00238PA ! 20050670 Printed 3/3112008 2:25;00 PM DAVID G KENNERLY Page 4 of 12 ®2005 Kirchman Corporation t~lY ~ ~ ~ i U~~t~ 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 Property to ensure the work has beed completed to Lendef 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 Lave 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 third. parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the~sote obligation of Borrower. If the restoration ar repair is not economically feasible 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 due, with the excess, if any, paid to Borrower. Such insurance proceeds shalt be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, 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) Bonrower's rights to any insurance proceeds in an amount, not to exceed the amounts unpaid under the Note or this Security fnstnament, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance polices 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 .:finder the Note or,this.Security Instrument1 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. If 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 (or 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 {a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under #his Security-anstrurrent {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 taws 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 Property and rights under this Security Instrument; including protecting andlor assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) 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. INITIALS PENNSYLVANIA -OPEN-END MORTGAGE (JUNIOR LIEN) R00238PA /20050870 Printed 3!31!2008 2:25:00 PM DAVID G KENNERLY Page 5 of 12 C~ 2005 Kirchman Corporation T3~ ~ ~ur ~ r i3~~~#~ Any amounts disbursed by Lender under this Section 9 shat! become additiopal debt of Borrower secured by this Security Instrument. These amounts shalt bear interest at the Note rate from the date of disbursement and shall be payable, with such interest,. upon notice fram Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall compty 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. If, 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 substantialy equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previousty in effect, from an aftemate 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 anon-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimatety paid in full, and Lender sha{I 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 (tn 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 anon-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 to 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 their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or 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 reinsurer, any other entity, or any affiliate of any of the. foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If 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 "captive reinsurance." Further: (a) 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. (b) 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 law. These rights may include the right to receive certain disclosures, to .request and obtain cancellation of -the Mortgage Insurance, to have the Mortgagr3Insurance '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, 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 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 be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by INITIALS PENNSYLVANIA -OPEN-END MORTGAGE (JUNIOR LIEN) R00238PA ! 20050870 Printed 3/31/2008 2:25:00 PM DAVID G KENNERLY Page 8 of 12 ®2005 KirChman Corporation i~il ~ J ~ t 1 13 t,.f ~:/ this Security Instrument, whether or not than 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 immediatety 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 fraction: (a) the total amount of the sums secured immediatety before the partial taking, destruction, or loss in value divided by {b) 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 of the sums secured immediatety 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. 