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Home My WebLink About07-4744ORRSTOWN BANK, 77 EAST KING STREET SHIPPENSBURG, PA 17257 Plaintiff V. JOAN L. GRESS 25 BROAD STREET SHIPPENSBURG, PA 17257 Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA rro. zoo~_ y7~ly MORTGAGE FORECLOSURE NOTICE CNIL TERM 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 an attorney and filing in writing with the court, your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 South Bedford Street Carlisle, Pennsylvania 17013 (717) 249-3166 ORRSTOWN BANK, 77 EAST KING STREET SHIPPENSBURG, PA 17257 Plaintiff V. JOAN L. GRESS 25 BROAD STREET SHIPPENSBURG, PA 17257 Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO.2007- ''~ ~ y y CIVIL TERM MORTGAGE FORECLOSURE COMPLAINT AND NOW, comes Plaintiff, Orrstown Bank, by and through its attorneys, O'BRIEN, BARIC & SCHERER, and files the within Complaint and, in support thereof, sets forth the following: 1. The Plaintiff and Mortgagee is Orrstown Bank, a Pennsylvania corporation with a place of business located at 77 East King Street, Shippensburg, Cumberland County, Pennsylvania, 17257. 2. The Defendant, Joan L. Gress, is an adult individual residing at 25 Broad Street, Shippensburg, Cumberland County, Pennsylvania, 17257. 3. By Deed acknowledged on June 14, 2004, Anna M. Bert, Tammy F. Hoover, Merrill E. Varner and Bessie M. Jones, Co-Executors of the Estate of Ailie M. Proctor, conveyed the premises described in Exhibit "A," attached hereto and made a part hereof by reference, to Joan L. Gress. This Deed was recorded in Cumberland County Deed Book 263, Page 2894, et seq. , all of which pages are incorporated herein by reference and made a part hereof. The premises are further described as being 25 Broad Street, Shippensburg, Cumberland County, Pennsylvania, 17257. 4. On or about June 14, 2006, Gress, as Mortgagor, made, executed, and delivered a written Note secured by a Mortgage, made, executed, and delivered the same day to Plaintiff as Mortgagee on the premises described in Exhibit "A." This Mortgage was recorded in the Cumberland County Office of the Recorder of Deeds on June 14, 2004, at Cumberland County Deed Book 1869, Page 4851, et seq., all of which pages are incorporated herein by reference and made a part hereof. 5. A true and correct copy of the aforesaid Note is attached hereto and made a part hereof as Exhibit "B." A true and correct copy of the aforesaid recorded Mortgage is attached hereto and made a part hereof as Exhibit "C." 6. Defendant has defaulted under the terms and conditions of the Mortgage and Note by failing to make payments as follows: 7. Defendant is the present record owner of the premises described in Exhibit "A" and the real owner of the premises. 8. Plaintiff served Notice of Plaintiff's Intention To Foreclose on the real estate of Defendant with Notice Of Defendant's rights under Act 91 of 1983 (Homeowner's Emergency Mortgage Assistance Law) via certified mail and certificate of mailing on May 17, 2006. 9. Attached hereto and marked as Exhibit "D" is a true and correct copy of the combined Act 6 and Act 91 Notice. 10. Attached hereto and marked as Exhibit "E" are true and correct copies of the certified mail receipt and the certificate of mailing for the combined Notice served upon Defendant. 11. Under the terms of the Mortgage and Note, if any monthly payment of principal and interest is not made when due or any other obligations of the Mortgage, Modification of Mortgage, or Note are not met, then the entire indebtedness owing on the Mortgage, Modification of Mortgage, and Note obligation shall become due and payable immediately at the declaration of the Mortgagee. 12. The following amounts are presently due on the said Mortgage and Note calculated to July 25, 2007: Principal $46,381.00 Interest to 07/25/07 $ 731.79 (per diem $8.89) Reasonable attorneys fees fixed by Plaintiff for purposes of this Complaint (10% of principal debt) $ 4,638.10 Late Charge $ 30.00 Real Property Taxes 2 534.31 TOTAL: $54,325.20 WHEREFORE, Plaintiff demands Judgment in Mortgage Foreclosure in the sum of $54,325.20 plus interest thereafter at the contract per diem from July 25, 2007, and costs against Defendant, Mortgagor and real owner, and seeks foreclosure and Sheriffls Sale of the mortgaged property referenced in Exhibit "A" hereto. Respectfully submitted, O EN BARIC CHE David A. Baric, Esquire I.D. 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 Attorney for Plaintiff ORRSTOWN BANK, 77 EAST KING STREET SHIPPENSBURG, PA 17257 Plaintiff V. JOAN L. GRESS 25 BROAD STREET SHIPPENSBURG, PA 17257 Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA N0.2007- CIVIL TERM MORTGAGE FORECLOSURE VERIFICATION I verify that the statements made in the foregoing Complaint are true and correct to the best of my knowledge, information and belief. This verification is signed by David A. Baric, Esquire, Attorney for Plaintiff, and is based upon the statements provided by Plaintiff, as well as documents reviewed by the undersigned as attorney for Plaintiff. I understand that false statements herein are made subject to penalties of 18 Pa.C.S. §4904, relating to unsworn falsifications to authorities. Dated: August 8, 2007 David A. Baric, Esquire ALL that certain tract of land with improvements situated thereon, in Southampton Township, Cumberland County, Pennsylvania, more fully bounded and described as follows: BEGINNING at a set railroad spike in the center line of Township Route 323, Broad Street, said point being at the Northwest corner of Lot 1 of the Subdivision listed below; thence along Lot 1 South 0 degrees 12 minutes 52 West 80.16 feet to a set iron pin located at corner of Lot 1 and lands now or formerly of Frank E. Stouffer; thence continuing along lands formerly of Frank E. Stouffer North 89 degrees 47 minutes 08 seconds West 83.39 feet to a point in the center of a creek known as Burd Run; thence though the centerline of Burd Run North 24 degrees 12 minutes 19 seconds West 27.53 feet to a point in the center of Burd Run; thence continuing by the centerline of Burd Run North 03 degrees 20 minutes 02 seconds West 55.20 feet to a Parker- Kahlon nail in the centerline of Township Route 323; thence along the centerline of said roadway South 89 degrees 47 minutes 08 seconds East 98.29 feet to a set railroad spike, the point and place of BEGINNING CONTAINING 0.173 acre, more or less BEING all of Lot 2 of Subdivision plan of Steven P. Wolfe, R.S., for Jay L. Pyne dated July 17, 1992 and recorded in Cumberland County Plan Book 65, Page 17. BEING the same property which Jay L. Pyne and Dorothy J. Pyne, his wife, by deed dated October 26, 1993, and recorded in Cumberland County Recorder of Deeds Office Deed Book Volume 36-Y Page 466 granted and conveyed to Ailie M. Proctor, single woman. EXHIBIT "A" ~ii~-C~~-~'C~Q7 wEE 0~~~ 1C F~~1 uRRST~i~P;IiIPU:~Si a11753093C~4 F. 0Q1 P~iO~IIISSORY NOTE .. ............. ..................... .M,,:. ~. . .... . ..... References in the shaded area are for L®nder's use only and do not limit the appllcablllty of this document is any particular loan pr Item. Any Item above contalning """"" has been omitted due to text length llmltatlons. Borrower: JOAN L OAESS (SSN: 188-34-8882) Lend®r: ORRSTOWN BANK CLYQE L SCWAEFFER ISSN: 161.32-4407) K1N0 STREET OFFICE 7x01 THREE SO;UAAE WOLLOW ROAD P 0 BOX 77 EAST KIND STREET 16 P 0 BOX 250 SWlPPENSBUR[i, PA 17257 SHIPPENSBURG, PA 17257 Principal Amount:'$50,OOO.gO Interest Rate: 7.OO~% Date of (Vote: June '14, 2004 Maturity Data: ,June 14, 2019 PROMISE TO pAY. I ("Borrower") jointly and sAVaraiiy promise to pay to ORRSTOWN t3ANK ("Lender"), or order, In lawful money of the United States of America, the principal amount of Fifty Thousand & 001100 Dollars ($50,000.001, together with Interest at the rate of 7.00096 per annum on the unpaid principal balance from June 14, 2004. until paid in full. PAYMENT. i will pay this loan ir1 980 payments of $4A~9.54 each payment. My first payment is due Juiy' 1i4,; z004,:'and all subsaquont payments are due on the same day of each month after that. My final payment will be due on June 14, 2019, erid will'be for all principal and all accrued Interest not yet paid. Payments include prlnelpal and Interest, Unless otherwise agreed or required by applicable law, payments w111 be applied flrat to any accrued unpaid Interest; then to prlr,cipal; then to any unpaid collection costa; and than to any late charges. interest on this Note ie compu#ed on a 385J365 almple interest bawls; that )s, by applying the ratio of the annual in#ereat rata over the number of days In a year, muitfplled by the outstanding principal balance, multiplied by the actual number of days the principal balance its outstanding. I will pay Lander et Lender's address shown above or at such other piece as Lender may designate In writing. PREPAYMENT, , i may pay without penalty all or a portion of thQ amount owed earlier than It Is due. Early payments whl not, unless agreed to by Lender in writing, relieve ma of my obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in my making fewer payments. 1 agree not to send Lender payments marked "paid In full", "without recourse", or similar language, If I send such a payment, Lender may accept it without losing any of Lender's nigh#e'uhder this Note, and I will remain, obligated to pay any #urthar amvunt owed to Lender. All written communications concerning disputed amounts, including any cheek or other payment Instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other aandltians or Ilmitatlons or as full satlsfaation of a disputed amount must be mailed or delivered~to; ORRSTOWN BANK, P.O. BOX 26D SHIpP!*NS9URG, PA 17257. LATE CHARGE. If a payment is 16 days or mare late, I will be rhargad $2.50. INTEREST AFTFdi Da=FAULT. Upon default, Including failure to pay upon fine) maturity, the total sum due cinder this Note will bear In#erest from the data of accelaratian ar maturi#y at the interest rate on this Note. Tho Intor©st rate will not exceed the maximum rate permitted by applicable law. DEFAULT. I will be In default under this Nota if any of the following happen: Paymerrt Default. I fail to mak® any payment when dum andor this Note. Break Other Promisee. 1 break any promise made to Lander ar fell to perform promptly at the time and strletly in the manner provided In this Note or In any agreement related to this Note, or in any other agreement or loan 1 have with Lender, False Statements. Any representation or statement mad® or furnished to Lender by me or on my behalf under this Nvte or the related documents ie false or misleading In any matQrial respect, either now or at the time made ar furnished. Death or Insolvency. Any Borrower dies or becomes Insolvent; a receiver is appointed for any part of my property; I make 8n dsslgnment for the benefit of creditors; or arty proaeeding is eommaneed ether by m® or against mm under any bankruptcy or.i"nsoivency laws. Taking of the Property. Any creditor or governmental agency tries to take any at the property or any o#her of my property in which Lender has a Ilan. This includes taking of, garnishing of or levying on my accounts with Lender. However, if (dispute in good faith whether the claim en which the taking of the property is based is valid or reasonable, end {f I glue Lender written notice of the claim and furnish Lender with monies or a surety bond sallafactory to Lend®r to satisfy the claim, then this default provisicn will na# apply. Defective Collaterallzatlon. This Note or any of the tale#ed doeuments ceases to be fn full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Collateral Damage or Lose. Any collateral s®curing this Note is lost, stolen, subatantlally damaged or destroyed and the Toss, theft, substantial damage or destruction is not covered by lnaurance. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness or shy guarantor, endorser, surety, or accommodation party dies or becomes Incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedn®ss ®videnced by this Nota. In the event of a death, Lender, at Its option, may, but shall not be r®qulrad to, porrnlt the guarantor's estate to as&ume uncondlt[onally the obilgations arising under the guaranty in a manner satisfactory to Lender, and, In doing so, cure any Event of Default. Cure Provisions. If any default, other then a default In payment Is curable and If I have not bBen given a notice of a breach of the same provision of this Note wlthln the preceding twelve (12) months, it may be cured ff I, after receiving written notice from Lender demanding cure of such default: (11 cure the default wlthln fifteen (16) days; or (2) if the cure requires more than fifteen (151 days, immediately Initiate steps which !.ender deems in Lender's sole discretion to be sufficient to ours the default and thereafter continue and complete all reasonable and n®cessary steps sufficient tv produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Land®r may, after giving such notices es required by applicable law, declare the entire unpaid principal balance on this Note and all accrued unpaid interest Immediately due, and then I will pay that amount. ATTORNEYS' PEES; EXPENSES. Lender may hire or pay aomeona else to help collect this Note if I do not pay. 1 will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expana96, whether or not there is a lawsuit, including attorneys' fees, expenaea for bankruptcy proceedings (Including efforts to modify or vacate any automatic stay or 1nJunction), and appeals. If net prohibited by applicable law, I also wlli pay any court costa, in addition to all oth®r sums provided by law, JURY WAVER. Lender and (hereby waive the right to any jury trial in any action, proceeding, or counterclaim,brought by.either Lender or me EXHIBIT "B" n~~~~~~~-08'--'007 WED 0~ 16 PM ORRSTOWNh'~INGS 77175309304 F. 002 PROMISSORY NOTE Login No: 130Q31859 ~ConfinU~d) Page 2 against the other. RIGHT OF SETOFF. To the extent permitted by applicable law, Lander reserves a right of setoff in a(I my aoGOUnis with Lender (whether cheGking, savings, ar some oth®r account}. This includes all accounts I hold jointly with someone else and alt accounts f may op®n In the future. However, this does not include any IRA or K®ogh accounts, or any trust accounts for which setoff would be prohibited by law. I authorize Lender, to the extent permitted by applicable law, tv charge or setoff all surt~s owing on the indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided In this paragrHph. GOLLATERAL. 1 acknowledge this Note is secured by the following collateral described In the security Instrument Meted herein: a Mortgage dated June 14, 2QO4, to Lender vn rest property located In CUMBERLANb County, Commonwealth of Pennsylvania. PROPERTY INSURANCE. I understand that I am required to obtain insurance for the Gvllataral securing this Note, Further information concerning this requirement is set forth In the Mortgag® and in the Agreement to Provide insurance, ell the terms end conditions of which ors hereby incorporated and made a part Qf this Nita, SUCC>rS80R INTERESTS. The terms of this Note shall be binding upon me, and upon my heirs, personal representatives, eucceasora and assigns, and shall inure to the benefit of Lender and its suocessors and assigns. NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTENG AGENCIES. ?I®asa notify us If w® report any inaccurate information about your account(s) to a consumer reporting agency, Your vdritten notice dofiCribing thri specific inacruracy(ies) shQUld be sent to us at the following address: ORRSTDWN BANK P.Q. BOX Z50 SHIPPENSBURG; 1'/1 17257 GENERAL PROVISIONS, Lander may delay or forgo enforcing any of its rlflhts or remedies under thEs Note without losing them. 1 and any other person who signs, guaranrsea or endprsee this Npte, tp the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Nate, and unless otherwise expressly stated in writing, no party who signs this Nvte, whether ©s maker, guarantor, accommodation maker or endorser, shall be Yeleesed from liability. All such parties agree that L®nder may renew or extend (repeatedly and far any length of time) this lean or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in iha collateral. Ail such parties also agree that 1_endsr may modify this Iosn without the consent of or notice to anyone other than th® party with whom the modification Is made. Tiia obligations under this Nota are Joint and several. This means that the words "I", "me", and "my" moan each and atl of the parsons signing below, RRIDR TO SIGNING THIS NOTE, I, AND EACH OF US, REAP ANl7 UNDERSTDDP AI.L THE PROVISIONS OF THIS NOTE. I, AND EACH OF U8, AGREE TO THE TERMS OF THE NOTE. I ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THIS PROM15$DRY NOTE, 1 THIS NOTE iS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE !S AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SI=ACED INSTRUMENT ACCORDING TO LAW. SQRR~WER: .:«ss!<,:e :~ ;•:e,:~.>!s;<;.;<~s.•. ~>•. .r.<s:.<..:os. .< ~s:..<s!es :eexs:q!;a:~!lnsmxe !e. .: ~~~Z7'rc:.,:. ..l.~;c :; . ~:;~j.:;5..~.!...>•;k~~:t~.2 •,0 „>:u>:<:a;2• .r<. r:i,.SN!<~~5:l.S:l.a 1. .S!.S!.:.w'.s:~2.y.: :2•u X03. :1.5;:2.•: o: • •S . >:, ,.` ~s:l~: ,. ~ S i~ ' S, 2 ~ 6r :,. b' .:,:. , x .!.' ~- .} .~~ r•fs ,.:.. : ~ ! JOAN 1, RESS ::fsgsyl.r.~,>y ;::~ ~ ~!$ve ?_°.=°,l:i°~. !=:Z:es!((.. e•. e. ' <M.:Yt>!! :.YOS!~ 4c...'c•Sa.S:o! xis:>ica~; < ~: •! : ;, <>is: •ra.;; ~ ~> , ' ; :, .>..: , :S. CLYDE L SC' /AEFF1=Fi V --- -. __ Wd6s:a PPO l.M~l~9. Var. p.2'7dq•(gl Ccttr. Hn~lund L7nnnhld':alu,lon., Inc. 7977, :C09. FII RfpRn PowvW. - FA 4:~CFl ILOL~G 7,p-Ft 7A.77P8 PA•Ay a~~ ~~ ~~~ W~ RECORDATION REQUESTED BY: ORRBTOWN BANK KING STREET OFFICE 77 EAST KNNO STREET P 0 BOX 280 BHIPPENSBURG, PA 17267 WHEN RECORDED MAIL TO: ORRfTOWN BANK p.0. BOX 280 SHIPPENSBURG, PA 17267 •' J L'. fi J L. ~) . y Jr~N ~ 6 p~ 2 . , ~~ MORTGAGE THIS IS A PURCHASE MONEY MORTGAGE THIS MORTGAGE dated June 14, 2004, is made and executed between JOAN L DRESS, whose address is 1001 THREE SQUARE HOLLOW ROAD P O BOX 1b, 8HIPPENSBURG, PA 17257 Irehrred to bsbw to "Grantor") and ORRSTOWN BANK, whose address Is 77 EAST KING STREET, P O BOX 250, SHIPPENSBURG, PA 1725T (referred to below ae "Lender"1. GRANT OF MORTGAGE. For valuable cwyideretion, Granssr grants, bargains. seas. corners, assigns, trsnefsro, releases. confirms and mortgapas to Lender all of Grantor's rlyM, title, and htLersst in and t0 the fdbwing deapibed roel property, together with aq existing or wbsequently erected ar sfflxsd buNdings. Improvements end flxturss; eq streets, larrss, alleys, passages, and ways; ell easements, rights of wtay, aN gberties, privNeges, tenements, heroditamenb, and appurtensnces thsrount0 belonging or anywise msds appurtenant herosftsr, and the rewrdoris and romalndero with rospect d»reto; alt water, wster rights, watercouross and ditch rights (including stock in utghlsa with dkch or krlgsdon rlghtsl: end all other rlphts, royahies, and profits rotating to the roal property, Includlnp without Nmitatbn all minsrab, ou, 9aa, ~sothermal and similar mattsro, (the "Real Property") located in CUMBERLAND County, Commonwealth of Pennsyhrania: SEE ATTACHED The ReN Property or ib address la commonly known as 25 BROAD STREET, SHIPPENSBURG, PA 17267. Grantor prsasrrdy assigns to Lender eN of Grantor's right. dtb, and Intsrost IW and to all prsaer>t and future Iseea of the property end ail Rents from the Property. In additbn, Grantor grants to Lender a Uniform Commercial Code acurhy interest in the Personal Property and Rents. THI8 MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS ANO THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, is GIVEN TO SECURE (AI PAYMENT OF TFIE INDEBTEDNESS AND (BI PERFORMANCE OF ANY AND ALL OBLIGATN)NS UNDER THE NOTE IN THE ORIGINAL PRINCIPAL AMOUNT OF !80,000.00, THE RELATED DOCUMENTS, AND TH18 MORTGAGE, THIS MORTGAGE IS GIVEN AND ACCENTED ON THE FOLLOWING TERMS: GRANTOR'8 WAIVERS. Grantor waives all