1f the Property is abandoned by Borrower.,.or. if,. ai~er notice byLender. to, Borrower that,~the .Opposing Parf~r, {as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and appty the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscel{aneous 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 be 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 provided 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 Borcawer. 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 tnterest 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;. (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) 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 tnterest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shalt 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 agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees 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 INITIALS PENNSYLVANIA- OPEN-END MORTGAGE (JUNIOR LIEN) R00238PA /20050870 Printed 3!3112008 2:25:00 PM DAVID G KENNERLY Page 7 of 72 ®2005 Kirchman Corporation Q f` , .i~ ~ ~53~~ ~ t absence of express authority in this Security Instrument to charge a specific fee tQ Borrower shalt not be construed as a prohibition on the charging of such fee. 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 shah be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) 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. If 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 wri#ing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first crass mail or when actually delivered to Borrowers notice address if sent by other means. Notice to anyone Borrower shall constitute notice to ail 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 shale -only report a change of address through that specified procedure. There may be only one designated notice address under this Security {nstrument 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 Law; Severability; 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 tights 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 shalt not be construed as a prohibition against agreement by contract. In the event that any provision of 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 giver? effect withou# the conflicting provision. As used in this Security Instrument: (a) 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. Borrawer's Copy. Borrower shall be given one 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 beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a band for 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 ati 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 Lenders 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 front the dtte the notice is given in accordance with $ection 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower faits 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 pray 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; ar (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 (d) takes such action as iNITIAL3 PENNSYLVANIA -OPEN-END MORTGAGE (JUNIOR LIEN) R00238PA ! 20050670 Printed 3!31/2008 2:25:00 PM DAVID G KENNERLY Page 8 of 12 ®2005 Kirchman Corporation ~~~SP~ 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; (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 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 shah remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together 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 serviang 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 remain with the Loan Sen-icer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser ~niess otherwise_provided by the i~.o#e purahas~r. y-_ - Neither Borrower nor Lender may commence, join, or~be joined to any judicial actior- (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 Borrower ar Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) 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: (a) "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 laws 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 to violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) 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 (including, but not limited to, hazardous substances in consumer products). Borrower