rights or defenses erbing by reason of any "ores action' or "anti-deficiency" law, or any other law which may prevent Lender from bringing any ecdon spsinst Grantor, inducting a claim for dsfk:lancy to tfts extern Lender b otherwise entidsd to s claim for deficiency, before or after Lender's commencement or completion of any forocloaure action, either judidally or by exercise of a power of sale. GRANTOR'S REPREaENTATIONS ANp WARRANTIES. Grantor wan'enta that: fe1 this Mortgage is executed at Borrower's request and not at fire request of Lsndsr, (b1 Grantor has rhs fuq power, right, and authority to enter into thin Mortgage and to hypothacats the P-cpe-N: (~ the provisionu of fhb Mortgage do not confl~t whh, or rewk in a default under any agreement or other instrument binding upon Grantor end do not rosuh in a violation of sny law, regubtlon, court decree or order appgcebb Lo Grantor, Id} Grants hss establbhsd adsgwts means of obtaining from Borrower on s condnuirrg basis informadoW shout Borrower's flnancbl condition; end (e) Lender has made no rspregntatbn to Grantor about Borrower precluding without IimhaUon the txsditworthinssa of Borrower), PURCHASE MONEY MORTGAGE. It any of fife debt secured by tltia Mortgage la kWt to Borrower to scquirs tide to the Real Property, this Mortpal~S shag be a purchase money mortgage under 42 P.S. Section 8141. PAYMENT AND PERFORMANCE. F.xoept as otitsrwlas provided in this Mortgage, Borrower ahaq pay to Lender all Indebtedness securod by this Mortgsgs ss it becomes due, and Borrower and Grantor shell strictly perform all Borrower's and Grantor's obligations under this Mortgage. P038EBBION AND MANIiTENANCE OF THE PROPERTY. Borrower and Granter agroe that Borrower's and Grantor's possession and use of the Property shall be governed by the following provisions: Possesson and Use. UnUi the occurrence of an Event of Oefsuk, Grantor may (11 remain M possession and control of the Property; (2) ws, opersts or mansge the Property; and 131 collect the Rents from the Property. Duty to Mahtaln. Grsrnor shell maintdn the property in good condition and promptly perform ell repafre, replacements, and meiMSnarlq necessary to preserve Its value. Compllerree With EewbenmertW Laws. Grantor ropresents and warrenta to Lender that: (11 During the period of Grantor's ownership of the Property, them has been no ws, gertaretion, manufacturo, storage, treatment, disposal, rokase or U+reatsnsd rolesse of any Hazardous Substance by any psroon an, under, about or from the Property; f21 Grantor has no knowledge of, or reason to believe that thsro has been, except as proviowly disclosed to end acknowledged by Lender in writing, (s) any breech or violation of any Environmental Laws, fbl any use, gensradon, manufacture, storage, treatment, dbpoaal, release or threatened release of any Hezsrdow Substance on, under, about or from the Property by any prior owners or occupants of the Property, or Ic1 any actual or th-eetsned Ntigadon or claims of any kind by any parson rotating to such matters; end f31 Except a provbusly discbaed to and acknowedgsd by Lender M wrhng, ia) Walther Grantor nor any tenant, contactor, agent or other authorized user of the Property shall use, ~nerote, manufacturo, store, treat, dbpose of or rolsase any Huardow Substance on, under, about or from the Property; and ibl arty such aedvity shall be conducted in complbnrx with ell sppllcsbk federal, state, and local laws, regulsdons and ordinances, including without limitation all Environmental Laws. Grsntor tttrthorizes Lander and its agsrtts to enter upon the Property to make such Inspections and testa, at Grantor's expense, as Lender may deem appropriate to determine compliance of the property wKh this eecdon o! the Mortgage. Any inspsctlons or bets made by Lender shall be for Lsnder'a purposes only and sMN not be cor-strued to oroate ony rosponsibgity or IladNty on the part of Lender to Grantor or to any other pereon. Ths rspresentatbns and warranties contdrred heroin are based on Grantor's due digpencs in Investigating the Property for Hazardow Subagncea. Grentor hereby (11 releases and waives any futuro claims against Lender for Indemnhy or contribution in the evertt Grantor becomes liable for cleanup or other costs order any such laws; and (21 agrees to Indemnify aril hold hermtess Lender against any and all claims, bssss, IlabiNtlas, damages, penaldss, and expenses which Londar may diroctly or Indirectly sustNn or suffer rosultlng from a breach of this e~ ion of the Mortgage or as a consequence of any use, gsnsralion, manufacture, storage, disposal, reksse or threateWSd release urrirtg prior to Grantor's ownership or interest in the Property, wMther or not tfie same was or should hew been known to Grantor The provlslons of this section of the Mortgage, Inducting the obNgadoW to IrdemnMy, shell survive the payment of the Irdebtednaas and tM sadsfactbn and roconveyance of the Nen of this Mortgage end shall not be effected by Lendar'a soqubition of arty interest in the Property, whether by toredosure or otherwise. Nsisance, Waste. Grantor shell not cause, conduct or permh any nufesnce nor commit, permit, or suffer any stripping of or waste an or to the Property or arty portion of the Property. Without fimlting the gerrorslily of the forogoing, Grantor wql not romove, or grant to any other party the right to remove, any timber, minerals (Inducting oil and gesl, coal, clay, scoria, soil, gravel or rock products SKI869FGE185I EXHIBIT "C" MORTGAGE (Continued) Pps 1z` without Lender's prior written consent. Removal of Imprwanorrta. Grantor shall not dsmoRah or romove any Improvements from the Raal Property wthout Lerxbr's prbr written conuM. As a conditkxt to the romoval of sny Improwmsms, Lender may require Grantor to make arrangemsna satisfactory to Lender to replace such Improwntsna whh knprowments of at least egwl value. Larder's Right to Etrear. Lender and Lender's agsna and reprountedws msy srtar upon the Real Property at all reasonable times to attend to Lender's inaresa end to inspect the Reel Property for purposes of Grantor's oompNance whh tM terms end condhions of this Mortgage. CompNanoe with 6owrrsetsrMal RegtiemaMS. Grentor shell PrompUY comply whh ell Isws, ordinance, and regulations, now or Ftaroaher in effect, of ell govemmsrttM authorhies applbabb to fife use or occupancy of the Property. Grantor may contest in good faith any such law, ordinance, or rogulation and withhold compliance during any prooeedbtg, including eppropriaa appeals, so brag as Grantor has ratified Lender In wNUrtq prior to doing so and ao long as, in Lender's cols opkdon, Lender's htteresa in the Property are not jsoparWzsd. Larder may require Grantor to poet adsqusa security or a surety bond, roaaonably satisfactory to Lender, to protect Lender's irttersst. Duty ss P-oeaot. GflMOr sgross neither to abandon or leave unattended the Property. Grantor shall do all other acts, in additbn to those acts set forth above in this section, which from the character end use of the Property are reasonably necessary to protect and preserve tM Property. OUE ON GALE - CONSENT BY LENDEit. Lender may, et Lender's option, dsclaro Immsdiaay rive and peyabb ell sums scoured by this Mortgage upon the sale or transfer, without Lsndsr's prbr wrkan consxtt, of ell or any pert of the Real Property, or any inaroat In the Real Property. A 'aab or transfer' maarts the oonwyanoa of Rsal Property or sny right, tlUe or interest M the Rol Property; wMthsr legal, benefbbl or equiabb; whether voluruary or kwelurttary; wMther by outright sale, dud, ktaalimsrtt ub contract, lend contrect, contract for deed, IusahoW ktarest with a arm greaar then three 131 yews, lose-option camact, or by aab, essipnrrtertt, or transfer of any beneficial Interest in or to any brad that hoWing title to the Real Property, or by any atMr mstlwd of conveyertoa of an irraraet in the Real Property. However, this opton aheN not bs sxerolssd by Lender if such sxerolu is proMbfad by federel law or by Perntsyhranb law. TAXE8 AND LIENS. The following provisions relating to the texas end Nsns on the Property ere pm of this Mortgage: PeyrrlNtt. Grantor shah pay when rive (end In aN ewrro prior to deNrtquancy) aN axes, payroN taxis, epecbi taxes, aasessnwMS, wear charges end sewer unrics charge bvlsd against or on accotutt of tM Property, rnd aheN psy when rive ell claims for work dons on or for services rondsrod or materiel furnished to the Property. Grantor aheN mairttein the Property free of any lisrta hsvirtg prbrity over or equal to the interest of L.sndsr under this Mortgage, except for thou Ibrts spacificaNy greed t0 to wridnq by Lender, and except for the Nan of taxis end ausssmerm not due as furtMr specified in the Right m Contet paragreph. Right to Cartlstt. Grantor msy withhold payment of any tax, aassssrr>ent, or claim in oonnacdon with a good faith dispute over fife obNgatbn to pay, so long a Lertdsr's inaret in the Property fs not JsopaMizd. If a lien arises or b filed as a rosult of nonpayment, Grantor aMN within ffteen (151 days afar tM Iisn arises or, if s Ibn is fibd, wfthh fitasn tl b) days after Granter has notice of the filing, secure the discharge of the Nsn, or if requetsd by Under, deposh whh Lender cash or a sufficient corporate suroty bond or other security satisfactory to Lender in an amount suffcbnt to d'achargs the Nen plus any cosh end sttomsys' face, or other charges that could accrue as s resuh of s toroolosure or sale order the Iisn. In any conast, Grantor aheN defend Itself and Lender and shall setbfy any adwroe judgmsrtt 6afora antorcamsnt against the Property. Grantor aheN name Lander ss an addhional obiigu under any surety bond furnished in the contet proceedings. Evidsrraa of Paymartt. Grentor shah upon demand famish to Lender satisfactory evidence of payment of the taxes or ausemsna and shag authorize the appropriate gowmmarrtal official to deliver to Lender at any Ume a wrttan ataamertt of the texas end assessments agairnt the Property. Notke at