shaft promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or cther:adion by any governmental or regulatory agency or private parry involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, 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 teams, or is notified by any govemmentat 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 shat) 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 INITIALS PENNSYLVANIA -OPEN-END MORTGAGE (JUNIOR LIEN) R00238PA /20050870 Printed 3/3112008 2:25:00 PM DAVID G KENNERLY Page 9 of 12 ~ 2005 KirChman Corporation i~tif t ~~ ~ ~U~~ under Section 18 unless Applicable Law provides otherwise). Lender shall notify Borrower of, among other things: (a) the default; (b) the action required to cure the default; (c) 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 $ecurity 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 either defense of Borrower to acceleration and foreclosure..lf the tl~efault 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 ail 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 time to reinstate provided in Section 19 shall extend to one hour prior to the commencement of bidding at a sheriffs sale or other sate 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. 28. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's obligations under any mortgage, deed of trust, or other security instrument with a lien which has priority over this Mortgage, including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments, and other charges, fines, and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any. Any default under any mortgage or any obligation secured by a mortgage which has priority over this Mortgage shall constitute a breach of this covenant. 29. THIS IS AN ADVANCE MONEY MORTGAGE. This Mortgage secures certain loans, extensions of credit, andlor advances made from time to time by Lender in accordance with the terms of that certain Note referred to on Page 1 of this Mortgage. Loans, extensions of credit, andlor future advances ("advances") are secured by this Mortgage as if the advances were ail made on the date of this Mortgage and related Note. REQUEST FOR NOTICE OF DEFAULT AND FORECLOSURE UNDER SUPERIOR MORTGAGES OR DEEDS OF TRUST Borrower and Lender request the holder of any mortgage, deed of trust, or other encumbrance with a lien which has priority over this Mortgage to give notice to Lender, at Lender's address set forth on Page 1 of this Mortgage, of any default under the superior encumbrance and of any sale or other foreclosure action. INITIALS PENNSYLVANIA -OPEN-END MORTGAGE (JUNIOR LIEN) R00238PA! 20050870 Printed 3131!2006 2:25:00 PM DAVID G KENNERLY Page 10 of 12 ©2005 Kirchman Corporation 1 ~~ ~ ~t3~~~~ 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. ' X \ ~~- ~ DAVI KENNERL' X ~,-" ((, M ERLY A NI Witness Printed Name: Address: Witness Printed Name: Address: Certificate of Residence: (Seat) 5•-~ 3 ~ ~ ~ Date (Seal) ~ ti ~~ Date Date Date I hereby certify that the precise address of the within named mortgagee is 3345 Market Street, Camp Hitl, PA 17011- 2269. Agent of Mortgagee Commonwena~th of Pennsylvania County of t ~.YYI ~~1LI~Lf~hJ I~ On this, the ~ dray of ~ 20~, before me ~ L F+- /1)C~ the undersigned Notary Public, personally appeared ~~ ~ y •~ C~ • f~. `L }~.l /~_ wh n m helshe/the subscribed to ~ known to me (or satlsfactorliy proven) to be the persons ose a e y, instrument, and acknowledged that he/she/they executed the same for the purposes therein contained. In~nritn~ereof, I hereunto set my hand and official seal. • Notary Public ` ±~ .~ My Cd`~rt~rt5i 'an`~xpires . l Li 1 , 20~. COMMON TH F P NNS LVANtA ry~ NotadalSeal Camp HiH Soro C~umb~rryid CoinMy t,Ay Commissbn ExQirss July 29, 2046 Member, Pennsyh+ania Aseotdatfon of Notarise INITIALS PENNSYLVANIA- OPEN-END MORTGAGE (JUNIOR LIEN) R00238PA! 20050670 Printed 3131/2008 2:25:00 PM DAVID G KENNERLY Page 11 of 12 m 2005 KirChman Corporation (SEAL) ~~~ Commonwealth of Pennsylvania , County of , ~(. On this, the ,~,~ y of i ! 