Canatartstlbrt. GraMOr shMl notify lender at lust fifteen 1161 days baforo any work b commenced, sny urvbes aro fumishad, or any maariab aro suppibd to tM Property, If any mechanic's Tien, maarialmsn'a Ilan, or otfwr Ibn could be asurted on secourtt of tM work, service. or materiab. Grentor will upon rogwst of Lerxiar fumiah to Lender edwnos assurances sadafactory to Larder that Grantor can end wNl pay the cost of such improvements. PROPERTY DAMAGE IN8URANCE. TM tolbwing provisbns robUng to Insuring the Property are a part of this Mortgage: MaYranenf.'e of Insurance. Grantor shell procure and maintain pollobs of firs insurartcs with stardard exandsd oowrps sndoreemerta on s ropbcemsnt bale for the full insurobb value covering all Improvemarta on the Real suffbbnt to svoki eDpNcatbn of any coinsurertce ciatrse, and with s sandaro mo ~~rtY rn an amount rtgagss clews in favor of Lender. PoNobs shill be writan by ouch insurance compsnbs and in ouch form a may be reuonably aaro-ptabb to Lender. Grantor shall daNwr to Lsrtdsr certificates of coverage from each insurer containing s atipulstbn that coverage wiN not be cancelbd or diminished without a minimum of an (10) days' prior wrttan rtotle:a to Lender and not conalnirtp sny disclaimer of the Insurer's IlabNity for faNure to give such notice. Each insurance poNcy also shall include an endorsement provldng that coverage in favor of Lender wNl not bs impaired in any way by any act, omission a default of Grorttor or sny other parson. The Real Property is or will be located in en area dssignatsd by the Director of the Federal Emergency Managsmsrtt Agency sa s special food hazard aro. Grantor aptaas to obtain end maintain Federal Food Insurance, if available, for the full unpaid prindpsl balance of the ben end any prior Ibns on the property securing tM ben, up to the maximum polby Ilmia set under the Natbnal Flood Insurance Program, or a otherwise required by Lender, and to mainain such insurance for the artn of ttte loan. AppNcetlort of Proceeds. Grantor shall promptly notify Candor of any bas or damage to the Property. Lender msy make proof of loss If Grsnto- taib to do so within fifteen 115) days of the caswlty. VtRtathsr or not Lender's security fe impalrod, Lsrtdsr may, et Lender's ebetbn, rooslw and retain the proceeds of any inturenoe and apply the graced[ to the reduction of the indsbadnsss, payment of any Nsn atfsotktg tM Property, or ttta restoration and repair of the Property. If lender Nsca m apply ttte proceeds to resaretbn and repair, Grantor shah repair or replace the damaged ar defrayed Improwmsna b a manner sstbfactory to Lander. Lender aheN, upon satisfactory proof of such expenditure, pay or reimburse Grantor irom the proceeds for the rsasonabb cost of ropeir or retoraUon if Grenar is not in default under thin Mortgage. Any proceeds which hew not been diaburead whfiln 180 days after their receipt end which Lerxkr has not committed to tM repair or restoration of the Property shall be ursd fire[ to psy any amount Owing to Lender under this Mortgage, then to pay accrued inarest, and tits remainder, if any, shall be applied to the principal balance of the Indabtadnass. If Lender holds sny proceeds after payment in full of fife Indebtednus, such proceeds shall be paid to Grentor as Orsrrtor'a interests msy appear. LENDER'S EXPBDITUREB. if Grentor taNs IA) to kup the Property fre of all taxes. Ilene, security inaraaa, encumbrance, and other claims, tBl to provide any required insurance on the Property, or ICI to make repairs to the Property then Lender may do so. If any salon or procudlrtg is commenced that would maarlally afisct Lender's intsrosa M the Property, thM Lender on Grarttw'a behalf may, but is not required to, ales arty action that Lender bslbws to bs appropriaa to protect Lender's inbresa. All expense Incurred or paid by Lsndsr for such purposes will tlwn bear inarost at the roe charged under the Noe from the date incurred or paid by Lander to the date of ropaymsrrt by Grantor. AN such expenses will become a part of the Indebtedness and, at Lender's opton, wNl (A) 6a payable on demand; (B) be sddrad to the [[slang of the Note and ba apportioned among and ba payable with any inatallmsnt payments to become rive during either 11l tits temp of any appgesbb Insurance policy; or 121 the remaining arm of the Note; or (C) bs [rated as • beacon payment which wiN bs dw and payable at Ute Noa's meturhy. Tito Mortgage also will secure payment of titese emourtta. TM ri gtta Provided for in this paragraph shall be in addition to any other rights or ar-y romedias to which Lender may be entitled on account of any default. Any such action by Lsndsr shall not bs construed as curing the dstwft so a to bar Lender from any remedy that h othsrwiu would haw had. Grantor's obligatbn m Lender for aN such sxpertes shall survive the entry of any mortgage forscbsuro Judgment. WARRANTY; DEt~N8E OF TITLE. The fogowing provlelons relating to ownsrsMp of the Property ors a pert of this Mortgage: Ttlb. Grentor warrona that: (al Grantor holds good and rnnketabls title of record to the Property In fee simple, free end clear of all liens and encumbrances other then those sat forth in the Real Property descripdon or in any title insurance policy, titb report, or final title opinion issued in favor of, and accspad by, Lender in comsction with this Mortgage, and (b) Grantor has the full right, power, end authority to execute end deliver this Mortgage to Lender. Defense of TitN. Subject to the exception in the paragraph above, Grantor warrens and will forowr defend the tide to the Property BK 186~pG~852 MORTGAGE (Continued) Page 3 aga'stst the lawful datma of dl persona. In the event any action or proceeding Is commented that questions Grantor's title or the Interest of Lender under fhb Mortgage, Grantor shall defend the eofbn at Grentor's expense. Grantor may bs the nomind party in such procesdlrp, but Lender shall be entkbd m participate in tfN proceeding and to bs ropreaentsd in the proceeding by counsel of Lender's own choitx, and Gronto- wNl deliver, or cause to bs daNvsrod, to Lender such instruments as Lender may request from time to time to parmk such partidpation. CompNartra Whh Laws. Grantor warrants that the Property and Grantor's use of the Property complies with sU existing appttcebb bws, ordinsnoss, and regulations of govemmsntd authorltisa. 8urvhrd of Prorttfass. Att promises, agroements, end statements Grenwr has made in this Mortgage shall wrvhro the execution and dslhrory of this Mortgage, shill bs continuing in nature and shaft remain In full forts and effect until such time as Borrower's Indebtedness b geld in futt. CONDEMNATION. The following provisions relating to condsmnetion proossdings are a part of this Mortgage: Proceedings. If arty proceeding in condemnation b fibd, Grentor ahaN promptly notify Lender in writing, and Grambr shill promptly take such steps as may be necessary to defend the action and obtain tM award. Grantor may be the nominal party in such proceeding, but Lender shill be entftfad t0 partldpste In the proceeding and t0 ire reprossnted in the procesdk+g by coursed of ks own choice, and Grantor will deUver or cause to be ddlvsred to Lender such instruments and documsntsdon as may bs rogwsted by Lender from time to time to psrmk such participation. AppYcatbr of Nat Proceeds. It all or any part of the Property is corWemned by eminent domain proceedings or by any proceeding or purchase in Ibu of condemnation, Lender may at its slsctlan requiro that stt or any portion of tfie net proceeds of the award be applied to the Indebtedness or the repair or rostoration of the Property. The net proceeds of tM award shell mean the award after payment of ell sctwl costa, expertsss, and attorneys' fees incurred by Lender in connectors with the condemnation. IMP081710N OF TAXES, FEE8 AND CHARGER 8y GOVERNMENTAL AUTHORITIES. Ths following provisions rebting to governmental texas, fees end charges are s part of this Mortgage: Crrrertt 7saes, Fees and Charges. Upon rsgwst by Lender, Grantor shall execute such document8 in addition t0 tMs Mortgage end take whatever other action is requested by Lender to perfect and continue Lsnder'a Ibn on the Real Property. Grantor shall roknbursa Lender for all taxes, as dsecrlbsd bebw, together whh all expernes Incurred kl rocordirtg, perfecting w continuing this Mortgage, including wkhout Iimltatbn di taxes, fees, documentary stamps, end other charges for recording or rogistaring this Mortgage. Taxes. The foNowing shall constitute taxes to which this section applies: (1) a spsdfic Ux upon tMs type of Mortgage or upon aN or any pert of the Indebtedness secured by tMa Mortgage; (21 a specific tax on Borrower which Borrower it authorized or repulrod m deduct from payments en the Indsbtsdnasa aecurod by this type of Mor~age; 131 a tax on this type of Mortgage chargeabb agdnat the Lender or the holder of the Note; end (4) a specific tax on ell or any portion of the Indabtednsss or on paymwts of prindpal and Mterest made by Borrower. 8ubMqueM TeYee. If any tax to which thin ssctbn applies Is enacted subsegwnt to the daLS of this Mortgage, this wont shall have the rims effect es an Event of Defsuk, anti Lender may exercise any or sN of its wdlabb romedbs for an Event of Dehuk as provided bebw unbss Grantor either (1) pays the tax before it becomes dettngwnt, or (Z) contests the tax as provkfed above in the Taxes and Liens section end deposits with Lender cash or a sufficbnt corporate surety bond or other security eatisfsetory to Under. SECURIT1f AGREEMENT; FINANCING STATEMENTS. The folbwing provisbna retstirq to this Mortgage as a security agrwment aro a part of this Mortgage: Seeurky Agreement. Tfiis instrument shell constitute a 5acurity Agresmerrt to the extent any of the Property constitutes fixtures, and Lender shah have ell of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security ktterett. Upon request by Lender, Grentor shsN take whatever action is roqugtsd by Lender to perfect and oontinw Lender's security interest in the Personal Property. In addition to rerrording this Mortgage in the roal property rocorda, Lender may, at any time and wkitout further authorization from Grantor, file sxwutad counterpaRS, copes or roproductions of thin Mortgage as a financing statement. Grantor shall rdmburos Lender for all expanses incurred in perfectirg or continuing this security interest. Upon default, Grantor shill not remove, sever or detach the Pareonsl Property from the Property. Upon defwk, Grantor shaA assemble any Personal Property not affixed to the Property 1n a manner end st a place reasonably convenbnt to Grantor and Lender and make k available to Lender within throe 13) days attar rocelpt of wrknn demand from Lender to the extent permitted by applicebb law. Addresses. Tha maNing addressaa of Grantor (debtor( end Lender {secured party) from which infomtatlon concerning the securiry interest granted by this Mortgage may be obtained leech as required by the Uniform Commercial Codel aro es stated on the first page of fhb Mortgage. FURTHER ASSURANCES: ADDITIONAL AUTHORIZATIONS. The fottowing provisions relating to further sasurancss and sddkional authorizstions aro s pert of this Mortgeps: Further Marangs. At any time, and from time to time, upon request of Lender, Grantor will make, exscute and deliver, or will cause to bs made, executed or delivered, to Lerxfsr or to Lender's designee, and when rogwsted by Lender, cause to be fibd. recorded, roflbd, or roracorded, as the case may be, at such times end in such offices and places ss Lender may deem appropriate, any and dl such mortgagee, dssds of tnmt, securky deeds, security agreements, financing statements, continwtbn statements, Mstruments of father assurance, osrtificates, and other documents as may, in the cols opnbn of Lender, 6e necessary a dssirabb in order to afhctuats, compote, psrfsct, continue, or preserve (1) Borrower's end Grantor's obligations under the Nots, this Mortgage, and the Reacted Documents, and 12) the I(era and security interests crested by this Mortgage as first and prior ions on the Property, whether now owned or hsreaher acquired by Grentor. Unisss prohibksd by law or Lsndsr agrees to tlq contrary in writing. Grantor shall roimburse Lender for all cwta and expenses lncurrod In connection with the matters rehrred to in thin paregreph. AddMonal Aetltorizations. If Grantor fatta to do any of the tMngs rehrred to In the preceding paragraph, Lender may do so for and in the name of Grentor and st Grantor's expense. For such purposes, Grentor hsroby irrevocably authorizes Lander to make, execute, deliver, fib, record and do all other things as may be necessary or desesbb, kt Lender`s sde opinbn, to accomplish the matters referred to in the proosding paragraph. It is understood that nothing set forth heroin shalt requlro Lender to take any such actbns. FULL PERFORMANCE. If florrower pays ell the Indebtedness when due, end otherwise performs all the obligations imposed upon Grantor uncbr fhb Mortgage, Lender shill execute and degwr to Grentor a suftabb satisfaction of this Mortgage and suhabb ststsmente of termination of erly financing itaterrlemt on ide svidsndrtg Lender's security lntsrost in the Rents arxf the Paroonal Property. Grantor will pay, If permktsd by sppttcebb law, any reasonable tsrninatbn he as determined by Lender from time to time. EVENTS OF DEFAULT. At Lender's option, Grantor will be In default under this Mortgage if any of the folbwing happen: Payment Default. Borrower hib to make any payment when dw under the Indebtedness. DefeuR on Other Payrrerrts. Failure of Grantor within the time required by this Mortgage to make any payment for taxes or insuranu, or any other payment Moessary to prevent filing of or to effect discharge of any Ifen. Break Other Promises. Borrower or Grantor txroaks any promise made to Lender or tails to perform promptly et the time and strictly {n the manner provided in this Mortgage or in any agreement related to this Mortgage. False Statements. Any representation or ststemem made or famished to Lender by Borrower or Grantor or on Borrower's or Grantor's behalf under fhb Martgsge or the Related Documents is false or misleading in any materiel respect, ekher now or et the time made or famished. Dahetiw CoNaarelisaHon. This Mortgage or any of the Related Documents ceases to be in fuN force and effect (including feNuro of any collstersl document to cxeate a vdid and perfected security interest a lien) at any tins and for any mason. Death or Inaolwnay. The death of Borrower or Grantor, the Insolvency of Borrower or Grantor, the appointmerx of a receiver for any part of Borrower's or Grantor's property, any assignment for the bsnafk of crodkoro, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower or Grantor. BK 18b9PGfr853 MORTGAGE (Cor>tinuedl Page 4 ~ Takktg of Yte Property. Any creditor or gowmmentsl agency tries m talc any of the Property or any other of Borrower's or Grentv's property in which Lander he s Men. This irtaludes taking of, pamiahing of or buying on Borrower's or Grortmr's aooourtts with Lender. However, M Borrower v Grenmr disptrtes in good faith whether the claim on which the tddrtg of the Property h based is valid or reasonable, and It Borrower or Gronmr gives Lender written notfoe of the cldm and furr>ishe Lender whh monbs or a orrery bond setlehatvy to Lender m satisfy the claim, than this default provision wNl not apply. Sreeeh of Other AB/amerrt. Any breach by Borrower v Grenmr under the terms of any other agreement betwew Borcowsr or Grenmr and Lender that is not remedied witMn arty grace period provided tMrein, including without limhation any egroemsnt cancsrMrq arty irdabadnee or other obMgadon of borrower or Grantor to Lender, whether oxistlng now v bar. Everts AffeaWg Gtarerttor. Any of tM preceding awrrts occurs with respect to arty gwrerttor, endorser, surety, or accommodatbn party of any of the Indebtedness a any guarantor, endorser, surety, or aceommadation party dies v becomes inoompetsrtt, or revokes or dbputas the vslidhy of, v IbblNry under, any Gwramy of the Indebtedness. In the event of a death, Lender, at Its option, may, but shall not be requked m, psrmh the quarsnmr'a estate to assume unconditionally the obligatlons wising under the guerorttY in a marxter satisfactory m Lender, and, in doing so, cure any Event of Default. Imeetrity. Larder in good fehh bslbva itself insecure. Rght to Curo. If any default, otMr than a dstsuh in payment f• cursbb and It Grantor has not been given a notice of a brash of the same provision. of tills Mor~sge within the preceding twelve (12) months, h may ba cured M Grenmr, afar recahring wrftan notice from Lender demanding ctxe of such dsfwh: 111 cures the default within fifteen (151 days; v t2} if the wro require more than fifteen 1151 days, ImmerNeWy initiate steps which Lender deamr in Lender's sda diacretlon m bs sufficisrK m can the defauh and tharoafar continue and compbte dl reasonable and nscessry steps sufficlent m produce compliance as soon a reasonably practical. RIGHTS AND REMEOIE8 ON Dk>FAULT. Upon the occurrsrtcs of sn Event of Defauh end at arty time thareafar, Lender, at Lender's option, may axerdsa any one or more of tM follow(ng righa end romsdies, in addition to any other righa or romediea provided by law: Aaoderaa kdebadnaa. Lender shah haw the right et its option, after giving such notices as required by eppMcebb bw, to declare the srttiro Indsbtednse Immediaaly due end paysbb. UCC RMrta~aa. With respect m all v any part of the Psreonel Property, Lender shall haw all the rgha and remedies of a secured perry under the Uniform Commercial Code. CoMct Rents. Lender shill haw the right, without notba to Borrower or Grantor, to eke posaedon of the Property and aoNeat the Rents, including amourta peat due and unpaid, and apply tM net proceeds, aver end above Lertdsr's costs, agdnst the Irtdebtednasa. In hrtheronoe of this right, Lender may requiro soy tensor v other user of the Property m make peyrrNMS of rant or use fees directly m Lender. If the Rena aro collected by Lender, then Grenmr imwcably euthorizss Lender m endorse imtrumertts received In payment thereof in the Hems of Grenmr and m negotlate the acme and collect the proceeds, Psymertts by anana or other users m Lender in response to Lender's dsmerd shah satbfy the obligatbns for which site paymsna are made, whether or not wY proper grounds for tM demand existed. Lender may exercise Its rights under this subperttgraph either in person, by agent, or through a rocdwr. Appoirt Reeelver. Lender shall haw the right m hew a reedwr appointed m eke possession of di or any part of tM Property, with the power m proact end presrw the Property, to operate the Property procading foreclosure or sob, and m coNect tM Rena from the Property and apply the proaade, over end above the cost of the recehrership, agdrat the Indebtsdnse. The roceiwr may serve without bond If parmitad by law. Candor's right m the appointment of a receiver ahsN exist whether v not the apparent wlua of the Property exceeds the Indebtedness by a subsantial amount. EmpbymeM by Lender shall not disqualify a person from serving e e roceiwr. Judbiei Foreclosta~e. Lender may obafn a judadal decree foracbsing Orentor's Interest in all v any part of the Property. NorgtdcW. SaN..1f permitted by applicable law, Lander may foreclose Grentor's interost in all or In any part of the Personal Propsrry or rite Real Property by nort•ludidel ab. DdlaNnoy Judgntertt. Lender may obtain a Judgment for any deficiency remaining in the Indebtedness due to Lender after sppticatlon of aq emouna received from the exercise of the rights provided In this section. Tarrancy R Suffwenoe. If Grantor remains in posaabn of the Property afar tM Property is soW u provided above or Lender otherwise beoomss entltlsd m poeselon of the Property upon dehuit of Grenmr, Grenmr shNl become a anent st sufhronce of Lender v the purchaser of the Property end ahdi, at Lender's option, either 