1 20~, before me ~~~ ~ r~ , ~~ jam?, ( Y<,~ the undersigned Notary Public, personally appeared ~t rn t3 f_12 L__Y krt,~~~ known to me (or satisfactorily proven) to be the persons whose name he/she/they, subscribed to wit instrument, and acknowledged that heishe/they executed the same for the purposes therein contained. to wit ss whereof, I hereunto set my hand and official seal. r co orrw of P>rrnvsnvAMA Notaris{ Seal CherylA. Fbming, Notary Public - Notary Public (SEAL) Camp Hlll Boro, Cumberland County My Commission Expires July 28, 2006 My Commission expires ,_ ~. . ~; , 20~, btomber, Pennsyivania Association of Notaries ~.;ertify this to be recorded ~n Cumberland bounty PA ,.~,,° a Recorder of I}Ceds INITIALS PENNSYLVANIA -OPEN-END MORTGAGE (JUNIOR LIEN) R00238PA ! 20050870 Printed 3/31!2008 2:25:00 PM DAVID G KENNERLY Page 12 of 12 ®2005 Kirchman Corporation March 31, 2006 I acknowledge that the Home Equity Line of Credit I am receiving from Integrity Bank for $100,000.00 (account number 1397400509) is for business purposes. David G. Kennedy n ~~ M .~ X '~,t, ~ ~ berly A. erly ~X N ~ 1~1~ C -: ,~ , .. . ^ Complete hems 1, 2, and 3. Also complete ' .item 4 ff ResMcted Delivery (s desired. ^ ae ^ Print your name and address on the reverse - - Id„~ so that we can return the card to you. ~ ^ Attach this card to the back of the maiipiece, ~~ C" ~~ or on the front ff space permits. 1. Article Addressed to: D. Is Item 11 fl er del low: ^ No ~~id C ~ I~e,n ~,e.r l ~; o V ~ br 1 ~3 ~- a ~ k r ,~ N~,Q, C ~1 A-y+ t C S b v.rC~, iQf-~ s. sen~'~ J ..~ d~'t:ertlfied Mail ^ Express Mail ~°J' ~ CI Registered ^ Return Receipt for Merchandise D Insured Mail ^ C.O.D. 4. Restricted Delivery't (F~cira Fee) ^ Y~ 2' "" 7006 0810 006 1052 8989 PS Form 3811, February 2004 Domestic Return Receipt to2sss-oan~t-t5ao ^ Complete items i, 2, and 3. Also complete A• item 4 if Restricted Delivery is desired. ^ Print your name and address on the reverse so that we can return the card to you. g, ^ Attach this card to the back of the maiipiece, or on the front if space permits. D. Is deiW 1. Article Addressed to: If YES, 1~1 m Ix,r ~ ~~ A . I~,Ln i"LC r 1 ~` Ca30~- 1{uliey break ~rlvc .. P,~ Agent e c. Date ayoeirye< slivery a ^ No ~~ - . M C ChQ.~'I I CS b ~ rG\ r 3. ServVice Type ~.J ~ ~~0 Certified Mall ^ Express Mail ^ Registered CI Return Receipt for Men:handise d insured Mail ^ C.O.D. 4. Restricted Delivery? (~'>a Fee) ^ Yes 2' ~'`~'e"~'"~` 7x06 0810 0006 LaS~ 9009 (Transfer from serv/ce label) PS Form 3811, February 2004 Domestic Return Receipt 102595-o2-M-t54o ACT 911'~JE~TICE TA.I~E A.C'I'~ON TE) SANE YOUR HE3ME FI~.Ol~ FQRECLOS[JRE* This is an officaal notice that the mortga¢e on your home is in default. and the lender intends to foreclose. Speciftc information about the nature of the default is provided in the attached paces. The HOMEOWNER'S MORTGAGE ASSISTANCE PROGRAM (HEMAPI may be able to help to save your home. This Notice explains how the proeram works. To see if HEMAP can help. you must MEET WITH A CONSUMER CREDIT COUNSELING AGENCY WITHIN 30 DAYS OF THE DATE OF THIS NOTICE. Take this Notice with you when you meet with the Counseling Agency. Tie name. address and phone number of Consumer.Credit Counseline Agencies serving your County are listed at the end of this Notice. If you have any questions. you may call the Penn vlvania Ronsin¢ Finance A¢encv toll free at 1-800-342-2397.tPersons with impaired lies ng can call (717) 78x18691. This Notice contains important legal information. ff you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help ezplain it. You may also want to contact an attorney in your area. The local bar association may be able to help you 5nd a lawyer. LA NOTIITCACION EN ADJUNTO ES DE SUMA II!lPORTANCIA, PUSS AFECTA SU DERECHO A CONTINUAR VIVIENDO EN SII CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICACION OBTENGA UNA TRADUCCION INMEDITAMENTE LLAMANDO ESTA AGENCIA (PENNSYLyANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA r.i,eM.tnO "ROMEO WNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL CUAL PUIDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDII~HR SU HD'OTECA. * (Mast be at least 30 point type) HOMEOWNER'S NAME(S): Kimberly A. Kennerly PROPERTY ADDRESS: F) 3 O 7 V a 11 e y Drive Mechanicsburg Pa 17050 LOAN ACCT. No.: 13 9 7 4 0 0 5 0 9 ORIGINAL LENDER: _I ri t e g Y l t y Ran k CURRENT LENDER/SERVICER: T n t P g E' i t s R a n lr HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM _Y9U MAY BE ELIG i F FOR FIN NCLe i ,~SLSTANCE WH[CH C.