111 pay a reasonaby rorttd for the use of the Property, or (21 vscaa ttte Property immediately upon the demand of Lender. Outer Remed4a. Lender shell haw dl other rights and remedies provided in this Mortgage or the Note or avallebb et law or in equhy. Sale of rite Property. To the exam permitted by epplicabb law, Borrower end Grenmr hereby walla any and all right to haw the Property marehdfed. in axerolsirq hs righa and romedbs, Lender shall be free m sell all or arty part of the Property together or asparaaly, in one sale v by ssparoa sobs. Lsndsr shell bs entitled m bid et any public asb on ell v any portion of the Property. Notbe of Sala. Larder will give Grenmr ratonabb notice of the time and pace of any public sob of the Persond Property or of the tints after which any private sab v other inanded disposition of rite Personal Property b to bs mails. Unless otherwla required by appMcable taw, rsrwnabla notce sMN mean notice ghren at best an 1101 days before the time of the sale or dispoaitlon. Any sale of the Personal Property may be made in conjunctbn with any sob of the Rsal Property. Hectlon of Remedies. All of Lender's rights and remedies will bs cumulative and may ba exorcised abne or together. An electbn by Lender m choose any one romsdy will not bar Lender from using any other remedy. M Lender decides m spend money v m perform any of Granmr's obligatlons under this Mortgage, after Grenmr'a feiluro to do so, that decision by Lender will not affect Lender's right m declare Grentor In default end to sxercia Lender's remedies. Attomeye' Fla; Expenses. If Lender Institutes any suit or action m enforce any of the arms of this Mortgage, Lender ahdi be enthisd m reoover such sum as the court may adjudge reasonabb as stmrnsys' fee at trial and upon any appeal. Whether or not any court ectlon is inwlved, and to the exam not prohlbfad by law, alt roasonabla expenses Lender incurs that in Lender's opinion ere necessary at any time for the protection of la ktterost or the enforcement of hs rlgha shah become a part of the Indebtedness payable on demand end ahdi bear irtisrost at the Note rats hom the date of the expsnditrue until repdd. Expense covered by this paragraph include, without Nmitatbn, however eubjsct to any Urnits under applbabb bw, Lender's attorrtsys' tee and Lsrtder's bgal expense, whether or not there is a lawauh, including atmmeys' fees and expenses for bankruptcy proceedinga Uncluding efforts to modify or vscaa arty eutontati4 say v Injunction), appeals, and any antlclpsad pastyudgmant coNectlon service, the cat of serchirtg records, obakting thle reports (including forecbwre reports), surveyors' reports, and spprsial fee and title irtsurancs, m the extent permhted by sppMcable law. Grsrttor dso will pay arty court toss, in addition m all other wms provided by law. NOTICES. Unba otherwise provided by spplluble law, any rtotice requirod m be given under this Mortgage shall be given in writing, and shill be sfhctiw when actually ddMred, when actwNy received by tebferxtimile lunlee otMrwise required by lees), when daposhsd whh a natbnaNy recognized overnight courbr, v, it maMed, when deposited in the United Sates mall, ea first das, certified v registered mail postage prepaid, directed m the addrosas shown near the beginning of this Mortgage. All copies of notices of foreclosure hom the holder of any Nan which has privity over thb Mortgage ehaM be Bent m Lender's address, a shown Mar the beglnnirq of this Mortgage. Any person may dwngs his or Mr address for notices under this Mortgage by giving formal writan notice m the other person or peroons, specifying that ttte purpose of the rtotke is m change the person's address. For notice purposes, Grantor agree m keep Lender informed at all times of Granmr's currant address. Urtfeas otherwiw provided by applicable law, it thsro is more than one Grenty, any notice given by Lender m any Grsnty is deemed to be notice given m dl Granmre. h will be Granmr'a responsibility m all the others of the notice from Lender. MISCELLANEOUS PROVISIONS. The foMowirtg miscellaneous providons are a pert of thb Mortgage: ArrtendrnerRa. Whet is written In this Mortgage end in the Related Documents is Granmr'a entiro preemertt with lender ooncerntng the matters covered by this Mortgage. To be effective, any change v amendment to thin Mortgage must ba in writing and must be BK i 869P~4854 MORTQAt3E {Continued) Pege 5 signed by whoever wN1 be bound or obligated by the change or amendment. Caption Headings. Captbn headings in this Mortgage are for convenbncs purposes only end are rot to be used to Interpret or define the provisbna of this Mortgage. JoNrt and Several LIaMNty. All oblgations of Borrower and Grantor under thb Mortgage shall ba joint and sewrel, and all references to Grantor shall mean each and awry Grantor, and eN references to Borrower shall mean each end every Borrower. This means that each Borrower end Grarnor signing bebw is responelbis for all obligations in this Mortgage. No Waiver by Larrdsr. Grantor undaretands Lander wiN not give W erry of Lender's rights under the Mortgps unless Lander does ao In writing. Ths fact that Lender delays or omits to exercbs any right will not mean that Lender has given up that right. If Lander dose agree in writing to give ~ one of Lender's rights, that does not mean Grantor wNl not hew to comply with the other provisbru of this Mortgage. Grantor also understands that if Lender does consent to a rogwst, that does not mean that Grentor will not haw to get Lender's consent again if the situation happens again. Grantor furtMr undarstande that just because Lender consents to one or more of Grantor's regwsts, that does not mean Lander will be required to consent to any of Orerrtor's future requests. Grantor waives presentment, demand for payment, Proust, and notice of dishonor. SavarablNty. If a ootxt finds that srry provision of this Mortgage is net valid or should not be enforced, that fact by itself will not mean that the rest of Wa Mortgage wNl not bs valid or enforced. Therefore, a court wiN enforce the rest of the proviabns of thin Mortgage awn if a provisbn of this Mortgage may be found to bs invalid or unenforceable. Merger. Titers shah be no merger of tM interest or estate created by this Mortgage with any other {merest or salsa in the Property at any time held by or for the benefh of Lender in any capacity, without Ute written consern of Lender. Suoeauw hturests. Tits terms of this Mortgage shah be binding upon Grantor, and upon Grantor's hsiro, personal repreaentatiws, succeasore, and assigns, and shall bs enfortroebb by Lender and its succassaro end sasipns. Tlrrta 4 of the Esaanp. Time is of the essence in the performance of this Mortgage. DERNIrK)NS. Ths folbwing words shell haw the folbwing meanings when used in this Mortgage: Sorrows. The word 'Borrower" means JOAN L GRE5S end CLYDE L SCHAEFFER and includes all co•signero and co-makers signing the Note. Entrirortntarrtal Laars. The words "Environmental Laws" mean any end all stele, federal and local statutes, rogulstbns end ordinances relating to the protection of human health ar the environment, including without I{mitsUon the Comprehensive Environmsnul Response, Compensstbn, and Liability Act of 1980, es amended. 42 U.S.C. Section 9001, st seq. I"CERCLA"l, the Supsrfund Amendments and ReauthorixaUon Act of 1980, Pub. L. No. 99-499 ("SARA'1, tM Hazardow Materials Transportation Act, 49 U.S.C. Section 1801, at seq., the Resource Conaervatbn and Rewvery Act, 42 U.S.C. Section 0901, st seq., or other appNeable state or federal laws, rules, or regulations adopted purownt thereto. Evan of Dehuk. The words "Event of Dafauit" mean any of the events of detauh set forth in this Mortgage in the events of defauh section of dtia Mortgage. Grarnor. The word "Grantor" means JOAN L GR£SS. Guaranty. Tha word "Guaranty" means the guaranty from gwrornor, endorser, surety, or accommodation party to Lander, including without Nmitation a guaranty of all or pert of the Note. Ha:ardow Subatartoas. The words "HezaMous Substances" mean materials that, bawuse of their gwntky, concantratbn or physical, chemical or infsctbus cMrscteristks, may cause or pose a praarn or potential hazard to human hsahh or the srnlronmsnt when improperly used, treated, stored, dbposed of, gsnereted, manufactured, transported or otherwiw handled. Ths words "Hazardous Substances" are used In their wry broadest sense and incltxla wthout IlmhaUon any and all hazardous or toxic substances, ntsteHals or waste as dsflned by or Natsd tinder the Ernironmsnul Laws. The terra "Hazardous• Sttbetertoss" also includes, without Iknitatbn, pstrobtxn and petrobum by-products or any fracdon thersaf and fatiepsto4. ,.,.;,.. brtprovarrietta. The word "Improvements" means all existing and future Improvements, buildings, structures, mobib•homas attixed on the Rsal Property, facilkies, addhions, replacements and other construction on the Real Property. Indsbadneas. TM word "Indabudrteas" mssns ell principal, inurest, and other amounts, costs end expenses payable under the Nots or Related Documers, together with aN renewals ot, sxtertaions of, modifications of, consolidatons of and substitutbns for tM Note or Related Documents end any amounts expended a advanced by Lender to dhcha-ge Grarttor'a obligations or expenses inctrrsd by Lender to enforce Grantor's obligatbns under this Mortgage, together with interest on such amounu as provided in this Mortgage. Lander. The word "Lender" mssns ORRSTOWN BANK, its successors and assigns. The words "successoro or assigns" mean any person or company that acquires any interest in the Note. Mortgepa. The word "Mortgage" means this Mortgage between Grantor end Lender. Note. The word "Note" means the promissory note dated June 14, 2004, In the original principal amouftt of 550,000.00 from Borrower to Lender, together with all renewals of, extenabns of, modifications of, rsflnancinps of, consolidations of, and subatitutbns far the promissory note or agreement. The mettaity date of the Note is Juna 14, 2019. ParwnN Property. The words "Personal Property' mean aN sgtupmsnt, fixtures, and other aniclea of personal property now or hereafter owned by Grantor, end now or hereeft~r attached or affixed to the Real Property; together whh aN accssslons, parts, and additbns to, ell replacements of, and all subsUtutlona ior, any of such property; and together with aN procxeds (Including without Iknfutbn ell insurance proceeds and refunds of premlumsl from any sale or other disposlUon of the Property. Property. The word 'Property" means collectively the Real Property and the Personal Property. Real Property. The words "Real Property' mean the real property, interests and ruts, as further destxlbsd in this Mortgage. Ralaud Doauntatts. The words "Related Documents" mean ail promissory notes, credit agreements, loan agreements, environmental agroemerna, gwrernies, security agreements, mortgagee, deeds of taut, security deeds, collateral mortgagee, and aN other instruments, agreements and documents, whether now or hereafter existing, executed in oonnettion with the Indebtednsas. Rents. The word "Rents" means all present end future rents, revenues, income, Issues, royalties, profits, and other baneika derived from the Property. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISION8 OF TENS MORTGAGE, AND GRANTOR AGREES TO RS TERMS. THNf MORTGAGE IS GIVEN UNDER SEAL AND IT M INTENDED THAT THIS MORTGAGE Ni AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. B~ ~ ss~~~~a55 ' MORTGAGE tContinued) pg. ~ Q,flAHITOR: ..;:::x;:2ds:Y':t::v:y:Y•.'.:;{L. ::~r.:i ~:,.. 'S:Eerar;y}:E:H:~as:r.5h•:L'K::r: ;~:!C`:3;R;:<o2;t::; 2): X:$ '•V''e <~isi?Y.t%~iCH:}Yi::;t;:iBeel! z ned, ~ .rwl~~N~ad ~' Prosanae of: wkn.u , Q~JL . ~ x wltnew CERTIFlCATE OF RESIDENCE I hereby certify, that tM precise addrou of tM mortpapw, ORRSTOWN BA#NI, Mrsin is u folbws: KING STREET OFRCE, 77 FAST KINQ STREET, P O BOX 260, SHIPPENSBU , PA 17267 Attomsy or ye far Mortpapes INDIVIDUAL ACKNOWLEDGMENT COMMONWEALTH,O-_F rPIE.NN/S/Y~LVA~NUI ! COUNTY OF J On this, the / dh day of , 20 ~T _ before ms ,the undereigned Notary Public, personally eppsared JOAN L ORE86, known to me (or sails acto proven! to be the peraon whose name is subaeribsd to the within inetrurnsnt, and acknowledged that he or she executed the same for Nye purposes therein contsined. In wMneas whereof, I hereunto set my hsrtd end offklal sect. ~dL11111DER ~~~~, Notary Public in and for the tats of "~ ~a~ONS.slo~~n~~s oC0 wu ree ~r,ry, vw. as~m0o1 . ^.rr w,ww rwwn4 rw ~~. IODa M ~ Ilrrvd. . M OnGntwME1.R fR77q M.1! BK ~ 869PG4856 ALL that certain tract of land with improvements situated thereon, in Southampton Township, Cumberland County, Pennsylvania, more fully bounded and described as follows; BEGINNING at a set railroad spike in the center line of Township Route 323, Broad Street, said point being at the Northwest corner of Lot 1 of the Subdivision listed below; thence along Lot 1 South o degrees 12 minutes 52 West 80.1b feet to a set iron pin located at corner of Lot 1 and lands now or formerly of Frank E. Stouffer; thence continuing along lands formerly of Frank E. Stouffer North 89 degrees 47 minutes 08 seconds West 83.39 feet to a point in the center of a creek known as Burd Run; thence through the centerline of Burd Run North 24 degrees 12 minutes 19 seconds West 27.53 feet to a point in the center of Burd Run; thence continuing by the centerline of Burd RunNorth 03 degrees 20 minutes 02 seconds West 55.20 feet to a Parker-Kahlon nail in the centerline of Township Route 323; thence along the centerline of said roadway South 89 degrees 47 minutes 08 seconds East 9$.29 feet to a set railroad spike, the point and place of BEGINNING CONTAINING 0.173 acre, more or less. BEING all of Lot 2 of Subdivision plan by Steven P. Wolfe, R.S., for Jay L. Pyne dated July 17,1992 and recorded in Cumberland County Plan Book 65, Page 17. BEING the same property which Jay L. Pyre and Dorothy J. Pyne, his wife, by deed dated October 26, 1993, and recorded in Cumberland County Recorder of Deeds Office Deed Book Volume 36-Y Page 466 granted and conveyed to Ailie M. Proctor, single woman. Schedule "A" ,.. 'a J., 0 ~, ~ ._ . , Recorder o f Deeds 61~ ~ 86`~~u`r857 7Joy J 7.sa dQCa3 `j~(C~ 7 7/79 ORRSTOWNBANK A Tradition of Excellence C~ o0pl~ May 17, 2006 Joan L. Gress 25 Broad Street Shippensburg, Pa. 17257 Return Receipt Requested and Regular U. S. Mail ACT 91 NOTICE TAKE ACTION TO SAVE YOUR HOME FROM FQRECLOSURE This is an official notice that the mortgage on your home is in default, and the lender intends to foreclose. Specific information about the nature of the default is provided in the attached pages. The HOMEOWNER'S EMERGENCY MORTAGE ASSISTANCE PROGRAM (HEMAP) may be able to help to save vour home. This Notice explains how the program 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 Agencv. The name, address and phone number of Consumer Credit Counseling Agencies serving vour County are listed at the end of this Notice. If you have any questions, you may call the Pennsylvania Housing Finance Agencv toll free at 1-800-342-2397. (Persons with impaired hearing can call (717) 780-1869). This Notice contains important legal information. If you have any questions, representatives at the Consumer Credit Counseling Agency may be able to help explain it. You may also want to contact an attorney in your area. The local bar association may be able to help you find a lawyer. PO Box 250 •Shippensburg, PA 17257 • (717) 532-6114 • (717) 532-4143 Fax • www.orrstown.com FXHTRTT ~~Tl~~ LA NOTIFICACION EN ADJUNTO ES DE SUMA IMPORTANCIA, PLIES AFECTA SU DERECHO A CONTINUAR VIVIENDO EN SU CASA. SI NO COMPRENDE EL CONTENIDO DE ESTA NOTIFICACION OBTENGA UNA TRADUCCION INMEDITAMENTE LLAMANDO ESTA AGENCIA (PENNSYLVANIA HOUSING FINANCE AGENCY) SIN CARGOS AL NUMERO MENCIONADO ARRIBA. PUEDES SER ELEGIBLE PARA UN PRESTAMO POR EL PROGRAMA LLAMADO "HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM" EL COAL PUEDE SALVAR SU CASA DE LA PERDIDA DEL DERECHO A REDIMIR SU HIPOTECA. HOMEOWNER'S NAME(S) Joan L. Gress PROPERTY ADDRESS: 25 Broad Street Shippensburg, Pa. 17257 LOAN ACCT. NO.: 130031859 ORIGINAL LENDER: ORRSTOWN BANK CURRENT LENDER/SERVICER:ORRSTOWN BANK HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM YOU MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE WHICH CAN SAVE YOUR HOME FROM FORECLOSURE AND HELP YOU MAKE FUTURE MORTGAGE PAYMENTS IF YOU COMPLY WITH THE PROVISIONS OF THE HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE ACT OF 1983 (THE "ACT"), YOU MAY BE ELIGIBLE FOR EMERGENCY MORTGAGE ASSISTANCE: • IF YOUR DEFAULT HAS BEEN CAUSED BY CIRCUMSTANCES BEYOND YOUR CONTROL, • IF YOU HAVE A REASONABLE PROSPECT OF BEING ABLE TO PAY YOUR MORTGAGE PAYMENTS, AND • IF YOU MEET OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE PENNSYLVANIA HOUSING FINANCE AGENCY. TEMPORARY STAY OF FORECLOSURE -Under the Act, you are entitled to a temporary stay of foreclosure on your mortgage for thirty (30) days from the date of this Notice. During that time you must arrange and attend a "face-to-face" meeting with one of the consumer credit counseling agencies listed at the end of this Notice. THIS MEETING MUST OCCUR WITHIN THE NEXT (30) DAYS. IF YOU DO NOT APPLY FOR EMERGENCY MORTGAGE ASSISTANCE YOU MUST BRING YOUR MORTGAGE UP TO DATE. THE PART OF THIS NOTICE CALLED "HOW TO CURE YOUR MORTGAGE DEFAULT", EXPLAINS HOW TO BRING YOUR MORTGAGE UP TO DATE. CONSUMER CREDIT COUNSELING AGENCIES - If you meet with one of the consumer credit counseling agencies listed at the end of this notice, the lender may NOT take action against you for thirty (30) days after the date of this meeting. The names, addresses and telephone numbers of designated consumer credit counseling agencies for the county in which the property is located are set forth at the end of this Notice. It is only necessary to schedule one face-to-face meeting. Advise your lender immediately of your intentions. APPLICATION FOR MORTGAGE ASSISTANCE -Your mortgage is in default for the reasons set forth later in this Notice (see following pages for specific information about the nature of your default.) If you have tried and are unable to resolve this problem with the lender, you have the right to apply for financial assistance from the Homeowner's Emergency Mortgage Assistance Program. To do so, you must fill out, sign and file a completed Homeowner's Emergency Assistance Program Application with one of the designated consumer credit counseling agencies listed at the end of this Notice. Only consumer credit counseling agencies have applications for the program and they will assist you in submitting a complete application to the Pennsylvania Housing Finance Agency. Your application MUST be filed or postmarked within thirty (30) days of your face-to-face meeting. YOU MUST FILE YOUR APPLICATION PROMPTLY. IF YOU FAIL TO DO SO OR IF YOU DO NOT FOLLOW THE OTHER TIME PERIODS SET FORTH IN THIS LETTER, FORECLOSURE MAY PROCEED AGAINST YOUR HOME IMMEDIATELY AND YOUR APPLICATION FOR MORTGAGE ASSISTANCE WILL BE DENIED. AGENCY ACTION -Available funds for emergency mortgage assistance are very limited. They will be disbursed by the Agency under the eligibility criteria established by the Act. The Pennsylvania Housing Finance Agency has sixty (60) days to make a decision after it receives your application. During that time, no foreclosure proceedings will be pursued against you if you have met the time requirements set forth above. You will be notified directly by the Pennsylvania Housing Finance Agency of its decision on your application. NOTE: IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A 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 MORTGAGE DEFAULT (Bring it up to date). NATURE OF THE DEFAULT -The MORTGAGE debt held by the above lender on your property located at: 25 Broad Street, Shippensburg, Pa. 17257 IS SERIOUSLY IN DEFAULT because YOU HAVE NOT MADE MONTHLY MORTGAGE PAYMENTS for the following months and the following amounts are now past due: March 14th--$ 449.54, April 14th--$ 449.54 and May 14th-- $449.54. Other charges (explain/itemize): LATE CHARGES--$ 7.50 TOTAL AMOUNT PAST DUE: 1 356.12 HOW TO CURE THE DEFAULT -You may cure the default within THIRTY (30) DAYS of the date of this $ 1,356.12. 