~N SAVE YOL3R HOME FROM FORECLOSURE AND ~I.P YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE ACT OF 1983 (THE "ACT"), YOU MAY BE ELIGIBLE FOR EMERGENCY MORTGAGE ASSISTANCE: IF POUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL, t" /U_n-1 IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TQ PAY YOUR MORTGAGE PAYMENTS, AND IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OFFORECLOSURE --Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice. During that time you must arrange and attend a "face-to-face" meeting with one of the consumer credit counseling agencies listed at the end of this Notice, THIS MEETING MUST OCCUR WITHIN THE NEXT 13A1 DAYS. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE AS SISTANCE YOU MUST BRING YOUR MORTGAGE UP TO DATE THE PART OF THIS NOTICE CALLED"HOW TO CURE YOUR MORTGAGE DEFAULT" EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. CONSUMER CREDIT COUNSELING AGENCIES -- If you meet with one of the consumer credit counseling agency listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names addresses and telephone numbers of dasi~nated consumer credit counseli_n¢ agencies for the countYin which the ~ronerty is located are set forth at the end of this Notice. It is only necessary to schedule one face-to-face meeting. Advise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE -- Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default.) If you have tried and are unable to resolve this problem with the lender, you have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program. To do so, you must fill out, sign and file a completed Homeowner's Emergency Assistance Program Application wiW one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. Your application MUST be filed or postmarked within thirty (30} days of your face-to-face meeting. YOU MUST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO 50 OR IF YOU DO NOT FOLLOW THE OTHER TIME PERIODS SET FORTH IN THIS LETTER, FORECLOSURE MAY PROCEED AGAINST YOUR HOME I1VI1lD/+ DIATELY AND YOUR APPLICATION FOR MORTGAGE ASSISTANCE WILL BE DENIED. AGENCY ACTION -- Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued. against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY, THE FOLLOWING PART OF THIS NOTICE IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT. (If you have filed bankruptcy you can still apply for Emergency Mortgage Assistance.) HOW TO CURE YOUR 1VIORTGAGE DEFAULT Bring it up to date). NATURE OF THE DEFAULT -The MORTGAGE debt held by the above lender on your property located at: 6307 Valley Dr, Mechanicsburg:;; Pa IS SERIOUSLY IN DEFAUZ,T because: YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due: Ma r n h i i , $1 , 181.8 2 A~.r i 1 ~ t , ~.? , ~ 81 8 2 , Mar-11-, $1 , 1-8 l S a- Other charges (explain/itemize): ~~,~,~.~ya~A s ~L2 2 1.3 TOTAL AMOUNT PAST DUE: .~' ti ~~ _ 5 g B. YOU HAVE FAILED TO TAKE THE FOLLOWING ACTION (Do not use if not applicable): HOW TO CURE THE DEFAULT --You may cure the default within THIRTY (30) DAYS of the date of this notice BY PAYING THE TOTAL AMOUNT PAST DUE TO THE LENDER, WHICH IS $ ~' h h 7 _ , 9 ,PLUS ANY MORTGAGE PAYMENTS AND LATE CHARGES WHICH BECOME DUE DURING THE THIRTY (30) DAY PERIOD. Payments must be made either by cash. cashier's check. certified check or money order made payable and sent to• You can cure any other default by talangthe following action within THIRTY (301 DAYS of the date of this letter: (Do not use if not apnlicable.l IF YOU DO NOT CURE THE DEFAULT_ffyou do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to ezercise its rights to accelerate the mortgage debt. This means that the entire outstanding balance of this debt will be considered due immediately and you may lose the chance to pay the mortgage in monthly installments. If full payment of the total amount past due is not made within THIRTY (30) DAYS, the lender also intends to instruct its attorneys to start legal action to foreclose upon yoar mortgaged property. 1F THE MORTGAGE IS FORECLOSED UPON --The mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attorneys, but you cure the delinquency before the lender begins legal proceedings against you, you will still be required to pay the reasonable attorney's fees that were actually incurred, up to $50.00. However, if legal proceedings are started against you, you will have to pay all reasonable attorney's fees actually incurred by the lender even if they exceed $50.00. Any attorney's fees will be added to the amount you owe the lender, which may also include other reasonable costs. If you cure the default within the THIRTY (30) DAY period, you will not be required to pay attorney's fees. OTHER LENDER REMEDIES -The lender may also sue you personally for the unpaid principal balance and all other sums due under the mortgage. RIGHT TO CURE THE DEFAULT PRIOR TO SHERIFF'S SALE -- If you have not cured the default within the THIRTY (30) DAY period and foreclosure proceedings have begun, you still have the right to cure the default and prevent the sale at any time up to one hour before the Sheriffs Sale. You may do so by paying the total amount then past due, plus any late or other charges then due, reasonable attorney's fees and costs connected with the foreclosure sale and any other costs connected with the Sheriffs Sale as specified in writing by the lender and by performing any other requirements under the mortgage. Curing your default in the manner set forth in this notice will restore your mortgage to the same position as if you had never defaulted. EARLIEST POSSIBLE SHERIFF'S SALE DATE -- It is estimated that the earliest date that such a Sheriffs Sale of the mortgaged property could be held would be approximately 3 months from the date of this Notice. A notice of the actual date of the Sheriffs Sale will be sent to you before the sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment or action will be by contacting the lender. HOW TO CONTACT THE LENDER: Name of Lender: Integrity Bank Address: 3345 Market Street, Camp Hill, Pa 17011 Phone Number: 717 - 9 2 0- 3 6 9 6 Fax Number: 717 - 9 2 0- 3 611 Contact Person: Gary G. Klick, Vice President EFFECT OF SHERIFF'S SALE -- You should realize that a Sheriffs Sale will end your ownership of the mortgaged property and your right to occupy it. If you continue to live in the property after the Sheriffs Sale, a lawsuit to remove you and your furnishings and other belongings could be started by the lender at any time. ASSUMPTION OF MORTGAGE --You may or ~- may not (CHECK ONE) sell or transfer your home to a buyer or transferee who will assume the mortgage debt, provided that all the outstanding payments, charges and attorney's fees and costs are paid prior to or at the sale and that the other requirements of the mortgage aze satisfied. YOU MAY ALSO HAVE THE RIGHT: TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT OR TO BORROW MONEY FROM ANOTHER LENDING INSTI'T'UTION TO PAY OFF' THIS DEBT. TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR. BEHALF. TO HAVE THE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE THAN THREE T12vTES IN ANY CALENDAR YEAR.) TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS, TO ASSERT ANY OTHER DEFENSE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER, TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. CONSUMER CREDTT COUNSELING AGENCIES SERVING YOUR COUNTY (Fill in a list of atl Counseling Agencies listed in Appendix C, FOR .THE COUNTY in which the property is located, using additionttl pages if necessary) f ~c~rrt~r~~~~~i~c E~a~~~n~ ~a~c~~e[Et~~ ~r-c~~ncie~ Cumberland County 4 Please hate: Marty of the age~zcies offer workshops at Warious sites; call to find a location near you. Report last updated: 4/20/200710:40:40 Adams County Interfaith Housing Dawn Johnson 40 E. High Street Gettysburg PA 17325 717.334.1518 Fax 717.334.8326 CCCS of Western PA Mary Loftus 970-D South .George St. York PA 17403 888.511.2227 Fax 412.390.1336 Community Action Commislon Capital Region Jake Burke 1514 Deny Street Harrisburg PA 17104 717.232.9757 Fax 717.234.2227 Harrisburg Fafr Housing Counclt Jim Pressley 2100 North 6th Street Harrisburg PA 17110 717.238.9540 Fax 717.233.5001 Housing Redev. Auth ofi Cumberland County Pat Mrkobrad 114 N, Hanover Street, Ste 104 Carlisle PA 17013 866.683.5907 Ext. 26 Fax 717.249.4071 Loveshtp, Inc. Linda Thompson 2320 N. 5th Street Harrisburg PA 17110 717.232.2207 Fax 717.232.2656 Rural Opportunities, Inc. Michael Johnson 1625 N. Front Street Harrisburg PA 17102 717.234.6616 Fax 717.234.6692 South Central Assembly Effective Governance W. Craig Zumbrun 777 W. Harrisburg Pike Middietown PA 17057 717-948.6464 Fax 717.948.6306 n ~ ~~ ~ A~ v ....., v e© ~/ ~.. ""y .