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: ORRSTOWN BANK ATTN: BETSY SMITH P.O. BOX 250 77 EAST KING STREET SHIPPENSBURG, PA 17257 IF YOU DO NOT CURE THE DEFAULT - If you do not cure the default within THIRTY (30) DAYS of the date of this Notice, the lender intends to exercise 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 Your mortgage property. IF THE MORTGAGE IS FORECLOSED UPON -The mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If the lender refers your case to its attomeys, 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 attomey'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 5 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: Orrstown Bank Address: P.O. Box 250, 77 East King Street Ship pensburg, PA 17257 Phone Number: (717) 530-2661 _ Fax Number: (717) 532-4099 Contact Person: Bets y J. Smith EFFECT OF SHERIFF'S SALE -You should realize that a Sheriff's 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 Sheriff's 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 NOT sell or transfer your home to a buyer or transferee who will assume the mortgage debt, provided that all the outstanding payments, charges and attorney's fees and costs are paid prior to or at the sale and that the other requirements of the mortgage are satisfied: YOU MAY ALSO HAVE THE RIGHT: • TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT OR TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT. • TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF. • TO HAVE THOE MORTGAGE RESTORED TO THE SAME POSITION AS IF NO DEFAULT HAD OCCURRED, IF YOU CURE THE DEFAULT. (HOWEVER, YOU DO NOT HAVE THIS RIGHT TO CURE YOUR DEFAULT MORE THAN THREE TIMES IN ANY CALENDAR YEAR.) • TO ASSERT THE NONEXISTENCE OF A DEFAULT IN ANY FORECLOSURE PROCEEDING OR ANY OTHER LAWSUIT INSTITUTED UNDER THE MORTGAGE DOCUMENTS. • TO ASSERT ANY OTHER DEFENCE YOU BELIEVE YOU MAY HAVE TO SUCH ACTION BY THE LENDER. • TO SEEK PROTECTION UNDER THE FEDERAL BANKRUPTCY LAW. Sincerely, ., ~' g . BETSY J. SMITH, COLLECTION DEPT. CONSUMER CREDIT COUNSELING AGENCIES SERVING YOUR COUNTY.0 CCCS of Western Pennsylvania, Inc. 2000 Linglestown Road Harrisburg, PA 17102 (717) 541-1757 Urban League of Metropolitan Harrisburg North 6th Street Harrisburg, PA 17101 (717) 234-5925 Fax (717) 234-9459 Community Action Comm 1514 Derry Street Harrisburg, PA 17104 (717) 232-9757 Fax (717) 234-2227 of the Capital Region Bedford-Fulton Housing Services RD #1, Box 384 Everett, PA 15537 (814) 623-9129 Fax (814) 623-7187 Financial Services Unlimited 31 West 3rd Street Waynesboro, PA 17268 (717) 762-3285 Financial Counseling Services of Franklin 31 West 3rd Street Waynesboro, PA 17268 (717) 762-3285 Adams County Housing Authority 139-143 Carlisle Street Gettysburg, PA 17325 (717) 334-1518 Fax (717) 334-8326 YWCA of Carlisle 301 G Street Carlisle, PA 17013 (717) 243-3818 Fax (717) 731-9589 American Red Cross -Hanover Chapter 529 Carlisle Street Hanover, PA 17331 (717) 637-3768 Fax (717) 637-3294 fT'I p Certified Fee ~ Retum Reciept Fee (Endorsement Required) O pied Delivery Fee ~ (Endorsement Required) ['~ p Total Postage & Fees ~ ~ <j! mod' 1 p rR To , C7 ------------ --- -- ---- ~`.. SereeL~--- No.; or PO Box No. ~~J-`j:"j °------ ------------------------------- Cly State, Z/P+ / :~i ~~ ..un_ ~ i c POSTAL SERVICE CERTIFIGA ~ t yr mr^^~^~--- MAY BE USED FOR DOMESTIC AND INTERNATIONAL. MAIL, DOES NU i .,r.,.,. nr,c FnR INSURANCE-POSTMP'STER Received From: ~1 .~~I ~~ ~ ~ . X 25a ~"~ Shippeyburg. PA 1725. ` One piece of ordinary mil ~~~~ to: V1 J _ ~ _ PS Fom- 3817, January 2001 ^ Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. ^ Print your name and address on the reverse so that we cart return the card to you. ^ Attach ifiis card to the back of the mailpiece, or on the front 'rf space permits. 1. Article Addressed to: g~, A X u v ° ^ untrt~ps 0 4 ~~ J v ~D ~ ;* ~ ~ ~ , r ~~ ~~ ~ v~p~ m .,, , ~. .,~ N N O (JI O Q -.a ~ ^ Agent Addressee 8. R~eived by (Prirrted Name) ~ C. Date of Delivery ~~ ~rar'~SS D. Is delivery address different from item 17 ^ Yes ff YES, enter delivery address below: ^ No 3. S-ervice Type YL Certified Mail ^ Expr+ess Mall ^ Registered ^ Return Receipt for Merchandise ^ Insured Mall ~ C.O.D. 4. Restricted Delivery? (Extra Fee) ^ Yes 2. Artide"umber 7004 0750 0003 947 7179 (ra~re~ tram service fabe~ PS Form 3811, February 2004 Domestic Return Receipt yo2sss-oz-M-~sao = EXHIBIT "E" ~y^' V r (~ '~s. N ~, a ~~ 1~ C'; ` ~... i' ~`~ r.,~ ~_~, -ri.,, l { j ~' ~.~. 4~, ~~ °i ~~ _ t ~~ 1i kl'_.. er_ .3J SHERIFF'S RETURN - REGULAR CASE NO: 2007-04744 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ORRSTOWN BANK VS CRESS JOAN L JASON VIORAL Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE was served upon CRESS JOAN L the DEFENDANT at 2027:00 HOURS, on the 15th day of August 2007 at 25 BROAD STREET SHIPPENSBURG, PA 17257 by handing to JOAN CRESS a true and attested copy of COMPLAINT - MORT FORE together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 17.28 Postage .58 Surcharge 10.00 00 ~laa~0? ~ 4 Sworn and Subscibed to before me this day of , So Answers: R. Thomas Kline 08/20/2007 OBRIEN BARIC SCHERER By . '~~ ep ty Sheriff A.D. ORRSTOWN BANK, 77 EAST KING STREET SHIPPENSBURG, PA 17257 Plaintiff v. JOAN L. GRESS 25 BROAD STREET SHIPPENSBURG, PA 17257 Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA N0.2007- 4744 CIVIL TERM MORTGAGE FORECLOSURE PRAECIPE TO ENTER DEFAULT JUDGMENT PURSUANT TO Pa.R.C.P.1037 TO THE PROTHONOTARY: Please enter judgment in favor of the Plaintiff, Orrstown Bank and against the Defendant, Joan L. Gress, for failure to file an answer to the Complaint of Plaintiff. A true and correct copy of the Notice of Default is appended hereto as Exhibit "A." A true and correct copy of the Certificate of Mailing for the Notice of Default is appended hereto as Exhibit "B." I certify that the Notice of Default was given in accordance with Pa.R.C.P. 237.1. Plaintiff requests judgment in the amount of $54,325.20 as set forth in the Complaint plus interest in the amount of $488.95 to September 18, 2007 with a per diem thereafter of $8.89 for a total of $54,814.15. Respectfully submitted, ' EN, B & C R David A. Baric, Esquire I.D. # 44853 19 West South Street Carlisle, Pennsylvania 17013 (717)249-6873 ~. ~.~ ?~ ~ i ~.t ~~ iy: %. '~ ORRSTOWN BANK, IN THE COURT OF COMMON PLEAS OF 77 EAST KING STREET CUMBERLAND COUNTY, PENNSYLVANIA SHIPPENSBURG, PA 17257 : Plaintiff v. N0.2~7- 4744 CNIL TERM I! JOAN L. GRESS jj 25 BROAD STREET MORTGAGE FORECLOSURE ~I SHIPPENSBURG, PA 17257 Defendants TO: Joan L. Gress 25 Broad Street Shippensburg, Pennsylvania 17257 Date of Notice: September 5, 2007 IMPORTANT NOTICE YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLESS YOU ACT WITHIN TEN DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS NOTICE TO A LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE FOLLOWING OFFICE TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Baz Association 32 South Bedford Street Carlisle, Pennsylvania 17013 Telephone: (717) 249-316b O' N, BARIC D !. David A. Baric, Esquire 19 West South Street Carlisle, PA 17013 (717)249-6873 EXHIBIT "A" 1 ,` i :~ ~.. i '~~,..~~ff -+ us. F~OSTAL SERVICE CERTIFICATE OF MIULN~K3 ~; - `l MAYlE i{liED FOR OOA~'TIC AND MtiEPlLATIONAL MAR. OO~S~IOR--- -..,, t ,cyst . from: ^ ~, • ~ « : , •, o ' r ~ j if i .t ~~ ~ ~ L ~~~ ~, L. ass "~:; ;~::=~ - .... ~~ ~ : . 5 ~ s~~ ...{~ ,. t. Abu 115? - . _~,~: .. ~ ~. l ~ .: PS Form 3817, January 2001 _ _ _. __ . _ _ _..._..__ _ . _J _._. _ r r ," ' It 7 h!` `~ ~ t _ T ~ . t . ..y'~ y .!~. .f 'Y. .,r,~ 14w~.i/~:~, C'bY°xi '..~"'~n+.pt p,. _L I •~ ! ~ ~}".'yl .r ~1,'*SiasFY. f .~-__~ R'^! ~S{• fn+ J "ti ..~' ~ ,p' ._'-A 1 } ._..uhy-5~•. .. C ~. ^ •' .... : , EXHIBIT "B" ~1 CERTIFIC//ATE OF SERVICE I hereby certify that on Septemberl~, 2007, I, David A. Baric, Esquire, of O'Brien, Baric & Scherer did serve a copy of the Praecipe To Enter Default Judgment Pursuant To Pa.R.C.P. 1037, by first class U.S. mail, postage prepaid, to the party listed below, as follows: Joan L. Gress 25 Broad Street Shippensburg, Pennsylvania 17257 David A. Baric, Esquire ~: t/> ~ :, ~ ~ '. ~ ~ ~ ~ G N ~.. ~ ~~"' ~ t 4 -.. ORRSTOWN BANK, IN THE COURT OF COMMON PLEAS OF 77 EAST KING STREET CUMBERLAND COUNTY, PENNSYLVANIA SHIPPENSBURG, PA 17257 Plaintiff v. N0.2007- 4744 CIVIL TERM JOAN L. GRESS 25 BROAD STREET MORTGAGE FORECLOSURE SHIPPENSBURG, PA 17257 Defendants NOTICE OF JUDGMENT PURSUANT TO Pa.R.C.P. 236 TO: Joan L. Gress 25 Broad Street Shippensburg, Pennsylvania 17257 Notice is hereby given to you of entry of a judgment against you in the above matter. Prothonotary ~,e.,~ Date: 9 ~~ o ~ ORRSTOWN BANK, 77 EAST KING STREET SHIPPENSBURG, PA 17257 Plaintiff v. JOAN L. GRESS 25 BROAD STREET SHIPPENSBURG, PA 17257 Defendants ~ THE COURT OF CO ' CUMBERLAND CO MMON PLEAS pF DTI', PENNSYLVANIA •~ N0.2007- 4744 CIVIL TERM MORTGAGE FORECLOSURE PRAECIPE TO VACATE TO THE PROTHONOTARY: Please vacate the judgment entered ' jn the above-captioned matter on Se t without prejudice. p ember 18, 2007 Respectfully submitted, EN, $ARIC SCHERE G~~-- . David A. Banc, Esquire y I.D. 44853 19 West South Street Carlisle, Pennsylvania 17013 (717) 249-6873 dab, d~Norrstown ban Wgress/vaca te.pra CERTIFICATE OF SERVICE I hereby certify that on November 29, 2007, I, David A. Baric, Es uire of O' q Brien, Banc & Scherer, did serve a copy of the Praecipe To Vacate, by first class U.S. mail o p stage prepaid, to the party listed below, as follows: Joan L. Gress 25 Broad Street Shippensburg, Pennsylvania 17257 I ~--, David A. Baric, Esquire ~..~ ~~ r=? ~_~3 ~ ~ ~~ o ~ ~..,.~ :.~ ~~ G ~ -_ ~ r~. r ' ~ ~+~ (0 W / ~