~ 1. ~ y ~.-^: ~~ t . i ~ _~ t -, ~ ~:~ (~t ~~ ( x ~ rc+ ~ ~ } . E ~ . t... y r.,.~ .-{: INTEGRITY BANK, IN THE COURT OF COMMON PLEAS Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA v. CASE NO. d'7 -~".~ ~~ u ~~~ . ~~ DAVID G. KENNERLY AND . KIMBERLY A. KENNERLY, :CIVIL ACTION -LAW Defendants :MORTGAGE FORECLOSURE AFFIDAVIT OF NON-MILITARY SERVICE AND LAST-KNOWN ADDRESSES OF DAVID G. KENNERLY AND KIMBERLY A. KENNERLY COMMONWEALTH OF PENNSYLVANIA COUNTY OF DAUPHIN . SS. The undersigned, being duly sworn according to law, deposes and says that to the best of my information and belief David G. Kennerly and Kimberly A. Kennerly are not in the Military or Naval Service of the United States or its Allies, or otherwise within the provisions of the Servicemembers Civil Relief Act, f/k/a the Soldier's and Sailor's Civil Relief Act of 1940, 50 U.S.C. App. 501, et seq. David G. Kennerly and Kimberly A. Kennerly are over eighteen (18) years of age and was last known residing at 6307 Valleybrook Drive, Mechanicsburg, Pennsylvania, 17055. SWORN and subscribed to before m~_ "' g#',dx~e, 2006 o ary Public 1~Iy Commission Expires (SEAL) ~~ Clayton . Davi son, Esquire COMMONWEALTH OF PENNSYLVANIA Notatlal Seal Elan M. Palmer Notary Pt~Nc at~or-ro,> courn~+ My Canmieabn Expkea Aug. ~ ~ 2010 ~ ~° a G. v ._., `~~ ~ ~ ,~',' ` ~~ . jJ ~ ~ `~~a k ~ _ r'' ~ ~ 1 ~ % + ~ t r-i ~ ~~3 i" ' N INTEGRITY BANK, IN THE COURT OF COMMON PLEAS Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA v. CASE N0.07-3835 Civil Term DAVID G. KENNERLY AND KIMBERLY A. KENNERLY, :CIVIL ACTION -LAW Defendants :MORTGAGE FORECLOSURE PRAECIPE TO DISCONTINUE Please discontinue the above captioned action without prejudice. Respectfully submitted, Date: July 17, 2007 McNEES WALLACE & NURICK LLC By: v Clayt~ln W. Dr£vidson Attorney I.D. 79139 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 Direct Fax: 717-260-1678 Phone: 717-232-8000 cdavidson(a,mwn. com Attorneys for Integrity Bank r-• ~. CERTIFICATE OF SERVICE The undersigned hereby certifies on this day that a true and correct copy of the attached Praecipe to Discontinue was served by first-class United States mail, postage prepaid, addressed as follows: David G. Kennerly Kimberly A. Kennerly 6307 Valleybrook Drive Mechanicsburg, PA 17055 Date: July 17, 2007 d~ Clayton W. Da idson, Esquire 4"~YS ~1 t ~ ~ I _ ..r C....- ( ~ : ~~ ^n+ ~.-- . - 1n , ..-;~; ~ ;%~j ='t"~ . ~~ - r ~ ~ . ' J...'_. f x' ~-4 SHERIFF'S RETURN - REGULAR r ~" CASE NO: 2007-03835 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND INTEGRITY BANK VS KENNERLY DAVID G ET AL SHAWN HARRISON Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon KENNERLY DAVID G the DEFENDANT at 1943:00 HOURS, on the 3rd day of July 2007 at 6307 VALLEYBROOK DRIVE MECHANICSBURG, PA 17055 by handing to DAVID KENNERLY a true and attested copy of COMPLAINT - MORT FORE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 10.56 Affidavit .00 Surcharge 10.00 .00 ~'~lo~n1 9,,., ~/ 38.56 Sworn and Subscibed to before me this of day So Answers: R. Thomas Kline 07/03/2007 MCNEES WALLACE NURIC ~. By: eputy Sheriff A.D. SHERIFF'S RETURN - REGULAR _ _~~ CASE N0: 2007-03835 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND INTEGRITY BANK VS KENNERLY DAVID G ET AL SHAWN HARRISON Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon KENNERLY KIMBERLY the DEFENDANT at 1943:00 HOURS, on the 2nd day of July 2007 at 6307 VALLEYBROOK DRIVE MECHANICSBURG, PA 17055 DAVID KENNERLY, HUSBAND by handing to a true and attested copy of COMPLAINT - MORT FORE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 Sr~ 10,6 ~,,, 16.0 0 Sworn and Subscibed to before me this day So Answers: `~f~ ;mod ~'' ~~ ~..~ R. Thomas Kline 07/03/2007 MCNEES WALLACE NURICK By: puty Sheriff of A.D.